KUALA LUMPUR: Malayan Banking Bhd
(Maybank) has turned in another solid quarter, underpinned by steady income growth and a significant improvement in net impairment provisions.
In the third quarter ended Sept 30, 2023, the banking group turned in a net profit of RM2.36bil, up from RM2.1bil in the same quarter in 2022, representing a basic earnings per share of 19.56 sen, up from 17.67 sen previously.
The group reported revenue of RM16.01bil, up from RM13.02bil, as non-interest income (NOII) rose and net impairment provisions improved.
Accordingly, Maybank's NOII was up 6.1% year-on-year (y-o-y) to RM1.94bil while net impairment provisions narrowed 59.3% to RM342.2mil.
The group's net operating income, however, was down 5.2% y-o-y to RM6.75bil due to a decrease in net fund-based income of RM4.81bil as net interest margins compressed amid competition for funds.
Cumulatively, the group recorded a net profit of RM6.96bil in 9MFY23, as compared to RM5.76bil in 9MFY22, while revenue had grown to RM47.34bil from RM34.39bil previously.
As at end-September 2023, the group's gross loans had grown 5.1% y-o-y on the back of increases in its home markets of Malaysia and Singapore.
It said its Malaysian market's gross loans grew 3.7%, Singapore's expanded 3%, while other markets contributed a 5.5% increase.
The group’s gross deposits, meanwhile, expanded 3.5% as fixed deposits grew 20.3% offsetting a decline of 8.8% in other deposits and 8.9% in current account, savings account (Casa).
Group president and CEO Datuk Khairussaleh Ramli said global challenges remain but Maybank will continue to pursue opportunities for growth guided by its corporate strategy across all its customer and business segments within its Asean operations.
It will also maintain its strong liquidity position, improving asset quality, and preserving sound capital levels.
"The group will continue to bring about positive impact to the communities it serves in line with its purpose of humanising financial Services," he added.
For the nine months ended Sept 30, 2023, Khairussaleh said Maybank continued to record strong progress in sustainable financing, achieving close to RM53bil and well ahead in achieving the RM80bil target by 2025.
