Maybank Indonesia posts higher earnings for first half


Taswin: We continued to show strong improvement at the operating level for the first six months.

Bank confident of sustainable profitable growth for rest of year

PETALING JAYA: Malayan Banking Bhd’s unit in Indonesia has posted a 16.3% rise in net profit after tax and minority interests (Patami) to 998.5 billion rupiah (RM320mil) in the first half ended June 30.

PT Bank Maybank Indonesia said net interest margin improved to 5.3% in June 2017 compared with 5% in June 2016.

“We are confident of seeing sustainable profitable growth for the remaining 2017.” president director of Maybank Indonesia Taswin Zakaria said in a statement.

He said the bank’s better performance was supported by an overall improvement in its core banking business.

The bank’s fee-based income during the period under review climbed 9.1% from 1.3 trillion rupiah in June 2016 to 1.5 trillion rupiah in June 2017.

The increase in fee-based income was achieved from bancassurance, loan recovery, remittance and other services provided by the bank.

Global banking loans saw a strong loan growth of 18.9% to 27.3 trillion rupiah in June 2017 as a number of key deals were realised, benefiting from the re-aligning and re-profiling of its portfolio.

The bank’s Community Financial Services (CFS) non-retail loans, which comprise of micro, small and medium enterprises and business banking, grew by 2.0% to 50.1 trillion rupiah, while CFS retail banking loans decreased by 6.4% to 42.5 trillion rupiah in June 2017 due to a slowdown in consumer spending.

Asset quality at Maybank Indonesia remained solid, with consolidated non-performing loan level remaining at 3.6% (gross) and 2.4% (net) as of June 2017 compared with the previous corresponding period.

Provision expenses was reduced by 15.7% to 835.8 billion rupiah in June 2017 from 991.1 billion rupiah in June 2016.

The bank, however, said loan quality remained a concern as businesses are still impacted by the continued slow movement in the economy.

“We continued to show strong improvement at the operating level for the first six months amidst the challenging market condition,” Taswin said.

“Our strong first semester results clearly reflects the steady improvement in our core business performance as strong fundamentals, rigorous risk management practices as well as a disciplined approach towards pricing and growth are well in place,” he said.

Meanwhile, president commissioner Maybank Indonesia and group president & CEO of Maybank, Datuk Abdul Farid Alias said he is pleased with the bank’s performance, despite the challenging market condition.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , Maybank Indonesia

   

Next In Business News

Tashin buys CSC Steel's property in Penang
Careplus seeks transfer to Bursa Malaysia main market
Takeover offer for Cycle & Carriage extended to May 12
Greatech Q1 net profit jumps 152% as EV business lifts profit margin
Redtone Digital appoints Jalil Rasheed as deputy chairman
FBM KLCI closes marginally higher
Bitcoin falls 7% as cryptos stumble over Biden tax plans
Taiwan's chip industry set for years of growth: minister
AirAsia partners RinggitPlus to set up one-stop financial marketplace
CPI up 1.7% to 122.9 in March 2021

Stories You'll Enjoy


Vouchers