AmBank Group posts 0.8% rise in Q1FY27 PATMI to RM520.2 million
AmBank Group posted profit after tax of RM520.2 million for the three months ended 30 June 2026, up 0.8% from RM516.2 million a year earlier, as net income rose 2.8% to RM1.33 billion.
Source: AmBank Group · August 21, 2026 at 7:48 PM · AI-assisted report
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KUALA LUMPUR, 22 AUGUST 2026 —
AmBank Posts RM520 Million Profit in Q1 FY27 as Loan Growth Offsets Lower Net Interest Margins
Market Impact
KUALA LUMPUR — AmBank Group (AMMB) reported a first-quarter profit of RM520.2 million for the period ended June 30, 2026, marking a 0.8% year-on-year increase as revenue growth and disciplined cost management offset a decline in net interest margins.
In a statement on Thursday, Group Chief Executive Officer Jamie Ling said the results reflected a resilient start to the financial year, with net profit attributable to shareholders rising to RM520.2 million from RM516.2 million in the same quarter of 2025. Ling highlighted continued loan expansion and strong capital ratios as key supports, while acknowledging pressure on net interest margins following last year’s Overnight Policy Rate (OPR) cuts.
Revenue Growth and Cost Discipline Drive Profit Total income for the quarter reached RM1.33 billion, up 2.8% from RM1.29 billion a year earlier, driven primarily by a 4.3% increase in net interest income (NII) to RM964.7 million. The growth in NII was attributed to a 7% year-on-year expansion in gross loans, advances and financing, which rose to RM147.8 billion from RM138.1 billion in Q1 FY26.
Business Banking and Wholesale Banking led the expansion, with loans in Wholesale Banking surging 19% to RM23.5 billion.
Net interest margin (NIM) eased to 1.93% from 2.01% a year ago due to lower asset yields following the OPR reduction. Non-interest income (NoII) declined 0.9% to RM362.8 million, reflecting lower trading gains from Group Treasury and Markets and reduced insurance income, though this was partly offset by higher wealth management revenue.
Operating expenses rose 2.1% to RM575.5 million, driven by higher personnel costs, technology investments, and software amortisation. Despite this, the cost-to-income (CTI) ratio improved slightly to 43.4% from 43.7%, reflecting ongoing efficiency efforts. Pre-impairment profit increased 3.5% to RM752 million.
Loan Growth Outpaces Deposit Decline Gross loans grew 7% year-on-year, with Wholesale Banking leading at 19%, followed by Business Banking at 11% and Retail Banking at 0.7%. Total customer deposits, however, fell 2% quarter-on-quarter to RM144.1 billion, with CASA (current and savings accounts) declining 10% to RM46.9 billion. Time deposits rose 2.4% to RM97.2 billion, cushioning the overall deposit decline. On a year-on-year basis, deposits grew 4.4%, supported by increases across all business segments.
The Group’s capital position remained, with Common Equity Tier 1 (CET1) ratio steady at 14.82% and Total Capital Ratio (TCR) at 17.31%. Liquidity coverage remained strong at 143.9%, well above regulatory requirements.
Segment Performance Reflects Diverging Trends Retail Banking reported a 128% year-on-year jump in profit to RM111.9 million, driven by lower impairment charges and reduced expenses. Income fell 2.1% to RM374.4 million due to lower NII, but non-interest income surged 64.3% on the back of wealth management gains. Gross loans grew marginally by 0.7% to RM67.7 billion, with mortgages leading growth while auto financing declined.
Business Banking profit rose 8% to RM200.9 million, supported by a 2% increase in income and a 49% reduction in net impairment charges. Loans grew 11% to RM54.7 billion, with Commercial Banking loans up 14.7%. Deposits increased 7.2% to RM39.8 billion.
Wholesale Banking profit was unchanged at RM234.9 million despite a 13.3% rise in income to RM407 million, driven by higher NII and effective liability management. Loans grew 19% to RM23.5 billion, while deposits rose 9.8% to RM54.8 billion.
Islamic Banking profit after zakat increased 11.1% to RM150.5 million, supported by a 6.4% rise in total income to RM365.4 million, with non-financing income up 76.8% to RM75.4 million.
Asset Quality Remains Stable The gross impaired loan (GIL) ratio edged up to 1.62% from 1.59%, while the loan loss coverage (LLC) ratio stood at 102.5%, indicating adequate provisioning. Net impairment charges fell marginally to RM69.8 million, reflecting higher overlay reversals in Retail Banking, though an additional RM52.5 million provision was made for exposures vulnerable to geopolitical risks.
Outlook and Regional Context AmBank’s results come amid a challenging operating environment marked by lower interest rates and geopolitical uncertainties. The Group’s strong capital and liquidity positions provide a buffer, while loan growth across key segments signals sustained demand for financing.
Analysts note that while NIM compression remains a headwind, diversified income streams—particularly in wealth management and Islamic banking—are helping to stabilise profitability. The decline in CASA deposits may pressure funding costs, but the shift toward time deposits provides some stability.
For Malaysia’s banking sector, AmBank’s performance reflects broader trends of modest loan growth and margin pressure, though strong capital adequacy across the industry continues to support resilience. Regional peers have also reported similar challenges, with NIMs under pressure from monetary easing, even as loan books expand.
Looking ahead, AmBank’s management highlighted its focus on cost optimisation, digitalisation, and selective growth in higher-margin segments to sustain profitability. The Group’s ability to maintain asset quality and manage impairments will be critical in navigating evolving economic conditions.
on the Group’s guidance for the full financial year or specific macroeconomic assumptions underpinning its outlook.
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