For the nine months ended Dec 31, 2013, its earnings rose 9% to RM1.329bil from RM1.219bil in the previous corresponding period. Its revenue rose 13.4% to RM7.215bil from RM6.358bil.
KUALA LUMPUR: AMMB Holdings Bhd
posted a net profit of RM352.62mil in the second quarter ended Sept 30, 2016 compared with RM382.5mil in the same period a year ago, mainly due to lower net interest income.
Its pre-tax profit for the quarter fell to RM472.15mil against RM500.97mil a year ago.
“The reduction in profit before taxation for current quarter ended 30 September 2016 was mainly due to lower net interest income and net income from insurance business by RM19mil and RM58mil respectively.
“Lower recoveries of other receivables and writeback of provision for commitments and contingencies by RM6.9mil and RM18.5mil also contributed to the reduction in profit before taxation,” AMMB said in the notes accompanying its results.
Its revenue was relatively flat at RM2.099bil in the quarter to Sept 30 compared with from RM2.088bil in the same period last year. AMMB has proposed a dividend of five sen per share.
In the first six months to Sept 30, AMMB’s net profit fell 6.5% to RM675.62mil from RM722.02mil a year ago. Its earnings per share for the quarter fell to 22.47 sen against 24.03 sen previously.
Revenue for the period fell marginally to RM4.16bil from RM4.19bil.
The group said the reduction was primarily due to higher other operating expenses and decrease in net interest income and Islamic banking business by RM73.2mil, RM89.7mil and RM8.5mil respectively.
This was mitigated by writeback on impairment on loans, advances and financing of RM73.2mil for first half of FY17 compared with RM52.9mil in first half of 2016 and higher other operating income, income from insurance business, share in results of associates and joint ventures and recoveries (other receivables) by RM77.2mil, RM16.1mil, RM11.6mil and RM11.8mil respectively.
The banking group said gross loans, advances and financing decreased marginally to RM87.3bil in 1HFY17 compared with RM87.9bil a year ago, due to decrease in term loans, hire-purchase financing and revolving credit balance increases in mortgages, overdrafts and trade facilities.
As of Sept 30, the group’s total assets stood at RM124.4bil. The total capital ratio (before deducting proposed dividends) from the aggregation of the capital positions and risk weighted assets of the regulated banking subsidiaries stood at 16.699%.
“Our second quarter PATMI (profit after tax and minority interest) growth of 9.2% is clearly a result of ongoing efforts within our transformation program me. These results were
underpinned by stronger trading income and prudent expense management.
“Clearly, our Top 4 strategy is impacting our results positively even in the face of moderating growth affecting the market,” group CEO Datuk Sulaiman Mohd Tahir said in a separate statement.
Sulaiman noted that a key highlight of this half-year results was the further strengthening of the group’s balance sheet with improved gross impaired loan ratio and higher capital ratios.
“Our balance sheet remains sound and we have sustained our asset quality despite macroeconomic headwinds. More significantly, our indicative Basel III financial holding company common equity tier 1 ratio has increased to 11.2% with room for capital optimisation,” he said.
“We are constantly reviewing our capital structure to ensure it is efficient and optimised to support our growth agenda. We are looking to progressively reduce the proportion of our risk weighted assets to total assets with a focus on returns in order to improve capital efficiency,” he said.
With the new MFRS 9 requirements kicking in January 2018, it has initiated an implementation programme and are in the midst of conducting an impact assessment.
“The AmBank Group is well-positioned to face the current challenging operating environment given our commitment to risk-based pricing and underwriting strategies in tandem with our focus on balancing loan growth with asset quality and margins,” Sulaiman said
“With our commitment to invest in key segments and the ongoing executionof our Top 4 strategy, we are gaining momentum in our quest to achieve our FY2020 targets,” he added.
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