Maybank Indonesia nets RM320.8m profit in 1H17

by NG MIN SHEN

MALAYAN Banking Bhd’s (Maybank) Indonesian unit, PT Bank Maybank Indonesia Tbk, recorded profit after tax and minority interest of 998.5 billion rupiah (RM320.81 million) for the rst six months of 2017 (1H17).

The improvement — a 16.3% increase from the 858.4 billion rupiah achieved a year ago — is attributed to the overall improvement in Maybank Indonesia’s core banking business.

Net interest income rose 7% to 3.8 trillion rupiah during the period under review versus 3.6 trillion rupiah the year before, mainly a result of disciplined loan pricing and active funding management.

Net interest margin grew to 5.3% in June 2017 compared to 5% in the same month last year. Fee-based income expanded 9.1% to 1.5 trillion rupiah in June this year from 1.3 trillion rupiah in June 2016 — driven by bancassurance, loan recovery, remittances and other services. Maybank Indonesia president director Taswin Zakaria said in a statement yesterday that the bank’s 1H17 results reflect improvement in its core business performance alongside strong fundamentals, rigorous risk management practices and a disciplined approach towards pricing and growth.

“Together with ongoing efforts to boost our capabilities through improvements in the system, processes, people and cost structure, we are confident of seeing sustainable profitable growth for the rest of 2017,” he said.

The lender’s global banking loans also recorded a loan growth of 18.9% year-on-year (YoY) to reach 27.3 trillion rupiah in June 2017 as a number of key deals were successfully realised, benefitting from the bank’s realigning and re-profiling of its portfolio.

Community financial services retail banking loans dropped 6.4% YoY to 42.5 trillion rupiah in June 2017 due to a slowdown in consumer spending, while non-retail loans — comprising micro, small and medium enterprises, and business banking — grew 2% YoY to 50.1 trillion rupiah in 1H17.

Consolidated non-performing loans level remained at 3.6% (gross) and 2.4% (net) as of June 2017 compared to the previous corresponding period. Provision expenses also fell 15.7% to 835.8 billion rupiah in June 2017 from 991.1 billion rupiah last year.

“Nonetheless, the bank remains cautious over loan quality as businesses are still impacted by the continued slow movement in the economy,” the lender stated.

Its loan-to-deposit ratio for the bank stood at 86.7%, while its loan-to-funding ratio was at 85.9%. Total customer deposits rose 5% to 119.8 trillion rupiah in 1H17 from 114.1 trillion rupiah previously, with the current account and savings account ratio reaching 37.4%.

Cost-to-income ratio was maintained at 57.9% as at endJune 2017.

For Maybank Indonesia’s Shariah banking segment, net profit surged 95.9% to 384.9 billion rupiah in June this year from 196.4 billion rupiah a year ago.

Total Shariah financing climbed 49% to achieve 16.2 trillion rupiah in June 2017 compared to 10.8 trillion rupiah in June last year, while deposits jumped 41.4% YoY to 13.5 trillion rupiah from 9.6 trillion rupiah.

The division’s total assets improved 30.5% to 22.2 trillion rupiah, contributing 13% of the bank’s consolidated total assets.

Maybank group president and CEO Datuk Abdul Farid Alias said the bank showed continued encouraging improvement for 1H17, despite the challenging macroeconomic environment.

“While we continue to focus on sustainable profitable growth, we remain committed to supporting growth in the country’s economic activities, as well as community development through our various empowerment programmes.”