Maybank Q4 earnings inch up 5.4% to RM2.2b on higher interest income
Uma Devi
MALAYAN Banking (Maybank) posted a net profit of about RM2.2 billion (S$663.1 million) for the fourth fiscal quarter ended December last year, up 5.4 per cent from the corresponding period in the fiscal year 2021.
This took the bank’s full-year profit to RM8.2 billion, about 1.7 per cent higher than earnings of about RM8.1 million in FY2021.
The board of directors has declared a second interim cash dividend of RM0.30 per ordinary share. The book closure date will be announced by the company at a later date.
Interest income for Q4 was up 52.4 per cent to RM6.5 billion. Maybank, however, saw interest expense more than double to RM3 billion, which ate into its margins.
Net interest income consequently stood at RM3.5 billion, up by a more muted 14.8 per cent.
The group’s net interest income and income from its Islamic Banking Scheme operations rose 9.5 per cent to RM5.5 billion.
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Net earned insurance premiums from the Insurance and Takaful subsidiaries fell 3.4 per cent to RM2.1 billion.
Other operating income for the quarter rose to RM1.8 billion from RM1 billion due chiefly to higher unrealised mark-to-market gain of RM515 million on revaluation of financial investments at fair value through profit or loss (FVTPL), unrealised mark-to-market gain on revaluation of financial assets designated upon initial recognition at FVTPL of RM347.5 million, as well as financial liabilities at FVTPL of RM96.5 million for the quarter.
Maybank’s overhead expenses for the quarter rose 15.3 per cent to RM3.4 billion due to higher personal expenses, marketing expenses and establishment costs. These were, however, partially offset by lower administration and general expenses.
Allowances for impairment losses on loans, advances, financing and other debts for Q4 nearly doubled to RM308.8 million.
Looking ahead, Maybank said it will continue to focus on growth opportunities across its consumer and business segments within its Asean franchise.
The bank said it will also maintain its liquidity position to support asset growth through its current and savings accounts franchise.
“Asset quality management will remain a priority of the group in 2023,” the company said, adding that to date, the expiry of repayment assistance programmes have not led to any “material effect” on its net asset quality.
“Maybank will continue to monitor the loan portfolio and remains committed to offering targeted support to customers if needed,” the bank said.
Barring any unforeseen circumstances, Maybank said it targets to achieve a return on equity of between 10.5 per cent and 11 per cent for FY2023.
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