KUALA LUMPUR, May 31 (Bernama) — AMMB Holdings Berhad (AmBank Group or the Group) today announced its financial results for the fourth quarter (Q4FY21) and financial year ended 31 March 2021 (FY21).
Summary of FY21 Results¹
• Total income up 7.7% to RM4,552.5 million from higher net interest income (+5.8%) as well as non-interest income (+11.3%)
• Expenses broadly stable at RM2,132.2 million. Cost-to-income (CTI) ratio improved further to 46.8% from 49.9% a year ago, delivering a positive JAWS of 6.6%
• Profit before provisions (PBP) up 14.2% to RM2,420.2 million
• Percentage of loans under repayment assistance reduced to 13% of total gross loans from 18% as at 31 Dec 2020
• Net impairment charge of RM1,136.7 million (FY20: RM336.1 million) mainly due to pre-emptive macro provisions charge of RM578.2 million in FY21 (FY20: RM167.3 million)
• One-off exceptional items recorded in Q4FY21 of RM4,767.0 million, relating to the settlement with the Ministry of Finance of RM2,830.0 million (Settlement), Goodwill Impairment of RM1,789.2 million and REIT Impairment of RM147.8 million
• As a result, the Group reported net loss after tax and minority interests (LATMI) of RM3,826.5 million. However, the Group achieved core PATMI of RM961.6 million (adjusted for one-off exceptional items of RM4,767.0 million and related legal and professional expenses)
• Return on equity (ROE) at -20.2% (FY20: 7.4%), core ROE at 5.0%, return on assets (ROA) of -2.24% (FY20: 0.93%) and basic earnings per share (EPS) of -127.22 sen (FY20: 44.64 sen)
• Gross loans and financing grew 7.0% YoY to RM114.8 billion
• Customer deposits grew 6.7% YoY to RM120.5 billion, with current account and savings account (CASA) balances up 24.0% (CASA mix higher at 29.7%)
• Gross impaired loans (GIL) ratio decreased to 1.54% (FY20: 1.73%), with loan loss coverage (LLC) ratio of 135.6% (FY20: 93.4%²)
• Financial Holding Company (FHC) Common Equity Tier 1 (CET1) capital ratio declined to 11.3% (FY20: 12.4%) while Total Capital ratio declined to 14.5% (FY20: 15.8%). Settlement impact to CET1 and TCR of 2.5% and 2.2% respectively