Maybank Indonesia’s profit before tax (PBT) eased 7.4% to 2.04 trillion rupiah for the financial year ended Dec 31, 2022, from 2.20 trillion rupiah a year before, primarily due to lower loan yields.
The Maybank group said the decrease was due to tight competition within the industry, as well as a drop in global markets (GM), bancassurance and wealth management incomes.
“However, Maybank Indonesia continued to improve its cost of funds and booked lower provisions, in line with improving loan quality,” it said in a statement.
The bank’s net interest margin expanded by 36 basis points to 5.1% in December 2022, contributed by lower cost of funds, higher current account and savings account (Casa) balance, and growth in the higher margin auto-loan businesses.
Maybank Indonesia recorded a drop in fee-based income of 15.8%, contributed by a significant drop in GM-related fees, which fell 62.7% year-on-year (y-o-y), impacted by the spike in global interest rates and volatile markets.
“However, retail forex services income from branch offices improved in almost all regions across Indonesia,” it said.
The bank’s total loans grew 5.9% to 107.82 trillion rupiah, mainly driven by higher corporate banking and consumer loans.
Following upward trends in consumers’ purchasing power, the bank’s community financial services’ retail loan segments grew significantly by 13.6% to 38.99 trillion rupiah, led by the two- and four-wheeler business, which grew 22.6%. Credit card business and personal loans expanded by 14.7% and mortgages by 4.6%.
The consolidated non-performing loan (NPL) ratio improved to 3.5% (gross) and 2.3% (net) in December 2022, from 3.7% (gross) and 2.6% (net) in December 2021.
“From a liquidity perspective, the bank’s Casa stood at 54.35 trillion rupiah, with a slight growth in the bank’s current account by 0.2% to 32.43 trillion rupiah and savings account at 21.91 trillion rupiah,” it said.
The bank also managed to reduce high-cost deposits, resulting in a decline of 15.3% in time deposits to 51.36 trillion rupiah from the year before.
“Loan to deposit ratio was at a healthy level of 86.9% in December 2022 from 76.3% in December 2021, and liquidity coverage ratio was at 168.5% in December 2022, exceeding regulator’s minimum level of 100%,” it noted.
Maybank Indonesia’s total shariah banking assets grew 2.1% to 40.04 trillion rupiah, comprising 26.9% of the bank’s total standalone assets.
“(Islamic) financing grew 3.1% to 26.43 trillion rupiah, with more focus on small and medium enterprises (SME) and retail financing,” the banking group said.
As for subsidiary PT Maybank Indonesia Finance, the group said it recorded a significant growth of 15.4% in PBT to 566 billion rupiah, amid “growing demand for four-wheeled financing”.
Another subsidiary, PT Wahana Ottomitra Multiartha Tbk, registered a jump of 82.3% in PBT to 280 billion rupiah from the year before, on rising demand for two-wheeler vehicles and other financings.
