Despite economic and geopolitical uncertainties, the Group recorded solid growth for the financial year. We registered a 7.8% increase in revenue from RM3,922 million in FY2019 to RM4,227 million in FY2020, propelling AmBank Group as one of the Top 3 Banks in Malaysia in terms of revenue growth. The Top 3 ranking also extends to the growth of both Total Loans and Total Deposits, which registered a 5.3% growth (RM107.2 billion) and 5.7% growth (RM113.0 billion) respectively. Our Loan-to-Deposit ratio stood at 94.9%. The Group’s Net Interest Margin (NIM) rose by 5 bps to 1.94%, the second-highest growth in the industry and a significant advantage compared to industry peers who are largely recording negative growth. As such, AmBank Group is placed within the Top 3 Banks for NIM improvement, as well as for our underlying Return on Equity (ROE) growth.

Net Profit After Tax and Minority Interests (PATMI) declined by 10.9% to RM1,340.7 million. Underlying PATMI was up 15.4% (adjusted for the gain on retail debt sales of RM285 million in FY2019 and the macro provision of RM167.3 million in FY2020). We saw an 18.3% growth in Profit Before Provision (PBP) to RM2,119 million. With this double-digit growth, we are placed in the first position within the industry in terms of PBP growth.

In addition, we achieved the number one ranking in our Net Interest Income (NII) growth which grew 7.5% to RM2,774 million in FY2020. We also ranked first for our improvement in Cost-to-Income ratio, which improved from 54.3% in FY2019 to 49.9% this financial year primarily due to the BET300 cost-saving initiative, in which we saved RM380 million in costs over three years against a RM300 million target. AmBank Group also took the top spot in Current Account Savings Account (CASA) growth, recording a strong growth of 15.9% from the previous year. The Group has been building its CASA base steadily through AmSignature Priority Banking, customised cash management solutions, JomPAY and enhanced digital capabilities for business customers such as e-AmBiz and AmAccess.

The dynamics of banking is changing as digital boundaries continue to blur. The consumer market, which is now dominated by Millennials and Gen-Y, are expecting smarter, faster and more accessible financial services. This bodes well for AmBank Group given our focus on delivering products and services that cater to the evolving needs of our customers, thus allowing us to remain competitive amidst this fast-changing era of globalisation.

During the financial year, we recorded a significant step forward in digital solutions to better serve our customers. We introduced the Wealth feature on AmOnline, our flagship online and mobile banking platform. The new feature is designed to make investments simpler and more accessible to budding investors. Furthermore, we launched AmAccess Biz and AmAccess Corporate to provide an easier and faster way for non-retail and corporate segments to manage their day-to-day business banking. The platform includes innovative features such as digital tokens, DuitNow payments and foreign remittance. To this end, we are also working towards incorporating new features in AmAccess Biz, such as FPX and Payroll functions, which will be introduced to customers in phases.

Furthermore, we are continuously enhancing our AMYTM Chatbot, a virtual financial assistant that is the first of its kind in Malaysia, designated to provide critical customer support on our AmOnline platform. Since its launch in 2018, we have seen significant growth in the number of customers who utilise AMYTM and AmOnline for services such as credit card application, card activation, pin reset, and credit limit increase. Almost all card application status checking is now done through AMYTM.

As a result of its convenience and effectiveness, AmBank Group was bestowed the Best Automated Chatbot Initiative, Application or Programme Award from the Asian Banker. Apart from this, our digital efforts were also recognised with several other awards, including the Most Innovative Mobile Banking App and Best Mobile Banking App from The Global Business Outlook Awards 2019, and the Best Retail Mobile Banking Experience and Best Wealth Management Experience from The Asset Triple A Awards 2020.

Small and medium-sized enterprises (SMEs) are not only an important customer segment to AmBank Group, but also embody the backbone of the Malaysian economy. SMEs represent over 98% of business establishments in Malaysia and contribute to more than 38% of the national GDP. With this in mind, AmBank Group is committed to supporting the SME ecosystem, leveraging on the opportunity to tap into the segment’s market potential while contributing to economic development.

Through AmBank Group’s BizCLUB events, we enabled over 5,000 SMEs and private business owners from across the country to hear directly from some of the top trainers and business leaders on topics pertinent to their business growth. This includes leadership, understanding their business health, HR readiness, and business culture. Through these events, AmBizCLUB aims to support the scaling and growth of SMEs into competitive and lucrative businesses.

In May 2019, BizCLUB launched the BizCONFERENCE: SME Beyond Financing Series, covering four key business areas – the Internet of Things, the Halal industry, Digital Marketing & Branding, and Building a Green Business. The series was organised in an effort to provide the 900 participating SMEs with an understanding of these crucial topics. On top of that, the conferences also served as a networking platform for the SME community, bringing together business owners, subject matter experts and pioneers from a wide range of industries. Following on the heels of success of our AmBank BizRACE last year, we continued organising the BizRACE this year. Established as a platform where SMEs can connect and showcase their business ideas, we sponsored the top five finalists for a learning field trip to China, providing them with an opportunity to network and exchange insights with major industry players, including Alibaba Group, Food Vending China, Zendai Group and many more.

