(From left) AMMB Holdings Bhd group chief financial officer Shafiq Abdul Jabbar, group chief executive officer Jamie Ling, and head of investor relations Yeoh Ru Hann on Monday. 'Our balance sheet is in good shape,' Ling said. (Photo by Suhaimi Yusuf/The Edge)

KUALA LUMPUR (May 27): AMMB Holdings Bhd's (KL:AMBANK) net profit for the financial year ended March 31, 2024 (FY2024) rose 9.4% year-on-year (y-o-y) to RM1.87 billion from RM1.71 billion despite lower net interest income of RM2.14 billion versus RM2.28 billion.

In a bourse filing on Monday, the bank said net profit for the fourth quarter (4QFY2024) rose 11% y-o-y to RM476.54 million from RM427.39 million, driven by higher non-interest income (NOII). Net interest income for 4QFY2024 eased to RM518.67 million against RM521.79 million a year ago amid compression on net interest margin.

Earnings per share for the quarter rose to 14.41 sen from 12.92 sen.

AMMB declared a dividend of 16.6 sen per share, to be paid on July 11.

Reviewing its performance, AMMB said 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 said expenses were lower by 2.3% y-o-y.

The bank said net impairment charge was higher at RM769.7 million in FY2024, compared to RM466.9 million in FY2023, 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 FY2024 (3QFY2024).

It said excluding these items, FY2024 net credit cost was 0.27% versus 0.32% in FY2023.

The group also recognised RM80 million provision for restructuring expenses in 3QFY2024.

Total one-off charges in FY2024 comprising credit impairment overlays, intangible assets impairment and restructuring expenses amounted to RM520.2 million (or RM402.5 million, net of corporate tax).

In a separate statement, AMMB group chief executive officer Jamie Ling said the bank’s delivered a good set of results, with a profit after tax and minority interests (Patmi) of RM1.87 billion and a return on equity (ROE) of 10%.

“Our balance sheet is in good shape, we improved our capital ratios further and declared a 23% increase in annual dividends of 22.6 sen per share for FY2024,” he said.

On the bank’s outlook for FY2025, Ling said AMMB expects global financial markets to remain volatile, centred around inflation outlook and monetary policy direction on interest rates globally.

“External demand drivers have improved despite ongoing geopolitical tensions and conflicts.

“Domestically, we expect a 4% to 5% 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.

At market close, AMMB settled unchanged at RM4.27, giving it a market capitalisation of RM14.15 billion.