PETALING JAYA: AMMB Holdings Bhd saw its net profit for its fourth quarter ended March 31 fall 46.1% to RM247.54 million, from RM459.67 million in the previous corresponding quarter, while revenue dipped 5.1% to RM2.21 billion from RM2.33 billion.
According to the group’s Bursa announcement, interest income from securities grew mainly from hold to collect and sell securities, while interest income from customer lending decreased attributable to hire purchase financing mitigated by increase in term loans and housing loans.
The group’s core interest bearing assets recorded a growth in gross balances by RM5.37 billion from March 31 2019 to RM107.2 billion. The group’s impaired loans ratio was at 1.7%.
Deposits from customers was higher compared to March 31, 2019 at RM113 billion. Low cost deposits which constituted 25.5% of total deposits from customers increased compared to 23.3% as at March 31, 2019.
Fee based income recorded an increase of RM58.9 million driven by growth in income from wealth management and unit trust activities.
Funding costs decreased attributable to lower interest expense on customer deposits, term funding and debt capital. Interest on term funding and debt capital decreased due to redemption by the group. The decrease was offset by higher interest on securities sold under repurchase agreements.
For the full year, net proft was at RM1.34 billion, from RM1.5 billion previously. Revenue, however, was higher at RM9.32 billion, from RM9.12 billion.
A final dividend of 7.3 sen per share (FY19:15 sen), bringing the total dividend payout for the year to 13.3 sen and a dividend payout ratio of 30%.
AmBank Group CEO Datuk Sulaiman Mohd Tahir said following the conclusion of its Top 4 Strategy, which has put the group on a strong footing to navigate the economic uncertainties and challenges, particularly given the current Covid-19 pandemic.
“We started FY20 strongly, achieving over RM1 billion of core revenue in the first three quarters of the year, with higher net interest income and stronger trading and fee income, while the final quarter’s performance was impacted by the Covid-19 pandemic.
“Overall, we have achieved most of the key metrics set out in the Top 4 Strategy and our results are testament of our ability to execute. We look forward to the next phase of transformative growth as the group operates under our refreshed strategy and business plans,” he said.
Looking at 2021, Sulaiman said the group will remain steadfast in exercising credit vigilance, with greater emphasis being placed on n risk management, stress testing, capital planning and liquidity management in order to safeguard the group’s financial resilience.
“Operationally, we will continue our cost discipline and prioritise investments. The group will continue to drive operational efficiencies through simplification and automation in line with the second phase of our BET300 efficiency programme. We expect a gradual recovery of the economy, however, we will exercise caution against all aspects of risks in the short term.”
source https://www.thesundaily.my/business/ammb-s-q4-net-profit-declines-46-to-rm2475m-KA2637804
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