Maybank reported a 10.7% increase in Net Profit of RM2.27 billion for the financial period ended 31 March 2023 (1Q FY23). Profit before tax (PBT) meanwhile, rose to RM3.06 billion from RM2.98 billion a year earlier. The group said the stable results were driven by continued improvement in asset quality as well as treasury and market gains that supported the Group’s net operating income.
Notwithstanding the challenging global economic environment, Maybank’s net operating income for the quarter grew to RM6.32 billion, on the back of a 12.4% Y-o-Y increase in non-interest income (NOII) to RM1.53 billion aided by gains on derivatives and foreign exchange as well as investment and trading gains. This was however negated by a lower net fund based income of 2.0% as net interest margin (NIM) declined 15bps Y-o-Y as a result of intense deposit competition. Overhead cost was higher at RM3.05 billion compared with RM2.73 billion a year earlier, as a result of increase in personnel cost owing to higher provisioning for the recently concluded collective agreement as well as IT, marketing and revenue related expenses. Asset quality improved as net impairment losses decreased by 50.9% to RM292.9 million in March
Gross impaired loans declined by 45bps to 1.50% from 1.95% a year earlier and 1.57% as at December 2022 due to write-offs, recoveries and low formation of newly impaired loans. As a result, the Group’s net credit charge-off rate stood at 25bps while loan loss coverage strengthened to 133.5% in the quarter from 106.4% compared with a year earlier and 131.2% as at December
Commenting on the results, Group President and CEO of Maybank, Dato’ Khairussaleh Ramli said that the first quarter result demonstrates Maybank’s underlying strength and resilience despite the challenging market conditions amidst high inflationary pressure and the softening global growth. The Group will continue to stay the course and remain steadfast to weather the uncertain headwinds, backed by sound capital and liquidity positions, and its diversified footprint and income streams for sustainable growth in the future.
Loans & Deposits continue growth momentum Group gross loans expanded at a faster pace of 5.3% Y-o-Y as at 31 March 2023, led by increases in Indonesia and Malaysia by 7.2% and 5.1% respectively, while other international markets recorded a slight 0.3% increase. Group gross deposits, meanwhile rose 3.0%, led primarily by a 5.2% growth in Malaysia and 0.3% in Singapore driven by the expansion in fixed deposits portfolio.
