Friday, February 18, 2011

AMMB 3Q earnings up 21.2pct to RM325.31m from RM268.47m a year ago

KUALA LUMPUR: AMMB HOLDINGS BHD [] net profit for the third quarter ended Dec 31, 2010 rose 21.2% to RM325.31 million from RM268.47 million a year ago.

The higher net profit was mainly due impairment writeback on financial investment and doubtful sundry receivables of RM38.3 million and RM2.3 million respectively as compared to impairment loss of RM19.2 million and RM4.0 million for previous corresponding quarter.

AMMB said on Friday, Feb 18 that in addition, higher income was reported for the Islamic banking business, transfer from profit equalisation reserve and other operating income by RM27.4 million, RM6.6 million and RM4.9 million.

Revenue rose to RM1.82 billion from RM1.71 billion in 2009. Earnings per share was 10.83 sen while net assets per share was RM3.31.

For the nine months ended Dec 31, AMMB's net profit rose 34% to RM1.03 billion from RM766.87 million, on the back of revenue RM5.3 billion, up from RM4.87 billion a year earlier.

AMMB group chief executive officer and managing director Cheah Tek Kuang said the group posted a record nine-months performance by staying focused on its strategies of profitable and sustainable growth, and income diversification.

'We remain on course to achieving faster non-interest income growth, with higher contributions from foreign exchange, derivatives, and assurance businesses,' he said.

Commenting on the one-notch rating upgrade of AmBank (M) Bhd (AmBank) and AmInvestment Bank Bhd (AmInvestment) ratings by Standard and Poor's (S&P) in December last year, Cheah said it reflected AmBank Group's improved financial performance and asset quality, preserved capitalisation, and strong domestic franchise in investment banking.

'With our robust nine-month results, we are on track to deliver the fourth consecutive year of record performance, and in line with our aspirations for full FY2011.

'This is a testimony to the quality and strength of AMMB's management team and its people,' he said.

Highlights of AMMB's nine-month performance:

Retail Banking: Profit after tax (PAT) increased 12.7% to RM 450.1 million attributed to lower impairments. Income growth was driven by staying focused on profitable segments and pricing for risk despite the industry continues to experience uneconomic pricing in selected segments such as mortgage.

Business Banking: PAT improved 18.2% to RM 148.8 million backed by good income growth from lending to stable sectors, trade and transactional businesses and strong customer focus.

Corporate and Institutional Banking: PAT grew 23.0% to RM 153.5 million with higher contributions from international business and lower allowances.

Investment Banking: PAT down 13.1% at RM 90.5 million amidst a subdued debt market, and a higher income reported during 9MFY10 partly due to a one-time gain on disposal of a bond holding.

Markets: PAT rose 70.7% to RM 151.2 million. Foreign exchange (FX) and derivatives business delivered greater income contribution, with the division continuing to expand its product offerings.

Life Assurance: PAT transferred to the group's shareholders surged above 100% to RM 51.6 million. Higher income was supported by larger fund assets from an enhanced agency network, better product bundling and higher cross-selling activities.

General Insurance: PAT increased 22.9% to RM 46.2 million as gross written premium grew from enhanced up- and cross-selling initiatives, and an established distribution network.

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