KUALA LUMPUR (May 28): AMMB Holdings Bhd posted an 81% growth in net profit to RM459.67 million for the fourth quarter ended March 31, 2019 (4QFY19), from RM253.41 million a year ago, thanks to a substantial net writeback for impairment for loans, advances and financing amounting to RM271.56 million in the quarter under review.

In a filing to Bursa Malaysia, AMMB said the group's earnings per share (EPS) rose to 15.28 sen, from 8.43 sen previously. AMMB also proposed a dividend of 15 sen per share.

In an accompanying statement today, AMMB group chief executive officer Datuk Sulaiman Mohd Tahir said the improvement was driven by higher lending volume, lower expenses from non-repeat of severance cost and increase in recoveries.

"We are cognisant that competition will remain fierce, and that regional as well as international headwinds will have an impact on local market dynamics. We are confident that our growth strategy in terms of improving profitability and strengthening our balance sheet is on track. Furthermore, our drive to reduce costs will carry through into the new financial year," he said.

The group reported a 10.7% growth in interest income to RM1.24 billion for 4QFY19, from RM1.12 billion a year ago.

For the financial year ended March 31 (FY19), AMMB's net profit grew 33% year-on-year to RM1.51 billion from RM1.13 billion, while interest income grew by 13.2% to RM4.89 billion from RM4.32 billion in FY18.

Moving forward, AMMB said it will continue to drive income growth momentum, in line with the group's key segments and products strategies, especially in the areas of transaction banking, foreign exchange, SME and wealth management.

The group also said its other financial priorities in FY20 will be centred around capital accretive growth.

"We aim to further strengthen our capital position and deliver sustainable dividend payout to our shareholders, focusing on managing returns on capital employed and risk-weighted assets.

"Bank Negara Malaysia (BNM) instituted a 25bps rate cut to 3.00% to support growth. Though BNM is likely to hold overnight policy rate (OPR) unchanged for the remaining months of 2019, room for another rate cut could materialise should the potential incoming data remain depressed," it noted.

In terms of digital banking, AMMB said it aims to provide digital solutions that seamlessly integrate into and improve customers' day-to-day lives.

"Our digital transformation investment plan in FY2020 will continue to pave way for the digitalisation of our products and solutions, focus on enhancing digital mobile platform, building infrastructure and application programming interface readiness, partnerships with key financial technology players and the use of big data analytics to capture alternative sources of business and drive internal efficiencies," it said.

Meanwhile, the group also said its business efficiency transformation (BET 300) programme is moving into the third year, and AMMB will continue to maintain a tight rein on cost and pacing investments while driving operational efficiencies through digitalisation and streamlining of processes.

At the midday break, AMMB gained 1.87% or 8 sen to RM4.35, with 228,200 shares traded.