MAYBANK INDONESIA NETS 932.7B RUPIAH

Slight reduction in Patami due to lower fee-based income, compression in net interest margin, says lender

PT Bank Maybank Indonesia Tbk (Maybank Indonesia) has reported profit after tax and minority interest (Patami) of 932.7 billion rupiah (RM264.37 million) for the six months ended June 30, compared with 998.5 billion rupiah in the previous corresponding period.

The slight reduction in Patami was due primarily to lower feebased income and slight compression in net interest margin.

Business was impacted by subdued economic conditions in the first semester of the year, it said in a statement.

The solid growth of syariah business, better asset quality and significant improvement in subsidiaries were the highlights of the bank’s six months performance.

The bank also managed its overhead costs effectively, which saw a 3.2 per cent reduction from 3.1 trillion rupiah to 3.0 trillion rupiah for the first half of this year, due to sustained strategic cost management across business lines and supports units.

Syariah banking continued to record strong performance in the first six months with total assets increasing by 31.4 per cent to 29.2 trillion rupiah, making up 17 per cent of its total assets.

Total syariah financing rose 42.2 per cent from 16.2 trillion rupiah in June last year to 23 trillion rupiah last month, while total deposits grew 38.8 per cent from 13.5 trillion rupiah to 18.8 trillion rupiah.

The bank’s non performing financing improved significantly to 2.9 per cent as of last month, compared with 3.9 per cent the previous year.

The bank saw a loans growth of six per cent to 127.1 trillion rupiah as at June 30 from 119.9 trillion rupiah in the same period the previous year.

Net interest income registered a 2.5 per cent growth to 3.9 trillion rupiah as of last month compared with 3.8 trillion in the previous corresponding period.

Capital adequacy ratio (CAR) improved to 18.8 per cent as of last month from 16.9 per cent in the previous corresponding period, with total capital reaching 24.7 trillion rupiah.

President director Maybank Indonesia Taswin Zakaria said the bank’s focus remained on growing assets selectively while maintaining the discipline in loan pricing to ensure sound asset quality going forward.

President commissioner of Maybank Indonesia and group president and chief executive officer of Malayan Banking Bhd Datuk Abdul Farid Alias said the semester of this year had been as challenging as last year following subdued market conditions.

“We intend to maintain a prudent approach in pursuing growth by focusing on quality, as well as effective management of costs and liquidity.

“Our digital transformation agenda across the Group will equip the bank to grow our customer base in a cost effective manner and prepare our employees to adapt to the changes that the digital world brings,” he added.

We intend to maintain a prudent approach in pursuing growth by focusing on quality, as well as effective management of costs and liquidity. DATUK ABDUL FARID ALIAS Maybank group president and chief executive officer