AMMB Holdings Berhad (AMMB, AmBank Group or the Group) is pleased to announce its results for the financial quarter ended 30 June 2026 (Q1FY27).

Highlights of Q1FY27 Results¹

• Net income grew 2.8% YoY to RM1,327.5 million, driven by Net Interest Income (NII) growth of 4.3% YoY. Non-Interest Income (NoII) remained resilient with lower trading gains and insurance contribution being offset by higher wealth management income. Net Interest Margin (NIM) moderated to 1.93%
  
• Expenses increased 2.1% YoY to RM575.5 million driven by personnel costs, computerisation costs and amortisation of software costs, with Cost-to-Income (CTI) ratio improving to 43.4%
  
• Profit Before Provisions (PBP) of RM752.0 million was higher by 3.5% YoY
  
• Net impairment charges were marginally lower at RM69.8 million, mainly due to higher overlay reversals in Retail Banking, partially offset by an additional overlay provision of RM52.5 million for exposures deemed potentially vulnerable to sustained geopolitical tensions, higher provisions in Wholesale Banking and lower recoveries
  
• Profit Before Taxation (PBT) increased 4.2% YoY to RM682.1 million, while Profit After Taxation and Minority Interests (PATMI) recorded a modest increase of 0.8% YoY to RM520.2 million
  
• Return on Equity (ROE) at 9.7% with Return on Assets (ROA) of 0.99%
  
• Gross loans, advances and financing grew 0.8% YTD and 7.0% YoY to RM147.8 billion. YTD expansion was from Business Banking and Retail Banking while Wholesale Banking remained broadly stable. YoY growth was broad-based across Wholesale Banking, Business Banking and Retail Banking
  
• Gross impaired loans (GIL) ratio was slightly higher YTD at 1.62%², with loan loss coverage (LLC) ratio (including Regulatory Reserves) of 102.5%²
  
• Customer deposits declined 2.0% YTD to RM144.1 billion, with Time Deposits increasing by 2.4%. YoY, customer deposits grew 4.4%, with Time Deposits increasing by 6.7%
  
• Liquidity remained ample with Liquidity Coverage Ratio (LCR) for consolidated banking entities at 143.9%³
• Group Common Equity Tier 1 (CET1) capital ratio remained strong at 14.82%, with Total Capital Ratio (TCR) at 17.31%. Excluding Q1FY27 unaudited profits, CET1 at 14.40%, while TCR at 16.89%

AmBank Group Chief Executive Officer, Mr Jamie Ling commented, “We delivered a resilient start to FY27 with PATMI of RM520 million, supported by continued revenue growth, loan expansion and disciplined cost management. Our strong capital position and ample liquidity provide a strong foundation to support our customers.”

Financial Summary

The Group reported a 2.8% YoY increase in net income to RM1,327.5 million (Q1FY26: RM1,290.7 million), driven primarily by stronger NII despite softer NoII. NII grew 4.3% YoY to RM964.7 million (Q1FY26: RM924.7 million), driven by strong loan growth. Q1FY27 NIM moderated to 1.93% on lower asset yield (Q1FY26: 2.01%) due to the OPR reduction last year.

NoII eased 0.9% YoY to RM362.8 million (Q1FY26: RM366.0 million) due to lower securities trading gains from Group Treasury and Markets (GTM) and lower Insurance business income, partially offset by higher wealth management income.

Overall expenses grew 2.1% YoY to RM575.5 million largely driven by higher personnel costs, computerisation costs and amortisation of software costs. Meanwhile, cost optimisation efforts improved CTI ratio to 43.4% (Q1FY26: 43.7%). As a result, PBP increased 3.5% YoY to RM752.0 million (Q1FY26: RM726.8 million).

Net impairment charges reduced marginally to RM69.8 million (Q1FY26: RM72.4 million), primarily due to higher overlay reversals from Retail Banking, partially offset by an additional overlay provision of RM52.5 million for exposures deemed potentially vulnerable to sustained geopolitical tensions, higher individual provisions in Wholesale Banking and lower recoveries.

The Group delivered PATMI of RM520.2 million (Q1FY26: RM516.2 million), up 0.8% YoY, with ROE of 9.7% (Q1FY26: 10.0%) and ROA of 0.99% (Q1FY26: 1.05%).

