KUALA LUMPUR (April 28): Malayan Banking Bhd’s (Maybank) 98.54%-owned PT Bank Maybank Indonesia Tbk posted a 45.7% rise in net profit for the first quarter ended March 31, 2023 (1QFY2023) to 566 billion rupiah from 388 billion rupiah a year earlier.
“This was derived from improved earnings on its assets composition due to increase in loans, as demands for corporate and retail loans increased in line with the improvement in the economy in Indonesia,” Maybank Indonesia said in a statement.
The bank also booked higher fee income primarily from the Global Markets (GM) transactions as markets regained their momentum, and subsidiaries’ strong performance as well as improved asset quality.
Maybank Indonesia’s net interest income rose 6.7% year-on-year (y-o-y), while net interest margin expanded by 35 basis points y-o-y to 5.1%.
Its total outstanding loans rose 7.7% to 107.22 trillion rupiah during the quarter from 99.52 trillion rupiah. Its current account savings account (CASA) ratio jumped 51.9% from 41.7% previously.
However, total deposits dipped 2.2% to 103.61 trillion from 105.98 trillion as the bank continued to implement its strategy to optimise low-cost funding by leveraging digital services to acquire customer deposits.
“The bank’s consolidated non-performing loan ratio improved to 3.4% (gross) and 2.3% (net) in March 2023 from 3.9% (gross) and 2.8% (net) in March 2022,” Maybank Indonesia said.
Its capital adequacy ratio remained strong at 29.1% at end March, with total capital of 28.85 trillion rupiah.
Notwithstanding global economic challenges, Maybank Indonesia president director Taswin Zakaria said the bank saw consumer purchasing power and business activities slowly return to normal in Indonesia as indicated by the bank’s strong growth in the retail, small-medium enterprise and the wholesale loan segments.
“From a liquidity perspective, customer deposits continued to rebalance, allowing Maybank Indonesia to manage its funding and strengthen our fundamentals. Moving forward, we will continue with our M25+ strategies covering the bank’s transformation efforts to accelerate digital SME’s capabilities and our Islamic wealth proposition,” he added.
On Bursa Malaysia, Maybank’s share price finished four sen or 0.46% lower at RM8.66, valuing the banking group at RM104.39 billion.
