KUALA LUMPUR (Aug 18): AMMB Holdings Bhd's (KL:AMBANK) net profit came in higher at RM520.23 million in the first quarter ended June 30, 2026 (1QFY2027), up marginally from RM516.18 million a year ago. The banking group attributes the slightly higher earnings to net interest income growth.

Earnings per share was up slightly to 15.73 sen compared with 15.64 sen a year ago, according to a bourse filing on Tuesday.

AMMB, the country's sixth largest banking group by assets, did not declare any dividends during the quarter under review.

Revenue, or net income, edged up 2.8% to RM1.33 billion from a year ago as net interest income grew 4.3% year-on-year to RM644.3 billion.

AMMB’s net impairment charges fell slightly by 3.6% to RM69.8 million, driven by higher overlay reversals in retail banking. This was partially offset by an additional overlay provision of RM52.5 million for exposures deemed vulnerable to sustained geopolitical tensions, alongside higher provisions in wholesale banking and lower recoveries.

As at June 30, 2026, AMMB’s total gross loans, advances and financing stood at RM147.83 billion, up 0.78% from RM146.69 billion a year earlier. The growth was broad-based across wholesale banking, business banking and retail banking.

Total customer deposits fell nearly 2% to RM144.1 billion from RM147 billion a year earlier, albeit the 2.4% increase in time deposits.

Meanwhile, AMMB’s common equity tier 1 (CET1) capital ratio, a measure of the bank’s core capital strength, was maintained at 14.82% as at end-June.

“The Middle East conflict remains unresolved and a source of continued uncertainty globally,” AMMB chief executive Jamie Ling said in a statement.

“However, we are focused on delivering our plans in the quarters ahead,” he added.

Looking ahead, the group said the artificial intelligence-driven upcycle is expected to support business loan demand, particularly among domestic firms and small and medium enterprises (SMEs) in the electrical and electronics supply chain, through higher working capital and trade financing needs.

“Nevertheless, renewed and sustained Middle East geopolitical tensions remain a key downside risk, as potential supply-chain and logistics disruptions could pressure business margins, especially for SMEs and fuel-intensive sectors,” AMMB said.

AMMB noted that its strong domestic focus helped cushion external headwinds, while it continued to prudently set aside overlay provisions for accounts potentially vulnerable to geopolitical tensions and closely monitored evolving developments.

At Tuesday’s noon break, shares of AMMB slipped one sen or 0.14% to RM7.19, giving it a market capitalisation of RM23.8 billion. The banking stock has climbed nearly 32% over the past 12 months.