Maybank Q1 earnings up 6% to RM1.7b

PETALING JAYA: Malayan Banking Bhd's (Maybank) net profit for the first quarter ended March 31, 2015 rose 6.2% to RM1.7 billion from RM1.6 billion a year ago, driven by higher fee income coupled with robust loans growth boosting performance across all its business pillars.
Revenue increased by 10% to RM9.18 billion compared with RM8.36 billion in the previous corresponding quarter.
"We are encouraged by our first quarter performance which validatesthe strategies that we have put in place. The growth we achieved was a result of rigorous efforts to increase fee income as well as build our financing portfolios responsibly. These were complemented by improved liquidity, proactive capital management and tightly managed expenses," group president and CEO Datuk Abdul Farid Alias said in a statement yesterday.
He expects the rest of 2015 to remain challenging and said the bank is closely monitoring regional developments, particularly the level of business activity post implementation of Goods & Services Tax (GST) in Malaysia.
"We, however, remain optimistic that our Asean home ground will continue to present us with sustained business opportunities especially with greater realisation of the benefits that will come from the impending formalisation of AEC," Abdul Farid added.
In Q1'15, Maybank's net operating income increased 12.5% to RM4.99 billion from RM4.44 billion a year ago led by global banking (11.8%), community financial services (10%) and international banking (6.6%).
"This was on the back of a 19.9% rise in net fee based income as well as a 9.3% rise in net fund based income.
"The rise in fee income was driven by increases in commissions, service charges and fees as well as higher net earned insurance premiums while net fund based income was lifted by higher conventional and Islamic loans growth," it said.
Loans in Q1'15 expanded 14.3% on-year, led by the international business which grew 19.4%.
"In the three home markets of Malaysia, Singapore and Indonesia, loans rose 10.2%, 11.6% and 7.1% on-year respectively. Islamic financing, meanwhile, surged 29.5% on-year," it said.
Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said that this year, the group's focus remains to find opportunities within its diverse operations to heighten productivity.
"Given the continued global market uncertainties, we have made an encouraging start to the year, and our recent announcement that we are exiting Papua New Guinea demonstrates one example of our resolve to create value," he said.
In its announcement to Bursa Malaysia yestreday, Maybank said the group will intensify focus on fee income business activities in its key markets that includes capturing regional deal and trade finance opportunities, building its wealth management business and expanding its insurance business.
Maybank Kim Eng, global markets, transaction banking, private wealth, insurance & takaful and asset management are among the businesses that make up the group's fee income platform.
Barring any unforeseen circumstances, the group expects its financial performance for the financial year ending Dec 31, 2015 to be satisfactory.
The group has set two headline key performance indicators of return on equity of between 13% to 14% and group loans growth of between 9% to 10%.