The country’s largest financial institution booked a net impairment charge of RM1.16 billion, up from RM567.2 million in the same quarter last year.

This led to its net profit easing to RM1.85 billion from RM1.96 billion previously, the bank said in a statement today.

The bank said it had been prudent in managing its overhead costs, which grew at a “moderate pace” of 4.6% year-on-year (y-o-y). The increase is attributed to higher personnel expenses of RM67.6 million, higher establishment costs of RM43.1 million and higher administration and general expenses of RM19.8 million.

Revenue for the quarter ended June 30 also declined to RM11.2 billion versus RM11.33 billion previously.

Chairman Zamzamzairani Isa said despite global market volatility, the group continued to deliver a commendable performance with top line growth as momentum picked up following the resumption of economic activity.

“Given that the immediate outlook remains clouded by economic and geopolitical uncertainties, we will focus on remaining agile to tap into the growth opportunities that emerge, while managing our risks carefully,” he said.

The group’s net interest income and Islamic banking income in Q2 2022 increased 6.2% y-o-y to RM5.2 billion, while other operating income decreased by RM783.2 million to RM366.9 million.

For the first half-year ended June 30 (H1 2022), net profit stood at RM3.9 billion against RM4.35 billion for the same period last year, while revenue was RM23.12 billion versus RM23.55 billion previously.

Meanwhile, its board of directors has declared a single-tier first interim dividend of 28 sen per share, comprising a cash portion of 21 sen and an electable portion of seven sen per share under the group’s dividend reinvestment plan.

This translates into a total payout of RM3.35 billion to shareholders, constituting 85.9% of its net profit for the half-year.