26-05-2025
- Business
- New Straits Times
AmBank posts 7.1pct higher net profit to RM2.0bil for FY25, paying 30.2 sen dividend
KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) closed its financial year ended March 31 2025 (FY25) with a 7.1 per cent net profit growth year-on-year to RM2.0 billion from RM1.87 billion previously.
This was on the back of a higher net income of RM4.93 billion from RM4.65 billion in FY24, said AmBank Group in a statement today.
The group posted a net profit of RM513.93 million in the final quarter, up from RM476.54 million a year ago.
Its revenue during the fourth quarter (Q4) rose to RM1.28 billion from RM1.17 billion in Q4FY24, while earnings per share climbed to 15.55 sen from 14.41 sen previously.
AmBank Group chief executive officer Jamie Ling said: "We are pleased to report a strong close to the first year of our WT29 strategy.
"With our capital position solid, we increased our total cash dividend to RM1.0 billion. This reflects our confidence as we continue to build our businesses from a position of strength," he added.
The group proposed a final dividend of 19.9 sen per share for the fourth quarter (Q4) of FY25.
Together with the interim dividend of 10.3 sen per share declared in Q2, total dividends for FY25 amounted to 30.2 sen per share, up 34 per cent YoY with a dividend payout ratio of 50 per cent
AmBank's net interest income grew 8.0 per cent YoY to RM3.57 billion, with a 15-basis point expansion in net interest margin to 1.94 per cent.
Its non-interest income grew 1.3 per cent YoY to RM1.36 billion with continuing operations income up 5.3 per cent YoY.
AmBank said a broad-based growth in fee income was achieved across business banking, retail wealth management, funds, stockbroking, private banking and equity capital markets and from insurance.
This was partially offset by lower trading gains from group treasury and markets.
The group's total gross loans, advances and financing grew 3.5 per cent YoY to RM138.9 billion (FY24: RM134.1 billion) mainly driven by business banking (up RM5.4 billion or 12.4 per cent YoY) and wholesale banking (up RM1.3 billion or 6.8 per cent YoY).
This was partially offset by lower loans growth in retail banking (down RM1.4 billion or 2.1 per cent YoY).
Its total customer deposits fell 0.6 per cent YoY to RM141.5 billion, while total expenses increased 7.1 per cent YoY to RM2.2 billion, with cost-to-income ratio of 44.6 per cent.
The group's net impairment charges dropped to RM143.9 million (FY24: RM769.7 million), on the back of improved expected credit loss calculations for loans classified as Stage 3 (or ECL S3) flow rates and writeback of forward-looking provision.
In the corresponding period in FY24, forward looking charges as well as a one-off credit impairment overlay and intangible assets impairment charges were recorded.
That year, the group recorded a one-off charge of RM520.2 million (RM402.5 million, net of corporate tax) comprising additional credit impairment overlay of RM328.2 million, impairment of intangible assets of RM111.9 million and RM80.0 million for restructuring expenses.
On its prospects, Ling said the geopolitical tensions have heightened following the US reciprocal tariffs. This has caused significant volatilities in the financial markets globally.
While trade negotiations are ongoing between the US and other nations, it remains uncertain how quickly these negotiations can be concluded, he added.
"Coupled with new conflicts emerging in South Asia, these combined uncertainties will inevitably impact business and consumer confidence, translating into potentially slower economic growth.
"Against this economic backdrop, the group will continue to proactively manage our risk profiles and capitalise on the opportunities we see," Ling said.
