May­bank nine months profit up 18pc

The Pak Banker - - Front Page -


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.

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