KUALA LUMPUR, Aug 18 (Bernama) — AMMB Holdings Bhd’s net profit rose to RM516.18 million in the first quarter ended June 30, 2025 from RM500.20 million in the same period a year ago.
The banking group said in a Bursa Malaysia filing today that its revenue also increased to RM1.29 billion from RM1.18 billion previously contributed by improvements in both net interest income (NII) and non-interest income (NoII).
“NII grew 7.4 per cent year-on-year (y-o-y) to RM924.7 million (1Q 2025: RM860.9 million), on the back of a 12 basis points (bps) net interest margin expansion to 2.01 per cent (1Q 2025: 1.89 per cent).
“Loans and financing grew 4.2 per cent y-o-y, with business banking and wholesale banking loans growth of 12.2 per cent and 10 per cent y-o-y respectively,” it said.
Meanwhile, it said NoII was 15.2 per cent higher y-o-y to RM366.0 million (1Q 2025: RM317.6 million) largely driven by higher trading gains in securities from Group Treasury and Markets (GTM) as well as higher fee income from corporate banking and business banking, partially offset by a decline in fee income from investment banking and wealth management.
“Overall expenses increased 8.3 per cent y-o-y to RM563.9 million mainly due to higher personnel costs,” it said.
On prospects, it said amid Malaysia’s second quarter of 2025 gross domestic product (GDP) growth of 4.4 per cent, the economic backdrop is expected to become more challenging in the second half of 2025 as the full impact of the 19 per cent US tariffs takes hold and the temporary boost from frontloading fades.
“Even so, we do not foresee a sharp downturn or recession in the near term, with resilient household consumption, rising tourist arrivals and robust construction activity expected to continue supporting growth.
“As such, we maintain our view that Malaysia’s GDP is expected to grow between 3.5 per cent and 4.5 per cent in calendar year 2025 (CY2025), moderating from 5.1 per cent in the previous year,” it said.
On the inflation front, AMMB expects inflation to average between 1.8 per cent and 2.3 per cent in CY2025 from 1.8 per cent in CY2024.
“Inflationary pressures are expected to pick up in the second half of CY2025 due to expansion of the sales and service tax (SST), the planned rollout of RON95 subsidy rationalisation and electricity tariff restructuring,” it said.
AmBank Group chief executive officer Jamie Ling said AMMB is managing through a period of turbulence and has achieved a good start to the new financial year.
“The Overnight Policy Rate reduction will have some impact on net interest margins in the near term. As our economy adjusts to the 19 per cent tariff imposed on most Malaysian exports to the United States, we are confident that economic growth will remain resilient,” he said.
— BERNAMA
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