The earnings of AMMB Holdings Bhd, a banking group jumped RM445.82mil during the second quarter ending September 30, compared to last year’s RM440.85mil, mainly helped by lower expenses and higher operating income.
On Wednesday, the company said revenues slid to RM2.21bil compared to last year’s RM2.38bil. Company earnings for every share were at 14.81 sen, and announced a 12 sen a share for dividend.
The company’s second quarter results showed a decrease in its insurance commission and claims, while some operating income jumped to RM268.87mil. AMMB’s operating profit has been recorded higher than last year, reporting an RM633.06mil total operating profit. Other company expenses decreased to RM491.22mil.
Company earnings jumped to RM982.76mil for the last 6 months ending September 30, while its revenue increased to RM4.793bil. The company’s existing savings account composition remained steady at 20%, reporting 3.6% growth.
Ashok Ramamurthy, AMMB managing director, said the company’s performance in the year’s first half is a reflection of current transformation initiatives. The company’s recent, and newly-implemented combined wholesale banking model is gaining motion in preferred segments and sectors.
The director also said that the company is restructuring its loan portfolio, aiming for stronger growth within targeted segments. AMMB net loans increased 1.4% as a reflection of the company’s careful credit risk efforts in selected retail segments, including the restructuring of its coverage by sector and segment in non-retail loans.
The company reported RM621.2mil pre-tax revenue during the second quarter ending September 30, lower than the previous quarter profit of RM725.8mil ending June 30.
The company stated that the results were largely attributed to some lower operating income, deficiencies on monetary investments, including contingencies and commitments provisions.
Joe Hennessey
