Maybank Q3 earnings up 18% to RM1.89b

PETALING JAYA: Malayan Banking Bhd posted a stronger set of earnings of RM1.89 billion in the third quarter ended Sept 30, 2015, an increase of 18.1% from RM1.60 billion a year ago, on higher net interest income and Islamic banking income.
The banking group said yesterday revenue for the quarter jumped 27.4% to RM11.38 billion from RM8.93 billion.
The group's net interest income and Islamic banking income increased by RM671.8 million or 20.3% compared with the previous period corresponding quarter.
"This was largely due to the growth in the group's gross loans, advances and financing," Maybank said.
Maybank said bad loan allowance rose to RM667.94 million from RM70.54 million. "The increase was mainly due to higher net CA (collective allowance) made of RM341.1 million and lower bad debts and financing recovered of RM196.4 million," it said.
Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said that in spite of the challenges in the operating environment, which was exacerbated by lower commodity prices and heightened forex volatility in the third quarter, the group remained resilient due 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.
For the nine months period, Maybank's net profit climbed to RM5.18 billion, up 8.3%, from RM4.79 billion a year earlier, while revenue increased to RM29.5 billion, up 13.2% from RM26.05 billion previously.
"The results were lifted by higher net operating income coupled with rigorous cost management and lower net interest margin compression of 3 basis points during the nine-month period. In addition, the group benefited from a one-off gain from the sale of its Papua New Guinea operations which was completed in September 2015," it said.
Maybank said loan growth continued to be sustained, expanding at an annualised rate of 17.8% for the nine months.
"This was boosted by a 34.5% increase from international operations while Malaysian operations recorded a growth of 6.4%, attributed to a 36.4% increase in the SME segment, 8.1% in the consumer sector and 2.4% in global banking.
"After accounting for the depreciation of the ringgit against currencies of Maybank's key markets (Singapore, Indonesia, the Philippines and Greater China) annualised loans growth for the nine months was 8.7%," it said.
Maybank group president and CEO Datuk Abdul Farid Alias said efforts will continue to be made to sustain the group's performance through effective management of balance sheet and liquidity, selective asset growth, and proactive management of asset quality.
Barring any unforeseen circumstances, the group expects its financial performance for 2015 to be satisfactory.
Maybank has set two headline key performance indicators: return on equity of between 12% and 13%, and group loan growth of 8% to 9%.
Maybank shares rose 7 sen or 0.83% yesterday to RM8.48 with 8.75 million units done.