MAYBANK Q1 EARNINGS JUMP 19.3PC

RM1.7b net profit on back of improved net interest margin, substantially lower net impairment losses

KUALA LUMPUR

MALAYAN Banking Bhd (Maybank) saw its net profit grow 19.3 per cent to RM1.7 billion in the first quarter ended March, as it booked more loans and benefited from an improved net interest margin and substantially lower net impairment losses.

In a statement, Maybank chairman Datuk Mohaiyani Shamsudin said the encouraging financial performance validated the profitability and asset quality measures that the banking group adopted over the last year.

Maybank, Southeast Asia’s fourth largest bank by assets, said net operating income for the quarter rose three per cent to RM5.55 billion compared with a year earlier — boosted by a 21.4 per cent rise from Islamic banking, 18.3 per cent from insurance and takaful, and nine per cent from financial services.

Group president and chief executive officer Datuk Abdul Farid Alias said the continuous growth in the group’s top line reflected Maybank’s inherent resilience and ability to grow as a result of its diversified operations.

Gross loans rose 10.1 per cent year-on-year, with financing from both the community financial services and global banking segments showing healthy expansion.

“Malaysian operations led this growth with a 7.2 per cent increase, followed by Indonesia and Singapore with seven and 6.4 per cent, respectively,” it said.

The group registered a steady rise in deposits of 4.5 per cent year-on-year to RM513.4 billion on the back of a 7.1 per cent increase in the international operations and 2.8 per cent increase in local operations.

Net impairment losses dropped 38.2 per cent to RM542.8 million, as Maybank continued to benefit from restructuring and rescheduling the credit facilities of customers impacted by the challenging economic environment.

Elsewhere in the region, Maybank Singapore’s pre-tax profit jumped 45.3 per cent to S$88.96 million (RM274.85 million) as net income rose 20 per cent to S$246.92 million on the back of a 37.3 per cent surge in net fee-based income and 13.3 per cent rise in net fund-based income.

Net profit for PT Bank Maybank Indonesia for the first quarter rose 10.4 per cent to 490.1 billion rupiah (RM157.69 million) on the back of higher net interest income, effective cost management, healthy growth in corporate loans and continued outstanding performance in syariah banking.

In the Philippines, Maybank Philippines Inc’s pre-tax profit jumped 77.6 per cent to 356.1 million pesos (RM30.55 million), outpacing the industry which contracted by two per cent, driven mainly by higher revenue and lower provisioning.