Maybank Indonesia’s 2016 earnings soar 71%

P Prem KumarFriday, February 17, 2017
According to the bank, its overall performance was satisfactory despite the slow economy and challenging business environment (Pic by Muhd Amin Naharul/TMR)

Malayan Banking Bhd’s (Maybank) Indonesian chapter, PT Bank Maybank Indonesia Tbk, registered 1.9 trillion rupiah (RM650.38 million) in net profit for the year ended Dec 31, 2016 — a 71% increase from the previous year’s net pro t of 1.14 trillion rupiah.

The increase is attributed to sound net interest income (NII) growth, controlled cost management and better provisioning of non-performing loans (NPLs).

In a statement yesterday, Maybank Indonesia said its NII increased by 10.8% last year to 6.6 trillion rupiah, while net interest margin saw a 4.6% increase.

The growth in NII was mainly due to the bank’s discipline in loan pricing and active funding management, the statement read.

“Total Shariah banking financing grew by 61.2% to 14 trillion rupiah, making up 12.1% of the bank’s total loans, while net profit surged 61.9% to 466.2 billion rupiah,” Maybank Indonesia reported.

Keeping its overhead cost stable at 4.5 trillion rupiah last year from 2015, the bank said its overall performance was satisfactory despite the slow economy and challenging business environment.

In the financial year of 2016, Maybank Indonesia loans grew 2.9% to 115.7 trillion rupiah from 112.5 trillion rupiah, mainly due to global banking, as well as the support by the small and medium enterprises (SMEs) and commercial loans. Retail banking, however, saw a fall in loans.

It said global banking’s loans grew 20.5% from 21.4 trillion rupiah to 25.8 trillion rupiah, as it realigned and re-profiled its portfolio over the last two years.
As for the SME and commercial loans growth, the portfolio recorded a 12.3% increase to 51.5 trillion rupiah.

“However, retail banking loans decreased by 15.1% from 45.2 trillion rupiah in December 2015, to 38.4 trillion rupiah in December 2016 — mainly due to the slowdown in consumer spending.”

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