Kuala Lumpur: AMMB Holdings Bhd (AmBank Group) announced a significant 7.1 per cent rise in its net profit, reaching RM2.0 billion for the financial year ending March 31, 2025 (FY2025), up from RM1.87 billion the previous year. Revenue also saw an improvement, climbing to RM4.93 billion from RM4.65 billion in the prior financial year.

According to BERNAMA News Agency, AmBank Group’s filing with Bursa Malaysia revealed an 8.0 per cent year-on-year (y-o-y) growth in net interest income, totaling RM3.56 billion. This growth was primarily attributed to a 15-basis-point expansion in the net interest margin to 1.94 per cent, alongside a 3.5 per cent y-o-y increase in loans and financing.

Non-interest income experienced a modest 1.3 per cent rise y-o-y, reaching RM1.35 billion. This increase was driven by higher fee income from sectors such as business banking, retail wealth management, funds, stockbroking, private banking, and equity capital markets. The insurance business also performed strongly, although these gains were partly offset by reduced trading profits from the group treasury and markets.

The group’s overall expenses rose by 7.1 per cent y-o-y to RM2.19 billion, primarily due to increased personnel and computerisation costs, resulting in a cost-to-income ratio of 44.6 per cent.

For the fourth quarter ending March 31, 2025 (4Q 2025), AmBank Group reported a net profit increase to RM513.93 million, up from RM476.54 million in the same quarter the previous year. Revenue for the quarter rose to RM1.28 billion from RM1.17 billion.

The group declared a final dividend of 19.9 sen per share in 4Q 2025. Including the interim dividend of 10.3 sen per share declared in 2Q 2025, total dividends for FY2025 amounted to 30.2 sen per share, marking a 34 per cent y-o-y increase, with a dividend payout ratio of 50 per cent.

AmBank Group highlighted that industry-wide outstanding loans grew by an average of 5.4 per cent y-o-y in 1Q 2025, with household loans expanding by 6.0 per cent on average, and non-household loans increasing by 4.5 per cent. The banking system continues to demonstrate robust capitalisation and liquidity, as indicated by a liquidity coverage ratio of 151.6 per cent in March.

The loan-to-fund ratio and loan-to-fund-and-equity ratio were stable at 83.8 per cent and 72.9 per cent, respectively. The group anticipates a potential 25bps rate cut to 2.75 per cent in the second half of FY2025, potentially aligning with the next Monetary Policy Committee meeting on July 9, 2025, amid increased risks from US trade policy changes. However, it cautioned that any rate cut should not be viewed as the start of an aggressive easing cycle, emphasizing that Bank Negara Malaysia is likely to maintain a cautious approach to monetary policy to ensure currency and financial market stability.