Maybank Q1 net profit jumps 19%

PETALING JAYA: Malayan Banking Bhd (Maybank)’s net profit for the first quarter ended March 31, 2017 rose 19.3% to RM1.7 billion from RM1.43 billion a year earlier, as it booked more loans, and benefitted from an improved net interest margin as well as substantially lower net impairment losses.
Its revenue jumped marginally to RM11.28 billion compared with RM11.18 billion in the previous year’s corresponding quarter.
Gross loans rose 10.1% year-on-year, with financing from both the Community Financial Services (CFS) and Global Banking (GB) segments showing healthy expansion.
Deposits grew 4.5% year-on-year to RM513.4 billion, lifting the group current and savings account (CASA) ratio to 37.1% from 33.3% a year earlier, and reduced the cost of funding which helped improve the net interest margin for the quarter to 2.43% compared with 2.34% a year earlier.
Net impairment losses for the quarter dropped by 38.2% to RM542.8 million, as the group continued to realise the benefits from the proactive stance taken since early last year to restructure and reschedule (R&R) the credit facilities of customers impacted by the challenging economic environment.
To manage asset quality, Maybank has maintained this prudent stand of R&R from an early stage to ensure that customers are sufficiently supported to weather any continuing adverse changes in the market in 2017. Given this approach, the group registered a slight uptick in its gross impaired loans ratio to 2.40% in the first quarter of 2017, from 2.28% in December 2016. Notwithstanding this, the group maintained a healthy liquidity coverage ratio of 134%, well above the 80% minimum requirement set by Bank Negara Malaysia.
Maybank chairman Datuk Mohaiyani Shamsudin said leveraging on its extensive franchise and strong balance sheet, it is confident that this growth momentum will gain traction as it continues to support the region’s economic development, particularly in the consumer and infrastructure segments.
Meanwhile group president & CEO Datuk Abdul Farid Alias said the continuous growth in the group’s top line reflects Maybank inherent resilience and ability to grow as a result of its diversified operations.
“While we aim to build up our growth momentum in the coming quarters, we will, nevertheless, continue to be watchful over further impact to our clients from changes in the operating environment, and actively support them in managing their risks. At the same time, our focus will remain on enhancing staff productivity, managing costs efficiently and strengthening our liquidity and capital position to sustain our performance in the future.”