Overall growth lifts Maybank Indonesian unit earnings


PETALING JAYA: Malayan Banking Bhd’s (Maybank) Indonesian banking unit – PT Bank Internasional Indonesia Tbk (BII) – has recorded a 66% increase in net profit to 922 billion rupiah (RM293.8mil) for the nine months ended Sept 30.

The higher profit was due to solid growth across the bank’s core businesses, improved asset quality including at the subsidiaries, as well as continuing overall operational improvements.

“The strong performance over these nine months has been underpinned by our determination to leverage on growth opportunities arising from Indonesia’s rapid economic expansion,” president commissioner BII and chairman of Maybank group, Tan Sri Megat Zaharuddin Megat Mohd Nor said in a statement.

For the period in review, BII booked strong loans growth of 22%, with total loans increasing from 62 trillion rupiah in September 2011 to 75.9 trillion rupiah in September 2012. Global wholesale banking loans, which include corporate and commercial loans accounted for 37% of total loans, while SME and consumer loans contributed 28% and 35%, respectively.

Total deposits increased by 20% to 79.8 trillion rupiah as of Sept 30 against 66.7 trillion rupiah a year ago. The consolidated loan to deposit ratio (LDR) stood at 94.26%, a marginal increase from 92.64% previously.

BII said the strong improvement in asset quality was reflected in its gross non-performing loans level (NPL) improving to 2.08% from 2.54% a year ago, while net NPL improved to 0.87% from 1.37%.

During the period, BII’s net interest income improved 28% to 3.9 trillion rupiah from 3.1 trillion rupiah a year earlier, while net interest margin improved to 5.88% from 5.53% previously.

BII’s fee-based income was maintained at a stable level of 1.6 trillion rupiah during the period under review.

“We are poised for further growth in profitability as we continue to focus in growing our core business segments, while building capacity and capability, and developing our key assets being our talent,” said BII president director Datuk Khairussaleh Ramli.

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