KUALA LUMPUR (Nov 26): Malayan Banking Bhd (Maybank) reported an 18% rise in third quarter net profit from a year earlier, as net interest and Islamic banking income grew.
Higher net insurance premium also supported profit growth, despite significantly higher bad loan allowance, Maybank told Bursa Malaysia today.
Maybank said net profit rose to RM1.9 billion in the third quarter ended Sept 30, 2015 (3QFY15), from RM1.61 billion. Revenue was higher at RM11.38 billion versus RM8.93 billion.
9MFY15 net profit climbed to RM5.18 billion, from RM4.79 billion a year earlier. Revenue increased to RM29.5 billion, from RM26.05 billion.
During 3QFY15, Maybank said net interest income rose to RM2.9 billion, while Islamic banking income climbed to RM1.08 billion.
"This (net interest and Islamic banking income growth) was largely due to the growth in the group's gross loans, advances and financing," Maybank said.
Maybank said bad loan allowance rose to RM667.94 million, from RM70.54 million.
"The increase was mainly due to higher net CA (collective allowance) made of RM341.1 million and lower bad debts and financing recovered of RM196.4 million," the group said.
In a separate statement, Maybank's group president & CEO Datuk Abdul Farid Alias said 9MFY15 loans grew 17.8% in annualised terms.
Abdul Farid said deposits expanded 12.6%, "as momentum improved in 3QFY15".
Looking ahead, Maybank said it would continue to focus on balance sheet and liquidity management, as it expands its regional presence.
The group said its branches in Kunming, China and Myanmar would facilitate trade flows between the Association of Southeast Asian Nations (Asean) region and China.
"Barring any unforeseen circumstances, the group expects its financial performance for 2015 to be satisfactory in a more challenging regional environment.
"The group has set two headline key performance indicators of return on equity of between 12% and 13%, and group loans growth of 8% to 9%," Maybank said.
Today, Maybank shares rose one sen or 0.1% at 12:30pm to settle at RM8.42, for a market value of RM82.19 billion. The stock saw some three million shares done.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)