KUALA LUMPUR, Nov 22 — Malayan Banking Bhd’s (Maybank) net profit rose 12.3 per cent to RM2.36 billion in the third quarter (3Q) ended Sept 30, 2023 from RM2.10 billion in the same period last year on the back of a jump in revenue.
Revenue bounced to RM16.01 billion from RM13.02 billion previously, Southeast Asia’s fourth largest bank by assets said in a filing with Bursa Malaysia today.
Separately, the group said in a media statement that its total assets grew from RM945 billion (as of Dec 2022) to RM1.0 trillion as of Sept 2023, “and for the first time it has exceeded the RM1.0 trillion mark.”
Total group gross loans grew strongly by 5.1 per cent year-on-year (y-o-y) as at 3Q, lifted by increases of 3.7 per cent and 3.0 per cent in its home markets of Malaysia and Singapore, respectively, while other markets contributed a rise of 5.5 per cent.
The group’s gross deposits expanded by 3.5 per cent as fixed deposits grew 20.3 per cent, offsetting a decline of 8.8 per cent in other deposits and 8.9 per cent in current account savings accounts (CASA).
Its net operating income however decreased by 5.2 per cent year-on-year (y-o-y) to RM6.75 billion, attributed to a decrease in net fund-based income of RM4.81 billion compared with RM5.29 billion a year earlier as net interest margin compressed due to persisting funding competition.
Non-interest income (NOII), however, was up 6.1 per cent y-o-y at RM1.94 billion while net impairment provisions improved with a 59.3 per cent decrease to RM342.2 million.
Group president and chief executive officer Datuk Khairussaleh Ramli said that “global challenges remain but Maybank will continue to pursue opportunities for growth guided by its corporate strategy across all its customer and business segments within its Asean operations while maintaining its strong liquidity position, improving asset quality, and preserving sound capital levels.”
“Providing benefits to customers and uplifting customer experience via relevant product and solutions as well as process improvements facilitating account openings and loan applications have resulted in broader services uptake.
“We continue to drive digitalisation and operational efficiencies as well as building on the momentum for future revenue growth boosted by the 12 strategic programmes under the M25+ strategy and its targeted investments,” said Khairussaleh.
As of 3Q, Islamic financing constituted 68.1 per cent of Maybank Malaysia’s total financing while Maybank Islamic’s market share of Islamic assets in Malaysia stood at 29.2 per cent.
Its Etiqa insurance and takaful registered a robust increase in profit before tax (PBT) to RM645.4 million for the nine months (9M) ended Sept 30, 2023, from a loss of RM197.8 million a year earlier.
In other key markets, its Maybank Indonesia recorded a PBT of 1.66 trillion rupiah for nine months, up by 11.8 per cent from 1.48 trillion rupiah in the same period last year from better earnings in the bank’s loan composition, particularly from the retail and retail small-medium enterprise loans following a continual lift in public consumption.
Maybank Singapore saw a decline in its PBT by 4.2 per cent y-o-y to S$505 million, impacted by lower income and higher overheads. However, a write-back in loan loss allowances mitigated the decline, it said.
“We also aim to further deploy sustainable financing and decarbonisation solutions for our customers as we ourselves carve a clear pathway to net zero.
“We are also heartened that our holistic efforts have been recognised with several awards, most notably as the only Malaysian company to be included in Time’s World’s Best Companies 2023 comprising 750 companies,” added Khairussaleh. — Bernama
