by S BIRRUNTHA / pic by MUHD AMIN NAHARUL

AMMB Holdings Bhd’s (AmBank Group) net profit increased 5.9% to RM386.60 million in the first quarter ended June 30, 2021 (1Q22) from RM365.16 million a year earlier.

However, quarterly revenue fell 5.3% to RM2.09 billion from RM2.21 billion a year ago, according to the group’s exchange filing on Bursa Malaysia today.

The group noted that its fund-based income from interest bearing assets decreased mainly from interest on fixed income securities, while non-interest income also decreased compared to last year.

Interest income from securities decreased mainly from trading portfolio and funding costs decreased attributable to lower interest expense on deposits from customers and securities sold under repurchase agreements.

Meanwhile, the group registered an earnings per share (EPS) of 11.86 sen for the quarter from 12.14 sen previously.

“Total income grew 13.3% to RM1.23 billion, driven by higher loans growth and net interest margin (NIM). 

“Excluding the net modification loss, adjusted income increased to RM1,205.2 million, up 4.8% year-on-year (YoY),” it said in a statement accompanying its financial results.

AmBank Group CEO Datuk Sulaiman Mohd Tahir said Malaysia’s road to economic recovery continues to be bumpy with the recent resurgence in Covid-19 infections and the reimposition of movement restrictions impacting many businesses.

He added that amidst these challenging circumstances, the group was able to register a solid overall performance. 

“We delivered a 34.2% growth in profit before provision (PBP) to RM743.3 million and a 5.9% growth in net profit after tax and minority interests (PATMI) YoY to RM386.6 million on the back of RM1,237.9 million in revenue.

“At the same time, we continued to exert cost discipline demonstrated by AmBank’s improved cost-to-income (CTI) ratio of 40.0%. Indeed, our long-term transformation efforts, from our Top 4 strategy and now continuing into our Focus 8 strategy, has placed the group on a more formidable footing to face the challenging operating landscape,” he noted.

Moving forward, Sulaiman said AmBank Group will continue to place customer needs at the forefront while spearheading new paradigm shifts in an increasingly dynamic and digital banking environment, while at the same time observing good cost discipline.

He said the group has been clear about the importance of continually reviewing all aspects of its businesses to ensure alignment with the group’s strategic aspirations.

“While we have commenced FY22 with an encouraging start, we remain cautious of Malaysia’s economic outlook for the remainder of the year as we do our best to anticipate the impact of the full Movement Control Order (MCO) and the recently announced six-month loan moratorium. 

“With the continued support of our customers, shareholders and stakeholders, we are confident in our ability to remain resilient, while delivering value for all,” he noted.