PETALING JAYA: An improvement in fee-based income in the financial year ended Dec 31, 2019 (FY19) helped lift PT Bank Maybank Indonesia Tbk’s gross operating income by 3.7% to 10.8 trillion rupiah (RM3.17bil) from 10.4 trillion rupiah in FY18.
Maybank Indonesia said in a statement that operating profit before provision increased 0.3% to 4.4 trillion rupiah, while profit after tax and minority interest declined 18.2% to 1.8 trillion rupiah from 2.2 trillion rupiah in FY18, due to higher loan loss provision.
It said it has maintained a conservative stance by setting aside provision for accounts primarily in the commercial segment impacted by the challenging economic environment.
“Loan loss provision rose 35.9% to 1.8 trillion rupiah as of December 2019,” it said.
It reported a 14.1% increase in fee-based income to 2.6 trillion rupiah in December 2019 from 2.3 trillion rupiah in FY18, attributable mainly to global market-related fees, bancassurance, investment, and e-channel transaction fees.
Net interest income rose 0.8% to 8.2 trillion rupiah while net interest margin declined by 17 basis points on-year to 5.07%.
However, net interest margin as at December 2019 was 10-basis-point higher compared with 4.97% in September 2019, owing to the bank’s ongoing efforts to improve loan yield and reduce cost of funds during the fourth quarter of the year.
It also managed to pare down its liquidity surplus and higher cost of funds which was maintained during the first semester as a proactive stance to ensure sufficient liquidity to mitigate the unforeseen risks during and post-general elections.
The bank will continue to maintain discipline in loan pricing and active funding management to better mitigate pressures on margin.
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