Maybank Investment Bank Bhd (Maybank IB) said yesterday that Maybank may issue up to RM10bil under the senior sukuk murabahah and/or subordinated sukuk programme under the syariah principle of murabahah
KUALA LUMPUR: Malayan Banking Bhd
's earnings jumped by 42.9% to RM498.5mil to RM1.65bil in its second quarter ended June 30, 2017 boosted by higher net interest income and Islamic banking income and also higher insurance premiums for its insurance and Takaful subsidiaries.
Maybank, South East Asia’s fourth largest bank by assets, announced on Wednesday revenue was slightly lower at RM10.92bil compared with RM10.94bil in the same quarter last year. It declared an interim dividend of 23 sen for the quarter, up from 20 sen a year ago.
It said the net interest income and Islamic banking income rose by RM438.3mil or 11.6%.
Net earned insurance premiums from the insurance and Takaful subsidiaries rose RM191.20mil to RM1.255bil.
However, other operating income fell RM11.80mil to RM1.55bil mainly due to lower net gain on foreign exchange of RM110.5mil and lower realised gain on derivatives of RM27.9mil.
The group's allowances for impairment losses on loans, advances, financing and other debts decreased by RM151.4mil to RM830.3mil in Q2FY17
The decrease was mainly due to lower net individual allowance made of RM280.3mil offset by higher net collective allowance made of RM95.5mil and lower bad debts and financing recovered of RM39.8mil.
The group's allowance for impairment losses on financial investments for the quarter ended June 30 fell by RM194.1mil.
The group's net insurance benefits and claims incurred, net fee and commission expenses, change in expense liabilities and taxation of life and takaful fund increased by RM154.5mil on-year to RM1.23bil in the quarter, due to higher net insurance benefits and claims incurred by the Insurance and Takaful subsidiaries.
Its overhead expenses for the current quarter increased by RM169.7mil or 6.5% owing to the increase in personnel expenses of RM125.6mil and administration and general expenses of RM75.3mil. The increase was, however, mitigated by lower marketing expenses of RM25.3mil.
The group expects a better performance for its home markets in 2017, with Singapore, Malaysia and Indonesia forecast to grow at 3%, 5.5% and 5.1% respectively.
"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.
"The Group Key Performance Indicator for Return on Equity is 10%-11% and loans growth for the Group is expected to be in line with the industry," the group said in its filing with Bursa Malaysia
At midday, the counter was up 3 sen or 0.32% to RM9.49 on the back of 3.03 million shares done.
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