Maybank 3Q pre-tax profit up 9.05 pct in 3Q to RM2.67 bln

KUALA LUMPUR: Malayan Banking Bhd’s (Maybank) pre-tax profit for the third quarter (3Q) ended Sept 30, 2017 rose by 9.05 per cent to RM2.67 billion from RM2.45 billion in the same quarter last year.

Revenue increased to RM11.56 billion from RM11.28 billion previously.

For the cumulative nine months, pre-tax profit rose to RM7.17 billion from RM5.97 billion in the same period last year, while revenue increased to RM33.79 billion from RM33.41 billion previously.

Chairman, Datuk Mohaiyani Shamsudin, said the results demonstrated that the group has been able to sustain its growth momentum across its business lines as well as home markets in the last nine months.

“Gross loans saw a steady expansion, up 5.3 per cent yearon-year (yoy) for the nine months to RM485.9 billion, driven by the 6.6 per cent rise in Malaysian operations and 3.7 per cent in international operations.

“This helped boost net fundbased income by 11.7 per cent to RM12.47 billion from RM11.16 billion in September 2016, which more than offset a marginal 4.3 per cent dip in net fee based income,” she said in a press release here today.

Group deposits expanded 2.7 per cent yoy, led mainly by Malaysian operations which grew 7.5 per cent and Indonesia operations at three per cent, she said.

Mohaiyani said net impairment losses dropped significantly in 3Q coming in 51 per cent lower at RM409.6 million compared with RM835.7 million in the second quarter of 2017 as the group continued to realise the benefits from the proactive stance taken since early last year to restructure and reschedule the credit facilities of customers impacted by the challenging economic environment.

She said Maybank Islamic maintained its position as the largest Islamic bank in Malaysia with a 30 per cent share of Islamic assets, while Etiqa Insurance & Takaful saw its pre-tax profit rise by a robust 15.8 per cent to RM641.6 million in the nine months from RM554.1 million a year earlier.

Maybank Singapore’s pre-tax profit rose by 32.4 per cent to S$234.3 million (S$1 = RM3.04) in the nine months to September 2017 from S$176.92 million a year earlier, she said.

Mohaiyani said net income increased by 26.3 per cent boosted by a solid increase in net fund based income and net fee based income of 32.1 per cent and 15.7 per cent respectively.

As for PT Bank Maybank Indonesia Tbk, she said, pre-tax profit rose 14 per cent to two trillion rupiah (10,000 rupiah = RM3.03) in September 2017 from 1.75 trillion rupiah in September 2016.

“The improved performance was mainly contributed by loan growth, in particular Global Banking, effective cost management control and outstanding achievement in Shariah banking,” she said.

Maybank Philippines continued to register a strong performance as pre-tax profit reached 1.03 billion peso (100 peso = RM8.13), a turnaround from the 87.9 million peso loss recognised a year earlier, driven by higher revenue, coupled with lower provisioning expenses, she said.

She said Maybank’s Indo-China operations continued to record stable revenue growth across all its markets comprising of Cambodia, Vietnam, Laos and Myanmar.

“However, pre-tax profit dipped slightly to RM47.7 million from RM57.4 million compared with a year earlier owing to impairment charges,” she said.

Mohaiyani said the outlook for the remaining months appears to be improving, giving us the opportunity to seek new growth segments.

“We will, nevertheless, continue to manage our business prudently, ensuring that we grow responsibly while managing costs and risks in a highly disciplined manner,” she said.

Group President/Chief Executive Officer, Datuk Abdul Farid Alias, said the bank’s strong franchise and resilient balance sheet has enabled it to ride through the challenging period over the last few quarters as well as support the customers through the changing economic cycles. — Bernama