KUALA LUMPUR: Malayan Banking Bhd's (Maybank) net profit rose 17.5 per cent to RM9.35 billion for the full year ended Dec 31, 2023 (FY23) from RM7.96 billion a year ago.
The better results were driven by higher operating income on the back of improved regional economic activities and significant improvement in net impairment provisions, the group said in a statement today.
Annual revenue grew 30.5 per cent to RM64.47 billion from RM49.42 billion in FY22.
As a result, the bank registered a higher earnings per share of 77.55 sen compared to 66.51 sen previously.
The bank also declared a full-cash second interim dividend of 31 sen per share, lifting full-year dividends to 60 sen per share, translating into a payout of 77.4 per cent.
Meanwhile, Maybank's net operating income also grew by 3.3 per cent to RM27.36 billion, led by a strong 38.3 per cent year-on-year (YoY) increase in non-interest income (NOII) from gains in investment and trading income, foreign exchange and higher core fees.
Overhead costs expanded to RM13.39 billion or 11.7 per cent a year earlier on higher personnel costs, credit card related fees due to higher billings, right of use (ROU) assets depreciation and IT related costs.
Net impairment provisions decreased by 39.5 per cent to RM1.68 billion following lower net loan provisioning of 16.3 per cent to RM1.83 billion on writeback for corporate borrowers, and pre-emptive provisioning made in 2022 as well as a net writeback in financial investments and others of RM145.15 million.
Group loans grew 9.2 per cent YoY, demonstrated by improvements in key home markets and business segments. For the fourth quarter ended Dec 31, 2023 (4Q23), Maybank's net profit rose 8.3 per cent to RM2.39 billion from RM2.21 billion a year ago, benefitting from the pick-up in regional economies during the period.
Quarterly revenue rose 13.9 per cent to RM17.13 billion from RM15.03 billion in 4Q22.
"The group will continue to advance the application of value-based banking principles through its solutions and services as a strategic differentiator to drive economic value aligning to our mission of Humanising Financial Services. "The roll out of digital solutions will be accelerated in line with a holistic, regional digital and sustainable business model as seen in our myimpact agenda to address end-to end customer lifestyle and business needs," Maybank chairman Tan Sri Zamzamzairani Mohd Isa said.
Meanwhile, president and group chief executive officer Datuk Khairussaleh Ramli said Maybank's laser-focused efforts in delivering on its M25+ strategy has borne positive outcomes, evidenced by both improving topline and asset quality management across its sectors and markets.
"Our commitment to serving the evolving needs of our customers remains unwavering as we witness tangible progress in deepening customer relationships, increased revenue diversification and optimising operational efficiency. "Notwithstanding this, targeted strategic investments will continue, to ensure enablers and capabilities are able to cope with the business and operational needs," he added.
Looking ahead, Khairussaleh said the bank will stay focused in executing our M25+ strategy with agility and determination.
