AMMB posts most disappointing operating results in CY15

Operating profit was down 21% YoY.

According to Maybank Kim Eng, at the operating profit level, CIMB and Maybank fared the best in CY15, with operating profit growth of 19% and 12% respectively. AMMB was operationally the weakest with a 21% contraction in its operating profit.

Here's more from Maybank Kim Eng:

CIMB’s net interest income expanded 8% YoY, supported by robust loans growth of 12.5% YoY, mitigated by a 14bps compression in NIM. Excluding the forex translation effect, loan growth would have been just 6.6% YoY. Non-interest income (NOII) rose 15% YoY due to large investment gains during the year.

Maybank’s net interest income expanded 15% YoY, principally because NIMs were stable YoY while loans increased 10% YoY (+5.7% excluding the currency effect). NOII rose 5% YoY, due mainly to higher forex profits in 2015.

AMMB’s CY15 operating profit contracted 21% YoY. Net interest income fell 17% YoY principally because of a hefty 40bps contraction its CY15 NIM, while loan growth was flat. NOII slipped 5% on weaker capital market activity.

Loan loss allowances jumped YoY for all banks, with the exception of AMMB, which eked out net credit recoveries during the year. As a result, the core net profit for all banks in our coverage declined YoY except for CIMB and Public Bank. CIMB’s profit growth in FY15 was essentially from a low base in FY14. So as mentioned earlier, the only bank to really have outperformed in 2015 was Public Bank.