KUALA LUMPUR: AMMB Holdings Bhd (Ambank) swung to the black in its financial year ended March 31, 2022, with a net profit of RM1.5bil as compared with a net loss of RM3.83bil in the previous year.

       For another comparison, the financial services group's negative performance in the previous year was owing to one-off exceptional items, which if excluded, resulted in a core profit of RM962mil.

       The group reported revenue of RM4.67bil in FY22, which was 2.47% improved over RM4.55bil year-on-year (y-o-y).

       In the fourth quarter alone, AmBank posted a net profit of RM391.75mil and revenue of RM1.12bil as compared with a net loss of RM4.69bil and revenue of RM1.13bil in 4QFY21.

       According to AmBank group CEO Datuk Sulaiman Mohd Tahir, the group's net interest income in FY22 rose 11.6% y-o-y on the back of 6.5% loans growth while net interest margin was higher at 2.05%.

       Non-interest income narrowed 14.1% y-o-y, owing to the volatile market conditions which led to lower trading and investment income from group treasury and markets as well as investment income from the insurance business.

       This was partly offset by higher fee income from corporate banking and investment banking.

       "At the end of the 2022 fiscal year, AmBank Group stands at a position of strength with a stronger balance sheet, capitalisation as well as a more diverse liquidity profile," said Sulaiman in a statement.

       In the light of the group's performance, the board of directors proposed a final dividend of five sen per share for the financial year.

       Meanwhile, Sulaiman said the group's overall expenses fell 1.8% y-o-y to RM2.09bil.

       Cost-to-income ratio improved further to 44.9% from 46.8% a year ago, while JAWS was positive at 4.3%.

       Consequently, profit before provision grew 6.2% y-o-y to RM2.57bil and profit after tax and minority interest increased significantly to RM1.5bil, while ROE was 9.3% in FY22.

       The group’s net impairment charge of RM766mil was lower by 32.6%, as compared to RM1.14bil in the previous year.

       This was mainly attributable to reversals of both forward looking and central overlay provisions, which offset against the provision charges for oil and gas exposures.

       Total overlay reserves carried forward at RM393.8mil compared with RM745.5mil in FY21.

       GIL ratio stood at 1.4%, down from 1.57% in FY21, with LLC at 139.2% compared with 124.1% in FY21.

       Gross loans and financing came in at RM120bil, which grew 6.5% from the previous year.

       Deposits from customers increased 1.7% y-o-y to RM122.6bil on the back of 20.6% growth in current account savings account (Casa) balances to RM43.1bil, which cushioned the 6.3% y-o-y decrease in time deposits.

       Consequently, Casa mix was higher at 35.2% compared with 29.7% previously.

       The group remains highly liquid, with a liquidity coverage ratio (LCR) of 158.5% as at March 31, 2022.

       Sulaiman highlighted that post-dividend, FHC CET1 and total capital ratio will stand at 12.2% and 15.3% respectively.

       Excluding transitional arrangement, FHC CET1 stood at 11.7%, a 1.3% increment from FY21.

       "We continue to be committed to our resilient capital building via profit accretion and our ongoing divestiture of non-core assets,” said Sulaiman.