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Maybank's quarterly profit falls 16% on higher provisions
[KUALA LUMPUR] Malaysia's largest lender by assets, posted a 16 per cent drop in first-quarter profit as it set aside more provisions to accommodate restructuring of loans.
Maybank's net profit for the three months to March 31 fell to 1.43 billion ringgit (S$483 million) from 1.7 billion ringgit in the year-ago period.
"The increase in provisioning was primarily owing to the rise in number of corporate loans undergoing restructuring and rescheduling of their repayment to better match their projected cash flows arising from the subdued operating environment," the company said in a statement on Friday.
South-east Asia's fourth-biggest bank said it expects its financial performance for the year to be "satisfactory in a more challenging regional environment".
At Maybank's home base of Malaysia, first-quarter economic growth was the slowest in nearly seven years due to weak exports and tepid domestic demand.
Smaller rival CIMB Group Holdings Bhd maintained on Thursday a cautious outlook for the year, citing slowing economies in the region.