Despite a 1.2 percent rise in net operating income and a 19.6 percent decline in net impairment losses, Maybank’s profit before tax for the second quarter ended 30 June 2019 (2QFY19) rose 1.6 percent to RM2.65 billion.
Net profit for the quarter was, however, marginally lower by 0.9 percent at RM1.94 billion compared with RM1.96 billion in the corresponding quarter last year, as the Group was subjected to a lower effective tax rate.
The second quarter also saw a stronger earnings growth momentum compared with the preceding quarter of January – March 2019 (1QFY19) as profit before tax for 2QFY19 was 8.2 percent higher than 1QFY19. Net profit also came in 7.3 percent higher, boosted by a 10.9 percent rise in net fee-based income arising mainly from better investment and trading income.
For the half year ended 30 June 2019 (1HFY19), net operating income was 1.0 percent higher at RM11.75 billion lifted by a 1.0 percent rise in net fund based income to RM8.47 billion on the back of a 4.6 percent growth in Group loans.
Meanwhile, net fee based income was 1.1 percent higher at RM3.28 billion, as the Group recorded stronger net fee income, mainly from its insurance segment. Profit before tax, however, came in slightly lower at RM5.10 billion compared with RM5.17 billion in the corresponding period last year while net profit stood at RM3.75 billion against RM3.83 billion a year earlier.
Maybank Chairman, Datuk Mohaiyani Shamsudin said that the better momentum in the second quarter was achieved despite the challenging operating environment globally. “We have continued to create value for our stakeholders and remain committed to pursuing a responsible growth strategy for the future. We are also optimistic that there will be better business opportunities in the second half of the year, driven by the measures being put in place by governments regionally to stimulate growth and boost consumer spending.”
Meanwhile, Group President & CEO Datuk Abdul Farid Alias said that Maybank continued to benefit from its strong franchise and diversified income streams, which has buffered it from the impact of current global uncertainties. “Our capital and liquidity base remains robust and we will focus on areas such as driving fee income across our international footprint, while managing costs and risks in a disciplined manner to ensure that we remain resilient on all fronts. At the same time, our digital agenda will remain a key strategy to ensure that we continue to meet our customers’ evolving banking needs for the future.”
The Board of Directors has declared a single-tier interim dividend of 25 sen per share, to be paid fully in cash. The interim dividend represents a payout of 74.9 percent of net profit for the period and amounts to RM2.81 billion.