Maybank 1Q FY23 Net Profit Up 10.7% to RM2.27b

May 26, 2023 Hubbis

Maybank, Southeast Asia’s fourth largest bank by assets, reported a 10.7% increase in Net Profit of RM2.27 billion for the financial period ended 31 March 2023 (1Q FY23).

Profit before tax (PBT) meanwhile, rose to RM3.06 billion from RM2.98 billion a year earlier. The stable results were driven by continued improvement in asset quality as well as treasury and market gains that supported the Group’s net operating income.

Notwithstanding the challenging global economic environment, net operating income for the quarter grew to RM6.32 billion, on the back of a 12.4% Y-o-Y increase in non-interest income (NOII) to RM1.53 billion aided by gains on derivatives and foreign exchange as well as investment and trading gains. This was however negated by a lower net fund based income of 2.0% as net interest margin (NIM) declined 15bps Y-o-Y as a result of intense deposit competition.

Group President and CEO of Maybank, Dato’ Khairussaleh Ramli said that the first quarter result demonstrates Maybank’s underlying strength and resilience despite the challenging market conditions amidst high inflationary pressure and the softening global growth. The Group will continue to stay the course and remain steadfast to weather the uncertain headwinds, backed by sound capital and liquidity positions, and its diversified footprint and income streams for sustainable growth in the future.

“Execution of our M25+ strategy is well underway, anchored on the five key strategic thrusts of intensifying customer centricity, accelerating digitalisation and technological modernisation, strengthening Maybank’s business presence across the region, driving our leadership position in the sustainability agenda as well as claiming our global leadership in Islamic Banking. This is in line with our purpose of Humanising Financial Services as we deliver a differentiated customer experience and serve the community as a force for good in ASEAN.”

Maybank further improved its digital offerings and Agile way of delivering products and services by introducing several innovative online banking apps, the reorganisation of its RSME, SME+ and Business Banking segment as well as a new branch operating model in Malaysia to offer better service quality, speed and customer experience.

Maybank continued to maintain robust capital and liquidity positions, with its CET1 capital ratio at 15.09%, and total capital ratio at 18.48% as at 31 March 2023, making it one of the best capitalised banks in the region. The Group’s liquidity coverage ratio stood at a healthy 145.8%, way above the regulatory requirement of 100%.

Maybank Singapore’s 1Q FY23 PBT more than doubled Y-o-Y to S$231.22 million from S$114 million due to write back of loan loss allowances compared to the provision for loan loss allowances in 1Q FY22 and the preceding quarter as well as from net fund based income which rose 17.6% Y-o-Y driven by growth in total asset volume and improved net interest margin. NOII meanwhile declined 15.0% Y-o-Y due to the slowdown in treasury income and wealth management income.

Maybank 1Q FY23 Net Profit Up 10.7% to RM2.27b

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