Ambank’s quarterly profit up by 27%

Ambank Group recorded a profit after tax and minority interests of $731.34 million for the first quarter of its financial year ending 31 March 2010, thanks to its Retail Banking business. This represents an increase of 27 percent over its previous corresponding quarter and annualised earnings per share of $.1074 and post-tax return on equity of 13.1 percent.

"The strong performance in Q1FY10 reflects the Group’s sound and diversified business fundamentals. It has set the foundation to deliver on our FY2010 guidance," said Mr Cheah Tek Kuang, Group CEO and Managing Director of AHB. "The Group has strong capital positions to stay resilient and support business growth. We have also adopted prudent provisioning measures to combat potential credit deterioration in the quarters ahead due to economic contractions," Mr Cheah added.

Before tax, profit at 100.1 million rose 29.2 percent over Q1FY09. Excluding one-off adjustments, profit after tax and minority interest for Q1FY10 was higher at $74.4 million, compared to $57 million previously.

Investment Banking division was able to leverage its market leading positions and the recovery in capital markets to grow its quarterly profits by 163.9 percent. Better claims experience in the Assurance division led to a 332.5 percent improvement in its profit performance.

Retail Banking remained the largest contributor to Group profits in absolute terms, sustaining its performance level as it increasingly focuses on preferred target segments. Business Banking contributed $6.9 million profits whilst Relationship Banking and Regional Business generated $5.66 million in profits.