KUALA LUMPUR: PT Bank Maybank Indonesia Tbk (Maybank Indonesia) has reported profit after tax and minority Interest (PATAMI) of Rp932.7 billion (USD65.1 million) for the six months ended 30 June 2018 compared with Rp998.5 billion in the previous corresponding period.
The slight reduction in PATAMI was due primarily to lower fee based income and a slight compression in net interest margin. Business was impacted by subdued economic conditions in the first semester of 2018, according to a statement.
The solid growth of Syariah business, better asset quality and significant improvement in subsidiaries were the highlights of the bank’s first six months performance.
The bank also managed its overhead costs effectively which saw a 3.2 per cent reduction from Rp3.1 trillion to Rp 3.0 trillion for the first half of 2018 as a result of sustained strategic cost management across business lines and supports units.
Syariah banking continued to record strong performance in the first six months of 2018 with total assets increasing by 31.4 per cent to Rp29.2 trillion, making up 17 per cent of the bank’s total assets.
Total Syariah financing rose 42.2 per cent from Rp16.2 trillion as of June 2017 to Rp23.0 trillion as of June 2018, while its total deposits grew 38.8 per cent from Rp13.5 trillion to Rp18.8 trillion. Non Performing Financing (NPF) improved significantly to 2.9 per cent as of June 2018 compared with 3.9 per cent in the previous year.
The bank recorded a loans growth of 6.0 per cent to Rp127.1 trillion as at 30 June 2018 from Rp119.9 trillion in the previous year.
Net Interest Income (NII) registered a 2.5 per cent growth to Rp3.9 trillion in June 2018 compared with Rp3.8 trillion in the previous corresponding period.
Capital Adequacy Ratio (CAR) improved to 18.8 per cent as of 30 June 2018 from 16.9 per cent in the previous corresponding period with total capital reaching Rp24.7 trillion.
President director Maybank Indonesia Taswin Zakaria said the bank’s focus remains to continue growing assets selectively while maintaining the discipline in loan pricing to ensure sound asset quality going forward.
President commissioner of Maybank Indonesia and group president and chief executive officer of Malayan Banking Bhd Datuk Abdul Farid Alias, meanwhile, said the semester of 2018 has been equally challenging as in 2017 arising from the subdued market conditions.
“We intend to maintain a prudent approach in pursuing growth by focusing on quality, as well as effective management of costs and liquidity. Our digital transformation agenda across the Group will equip the bank to grow our customer base in a cost effective manner and prepare our employees to adapt to the changes that the digital world brings so that we can continue to create value for all our stakeholders in the coming years,” he added.