AMMB Holdings Bhd (AmBank) has posted a lower net profit of RM1.34 bil for the financial year ended March 31, 2020, or 10.93% lower compared to RM1.51 bil a year ago. Revenue grew 2.24% to RM9.32 bil from RM9.12 bil for the same period.
The drop in profit was due to higher net provisions and minority interests, said AmBank group chief executive officer Sulaiman Mohd Tahir.
He added that the previous year’s result included a one-off gain from the retail non-performing loans sale of RM285 mil. Also, the total dividend payout for this year was 13.3 sen per share.
“In fact, our underlying Patmi of RM1.47 bil was up 15.4% year-on-year, after normalising the one-off gain and the additional macro provision that was set aside as additional prudence,” he said.
Sulaiman said despite the Covid-19 pandemic, AmBank was on a strong footing to navigate economic uncertainties and challenges.
The bank has “a stronger balance sheet now and we are well-capitalised and more diverse in our liquidity profile compared to just four years ago,” he said.
Due to the coronavirus outbreak, AmBank has set aside an additional macro provision of RM167.3 mil in the fourth quarter to reflect a more challenging outlook, said Sulaiman.
As a result, the bank’s net credit cost for the year increased to 30bps from a net recovery position last year.
The group will also continue to closely monitor the impact of the pandemic on its credit portfolios during the moratorium period, said Sulaiman, adding that approximately RM65 bil, or 61% of the group’s total loans in the retail and SME segments, is under Bank Negara’s repayment moratorium until Oct 1, 2020.
For FY21, Ambank would continue to exercise credit vigilance and proactively reach out to its customers during this challenging period, Sulaiman said.
AMMB’s shares are down 2.24% at RM3.06 after the midday break. – June 29, 2020