Maybank Indonesia’s profit surges 60.9%

MAYBANK CORPORATE LOGO. AZHAR MAHFOF/The Star REPORTER: JOSEPH CHIN

KUALA LUMPUR: Malayan Banking Bhd’s (Maybank) Indonesia-listed subsidiary PT Bank Maybank Indonesia Tbk announced a 60.9% jump in net profit after tax and minority interest (Patami) to 1.14 trillion rupiah (RM358mil) for the financial year ended Dec 31, 2015 (FY15).

Maybank said in a statement that the solid performance was achieved on the back of better net interest margin, strong growth of the bank’s fee-based income, outstanding achievement in syariah banking, and disciplined cost management efforts.  

Net interest income rose 9.4% to 6.49 trillion rupiah (RM2.03bil) as of Dec 31, 2015 from 5.93 trillion rupiah (RM1.86bil) in the previous corresponding year as the bank’s net interest margin improved to 4.84% from 4.76%.

Maybank Indonesia - formerly PT Bank Internasional Indonesia Tbk (BII) - reported a 40.8% increase in fee-based income to 2.73 trillion rupiah (RM855.8mil) in FY15 from 1.94 trillion rupiah (RM608.2mil) in the previous year.

“The significant increase in fee-based income was mainly driven by the bank’s bancassurance fees, services as arranger and advisory to its corporate clients, foreign exchange transactions, loan administration, insurance, and other services,” it said.

On syariah banking, Maybank said total financing grew 52.8% from 5.68 trillion rupiah (RM1.78bil) in December 2014 to 8.67 trillion rupiah (RM2.72bil) in December 2015 while total deposits increased 53.6% to 6.39 trillion rupiah (RM2.0bil).

Its syariah banking’s net profit almost tripled (+192.7%) to 287.92 billion rupiah (RM90.3mil) last year.

The bank posted loans growth of 5.9% to 112.5 trillion rupiah (RM35.3mil) as of Dec 31, 2015 from a year erlier. Loans from business banking made up 41% of the bank’s total loans, while loans from retail banking and global banking contributed 40% and 19% respectively.

Throughout the year the bank prioritised focus on further strengthening its liquidity positions and customer deposits. Total customer deposits grew 12.7% from 102.49 trillion rupiah (RM32.21bil) to 115.49 trillion rupiah (RM36.24bil) with loan to funding ratio (LFR – bank only) at a healthy 85.13% and the bank’s consolidated modified loan to deposits ratio (modified LDR – consolidated) at 80.95%.

Maybank Indonesia’s consolidated non-performing loans (NPL) level had risen to 3.67% (gross) and 2.42% (net) as of December 2015, compared with 2.23% (NPL gross) and 1.48% (NPL net) in the previous year.

According to the bank, it continues to manage down exposures from corporate accounts that have led to the higher NPL level. “The bank has actively carried out restructuring of those accounts and expects to see further improvements in 2016,” it added.

The bank maintained its strong capital position with Tier-1 capital reaching 13.6 trillion rupiah and capital adequacy ratio (CAR) at 15.17% as of Dec 31, 2015.

On its subsidiaries, Maybank Indonesia said Maybank Finance (formerly BII Finance) recorded 18.5% higher consumer financing (stand alone) to 4.62 trillion rupiah in December 2015 from 3.90 trillion rupiah in December 2014.

Its pre-tax profit hit 332 billion rupiah in December 2015. With its outstanding performance,

Meanwhile, motorcycle financing firm PT Wahana Ottomitra Multiartha Tbk (WOM), in line with the industry, saw a decline in its total financing. WOM’s total consumer financing (stand alone) dropped 15.3% from 4.40 trillion rupiah in December 2014 to 3.73 trillion rupiah in December 2015.

This, coupled with intense competition, reduced its profit before tax from 51 billion rupiah in December 2014 to 19 billion rupiah in December 2015.

Maybank Indonesia officially launched its new corporate identity on Jan 22 following the formal announcement of the change of name from PT Bank Internasional Indonesia Tbk in October 2015.

Maybank shares rose 1 sen to close at RM8.64 on Tuesday, with 7.503 million shares traded.