Furthermore, as part of the Group’s vision to grow, nurture and help businesses graduate from cradle to Initial Public Offering (IPO), the “Road to IPO” initiative was launched in November 2019 to educate and guide our SME customers in their journey towards becoming a publicly listed company. The inaugural event saw participation from high-potential customers who were guided on the benefits of embarking on an IPO; the potential risks and upsides to consider; and the requirements needed to take their company public.

The Group also has various channels in place to ease the financial burden of business owners who are facing difficulties during these unprecedented times. We strive to provide the provision of additional value for their operating account, payroll and transactional services as well as quick access to working capital financing, amongst others. In FY2020, AmBank Group contributed RM20.6 billion to the SME sector through loans and financing, with 19% of our total loan portfolio consisting of these businesses.

As a testament to our extensive initiatives in support of SMEs, we have been established as one of the leading SME banks in Malaysia. Throughout the year, we were awarded several accolades, including the SME Bank of the Year in Malaysia from Asian Banking & Finance Awards 2019; Best SME Bank in Malaysia from Alpha Southeast Asia Best Financial Institution Awards 2019; Best SME Bank Malaysia 2019 from Global Banking & Finance Awards (2nd consecutive year); and Best Islamic Finance SME Bank Malaysia from Alpha Southeast.

In this day of globalisation, AmBank Group recognises the need to work with partners from different fields and industries, delivering propositions with the best interests of our customers in mind to win in this changing environment. As such, we focus on building cross-industry partnerships with both banking and non-banking players.

During the financial year, we partnered with Maxis to expand our support for SMEs in Malaysia; leveraging and harnessing the power of technology and data-driven insights to provide personalised offers to SMEs. As a result, we were able to successfully launch the “SME-in-a-Box” bundled proposition which aims to help businesses migrate onto e-commerce platforms to provide SMEs with much-needed telco and financing facilities, especially in these challenging times.

FY2020 was an exciting year for us as we achieved multiple ‘Firsts’ in terms of partnerships. In February 2020, AmBank Group entered into a collaboration with Rakuten Trade (Rakuten), a joint venture between Malaysia’s leading independent investment bank, Kenanga Investment Bank Berhad and Japan’s Rakuten Securities, Inc. which is part of the Rakuten Group. This makes AmBank Group the first bank to provide business-to-business (B2B) Application Programming Interface (API) services via real-time retail payments (RPP) DuitNow. Through this bespoke solution, we facilitated Rakuten’s non-face-to-face customer onboarding verification by leveraging PayNet’s DuitNow platform via this API, succeeding their traditional customer onboarding method. We also provide First-Party Account verification to Rakuten Trade, which is part of the Securities Commission (SC)’s onboarding requirements.

We are also working with our partners Shell and Parkson, as shareholders of BonusLink, to transform BonusLink loyalty and rewards to a more strategic play by expanding into currency and wallet payment solution.

AmBank Group also partnered with LUNO, the first regulated cryptocurrency exchange in Malaysia. LUNO, which is based in London, facilitates cryptocurrency storage and transactions such as buying, selling and paying through their customers’ cryptocurrency wallet services. They also operate an exchange between traditional currencies and cryptocurrencies. As the primary banker appointed by LUNO to support the operations of its exchange, AmBank Group is the first conventional bank in Malaysia to offer such banking services. Through this partnership, we facilitate the screening of LUNO’s pre-approved customers during the onboarding process, while also providing Cash Management Solutions that facilitate transaction reconciliation, report on collections, and fund transfer payments received from LUNO customers. Currently, we are in the midst of onboarding LUNO onto a Financial Payment Exchange (FPX) channel, allowing first-party fund transfer into LUNO’s Trust Account before purchasing a cryptocurrency. Subsequently, we will also onboard LUNO onto DuitNow Payment API for a more efficient settlement (selling of cryptos for MYR) process with faster turnaround time.

AmBank Group is also the first local bank in Malaysia to partner with UnionPay for a credit card collaboration. Through this collaboration, we are able to leverage on UnionPay’s strong global presence while also gaining access to the organisation’s exclusive deals, ultimately offering new channels for the Group. This includes the U Collection, a global privilege programme that brings together hotels, shopping and specially-curated dining offers for its premium cardholders.

Under the AmBank BizM.A.T.E. programme, we forged partnerships with businesses across various industries to build on the innovative tools that we offer our SME customers to grow their business and improve productivity. Throughout the year, we successfully established 19 strategic partnerships with key players, such as Maxis, Microsoft, DiGi, GDex, Boost and iPay88. We are confident that our efforts are in line with the aim of the programme to improve SME’s scalability in the most cost-efficient manner, delivering products and solutions that help digitise and manage their businesses from the ground up.

During the year, AmBank Islamic also entered into a collaboration with Amanah Raya Berhad to offer legacy planning solutions. This enables our customers to seek will writing services at AmBank Group branches, including at AmBank Signature Priority Banking centres nationwide, thus providing an additional revenue stream to the Group. The new service aligns with AmBank Islamic’s strategy to offer a complete suite of wealth management products and services, including wealth distribution.