May­bank In­done­sia posts strong 9-month earn­ings

> Higher net in­ter­est in­come and fee-based in­come among the main con­trib­u­tors

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: PT Bank May­bank In­done­sia Tbk saw its net profit af­ter tax and mi­nor­ity in­ter­est (patami) regis­ter 1.3 tril­lion ru­piah (RM416 mil­lion) for the nine months to Septem­ber 2016, a 118.4% in­crease from 592.2 bil­lion ru­piah achieved in the first nine months of 2015.

A healthy rise in net in­ter­est in­come (NII), im­prove­ment in fee-based in­come, con­tin­u­ous cost man­age­ment ef­forts and out­stand­ing achieve­ment in syariah bank­ing con­trib­uted to the over­all im­proved per­for­mance for the pe­riod.

The bank re­ported a 14.8% in­crease in its NII to 5.5 tril­lion ru­piah in the quar­ter to Septem­ber 2016 from 4.8 tril­lion ru­piah in the pre­vi­ous cor­re­spond­ing pe­riod, at­trib­ut­able to the bank’s dis­ci­pline in loan pric­ing and ac­tive fund­ing man­age­ment. It also saw im­prove­ment in its net in­ter­est mar­gin (NIM) from 4.8% in Septem­ber 2015 to 5.1% in Septem­ber 2016.

The bank’s fee-based in­come rose 21.4% from 1.6 tril­lion ru­piah in Septem­ber 2015 to 1.9 tril­lion ru­piah in eSeptem­ber 2016, mainly driven by ban­cas­sur­ance fees from its new part­ner­ship with Al­lianz, trea­suryre­lated fees, re­tail ad­min­is­tra­tion and other ser­vices pro­vided by the bank.

Cost man­age­ment ef­forts have re­sulted in im­prove­ment of its cost-to-in­come ra­tio which im­proved to 55.9% in Septem­ber 2016 from 64.3% in Septem­ber 2015.

The bank recorded a mod­est loan growth of 4.4% as at Septem­ber 2016 to 116.4 tril­lion ru­piah from 111.5 tril­lion ru­piah at Septem­ber 2015. The bank’s SME and com­mer­cial loans growth con­tin­ued to be the back­bone, gen­er­at­ing 14.7% growth in rev­enue to 48.7 tril­lion ru­piah.

May­bank In­done­sia pres­i­dent di­rec­tor Taswin Zakaria said the bank con­tin­ued to demon­strate im­prove­ment at the op­er­at­ing level in the first nine-month pe­riod.

“Our core busi­ness per­for­mance sig­nif­i­cantly im­proved as our rig­or­ous risk and cost man­age­ment mea­sures as well as dis­ci­plined ap­proach to­wards pric­ing and growth are in place.

“We are op­ti­mistic to be able to con­clude the fi­nan­cial year of 2016 with com­mend­able re­sults,” he said.

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