PETALING JAYA: Malayan Banking Bhd’s (Maybank) net profit for the second quarter ended June 30, 2019 fell marginally by 0.9% to RM1.94 billion from RM1.96 billion, due to lower effective tax rate in the previous corresponding period.
Its revenue, however, rose 13.4% to RM13.05 billion from RM11.51 billion previously.
It has declared an interim dividend of 25 sen per share amounting to RM2.81 billion. It also represents a payout of 74.9% of net profit for the period.
For the six-month period, Maybank’s net profit fell 2.1% to RM3.75 billion from RM3.83 billion in the previous year, while revenue increased 13.1% to RM26.03 billion from RM23.02 billion.
During the period, the bank’s net operating income expanded 1% to RM11.75 billion, thanks to a 1% rise in net fund based income to RM8.47 billion on the back of a 4.6% growth in group loans.
Gross loans increased 4.6%, with Indonesia, Malaysia, Singapore and other international markets rising 6.1%, 4.2%, 2.3% and 3.2%, respectively.
Nonetheless, net interest margin for the first half of the year slipped 9 basis points (bps) to 2.24% mainly as a result of the drop in base lending rates following the revision in the overnight policy rate during the period.
Asset quality-wise, Maybank’s gross impaired loans ratio improved to 2.62% from 2.64% in June 2018 while net credit charge off was better at 38 bps compared with 44 bps last year.
Its common equity tier 1 ratio was higher at 14.23% from 13.16% a year ago, while total capital ratio increased to 17.98% from 17.78% previously. The group’s liquidity coverage ratio came in at 145.4%, well above the regulatory requirement of 100%.
At 3pm, Maybank’s share price was trading 2 sen higher at RM8.55 on 2.99 million shares done.
