Maybank Q3 profit up 3.3% at RM2.62 billion

[SINGAPORE] Maybank’s net profit for the third quarter ended Sep 30 rose 3.3 per cent to RM2.6 billion (S$828 million), from RM2.5 billion in the same period a year earlier, the company said on Friday (Nov 21).

Net fund-based income rose 2.5 per cent to RM5 billion, as loans grew 2.7 per cent on year to RM681.7 billion.

Malaysia loans were up 6 per cent and Singapore loans rose 1.5 per cent; Indonesia loans slid 0.5 per cent as the lender continued to rebalance its corporate lending portfolio.

Deposits rose 4.7 per cent on year to RM739.1 billion as at Sep 30, due primarily to continued growth in current and savings account balances.

Net interest income rose 5.1 per cent on year to RM3.3 billion.

Net interest margin fell by one basis point on year to 2 per cent, although this was up two basis points from the preceding quarter amid proactive liquidity and funding costs management.

Meanwhile, non-interest income rose 4.8 per cent to RM2.5 billion, amid higher wealth fees and insurance income.

The bank’s non-performing loans ratio at Q3 was 0.90 per cent, down from 0.99 per cent in the previous corresponding period.

For the nine-month period ended Sep 30, net profit rose 3.7 per cent to RM7.8 billion, amid steady net fund-based income performance, higher non-interest income and prudent risk discipline in its regional network, the lender said.

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Profit before tax in the bank’s Islamic banking business rose 9.3 per cent to RM3.3 billion in the nine-month period.

Maybank Islamic’s total gross financing for Malaysia grew 9.1 per cent to RM313.2 billion, due to steady growth in its community financial services business and global banking business. Islamic financing accounted for 71.9 per cent of Maybank Malaysia’s total loans and financing as at Sep 30.

Assets under management for group Islamic wealth management went up 21 per cent to RM102.1 billion.

Meanwhile, Etiqa Insurance and Takaful’s profit before tax fell 6.9 per cent to RM941.2 million, mainly due to softer equity market conditions and unfavourable impact from yield-curve movements.

Nevertheless, underwriting income rose 23.7 per cent to RM840.6 million, driven by the Family Takaful portfolio.

Profit before tax for the bank’s business in Singapore rose 6.3 per cent to S$557.1 million, as the increase in net fund-based income mitigated weaker non-interest income, higher overheads and lower write-back in impairment allowances.

Net fund-based income rose 18.2 per cent to S$582.4 million, on reduced funding costs as a result of proactive liquidity management; non-interest income fell 2.1 per cent to S$448.7 million due to lower treasury income.

Commenting on the results, president and group chief executive Khairussaleh Ramli said Maybank delivered a steady performance for the quarter, despite continued volatility and challenges in the global scene.