KUALA LUMPUR: AMMB Holdings Bhd’s net profit for the third quarter ended Dec 31, 2018 (Q319) surged 59.8 percent to RM349.88 million from RM218.98 million in the same period a year ago.
Revenue increased to RM2.30 billion from RM2.16 billion previously.
For the nine-month period (9M19), net profit grew 19 percent to RM1.05 billion while revenue rose RM6.79 billion.
In a filing to Bursa Malaysia yesterday, the group said the better profit was propelled by higher lending volume, lower cost base and increase in recoveries.
Group chief executive officer Datuk Sulaiman Mohd Tahir said the nine-month results demonstrate that the bank’s strategies which have been put in place over the last couple of years are bearing fruit on its bottom line and businesses.
“This is reflective by virtue of the fact that our net profit during the period rose 19 percent year-on-year against a backdrop of slower economic growth and heightened market volatility while income was up two percent underpinned by steady loans growth, driving net interest income growth of 5.9 percent.
“Our commitment and resolve to improve cost efficiencies especially in a subdued environment has resulted in the group achieving a cost-to-income ratio (CTI) of 51.6 percent with a positive jaws ratio of circa 12 percent,” he said.
Additionally, he said the group had also achieved a few large corporate recoveries, further boosting its earnings with its returns on equity (ROE) having improved to 8.2 percent, on track to achieve its ROE target of 8.5 percent. – Bernama
AMMB said the group had undertaken assertive cost initiatives while continuing to invest in strengthening its infrastructure and building new capabilities.
The group recorded a net recovery of RM33.4 million in 9M19 compared to an impairment charge of RM32.9 million in the same period last year, aided by several large corporate recoveries, it said.
It said gross loans growth was broad-based, up by 4.2 percent year-to-date (YTD) or six percent compared with the corresponding quarter last year with good traction in the targeted segments.
The bank said it had also recorded a robust customer deposits growth of 11.4 percent YTD to RM106.8 billion, outpacing the industry’s growth with current accounts and savings accounts (CASA) increasing by 8.5 percent YTD to RM22.1 billion.
Moving forward, Sulaiman said the group is ramping up the digitisation of its financial services.
“We will continue to introduce other new value-added features into our online banking platform and provide a more efficient online banking experience. These new features are part of our AmOnline digital roadmap and the promise of a new feature every three months,” he added.
–Bernama
