Malaysian ops remain strong

KUALA LUMPUR: Profit from Maybank Islamic Bhd’s Indonesian market has been expanding at an encouraging 50 per cent rate year-on-year due to the large Muslim population, but it will not overtake Malaysia anytime soon.

Maybank Islamic chief executive officer Datuk Mohamed Rafique Merican said in terms of banking assets, Indonesia contributed only five per cent, versus 20 per cent in Malaysia.

“It will be an important contributor but it is difficult to say, as it depends on where the growth momentum will take us and whether Malaysia’s ‘enabling environment’ can be replicated there,” he told NST Business.

In the case of Malaysia, the Employees Provident Fund and Tabung Haji contribute to the enabling environment as they seek syariah-compliant assets. The Securities Commission and Bank Negara Malaysia also have structures to enable the broader Islamic finance expansion.

Maybank has 420 branches in Indonesia.

“Our intent is not to have more branches but to increase the penetration and engagement through relationships,” said Rafique.

In terms of bottom line, the Malaysian operations still contribute the lion’s share, at about 88 per cent, followed by Indonesia and Singapore.

“When it comes to size, we will not be the biggest, compared with PT Bank Mandiri in Indonesia or DBS Bank in Singapore.”

PT Bank Maybank Indonesia Tbk recorded a net profit after tax and minority interest of 1.4 trillion rupiah (RM436.76 million) for the first nine months of the year, a 12 per cent increase from 1.3 trillion rupiah previously.

A key growth driver for Maybank Indonesia would be to expand its fee income streams through structured products and e-channel transactions.

Rafique is looking at targeted sectors to expand the growth of the Indonesian market.

“The Indonesian government is creating a conducive environment and allowing us to promote syariah banking through product development or engagement with their corporates.”

On the Middle East, Rafique said there had been more good conversations in terms of sharing ideas and collaboration.

“I don’t think there are major roadblocks in terms of collaborating with other Islamic banks and Gulf Cooperation Council.”