KUALA LUMPUR (Aug 22): AMMB Holdings Bhd's (AmBank) net profit for the first quarter ended June 30, 2019 rose 12.62% year-on-year to RM391.46 million from RM347.59 million, mainly from interest on fixed income securities and customer lending.

In a filing with Bursa Malaysia today, AmBank said revenue for the period rose 10.1% to RM2.39 billion from RM2.17 billion a year earlier.

Earnings per share rose to 13.01 sen versus 11.56 sen previously.

In a separate statement, AmBank group chief executive officer Datuk Sulaiman Mohd Tahir said the group kicked off the 2020 fiscal year (FY20) with a healthy net profit.

"Total income rose 5% year-on-year from improved trading performance and better insurance income despite a subdued lending environment.

"At the same time, we continued to exert cost discipline with our cost-to-income further improving to 49.7%.

"This is a testament to our transformation strategy which has placed the group on a stronger footing to weather the more challenging operating landscape," he said.

On AmBank's new offerings and initiatives, Sulaiman said it recently introduced Do-It-Yourself (DIY) wealth capability via AmOnline.

"Our online wealth investment service is aimed at encouraging young individuals to start investing and managing their wealth early.

"With this service, customers can manage their unit trust portfolio online with ease. At the same time, we offer advisory services through the risk profiling of the customers, which helps with the customisation of products and services recommendations," he said.

On its prospects, Sulaiman said the group's FY20 strategic priorities are in place.

"As part of our digital roadmap, we will be rolling out more digital initiatives that provide us with a competitive edge and at the same time benefit customers.

"In addition, the group remains focused on further strengthening cost efficiencies through our BET300 programme which involves every line of business," he said.

At the midday break today, AmBank dipped 0.26% or 1 sen to RM3.89 for a market capitalisation of RM11.73 billion.