PETALING JAYA: AmBank Group has made a net profit of RM386.60mil for the quarter under review, an increase of 5.9% from the net profit of RM365.16mil it made a year ago amid an uneven economic recovery.
It said yesterday its revenue was lower at RM2.09bil in the first quarter ended June 30, down 5.3% from RM2.21bil a year ago. Earnings per share was at 11.86 sen compared with 12.14 sen.
“Total income grew 13.3% to RM1.23bil, driven by a higher loan growth and net interest margin. Excluding the net modification loss, adjusted income increased to RM1.21bil, up 4.8% year-on-year,” it said in a statement.
AmBank said expenses were well contained at RM494.6mil, down by 8.2% while the cost-to-income ratio improved further to 40% from 49.3% a year ago.
“Profit before provisions (PBP) increased 34.2% to RM743.3mil, adjusted PBP grew 16.2%. Net impairment charge was at RM203.2mil (RM49.9mil in the previous corresponding quarter), including an additional overlay provision of RM87.2mil,” it said.
Its gross impaired loan ratio was 1.56% (1.54% in financial year 2021 or FY21), with a loan loss coverage ratio of 138.0% (FY21: 135.6%).
It said gross loans and financing grew 0.7% year-to-date to RM115.6bil (FY21: RM114.8bil).
As for customer deposits, there was a 5.3% decline year-to-date to RM114.1bil, with time deposits reducing by 5.6% while current account and savings account (CASA) balances saw a 4.6% reduction (CASA mix higher at 29.9%).
The group remains highly liquid with a liquidity coverage ratio of 198% (FY21: 157.5%).
AmBank Group chief executive officer, Datuk Sulaiman Mohd Tahir, said Malaysia’s road to economic recovery continued to be bumpy with the recent resurgence in Covid-19 infections and the reimposition of movement restrictions.
Amidst these challenging circumstances, the group was able to register a solid overall performance. “We delivered a 34.2% growth in PBP to RM743.3mil and a 5.9% growth in profit after taxation and minority interests to RM386.6mil.”