KUALA LUMPUR (May 29): AMMB Holdings Bhd (AmBank Group) saw its net profit rise 9.23% to RM427.91 million in its fourth financial quarter ended March 31, 2023 (4QFY2023), from RM391.75 million a year ago, due to increase in the group’s fund based income from interest bearing assets and increase in the non-interest income.

This resulted in higher earnings per share of 12.94 sen for 4QFY2023 compared with 11.83 sen for 4QFY2022. Quarterly revenue was up 3.29% to RM1.16 billion, from RM1.12 billion in 4QFY2022.

The group also declared a final dividend of 12.3 sen per share for the financial year ended March 31, 2023 (FY2023), with a payment date to be announced later.

This brings the total dividend for the year to 18.3 sen per share and a dividend payout ratio of 35%.

For the full year of FY2023, its net profit was 15.47% higher at RM1.74 billion compared with RM1.5 billion in FY2022, while revenue grew 1.56% to RM4.74 billion from RM4.67 billion.

According to AmBank’s statement on Monday (May 29), the group said total income in FY2023 increased mainly due to an 8.1% increase in net interest income on the back of stronger and broad-based loans growth of 8.5%, which was partially offset by a 13.9% decrease in non-interest income mainly from the disposal of AmGeneral Insurance Bhd.

“Stronger income growth in wholesale banking offset lower fee-based income from investment banking and retail wealth management.

“Continuing operations reported a 12.4% year-on-year (y-o-y) growth in total income, driven by an 11% increase in net-interest income and 16.9% increase in non-interest income,” it said.

AmBank said gross impaired loans ratio in FY2023 increased marginally to 1.46% (FY2022: 1.40%) with loan loss coverage ratio (including regulatory reserves) at 127.7% (FY2022: 139.2%). It added that net assets per share rose 8.3% to RM5.48 in FY2023 from RM5.06 in FY2022.

“Gross loans and financing grew from RM120 billion in FY2022 to RM130.2 billion, marking an 8.5% increase in FY2023,” the bank said.

“Customer deposits increased 6.3% to RM130.3 billion, primarily fuelled by current account and savings account (Casa) balances which grew by 13.2% to RM48.8 billion, with a Casa mix of 37.4% (FY2022: 35.2%). [Meanwhile], time deposits grew 2.6% to RM81.5 billion.”

AmBank group chief executive officer Datuk Sulaiman Mohd Tahir said the group’s FY2023 wrapped up on a high note underscored by significant contributions from the majority of its key business divisions.

“Importantly, we have met and surpassed the ambitious goals we set at the start of the year, including achieving a return on equity of 10%, fortifying our balance sheet, and paying out a much-improved dividend payout ratio to reward our valued shareholders,” he said.

Moving forward, Sulaiman said AmBank remained optimistic while acutely aware of the potential external challenges, such as the volatility in the global growth trajectory and heightened geopolitical tensions.

“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 FY2023 should continue to buoy us in FY2024, albeit potentially at a more measured pace,” he said.

At Monday’s noon break, AmBank's share price settled higher by a sen or 0.29% at RM3.50, valuing the group at RM11.6 billion.