KUALA LUMPUR: Following a strong start to the financial year, Malayan Banking Bhd (Maybank) group president and CEO Datuk Khairussaleh Ramli said the group will stay the course and weather the uncertain headwinds.
In a statement, Khairussaleh said the group's efforts are backed by sound capital and liquidity positions and its diversified footprint and income streams for sustainable growth.
"Execution of our M25+ strategy is well underway, anchored on the five key strategic thrusts of intensifying customer centricity, accelerating digitalisation and technological modernisation, strengthening Maybank’s business presence across the region, driving our leadership position in the sustainability agenda as well as claiming our global leadership in Islamic Banking.
"This is in line with our purpose of humanising financial services as we deliver a differentiated customer experience and serve the community as a force for good in Asean," he added.
For the first quarter of the financial year ended March 31, 2023, Maybank registered a net profit of RM2.27bil, a 10.7% increase from RM2.05bil in the same quarter last year.
The group's earnings per share was 18.79 sen as compared to 17.23 sen in 1QFY22.
Revenue rose 29.5% to RM14.78bil from RM11.42bil in the comparative quarter.
According to the group, net operating income grew to RM6.32bil on the back of a 12.4% year-on-year (y-o-y) increase in non-interest income (NOII) to RM1.53bil.
The bank said the increase in NOII was owing to gains on derivatives and foreign exchange as well as investment and trading gains.
However, this was negated by a lower net fund based income of 2% as net interest margin (NIM) declined 15bps y-o-y as a result of intense deposit competition.
Overhead cost was higher at RM3.05bil compared with RM2.73bil a year earlier, as a result of an increase in personnel costs.
Asset quality improved as net impairment losses decreased 50.9% to RM292.9mil in March 2023.
Gross impaired loans declined 45bps to 1.5% from 1.95% a year earlier and 1.57% as at December 2022 due to write-offs, recoveries and low formation of newly impaired loans.
As a result, the group’s net credit charge-off rate stood at 25bps while loan loss coverage strengthened to 133.5% in the quarter from 106.4% compared with a year earlier and 131.2% as at December 2022.
Meanwhile, the group's gross loans rose 5.3% y-o-y, led by increases in Indonesia and Malaysia.
Group gross deposits rose 3%, led primarily by a 5.2% growth in Malaysia and 0.3% in Singapore driven by the expansion in fixed deposits portfolio.
Consequently, group current account savings account (Casa) ratio moderated to 39.1% from 46.2% a year ago, but remains above pre-pandemic level.
Maybank's CET1 capital ratio stood at 15.09%, and total capital ratio at 18.48% as at March 31, 2023.
The group’s liquidity coverage ratio stood at 145.8%, above the regulatory requirement of 100%.