AMMB Holdings (AMBANK) Q1 2025 earnings summary

Executive summary

• PATMI rose 32.2% YoY to RM500.2 million, with improved NIM and lower impairment charges.

• ROE increased to 10.2% (from 8.3% YoY), and ROA to 1.02% (from 0.83% YoY).

• Income from continuing operations grew 2.4% YoY, while total income declined 2% due to non-repeat of divestment gains.

• Capital and liquidity positions strengthened, with CET1 at 13.24% and LCR at 167.9%.

Financial highlights

• Net interest income increased 6.4% YoY to RM861m, driven by NIM improvement to 1.89%.

• Non-interest income fell 19.2% YoY due to lower trading and securities gains and absence of divestment gain.

• Expenses rose 2.5% YoY to RM520.6 million, mainly from salary inflation and IT costs; CTI ratio at 44.2%.

• Net impairment charges dropped significantly to RM12.3 million, reflecting lower provisions and write-backs.

• Gross loans grew 2.9% YoY to RM132.7b, but decreased 1.1% YTD.

Outlook and guidance

• Malaysia GDP growth forecast at 4.5%-5.0% for CY2024; inflation expected at 2.0%-3.0%.

• Banking sector loans growth projected at 5.0%-6.0%, with stable asset quality and resilient capital/liquidity.

• OPR expected to remain at 3.00%.

• Management remains optimistic for FY25, citing a strong start and ongoing execution of the WT29 strategy.