KUALA LUMPUR (Nov 28): Malayan Banking Bhd's (Maybank) net profit for the third quarter ended Sept 30, 2019 rose 2.1% to RM2 billion from RM1.96 billion a year earlier, on the back of higher net interest income and Islamic banking income.

In a Bursa Malaysia filing today, Maybank said revenue for the quarter rose to RM13.83 billion from RM12.06 billion previously.

Earnings per share for the quarter was 17.78 sen versus 17.91 sen earlier.

For the nine months ended Sept 30, Maybank said its net profit slipped 0.5% to RM5.75 billion from RM5.77 billion in the year-ago period, while revenue rose to RM39.86 billion from RM35.09 billion a year earlier.

Earnings per share for the cumulative period slipped to 51.63 sen from 53.12 sen.

Reviewing its performance, Maybank said its allowances for impairment losses on loans, advances, financing and other debts increased by 29.4% to RM1.95 billion for the nine-month period.

Meanwhile, overhead expenses rose 5.5% to RM8.59 billion.

On its prospects, Maybank said against the backdrop of a moderating global growth and uncertainty over trade tensions, it will maintain its balance sheet expansion in line with the respective GDP growth in its three home markets and in tandem with the group's risk posture.

Maybank said it will continue building on its diversified franchise and footprint to expand income streams through cross business collaborations and from focusing on diligent pricing of its assets and liabilities.

"Other key ongoing priorities for Maybank Group in 2019 include our emphasis to improve productivity drivers, upskilling of our workforce to be ready for a digital economy, proactively manage asset quality and prioritising capital and liquidity strength given increasing capital markets volatility and global macroeconomic headwinds," it said.

On its outlook, Maybank said it expects its financial performance for 2019 to be satisfactory, in line with the expected growth prospects of key home markets.

Maybank has set its headline key performance indicator for return on equity of 10.0% to 10.5%.

At the midday break, Maybank shares shed 0.93% or 8 sen to RM8.50, for a market capitalisation of RM95.55 billion.