Maybank income retreats in third quarter

KUALA LUMPUR: Malayan Banking Bhd’s net profit fell by 2.3% to Rm1.95bil in the third quarter ended Sept 30 from Rm1.99bil a year ago due to the continued impact from the Covid-19 pandemic.

South-east Asia’s fourth-largest bank by assets said yesterday that while its net operating income has been impacted, this was partly offset by reduced overhead expenses and a decline in impairments.

In Q3, net operating income declined by 6.5% to Rm6.08bil from Rm6.50bil previously.

This was on the back of an 8.7% year-on-year (y-o-y) drop in total net fund-based income to Rm4.13bil, as a result of a 27 basis points (bps) y-o-y net interest margin compression due to the cuts in the overnight policy rate.

The group also saw a 1.3% dip in total net fee-based income to Rm1.95bil, following slower business activities and lower investment gains.

Revenue slipped by 0.6% to Rm13.75bil from Rm13.83bil. Earnings per share was 17.37 sen compared with 17.78 sen. It declared a dividend of 13.5 sen a share. There was a 7.8% rise in total fee-based income, and a 7.5% rise in total fund-based income.

Collectively, this lifted net operating income by 7.6%, as business activities resumed and mobility picked up following the easing of the movement control restrictions in the quarter, ” it said.

Over a nine-month period, net profit fell by 14% to Rm4.94bil from Rm5.74bil in the previous corresponding period.

Revenue dipped to Rm38.77bil, from Rm39.86bil.

The decline was mainly due to lower net fund-based income following the interest rate cuts and the impact of modification loss owing to the blanket loan moratorium. Net impairment losses rose to Rm3.57bil from Rm2.02bil a year earlier, which translates to a 76.4% jump.

The group is making proactive provisioning and assuming weakening macroeconomic variables. It is also topping up existing impaired accounts, all of which resulted in a rise in impairments.

Maybank chairman, Tan Sri Zamzamzairani Mohd Isa said given the improvement in the Q3 results, Maybank is continuing its practice to pay an interim dividend to shareholders, albeit at a lower rate compared to the past.