AmBank overall income for its first half 2022 came in 5% higher registering RM2,358.8 million, driven by higher Net Interest Income from both loans growth and Net Interest Margin expansion, while net profits after tax and minority interests increased 17.5% to RM707.6 million
Commenting on the latest financial report, Group Chief Executive Officer, Dato’ Sulaiman Mohd Tahir said “Amidst what is still a very challenging and volatile economic environment, AmBank Group was able to make good progress with PBP growing by 14% to RM1,351 million while PATMI grew by 17% to RM708 million.”
The achievement was attributed to the group’s continued cost discipline, overall expenses fell 5.1% YoY to RM1,008.2 million, which together with revenue growth and expense reduction, resulted in profit before provision growing 14.0%.
The Group recorded a net impairment charge of RM377.1 million, which was lower when compared to RM382.4 million a year ago, resulting from higher model-driven forward-looking (FL) provisions taken, offset by lower overlays. As a proactive measure to bolster the Group’s exposure to retail and SME customers, as well as the oil and gas sector, an RM67.6 million of overlay, was charged for the quarter under review. Total preemptive overlays stood at RM900.4 million, of which RM745.5 million was charged in the previous financial years. GIL ratio stood at 1.44% (FY21: 1.54%), with LLC increasing to 159.0% from 135.6% in FY21. The Group continues to conduct periodic stress tests and regular portfolio reviews, incorporating recent repayment patterns as more and more customers graduate from their respective loan relief schemes.
Gross loans and financing recorded a growth of 0.7% or RM794.5 million YTD to RM115.6 million, mainly contributed by an RM1.1 billion, RM491 million, and RM415 million increase in Mortgage, Personal Financing, and Business Banking loans respectively. This was partially offset by an RM844 million decrease in Wholesale Banking loans.
Deposits from customers reduced by 3.9% YTD to RM115.9 billion. Time deposits decreased 5.3% YTD while CASA balances remained broadly stable YTD at RM35.6 billion. CASA mix was higher at 30.7% (FY21: 29.7%). AmBank remain highly liquid, with a liquidity coverage ratio (LCR) of 180.9% as at 30 September 2021.
FHC CET1 ratio and total capital ratio stood at 12.7% and 15.6% respectively. Based on stress testing scenarios, the Group has sufficient loss absorption capacity to maintain capital ratios above both regulatory requirements and internal capital targets.
