Maybank reported a 9.8% increase in net profit of RM2.49 billion for the financial period ended 31 March 2024 (1Q FY24). Profit before tax (PBT) meanwhile, rose by 12.6% to RM3.44 billion compared with a year earlier. The results were driven by strong growth in core fees as well as an increase in treasury and market gains that supported the Group’s net operating income.
The groups revenue rose significantly higher to RM18 billion against FY23Q1 of RM15 billion, while net operating income for the quarter grew by a strong 19.8% to RM7.58 billion. Maybank said this was mainly on the back of a robust 79.2% Y-o-Y increase in non-interest income (NOII) to RM2.74 billion boosted by improved core fees which rose 17.3% as well as better investment & trading income. Net fund based income also improved to RM4.84 billion from RM4.80 billion compared to a year earlier supported by strong group gross loans growth of 11.2% from all key segments in Malaysia, Singapore and Indonesia. Net interest margin (NIM) declined 19 bps Y-o-Y as a result of higher funding cost across the home markets.
Overhead cost was higher at RM3.66 billion compared with RM3.05 billion a year earlier, as a result of increase in personnel costs, admin and general costs, IT expenses, and marketing expenses. Notwithstanding that, the Group’s pre-provisioning operating profit (PPOP) recorded an increase of 19.8% Y-o-Y to RM3.92 billion.
Net impairment provisions stood at RM544.3 million from RM292.9 million a year earlier on increased net provisions for loans by 29.9% to RM467.77 million and RM76.49 million for financial investments and others. As a result, net credit charge off rate for loans increased to 29 bps from 25 bps the year before. Gross impaired loans ratio however improved by 18 bps to 1.32% from 1.50% a year earlier while loan loss coverage remained strong at 127.3% from 133.5% in the same quarter of
President & Group CEO, Dato’ Khairussaleh Ramli said that the commendable first quarter earnings supported by robust topline, good deposit growth and stable asset quality is testament to Maybank’s resilience and focus in executing its M25+ strategy.
