AMMB's share price rise despite lower Q2 earnings

PETALING JAYA: AMMB Holdings Bhd’s share price rose 0.24% this morning despite reporting a lower net profit for the second quarter ended Sept 30, 2017.
At 11.05am, its share price was 1 sen or 0.24% higher at RM4.13 with a total of 290500 shares traded.
During the quarter, the group’s net profit fell 6% to RM331.47 million from RM352.63 million a year ago due to lower fee- based income and treasury related income from customer flows.
AMMB said its fee-based income declined during the quarter due to lower cards-related fees and incentive, transaction banking and fund management fees from lower volume.
Treasury-related income from customer flows was impacted by poor market sentiment, resulting in lower gains on derivatives cushioned by increase in revaluation of securities, while net income from insurance business declined due to lower premiums attributable to sluggish motor sales and impact from the de-tariffication policy.
Revenue for the quarter rose 1.2% to RM2.13 billion from RM2.1 billion a year ago as revenue from interest bearing assets increased, mainly due to interest on customer lending.
For the six months ended Sept 30, 2017, net profit fell 2.35% to RM659.74 million from RM675.63 million a year ago while revenue rose 1.04% to RM4.21 billion from RM4.16 billion a year ago.
The group has proposed a single-tier interim dividend of 5 sen for the financial year ending March 31, 2018 payable on Dec 28, 2017.