Highlight AMMB 4Q profit up 15% y-o-y at RM464m, full-year profit higher at RM1.78b

by **Cals** Wed 21 May 2014, 01:41

Highlight AMMB 4Q profit up 15% y-o-y at RM464m, full-year profit higher at RM1.78b

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 20 May 2014 13:33

KUALA LUMPUR (May 20): AMMB Holdings Bhd reported a 15% rise in fourth quarter net profit from a year earlier as net interest and Islamic banking income increased.

Provision write-back and lower bad-loan allowance had also supported bottom line growth, AMMB said in a statement to the exchange today.

AMMB said net profit rose to RM463.7 million in the fourth quarter ended March 31, 2014 (4QFY14) from RM404.8 million. Revenue climbed to RM2.39 billion from RM2.35 billion.

"The group reported a lower pre-tax profit of RM595.4 million for the fourth quarter ended 31 March 2014 as compared to RM615.1 million for the third quarter ended 31 December 2013. This was mainly due to lower net income from insurance business and other operating income by RM65.1 million and RM41.8 million.

"In addition, higher allowance for impairment on loans and financing and sundry receivables by RM29.0 million and RM9.7 million and higher acquisition and business-efficiency cost by RM11.0 million were reported for the reporting quarter as compared to previous quarter ended 31 December 2013," AMMB said.

AMMB's full-year net profit increased to RM1.78 billion from RM1.62 billion a year earlier. Revenue was higher at RM9.61 billion versus RM8.71 billion.

The group plans to pay a dividend of 16.9 sen for 4QFY14, bringing full-year payout to 24.1 sen.

Looking ahead, AMMB said wholesale deposit and loan growth would be driven by the implementation of projects under Malaysia's Economic Transformation Programme.

Meanwhile, capital markets, investment banking, currency and commodity trading are expected to benefit from higher trade flow.

"Domestic consumer loan demand may soften given the various responsible lending measures to address high household debts and easing consumer spending from the on-going rationalisation of subsidies," AMMB said.