KUALA LUMPUR (Aug 30): Malayan Banking Bhd (Maybank), the country’s largest lender by assets, reported a 43% increase in net profit to RM1.66 billion in the second quarter ended June 30, 2017 (2QFY17) from RM 1.16 billion a year ago, on higher net interest income and Islamic banking income which rose 11.6% year-on-year (y-o-y) during the quarter under review.

The group also saw a drop in impairment losses on loans, advances, financing and other debts and financial investments in 2QFY17.

Earnings per share grew to 16.06 sen in 2QFY17 from 11.79 sen in 2QFY16.

Total income growth for 2QFY17, however, came in flat at RM10.92 billion compared with RM10.94 billion a year ago.

The group also declared an interim dividend of 23 sen for the financial year ending Dec 31, 2017, in which an electable portion of 18 sen per share can be elected to be reinvested in new shares under its dividend reinvestment plan and the remaining portion of 5 sen per share will be paid in cash.

For the cumulative six months (1HFY17) Maybank reported a 29.9% increase in net profit to RM3.36 billion from RM2.59 billion a year ago, due to  a 10.9% y-o-y increase in net interest income and Islamic banking income and lower impairments.

Total income growth for 1HFY17 was flat at RM22.2 billion from RM22.12 billion in 1HFY16.

Barring any unforeseen circumstances, Maybank said it expects its financial performance for 2017 to be satisfactory given the ongoing challenging global environment.

The group key performance indicator for return on equity is 10% to 11%, while loan growth is expected to be in line with the industry.

Maybank shares were up 3 sen or 0.32% to RM9.49 at noon market close today, with 3.04 million shares traded, bringing a market capitalisation of RM99.87 billion.