Maybank’s 4Q net profit rises on improving business conditions

It is committed to supporting economic recovery across its home markets 

By ASILA JALIL / Pic MUHD AMIN NAHARUL

MALAYAN Banking Bhd (Maybank) expects a better outlook for 2022 driven by broader and sustained economic reopenings, easing of border controls and higher vaccination rates. 

The banking group stated it is committed to supporting economic recovery across its home markets by enabling access for financial support to customers to enhance their financial positions and capitalise on emerging growth opportunities. 

“As more customers experience an easing of cashflow pressures on sustained recovery, the group will continue to proactively engage with customers on a targeted basis to extend additional support for those in need and as part of our robust asset quality management process. 

“With expectations of improved mobility, Maybank will also look to defend its low-cost deposits’ base to maintain its net interest margin position. Concurrently, the group will continue to drive fee-based income growth through our wealth management, global markets, investment banking, asset management and insurance segments,” it said in its exchange filing yesterday. 

Maybank’s net profit for its fourth quarter ended Dec 31, 2021 (4Q21), rose 33.8% year-on-year (YoY) to RM2.06 billion attributable to the increase in its net interest income and Islamic banking income which rose RM566.5 million or 12.7% to RM5.02 billion. 

Group community financial services pretax and zakat profit also increased by RM1.43 billion or 172.5% year-on-year (YoY) to RM2.25 billion for the quarter due to net write-back of impairment losses on loans, advances, financing and other debts of RM550.2 million from net allowance of RM688.6 million. 

The increases were, however, offset by higher overhead expenses of RM125.5 million. 

Revenue for the quarter was down by 8.1% YoY to RM11.26 billion due to the decrease in other operational segments. 

The group’s corporate banking and global market’s profit before taxation and zakat was down by 53% YoY to RM394.3 million in 4Q21 due to lower other operating income of RM178.6 million, higher net allowance for impairment losses on loans, advances, financing and other debts of RM295.8 million, higher net allowance for impairment losses on financial investments and other financial assets of RM74.6 million and lower share of profits in associates and joint ventures of RM29 million. 

Investment banking segment’s 4Q21 pretax and zakat profit also decreased 13.5% YoY to RM182.8 million while the group’s asset management recorded a loss before taxation and zakat of RM52.7 million in the quarter under review. 

For financial year ended Dec 31, 2021, Maybank’s net profit increased 24.9% YoY to RM8.1 billion supported by the increase in its net interest income and Islamic banking income which rose 13.8% to RM19.61 billion. 

For its global banking segment, its corporate banking and global market’s pretax and zakat profit increased by 1.6% to RM4.07 billion from RM4 billion in the precious corresponding financial year mainly due to lower net allowances for impairment losses on loans, advances, financing and other debts of RM794.4 million and higher net interest income and income from IBS operations of RM363.2 million. 

Group investment banking’s profit before taxation and zakat also saw an increase of 6.8% to RM538 million from RM503.7 million. 

Revenue for the 12 months, however, slipped 10% YoY to RM45.96 billion from RM51.03 billion in the previous year. 

Other operating income of the group for the financial year dropped to RM4.47 billion, down by 38.8% from RM7.3 billion in the previous corresponding financial year mainly due to a lower net gain in investment income of RM1.42 billion. 

The bank declared a 30 sen dividend for the quarter, taking its full-year dividend to 58 sen a share compared to its total earning per share of 69.66 sen.