AMMB sees better full-year results

: AMMB Holdings Bhd, which posted 5% higher net profit for the second quarter ended Sept 30, expects its profitability for the ending March 31, 2019 (FY19) to surpass FY18’s due to a lower base last year.

Group CFO Jamie Ling is confident that its profit for the second half of FY19 (2H19) will be higher than 2H18, as 2H18’s profit was dragged down mainly by a Mutual Separation Scheme cost.

“The profits for the final two quarters of last year were much lower, therefore our 2H19 outlook for profitability will definitely be higher,” he told a media conference after announcing its 1H financial results today.

On a full-year basis, Ling said the group’s net profit in FY19 will exceed FY18’s net profit of RM1.13 billion as 1H19’s net profit had achieved almost RM700 million.

Group CEO Datuk Sulaiman Mohd Tahir said AMMB, which is targeting a growth of 6% for FY19, expects 2H19 growth to come in at 6.5%-7% after registering 4% in 1H19.

Sulaiman said the group sees growth for loans in the mid corp, retail SME and business segments, while aiming to grow its topline from a broad-based strategy and gaining .

“We’re trying to build a more resilient balance sheet coming from various segments, that will give us the margins and profitability,” said Sulaiman.

He said as part of its BET300 initiative, AMMB is targeting a RM100 million cost savings for FY19. On the other hand, the group has an investment allocation of RM165 million for FY19 for growth (35%), compliance (31%), productivity (18%) and infrastructure (16%).

AMMB’s net profit for the second quarter ended Sept 30 grew 5% to RM348.15 million from RM331.47 million a year ago mainly boosted by higher net interest income (NII), while revenue rose 8.9% to RM2.31 billion compared with RM2.13 billion in the previous year’s corresponding quarter.

For the six months period, AMMB’s net profit jumped 5.5% to RM695.75 million from RM659.74 million a year ago underpinned by an increase in NII, higher Islamic banking income, share in results of associates and joint ventures, as revenue increased 6.6% to RM4.49 billion compared with RM4.21 billion in the previous year. It declared an interim dividend of 5 sen per share.

Source: The Sun Daily

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