KUALA LUMPUR: AMMB Holdings Bhd posted a higher net profit of RM543.41 million in the third quarter ended Dec 31, 2023 (Q3’24) compared with RM444.21 million in the same quarter of 2022, boosted by a one-off tax credit.
Revenue fell to RM1.15 billion during the quarter under review versus RM1.22 billion previously, the banking group said in a Bursa Malaysia filing today.
For the cumulative nine-month period, AMMB’s net profit rose to RM1.39 billion versus RM1.28 billion over the same period a year ago while revenue decreased to RM3.48 billion from RM3.55 billion previously.
In a separate statement, AMMB said total income was marginally lower at RM3.48 billion in the nine months of FY2024, with income from continuing operations largely unchanged at RM3.43 billion.
Net interest margin (NIM) for 9M’24 was lower at 1.79% year-on-year (y-o-y) due to a rise in funding cost as deposits repriced upwards following a series of rises in the overnight policy rate (OPR) to 3% as at Dec 31, 2023 from 2% as at June 30, 2022.
AMMB said it also recognised a one-off tax credit worth RM537.6 million this quarter.
With the one-off tax credit of RM537.6 million recognised, the effect of the one-off items for this quarter was a RM135.1 million net benefit to profit-after-tax and minority interests, it said.
“We have taken additional prudent overlays to improve the group’s loan loss coverage levels, particularly when the various pandemic-related loan repayment schemes end,” said group CEO Jamie Ling.
“We are in the final year of our Focus 8 strategy, delivering a return on investment (ROE) of 10%, and the continued strengthening of the group’s capital ratio positions us well into the future,” Ling said. – Bernama