KUALA LUMPUR: AMMB Holdings Bhd posted a net profit of RM349.88 million in the third quarter ended December 2018, a 59.8 per cent increase from RM218.98 million in the same period in 2017 supported by higher lending volume, lower cost base and increase in recoveries.
Revenue also increased in the quarter to RM2.30 billion from RM2.16 billion in the corresponding period in the preceding year.
For the nine-month period ended December 2018, the bank recorded a 19 per cent increase in net profit to RM1.05 billion from RM878.72 million in 2017.
AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir said the results demonstrate strategies which have been put in place over the last couple of years are bearing fruits on its bottom line and businesses.
“This is against a backdrop of slower economic growth and heightened markets volatility,” he said in a statement.
Sulaiman expects a loan growth of about 4.9 per cent for the banking industry in 2019.
“The outlook for Malaysia remains positive, with full year gross domestic product growth for 2019 projected at 4.5 per cent to 4.8 per cent.
“Inflation and unemployment levels are also expected to remain moderate. Hence, this should underpin a loans growth of about 4.9 per cent for the banking industry in 2019,” he said.
The bank’s income grew two per cent for the nine-month period to RM2.97 billion underpinned by a 5.9 per cent increase in net interest income. Net interest margin stood at 1.93 per cent.
Expenses reduced by 9.5 per cent to RM1.5 billion driven by business efficiency initiatives while cost-to-income ratio improved to 51.6 per cent from 58.2 per cent a year ago.