KUALA LUMPUR: Maybank’s Indonesian banking unit PT Bank Internasional Indonesia Tbk (BII) has reported a 6.7 per cent increase in operating profit for the nine-month period ended September 30 2014, to 2.05 trillion rupiah (RM556.2 million) from 1.92 trillion rupiah in the same period last year.
Net profit after tax and minority interest (Patami) for the first nine months stood at 340 billion rupiah while profit before tax was 478 billion rupiah, compared with 1,098 billion rupiah and 1,562 billion rupiah, respectively, in the corresponding period last year, Maybank BII said in a statement.
This was primarily due to higher provisions recorded from corporate customers due to challenging market conditions and continued compression in net interest margin.
Maybank BII saw loans growth of 14 per cent year-on-year to 104.6 trillion rupiah as at September 30 2014, from 91.7 trillion rupiah in the corresponding period last year.
The bank has decided to re-profile its loan portfolio, especially in the global banking segment, to ensure that the distribution of risks is in line with its risk appetite.
Its focus on client re-segmentation, implemented early this year, includes greater emphasis on the top-tier local corporations and state-owned enterprises.
The global banking client re-segmentation shows encouraging results and is expected to be the driver for the bank’s cash management and annuity fee business.
BII president commissioner and Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said: “Given the current operating environment, BII will remain cautious while continuously seeking opportunities for sustained growth.
“As part of Maybank Group, BII has the advantage of harnessing group synergies across the region,” he added. Bernama