Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 26): AMMB Holdings Bhd's first quarter net profit dropped 6.72% to RM365.17 million from RM391.46 million a year earlier on lower net interest and Islamic banking income amid Covid-19-driven uncertainties.

AMMB, which is also known as AmBank, said in a Bursa Malaysia filing today revenue fell to RM2.21 billion in the first quarter ended June 30, 2020 (1QFY21) from RM2.39 billion a year earlier.

In quarterly terms, AMMB said 1QFY21 net profit, however, rose from RM247.54 million in 4QFY20.

"With the continuing uncertainties in global economy triggered by the coronavirus (Covid-19) outbreak, liquidity and capital management become paramount in preserving the continuity and proper functioning of the banks.

"At AmBank Group, our liquidity and capital management framework aims to ensure adequate liquidity under adverse market conditions as well as to strengthen our loss absorption capacity.

"Greater emphasis shall be placed on risk management, stress testing, capital planning and liquidity management in order to safeguard the group’s financial resilience in the face of heightened market volatility," AMMB said.

According to AMMB's consolidated profit or loss statement, 1QFY21 net interest income fell to RM444.37 million from RM468.3 million a year earlier.

Net income from Islamic banking dropped to RM180.13 million from RM229.98 million, the statement showed.

The statement showed that AMMB registered an allowance amounting to RM42.75 million for impairment on loans, advances and financing during 1QFY21 compared to a writeback of RM44.91 million a year earlier.

At 5pm today, AMMB’s share price closed up 11 sen or 3.74% at RM3.05 for market value of RM9.18 billion. The stock saw some four million shares traded.

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