AMMB Holdings Bhd’s net profit for its first quarter ended June 30 fell 6.7% to RM365.17 million from RM391.46 million in the same quarter of the previous year, due to a decrease in interest income resulting from the Overnight Policy Rate cut.According to its Bursa disclosure, the retail banking division’s profit after tax increased marginally by 1% to RM71.5 million. Its business banking division saw PAT increase by 5% to RM30.
On the other hand, the group’s profit after zakat and taxation for its Islamic banking division fell by 15.7% to RM71.7 million mainly due to net modification loss, while it’s PAT for general insurance fell by 8.4% to RM74.8 million. Sulaiman said with further reductions in the OPR to support the economy and ample liquidity in the banking system, net interest margin compressed further and, as a result, net interest income fell 8.3% year on year.