AmBank's Q1 earnings up 3.0pct to RM516mil, revenue rises 9.5pct to RM1.29bil
The bank's net profit in the quarter ended June 30, 2025 rose to RM516 million from RM500 million in the same period last year.
AmBank's group revenue climbed 9.5 per cent to RM1.29 billion from RM1.18 billion last year.
AmBank group chief executive officer Jamie Ling said it delivered a solid set of results, with income growth underpinned by an improvement in net interest margin (NIM).
"Capital position strengthened further and liquidity remains ample. Overall, a satisfactory first quarter performance, delivered in more volatile market conditions," he said in a statement.
Ling added that the overnight policy ratereduction will have some impact on NIM in the near term.
"As our economy adjusts to the 19 per cent tariff imposed on most Malaysian exports to the US, we are confident that economic growth will remain resilient," he added.
AmBank's net income grew 9.5 per cent to RM1.29 billion, driven by higher net interest income (NII) on the back of strong NIM expansion and higher non-interest income (NoII).
Its NII grew 7.4 per cent to RM924.7 million, lifted by a 12-basis point (bps) expansion in NIM to 2.01 per cent.
Meanwhile, NoII grew 15.2 per cent to RM366 million, driven by higher trading gains in group treasury and markets (GTM) as well as higher fees earned in business banking and wholesale banking.
Annualised return on equity (ROE) at 10 per cent while return on assets (ROA) improved to 1.05 per cent
However, investment banking and wealth management segments faced challenges amid cautious investor sentiment, resulting in lower fee income.
Its net impairment charges were higher at RM72.4 million, mainly attributable to higher Stage 3 provisions and lower writeback of forward-looking provision.
AmBank's loans, advances and financing fell a marginal 0.5 per cent year-to-date to RM138.2 billion
Its gross impaired loans (GIL) ratio was higher at 1.71 per cent, with loan loss coverage (LLC) ratio of 100.1 per cent, including regulatory reserves.
So far this year, the group's customer deposits fell 2.5 per cent to RM138 billion and time deposits grew 0.6 per cent to RM91.1 billion.
Its current account and savings account (CASA) balances fell 8.1 per cent to RM46.9 billion, giving a CASA mix of 34.0 per cent.
"Liquidity is healthy and ample as liquidity coverage ratio (LCR) for all entities were above 160 per cent," it said.
The bank's common equity tier 1 capital ratio stood at 14.90 per cent, with total capital ratio at 17.68 per cent.
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