KUALA LUMPUR (THE EDGE) : AMMB Holdings Bhd, which achieved record profit of RM1.34 billion for FY11 ended March 31, is “strong enough to grow organically”, said its managing director Cheah Tek Kuang.
“Based on our forecast until 2014, we look very strong in terms of organic growth,” Cheah told the financial result briefing yesterday.
AMMB Holdings aims to increase its profit after tax and minority interest (Patmi) by 14% to 16% annually in the medium-term from 2012 to 2014.
The same range is also targeted for the group’s return on equity (ROE) ratio of 14% to 16%, which will be adjusted for Basel III impact. Historically, the group has been recording double-digit ROE growth averaging 11.5% to 13.6% from FY08 to FY11.
AMMB Holdings dropped off the list of the top five banking groups after Hong Leong Bank Bhd took over the banking assets of EON Capital Bhd recently. The group is now the sixth biggest in the country in terms of assets.
Cheah did not rule out any potential mergers and acquisitions by any financial groups, and noted that the banking group would not “close its eyes” in any corporate exercise that could take place.
“Any corporate exercise that we do must bring value to every stakeholder of the bank. As you know, we have looked at some other [exercises] before and some did materialise, such as the insurance bank,” he explained.
To recap, AMMB Holdings, in which Australia and New Zealand Banking Group Ltd (ANZ) holds a 23.8% stake, was in the spotlight some months ago when the authorities made known that it would consider allowing up to 49% foreign shareholding in local banks on a “case-by-case” basis.
Soon after the regulator’s announcement, ANZ’s chief executive for Asia Pacific, Europe & America Alex Thursby in March revealed the group might raise its equity interest to a controlling stake in four of the Asian banks in which it has stakes, including AMMB Holdings.
ANZ is the single largest shareholder in AMMB Holdings. The Australia-based banking group is permitted to raise its stake to 26.2% of AMMB’s shares as granted when it first bought the stake in 2007.
“Based on our forecast until 2014, we look very strong in terms of organic growth,” Cheah told the financial result briefing yesterday.
AMMB Holdings aims to increase its profit after tax and minority interest (Patmi) by 14% to 16% annually in the medium-term from 2012 to 2014.
The same range is also targeted for the group’s return on equity (ROE) ratio of 14% to 16%, which will be adjusted for Basel III impact. Historically, the group has been recording double-digit ROE growth averaging 11.5% to 13.6% from FY08 to FY11.
AMMB Holdings dropped off the list of the top five banking groups after Hong Leong Bank Bhd took over the banking assets of EON Capital Bhd recently. The group is now the sixth biggest in the country in terms of assets.
Cheah did not rule out any potential mergers and acquisitions by any financial groups, and noted that the banking group would not “close its eyes” in any corporate exercise that could take place.
“Any corporate exercise that we do must bring value to every stakeholder of the bank. As you know, we have looked at some other [exercises] before and some did materialise, such as the insurance bank,” he explained.
To recap, AMMB Holdings, in which Australia and New Zealand Banking Group Ltd (ANZ) holds a 23.8% stake, was in the spotlight some months ago when the authorities made known that it would consider allowing up to 49% foreign shareholding in local banks on a “case-by-case” basis.
Soon after the regulator’s announcement, ANZ’s chief executive for Asia Pacific, Europe & America Alex Thursby in March revealed the group might raise its equity interest to a controlling stake in four of the Asian banks in which it has stakes, including AMMB Holdings.
ANZ is the single largest shareholder in AMMB Holdings. The Australia-based banking group is permitted to raise its stake to 26.2% of AMMB’s shares as granted when it first bought the stake in 2007.
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| Cheah sharing a light moment with AmBank deputy group MD and CFO Ashok Ramamurthy at the announcement of AMMB Holding Bhd's FY2011 full year financial results yesterday. |
Other substantial shareholders are the founder Tan Sri Azman Hashim’s Amcorp Group, which holds 16.8% and the Employees Provident Fund (EPF) with 12.6%.
In its annual financial results announcement yesterday, AMMB Holdings said it expected loan growth of 10% to 12% for FY12, in line with the expected industry-wide growth that is twice the rate of GDP growth.
The banking group’s Patmi grew 33% to a record high of RM1.34 billion. This represents a ROE of 13.6% and earnings per share (EPS) of 44.7 sen.
“The results are slightly higher than our guidance and were underpinned by our diversified portfolios, growth in profitable and viable segments, new business initiatives, and higher non-interest incomes,” said Cheah.
The group’s profit after tax (PAT) grew by 33.4% year-on-year (y-o-y) due to broad-based earnings growth and lower impairments, and well diversified divisional contributions, according to a statement released by the group yesterday.
In retail banking, PAT increased 14.4% to RM603.3 million as the division accelerated deposits growth, which increased 13.9% y-o-y and expanded assets focusing on profitable segments and pricing risk.
Other divisions also recorded double-digit growth in terms of profitability except for market divisions, where PAT increased by 4.2% to RM177 million. However, the segment saw greater income contribution from foreign exchange and derivatives business, while lower impairments for available for sale (AFS) was recorded.
On a divisional basis, the Islamic banking arm of the group contributed 12.3% of the group’s PAT.
In its annual financial results announcement yesterday, AMMB Holdings said it expected loan growth of 10% to 12% for FY12, in line with the expected industry-wide growth that is twice the rate of GDP growth.
The banking group’s Patmi grew 33% to a record high of RM1.34 billion. This represents a ROE of 13.6% and earnings per share (EPS) of 44.7 sen.
“The results are slightly higher than our guidance and were underpinned by our diversified portfolios, growth in profitable and viable segments, new business initiatives, and higher non-interest incomes,” said Cheah.
The group’s profit after tax (PAT) grew by 33.4% year-on-year (y-o-y) due to broad-based earnings growth and lower impairments, and well diversified divisional contributions, according to a statement released by the group yesterday.
In retail banking, PAT increased 14.4% to RM603.3 million as the division accelerated deposits growth, which increased 13.9% y-o-y and expanded assets focusing on profitable segments and pricing risk.
Other divisions also recorded double-digit growth in terms of profitability except for market divisions, where PAT increased by 4.2% to RM177 million. However, the segment saw greater income contribution from foreign exchange and derivatives business, while lower impairments for available for sale (AFS) was recorded.
On a divisional basis, the Islamic banking arm of the group contributed 12.3% of the group’s PAT.
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