AMMB Holdings (AMBANK) Q4 2025 earnings summary

Executive summary

• Achieved record PATMI of RM2.0 billion for FY25, up 7% year-over-year, with total dividends of RM1.0 billion declared and a 34% increase in dividend payout, resulting in a 50% payout ratio.

• Net interest income rose 8% year-over-year, driven by a 15bps improvement in NIM to 1.94%; non-interest income grew 1% with broad-based fee income growth.

• Profit before tax increased 14.2% year-over-year to RM2,587.3 million, with a 48% jump excluding prior year one-off charges.

• Cost-to-income ratio was 44.6%, with higher personnel and computerisation costs; expenses increased 7% year-over-year.

• Asset quality improved: GIL ratio down to 1.54%, net credit cost reduced to 16bps, and loan loss coverage at 103.6%.

Financial highlights

• Total income grew 6% year-over-year to RM4,929 million; PBP up 5% to RM2,731 million; reported PBT up 48% to RM2,587 million.

• Net impairment charges fell 56% year-over-year to RM144 million, reflecting improved ECL flow rates and writebacks.

• ROE stable at 10.0%, ROA improved to 1.02% from 0.97%.

• Gross loans increased 4% year-over-year to RM138.9 billion, with strong growth in Business Banking (+12%) and Wholesale Banking (+7%), partially offset by Retail Banking (-2%).

• Customer deposits decreased 1% year-over-year to RM141.5 billion; CASA ratio at 36.0%.

Outlook and guidance

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

• Loans growth forecasted at 5.0% to 6.0% for the banking sector; asset quality expected to remain stable.

• Management highlights global market volatility due to geopolitical tensions and trade uncertainties; group will proactively manage risk and seek opportunities amid potential slower economic growth.