Maybank Indonesia’s net profit strengthens 7%

KUALA LUMPUR: Bank Maybank Indonesia Tbk’s profit after tax and minority interest (PATAMI) rose by 7% year-on-year to 809.7 billion rupiah during the first half of 2020 ended June 30 (1H2020).

The bank attributed the performance to the improvement in its fee-based income, which rose by 1.4% to 1.2 trillion rupiah in June 2020, as well as sustained strategic cost management.

“The loan-to-deposit ratio (LDR-BANK only) was at a healthy level of 94.2 %, while its liquidity coverage ratio (LCR-BANK only) stood at 152.4 % as of June 2020 - well above the mandatory minimum of 100%.

“Net interest margin improved to five % as at June 2020 compared with 4.8 % in June 2019, mainly supported by the reduction in cost of deposit as a result of disciplined pricing and better funding management, ” it said in a statement.

Maybank Indonesia said overhead costs were managed effectively, declining by 4.6 % to three trillion rupiah in June 2020 due to continued cost management initiatives across business lines and support units, coupled with reduction in general and administration costs as the bank implemented work from home arrangements following the Covid-19 pandemic.