Friday 29 Mar 2024
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KUALA LUMPUR (Oct 29): Malayan Banking Bhd (Maybank) announced today that net profit at its Indonesian unit, PT Bank Maybank Indonesia Tbk, fell 26.7% to 1.1 trillion rupiah (RM327.69 million) for the nine-month ended Sept 30, 2019 (9MFY19), from 1.5 trillion rupiah (RM446.85 million) in the same period a year ago.

The bank, in a statement today, attributed the fall in its profit after tax and minority interest (Patami) to an increase in loan loss provision, as it took a conservative stance in setting aside provision for a few accounts in the commercial and corporate segments, which were impacted by weaker financial performance.

“The bank increased its loan loss provision by 59.4% to 1.6 trillion rupiah as of September 2019. This provisioning was mainly due to a few accounts in the commercial and corporate segment, impacted by weaker financial performances.

“The bank continues to take a proactive stance to assist customers facing challenges and maintain risk posture to safeguard asset quality. This resulted in improved asset quality as reflected by the decline in NPL (nonperforming loan) level from 2.7% (gross) and 1.5% (net) in September 2018 to 2.6% (gross) and 1.5% (net) in September 2019,” Maybank Indonesia said.

Total loans declined by a marginal 1.1% to 129.8 trillion rupiah as at Sept 30, 2019 from 131.2 trillion rupiah a year ago.

“Global Banking booked strong loans growth of 13.7% to 35.4 trillion rupiah from 31.1 trillion rupiah, supported mainly by loans from state-owned enterprises and top tier corporate for infrastructure and investment.

“However, Community Financial Services (CFS) Non-Retail loans, which comprise Small & Medium Enterprises (SME), was 7% lower [at] Rp51.9 trillion, while CFS Retail loans declined 4% to 42.5 trillion rupiah as at September 2019. As a result, total loans declined marginally by 1.1% to 129.8 trillion rupiah as at Sept 30, 2019, from 131.2 trillion rupiah as at Sept 30, 2018,” it said.

Meanwhile, the bank’s operating profit before provisions grew 2% to 3.1 trillion rupiah during the nine-month period, mainly supported by improvement in fee-based income, sustained strategic cost management and increased net interest income.

It achieved a strong 23.2% growth in fee-based income to 1.9 trillion rupiah up to September 2019, compared with 1.5 trillion rupiah in the same period last year, attributable to Global Market related fees, tax refund, loan administration, loan recovery, bancassurance, as well as other services provided by the bank.

Net interest income rose 1.4% to 6.1 trillion rupiah from 6.0 trillion rupiah, while net interest margin declined by 27 basis points year-on-year (y-o-y) to 5% in September 2019, from 5.2% in September 2018.

Maybank Indonesia said the bank continued to preserve a strong liquidity position with customer deposits increasing 4.3% to 115.6 trillion rupiah in September 2019, from 110.8 trillion rupiah in September 2018.

The bank said its loan-to-deposit ratio was at a healthy level of 96.3%, while its liquidity coverage ratio stood at 169.7% as of September 2019, above the mandatory minimum of 100%.

Overhead costs remained under control with 8.4% growth reaching 4.9 trillion rupiah in September 2019, from 4.5 trillion rupiah in September 2018, while the bank’s capital adequacy ratio stood at 20.1% against 18.8% in the previous year.

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