KUALA LUMPUR: AMMB Holdings Bhd
(AmBank) logged an improved performance in the first half of its 2024 financial year (FY24) as it navigated a challenging external environment in the second quarter of 2023.
"The group also stands at a position of strength with a much-improved capital position, which led to an upgrade in the group’s credit rating to AA2 by RAM," said group CEO Datuk Sulaiman Mohd Tahir in a statement.
He added that the group is optimistic the Malaysian economy will continue to be solid in the second half of FY24, underpinned by domestic demand despite the current volatile global financial markets and continued geopolitical tensions.
In 2QFY24, AmBank posted a net profit of RM469.78mil, up from RM426.84mil in the same quarter last year.
The group's basic earnings per share rose to 14.2 sen from 12.89 sen in the comparative quarter.
Revenue was slightly lower at RM1.12bil from RM1.18bil in 2QFY23.
In line with the performance, the group declared an interim dividend of six sen per share, which translates to a dividend payout ratio of 23% for 1HFY24.
In the first half of FY24, AmBank registered a net profit of RM848.15mil, up from RM837.23mil in 1HFY23 while revenue was RM2.33bil, which was comparable to revenue in the year-ago period.
Excluding the RM51.1mil gain from the completion of the AmGeneral Holdings Bhd disposal to Liberty Insurance Bhd, continuing operations reported a 3.4% year-on-year (y-o-y) growth in total income to RM2.27bil, driven by a 36.2% increase in non-interest income (NoII), partially offset by a 5.2% reduction in net interest income (NII)
According to AmBank, its NII in 1HFY24 fell 7.4% on the back of net interest margin (NIM) compression during the period.
Meanwhile, NOII grew 23.7% from higher fees, trading gains and investment income.
"The stronger NoII performance was contributed by group treasury and markets (GTM) in wholesale banking, higher fee income from business banking, investment banking and asset management, as well as improved income from life and general Insurance," it said.
Overall expenses decreased 4.5% y-o-y to RM1bil for a lower cost-to-income (CTI) ratio of 43%, as compared to 45% in 1HFY23. The CTI for continuing operations was 44%.
Meanwhile, the group's total gross loans and financing was flat at RM130.8bil year-to-date, with growth primarily from retail banking and business banking.
Total customer deposits grew 3.8% year-to-date to RM135.3bil despite deposit competition.
Time deposits increased 12.6% to RM91.8bil, partially offset by a drop in current account, savings account (Casa) balances to RM43.5bil.
