Maybank nine months profit up 18pc
Maybank nine months profit up 18pc due to steady growth despite challenging environment. Strong growth across most business sectors including international operations.Group Islamic Banking PBT surpasses full-year RM1 billion target in 9 months. Asset quality continues to strengthen; Net Impaired Loan Ratio improves further to 1.22%. Strong Risk Weighted Capital Adequacy Ratio of 16.71% (after 88% DRP reinvestment rate and equity placement).
Maybank today reported profit after tax and minority interest (PATAMI) of RM4.29 billion for the nine months ended 30 September 2012, up 18.2% from the RM3.63 billion recorded in the nine months to September 2011. Group profit before tax was up 15.6% to RM5.95 billion.
The Group saw steady growth across almost all business sectors despite the softening global economy, reflecting efforts to grow profitably and responsibly while ensuring sound asset quality. Net revenue rose 14.8% to RM12.37 billion on the back of a 14.9% growth in fund-based income and 14.8% in fee-based income. Performance was boosted by strong growth in revenue from International Banking, particularly Bank Internasional Indonesia (BII), as well as Islamic Banking, Investment Banking and Corporate Banking.
Group loans maintained doubledigit growth of 10.4%, led by Community Financial Services, Corporate Banking, Investment Banking and BII. Although this was behind the original full year target of 16.2%, it was in line with the general slowing down recorded by the industry. For the Malaysian operations, loans growth was 12.4% on an annualised basis and higher than industry growth of 11.2%. Total Loans & Debt Securities grew at 9.9%.
The main drivers for the steady performance in the nine months included a 14.8% rise in non-interest income (including fee income from Islamic operations and net income from insurance & takaful business) to RM4.78 billion, led by a 63% rise in investment and trading income and a 14.5% increase in commissions, service charges & fees. Fee income from Islamic operations on its own grew 72%, mainly owing to the increase in primary subscriber fees from major deals undertaken by the Investment Banking business.
Net fund based income which grew 14.9% to RM7.59 billion, with net interest margin stable at 2.41% at the end of September 2012 compared with the 2.40% registered in the first six months to June 2012.
Healthy growth in Group deposits which stood at RM330.5 billion, up 12.7% from a year earlier, with low-cost deposits making up a significant 34.6% of total deposits. Double digit year-on-year growth was recorded across the three home markets of Malaysia, Singapore and Indonesia.
Continued robust growth of 23.4% in Global Wholesale Banking's profit before tax (PBT) to RM2.75 billion. This was led by more than a doubling in PBT for Investment Banking (to RM318 million), 25.5% rise in Corporate Banking (to RM1.30 billion) and 5.4% growth in Global Markets (to RM1.13 billion).
A 52.7% rise in PBT for International Banking to RM1.72 billion with the key home markets of Singapore registering PBT of S$307 million (+2.8%) and Indonesia's Bank Internasional Indonesia (BII) recording PBT of Rp 1.3 trillion (+63%). Stronger results from the Group's Islamic banking which saw profit before tax and zakat rise by 43.8% to RM1.10 billion.
Maybank Group Quarterly Results Q-on-Q and Y-on-Y
On a quarterly comparison, PATAMI for the third quarter ended 30 September 2012 rose 4.4% to RM1.5 billion from the RM1.44 billion in the previous quarter ended 30 June 2012. PBT for the third quarter was similar to the second quarter at RM2.02 billion. Compared to the previous corresponding quarter ended 30 September 2011, PATAMI and PBT for the quarter ended were 13.0% and 10.0% higher respectively.
We intend to leverage on our global network to tap opportunities when they arise in order to enhance our total shareholders returns. At the same time, we are improving our brand presence in communities where we serve as well as enhancing productivity and efficiency to maintain a competitive edge for the future." Comments by Maybank President & CEO, Dato' Sri Abdul Wahid Omar "Our approach in growing responsibly and profitably in addition to adopting loan pricing discipline has helped us sustain profit growth over the nine months.
These efforts, coupled with our strategic cost management initiatives, development of new income streams as well as expansion of regional platforms are key to helping us build efficiency and drive our region-wide growth further.