KUALA LUMPUR: AMMB Holdings Bhd expects to register an eight per cent growth in net profit for its current financial year ending March 31, 2015 despite the increasingly competitive environment in the banking industry.

Speaking to reporters after a briefing this afternoon, AMMB Holdings Group Managing Director Ashok Ramamurthy said the second half of the year, however, would see a contraction in net profit growth.

"In the first half, we saw an 8.9% growth in profit after tax and minority interest, which included divestment gains [from the sale of about 50% stake in AmLife and AmFamily Takaful]," he said.

"Since our full year guidance is 8%, logically speaking our second half growth would be lower," he added.

The banking group announced today its net profit came in 1.2% higher at RM445.8 million in the second quarter ended Sept30, 2014 (2QFY15) from RM440.9 million a year earlier, on lower operating and acquisition expenses.

AMMB Holdings has proposed an interim dividend of 12 sen per share.

Higher contribution from the financial services provider's associates and joint ventures, besides foreign exchange gains, had also supported profit growth during 2QFY15, the group told Bursa Malaysia today.

However, net interest income and net Islamic banking income fell, as did income at its insurance division.
 
Group revenue fell to RM2.21 billion from RM2.38 billion in the quarter.

For 1HFY15, AMMB Holdings’ net profit increased to RM982.8 million, from RM902.8 million a year ago while revenue was almost flat at RM4.79 billion versus RM4.76 billion in the previous corresponding quarter.

AMMB Holdings share price closed 2 sen higher at RM6.52 for a market capitalisation of RM19.6 billion.