AMMB Holdings Bhd has announced its financial results for the half-year ended Sept 30, 2019 (1HFY20).
Here’s a summary of the banking group’s 1HFY20 results.
- Total income grew 5.6% to RM2,133.5 mil, with a consistent net interest income (NII) growth of 4.6%, and stronger fixed income trading and investment gains
- Expenses remain stable at RM1,054.8 mil. Cost-to-income (CTI) ratio improved further to 49.4% from 50.4% a year ago
- Profit before provision (PBP) increased by 7.6% to RM1,078.7 mil
- Net impairment charge of RM76.6 mil (1HFY19: RM17.9 mil) largely due to increased gross provisions charged for wholesale banking offset by releases and recoveries achieved, a net increase in business banking provisions and higher expected credit loss on retail Bbanking portfolios
- Net profit after tax and minority interests (PATMI) grew 2.2% to RM711.0 mil
- Return on equity (ROE) at 7.9% (1HFY19: 8.2%), with return on assets (ROA) of 1.01% (1HFY19: 1.06%) and basic earnings per share (EPS) of 23.63 sen (1HFY19: 23.13 sen)
- Gross loans and financing at RM102.0 bi, remained broadly stable year-to-date (YTD)
- Loans grew 1.6% YTD, excluding auto loans. Customer deposits were stable at RM102.7 bil, down 3.9% YTD
- Impaired loans (GIL) ratio stood at 1.77% (FY19: 1.59%), with loan loss coverage (LLC) ratio of 105.8% (FY19: 114.0%)
- Financial Holding Company (FHC) common equity Tier 1 (CET1) capital ratio was higher at 12.6% (FY19: 11.9%) and total capital ratio of 16.1% (FY19: 15.4%)
- Higher interim dividend of six sen (1HFY19: five sen) per share.
AmBank Group CEO Datuk Sulaiman Mohd Tahir said: “The AmBank Group is pleased to have delivered strengthened results for the first half of the year. We continue to demonstrate good progress with improving trends in our income momentum, operating leverage as well as profitability.
“The group’s total income rose 5.6% year-on-year propelled by consistent net interest income growth, stronger trading gains and investment income from group treasury and markets as well as general insurance.”
For the second quarter (2QFY20), the group’s increased 6.1% from a year ago, driven by better lending volumes and strong trading and investment income performance. – Bernama