Monday, 22 April 2024

Maybank's net profit up 26% to $991.3M in 1H FY23

5 min read

Maybank, Southeast Asia’s fourth largest bank by assets, today announced a solid performance in the first half of the year (1H FY23) with net profit rising by a strong 26.0% YoY to MYR 4.60 billion ($991.3 million) compared with the same period last year, while profit before tax (PBT) was up 21.8% to MYR 6.43 billion ($1.3 billion).

Net operating income for the six months ended 30 June 2023 also rose by 8.6% YoY to MYR13.63 billion ($2.9 billion), led by a 61.0% boost in non-interest income to MYR4.01 billion ($864 million). This however, was offset by a lower net fund-based income, which declined 4.4% YoY to MYR9.62 billion ($2.07 billion), as NIM compressed due to higher funding costs led by interest rate hikes in the past year and deposit pressure.

Overhead cost was higher at MYR6.47 billion ($1.39 billion) compared with MYR5.62 billion ($1.2 billion) a year earlier attributed to higher personnel costs mainly from provisions for the recently concluded collective agreements, credit card-related fees, IT-related costs and marketing expenses. Notwithstanding this, pre-provisioning operating profit (PPOP) increased by 3.3% to MYR7.16 billion ($1.5 billion) from MYR6.94 billion ($1.4 billion) in 1H FY22.

Asset quality improved as gross impaired loans declined by 34bps to 1.47% from 1.81% a year earlier due to write-offs and low formation of newly impaired loans. Loan loss coverage continued to strengthen to 130.3% in the first half from 122.3% compared with a year earlier, while net impairment provisions decreased by 50.5% to MYR867.4 million ($186 million) in 1H FY23. The group continues to undertake proactive engagement with clients facing financial challenges by assisting them in managing their commitments effectively.

2Q FY23 vs 2QFY22
For the second quarter of 2023, net profit rose by a strong 45.4% YoY to MYR2.34 billion ($504 million) compared with the same period last year, while profit before tax (PBT) for the quarter was up 46.5% to MYR3.37 billion ($726 million).

Net operating income expanded by 15.9% YoY to MYR7.31 billion ($1.575 billion) led by higher non-interest income from stronger treasury and markets income, surging 119.3% to MYR2.48 billion ($534.4 million) compared with a year earlier. Net fund-based income however recorded a slight decrease to MYR4.83 billion ($1 billion) compared with MYR5.17 billion ($1.11 billion) as NIM compressed due to persisting funding competition.

2Q FY23 vs 1Q FY23
The group’s net profit for 2Q FY23 was 3.2% higher than the MYR2.27 billion ($489.2 million) registered in 1QFY23, while PBT also recorded an increase by 10.3%. The steady performance was contributed by higher income for the quarter.

Zamzamzairani Mohd Isa, chairman of Maybank said that the promising first half performance continues to validate the strong franchise that Maybank has and the M25+ strategy the bank has adopted despite the global challenges faced. The group remains positive on the outlook in the region, especially its home markets and will continue to create value for its stakeholders and remain committed to pursuing a responsible growth strategy for the future, in line with its mission to humanise financial services.

“We are optimistic that better business opportunities remain, driven by policies outlined by the government to further drive private sector investments and enhance consumer confidence. We intend to leverage our strong brand equity, digital capabilities as well as expertise and solid infrastructure to tap into growth opportunities and serve our customers better.”

Meanwhile, Khairussaleh Ramli, group president and CEO of Maybank, said that Maybank’s aim going forward will be to accelerate its growth momentum and boost revenue drivers with emphasis on key growth areas, while improving asset quality and maintaining strong liquidity and capital positions to manage potential risks that may arise from changes in the operating environment.

“We will continue to prioritise customer centricity through the enhancement of our customers’ journey by providing relevant financial solutions and services across various touchpoints and focus on our strategic initiatives under Maybank’s M25+ strategy anchored on the five strategic thrusts.

On our ambition of being a sustainability leader in ASEAN, the group will focus on capacity-building and engagement through advisory and client solutioning to support the responsible transition of the group and its clients to a low-carbon economy. We also intend to deepen our Islamic wealth management capabilities by developing a Centre of Excellence to lead the group’s aspiration of becoming a Global Islamic Finance leader,” added Khairussaleh.

Re-disseminated by The Asian Banker

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