AmBank Group Expects FY2027 Loan Growth To Remain At 7-8 Pct
KUALA LUMPUR, Aug 20 (Bernama) -- AMMB Holdings Bhd (AmBank Group) expects its loan growth to remain at around seven per cent to eight per cent for the financial year 2027 (FY2027), supported by continued demand from mid-tier corporates and small and medium enterprises (SMEs).
Group chief executive officer Jamie Ling said the group’s gross loans had expanded seven per cent year-on-year to RM165 billion in the first quarter of FY2027, providing a strong base for further income generation.
“Loan growth is very, very good news for us. We obviously have higher targets for ourselves as well, and we have reached seven per cent growth now,” he told reporters after the AmBank Group’s 35th Annual General Meeting today.
On net interest margin (NIM), AmBank remained focused on maintaining a resilient NIM and targeting about 1.97 per cent to 1.98 per cent in the second half of the financial year.
NIM stood at 1.98 per cent for FY2026, up from 1.93 per cent last financial year.
Meanwhile, Ling said the group is maintaining RM275 million in provision overlays to cushion potential asset quality risks amid uncertainties arising from prolonged disruption in West East.
He said the group’s gross impaired loan ratio increased slightly to 1.6 per cent in the first quarter (1Q) of financial year 2027 from 1.5 per cent previously.
“What we do see is there will be an impact on exporters to Asia, and therefore we have also made sure that we are putting them under close monitoring and working with our customers given that their inventory is building up because of inconsistent shipments,” he said.
He said the bank was also monitoring SMEs facing higher energy, transmission, and cement costs, and had received about RM600 million in SME applications for special relief funds, with around RM415 million to RM450 million allocated from the RM1.5 billion facility.
AmBank Group recorded net profit of RM520.23 million in 1Q FY2027, an increase of 0.8 per cent, as compared with RM516.18 million in the same period of FY2026, while revenue also increased by 2.8 per cent to RM1.33 billion from RM1.29 billion previously.
Meanwhile, chief financial officer Phuah Shok Cheng said the group’s strong capital and liquidity positions would provide ample capacity to support further business growth while remaining resilient to external shocks.
AmBank’s common equity tier 1 ratio stood at 14.8 per cent while total capital ratio was 17.2 per cent.
Phuah said the group’s financial strength also allowed it to continue creating value for shareholders, noting that its share price had risen from RM4 when he started to RM7.20 currently, while its price-to-book multiple improved from 0.75 times to 1.15 times.
-- BERNAMA