KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) recorded a 22.3 per cent rise in net profit to RM543.4 million for the third quarter ended Dec 31, 2023 from RM444.2 million in the same period in 2022.
AmBank group's revenue, however, eased 5.8 per cent from RM1.22 billion to RM1.15 billion.
In its quarterly report, AmBank said its operating profit before impairment losses decreased primarily due to several factors such as the discontinued operation showing higher profits from the share in results of associates and joint ventures, particularly from general insurance.
Additionally, total operating expenses increased 5.4 per cent, driven by higher personnel and administration expenses, resulting in a deterioration of the cost-to-income ratio compared to the previous year.
AmBank also saw increased allowances for impairment on loans, advances and financing, as well as allowances for impairment on non-financial assets and financial investments.
There were provisions for restructuring expenses, although offset by lower writeback of provision for commitments and contingencies.
There was a higher writeback of impairment on other financial assets.
AmBank group chief executive officer Jamie Ling said Q3 was a resilient quarter, boosted by the one-off tax credit.
"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.
"As we are in the final year of our Focus 8 strategy, delivering an ROE (return on equity) of 10 per cent and the continued strengthening of the group's capital ratio positions us well into the future," he added.
AmBank is confident about its prospects for the financial year 2024, citing resilient domestic demand and anticipated improvements in external demand as key factors.
"The group remains committed in ensuring its FY21 to FY24 Focus 8 strategy ends on a high note by focusing on driving sustainable revenue growth, maintaining cost discipline, improving asset quality, ensuring healthy liquidity position and strengthening capital levels further," it added.