Maybank’s net profit hits a strong 26.0% Y-o-Y of RM4.60 billion in the first half of the year (1H FY23) compared with the same period last year, while profit before tax (PBT) was up 21.8% to RM6.43 billion.
Southeast Asia’s fourth largest bank by assets stated today (Aug 30) that net operating income for the six months ended 30 June 2023 also rose by 8.6% Y-o-Y to RM13.63 billion, led by a 61.0% boost in non-interest income to RM4.01 billion.
This however, was offset by a lower net fund-based income, which declined 4.4% Y-o-Y to RM9.62 billion, as NIM compressed due to higher funding costs led by interest rate hikes in the past year and deposit pressure.
Overhead cost was higher at RM6.47 billion compared with RM5.62 billion a year earlier attributed to higher personnel costs mainly from provisions for the recently concluded collective agreements, credit card-related fees, IT-related costs and marketing expenses.
Notwithstanding this, pre-provisioning operating profit (PPOP) increased by 3.3% to RM7.16 billion from RM6.94 billion in 1H FY22.
Asset quality improved as gross impaired loans declined by 34bps to 1.47% from 1.81% a year earlier due to write offs and low formation of newly impaired loans. Loan loss coverage continued to strengthen to 130.3% in the first half from 122.3% compared with a year earlier, while net impairment provisions decreased by 50.5% to RM867.4 million in 1H FY23.
The Group continues to undertake proactive engagement with clients facing financial challenges by assisting them in managing their commitments effectively.
Maybank Chairman and Group President & CEO Tan Sri Dato’ Sri Zamzamzairani Mohd Isa said that the promising first half performance continues to validate the strong franchise that Maybank has and the M25+ strategy the Bank has adopted despite the global challenges faced. The Group remains positive on the outlook in the region, especially its home markets and will continue to create value for its stakeholders and remain committed to pursuing a responsible growth strategy for the future, in line with its mission to Humanise Financial Services.
“We are optimistic that better business opportunities remain, driven by policies outlined by the government to further drive private sector investments and enhance consumer confidence. We intend to leverage our strong brand equity, digital capabilities as well as expertise and solid infrastructure to tap into growth opportunities and serve our customers better.”
Meanwhile, Group President & CEO of Maybank, Dato’ Khairussaleh Ramli said that Maybank’s aim going forward will be to accelerate its growth momentum and boost revenue drivers with emphasis on key growth areas, while improving asset quality and maintaining strong liquidity and capital positions to manage potential risks that may arise from changes in the operating environment.
“We will continue to prioritise customer centricity through the enhancement of our customers’ journey by providing relevant financial solutions and services across various touchpoints and focus on our strategic initiatives under Maybank’s M25+ strategy anchored on the five strategic thrusts.
On our ambition of being a sustainability leader in ASEAN, the Group will focus on capacity-building and engagement through advisory and client solutioning to support the responsible transition of the Group and its clients to a low carbon economy. We also intend to deepen our Islamic wealth management capabilities by developing a Centre of Excellence to lead the Group’s aspiration of becoming a Global Islamic Finance leader,” added Dato’ Khairussaleh.
2Q FY23 vs 2QFY22
For the second quarter of 2023, net profit rose by a strong 45.4% Y-o-Y to RM2.34 billion compared with the same period last year, while profit before tax (PBT) for the quarter was up 46.5% to RM3.37 billion.
Net operating income expanded by 15.9% Y-o-Y to RM7.31 billion led by higher non-interest income from stronger treasury and markets income, surging 119.3% to RM2.48 billion compared with a year earlier. Net fund-based income however recorded a slight decrease to RM4.83 billion compared with RM5.17 billion as NIM compressed due to persisting funding competition.
2Q FY23 vs 1Q FY23
The Group’s net profit for 2Q FY23 was 3.2% higher than the RM2.27 billion registered in 1QFY23, while PBT also recorded an increase by 10.3%. The steady performance was contributed by higher income for the quarter.
Dividend
The Board of Directors has declared a first interim full cash dividend of 29 sen per share. This translates into a dividend payout ratio of 75.9% equivalent to RM3.50 billion payout.
Loans & Deposits
Group gross loans expanded 5.3% Y-o-Y as at 30 June 2023, led by growth in Malaysia by 3.9% and Indonesia by 2.2%, while Singapore moderated by 1.7%. Other international markets recorded an 8.8% increase.
Meanwhile, group gross deposits rose 2.8%, led primarily by a 6.4% growth in Singapore and 0.2% in Malaysia mainly driven by the expansion in fixed deposits portfolio. Consequently, Group CASA ratio moderated to 37.7% as at June 2023.
