AMMB Holdings 3rd quarter revenue 1.28 billion ringgit, +3.1% y/y

AMMB Holdings 3rd quarter revenue 1.28 billion ringgit, +3.1% y/y

AMMB Holdings Reports 3Q 2024 Net Profit Decline Amid Revenue Growth

AMMB Holdings Bhd (AmBank Group) reported a 3Q 2024 net profit of RM486.49 million, a decline from RM543.41 million in the same period of 2023, primarily due to lower Islamic banking income and higher operating expenses. Despite the profit drop, revenue rose to RM1.24 billion, up from RM1.15 billion year-on-year, driven by a 7.8% increase in net interest income to RM2.67 billion.

For the cumulative nine months of financial year 2025, net profit grew to RM1.49 billion from RM1.39 billion, while revenue expanded to RM3.65 billion from RM3.48 billion. The bank attributed the year-to-date improvement to strategic focus on business banking, which saw a 15.2% loan growth, and disciplined capital allocation under its "Winning Together (WT29)" strategy.

Non-interest income fell 2.3% year-on-year to RM972.6 million, impacted by the absence of a one-off divestment gain in 9M FY24 and reduced trading gains. However, fee income from business banking, wealth management, and investment banking partially offset the decline.

AmBank Group's gross loans and financing increased 4.4% to RM137.1 billion, with business banking contributing the strongest growth. Customer deposits declined 2.8% year-to-date to RM138.4 billion, reflecting a strategic shift to improve margins. Time deposits rose 4.7% to RM93.8 billion, while current account and savings account (CASA) balances fell 15.4% to RM44.6 billion.

CEO Jamie Ling highlighted the bank's focus on de-risking retail banking and reallocating capital to higher-margin segments, alongside maintaining strong liquidity and capital levels. Basic earnings per share increased 6.9% to 44.99 sen, and net assets per share rose to RM6.07.

The results reflect a mixed performance, balancing strategic growth initiatives with cost and margin pressures in a competitive banking sector.