MARCH 2017 PP190007/06/2016(034514) No. 138 ambankgroup.com AmBank Group hosts Chinese New Year Open House 2017 (Pg20) • AmBank Group Reports AmBank Group Appointed as Agent of Amanah Saham Net Profit of RM989 million Nasional Berhad (Pg15) for 9M FY2017 (Pg5) 2 message relation to Anti Money Laundering and We also rolled out a new initiative to Counter Financing of Terrorism (AML/ increase public awareness and knowledge CFT) to help increase awareness and on various AmAssurance products and understanding amongst AmBankers services. We are currently organising the in conducting business compliantly. AmAssurance on Tour which features a Hence, all of us must be professional van that is stationed at different AmBank and diligent in our approach and have a branches across the Klang Valley daily, for sense of responsibility and accountability the next three months. The AmAssurance in the way we conduct business. on Tour van is a great platform for the public We also hosted the Customer to know more about our Banca products. Appreciation Dinner to our valued clients AmBank was the Official Bank Partner as our way of showing appreciation organised by The Star at the Quest for their endless support and also to Entrepreneurs Mastery Convention 2017. relaunch the AmBank Signature Priority The event was an accomplishment. Banking. It is certainly an occasion to be Successful mentors and business coaches connected with all our clients and engage sharing their expertise and inspiring the with our valued customers of the Group. young and budding entrepreneurs, it I would like to say thank you to came as no surprise that the Convention Datuk Mohamed Azmi Mahmood for attracted such a good turnout. his valuable contribution and support Our sports club, Kelab AmBank Group during his illustrious 36-year career with (KAG), continues to actively promote events The proposed merger between AmBank the Group. I wish him continued good to bring staff together, including the Jungle Group and RHB Banking Group is an health, happiness and success in his Trekking Series to Forest Research Institute ongoing process which is still in its future undertakings. Malaysia (FRIM), Bukit Gasing and Broga early stages. However, I feel that it is AmBank Group continues to be Hills. I am very pleased to see our Fourth imperative for all AmBankers to be kept recognised by various awards for its edition of Carvinal Candat Sotong had up to date concerning this matter, as it exceptional performance. Recent received participants from Johor, Kuantan, paves the way for AmBank in becoming awards include three top awards won at Melaka, Seremban and Kota Bharu. I want one step closer to being one of the Alpha Southeast Asia Deal and Solution to thank everyone for their hard work in Top Four banks in Malaysia. Given Awards in Putrajaya early of this year making these events a success. the challenging state of the banking were “Best Wakalah Deal of the Year in To all AmBankers, I would like to again industry in Malaysia, a merger of this Southeast Asia” award for its roles as thank you for your continued support and nature will allow us to tap onto greater the principal adviser, lead arranger and dedication. I am confident that with our opportunities. New possibilities for joint lead manager in the Lebuhraya collective efforts, we will be able to continue career advancement and professional DUKE Fasa 3 Sdn Bhd’s RM3.64 billion to grow, outperform and stay connected. development will certainly open up Sukuk Wakalah, joint principal adviser, as the merger is expected to lead us joint lead arranger and joint lead manager into a much bigger league. As we look in the “Best Murabaha Deal of the Year towards this merger, we urge every one in Southeast Asia” for Al Dzahab Assets of you to come together and work to Berhad’s RM900.0 million Asset-Backed see the creation of new banking Group Sukuk Murabahah deal and the – one that you will be proud of. “Best Secondary Deal of the Year” In terms of operations, there will be for Malaysia Building Society’s RM1.71 Tan Sri Azman Hashim ongoing initiatives and campaigns in billion Rights issue. Chairman, AmBank Group TOTAL ASSETS MARKET CAPITALISATION NO. OF EMPLOYEES AmBank Group RM134.8 billion RM14.0 billion 11,000 at a Glance SHAREHOLDERS’ EQUITY SHARE PRICE BRANCH NETWORK RM16.1 billion RM4.65 per unit 175 AS AT 31 MARCH 2017 AS AT 31 MARCH 2017 AS AT 31 MARCH 2017 Editor: Syed Anuar Syed Ali, Head, Group Corporate Communications and Marketing, AmBank Group Contributors: Engku Ili Hanisah Engku Zainal Abidin, Sheila Md Diah, Somesh Naidu, Mohamed Radzi Ali, Jeevanaraj Pariyadan and Shiffa Abdul Aziz. Published by AmBank (M) Berhad (Company No. 8515-D) Design & Production: Duocore Creatives Message from Group Chief Executive Officer 3 from RM50 million to RM150 million, primarily Group Legal will be realigned from looking at discretionary lending. Group Risk to GCEO Office, Corporate Services as an independent corporate Group Information, Operations and service provider to the group. 