“Meanwhile, revenue fell to almost 6% to RM1.15 billion during the quarter under review versus RM1.22 billion previously,” the banking group said in a Bursa Malaysia filing.
For the cumulative nine-month period, AMMB’s net profit rose 8.6% to RM1.39 billion versus RM1.28 billion over the same period a year ago while revenue decreased almost 2% to RM3.48 billion from RM3.55 billion previously.
In a separate statement, AMMB said total income was marginally lower at RM3.48 billion in the nine months of FY2024, with income from continuing operations largely unchanged at RM3.43 billion.
Net interest margin (NIM) for M9 FY2024 was lower at 1.79% year-on-year (y-o-y) due to a rise in funding cost as deposits repriced upwards following a series of rises in the overnight policy rate (OPR) to 3% as at Dec 31, 2023 from 2% as at June 30, 2022.
AMMB said it also recognised a one-off tax credit worth RM537.6 million this quarter.
With the one-off tax credit of RM537.6 million recognised, the effect of the one-off items for this quarter was a RM135.1 million net benefit to profit-after-tax and minority interests (Patami), it said.
“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.
“We are in the final year of our ‘Focus 8’ strategy, delivering a return on investment of 10%, and the continued strengthening of the group’s capital ratio positions us well into the future,” said group CEO Jamie Ling.
The group’s overall loan loss coverage, excluding regulatory reserves, rose to 110.7% in Q3 FY2024 from 96.2% in the previous quarter.
Gross loans and financing grew marginally year-to-date (YTD) to RM131.3 billion with a 4% y-o-y growth while customer deposits grew by 4.3% YTD to RM135.9 billion.
The group said it maintains an optimistic stance on its FY2024 prospects supported by resilient domestic demand and the expected recovery in external demand.
“Pragmatic implementation of Budget 2024 will provide additional impetus to economic activity,” it said.
“The group remains committed to ensuring its FY2021 to FY2024 ‘Focus 8’ strategy ends on a high note by focussing on driving sustainable revenue growth, maintaining cost discipline, improving asset quality, ensuring healthy liquidity position, and strengthening capital levels further,” it added.
As at 3.50pm, AMMB’s share price was down four sen or 0.92% at RM4.31, giving it a market capitalisation of RM14.28 billion.