MAY­BANK Q1 EARN­INGS JUMP 19.3PC

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

New Straits Times - - Business -

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.

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