Maybank posts third straight profit decline on loan impairments

[KUALA LUMPUR] Malayan Banking Bhd posted a third straight decline in quarterly profit as the biggest Malaysian lender boosted allowances for loan impairments.

Net income fell to RM1.16 billion (S$390 million) in the three months through June from RM1.58 billion a year earlier, the Kuala Lumpur-based company said in a stock exchange filing on Thursday. Revenue increased about 23 per cent to RM10.9 billion.

Maybank has previously flagged concern over asset quality as falling oil income and weaker exports put Malaysia's economy on course for its slowest annual growth in seven years.

Chief executive officer Abdul Farid Alias said in May that the bank will be more vigilant in identifying customers who may be vulnerable to market volatility after higher loan provisions eroded profit in the past two quarters.

BLOOMBERG