AmBank to pay RM128m for mutual separation scheme

PETALING JAYA: AMMB Holdings Bhd (AmBank), which reported a 30% fall in net profit for the third quarter ended Dec 31, 2017, today announced that it had completed its mutual separation scheme (MSS) exercise with an estimated expense of RM128 million.
AmBank told the stock exchange that a total of 1,123 applications were approved, representing 12% of the group’s permanent workforce.
The group said employees whose applications were accepted will be released in batches between January and June 2018 in order to ensure a smooth transition process.
To help employees with the transition, career transition programmes, workshops and on-ground job search support continue to be provided, it added.
AmBank reported a net profit of RM218.97 million for the third quarter ended Dec 31, 2017, 30% lower than the RM313.16 million reported a year ago due to higher operating expenses and impaired loans.
Revenue for the quarter under review grew 9.18% to RM2.15 billion from RM1.97 billion in the previous year’s corresponding quarter.
Net interest margin was broadly stable year on year at 1.98%.
Deposits from customers increased RM6.0 billion or 6.4% year to date to RM99.9 billion.
Since March 31, 2017, gross loans and financing grew 4.1% to RM94.7 billion with mortgages growing 15.2% and small and medium enterprise loans growing at 12.4%.
For the nine months, net profit stood at RM878.71 million, 1.13% lower than the RM988.79 million in the first three quarters of the previous year due to higher impairment, which was partially offset by higher income. Revenue grew by 3.66% to RM6.36 billion from RM6.14 billion previously.