Kuala lumpur: AMMB Holdings Bhd's net profit increased to RM516.18 million in the first quarter ended June 30, 2025, compared to RM500.20 million in the same period the previous year. The banking group reported this in a Bursa Malaysia filing today, highlighting that its revenue also rose to RM1.29 billion from RM1.18 billion, driven by improvements in net interest income (NII) and non-interest income (NoII).
According to BERNAMA News Agency, NII saw a 7.4% year-on-year growth to RM924.7 million, supported by a 12 basis points net interest margin expansion to 2.01%. The loans and financing segment experienced a 4.2% year-on-year growth, with business banking and wholesale banking loans expanding by 12.2% and 10% year-on-year, respectively.
The group noted that NoII increased by 15.2% year-on-year to RM366.0 million, primarily due to higher trading gains in securities from Group Treasury and Markets and increased fee income from corporate and business banking. This was partially offset by a decline in fee income from investment banking and wealth management.
Overall expenses rose by 8.3% year-on-year to RM563.9 million, mainly due to higher personnel costs.
On future prospects, AMMB stated that despite Malaysia's second quarter of 2025 GDP growth of 4.4%, the economic environment is expected to become more challenging in the second half of 2025. This is attributed to the full impact of the 19% US tariffs and the fading of temporary economic boosts from frontloading. However, it does not foresee a sharp downturn or recession in the near term, with expectations of continued support from resilient household consumption, rising tourist arrivals, and robust construction activity.
The company maintains its forecast for Malaysia's GDP to grow between 3.5% and 4.5% in calendar year 2025, moderating from 5.1% the previous year. On inflation, AMMB predicts an average between 1.8% and 2.3% in CY2025, compared to 1.8% in CY2024. Inflationary pressures are anticipated to increase in the second half of CY2025 due to the expansion of the sales and service tax (SST), planned RON95 subsidy rationalisation, and adjustments in electricity tariffs.
AmBank Group CEO Jamie Ling commented on managing through a turbulent period and achieving a positive start to the new financial year. He noted that the reduction in the Overnight Policy Rate will impact net interest margins in the short term but expressed confidence in the resilience of economic growth as Malaysia adjusts to the 19% tariff on exports to the United States.