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24 Aug 2017
The Sun : AMMB’s Q1 profit expands 1.6% on higher interest income
 
AMMB’s Q1 profit expands 1.6% on higher interest income
Posted on 24 August 2017 - 01:44pm
Last updated on 24 August 2017 - 11:45pm
sunbiz@thesundaily.com 

PETALING JAYA: AMMB Holdings Bhd, which scrapped its merger deal with RHB Bank Bhd, saw net profit rise 1.6% to RM328.27 million for the first quarter ended June 30 against RM323 million in the previous corresponding period, driven by higher net interest income, net income from Islamic banking and lower taxation.

Revenue for the quarter under review was up 0.9% from RM2.06 billion to RM2.08 billion.

The group said in a filing with the stock exchange that higher net interest income was driven by lending growth in targeted segments, while net interest margin stood at 2.02%.

AMMB's gross loans, advances and financing increased to RM92.8 billion compared with RM91 billion as at March 31, 2017 due to growth in mortgages and trade facilities but was offset by decrease in hire-purchase receivables.

In terms of asset quality, AMMB said the group's credit cost is normalising with lower recoveries and writebacks on performing loans. Its gross impaired loan ratio was stable at 1.88%, in line with the previous fiscal year.

The group maintained adequate capital with common equity tier-1 ratio at 11.7%, and remained watchful of corporate loans impairment in select sectors.

AmBank group CEO Datuk Sulaiman Mohd Tahir said the group will focus on the growth of quality assets, deposit mix, maximising fees as well as optimising and improving risk-adjusted returns.

"Our current initiatives involve improving our operational efficiency via faster loan approval turnaround time and automating our collections process in Q1FY18. We have implemented simplified teller processes at all our branches nationwide."

AMMB shares fell seven sen to close at RM4.52 yesterday on some 8.02 million done.