KUALA LUMPUR, Nov 30 — AMMB Holdings Bhd (AmBank Group) posted a solid net profit of RM435.40 million in the second quarter ended September 30, 2022 (Q2 FY2023), on the back of a rebound in the economy post-pandemic.

It recorded revenue of RM1.18 billion.

This compared with a net profit of RM321.04 million and revenue of RM1.12 billion in the same quarter last year, it said in a filing with Bursa Malaysia.

AmBank said for the first half of the fiscal year 2023 (H1 FY2023), the group recorded a net profit of RM854.60 million from RM707.64 million, while revenue declined slightly to RM2.35 billion from RM2.36 billion previously.

In a separate statement, the group said its revenue performance in the first half was driven by a 10.4 per cent increase in net interest income to RM1.79 billion, on the back of higher loan growth and net interest margin (NIM) expansion.

"This was offset by an RM181.3 million reduction in non-interest income due to the disposal of AmGeneral Holdings Bhd (AmGen) to Liberty Insurance Bhd (LIB) and lower fee income from Investment Banking and Wealth Management,” it said.

AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir said its top-line and bottom-line results were a clear reflection of its efforts to strengthen market share while managing its asset quality.

"Despite headwinds, we have been able to register strong results due to our solid fundamentals,” he said.

In addition, the group also recorded a one-time disposal loss of RM49.7 million, after the deduction of net assets disposed including goodwill, impairment of AmGen intangibles, and transaction expenses.

It received RM286.9 million in cash which improved Common Equity Tier 1 by 0.25 per cent and also retained a 30 per cent equity interest in the combined businesses of AmGen and LIB valued at RM958.2 million.

Overall expenses increased by 3.9 per cent year-on-year (Y-o-Y) to RM1.05 billion, with the cost-to-income ratio was higher at 44.6 per cent compared to 42.7 per cent in the previous year.

Annualised return on equity for H1 FY2023 increased to 10.0 per cent from 9.0 per cent in the same period last year.

AmBank said gross loans and financing increased by 3.6 per cent, or RM4.4 billion, year-to-date to RM124.4 billion, with diversified growth seen across its business segments.

The group also declared an interim dividend of six sen per share.

Sulaiman said the group is encouraged by the strong economic activities as well as the influx of foreign investments and stronger domestic and foreign demand.

"We foresee these factors supporting the growth momentum of our economy well into 2023,” he said. — Bernama