Maybank 2QFY21 Net Profit at RM1.96b
Maybank, Southeast Asia’s fourth largest bank by assets, has reported net profit for the second quarter ended 30 June 2021 (2QFY21) at RM1.96 billion compared with RM941.7 million in 2QFY20 as loans continued to grow, net interest margin (NIM) expanded from a more cost-effective funding mix and impairments came in lower compared with a year earlier. Profit before tax (PBT) for the second quarter stood at RM2.73 billion from RM1.26 billion last year.
The Group recorded a steady growth in net operating income for the quarter which came in 9.3% higher at RM6.17 billion from a year earlier. This was on the back of a 26.4% improvement in net fund based income as a result of loans expansion and strong growth in low-cost current and savings accounts CASA) deposits, which more than offset the 27.0% decline in net fee based income which was mainly attributable to the impact from the movement restrictions in the region. Addition ally, net fund based income last year was lower as there was a significant Day 1 modification loss owing to the six month blanket moratorium effective 1 April 2020.
Compared with the preceding first quarter of FY2021, the Group’s earnings were, however, 18.0% lower than the RM2.39 billion net profit registered in 1QFY21, mainly owing to a decline in net fee based income arising from the impact of the sudden resurgence of the COVID-19 pandemic as well as higher marked-to-market losses and overhead expenses.
For the six months ended 30 June 2021 ( the Group saw net fee based income ease by 16.5% to RM3. 50 billion from RM4.1 9 billion in 1HFY20 owing primarily to lower investment disposal gains and
marked to market losses. This was, however, offset by the increase in net fund based income which came in 16.1% higher at RM9.50 billion as loans grew and NIM s expanded as a result of strong CASA
growth. Consequently, net operating income for 1HFY21 came in at RM1 3 billion, rising 5.1% from RM12.37 billion previou sly while pre provisioning operating profit rose 7.9% to RM7.26 billion.
Maybank Chairman, Tan Sri Dato’ Sri Zamzamzairani Mohd Isa said that notwithstanding the good start in the early part of the year, the Group remained cautious about the overall regional growth momentum given the sudden resurgence in COVID-19 cases in the last few months. “The emergence of new virus variants has been a cause for concern, causing protracted lockdowns in many regional markets which will have some impact on our growth prospects in the coming quarters. Nonetheless, Maybank remains committed to assisting those affected through our financial solutions as well as community support so that we can all navigate safely through this pandemic,” he said. “At the same time, we will continue to implement our forward looking strategies as set out in our M25 Plan which we believe will enable us to navigate through the uncertainties, secure new growth opportunities and create value for all our stakeholders.”
Meanwhile, Group President & CEO, Datuk Abdul Farid Alias said given the expectation for a more challenging second half, the Group will continue its strategy of focusing on robust risk management, strengthening its capital and growing its CASA deposit base to provide sufficient buffers for unexpected events. “Our strong liquidity and capital positions have given us the ability to support our customers through this prolonged pandemic while at the same time, enabled us to pursue growth opportunities across the region and undertake the necessary investments to prepare ourselves for the future,” he said. “Moving forward, we will continue to strengthen our digital capabilities and pursuit of innovation, as well as accelerate our sustainability commitments which we believe will provide us the competitive edge in pursuing our growth agenda.”
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