AmBank Targets 7-8% Loan Growth in FY27 Amid Market Competition

AMMB Holdings Berhad, operating as AmBank, is targeting loan growth between 7% and 8% for the 2027 financial year. This projection is supported by sustained demand from the business segment, which continues to find value in the group's financing offerings.

Group Chief Executive Officer of AmBank, Jamie Ling, stated that the bank's current loan growth stands at approximately 7%. He anticipates further expansion in the latter half of the year, dependent on prevailing market conditions and the competitive landscape. "We certainly have higher targets and are now achieving seven percent growth, supported by many businesses that see value in our growth," Ling said.

AmBank reported a net profit of RM520.23 million for the first quarter ending June 30, 2026, a slight increase of 0.8% from RM516.18 million in the same period last year. This growth was primarily driven by an increase in net interest income. The banking group's earnings per share also saw a marginal rise to 15.73 sen from 15.64 sen a year prior.

Regarding the group's Net Interest Margin (NIM), Ling expects it to remain stable, hovering between 1.90% and 1.93% this year. This stability is anticipated despite pressures from a reduction in the Overnight Policy Rate (OPR) and intense competition in the loan market. For the 2026 financial year, the group's NIM was 1.98%, an improvement from 1.93% recorded the previous year. Ling noted that the 50 basis point OPR cut impacts about 80% of the base rate-based loan portfolio, contributing to NIM pressure compared to the previous year. Competition for assets also pressures margins, but AmBank has chosen not to be overly aggressive in the mortgage segment to support its margins. The bank also reduced its funding in the small and medium enterprise (SME) portfolio due to its risk profile, which also affected margins.