business

Maybank Indonesia's profit up by 16.3pct

KUALA LUMPUR: PT Bank Maybank Indonesia Tbk today announced that its profit after tax and minority interests (PATAMI) increased 16.3 per cent to 998.5 billion rupiah for the first semester ended June 30, 2017 from 858.4 billion on the back of overall improvement in its core banking business.

In a statement yesterday, the bank said its net interest income (NII) rose seven per cent to 3.8 trillion rupiah in the first semester 2017 from 3.6 trillion rupiah in first semester of 2016.

It said the increase in NII was mainly a result of the bank’s discipline in loan pricing and active funding management.

The bank also reported an increase in its net interest margin to 5.3 per cent in June 2017 compared with five per cent in June 2016.

It said the bank’s fee based income increased by 9.1 per cent from 1.3 trillion rupiah in June 2016 to 1.5 trillion rupiah in June 2017.

“The increase in fee based income was achieved from bancassurance, loan recovery, remittances, and other services provided by the bank,” it said.

Maybank Indonesia said global banking loans saw strong loans growth of 18.9 per cent to 27.3 trillion rupiah in June 2017 as a number of key deals were successfully realised, benefiting from the re-aligning and re-profiling of its portfolio.

The bank said it has maintained its asset quality with consolidated non-performing loan level remaining at gross 3.6 per cent and net 2.4 per cent as of June 2017 compared with the previous corresponding period.

The bank was also able to reduce provision expenses by 15.7 per cent to 835.8 billion rupiah in June 2017 from 991.1 billion rupiah in June 2016.

The bank’s loan-to-deposit-ratio stood at a healthy 86.7 per cent, while the loan-to-funding ratio was at 85.9 per cent.

It said total customer deposits grew by five per cent from 114.1 trillion rupiah in the first semester 2016 to 119.8 trillion rupiah in the first semester 2017 with the current account savings account ratio reaching 37.4 per cent.

“The bank’s continuous focus on transactional banking and electronic channels which includes its internet based mobile banking facility Maybank M2U also contributed greatly to the improved liquidity position,” it said.

Maybank Indonesia said for the half year under review, the bank’s capital position continued to improve with capital adequacy ratio increasing to 16.9 per cent as of June 30, 2017 from 15.9 per cent as of June 30, 2016 and total capital reaching 22 trillion rupiah.

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