Malaysia

Maybank 1QFY22 net profit at RM2.04b

Maybank, Southeast Asia’s fourth largest bank by assets, has said that its net profit for the first quarter ended 31 March 2022 ( came in at RM2.04 billion compared with RM2.39 billion in 1QFY2 1 as geopolitical tensions and market volatility impacted the operating environment

Profit before tax for the quarter was lower at RM2.97 billion from RM3.17 billion a year earlier. Although the reopening of regional economies led to a pick up in loans growth and reduced impairment charges, the market weakness mitigated this positive impact

Net fund based income for the first quarter grew 5.3% to RM4. 89 billion as net interest margin (expanded 3 bps year on year Y-o-Y on lower interest expense and loans rose 5.2%. However, this was offset by a 28.3% decrease in total net fee based income to RM1.56 billion across most business segments due to market volatility. Consequently, net operating income came in 5.4% lower at RM6.45 billion from RM6.83 billion previously.

On the back of improved economic activities regionally, overheads grew 4% Y-o-Y on higher revenue related expenses. The Group’s cost to income ratio stood at 45.5%, well within the FY2022 guidance of 45% 46%. Meanwhile, the Group’s impairment losses continued to decline by 31.3% to RM597.1 million from RM868.5 million last year.

 

Maybank Chairman, Tan Sri Dato’ Sri Zamzamzairani Mohd Isa said that the start of 2022 looked promising with active resumption of economic activities and the gradual reopening of international borders. However, the escalation of geo political tensions and resultant market volatility as well as inflationary pressures has somewhat dampened this sentiment. While we are cautious in our outlook for the rest of the year given significant uncertainties, we will remain guided by the forward looking strategies set out in our M25 Plan. We intend to actively drive new business growth in this recovery period, while at the same time continue supporting our customers to ensure they are able to remain sustainable in the long term.”


Tan Sri Zamzamzairani also took the opportunity to welcome onboard Maybank’s new Group President CEO, Dato’ Khairussaleh Ramli who joined on 1 May 2022. “With his 30 years of financial services and capital markets experience and insights, we look forward to working with Dato’ Khairussaleh as he leads Maybank pillared on the M25 focus areas of digitalisation, new value drivers and sustainability.”

 

Meanwhile, Dato’ Khairussaleh said that the positive trends in the Group’s 1QFY22 financial performance were evident across key markets despite the lingering impact of global factors on the operating environment “While the outlook for the remaining part of the year remains mixed at this stage, we will focus on tapping into growth opportunities across customer segments in our key markets while maintaining our capital and liquidity strength to facilitate these growth opportunities At the same time, we will ensure our risk management capabilities remains robust, and cost management and productivity efforts continue. Additionally, we aim to accelerate solution rollouts on our digital platforms to continue to fulfil customers journeys while increasing our market penetration regionally."

 

Maybank Indonesia reported a PBT of Rp562 billion for 1QFY22, a 12.1% increase from Rp501 billion in the previous year. This was backed by lower provisions and cost of funds, well-contained overheads cost as well as strong growth in fee based income. Net interest income remained stable compared to last year at Rp1.75 trillion despite a drop in loans, as NIM increased by 45 basis points to 4.8% in the first quarter of 2022, backed by lower cost of funds on healthy CASA growth. Fee-based income increased by 4.9% to Rp475 billion from Rp453 billion last year, contributed primarily by a significant rise in global market transaction fees and fee income from subsidiaries.

Maybank Singapore registered a robust 29.5% increase in 1QFY22 PBT to SGD114.00 million on the back of lower provisions and a 21.6% increase in net fund based income to SGD173.82 million, driven by loans growth and margin improvement. Net fee based income, however, was 14.2% lower at S$82.16 million compared with a year earlier due to lower wealth management income. Loans expanded 7.2% Y-o-Y led by an 7.3% growth in CFS loans and 6.1% increase in corporate loans as the country continued to recover from the pandemic. Its CASA ratio improved to 49.3% from 39.2% a year ago on expanded current account deposits although total deposits showed a marginal 3.3% Y-o-Y decline in line with its strategy to shift from costly fixed deposits in favour of CASA acquisition.