KUALA LUMPUR: Malayan Banking Bhd’s net profit hit RM10.09 billion in the financial year ended Dec 31, 2024 (FY24), 7.9% higher than RM9.35 billion recorded in FY23.
Revenue climbed to RM68.94 billion from RM63.52 billion previously.
The banking group said its net interest and Islamic banking incomes for FY24 increased 3.9% year-on-year (y-o-y) to RM21.15 billion.
At the same time, its insurance/takaful service performance soared 133.5% to RM1.28 billion, it said in a stock exchange filing yesterday.
Maybank said other operating income for FY24 was RM9.07 billion, up 13.5% y-o-y from RM7.99 billion in FY23.
This was mainly due to higher gain on disposal of financial assets at the revaluation of financial liability at fair value through profit or loss (FVTPL) of RM1.02 billion and higher unrealised mark-to-market gain on revaluation of financial liabilities at FVTPL of RM829.1 million.
Meanwhile, a higher gain on disposal of financial investments at fair value through other comprehensive income (FVOCI) of RM618.5 million, higher unrealised mark-to-market gain on revaluation of financial investments at FVTPL of RM492.8 million, higher fee income of RM316.5 million, and realised gain on derivatives of RM182.5 million also contributed to the improved operating income.
The increases were, however, offset by higher unrealised mark-to-market loss on revaluation of derivatives of RM1.55 billion, lower net gain on foreign exchange of RM640.4 million, and lower unrealised mark-to-market gain on revaluation of financial assets designated upon initial recognition at FVTPL of RM439.5 million.
Meanwhile, the group overhead expenses for FY24 expanded 8% to RM14.46 billion, mainly due to higher personnel expenses (RM817.3 million), higher establishment costs (RM207.1 million), and higher marketing expenses (RM68.4 million).
The increases were, however, mitigated by lower administration and general expenses of RM21.4 million.
Maybank said net allowances for impairment losses on loans, advances, financing and other debts decreased by 8.5% y-o-y to RM1.67 billion, while net writeback for impairment losses on financial investments decreased by RM138.2 million to RM42.4 million as compared to FY23.
For the fourth quarter of FY24 (4Q FY2024), its net profit rose to RM2.53 billion from RM2.39 billion in 4Q 2023, while revenue went up to RM16.74 billion versus RM16.17 billion previously.
Its net interest and Islamic Banking income for the quarter increased 2.4% y-o-y to RM5.37 billion, while the insurance/takaful service result improved to RM352.7 million.
Maybank said other operating income rose to RM1.95 billion for 4QFY2024, mainly due to an unrealised mark-to-market gain on revaluation of financial liabilities at FVTPL of RM1.77 billion versus an unrealised mark-to-market loss of RM1.51 billion previously and higher net investment income of RM528.8 million.
The increases were, however, offset by an unrealised mark-to-market loss on the revaluation of derivatives of RM1.31 billion as compared to an unrealised mark-to-market gain of RM1.7 billion and net loss on foreign exchange of RM128.4 million as compared to a net gain of RM376.9 million in 4Q FY2023.
It said net allowances for impairment losses on loans, advances, financing and other debts decreased 4.2% to RM444.8 million, while net writeback of impairment losses on financial investments for the quarter stood at RM83.7 million against net allowances of RM2.2 million previously.
Maybank said against the strong economic growth anticipated in its home markets, it is well positioned to support the private and public investment upcycle for key economic projects.
“With its M25+ strategic plan in the final year, Maybank will accelerate identified initiatives under its 14 strategic programmes aimed at intensifying customer centricity and accelerating digital and technology modernisation to solidify its regional presence,” it said.
The banking group aims to continue to double down on the penetration of its extensive customer base through a focus on segments, cross-selling endeavours, and leveraging ecosystem partnerships regionally, while focusing on super growth areas of wealth management, mid-market, non-retail and bancassurance segments. – Bernama
