KUALA LUMPUR: AMMB Holdings Bhd's (AmBank) net profit increased 8.4 per cent to RM419.19 million in the first quarter (Q1) ended June 30, 2022, from the RM386.6 million recorded in the same quarter last year.
Its revenue in Q1 eased 6.2 per cent to RM1.16 billion from RM1.24 billion.
AmBank group chief executive officer Datuk Sulaiman Mohd Tahir said amid a challenging macro and geopolitical environment, the group commenced the new financial year with a solid net profit, while delivering an annualised return on equity of 10 per cent.
"I am particularly pleased with our performance in wholesale banking, retail banking, business banking and Islamic banking, which reflects our continued strong fundamentals amidst volatility," he said in a statement today.
AmBank's net interest income (NII) grew 5.5 per cent year-on-year (YoY) while net interest margin (NIM) was higher at 2.12 per cent (Q1 FY22: 2.08 per cent).
However, it said volatile market conditions led to lower trading and investment income from group treasury and markets and insurance business, as well as lower fee income from investment banking and wealth management.
Consequently, non-interest income was reduced by 28.9 per cent YoY.
The group recorded lower impairments of RM63.9 million in Q1 compared to RM203.2 million in the previous year.
Total overlay reserves carried forward stood at RM423.8 million (FY22: RM393.8 million), with RM30.0 million overlay taken for corporate exposures.
The group's gross impaired loan (GIL) ratio was at 1.55 per cent (FY22: 1.40 per cent).
AmBank said it was committed to proactive risk management and continues to monitor its asset quality vigilantly, with a heightened focus on its GIL portfolio which was expected to trend up following the tapering of loans under relief schemes.
Meanwhile, gross loans grew by RM132.8 million in the quarter with a visible corporate loans pipeline in Q2, primarily contributed by growth in mortgages and business banking by RM478.2 million (+1.1 per cent) and RM316.9 million (+1.7 per cent) respectively offset by the reduction in wholesale banking by RM848.8 million (-2.7 per cent).
Deposits from customers stood at RM121.4 billion.
Time deposits increased 3.0 per cent year to date (YTD) while current account saving account (CASA) balances fell 8.2 per cent to RM39.6 billion.
Consequently, CASA mix was lower at 32.6 per cent (FY22: 35.2 per cent).
The group remains highly liquid, with a liquidity coverage ratio (LCR) of 153.0 per cent as at June 30, 2022.
Sulaiman said the company was seeing significant signs of recovery in Malaysia's economic activities across various sectors supported by firm domestic demand and the recovery charted in the job market.
He said consumer and investor sentiments also continued to improve.
