Maybank Indonesia’s net profit strengthens 7%


  • Corporate News
  • Tuesday, 04 Aug 2020

Maybank HQ in KL

KUALA LUMPUR: Bank Maybank Indonesia Tbk’s profit after tax and minority interest (PATAMI) rose by 7% year-on-year to 809.7 billion rupiah during the first half of 2020 ended June 30 (1H2020).

The bank attributed the performance to the improvement in its fee-based income, which rose by 1.4% to 1.2 trillion rupiah in June 2020, as well as sustained strategic cost management.

“The loan-to-deposit ratio (LDR-Bank only) was at a healthy level of 94.2%, while its liquidity coverage ratio (LCR-Bank only) stood at 152.4% as of June 2020 - well above the mandatory minimum of 100%.

“Net interest margin improved to five% as at June 2020 compared with 4.8% in June 2019, mainly supported by the reduction in cost of deposit as a result of disciplined pricing and better funding management, ” it said in a statement.

Maybank Indonesia said overhead costs were managed effectively, declining by 4.6% to three trillion rupiah in June 2020 due to continued cost management initiatives across business lines and support units, coupled with reduction in general and administration costs as the bank implemented work from home arrangements following the Covid-19 pandemic.— Bernama

Meanwhile, the bank’s total loans dipped 14.6% to Rp115.7 trillion, in line with current market conditions where the industry is facing a slowdown in loans growth.

“The bank continues to maintain its conservative stance and align its portfolio growth with its risk posture which has been further tightened, given the current pandemic situation, ” it said.

Furthermore, as the pandemic’s impact became more evident in the second quarter of 2020, the bank had been closely monitoring its assets across all business segments while proactively engaging with its debtors to better assess the pandemic’s impact on their business.

“The bank has engaged with almost all of its non-retail debtors to assess whether restructuring and

rescheduling (R&R) are required to ensure that they remain sustainable over this period.

“The bank has also simplified the process and facilitated retail customers to apply for R&R online via email, the call centre or its official website, ” it said, adding that to-date, the bank has approved R&R loans for more than 22,000 debtors with a total outstanding of Rp15.4 trillion.

-- BERNAMA

TAGS: Maybank Indonesia, Net Profit, Rupiah, Covid-19

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