AMMB Holdings (AMBANK) investor relations material

Executive summary

• Achieved record PATMI of RM2.1 billion for FY26, up 5% year-over-year, with ROE steady at 10.0% and ROA at 1.05%.

• Total income rose 5% to RM5,158 million, driven by 4% NII growth and 5% NOII growth, supported by loan growth and NIM expansion.

• Dividend per share increased 16% to 35.0 sen, with a payout ratio of 55%.

Financial highlights

• Net interest margin expanded 4bps year-over-year to 1.98% despite a 25bps OPR reduction.

• Gross loans grew 6% year-over-year to RM146.7 billion, led by Wholesale Banking (+12%) and Business Banking (+11%), while Retail Banking was flat.

• Customer deposits increased 4% to RM147.0 billion, with fixed deposits up 5% and CASA mix at 35.4%.

• Cost-to-income ratio was stable at 44.7% (FY25: 44.6%).

• Net impairment charges reduced to RM133.6 million, mainly due to higher writebacks and recoveries.

Outlook and guidance

• Malaysia GDP growth forecasted at 4.0%–4.5% for CY2026, with inflation at 1.8%–2.3%.

• Loans growth expected at 4.0%–5.0%, asset quality seen as stable, and OPR at 2.75%.

• Management anticipates more challenging operating conditions in FY27 due to global uncertainties, particularly from potential prolonged Middle East conflict impacting energy prices and supply chains.

• Liquidity and capital positions projected to remain resilient.