KUALA LUMPUR: AMMB Holdings Bhd (Ambank Group) recorded a 9.4 per cent rise in net profit to RM1.87 billion for the financial year ended March 31, 2024 (FY24) from RM1.71 billion a year earlier.
The group's revenue, however, eased 1.38 per cent from RM4.71 billion to RM4.65 billion.
Its net profit for the fourth quarter rose 11 per cent to RM476.5 million from RM427.39 million, while revenue increased 0.87 per cent to RM1.17 billion versus RM1.16 billion a year earlier.
Ambank declared a dividend of 16.6 sen per share that will be be paid on July 11.
In a statement, the group said its net interest income (NII) declined 6.7 per cent to RM3.3 billion.
Its non-interest income (NOII) delivered strong year-on-year (YoY) growth of 14.7 per cent to RM1.34 billion, which offset the effects of net interest margin (NIM) compression.
"NOII growth was primarily contributed by higher fee income from investment banking, fund and wealth management, as well as higher investment income and trading gains from global market and foreign exchange income from business banking and retail banking," it added.
Ambank said the expenses were lower by 2.3 per cent YoY, improving cost-to-income (CTI) ratio to 44.2 per cent.
The net impairment charge was higher at RM769.7 million in FY24, compared to RM466.9 million in FY23, due to an additional credit impairment overlay of RM328.2 million and intangible assets impairment of RM111.9 million taken in the third quarter of FY24 (3QFY24).
The group also recognised RM80 million provision for restructuring expenses in 3QFY24.
Ambank group chief executive officer Jamie Ling said the bank had delivered a good set of results, with a profit after tax and minority interests (Patmi) of RM1.87 billion and an return on equity of 10 per cent.
"Our balance sheet is in good shape, we improved our capital ratios further and declared a 23 per cent increase in annual dividends of 22.6 sen per share for FY24," he added.
Commenting on its outlook, Ling said the bank expects global financial markets to remain volatile, centred around inflation outlook and monetary policy direction on interest rates globally.
He stated that the external demand drivers had improved despite on-going geopolitical tensions and conflicts.
"Domestically, we expect a 4.0 per cent to 5.0 per cent gross domestic products (GDP) growth for Malaysia's economy in 2024, supported by resilient domestic demand and improving labour markets driving consumption.
"We also expect increased tourism activities to boost the economy and the spillover effects of the technology upcycle to drive foreign direct investment into our country," he said.