AMMB 1Q net profit up 5.1 pct to RM383.25 million

KUALA LUMPUR: AMMB Holdings Bhd posted a net profit of RM383.25 million for its first quarter ended June 30, 2018, compared with RM364.54 million in the same quarter last year, with good loan growth in targeted segments such as mortgage and small and medium enterprises (SMEs).

Revenue for the quarter also increased 4.4 per cent to RM2.17 billion.

“We continue to see good loan growth in our target segments. Mortgage loans maintained growth momentum and expanded by 4.8 per cent year- to- date (YTD) to RM27.7 billion,” said group chief executive officer Datuk Sulaiman Mohd Tahir in a statement yesterday.

He said SME loans grew 2.8 per cent YTD to RM17.2 billion and card receivables were up 4.3 per cent to RM2.1 billion.

“All in all, we are encouraged by the loans growth for the eighth consecutive quarter,” he said.

Sulaiman said as a result of concerted efforts to implement stronger cost discipline over the past year, expenses were down seven per cent year-on-year to RM513 million.

“Our cost base is now leaner following the completion of the Mutual Separation Scheme. Other operational expenses also reduced as we continue to manage costs diligently,” he added.

For the remaining quarters of the financial year, AMMB said it would continue to focus on driving income growth momentum, in line with the key segments and products strategies.

“Current and savings accounts growth is one of our key priorities this year,” it said in a filing with Bursa Malaysia.

The group also embarked on a three-year business efficiency transformation programme aimed at achieving RM300 million gross cost efficiencies across it and help achieve its cost-toincome ratio target of 55 per cent in the current financial year.

It will also continue to keep a tight rein on costs, pacing investments, while continuing to look for operational efficiencies.

“We aim to strengthen our capital position further and deliver sustainable dividend payout to our shareholders.

“To achieve this, we are driving initiatives to improve our capital efficiency and return on riskweighted asset,” AMMB Holdings added.— Bernama