AMMB Holdings (AMBANK) Q2 2025 earnings summary

Executive summary

• PATMI rose 18% YoY to RM1,001 million for H1FY25, with ROE at 10.1% and ROA at 1.02%.

• Net interest income increased 7% YoY, driven by a 14bps NIM expansion to 1.93%.

• Impairment charges dropped 72% YoY, supporting profitability.

• Interim dividend per share increased 72% YoY to 10.3 sen, with a payout ratio of 34%.

Financial highlights

• Total income grew 3% YoY to RM2,407 million; expenses rose 5% YoY, resulting in a CTI of 43.6%.

• Gross loans were flat YTD at RM134.5 billion; YoY growth was 3%, led by business banking (+17%).

• Customer deposits declined 4% YTD to RM136.3 billion; CASA ratio at 33.8%.

• CET1 ratio strengthened to 15.29% post-dividend, up from 13.04% at FY24.

• LCR at 143.5%, down from 164.6% at FY24.

Outlook and guidance

• Malaysia GDP growth forecast at 4.5%–5.0% for CY2024; inflation expected at 1.7%–1.9%.

• Loans growth projected at 5.0%–6.0% with stable asset quality and resilient liquidity/capital positions.

• OPR expected to remain at 3.00%.

• Management remains optimistic for FY25, citing Malaysia's improving economic prospects and ongoing execution of strategic plans.