Maybank Q2 net profit up 45% on higher treasury and markets income

MALAYAN Banking’s (Maybank) net profit for its second quarter rose 45.4 per cent, led by higher non-interest income from stronger treasury and markets performance, the bank said on Wednesday (Aug 30).

Net profit stood at RM2.3 billion (S$670 million) for the three months ended Jun 30, 2023, compared with RM1.6 billion from the year-ago period.

This brought the lender’s first-half net profit to RM4.6 billion, up 26 per cent from the RM3.7 billion in the same period last year.

Annualised earnings per share came in at 19.40 sen for the quarter, up 44.3 per cent from 13.44 sen the year before.

The board of directors has declared a dividend of 29 sen per share for the period, up from 28 sen a year ago.

For the quarter, net interest income fell 8.6 per cent to RM3.2 billion, as net interest margin (NIM) compressed due to persisting funding competition.

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NIM fell 27 basis points to 2.14 per cent for the quarter, from 2.41 per cent in the previous corresponding period, due to higher funding costs led by interest rate hikes in the past year and deposit pressure.

Income from the lender’s Islamic Banking Scheme operations rose 4.8 per cent to RM1.9 billion.

Meanwhile, net interest income from its insurance and Takaful business rose 22.3 per cent to RM428.7 million.

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Maybank’s non-interest income more than doubled to RM2.5 billion, from RM1.1 billion a year ago. This was largely due to a rise in treasury and markets income to RM1.5 billion, from RM493 million a year ago.

The bank’s non-performing loans ratio stood at 1.15 per cent in June 2023, down from 1.41 per cent in the same period last year.

Looking ahead, group president and chief executive Khairussaleh Ramli said that the bank will 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.

Maybank chairman Zamzamzairani Mohd Isa said: “We are optimistic that better business opportunities remain, driven by policies outlined by the government to further (boost) private sector investments and enhance consumer confidence.”