KUCHING: AmBank Group on today (Dec 1) announced its financial results for the period ended Sept 30, 2022 (H1FY23).
The group’s net profit after tax and minority interests (PATMI) grew 20.8 per cent YoY (Year on Year) to RM854.6mil.
The group delivered a total income of RM2,346.5mil. NII grew by 10.4 per cent YoY driven by assets growth while NIM was higher at 2.17 per cent (H1FY22: 2.05 per cent).
NoII declined by 24.5 per cent YoY or RM181.3mil due to the disposal of AmGen and lower fee income from Investment Banking and Wealth Management.
“Our top-line and bottom-line results are a clear reflection of our efforts to strengthen market share while managing our asset quality. Despite headwinds, we have been able to register strong results due to our solid fundamentals,” AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir said.
Meanwhile, the group recorded a one-time disposal loss of RM49.7mil, after deduction of net assets disposed, including goodwill, impairment of AmGen intangibles and transaction expenses.
The group received RM286.9mil in cash, which improved CET1 by 0.25 per cent and also retained a 30 per cent equity interest in the combined businesses of AmGen and LIB valued at RM958.2mil.
Overall expenses increased by 3.9 per cent YoY to RM1,047.5mil, with CTI higher at 44.6 per cent compared to 42.7 per cent in the previous year. However, expenses have remained flat YoY after adjusting for the reversal of excess bonus accruals from the previous year.
PBP of RM1,299.0mil was achieved, while PATMI was up 20.8 per cent YoY to RM854.6mil. Annualised ROE for H1FY23 increased to 10.0 per cent from 9.0 per cent in the same period last year.
The group recorded a lower impairment charge of RM266.9mil in H1FY23 (inclusive of a RM116.0mil impairment of the Kurnia brand, agent relationship and other assets of AmGen), compared to RM377.1mil charge in the previous year.
Total overlay reserves carried forward stood at RM424.4mil (FY22: RM393.8mil), with RM30.7mil overlay (H1FY22: RM154.9mil) taken for corporate exposures.
GIL ratio stood at 1.52 per cent (FY22: 1.40 per cent), with LLC of 122.6 per cent from 139.2 per cent in FY22. While the uptick seen in Retail GIL was within expectations, the group continued to take proactive collection measures to manage delinquent accounts as well as undertaking the necessary restructuring and rescheduling exercise for qualified customers.
Gross loans and financing increased by 3.6 per cent or RM4.4bil YTD to RM124.4bil, with diversified growth seen across our business segments.
Loans in Wholesale Banking grew RM1.7bil (+5.6 per cent), Business Banking RM0.6bil (+3.2 per cent) and Retail Banking grew RM1.9bil (+2.7 per cent).
Deposits from customers stood at RM121.0bil. Time deposits increased 2.1 per cent YTD while CASA balances saw a 7.6 per cent reduction to RM39.8bil mainly driven by the reduction in Wholesale Banking.
Consequently, CASA mix was lower at 32.9 per cent (FY22: 35.2 per cent). The group remains highly liquid, with a liquidity coverage ratio (LCR) of 142.7 per cent as of Sept 30, 2022.
FHC CET1 stood at 12.57 per cent (FY22: 12.20 per cent) and Total Capital Ratio at 15.79 per cent (FY22:15.32 per cent). Excluding Transitional Arrangement, the FHC CET1 ratio was 12.17 per cent (FY22: 11.65 per cent) while the Total Capital Ratio was 15.63 per cent (FY22: 15.18 per cent).
With capital ratios restored to pre-settlement levels, the group has resumed a sustainable dividend payout that is aligned with our historical payout ratio. To this end, the group has proposed an interim dividend of 6.0 sen per share, which translates to a dividend payout ratio of 23 per cent.
