AmBank Group Posts Higher FY2025 Net Profit Of RM2 Bln

KUALA LUMPUR, May 26 (Bernama) -- AMMB Holdings Bhd (AmBank Group) posted a 7.1 per cent increase in net profit to RM2.0 billion for the financial year ended March 31, 2025 (FY2025), compared to RM1.87 billion a year ago.

Revenue improved to RM4.93 billion from RM4.65 billion in the previous financial year.

In a Bursa Malaysia filing today, AmBank Group reported that its net interest income grew 8.0 per cent year-on-year (y-o-y) to RM3.56 billion, mainly driven by a 15-basis-point (bps) net interest margin expansion to 1.94 per cent, as well as loans and financing growth of 3.5 per cent y-o-y.

“Non-interest income was 1.3 per cent higher y-o-y at RM1.35 billion due to higher fee income from business banking, retail wealth management, funds, stockbroking, private banking and equity capital markets, as well as strong performance from the insurance business, partially offset by lower trading gains from group treasury and markets,” it said.

The group said overall expenses rose 7.1 per cent y-o-y to RM2.19 billion, mainly due to higher personnel and computerisation costs. Cost-to-income stood at 44.6 per cent.

For the fourth quarter ended March 31, 2025 (4Q 2025), AmBank Group’s net profit increased to RM513.93 million from RM476.54 million in the same quarter last year, while revenue rose to RM1.28 billion from RM1.17 billion previously.

Meanwhile, the group declared a final dividend of 19.9 sen per share in 4Q 2025.

Together with the interim dividend of 10.3 sen per share declared in the 2Q 2025, total dividends for FY2025 amounted to 30.2 sen per share, an increase of 34 per cent y-o-y, with a dividend payout ratio of 50 per cent.

AmBank Group noted that outstanding loans in the industry grew by an average of 5.4 per cent y-o-y in the 1Q 2025, with household loans expanding by 6.0 per cent on average, while non-household loans increased by 4.5 per cent.

It noted that the banking system remains well-capitalised with ample liquidity, as reflected by the liquidity coverage ratio of 151.6 per cent in March.

The group added that the loan-to-fund ratio and loan-to-fund-and-equity ratio remained stable at 83.8 per cent and 72.9 per cent, respectively, as of the month.

“Given the increased risks stemming from the United States (US) trade policy shifts, we lean towards a 25bps rate cut to 2.75 per cent in the second half of FY2025, potentially as early as the next Monetary Policy Committee meeting on July 9, 2025.

“This coincides with the end of the 90-day pause on the US reciprocal tariffs. Nevertheless, any eventual rate cut should not be interpreted as the start of an aggressive easing cycle,” it said.

The group opined that Bank Negara Malaysia will retain its measured approach to monetary policy easing to preserve currency and financial market stability.

-- BERNAMA