KUALA LUMPUR (May 28): Malayan Banking Bhd's (Maybank) net profit for the first quarter ended March 31, 2018 (1QFY18) rose 10% to RM1.87 billion, from RM1.70 billion a year earlier, on higher net interest income and Islamic Banking income.
Quarterly revenue also increased 2.1% to RM11.52 billion in 1QFY18 from RM11.28 billion in 1QFY17. Earnings per share was up at 17.26 sen, versus 16.73 sen previously.
On its prospects, Maybank said the country's real gross domestic product (GDP) growth in 2018 will be driven by improved consumer spending growth and stronger net external demand, following Malaysia's 14th General Election.
It said several policy changes announced by the new government, including the zero-rating of the Goods and Services Tax effective June 1 and the maintaining of current domestic fuel prices, are expected to help improve consumer spending.
Exports and imports of goods and services will expand further in 2018, on the back of the sustained global and domestic growth momentum, but the pace of growth is expected to moderate after the high base in 2017, the bank said.
“Maybank Malaysia's loan growth is expected to be in-line with industry growth, as the bank focuses on pockets of opportunities within the consumer, retail SME and corporate lending segments,” added Maybank in a filing with Bursa Malaysia today.
At Maybank Group, key priorities for 2018 include maintaining pricing discipline across its products, focusing on attaining cheaper funding sources to support loan growth and growing its loan portfolio within its risk appetite, while proactively managing asset quality, the filing added.
“The group has also implemented MFRS 9 on Jan 1, 2018 and will continue to keep its capital and liquidity positions strong.
“The impairment assessment under MFRS 9 is based on the expected credit loss model, which uses forward-looking assumptions, as opposed to the previous accounting standard MFRS 139, in which the impairment assessment is based on an incurred loss model.
“As such, the allowances for impaired loans and financing in FY2018 are expected to be higher than the previous year,” Maybank said.
At midday break, Maybank shares were down 0.58% or 6 sen to RM10.20, with 3.97 million shares done.