AMMB reported a net income of RM1.17 billion while NII grew 6.4% YoY to RM860.9 million (Q1FY24: RM808.7 million), on the back of a 13-bps NIM expansion to 1.89% (Q1FY24: 1.76%).
The bank said gross loans, advances and financing grew 2.9% YoY mainly led by Business Banking loans growth of 16.5% YoY. NoII was 19.2% lower YoY to RM317.6 million (Q1FY24: RM393.2 million) due to non-repeat of the AmGen divestment gain of RM51.1 million and lower trading and securities gain. Continuing Operations’ net income of RM1,178.5 million was 2.4% higher YoY, led by NII growth of 6.4%, offset by a 7.1% decline in NoII.
Overall expenses were up by 2.5% YoY to RM520.6 million, increasing CTI to 44.2% (Q1FY24: 42.2%). PBP was 5.2% lower YoY at RM657.9 million (Q1FY24: RM694.2 million). Continuing Operations’ PBP of RM657.9 million, however, was 2.3% higher YoY.
Net impairment charges this quarter were lower at RM12.3 million (Q1FY24: RM190.4 million) due to lower impairment charges in Retail Banking and Business Banking with higher forward-looking reversals arising from favourable changes in macroeconomic variables.
As a result, AMMB said its PATMI grew 32.2% YoY to RM500.2 million, culminating in an improved annualised ROE of 10.2%. ROA also improved to 1.02% (Q1FY24: 0.83%). Continuing Operations’ PATMI of RM500.2 million grew 42.0% YoYThe Group’s GIL ratio was at 1.70% (FY24: 1.67%) with a LLC (including regulatory reserves) of 107.6% (FY24: 109.5%). The Group continues to monitor its asset quality vigilantly.
Total gross loans, advances and financing decreased by a marginal 1.1% YTD to RM132.7 billion (FY24: RM134.1 billion), mainly due to a large loan repayment in Wholesale Banking, offset by growth in Business Banking (increased RM0.6 billion or + 1.5% YTD)
AmBank Group Chief Executive Officer, Mr Jamie Ling said, “We have achieved a strong start to our FY25. We delivered a 32% increase in PATMI to RM500.2 million. We improved our NIM and delivered an annualised ROE of 10.2% and ROA of 1.02%.”
