PETALING JAYA: Malayan Banking Bhd
(Maybank) made a net profit of RM1.7bil or 16.73 sen per share for its first quarter ended March 31, up 19% from the net profit RM1.43bil or 14.64 sen per share recorded in the same quarter a year earlier.
This was achieved on higher income and lower provisions for bad loans.
Revenue for the period was marginally higher at RM11.3bil compared with RM11.2bil a year ago, it said in a filing with Bursa Malaysia.
Maybank shares moved ahead of the release of the results, adding 21 sen to RM9.57 in the first half of the day’s trading, before finishing the day up 3 sen to RM9.39.
Maybank president and chief executive officer Datuk Abdul Farid Alias said in a statement that the continuous growth in revenue reflected the bank’s inherent resilience and ability to grow as a result of its diversified operations.
“While we aim to build up our growth momentum in the coming quarters, we will, nevertheless, continue to be watchful over further impact to our clients from changes in the operating environment, and actively support them in managing their risks.
“At the same time, our focus will remain on enhancing staff productivity, managing costs efficiently and strengthening our liquidity and capital position to sustain our performance in the future,” he said.
Chairman Datuk Mohaiyani Shamsudin said the encouraging first quarter performance validated the rigorous profitability and asset quality measures that had been adopted over the last year.
“Leveraging on our extensive franchise and strong balance sheet, we are confident that this growth momentum will gain traction as we continue to support the region’s economic development, particularly in the consumer and infrastructure segments,” she said.
In notes accompanying the results, the country’s largest bank by asset size said net interest income and Islamic banking income for the quarter under review increased by RM392.7mil or 10.2% to RM4.25bil compared to the previous corresponding quarter.
Net earned insurance premiums from the insurance and takaful subsidiaries increased by RM85.3mil to RM1.25bil.
However, other operating income of the bank was RM1.43bil, a decrease of RM260.4mil or 15.4% from RM1.69bil in the previous corresponding quarter.
Meanwhile, Maybank’s allowances for impairment losses on loans, advances, financing and other debts decreased by RM322.6mil to RM542.5mil, mainly due to lower collective allowance.
“Barring any unforeseen circumstances, the group expects its performance for 2017 to be satisfactory, given the ongoing challenging global environment,” it said.
The bank has set two headline key performance indicators (KPIs) of return on equity of 10% to 11% and loans growth of 6% to 7% for the current financial year ending Dec 31.
“At Maybank Group, key strategic priorities for 2017 would be to strengthen our revenue drivers by focusing on pockets of opportunities across the various segments in consumer and corporate lending and capturing regional opportunities through our Maybank Kim Eng, Etiqa and Maybank Islamic franchises,” it said.
It added that it would leverage on its multichannel digital capabilities, expand product segments, increase productivity and drive regional cross-selling synergies.
For the quarter under review, the bank’s overhead expenses recorded an increase of RM183.8mil or 7% to RM2.80bil compared to the previous corresponding quarter mainly due to higher personnel, administration and general expenses.
Also for the quarter under review, group corporate banking and global markets’ pre-tax profit increased by 14% to RM1.18bil while group investment banking, which comes under Maybank Investment Bank and Maybank Kim Eng, saw pre-tax profit decrease by 33.9% to RM63.9mil, mainly driven by lower other operating income and higher overhead expenses.
“Against the backdrop of selective growth in the market, Maybank Group will maintain its approach of proactively managing asset quality,” it said.
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