AMMB Holdings (AMBANK) Q1 2026 earnings summary

Executive summary

• Q1FY26 delivered PATMI of RM516.2 million, up 3.2% year-over-year, with 10% income growth and NIM expansion to 2.01% from 1.89% last year.

• Net income rose 9.5% year-over-year to RM1,290.7 million, driven by higher net interest income, margin expansion, and strong non-interest income growth.

• ROE annualized at 10.0% and ROA at 1.05%, with positive operating leverage and lower cost-to-income ratio (CTI) at 43.7%.

• Balance sheet remains strong with CET1 at 14.90% and TCR at 17.68%, and ample liquidity.

Financial highlights

• Total income rose 10% year-over-year to RM1,291 million, driven by 7% NII growth and 15% increase in non-interest income.

• Net interest income grew 7.4% year-over-year to RM924.7 million, with NIM expanding by 12 bps to 2.01%.

• Expenses increased 8% year-over-year, mainly due to higher personnel costs, but positive JAWS of 2% achieved and CTI improved to 43.7%.

• Net impairment charge increased to RM72.4 million from RM12 million last year, mainly due to higher Stage 3 provisions and lower writebacks.

• Gross loans grew 4% year-over-year to RM138.2 billion, with business banking up 12% and wholesale banking up 10%.

• Customer deposits at RM138.0 billion, with CASA mix at 34.0%.

Outlook and guidance

• GDP growth for Malaysia projected at 3.5% to 4.5% for CY2025, with inflation at 1.8% to 2.3%.

• Banking sector loans expected to grow 5.0% to 6.0%, with stable asset quality and resilient liquidity and capital positions.

• OPR expected at 2.75%, and USD/MYR exchange rate forecasted between 4.20 and 4.40.

• Management expects some near-term NIM pressure from OPR reduction but remains confident in economic resilience despite new US tariffs on Malaysian exports.