Maybank Indonesia profit improves to RM1.32bil

KUALA LUMPUR: PT Bank Maybank Indonesia Tbk (Maybank Indonesia) posted an operating profit before provision of 4.6 trillion rupiah (RM1.32bil) for the year ended Dec 31, 2017, up from 4.4 trillion rupiah (RM1.26bil) in the previous year.

In a statement yesterday, Maybank said this was due to its 97.4%-owned subsidiary’s continued improvement in operational efficiency, better fee-based income, strong performance in global banking, sharp growth in syariah banking and improved performance of subsidiaries.

Maybank Indonesia’s net interest income rose by 3.7% to 7.7 trillion rupiah (RM2.2bil).

Net interest margin inched up from 5.1% to 5.2% despite pressure in loans yields, as the bank continued to implement discipline in loans pricing and active funding management, it said.

Meanwhile, the bank’s fee-based income jumped nearly 8% to hit 2.7 trillion rupiah (RM772.05mil), it said.

Loans growth was moderate, rising 3% to Rp 125.4 trillion (RM35.86bil) in December 2017 from a year earlier. Retail banking loans shrank by 4.1 per cent due to slowdown in the consumer sector.

On a positive note, Maybank Indonesia’s non-performing loan (NPL) level had fallen to 2.8% (gross) and 1.7% (net) in December 2017 from 3.4% (gross) and 2.2% (net) in the previous year.

“The bank took the opportunity to sell several legacy NPLs, as well as, to fully provide and write off legacy NPLs as part of ongoing efforts to clean up its credit portfolio.

“The bank also continues to remain conservative in managing asset quality and takes a proactive stance on the credit facilities of customers impacted by the challenging economic environment,” it said.

Maybank Indonesia’s liquidity was well managed and ample throughout the year, the bank said.

Its loans-to-deposit ratio (bank only, excluding subsidiaries) remained healthy at 88.1% while the liquidity coverage ratio stood at 144.1% in the last quarter of 2017, exceeding the mandatory minimum of 90%.

Maybank Indonesia president director Taswin Zakaria said the bank went through “challenging year”.

“Despite our modest loan growth, we managed to book income from other sources such as transactional fees and through increased operational efficiency. — Bernama