KUALA LUMPUR, Aug 30 — Malayan Banking Bhd’s (Maybank) net profit for the first half of the year ended June 30, 2023 rose 26 per cent to RM4.6 billion from RM3.67 billion in the same period last year.
Revenue increased to RM31.32 billion from RM21.36 billion previously.
As for the second quarter of 2023, its net profit rose 45.4 per cent to 2.34 billion from RM1.61 billion in the same quarter last year, while revenue advanced to RM16.13 billion from RM10.21 billion previously.
In a statement today, Maybank said its net operating income for the six months this year rose by 8.6 per cent year-on-year (y-o-y) to RM13.63 billion, led by a 61 per cent boost in non-interest income to RM4.01 billion.
“This, however, was offset by a lower net fund-based income, which declined 4.4 per cent y-o-y to RM9.62 billion, as net interest margin compressed due to higher funding costs led by interest rate hikes in the past year and deposit pressure.
“Overhead cost was also higher at RM6.47 billion compared with RM5.62 billion a year earlier attributed to higher personnel costs mainly from provisions for the recently concluded collective agreements, credit card-related fees, IT-related costs and marketing expenses,” the bank noted.
Notwithstanding this, Maybank said pre-provisioning operating profit increased by 3.3 per cent to RM7.16 billion from RM6.94 billion in 1H 2022.
On another note, the bank said its asset quality improved as gross impaired loans declined by 34 basis points to 1.47 per cent from 1.81 per cent a year earlier due to write-offs and low formation of newly impaired loans.
“Loan loss coverage continued to strengthen to 130.3 per cent in the first half from 122.3 per cent compared with a year earlier, while net impairment provisions decreased by 50.5 per cent to RM867.4 million in the first half of 2023,” it said.
As for the second quarter of 2023, the bank shared that its net operating income expanded by 15.9 per cent year-on-year to RM7.31 billion, led by higher non-interest income from stronger treasury and markets income, surging 119.3 per cent to RM2.48 billion compared with a year earlier.
“Net fund-based income, however, recorded a slight decrease to RM4.83 billion compared with RM5.17 billion as NIM compressed due to persisting funding competition,” it said.
On the group gross loans, Maybank said it expanded 5.3 per cent year-on-year as at June 30, 2023, led by growth in Malaysia by 3.9 per cent and Indonesia by 2.2 per cent, while Singapore moderated by 1.7 per cent and other international markets recorded an 8.8 increase.
Meanwhile, group gross deposits rose 2.8 per cent, led primarily by a 6.4 per cent growth in Singapore and 0.2 per cent in Malaysia, mainly driven by the expansion in fixed deposits portfolio.
Consequently, Maybank said its current account savings account (Casa) ratio moderated to 37.7 per cent as at June 2023.
First half performance validates Maybank’s strong franchise
Commenting on the results, chairman Tan Sri Zamzamzairani Mohd Isa said that the promising performance continues to validate Maybank’s strong franchise and the M25+ strategy the bank has adopted despite the global challenges.
“We are optimistic that better business opportunities remain, driven by policies outlined by the government to further drive private sector investments and enhance consumer confidence.
“We intend to leverage our strong brand equity, digital capabilities as well as expertise and solid infrastructure to tap into growth opportunities and serve our customers better,” he said.
Meanwhile, group president and chief executive officer Datuk Khairussaleh Ramli said that Maybank’s aim going forward will be to accelerate its growth momentum and boost revenue drivers with an emphasis on key growth areas while improving asset quality and maintaining strong liquidity and capital positions to manage potential risks that may arise from changes in the operating environment.
“We will continue to prioritise customer centricity through the enhancement of our customers’ journey by providing relevant financial solutions and services across various touchpoints and focusing on our strategic initiatives under Maybank’s M25+ strategy anchored on the five strategic thrusts.
“On our ambition of being a sustainability leader in Asean, the group will focus on capacity-building and engagement through advisory and client solutions to support the responsible transition of the group and its clients to a low carbon economy.
“We also intend to deepen our Islamic wealth management capabilities by developing a centre of excellence to lead the group’s aspiration of becoming a global Islamic finance leader,” Khairussaleh said.
Maybank added that the board of directors had declared a first interim full cash dividend of 29 sen per share, translating into a dividend payout ratio of 75.9 per cent, equivalent to RM3.50 billion payout.
— Bernama
