KUALA LUMPUR: Malayan Banking Bhd (Maybank) reported a 7.92% fall in net profit to RM1.61 billion for the third quarter ended Dec 31, 2014 (3QFY14) from RM1.75 billion a year ago, on lower operating profit before impairment losses.

Revenue for 3QFY14 was 7.95% higher at RM8.93 billion, from RM8.28 billion in 3QFY13.

Meanwhile, net profit for the nine months ended Sept 30 (9MFY14) was marginally 0.73% lower at RM4.79 billion from RM4.82 billion a year ago, even though revenue was at RM26.05 billion, 4.28% higher than RM24.98 billion in 9MFY13.

Maybank said the group’s net interest income and Islamic Banking income for 9MFY14 increased by RM505.4 million or 5.5% to RM9.73 billion compared to 9MFY13, largely due to growth in net loans, advances and financing, which mainly came from its Islamic banking operations.

The group’s non-interest income for 9MFY14 declined RM561.5 million or 12.3% to RM3.99 billion, mainly due to a lower foreign exchange gain of RM1.21 billion, a lower gain on disposal of financial investments available-for-sale of RM310 million, and a lower gain on disposal of financial assets at fair value through profit or loss of RM91.5 million.

Meanwhile, the group expressed confidence that its common equity tier 1 (CET1) capital ratio will be well ahead of the minimum level of 7% (inclusive of capital conservation buffer) as required by 2019.

“The deepening of Maybank’s business portfolio in the region is another near-term priority for the group in 2014.

“It includes improving client interface within the global banking business, providing cross-border banking solutions via the Maybank Islamic business and expansion of insurance and takaful services in other markets,” it said.

This article first appeared in The Edge Financial Daily, on November 27, 2014.