Total gross loans, advances and financing increased a marginal 0.8% YTD to RM147.8 billion (FY26: RM146.7 billion) mainly driven by healthy growth from Business Banking (+RM0.9 billion or +1.6%) and Retail Banking (+RM0.3 billion or +0.5%), while Wholesale Banking remained broadly stable. On a YoY basis, total gross loans, advances and financing grew 7.0%, underpinned by strong growth in Wholesale Banking (+RM3.8 billion or +19.0%), Business Banking (+RM5.4 billion or +11.0%) and Retail Banking (+RM0.4 billion or +0.7%).

GIL ratio was slightly higher at 1.62%2 (FY26: 1.59%2) with LLC (including Regulatory Reserves) at 102.5%2 (FY26: 100.9%2).

Total customer deposits stood at RM144.1 billion (FY26: RM147.0 billion), down 2.0% YTD, with a 10.0% YTD decline in CASA to RM46.9 billion (FY26: RM52.1 billion) partly cushioned by a 2.4% YTD increase in Time Deposits to RM97.2 billion (FY26: RM94.9 billion). On a YoY basis, customer deposits grew 4.4%, underpinned by continued growth in Time Deposits. The increase in customer deposits was broad based across Business Banking (+6.6%), Retail Banking (+4.3%) and Wholesale Banking (+3.7%).

The Group’s CET1 remained strong at 14.82% (FY26: 14.82%), while TCR stood at 17.31% (FY26: 17.23%). Excluding Q1FY27 unaudited profits, CET1 at 14.40% and TCR at 16.89%. Liquidity remained ample with LCR for consolidated banking entities at 143.9%³.

Divisional performance (Q1FY27 vs Q1FY26)

Retail Banking – PAT of RM111.9 million (Q1FY26: PAT of RM49.0 million)

Profit After Taxation (PAT) increased RM62.9 million YoY to RM111.9 million on lower expenses and net impairment writebacks as a result of the Group’s derisking efforts in the previous financial year.

Income fell 2.1% YoY to RM374.4 million (Q1FY26: RM382.5 million) mainly due to lower NII, despite a 64.3% YoY increase in NoII driven by wealth management. Operating expenses reduced 1.6% YoY to RM247.2 million (Q1FY26: RM251.2 million). Net impairment writeback of RM19.7 million (Q1FY26: net impairment charge of RM67.2 million) was due to higher overlay reversals arising from improved asset quality across the portfolio.

Gross loans, advances and financing grew marginally by 0.7% YoY to RM67.7 billion mainly due to growth in mortgages, partially offset by a decline in auto financing. GIL ratio was higher YoY at 1.86% (Q1FY26: 1.78%). Total deposits increased 4.3% YoY to RM59.2 billion.

Business Banking – PAT of RM200.9 million (Q1FY26: PAT of RM185.9 million)

PAT grew 8.0% YoY to RM200.9 million mainly due to higher income and lower net impairment charge.

Income grew 2.1% YoY to RM448.9 million (Q1FY26: RM439.9 million). Operating expenses increased 5.7% YoY to RM168.0 million (Q1FY26: RM159.0 million). A lower net impairment charge of RM18.2 million was recorded (Q1FY26: RM36.4 million) mainly due to lower impairment provisions on loans and advances.

Gross loans, advances and financing increased 11.0% YoY to RM54.7 billion, underpinned by strong Commercial Banking loans growth of 14.7%. GIL ratio improved YoY to 1.76%2 (Q1FY26: 2.01%). Total deposits increased 7.2% YoY to RM39.8 billion.

Wholesale Banking – PAT of RM234.9 million (Q1FY26: PAT of RM234.9 million)

PAT remained stable at RM234.9 million supported by higher income, partially offset by higher expenses and net impairment charge.

Income grew 13.3% YoY to RM407.0 million (Q1FY26: RM359.3 million) driven by higher NII growth of 23.8% YoY from effective liability management efforts and strong YoY loans growth, partially mitigated by a decline in NoII from lower trading gains. Operating expenses increased 2.3% YoY to RM86.9 million (Q1FY26: RM85.0 million). There was a net impairment charge of RM16.0 million this quarter (Q1FY26: net impairment writeback of RM30.7 million) due to increased individual provisions in Corporate Banking and lower recoveries.

