“We recorded an NII (net interest income) of RM599.3 million in the fourth quarter, the highest level we have seen since the second quarter of last year.”

DATUK SULAIMAN MOHD TAHIR,AmBank Group chief executive officer

KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) saw its net profit rise slightly to RM1.32 billion in the year ended March 31, from RM1.3 billion previously.

The small profit increase was attributed to higher other operating income, share in results of associates and joint ventures, and lower other operating expenses.

Group revenue eased 1.5 per cent to RM8.29 billion from RM8.42 billion last year.

For the fourth quarter, AmBank’s net profit grew 19.9 per cent year-on-year to RM335.81 million from RM280.02 million previously.

This was mainly contributed by other operating income, net income from Islamic banking business, writeback for impairment on doubtful sundry receivables and net interest income (NII).

Earnings per share grew to 11.17 sen from 9.32 sen in the fourth quarter last year.

Quarterly revenue increased two per cent to RM2.15 billion from RM2.1 billion.

“We recorded an NII of RM599.3 million in the fourth quarter, the highest level we have seen since the second quarter of last year.

“This reflects our ongoing initiatives to improve our cost of funds and stronger loans growth momentum, particularly mortgages and loans to small and medium enterprises,” said AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir in a statement yesterday.

The group proposed a final dividend of 12.6 sen per share, bringing the total dividend for the year to 17.6 sen per share, or a payout ratio of 40 per cent.

Sulaiman said the group spent a good part of the year under review setting the foundation to its “Top 4” strategy and building the areas that supported its growth agenda, focusing on improving margins and strengthening its balance sheet for optimal returns to its shareholders.

“We are confident that the group is well-positioned to achieve growth targets and progressively deliver optimal returns for our shareholders.”

He noted that the group’s return on equity stood at 8.5 per cent and return on assets improved to 1.1 per cent.

Its gross loans, advances and financing increased to RM91 billion as at March 31, compared with RM87.9 billion a year ago, due to growth in mortgages and trade facilities.

As at March 31, its total assets stood at RM134.8 billion.

On the industry’s outlook, Sulaiman said banking loans were expected to grow between five and six per cent this year.