Results Announcement Date: 25 February 2025 (Closing Share Price: RM6.54)
Net Profit was up 8.9% against pcp on the back of lower impairments and slightly higher Net Interest Income. Overall expenses grew 5.6% YoY to RM1,712.8 million due to higher personnel costs. Net Loans were up 4.3% from 31/12/25.

For the 9 month period from 1/4/25 to 31/12/25, Customer deposits grew 1.5% to RM143.7 billion, mainly driven by Time deposits. At the same time, CASA Deposits decreased 5.5% RM48.2 billion. As at 31/12/26, these deposits comprised make up 33.6% of AMMB’s loan book. Net impairment charges amounted to RM109.1 million compared to RM95.1 mil for 9MFY25, mainly due to higher provisions in Business Banking (with an overlay provision of RM99.3 million taken in the SME portfolio). This was partially offset by higher writeback of provision in Wholesale Banking and higher recoveries of RM50.7 million mainly from a retail debt sale.

Management targets were broadly maintained:

• Management increased credit cost guidance from 20-30bps previously to 21-25bps.
• Loan growth in line with GDP growth.
  Stable Net Interest Margin.
• ROE target of around 10%.

Based on this, expected FY2026 Net Profit works out to be around RM2.1 to 2.2 billion or EPS of around 64 sen per share which means Q4FY26 Net Profit is expected to be around RM550 mil. AMMB remains committed to double its DPS by FY29.

CIR was 45.4% for 9MFY25, still well short of Ambank’s 40% target under its WT29 (Winning Together) Strategy, while ROE is still below its 11-12% target.