KUALA LUMPUR (May 28): AMMB Holdings Bhd (KL:AMBANK) raised its dividend payout as earnings hit a new record high in the recently-ended financial year driven by both interest and non-interest income.

Net profit at Malaysia’s sixth-largest banking group by asset was RM2.1 billion for the 12 months ended March 31, 2026 (FY2026) compared to RM2.0 billion a year earlier. Net interest income rose 4.5%, backed by higher margin, while non-interest income grew 5.1% mainly from trading gains.

AMMB declared a final dividend per share of 22.5 sen, bringing total dividend for FY2026 to 35.0 sen per share, representing a higher payout ratio of 55% of its net profit versus 50% in FY2025, according to its bourse filing on Thursday.

“We are prepared for more challenging operating conditions ahead,” AMMB chief executive Jamie Ling said in a statement. “However, we start from a position of strength and remain responsive to support our customers.”

For FY2026, the bank recorded a return on equity of 10% in line with its guidance to analysts.

Net interest margin, which measures the difference between the interest earned on loans and the interest paid out to depositors, expanded four basis points to 1.98%. Gross loans, advances and financing grew 5.6%, while customer deposits expanded 3.9%.

In terms of asset quality, gross impaired loans ratio — which measures unrecoverable loans as a percentage of total loans — edged up to 1.59% from 1.54% a year earlier.

Impairment fell 7% as writeback in the wholesale banking segment and a RM50.7 million recovery from a retail debt sale offset higher expected credit loss charges and provisions in business banking.

Meanwhile, the bank’s common equity tier 1 capital ratio, a measure of financial strength based on the highest quality capital, remained unchanged at 14.82% post-dividend at the end of the financial year.

For the fourth quarter ended March 31, 2026 (4QFY2026), net profit rose 1.3% to RM520.5 million from RM513.9 million a year earlier. Year-on-year, net interest income for the quarter rose nearly 5% to RM937 million while non-interest income fell 7% to RM359 million.

Shares of AMMB rose five sen or 0.8% to RM6.61 ahead of the results announcement on Thursday, valuing the company at a little under RM22 billion.