Maybank Indonesia announced its Consolidated Financial Results for the nine months ended 30 September 2022, with Profit before Tax of Rp1.48 trillion and Profit after Tax and Minority Interest (PATAMI) of Rp1.06 trillion.
The Bank’s PBT and PATAMI remained comparatively stable to last year’s results. Despite growth in loans, interest income was lower due to lower loan yields, which were impacted by the tight competition for loans. However, Bank also booked lower provisions as loan quality and cost of funds improved and well-contained overheads.
The Bank’s Net Interest Margin (NIM) grew slightly by 2 bps to 4.8% in September 2022 due to the lower cost of funds.
Maybank Indonesia registered fee-based income, excluding Global Market fees of Rp1.23 trillion, which was attributed to loan and retail business-related fees and fees from subsidiaries. However, its Global Market fees declined 63.7% due to the global interest rate environment and volatile markets, resulting in a decrease of total fee income by 10.4% Y-o-Y.
Trade and business activities continued to project upward trends in nine months of 2022, followed by increasing loan demand, especially for large-scale enterprises and corporate entities, as well as retail loans as public consumption improved. These external factors were reflected in a significant increase in the Bank’s total outstanding loans, which grew 12.8% to Rp111.45 trillion from Rp98.78 trillion last year.
The Bank’s Global Banking segment grew exponentially by 25.0% to Rp45.63 trillion from Rp36.50 trillion in the same period last year supporting various projects and business expansions ranging from infrastructures, manufacturing and global trading.
Meanwhile, the Bank’s Community Financial Services (CFS) loan segment comprising of Retail and Non-retail loan segments grew 5.7% to Rp65.81 trillion from Rp62.29 trillion in the same period last year.
Non-retail loan specifically for retail small and medium enterprises (RSME) grew 5.7% to Rp12.76 trillion from Rp12.07 trillion. In the larger loan segment, loans for Small and Medium Enterprises (classified by the Bank as SME+) grew 1.3% to Rp5.08 trillion from Rp5.01 trillion due to resumption of business and market activities.
The Bank continued its efforts to rebalance its non-retail loan portfolio segment by focusing on loan disbursements to smaller segments, to ensure the effective use of loans to support clients’ business continuity. Accordingly, the Business Banking loans portfolio experienced a decrease of 14.9% which resulted in a decline of 3.6% Y-o-Y of the overall balance of the CFS Non-retail loan segment.
The Consolidated CFS Retail loan segment grew 13.8% to Rp37.74 trillion from Rp33.18 trillion in the same period last year, backed by improving consumer purchasing power. Credit card business and personal loans grew 12.5% to Rp2.83 trillion from Rp2.51 trillion, followed by growth in subsidiaries’ automotive financing of 20.0% to Rp18.33 trillion from Rp15.27 trillion. Mortgage loans continued to show growth since early 2022, increasing 8.2% to Rp16.03 trillion from Rp14.82 trillion last year.
Following the improvements in the overall economic outlook, the Bank saw a decrease in provisions for impairment losses by 23.1% to Rp818 billion, contributed by the Bank’s continued success in its restructuring efforts in particular for customers’ loans impacted by the pandemic.
The Bank’s consolidated Non-Performing Loan (NPL) ratio improved to 3.5% (gross) and 2.5% (net) in September 2022 from 4.6% (gross) and 2.9% (net) in September 2021 and from 3.7% (gross) and 2.6% (net) in December 2021. There is a decrease in NPL balances by 16.3% Y-o-Y. The Bank maintained a prudent banking approach and continued to apply a conservative risk posture.
President Commissioner Maybank Indonesia, Dato’ Khairussaleh Ramli, said Maybank Indonesia continued to demonstrate its resilience and ability to capture growth opportunities post-pandemic by booking strong loan growth in its key business segments for nine months of 2022.
“Indonesia is a huge market with tremendous opportunities, and we see traction in our growth momentum. Given Indonesia’s potential, backed by the Bank’s strong fundamentals, and sound risk management, I am confident that Maybank Indonesia will be able to navigate through potential market volatilities it may experience in the coming quarters.”
