KUALA LUMPUR (Feb 23): Malayan Banking Bhd (Maybank) saw its net profit for the fourth financial quarter ended Dec 31, 2016 (4QFY16) surge 42.9% to RM2.36 billion or 23.19 sen per share, from RM1.65 billion or 17.08 sen per share in 4QFY15.

In a filing to Bursa Malaysia today, Maybank said the improvement in profitability was due to the decrease in its net insurance benefits and claims incurred, net fee and commission expenses, change in expense liabilities and taxation of life and takaful fund, which saw a decrease of 44.6% to RM595.31 million in 4QFY16 from RM1.08 billion a year ago.

The decrease was mainly attributable to lower net insurance benefits and claims incurred by the insurance and takaful subsidiaries of RM370.1 million and lower net fee and commission expenses, change in expense liabilities and taxation of life and takaful fund of RM108.5 million.

Maybank 4QFY16 net interest income and Islamic banking income increased by 6.1% to RM4.12 billion, compared to RM3.89 billion a year ago.

The banking group declared a dividend of 32 sen per share, comprising a cash portion of 10 sen and electable portion of 22 sen per share.

For the full year ended Dec 31, 2016 (FY16), Maybank reported a marginal 1.4% drop in net profit to RM6.74 billion or 67.84 sen per share, from RM6.84 billion or 72.03 sen per share a year ago.

The group's net interest income and Islamic banking income increased by 4.7% to RM15.76 billion, from RM15.05 billion a year ago.

Maybank shares closed down 4 sen (0.5%) to RM8.38 at noon market close today and for a market capitalisation of RM85.42 billion.