Gross loans, advances and financing increased 19.0% YoY to RM23.5 billion. GIL ratio improved YoY to 0.55% (Q1FY26: 0.73%). Total deposits grew 9.8% YoY to RM54.8 billion.

• Corporate and Transaction Banking – PAT of RM95.5 million (Q1FY26: PAT of RM84.5 million)

  PAT increased by 13.1% YoY to RM95.5 million mainly attributable to higher income, partially offset by higher operating expenses and net impairment charge.

  Income increased 39.7% YoY to RM190.3 million (Q1FY26: RM136.2 million), mainly driven by a 17.7% YoY growth in NII from higher YoY loans growth and growth in NoII to RM57.8 million (Q1FY26: RM23.7 million). Operating expenses increased 4.4% YoY to RM51.6 million (Q1FY26: RM49.5 million) while there was a net impairment charge of RM15.0 million (Q1FY26: net impairment writeback of RM23.2 million) due to increased individual provisions and lower recoveries.

  Gross loans, advances and financing grew 19.0% YoY to RM23.5 billion, while total deposits remained broadly stable at RM13.7 billion.



• Group Treasury and Markets – PAT of RM139.4 million (Q1FY26: PAT of RM150.3 million)

  Income fell 2.8% YoY to RM216.8 million, with NoII declining to RM42.8 million (Q1FY26: RM88.1 million) due to lower trading gains. As a result, PAT declined 7.3% YoY to RM139.4 million, partially offset by higher NII.

Investment Banking, Funds Management and Private Banking (PB) – PAT of RM20.0 million (Q1FY26: PAT of RM20.4 million)

PAT fell 1.8% YoY to RM20.0 million affected by lower income from Investment Banking amid softer customer activities and deal revenues, as well as higher operating expenses.

Income grew 1.4% YoY to RM88.6 million (Q1FY26: RM87.4 million) primarily supported by higher GWM income generated from Funds Management and Private Banking, partially offset by lower fee income from Debt and Equity Markets. Funds Management PAT grew 22.6% to RM20.3 million (Q1FY26: RM16.6 million). Average AUM (including PB) grew 8.3% YoY to RM68.9 billion (Q1FY26: RM63.6 billion).

Islamic Banking – PATZ of RM150.5 million (Q1FY26: PATZ of RM135.5 million)

Profit After Taxation and Zakat (PATZ) rose 11.1% YoY to RM150.5 million. Total income expanded 6.4% YoY to RM365.4 million (Q1FY26: RM343.5 million) mainly attributable to a 76.8% YoY growth in Non-Financing Income to RM75.4 million. Operating expenses increased 8.7% YoY to RM146.8 million (Q1FY26: RM135.0 million) while net impairment charge of RM23.1 million was 27.3% lower YoY (Q1FY26: RM31.7 million).

Insurance – PAT of RM8.6 million (Q1FY26: PAT of RM32.4 million)

PAT declined to RM8.6 million on lower investment income, lower net earned insurance premiums, partially mitigated by lower claims. The results of the Group’s life insurance, family takaful and general insurance businesses were equity accounted to reflect the Group’s effective equity interests in the respective joint ventures and associate.

Others – Loss After Taxation (LAT) of RM56.3 million (Q1FY26: LAT of RM6.5 million)

This segment comprises support and corporate functions of the Group. LAT increased mainly due to higher operating expenses and an additional overlay provision of RM52.5 million for exposures deemed as potentially vulnerable to sustained geopolitical tensions.

Outlook for FY27

Mr Jamie Ling concluded, “Malaysia's economic fundamentals remain strong, with Q2 GDP growth of 6% YoY, sequentially higher than Q1 GDP growth of 5.4%. The Middle East conflict remains unresolved and a source of continued uncertainty globally. The near-term risk of a full closure of the Strait of Hormuz may ease further with a pathway established between neighbouring Gulf nations as near-term de-escalation mechanism, with the revival of the US-Iran MoU as a longer-term step. We are focused on delivering our plans in the quarters ahead.”

¹ All growth percentages are computed on a year-on-year (YoY) Q1FY27 vs Q1FY26 basis unless otherwise stated. Quarter-on-quarter (QoQ) refers to Q1FY27 vs Q4FY26. Year-to-date (YTD) refers to Q1FY27 vs FY26.

² After offsetting CGC Escrow cash balances of RM121 million in Q1FY27 (FY26: RM119 million)

³ LCR is based on 12-month rolling average