Our Key Performance Highlights

• Overall income remained resilient and in line with the previous year, amidst a tougher economic backdrop in the second half of the financial year:

  Good growth was achieved in net interest income underpinned by continued balance sheet expansion, offsetting net interest margin compression. In contrast, fee income was more subdued against a tougher economic backdrop which affected Investment Banking revenues significantly. Heightened market volatilities also resulted in a more cautious position taking with lower trading gains generated.

• Cost discipline and business efficiency were key drivers in improving our operating leverage, driving profit before provision up 15% year on year:

  Overall expense base fell 12.0% year on year, with cost-to-income ratio at 54.3% compared to 60.8% a year ago. This year, our BET300 initiatives generated approximately RM112 million in gross savings, enabling us to absorb salary inflation as well as allowing for higher investment related expenses in technology and digital infrastructure.

• Improved returns with ROE of 8.8%:

  The completion of retail debt sale and the resolution of several non-performing legacy corporate loans during the financial year further supported our earnings. These outcomes also reflect our commitment to release capital and improve capital efficiency as well as focus our collection resources on newer vintage delinquent loans.

• Strengthened our funding, liquidity and capital metrics:

  The Group’s CET1 and total capital ratio increased by 80 bps and 180 bps to 11.9% and 15.4% respectively through capital accretive growth and better risk weighted assets efficiency. The Group’s liquidity profile remains strong, and is already compliant with NSFR requirements. The Group received two credit rating upgrades this year; RAM upgraded AMMB Holdings Berhad, our financial holding company’s credit rating to AA2 from AA3 and AmBank (M) Berhad’s foreign currency rating was also upgraded by Moody’s to A3 from Baa1.

• Delivered total shareholders’ return of 21.1% during the year:

  The Group’s dividend per share of 20 sen per share compared to 15 sen per share in FY2018, taken together with the growth in share price over the past year represented a 21.1% total shareholder’s return over one year.

Strategic Review

We focus on these key areas

Wholesale Banking

• Building Cash Net Interest Income
• Enhance ROCE
• Grow Non-Interest Income
• Recalibrate Balance Sheet

Investment Banking

• Grow Private Banking Business
• Grow Retail and Institutional Businesses
• Focus on Strategic Bond Placements and Swaps
• Focus on Privatisation and Opportunistic Consolidation Play (Mergers and Acquisitions)

Retail Banking

• Capital
• CASA Drives
• Process Optimisation and Branch Digitalisation
• Compliance
• Collaboration

Business Banking

• CASA Focus
• Higher Risk-adjusted Returns
• Asset Focus
• FX
• Portfolio Actions
• Deposit Hunting Team

Digital and Group Information and Operations

• Protect the Enterprise from Cyber Threats
• Improve Price Performance
• Improve Business Resilience
• Build Business Capability

Create sustainable value for our shareholders,
customers, the community and the country

Sustainability

AmBank Group’s Sustainability Endeavours Contribute To Nine Out of The 17 UN SDGS

2

ZERO
HUNGER

3

GOODHEALTH
AND WELL-BEING

4

QUALITY
EDUCATION

5

GENDER
EQUALITY

8

DECENT WORK AND
ECONOMIC GROWTH

9

INDUSTRY. INNOVATION
AND INFRASTRUCTURE

11

SUSTAINABLE CITIES
AND COMMUNITIES

12

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

16

PEACE. JUSTICE
AND STRONG
INSTITUTIONS

Materiality Assessment

During the year, the AmBank Group Sustainability Stakeholder Engagement Survey was conducted. We reviewed our material sustainability matters which form the core of our SDG contributions, and streamlined them according to AmBank Group’s three key sustainability themes: Responsible Banking, Employer of Choice and Positive Societal Impact as follows:

RESPONSIBLE BANKING

We are committed to being a responsible financial services group.

Material Sustainability Matters:

• 1. Data Security, IT Infrastructure and Digital Transformation;
• 2. Customer Satisfaction;
• 3. Ethics, Governance and Compliance;

• 4. Responsible Marketing, Product and Service Design;
• 5. Financial Inclusion and Responsible Lending;
• 6. Responsible Sourcing and Procurement

EMPLOYER OF CHOICE

We recognise the need to maintain an engaging and inclusive workplace that lets people achieve their aspirations.

Material Sustainability Matters:

• 7. Conducive & Inclusive Workplace and Human Capital Development

POSITIVE SOCIETAL IMPACT

We contribute to a more sustainable future by considering carefully our business decisions, the environmental impacts of our activities and how we interact with our wider communities.

Material Sustainability Matters:

• 8. Environmentally and Socially Responsible Investments;
• 9. Community Investment and Development;
• 10. Energy, Water and Waste Management

Stakeholder Engagement

Awards