Maybank Indonesia posts RM142mil pre-tax profit

Maybank headquarters in building in Kuala Lumpur

KUALA LUMPUR: PT Bank Maybank Indonesia Tbk (Maybank Indonesia) recorded a lower pre-tax profit of 501 billion rupiah (RM142.57mil) in the first quarter ended March 31,2021, a decline of 31.8% against the same period last year.

Profit after tax and minority interest fell to 381 billion rupiah (RM108.4mil) during the quarter under review from 538 billion rupiah (RM153.1mil) previously but rose 127.6% compared with the fourth quarter 2020, as the bank capitalised on selective opportunities in an improving market through its digital banking services.

President director Taswin Zakaria said the bank’s financial performance in the first quarter was reflective of the continued challenging conditions this year.

“We are continuously monitoring the risks within all our portfolios while at the same time pursuing all available opportunities, especially through our digital banking services.

“Nevertheless, we will remain cautious and vigilant in mitigating the prolonged impacts of the pandemic and will continue providing support to customers to ensure their business sustainability, ” he said in a statement.

Maybank Indonesia said net interest income eased 13.7% to 1.7 trillion rupiah in the first quarter owing to a decline in loan balances as the bank continued to see loan redemption, while maintaining selective loan growth strategies due to the pandemic situation.

The bank said net interest margin also decreased by 61 basis points year-on-year to 4.35% due to the decrease in loan yields, which was in line with the reduction in Bank Indonesia rates and the loan restructuring programme to assist customers whose businesses and incomes were impacted by the Covid-19 pandemic.

However, the bank managed to reduce its cost of funds by 126 basis points through continued focus on growing current and savings accounts in its liquidity to better mitigate pressure on margins.

President commissioner Datuk Abdul Farid Alias said despite the weaker economic environment, the group is confident that its strong asset and liability management capabilities as well as robust capital and liquidity levels would help Maybank Indonesia face the challenges in the coming quarters.

“We are pleased with the growth in syariah financing, following the continued implementation of our ‘Shariah First’ strategy.

“Our experiences have taught us to remain focused on turning challenges into opportunities, and we are at the same time reinforcing our brand positioning by boosting our digital banking and remain focused in customer experience, to place us on a stronger footing for the expected economic upturn, ” he said. — Bernama