Maybank posts improved Q3 earnings of RM1.79b

Maybank Group president and chief executive officer Datuk Abdul Farid Alias

KUALA LUMPUR: Malayan Banking Bhd (Maybank) posted a stronger set of earnings in the third quarter ended Sept 30, 2016 at RM1.79bil – an improvement from the preceding two quarters.

South-east Asia's fourth largest bank by assets said on Thursday its earnings rose 54.8% from the RM1.16bil in Q2FY16. However, it was marginally lower by 5.4% compared with aQ3FY15 mainly due to a lower tax charge a year ago.

Maybank said Q3FY16 profit before tax (PBT) rose 55.1% over Q2FY16 and 3.1% over the corresponding period last year. PBT for the quarter came in at RM2.46bil compared with RM1.58bil in Q2FY16 and RM2.38bil in Q3FY15. 

“The results were supported by an improved on-quarter earnings trend as well as a reduction in net impairment losses as the group benefitted from its earlier proactive stance in managing asset quality by working closely with customers that could be impacted by the weaker operating environment and actively undertaking restructuring and rescheduling of financing where required,” it said.

Its revenue was RM11.28bil while earnings per share (EPS) were 17.97 sen compared with RM11.38bil and 19.93 sen, respectively, a year earlier.

For the nine months ended Sept 30, 2016, the group’s PBT came in at RM5.97bil which was 11.9% lower from the RM6.78bil in September 2015.

“Net profit was RM4.38bil compared with RM5.18 billion a year earlier owing to higher provisioning in the first two quarters,” it said. 

Revenue in the nine months ended Sept 30, 2016 was higher at RM33.41bil compared with RM29.54bil in the previous corresponding period. 

Maybank group continued to record stable revenue growth across all business sectors for the nine months, with community financial services registering a 9.2% rise, global banking 13.9% and insurance and Takaful 11.3%.

Net operating income for the nine months rose 3.7% on-year reaching RM16.2bil as loans growth picked up pace in Q3FY16, deposits maintained its modest growth trend and the group continued to benefit from its strong retail franchise in key markets. 

Net fund based income saw a 5.2% rise to RM11.33bil, while net fee based income increased slightly by 0.2% to RM4.86bil for the nine months compared with a year earlier.
 
Gross loans grew 2.2% in Q3FY16 compared with Q2FY16 while annualised loans growth for the nine months to September 2016 was 0.5%. This came on the back of a 1.6% on-quarter increase in the Malaysian operations and a 3.2% rise in International operations.

Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said amidst ongoing bearish economic conditions, the group continues to find solutions with customers across Asean thus recording positive revenue growth and reducing loan loss provisions. 

“We also remain well positioned in financing the infrastructure needs in the various Asean countries, whilst stimulating growth in the SME sector given lowering interest rates,” he said.
 

Maybank group president and CEO, Datuk Abdul Farid Alias said the Group has clearly benefitted from its diversified portfolio and geographical footprint which have assisted us in navigating the uncertain operating environment over the past few quarters. 

“We are encouraged that our franchise remains sound across the region, and revenue continues to grow across all our business sectors. 

“We intend to sustain this momentum going forward, while at the same time, remaining disciplined in managing costs, mitigating risks and enhancing efficiency, to better position ourselves for sustained growth in the future,” it said.