2 Digital Banking (GIOD) For greater synergy, Group Operations, Group Group CEO Office, Information System and Digital Banking have 5 Corporate Services now been consolidated and aligned into A new Corporate Services department will Group Information, Operations and Digital be established under the purview of the Banking (GIOD), reporting to Datuk Iswaraan Group CEO. Included under the umbrella Suppiah, Group Chief Operations Officer. of Group CEO Office, Corporate Services The Virtual Banking and ATM monitoring are: team will be realigned to GIOD from Retail • Group Transformation Office Banking, to streamline digital customer • Chief of Staff Office Reorganising touchpoints (excluding branches and Contact • AmBank Research Centre). • Group Legal Ourselves: The Connected team from Group • Group Corporate Communications Staying Laser-Focused Operations previously, will be parked under and Marketing in FY18 the Group CEO’s Office, to facilitate timely • Group Administration communications internally. • Group Strategy Dear fellow AmBankers, Retail Banking Despite these changes internally and Financial Year 2018 will be a critical 3 As we continue to focus on enhancing inevitable competition from other industry year for us on our journey to Top 4. We are customer experience, the Service Resolution players externally, we must remain now poised to accelerate and intensify our team from Group Operations will be realigned focused and united in our goals. I urge efforts in the second year of our strategy. to the Contact Centre at Retail Banking, all AmBankers to maintain our spirit In line with our transformation journey, which is led by Jade Lee who is the Managing of collaboration and teamwork. I am there is a need to restructure and ensure Director of Retail Banking. Customer confident that together with our new greater synergy and efficiencies. There will complaints will now be routed to a centralised leadership team, AmBank Group is well be some organisation changes internally coordination and resolution team for more on track to strengthen our position and effective 1 April 2017. effective management of complaints and foothold. We must continue to strive speedier resolutions. forward and stay laser-focused this year in Business Banking our journey towards being the Top 4 bank A new Line of Business has been Group Risk 1 in Malaysia. set-up under the helm of Christopher Yap, Group Loan Rehabilitation will be 4 Once again, thank you for your Managing Director, Business Banking, realigned from Group Operations into Group continued commitment, focus and drive. comprising Enterprise Banking (EB) and Risk under Jeroen Thijs, our Group Chief With your support, I believe AmBank will Commercial Banking (CB). Risk Officer (GCRO). This is in line with the rise to even greater heights. EB will focus on businesses with GCRO’s role to manage risk and recoveries. a turnover of less than RM50 million, The Business Process Architecture team from primarily looking at working capital loans Group Operations will also move into Group Dato’ Sulaiman Mohd Tahir under programmed lending. This will Risk. Group Chief Executive Officer drive flow business of FX and trade. A new credit risk team for business AmBank Group Meanwhile, Commercial Banking will focus banking will be created to provide more focus on businesses with a turnover ranging and rigour on business banking loans. In line with our transformation journey, there is a need to restructure and ensure greater synergy and efficiencies. Dato’ Sulaiman Mohd Tahir Group Chief Executive Officer, AmBank Group 4 business AmBank Group Reports Net Profit of RM989 million for 9MFY2017 AMMB Holdings Berhad (“AmBank Group” or “the Group”) announced the financial results for the 9 months ended 31 December 2016 (9MFY2017) on 24 February 2017. Q3FY2017 Financial Highlights¹ (Q3FY17 vs. Q2FY17) • Quarterly PATMI at RM313 million, • Gross lending rose 3% year-to-date (YTD) up 4% on Q3FY16. to RM90.7 billion, supported by growth in • Net interest income grew 5% on higher Mortgages (15%), SME (11%) and Trade NIM of 2.02% (up 10bps) reflecting active (13%) loans, partly offset by contraction in margin management. Auto Finance and Corporate loans. • Given the heightened pressures on the • Deposits of RM86.7 billion, contracted Malaysian bond market, our results for 4% YTD due to our efforts in managing NIM the nine months under review was reflecting focus on balancing funding costs. impacted in terms of non-interest income. CASA grew 2% YoY. This was partially alleviated by an increase • Asset quality improved with gross impaired in fee income from loans and trade loans ratio at 1.54%, down 40bps since finance. FY16. • Impairment charge was stable • Sound liquidity with liquidity coverage ratio underpinned by sound asset quality above regulatory requirement. CET 1 ratio and recoveries. higher at 11.6%².