by VEISHNAWI NEHRU / pic BLOOMBERG

MALAYAN Banking Bhd (Maybank) reported a net profit of RM2.39 billion for the fourth quarter ending on Dec 31, 2023 (4Q23), up 8.3% year-on-year, as it benefitted from the pick-up in regional economies.

The 4Q23 revenue was up 14% YoY to RM17.13 billion.

South-East Asia’s fourth-largest bank by assets saw its full-year (FY23) net profit jump 17.5% YoY to RM9.35 billion, on the back of revenue of RM64.47 billion which was up 30.5% from the previous year.

In a statement, it said the results were driven by higher operating income on the back of improved regional economic activities and significant improvement in net impairment provisions.

Maybank chairman Tan Sri Zamzamzairani Mohd Isa said the group would accelerate the rollout of its digital solutions.

The financial group announced a second interim dividend of 31 sen per share, bringing the total dividends for FY23 to 60 sen per share, resulting in a payout ratio of 77.4%. This is Maybank’s highest full-year dividend post-pandemic.

In FY23, Maybank said its net interest margin dropped by 27 basis points due to higher funding costs and deposit competition, while loans grew by 9.2% and fixed deposits rose by 11.2%, with current-account-savings-account deposits declining by 1.7%.

On its prospects, Maybank said given the improved regional economic outlook, it was poised to capitalise on identified business growth in key areas of group community financial services, group global banking and group insurance, and takaful in the home markets.

It said its focus would cut across fund-based and fee-based income.

Barring any unforeseen circumstances, Maybank has targeted to achieve a return on equity of 11% for FY24.

Maybank shares ended today’s trade unchanged at RM9.51, just below its 52-week high of RM9.55. Its 52-week low was RM8.26.