Malaysia’s AmBank Islamic banking profit up 16 pct for three months to end-June

Malaysia’s AmBank Group’s Islamic banking business earned profit after zakat and tax of 84.986 million ringgit ($20.28 million) for the three months ending June 30, up 16 per cent from the same period last year.

The Group, whose financial year begins in April, filed its first quarter financial statements with Bursa Malaysia on Thursday.

Its Islamic banking income grew by 4.5 per cent to 215.9 million ringgit for Q1 FY20 versus the same quarter last year, with a 12.8 per cent reduction in operating expense due to its cost efficiency exercise, said the Group in a statement.

Its net impairment charge for Islamic banking increased by 4.7 million ringgit to reach 31.2 million ringgit for Q1 versus the same period last year.

Islamic banking assets stood at 39.1 billion ringgit at the end of Q1, down 7.5 per cent from the previous quarter, according to Salaam Gateway calculation.

Under the Group’s Islamic banking operations, deposits from customers dropped 8.6 per cent from the previous quarter to 28.459 million ringgit.

Financing and advances were almost flat at 28.461 billion ringgit from 28.922 billion ringgit in the previous three months.

Overall, assets for AmBank Group stood at 156.3 billion ringgit at June 30, down 1.6 per cent from the previous quarter.

The Group’s net profit rose 12.6 per cent to 391.5 million ringgit for Q1 FY20 versus the same period last year.

($1 = 4.19 Malaysian ringgit)

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