May­bank posts de­cline in third quar­ter earn­ings

The Gulf Today - Business - - INTERNATIONAL -

KUALA LUMPUR: Malayan Bank­ing (May­bank), Malaysia’s largest lender by assets, posted a drop in third-quar­ter profit on lower fee-based in­come, while its CEO cau­tioned that the “pro­longed geopo­lit­i­cal sit­u­a­tion” was a key con­cern for busi­ness.

Smaller ri­val CIMB Group Hold­ings also sounded a cau­tious note cit­ing weaker re­gional economies and the Us-china trade war, even as it posted higher quar­terly earn­ings on bet­ter con­sumer and com­mer­cial bank­ing busi­ness.

May­bank’s net profit for the quar­ter ended Septem­ber dropped 3.4 per cent from a year ago to 1.96 bil­lion ring­git ($468 mil­lion), lag­ging the 1.98 bil­lion ring­git av­er­age es­ti­mate from two an­a­lysts sur­veyed by Refini­tiv.

The lender at­trib­uted the drop to lower in­vest­ment and trad­ing pro­ceeds as well as for­eign ex­change fluc­tu­a­tions. In­sur­ance claims and al­lowances for im­pair­ment losses also in­creased, ac­cord­ing to its fi­nan­cial state­ment.

Rev­enue climbed 4 per cent to 12.1 bil­lion ring­git. “The pro­longed geopo­lit­i­cal sit­u­a­tion re­mains a key con­cern, as it would in­flu­ence global growth, in­clud­ing Asia where May­bank has most of its op­er­a­tions,” May­bank group pres­i­dent and CEO Ab­dul Farid Alias said in a state­ment on Thurs­day.

“We will re­main ag­ile to ad­just to rapid mar­ket changes, while at the same time look for op­por­tu­ni­ties for growth, such as in in­fra­struc­ture fi­nanc­ing, wealth man­age­ment, dig­i­tal bank­ing and Is­lamic bank­ing,” the May­bank CEO added.

CIMB’S group CEO Zafrul Aziz said his bank would “con­tinue to con­trol as­set qual­ity and cost across its busi­nesses” amid global trade ten­sions.

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