Maybank posts higher 9M net profit of RM5.78b

Maybank group president and CEO Datuk Abdul Farid Alias said the prolonged geopolitical situation remains a key concern, as it would influence global growth, including Asia where Maybank has most of its operations.

 KUALA LUMPUR:  Malayan Banking Bhd reported higher net profit of RM5.78bil in the nine months ended Sept 30, 2018, up 7.27% compared with RM5.39bil in the previous corresponding period, though there was a slight dip in the third quarter due to global uncertainty and market instabilities

Maybank, Southeast Asia’s fourth largest bank by assets, reported on Thursday its revenue rose by 3.8% to RM35.08bil from RM33.79bil a year ago.

Its profit before tax (PBT)  rose 8.8% to RM7.81bil from RM7.17bil a year earlier, supported by higher net fund based income, disciplined cost management as well as a continued decline in impairments. 

Net operating income rose up 0.8% to RM17.33bil from a year ago. This was on the back of a 1.6% increase in net fund based income to RM12.66bil from RM12.47bil. Net fee based income dipped to RM4.67bil from RM4.72bil.

“The higher revenue, coupled with lower overhead costs which declined 3.2% helped lift the Group’s operating profit by 10.6% to RM7.73bil compared to RM6.99bil a year earlier,” the bank said. 

Maybank said its sustained efforts in cost management enabled its cost-to-income ratio improve further to 46.9% from 48.8% a year earlier.  Income growth increased by 4% versus overheads growth on-year.  

Loan growth was steady across its key home markets and overall growth by 4.5%. Indonesia operations expanded by 8.9% on-year, Singapore 7.1%, other international markets 11.9% and Malaysia 4.9%.

Group gross deposits grew 3.8% led by Malaysian operations at 6.7%, Singapore 1.7%, but Indonesia recorded a contraction of 7.2% as part of the bank’s strategy in managing its cost of funding by reducing dependence on high cost time deposits.

Consistent efforts in maintaining an efficient balance between assets and liabilities enabled the group to contain pressures on its net interest margin which stood at 2.32%, as at September 2018, a marginal 7 bps dip from the 2.39% a year earlier.