KUALA LUMPUR: Malayan Banking Bhd (Maybank) registered a strong growth for the first half of the year with its net profit increasing by 26 per cent year-on-year (YoY) to RM4.60 billion from the previous.
The bank's net profit rose almost two-fold for the second quarter that ended June 30 (2QFY23), 2023 of RM2.34 billion from RM1.61 billion a year ago.
Group revenue for the quarter grew 58.09 per cent of RM16.13 billion from RM10.21 billion.
Maybank posted earnings per share of RM19.40 against RM13.44 from the previous year.
Its revenue for the first six months grew 46.62 per cent to RM31.32 billion from RM21.36 billion a year ago.
In a statement issued today, Maybank said its net operating income for the six months rose by 8.6 per cent YoY to RM13.63 billion which was driven by 61 per cent boost in non-interest income to RM4.01 billion.
"This, however, was offset by a lower net fund based income, which declined 4.4 per cent Y-o-Y to RM9.62 billion, as NIM compressed due to higher funding costs led by interest rate hikes in the past year and deposit pressure," it said.
The bank noted that its overhead cost was higher at RM6.47 billion compared with RM5.62 billion a year earlier.
This is on the back of higher personnel costs mainly from provisions for the recently concluded collective agreements, credit card-related fees, IT-related costs and marketing expenses.
As for asset quality, Maybank said it improved as gross impairment loans went down to 1.47 per cent from 1.81 per cent from the previous year due to write offs and low formation of newly impaired loans.
Chairman Tan Sri Zamzamzairani Mohd Isa said that the promising first half performance continues to validate the strong franchise that Maybank has and the M25+ strategy.
"The group remains positive on the outlook in the region, especially its home markets and will continue to create value for its stakeholders and remain committed to pursuing a responsible growth strategy for the future, in line with its mission to Humanise Financial Services.
"We are optimistic that better business opportunities remain, driven by policies outlined by the government to further drive private sector investments and enhance consumer confidence. We intend to leverage our strong brand equity, digital capabilities as well as expertise and solid infrastructure to tap into growth opportunities and serve our customers better," he said.
Moving forward, group president and chief executive officer Datuk Khairussaleh Ramli said the bank intend to accelerate its growth momentum and boost revenue drivers with emphasis on key growth areas.
He said while improving asset quality and maintaining strong liquidity and capital positions to manage potential risks that may arise from changes in the operating environment.
"We will continue to prioritise customer centricity through the enhancement of our customers' journey by providing relevant financial solutions and services across various touchpoints and focus on our strategic initiatives under Maybank's M25+ strategy anchored on the five strategic thrusts," he added.
