AMMB profit down on higher impairments 

By MARK RAO / Pic By TMR File

AMMB Holdings Bhd’s net profit dropped 30.1% year-on-year (YoY) to RM218.98 million for its third quarter ended Dec 31 last year, as higher impairments hit the bank’s retail, corporate and commercial banking segments.
Discounting the impairment losses, operating profit for Malaysia’s sixth largest lender would be 14% higher at RM382.66 million in line as revenues rose 9.1% to RM2.16 billion, boosted by the stronger net interest income.
For the nine-month period, net profit was down by 11.1% YoY at RM878.72 million while revenue rose 3.6% to RM6.36 billion.
Total income rose 5.4% to RM2.91 billion due to the 8.8% growth in net interest income and a stable net interest margin ratio of 1.98%. But operating expenses increased 7.3% on retail operating losses and investment costs.
Net interest income was supported by customer lending and interest on fixed income securities.
Gross loans and financing rose 4.1% YoY to RM94.7 billion, helped by the mortgages and small and medium enterprises segments. Gross impaired loans ratio also improved to 1.77%.