KUALA LUMPUR: AMMB Holdings Bhd's (AmBank) net profit increased 35.3 per cent to RM321.04 million in the second quarter (Q2) ended September 30, 2021, from RM237.32 million recorded in the same quarter a year ago.
Revenue in Q2 eased 2.9 per cent to RM1.12 billion from RM1.15 billion.
AmBank group chief executive officer Datuk Sulaiman Mohd Tahir said amid a very challenging and volatile economic environment, the banking group made good progress.
Sulaiman said Ambank was able to retain tight control on costs, which led to our cost to income (CTI) ratio improving further to 42.7 per cent.
He added that the banking group's net credit cost for the first half (1H) of the financial year 2022 (FY22) stood at 61 basis points (bps) with net provisions one per cent lower year-on-year.
Besides that, he said Ambank is clear about the importance of financial institutions joining the effort to support the government in easing the financial burden of those affected by the pandemic.
"From the ongoing Pemulih relief programme to the latest Financial Management and Resilience Program (URUS), AmBank will continue to assist our customers in determining the financial assistance they require in a targeted and sustainable manner.
"While we have assessed the potential impact of URUS to our second-half earnings to be manageable, we continue to set aside pre-emptive provisions against certain loan portfolios, bringing our total overlay reserves to RM900 million.
"We continue to be prudent and proactive in managing risks, and the banking group remains sufficiently capitalised and highly liquid," he said in a statement today.
For the six months, AmBank's net profit grew 17.5 per cent to RM707.64 million from RM602.48 million, while revenue increased 4.9 per cent to RM2.36 billion from RM2.25 billion.
Sulaiman said moving forward, in line with the banking group's Focus 8 strategy, AmBank will continue to explore new avenues for growth while it preserves the long-term interest of its stakeholders through the strengthening of its balance sheet.
"Indeed, the nation is moving closer to economic recovery with more and more businesses resuming and sectors opening up given the strengthened effectiveness of pandemic control measures and the pace of vaccine administration.
"Beyond the provision of financial relief to customers in need, we are also conscious of the need to play a part in the nation's economic revitalisation.
"Ambankcontinues to contribute in this regard via strategic programmes that provide SMEs with financing as well as solutions beyond financing, including providing avenues for SMEs to adopt digitalisation measures to propel their businesses," he added.