AMMB Holdings Bhd’s second-quarter net profit in the financial quarter ended Sept 30, 2022 (2Q22), grew by 35.62% to RM435.4 million from RM321.03 million in the same quarter in 2021.
Revenue in the same period was slightly higher at RM1.18 billion compared to RM1.12 billion in 2Q21.
Earnings per share rose to 13.15 sen from 9.69 sen in the comparative quarter.
Over the six months to Sept 30, 2022, net profit was up 20.7% to RM854.6 million from RM707.64 million before, while revenue fell marginally to RM2.35 billion from RM2.36 billion in first half of 2022 (1H22).
The group has proposed an interim dividend of six sen per share, which represents a dividend payout of 23%.
“Our top-line and bottom-line results are a clear reflection of our efforts to strengthen market share while managing our asset quality. Despite headwinds, we have been able to register strong results due to our solid fundamentals,” AmBank Group CEO Datuk Sulaiman Mohd Tahir (picture) said in a separate statement.
The group said it remains committed in growing revenue, rebuilding capital and shoring up liquidity levels while closely monitoring asset quality and exerting cost discipline.
“Despite near-term challenges, the group remains upbeat on delivering strong financial performance throughout financial year 2023 (FY23) as it benefits from factors such as the Overnight Policy Rate (OPR) uptrend, lower provisions and improving asset quality which are all in line with the steady recovery of the local economy,” it said.
Nevertheless, it said the group remains focused on its Focus 8 execution to deliver more integrated value propositions and create sustainable long-term values for all its shareholders and stakeholders.
“The group’s key focus areas in FY23 include accelerating its digital transformation, forming more strategic partnerships as well as embedding environmental, social and governance (ESG) considerations into all its strategies, businesses and operations,” it added.
According to AmBank, net interest income for the six months period was up 10.4% year-on-year, raising net interest margin to 2.17%.
The group recorded a lower impairment charge of RM266.9 million for the period, which included a RM116 million impairment of the Kurnia brand, agent relationship and other AmGeneral Insurance Bhd assets, compared to RM377.1 million in the previous year.
Non-interest income however fell 24.5% year-on-year due to the disposal of AmGeneral Insurance and lower fee income from investment banking and wealth management.
During the period, the group recorded a one-time disposal loss of RM49.7 million after deduction of net assets disposed including goodwill, impairment of AmGeneral Insurance intangibles and transaction expenses.
The group said it received RM286.9 million in cash which improved common equity Tier-1 by 0.25% and also retained a 30% equity interest in the combined businesses of AmGeneral Insurance and Liberty Mutual Insurance Bhd valued at RM958.2 million.
The group reported diversified growth across its business segments, represented by a 3.6% increase in gross loans and financing to RM124.4 billion.
Customer deposits stood at RM121 billion with a 2.1% increase in time deposits, while current account savings account (Casa) fell 7.6% to RM39.8 billion, owing to the reduction in wholesale banking.
Consequently, Casa mix was lower at 32.9% while liquidity coverage ratio stood at 142.7% as at end-September 2022.
Financial holding company common equity Tier-1 (FHC CET1) stood at 12.57% and total capital ratio was 15.79%.
Excluding transitional arrangement, the FHC CET1 ratio was 12.17%, while the total capital ratio was 15.63%. — TMR / pic MUHD AMIN NAHARUL