KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) recorded profit after tax and minority interests of RM1.87 billion for the financial year ending March 31 2024 (FY24), up 9.3% year-on-year (y-o-y).

AmBank Group CEO Jamie Ling said the return on equity increased to 10% compared to 9.8% in financial year 2023, while the return on assets improved to 0.97% (0.90% in FY23).

“Basic earnings per share increased 9.4% y-o-y to 56.49 sen, while the increase for the 2023 financial year was 51.62 sen,“ he said during AMMB Holdings’ FY24 financial year results press conference here today.

He said gross loans and financing increased 3% y-o-y to RM134.1 billion compared to RM130.2 billion in the financial year 2023, while the gross impaired loan ratio was higher at 1.67%.

“Group loan loss protection, including regulatory reserves, is at 109.5% lower than the 2023 financial year which is 127.7%,” said Ling. “Customer deposits increased 9.3% y-o-y to RM142.4 billion while time deposits increased 9.9%.”

He added: “Our balance sheet is in good shape by improving the capital ratio and declaring a 23% increase in the annual dividend of 22.6 sen per share for the financial year 2024.”

Ling said the group’s total income for the 2024 financial year of RM4.64 million is in line with the 2023 financial year even though the net income margin (NIM) for the 2024 financial year is 1.79%.

According to him, the group’s net interest income (NII) declined 6.7% to RM3.3 million, while non-interest income (NoII) y-o-y was stronger by 14.7% to RM1.34 million and this has helped offset the impact of NIM.

He stated that NoII growth was contributed by higher fee income from investment banking, funds and wealth management as well as higher investment income.

“Income from continuing operations increased slightly at RM4.6 million, led by NoII growth of 19.2%, offset by a 5.5% decline in NII,“ he said.

Commenting on the outlook for the financial year 2025, he said the group expects the global financial market to continue to rise, centred on the outlook for inflation and the direction of monetary policy on interest rates globally.

“External demand drivers have improved despite ongoing geopolitical tensions and conflicts,” said Ling.

In addition, Ambank Group expects gross domestic product growth of 4% to 5% for Malaysia this year, supported by resilient domestic demand and an improving labour market that is driving consumption.

“We also expect an increase in tourism activities to stimulate the economy and a spillover effect from the cycle of technological improvement to drive foreign direct investment into our country,“ said Ling