Monday, August 15, 2011

AMMB 1Q net profit up 19.9% to RM441.52m

KUALA LUMPUR: AMMB HOLDINGS BHD [] net profit for the first quarter ended June 30, 2011 rose 19.9% to RM441.52 million from RM368.28 million a year earlier, underpinned by higher income growth as well as improved asset quality with lower charge offs and allowances.

Revenue for the quarter rose to RM1.95 billion from RM1.70 billion in 2010. Earnings per share was 14.75 sen, while net assets per share was RM3.54.

In a statement Monday, Aug 15, AMMB group managing director Cheah Tek Kuang said the banking group had a good start to FY12, as it continued our focus on improving returns.

Profit growth came from higher non-interest income and lower allowances, with good performances across AMMB's diversified business streams, he said.

Cheah said deposit growth remained strong, driven by expanded suite of product offerings and distribution channels, adding that asset growth was targeted at profitable and viable segments while asset quality continued to improve.

'We have maintained a proactive approach to risk management and this was evidenced by an improved risk and funding profile.

'Our commitment towards our customers remains unwavering. We recognise the evolving needs of our customers and continue to develop innovative service offerings and enhance our customer service levels,' he said.

Cheah said the bank had introduced several new products and services, such as AmBank@Work and new unit trust funds, to suit various investment appetites of its customers, implemented customer segmentation and account planning, as well as commenced its core banking system replacement.

'We will continue to execute to our strategic priorities and growth levers, strengthen our market positions and leverage on ANZ's international connectivity.

'We are positive on achieving our medium term aspiration to become Malaysia's preferred banking group with international connectivity in delivering sustainable value to our shareholders,' he said.

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