PETALING JAYA: Malayan Banking Bhd (Maybank) posted a bumper RM2.34 billion net profit for its second quarter ended June 30 (Q2 FY2023), a 45.4% jump from RM1.6 billion a year ago, led by higher non-interest income from stronger treasury and markets performance.
Revenue for the quarter surged 58% to RM16.13 billion from RM10.21 billion a year ago, the banking group said in a filing today.
For the six months ended June 30 (H1 FY2023), net profit rose by 26.5% to RM4.6 billion compared with RM3.64 billion in the same period last year. Revenue rose to RM31.32 billion from RM21.36 billion a year earlier.
Earnings per share (EPS) came in at 19.4 sen for Q2 FY2023, up 44.3% from 13.44 sen the year before.
The group declared a first interim dividend of 29 sen per share, translating to a dividend payout ratio of 75.9% or RM3.5 billion.
Meanwhile, net operating income for the quarter expanded by 15.9% year-on-year (y-o-y) to RM7.31 billion, led by higher non-interest income from stronger treasury and markets income.
However, net fund-based income decreased to RM4.83 billion from RM5.17 billion as net interest margin (NIM) compressed due to persisting funding competition, it said in a statement.
Net operating income for H1 FY2023 rose by 8.6% y-o-y to RM13.63 billion, led by a 61% boost in non-interest income to RM4.01 billion.
“This however, was offset by a lower net fund-based income, which declined 4.4% y-o-y to RM9.62 billion, as NIM had compressed due to higher funding costs led by interest rate hikes in the past year and deposit pressure,” it said.
Rising overhead costs
Maybank registered higher overhead costs at RM6.47 billion compared with RM5.62 billion a year earlier due to higher personnel costs from provisions for the recently concluded collective agreements, credit card-related fees, IT-related costs and marketing expenses.
Loans continued to show healthy growth for both consumer, and business banking and SME segments which rose by 6.2% and 8.6% y-o-y respectively.
For its Malaysian operations, loans expanded by 5.9% y-o-y, led by a 5.5% rise in consumer portfolio while its business banking and SME segment recorded an increase of 7.8% compared to the prior year.
For H1 FY2023, its global banking showed a 35.7% rise in profit before tax (PBT) to RM2.78 billion, attributed to lower loan loss provisions.
However, net operating income was lower by 10.5% y-o-y to RM4.56 billion due to the slowdown in global markets and investment banking group businesses amid macroeconomic headwinds.
Corporate loans meanwhile continued to grow steadily at 2.7% y-o-y, while deposits maintained a healthy growth momentum, across key home markets.
Maybank said notwithstanding the global challenges, it will pursue opportunities for growth across its consumer and business segments within its Asean franchise, and will maintain its strong liquidity position to support asset growth.
Group president and CEO Khairussaleh Ramli said the group’s aim going forward is to accelerate growth momentum and boost revenue drivers with emphasis on key growth areas, while improving asset quality and maintaining strong liquidity and capital positions.
Maybank’s shares closed two sen or 0.22% higher at RM9.11, giving it a market capitalisation of RM109.8 billion.