KUALA LUMPUR: A prolonged impact from the Covid-19 pandemic has hit PT Bank Maybank Indonesia, Tbk’s net profit in its first half of the financial year ending Dec 31, 2021.
In a statement, Maybank Indonesia said its first half net profit had fallen year-on-year (y-o-y) by 37% to 510 billion rupiah (RM149.8mil) from 810 billion rupiah (RM237.84mil) in the same period last year.
“The current pandemic situation has been quite concerning, as the government’s data showed an increase in the number of Covid-19 positive cases in the second quarter of 2021. This has impacted social and business activities, including financial services,” said Maybank Indonesia president director Taswin Zakaria.
“The implementation of emergency public activity restriction and the acceleration of vaccination programmes could boost the market’s confidence and lead to the gradual recovery of Indonesia’s economy,” he said.
He said the bank remained disciplined in managing the growth of its business and would continue to apply conservative risk management during these challenging times.
“At the same time, we continue to innovate in providing various financial products and solutions relevant to our customers, even during the pandemic, in line with our mission of Humanising Financial Services. With our strong capital position and ample liquidity, we are poised to grow once the opportunity presents itself with economic recovery ahead,” he added.
Maybank Indonesia’s net interest income declined by 12.1% to 3.5 trillion rupiah (RM1.03bil) on weaker loan disbursements and falling loan yields, in line with the reduction in Bank Indonesia’s rates and ongoing restructuring of customers’ loans impacted by the pandemic.
While its net interest margins (NIM) dropped by 54 basis points to 4.47% at the end of June 2021, compared with 5.01% in the same period last year.
It noted that for the second quarter of 2021, the its NIM rose 12 basis points to 4.35% compared with the first quarter of 2021, on the back of improved cost of funding.
Maybank Indonesia’s fee-based income or non-interest income fell 19.6% to 952 billion rupiah (RM279.53mil) in the first half of 2021, on a drop in Global Market-related fee income while its Bancassurance fee grew by 79% to 106 billion rupiah (RM31.16mil).
The bank noted that the decline in net interest and fee-based incomes amid the prolonged pandemic conditions had partially been offset by lower loan-loss provisions as well as reduced credit and overhead costs.
“We continue to see the impact from the prolonged Covid-19 pandemic but remain optimistic that the challenging conditions and uncertainties will be overcome in time,” he added.