AMMB posts higher Q2 pre-tax profit

AMMB Holdings Bhd posted a higher pre-tax profit of RM602.52 million in the second quarter ended September 30, 2013, against
RM534.05 million in the same period last year.

Revenue rose to RM2.39 billion in the quarter versus RM1.99 billion in the same period last year, while basic earnings per share grew to 14.67 sen for the second quarter from 12.68 sen previously.

For its half year performance, the bank's pre-tax profit increased to RM1.24 billion from RM1.15 billion in the same period last year.

Revenue jumped to RM4.78 billion in the six-month period compared to RM4.01 billion previously.

The bank has proposed an interim dividend of 7.2 sen, representing a payout of 24 per cent.

"AMMB's record half-year earnings was underpinned by contributions from two recent acquisitions and positive momentum in delivering on synergies.

"Key income drivers were commercial banking (+6 per cent), insurance (+>100 per cent) and investment banking (+1 per cent)," said Group managing director Ashok Ramamurthy in a statement today.

Non-interest income grew at a healthy pace of 41 per cent to now comprise 37 per cent of total income, reflecting cross-selling and collaborative efforts across the group.

"Our loans growth was slower, as we were being selective in customer segments and economic sectors, whilst we continue to experience good deposit growth," he said.

For AMMB's first half financial year performance, its loans to deposit ratio was at 86.8 per cent.

Net lending grew 4.3 per cent with growth focused on selective
customer segments and economic sectors.

Customer deposits grew 5.3 per cent and CASA (low cost deposits) rose 13.8 per cent.-