Maybank Q3 earnings up 28.5% to RM2.2b on higher revenue 

MALAYAN Banking (Maybank) on Wednesday (Nov 23) posted a net profit of some RM2.2 billion (S$655.9 million) for the third fiscal quarter ended September, up 28.5 per cent from its earnings of RM1.7 billion in the comparative year-ago period. 

This brought the group’s earnings for the nine month period to about RM6.1 billion, up by a marginal 0.5 per cent from the same period last year. 

Maybank booked a 20.4 per cent increase in revenue for Q3 to RM13.4 billion from RM11.1 billion, a bourse filing showed. Interest income for the quarter was up 30.7 per cent to RM5.6 billion, and net interest income – after accounting for interest expenses – rose 14 per cent to RM3.5 billion.

The group’s other operating income for the quarter rose to RM1.5 billion from RM366.9 million due primarily to an unrealised mark-to-market gain of RM3.3 million on revaluation of financial investments at fair value through profit or loss (FVPTL) versus a loss of RM661.3 million in the year-ago period. 

Other contributing factors to the higher operating income figures included a net foreign exchange gain of RM445.9 million, as well as a lower unrealised mark-to-market loss on revaluation of financial assets designated upon initial recognition at FVTPL of RM394.3 million.

These were, however, partially offset by lower realised gain on derivatives of RM612.1 million and higher net loss in investment income of RM210.2 million.

Overhead expenses also rose to RM3.4 billion from RM3.1 billion due chiefly to higher personnel expenses and higher marketing expenses. 

Maybank’s loans, advances and financing segment for Singapore in Q3 was up 7.2 per cent from end-December 2021 to RM146 billion, while impaired loans, advances and financing for the city-state fell 59 per cent over the same period to RM926.1 million. 

In terms of capital adequacy ratios, Maybank Singapore as at end-September had a CET1 capital ratio – which is a measure of spare cash – of about 13.6 per cent. The subsidiary also had a Tier 1 capital ratio of 13.6 per cent, and a total capital ratio of 17.7 per cent. 

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In comparison, Maybank Singapore’s CET1 capital ratio and Tier 1 capital ratio stood at about 13.3 per cent at end-December last year, while the total capital ratio came in at 17.3 per cent.

 In its outlook statement, Maybank said global growth is expected to moderate to 2.8 per cent this year from 6.1 per cent in 2021, due to rising inflation, tightening global monetary conditions and the gradual reduction of pandemic-related fiscal support measures. 

For Singapore, Maybank said gross domestic product (GDP) is forecast to moderate to 1.5 per cent in 2023 from 3.5 per cent in 2022, given tightening monetary conditions and weakening global trade. Higher inflation, as well as the hike in goods and services tax (GST) in January next year, may affect consumer spending in 2023, the group noted. 

For this year, Maybank said it is focused on driving loans growth in key business segments across its home markets within a rising-rate-environment. 

The group said it will continue to drive fee-based income opportunities in growth areas such as wealth management, global markets, investment banking, asset management and insurance.

“In an uncertain economic environment, the group will maintain its liquidity and capital positions to support business growth and the needs of its stakeholders,” the group said. 

Maybank added that it is maintaining its headline performance indicator of a return on equity of between 9.5 per cent and 10 per cent for FY2022, factoring in the impact from the one-off Prosperity Tax announced by the federal government of Malaysia.