CEO Morning Brief

Maybank’s 3Q Net Profit Rises 12% to RM2.36 Bil on Higher Operating Income, Lower Allowance for Impairment Losses

Publish date: Thu, 23 Nov 2023, 08:55 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Nov 22): Malayan Banking Bhd’s (Maybank) net profit rose 12.29% to RM2.36 billion for the third quarter ended Sept 30, 2023 (3QFY2023), from RM2.1 billion in the previous year’s corresponding quarter, on higher operating income and lower allowance for impairment losses on loans.

Earnings per share for the quarter was 19.56 sen, higher than 17.67 sen in 3QFY2022, the bank’s filing showed on Wednesday.

Quarterly revenue grew 22.95% to RM16.01 billion, from RM13.02 billion. No dividend was declared for 3QFY2023, according to Maybank, Southeast Asia’s fourth largest bank by assets.

Maybank said its net operating income fell 5.2% to RM6.75 billion from RM7.12 billion, due to lower net fund based income of RM4.81 billion, compared with RM5.29 billion in 3QFY2022, as net interest margin compressed due to persistent funding competition.

“NOII (non-interest income), however was up 6.1% year-on-year at RM1.94 billion, while net impairment provisions improved with a 59.3% decrease to RM342.2 million,” it said.

The bank’s other operating income grew 25.96% to RM1.86 billion from RM1.48 billion, mainly due to higher unrealised mark-to-market gain on revaluation of financial liability at fair value through profit or loss (FVTPL) of RM725.5 million.

This was also supported by higher foreign exchange gain of RM217.6 million, net investment income of RM80.9 million against a net investment loss of RM339.7 million in 3QFY2022, higher fee income of RM168.7 million, higher unrealised mark-to-market gain on revaluation of financial investment at FVTPL of RM114.5 million, and higher realised gain on derivatives of RM57 million.

Meanwhile, allowances for impairment losses on loans, advances, financing and other debts, declined by 26.56% to RM440.25 million, from RM599.55 million.

For the cumulative nine months ended Sept 30 (9MFY2023), Maybank’s net profit grew 20.97% to RM6.96 billion from RM5.76 billion, as revenue climbed 37.65% to RM47.34 billion from RM34.39 billion.

At the end of September, the bank’s total assets hit the RM1 trillion mark for the first time, compared to RM945 billion as at end-December.

In a statement, Maybank’s group president and chief executive officer (CEO) Datuk Khairussaleh Ramli said the group will continue to pursue opportunities for growth, guided by its corporate strategy across all of its customer and business segments within its Asean operations, while maintaining its strong liquidity position, improving asset quality, and preserving sound capital levels.

“The group will continue to bring about [a] positive impact to the communities it serves, in line with its purpose of Humanising Financial Services.

“As we deepen our M25+ strategy execution, coupled with the agile ways of working, we have made encouraging strides in further shaping Maybank to be forward-looking, innovative and customer centric, as we navigate through the ever-evolving operating landscape. Providing benefits to customers and uplifting customer experience via relevant product and solutions, as well as process improvements [in] facilitating account openings and loan applications, have resulted in broader services uptake,” said Khairussaleh.

“We continue to drive digitalisation and operational efficiencies, as well as build on the momentum for future revenue growth, boosted by the 12 Strategic Programmes (SP) under the M25+ strategy and its targeted investment. We also aim to further deploy sustainable financing and decarbonisation solutions for our customers, as we ourselves carve a clear pathway to net zero,” he added.

At Wednesday’s noon break, Maybank shares were down one sen or 0.11% at RM9.10, giving it a market capitalisation of RM109.75 billion.

Source: TheEdge - 23 Nov 2023

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