Maybank Indonesia posts record profit

PETALING JAYA: Maybank Indonesia has recorded a new high of 2.2 trillion rupiah (RM635.93mil) in its profit after tax and minority interests (Patami) for the financial year ended Dec 31, 2018.

This is an increase of 21.6%, on the back of higher net interest income and continued improvement in asset quality, which saw lower levels of non-performing loans (NPL).

Its profit before tax rose 20.5% to a record 3 trillion rupiah (RM867.18mil), its highest achievement to date.

“The recurring PBT rose 34.3% year-on-year after eliminating exceptional one-off proceeds mainly from the sale of securities in 2017.

“Better asset quality, a solid growth in syariah business, combined with improvement in subsidiaries as well as sustained strategic cost management also contributed to the bank’s improved performance,” it said in a statement.

The bank’s net interest income grew 5.2% to 8.1 trillion rupiah in December 2018 compared with 7.7 trillion rupiah in the previous corresponding period.

It also improved its net interest margin by seven basis points to 5.2%.

The NPL levels were lower at 2.6% (gross) and 1.5% (net), compared to 2.8% and 1.7% the previous year.

Coupled with a conservative management in asset quality, Maybank Indonesia was able to reduce its loan loss provisions by 38.6% to 1.3 trillion rupiah as of December 2018.

Loans grew at a sustained pace of 6.3% to 133.3 trillion rupiah

The bank maintained a strong capital position with a total capital reaching 26.1 trillion rupiah in FY2018 with a capital adequacy ratio of 19%.

A rights issue exercise completed in the first half last year raised two trillion ruppiah in Tier-1 capital.