KUALA LUMPUR: AMMB Holdings Bhd's (Ambank) net profit rose 35.6 per cent to RM435.40 million in the second quarter (Q2) ended Sept 30, 2022 from RM321.04 million a year ago.
This is due to the higher loan growth and net interest margin expansion.
Ambank's revenue for the quarter edged up to RM1.18 billion from RM1.12 billion last year.
The banking group declared an interim dividend of six sen per share, with a dividend payout ratio of 23 per cent.
For the cumulative six months, Ambank posted higher net profit of RM854.60 million from RM707.64 million previously, on the back of revenue of RM2.35 billion versus RM2.36 million last year.
According to AmBank, net interest income for the period rose 10.4 per cent year on year (yoy), raising net interest margin to 2.17 per cent.
The group recorded a lower impairment charge of RM266.9 million for the period. This included a RM116 million impairment of the Kunia brand, agent relationship and other AmGeneral Insurance Bhd assets, compared with RM377.1 million in the previous year.
Non-interest income fell 24.5 per cent yoy due to the disposal of AmGeneral and lower fee income from investment banking and wealth management.
During the period, the group recorded a one-time disposal loss of RM49.7 million after deduction of net assets disposed of including goodwill, impairment of AmGeneral intangibles and transaction expenses.
Ambank said it received RM286.9 million in cash which improved common equity Tier-1 by 0.25 per cent and also retained a 30 per cent equity interest in the combined businesses of AmGeneral and Liberty Mutual Insurance Bhd valued at RM958.2 million.
"The group reported diversified growth across its business segments, represented by a 3.6 per cent increase in gross loans and financing to RM124.4 billion.
"Customer deposits stood at RM121 billion with a 2.1 per cent increase in time deposits while current account savings account (Casa) fell 7.6 per cent to RM39.8 billion, owing to the reduction in wholesale banking," it said.
AmBank group chief executive officer Datuk Sulaiman Mohd Tahir said the bank's topline and bottomline results were a clear reflection of its efforts to strengthen market share while managing our asset quality.
Sulaiman said the bank was encouraged by strong economic activities accompanied by the influx of foreign investments and stronger domestic as well as foreign demand.
"We foresee these factors supporting the growth momentum of our economy well into 2023. We are pleased to see consistent growth in our performance, driven by our solid fundamentals and commitment to excellence.
"With the declaration of an interim dividend of 6.0 sen per share, we are well on track to revert to our historical dividend payout pattern," he said.