MALAYAN Banking Bhd (Maybank) has announced its financial results for the first quarter of the fiscal year ending March 31, 2023 (1Q23), with a notable 10.7% rise in net profit.

The bank recorded a net profit of RM2.27 billion, compared to RM2.05 billion in the same quarter of the previous year.

Earnings per share for the quarter stood at 18.79 sen, up from 17.23 sen in 1Q22.

The bank also witnessed a significant surge in revenue, which grew by 29.5% to RM14.78 billion from RM11.42 billion in the comparative quarter.

Maybank attributed the growth in net operating income to a 12.4% year-on-year (YoY) increase in non-interest income (NOII), reaching RM1.53 billion.

The increase was primarily driven by gains on derivatives and foreign exchange (forex), as well as investment and trading gains.

However, the bank experienced a slight decline of 2% in net fund-based income due to intense deposit competition, leading to a 15 basis points (bps) decline in net interest margin (NIM) YoY.

The bank reported higher overhead costs, amounting to RM3.05 billion compared to RM2.73 billion in the previous year, primarily due to increased personnel costs.

On a positive note, Maybank showcased improved asset quality as net impairment losses decreased by 50.9% to RM292.9 million in March 2023.

Gross impaired loans declined by 45bps to 1.5% from 1.95% a year earlier, mainly attributed to write-offs, recoveries and a low formation of newly impaired loans.

Furthermore, Maybank demonstrated a robust gross loans growth of 5.3% YoY, driven by increases in Indonesia and Malaysia.

The group’s gross deposits also saw a 3% rise, led primarily by a 5.2% growth in Malaysia and 0.3% in Singapore, supported by an expanded fixed deposits portfolio.

Maybank’s CET1 capital ratio stood at 15.09%, and the total capital ratio reached 18.48% as of March 31, 2023, indicating a healthy capital position.

The bank’s liquidity coverage ratio stood at 145.8%, surpassing the regulatory requirement of 100%.

Despite the moderation of the group’s current account savings account (Casa) ratio to 39.1% from 46.2% a year ago, it remains above the pre-pandemic level, highlighting Maybank’s stability and resilience in the face of economic challenges.

Maybank remains optimistic about its performance for the upcoming quarters, leveraging its strong revenue growth and improved asset quality to navigate evolving market conditions and continue delivering value to its stakeholders.

Meanwhile, Maybank group president and CEO Datuk Khairussaleh Ramli, has expressed confidence in navigating the challenging economic landscape ahead.

Khairussaleh said that the group remains steadfast in its strategies to overcome uncertainties and sustain growth.

In a statement, Khairussaleh pointed out the solid capital and liquidity positions of Maybank, affirming its resilience in the face of market headwinds.

He further emphasised the group’s commitment to sustainable growth, bolstered by its diversified footprint and multiple income streams.

Maybank shares fell 5 sen or 0.58% to RM8.56 today, translating to a market capitalisation of RM103.1 billion. – TMR