Jamie Ling, the CEO of AMMB Holdings Bhd (AmBank), stated that the group has implemented additional cautious measures to enhance its loan loss coverage (LLC) levels, particularly anticipating the conclusion of various pandemic-related loan repayment schemes.
“As we are nearing the conclusion of our FOCUS 8 strategy’s final year, achieving a return on equity of 10% and continuously bolstering the group’s capital ratio positions us strongly for the future,” Ling commented. He assumed the role of group CEO on November 23, 2023.
In conjunction with the release of the group’s latest quarterly results, Ling mentioned that it is progressing towards resuming its historical dividend payout pattern after taking measures to elevate the group’s LLC to 100% for the individual retail segment as a precautionary measure and further fortifying capital ratios.
In the third quarter of the financial year 2024, AmBank’s performance was uplifted by a one-off tax credit of RM537.6 million. Overall, the one-off items for the quarter contributed a net benefit of RM135.1 million to profit after tax and minority interest.
The group reported a net profit of RM543.41 million for the quarter, an increase from RM444.21 million in the third quarter of the financial year 2023, translating to earnings per share of 16.42 sen compared to 13.42 sen.
Revenue amounted to RM1.15 billion in the third quarter of the financial year 2024, down from RM1.22 billion in the corresponding quarter of the previous year.
For the nine-month period, the group’s net profit stood at RM1.39 billion, compared to RM1.28 billion in the same period of the previous financial year, while revenue was recorded at RM3.48 billion, down from RM3.55 billion in the previous corresponding period.
AmBank noted that while total income for the period slightly decreased to RM3.48 billion, income from its continuing operations remained largely unchanged at RM3.43 billion.
The net interest margin in the nine months of the financial year 2024 decreased to 1.79% from 2.16% in the previous period, primarily due to the rise in funding costs as deposits repriced upwards following increases in the overnight policy rate.
Consequently, net interest income (NII) for the period declined by 8.7% to RM2.48 billion, partially offset by robust growth of 19.2% in non-interest income (NoII) to RM995.8 million.
AmBank stated that gross loans and financing experienced marginal year-to-date growth to RM131.3 billion from RM130.2 billion in the financial year 2023, representing a 4% year-on-year increase.
Year-to-date, customer deposits expanded by 4.3% to RM135.9 billion, with time deposits witnessing a growth of 10.6% to RM90.1 billion, albeit accompanied by a decrease in current account and savings account (Casa).
The Casa mix decreased to 33.7% from 37.4% in the financial year 2023.
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