KUALA LUMPUR: Malayan Banking Bhd's net profit rose 12.3 per cent to RM2.36 billion in the third quarter (Q3) ended September 30, 2023 from RM2.10 billion in the same period last year.
The group's revenue also rose 22.9 per cent to RM16.01 billion in Q3 2023 from RM13.02 billion last year.
For the quarter, the group's net operating income decreased by 5.2 per cent to RM6.75 billion, attributed to a decrease in net fund based income of RM4.81 billion compared with RM5.29 billion a year earlier as net interest margin (NIM) compressed due to persisting funding competition.
Non-interest income (NOII) however was up 6.1 per cent at RM1.94 billion while net impairment provisions improved with a 59.3 per cent decrease to RM342.2 million.
For the nine months' period (9M23) ended September 30, 2023, Maybank's net profit rose 21.0 per cent to RM6.96 billion from RM5.80 billion last year, while its revenue rose 37.6 per cent to RM47.33 billion from RM34.40 billion previously.
The better results were attributed to steady income growth and significant improvement in net impairment provisions.
Net operating income for the nine months increased by 3.6 per cent to RM20.38 billion driven by higher NOII of 37.8 per cent to RM5.95 billion compared with a year earlier.
Net fund based income meanwhile, was lower by 6.0 per cent as net interest margin (NIM) compressed 25 basis point (bps) due to higher funding costs led by interest rate hikes in the past year and continued deposit competition.
Total group gross loans grew strongly by 5.1 per cent year on year (YoY) as at September 30, 2023, lifted by increases of 3.7 per cent and 3.0 per cent in its home markets of Malaysia and Singapore respectively, while other markets contributed a rise of 5.5 per cent.
The group's gross deposits, meanwhile expanded 3.5 per cent as fixed deposits grew 20.3 per cent offsetting a decline of 8.8 per cent in other deposits and 8.9 per cent in current account and savings account (CASA).
Maybank maintained robust capital and liquidity positions as at September 30, 2023, with its CET1 capital ratio at 15.41 per cent, and total capital ratio at 18.77 per cent.
The group's liquidity coverage ratio remained stable at 137.4 per cent, well above the regulatory requirement of 100 per cent.
Group president and cheif executive officer Datuk Khairussaleh Ramli said that global challenges remain but Maybank will continue to pursue opportunities for growth guided by its corporate strategy across all its customer and business segments within its Asean operations.
Khairussaleh said the group will also be maintaining its strong liquidity position, improving asset quality, and preserving sound capital levels.
"We will continue to bring about a positive impact to the communities it serves in line with its purpose of Humanising Financial Services," he said.