KUALA LUMPUR: AMMB Holdings Bhd's (AmBank Group) net profit rose 9.23 per cent to RM427.91 million for the fourth quarter ended March 31, 2023 from RM391.75 million a year ago, on the back of higher revenue.
Quarterly revenue was up 3.29 per cent to RM1.16 billion from RM1.12 billion previously, its filing to Bursa Malaysia showed.
As a result, the bank registered a higher earnings per share of 12.94 sen against 11.83 sen in 4Q22.
AmBank declared a final dividend of 12.3 sen per share for the financial year ended March 31, 2022 (FY2023), with a payment date to be determined and announced later.
This brings the total dividend for the year to 18.3 sen per share and a dividend payout ratio of 35 per cent.
For the full year, AmBank's net profit rose 16 per cent to RM1.74 billion from RM1.5 billion a year ago, while revenue increased to RM4.74 billion from RM4.67 billion previously.
AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir said with a healthy gross domestic product (GDP) growth of 8.7 per cent in 2022, Malaysia's economy was on strong rebound.
"This recovery was fuelled by an upswing in private consumption, a rejuvenated labour market, higher external demand from our key trading partners, and a steady influx of foreign investments.
"The banking sector is perfectly positioned to leverage the advantage of this strengthening economy," he said in a separate statement.
Sulaiman said AmBank's FY23 was wrapped up on a high note, marked by a robust profit after taxation and minority interests (PATMI), underscored by significant contributions from the majority of its key business divisions.
He said importantly, the group had met and surpassed the ambitious goals it set at the start of the year, including achieving a return on equity (ROE) of 10 per cent, fortifying its balance sheet, and paying out a much-improved dividend payout ratio to reward its valued shareholders.
On its outlook, Sulaiman said the bank remained optimistic, while acutely aware of the potential external challenges such as the volatility in the global growth trajectory and heightening geopolitical tensions.
He noted that the robust domestic demand, the labour market resurgence, the steady execution of multi-year investment projects, and the anticipated increase in tourism activities experienced in FY23 should continue to buoy the group in FY24, albeit potentially at a more measured pace.
"As we near the culmination of our ambitious Focus 8 strategy, I am pleased to say we have made considerable progress in terms of strengthening our ROE, sharpening our targeted segment strategy, nurturing our capital-light revenues and weaving environmental, social, and governance (ESG) considerations into the fabric of our operations," he said.
Moving forward, Sulaiman said AmBank's resolve remained unshaken as its primary goal continued to be the maximisation of value for its stakeholders and shareholders.
"We plan to do this through the delivery of robust financial results, continued strengthening of our capital reserves, regular evaluations of our non-core assets, and the diligent management of our costs," he added.