AmBank Group's Net Profit Rises 0.8 Pct To RM520.23 Mln In 1Q FY2027

KUALA LUMPUR, Aug 18 (Bernama) -- AMMB Holdings Bhd (AmBank Group) recorded net profit of RM520.23 million in the first quarter ended June 30, 2026 (1Q FY2027), an increase of 0.8 per cent, as compared with RM516.18 million in the same period of FY2026.

Revenue also increased by 2.8 per cent to RM1.33 billion from RM1.29 billion previously, the group said in a Bursa Malaysia filing.

“(The higher) net income (was) driven primarily by stronger net interest income (NII) despite softer non-interest income (NoII),” it said.

It said NII grew 4.3 per cent year-on-year (y-o-y) to RM964.7 million (1Q FY2026: RM924.7 million), driven by strong loan growth, while NoII eased 0.9 per cent y-o-y to RM362.8 million (1Q FY2026: RM366.0 million) due to lower securities trading gains from group treasury and markets and lower insurance business income, partially offset by higher wealth management income.

“Overall expenses grew 2.1 per cent y-o-y to RM575.5 million, largely driven by higher personnel costs, computerisation costs and amortisation of software costs.

“Meanwhile, cost optimisation efforts improved the cost-to-income ratio to 43.4 per cent,” it said.

It said return on equity stood at 9.7 per cent, while return on assets was 0.99 per cent.

AmBank Group said total gross loans, advances and financing grew 0.8 per cent year-to-date and 7.0 per cent y-o-y to RM147.8 billion.

“Year-to-date expansion was from business banking and retail banking, while wholesale banking remained broadly stable.

“Y-o-y growth was broad-based across wholesale banking, business banking and retail banking,” it said.

The group said customer deposits declined 2.0 per cent year-to-date to RM144.1 billion.

On prospects, AmBank group chief executive officer Jamie Ling said the West Asia conflict remains unresolved and a source of continued uncertainty globally.

He said the near-term risk of a full closure of the Strait of Hormuz may ease further with a pathway established between neighbouring Gulf nations as a near-term de-escalation mechanism, with the revival of the US-Iran deal as a longer-term step.

“We are focused on delivering our plans in the quarters ahead,” he added. 

-- BERNAMA