Maybank’s net profit for the third quarter rose 28.5% to RM2.17 billion compared to a year earlier as the Group benefitted from the improving economic environment across the region. Higher net fund and fee-based income as well as a 25.2% Y-o-Y reduction in net impairment losses boosted the Group’s profit before tax by 41.4% from a year earlier to RM3.21 billion.
The group said its net operating income increased by 20.6% Y-o-Y to reach RM7.41 billion. Maybank adds it was driven by higher net fee based income of 48.0% to RM2.12 billion from RM1.43 billion a year earlier and a 12.2% rise in net fund based income to RM5.30 billion from RM4.72 billion. The improvement in net fee-based income was mainly led by mark-to-market gains in financial liabilities and foreign exchange gains while net fund-based income rose on better loans growth across all home markets and net interest margin (NIM) expansion from a rising interest rate environment. Subsequently, this lifted pre-provisioning operating profit (PPOP) by 20.8% to RM4.02 billion compared with a year earlier.
Overhead costs expanded to RM3.39 billion from RM2.82 billion a year earlier on normalising of business activities, inflationary adjusted spend and higher IT expenses. The Group’s cost-to-income ratio improved slightly to 45.8% from 45.9% a year earlier, as income growth outpaced cost growth for 3QFY22.
Meanwhile, the group’s net impairment losses declined 25.2% to RM0.84 billion from RM1.13 billion a year earlier as higher proactive provisioning was made last year due to macroeconomic headwinds and potential borrower vulnerabilities owing to prolonged movement restrictions.
3QFY22 vs 2QFY22
Against Q2 2022, PBT came in 20.3% higher at RM3.21 billion compared with the preceding quarter’s RM2.67 billion as net operating income rose 8.5% and net impairment losses declined by 27.2%. Net profit for the quarter, meanwhile, was 16.6% higher than 2QFY22.
For the nine months, the Group’s PBT improved by 8.3% to RM8.85 billion from RM8.17 billion a year earlier driven by better net operating income of RM20.72 billion, which rose 8.2% Y-o-Y from RM19.15 billion.
Commenting on the exceptional results, Chairman, Tan Sri Dato’ Sri Zamzamzairani Mohd Isa said “The commendable results we have achieved demonstrates the Group’s resilience and ability to sustain its growth momentum across all business lines as well as home markets over the past nine months. With the recent unveiling of the Group’s refined corporate strategy, M25+, we will focus on key priorities including intensifying customer centricity and taking a leadership position in sustainability and Islamic Wealth Management.”
Meanwhile, Group President & CEO, Dato’ Khairussaleh Ramli said that the Group will drive income growth across its loan portfolio and fee income streams as well as maintain discipline over its asset quality monitoring.
