AMMB Holdings (AMBANK) Q2 2026 earnings summary

Executive summary

• Achieved record PATMI of RM1.05 billion for H1FY26, up 5% YoY, with annualised ROE at 10.1% and interim dividend up 21% to 12.5 sen per share.

• Total income rose 7.3% YoY to RM2.58b, driven by higher NII, NIM expansion, and increased non-interest income.

• Profit before tax increased 4.3% YoY to RM1,354.7 million, with profit before provisions up 7% YoY.

• Net interest income grew 5% YoY, supported by a 7-bps NIM expansion to 1.99% due to lower cost of funds.

• Non-interest income grew 13% YoY, mainly from trading gains and insurance income, partially offset by lower fee income.

Financial highlights

• Expenses increased 8% YoY to RM1.13b, mainly from higher personnel and technology costs; CTI ratio stable at 43.8%.

• Net impairment charges rose to RM96.2m, mainly due to higher overlays in SME portfolio.

• Gross loans grew 4.5% YoY to RM140.5b, led by Wholesale and Business Banking; customer deposits up 2.7% YoY to RM140.0b.

• Customer deposits declined 1% YTD; CASA mix at 34.5%.

• GIL ratio increased to 1.75% (from 1.54% FY25); loan loss coverage at 100.4% (incl. regulatory reserves).

• Annualised ROA at 1.06% (up from 1.02% YoY); basic EPS up 5.1% YoY to 31.79 sen.

Outlook and guidance

• GDP growth for Malaysia projected at 4.2%–4.7% in CY2025; inflation at 1.3%–1.7%.

• Banking sector loans expected to grow 5%–6% in 2025; asset quality seen as stable.

• OPR reduced to 2.75% in July 2025; USD/MYR expected at 4.13–4.18.

• Liquidity and capital positions remain resilient.

• Management remains confident in growth prospects despite macro and geopolitical challenges.