Ambank net profit up 33% to RM1.5 bil

Ambank envisages a loan growth of 4.6% in FY20 in tandem with the nation’s projected GDP growth at 4.5%.

KUALA LUMPUR: Ambank Group recorded an after-tax profit of RM1.5 billion for the financial year ended March 31, 2019 (FY19), on the back of revenue of RM3.9 billion.

The strong set of results was buoyed by stronger than industry loan growth numbers.

Announcing the results here today, group chief executive officer Sulaiman Mohd Tahir said the bank’s transformation strategy was beginning to reap dividends.

“We achieved commendable results for FY19, ending the year on a strong note with a 33% increase in net profit. This demonstrates that our transformation strategy is bearing fruit and generating value for the group,” said Sulaiman.

Net interest income grew by 3.9% underpinned by good balance sheet growth as both loans and deposits outpaced the industry’s growth.

The banking group was also successful in bringing down its Cost to Income ratio to 54.3% from over 60% the previous year. The company said it planned to bring down the Cost to Income ratio to 52.5% for FY20.

Ambank recorded a net recovery of RM303.8 million in FY19 compared with an impaired charge of RM15.7 million, aided by several large corporate recoveries and the sale of retail non-performing loans.

Gross impaired loans ratio improved 11 basis points to 1.59% and loan loss cover rose to 114%, indicating that the banking group’s asset quality remains robust.

Sulaiman said for FY20, the banking group envisaged a loan growth of 4.6% in tandem with projected GDP growth for the nation at 4.5%.