KUALA LUMPUR, Aug 25 — Malayan Banking Bhd (Maybank) is eyeing 5.0 basis points (bps) net interest margin (NIM) improvement for 2022 from 2.32 per cent achieved last year in anticipation of a higher interest rate.
Group president and chief executive officer Datuk Khairussaleh Ramli said the bank foresees another 50 basis points overnight policy rate (OPR) hike until the end of this year.
“Every 25 bps increase will increase our NIM by 1.0-2.0 bps.
“Therefore, another 50 bps (OPR) increase by end of the year potentially will improve our NIM by 2.0-4.0 bps,” he told a press conference after announcing the group’s second quarter financial results here today.
In the first half of 2022 (H1 2022), Maybank’s NIM improved by 4.0 bps year-on-year (y-o-y) amid a rising rate environment.
Khairussaleh said the OPR hike projection was in view of the inflation outlook as well as the expectation of the United States’ upward trajectory in increasing its interest rate.
Subsequently, Maybank expects its loan growth to slow down this year to above 5.0 per cent against 5.7 per cent achieved in 2021, matching the industry’s performance amid a higher interest rate.
For H1 2022, the group gross loan expanded 6.2 per cent y-o-y with steady growth recorded across all markets — Malaysia (5.6 per cent), Indonesia (8.2 per cent) and Singapore (8.1 per cent), while other international markets recorded a 1.4 per cent increase.
Also present were chairman Tan Sri Zamzamzairani Mohd Isa and group chief financial officer Khalijah Ismail. — Bernama
