KUALA LUMPUR: Maybank Indonesia recorded a net profit and minority interest (Patami) of 1.3 trillion rupiah (1,000 rupiah=RM0.287) for the financial year ended Dec 31,2020 (FY2020) against 1.8 trillion rupiah in the previous year.
The bank recorded a significant increase in its digital banking transactions both in the retail segment and corporate segment, that is, total transaction volume made through e-banking service Maybank2u (M2U) in 2020 jumped 110%, hitting 10 million transactions.
In a statement yesterday, it said total customer deposits acquired through M2U surged 190.2% to reach 3.4 trillion rupiah.
Total transaction volume made through Maybank2E, an internet banking platform designed specifically for corporates, surged by 36.25 to 970,000 transactions, with funds collected increasing 78.8% to 14 trillion rupiah.
“Performance was supported by continued reduction in the cost of funds and effective management of overhead costs which declined by 10.7% to 5.7 trillion rupiah owing to continued cost management initiatives across the organisation during the Covid-19 pandemic, ” it said.
Net interest income fell 11.1% year-on-year to 7.3 trillion rupiah, due to a reduction in loan balances as the bank continued to maintain selective loan growth strategies due to the pandemic.
The net interest margin also decreased by 51 basis points to 4.6% at the end of December 2020, due to the decrease in loan yields, which was in line with the reduction in Bank Indonesia rates and loan restructuring programmes to assist customers impacted by the pandemic.
Non-performing loans stood at 4.0% (gross) and 2.5% (net) as of December 2020, compared with 3.35 (gross) and 1.9% (net) in 2019.
The bank said it will continue to take proactive measures to anticipate impacts to its portfolio and will remain vigilant over asset quality through its prudent stance and stringent risk management approach.
Maybank Indonesia’s capital level remains strong with the capital adequacy ratio standing solid at 24.3% as of December 2020, compared with 21.4% in the same period last year, while the total capital was higher at 27.1 trillion rupiah in December 2020 than 26.8 trillion rupiah, previously.
Its president director Taswin Zakaria said performance was impacted by the unprecedented challenges presented by the pandemic but the bank nevertheless, managed to offset declining income from loans with fee income resulting from global market, wealth management and bancassurance fees.
“At the same time, restrictions on community activities and social distancing has changed our consumer behaviour to rely more on online transactions which accelerated growth in our digital banking, ” he said.
Meanwhile, shariah banking contributed 16.2% of profits and comprises 20.4% of the bank’s total consolidated assets.
Shariah banking grew by 8.1% to 35.3 trillion rupiah in December 2020 from 32.6 trillion rupiah, previously.
Total customer deposits from shariah banking also increased 7.8% to 27.4 trillion rupiah from 25.5 trillion rupiah, supported by 28.6% growth in shariah savings.