KUALA LUMPUR: Malayan Banking Bhd (Maybank), Malaysia’s top financial institution, has reported an 18.1 per cent increase in net profit to RM1.89 billion for the third quarter ended September, compared with RM1.6 billion in the same quarter last year.
The banking giant’s revenue also grew 27.4 per cent to RM11.38 billion compared with RM8.93 billion in the corresponding quarter last year.
The strong growth numbers were largely buoyed by net fund-based income, loans growth and net fee-based income, as well as Islamic banking business.
“Given the expected headwinds that will remain in the coming year, we will redouble our efforts to raise operational and capital efficiencies, as well as leverage growth opportunities throughout this region,” said Maybank group president and chief executive officer Datuk Abdul Farid Alias in a statement.
He said efforts to continue to sustain the group’s performance would be made through effective management of balance sheet and liquidity, selective asset growth and proactive management of asset quality.
Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said in spite of the challenges in the operating environment — exacerbated by lower commodity prices and heightened foreign exchange volatility in the third quarter — the group had remained resilient, thanks to its diversified franchise.
“Our capital position remains strong, which places us among the top of our peer banks. Our discipline and focus on the Asean region are key drivers that help us pursue opportunities in the current environment and convert them to business value that has led us to our strong growth,” he said.
The third-quarter results were also lifted by higher net operating income coupled with rigorous cost management and lower net interest margin compression of three basis points during the nine-month period. The group also benefited from a one-off gain from the sale of its Papua New Guinea operations.
Maybank, Southeast Asia’s fourth largest bank by assets, saw strong growth in income during the nine-month period, with net fund-based income 13.6 per cent higher at RM10.77 billion on the back of strong loans growth, and net fee-based income rising 22.1 per cent to RM4.85 billion. This resulted in a 16.1 per cent overall rise in net operating income to RM15.62 billion.
For the third quarter, net operating income surged 26.7 per cent from a year ago to RM5.75 billion, aided by an 18.4 per cent rise in net fund-based income to RM3.81 billion, and a 46.8 per cent increase in net fee-based income to RM1.93 billion.
Loans growth continued to be
sustained, expanding at an annualised rate of 17.8 per cent for the nine months.
After accounting for ringgit depreciation against currencies of Maybank’s key markets (Singapore, Indonesia, the Philippines and China), annualised loans growth for the nine months was 8.7 per cent.
The bank said deposits grew at an annualised 12.6 per cent for the nine months.
Ranked among the World’s Top 20 Strongest Banks by Bloomberg Markets in 2013 and last year, Maybank’s international operations registered a 6.3 per cent increase in net operating income to RM4.47 billion for the nine months, aided by a 25.8 per cent rise in net fund-based income to RM3.86 billion which more than offset a 46 per cent decline in net fee-based income to RM618 million.
International loans rose 34.5 per cent on an annualised basis to RM204.4 billion while deposits expanded 26.7 per cent to RM195.5 billion.