Maybank Indonesia Patmi up 16.3% in 1H
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Malayan Banking Bhd’s (Maybank) Indonesian unit PT Bank Maybank Indonesia Tbk (Maybank Indonesia) posted a 16.3% year-on-year (y-o-y) rise in profit after tax and minority interests (Patmi) to 998.5 billion rupiah (RM320.7 million) for the first six months ended June 30, 2017 (1HFY17), from 858.4 billion rupiah, on an overall improvement in its core banking business.
In a statement yesterday, Maybank said Maybank Indonesia’s net interest income rose 7% y-o-y to 3.8 trillion rupiah in 1HFY17, from 3.6 trillion rupiah, mainly due to the bank’s discipline in loan pricing and active funding management.
The net interest margin improved to 5.3% in June 2017, compared with 5% in June 2016, while fee-based income grew 9.1% to 1.5 trillion rupiah from 1.3 trillion rupiah.
“I am pleased the bank continued to show encouraging improvement for the first semester despite the challenging macroeconomic environment,” Maybank group president and chief executive officer Datuk Abdul Farid Alias said. He is also Maybank Indonesia’s president commissioner.
Maybank Indonesia’s global banking loans grew 18.9% to 27.3 trillion rupiah in June this year, as a number of key deals were successfully realised.
Its community financial services (CFS) non-retail loans, which comprise micro, small and medium enterprises, and business banking, grew by 2% to 50.1 trillion rupiah. However, due to a slowdown in consumer spending, CFS retail loans declined 6.4% to 42.5 trillion rupiah, the banking group added.
Maybank Indonesia’s asset quality was also maintained, with the consolidated non-performing loan (NPL) level remaining at 3.6% (gross) and 2.4% (net) as of June 2017, compared to a year earlier. Provision expenses declined by 15.7% to 835.8 billion rupiah in June 2017, from 991.1 billion rupiah in June 2016.
“Maybank Indonesia’s global banking loans grew 18.9% to 27.3 trillion rupiah in June this year, as a number of key deals were successfully realised.”
The loan-to-deposit ratio (bank only) stood at a “healthy” 86.7%, while the loan-to-funding ratio (bank only) was at 85.9%. Total customer deposits grew 5%, from 114.1 trillion rupiah in 1HFY16 to 119.8 trillion rupiah in 1HFY17, with the current account and savings account ratio reaching 37.4%.
Maybank said its Indonesian unit’s continuous focus on transactional banking and electronic channels, which include its Internet-based mobile banking facility Maybank M2U, also “contributed greatly” to the improved liquidity position.
Syariah banking also continued to perform in 1HFY17, said Maybank, with net profit growing 95.9% to 384.9 billion rupiah in June 2017, from 196.4 billion rupiah in June 2016.
“Total syariah financing rose 49%, reaching 16.2 trillion rupiah in June 2017, compared with 10.8 trillion rupiah in June 2016, while deposits jumped 41.4% to 13.5 trillion rupiah from 9.6 trillion rupiah,” Maybank said.
Meanwhile, Maybank Finance reported a 20.4% rise in profit before tax to 174.9 billion rupiah in June 2017, from 145.2 billion rupiah in June 2016, with a 21.9% rise in consumer financing (stand-alone) to 6.7 trillion rupiah from 5.5 trillion rupiah. In terms of asset quality, gross and net NPLs stood at 0.4% and 0.3% respectively.
“Our strong first-semester results clearly reflect the steady improvement in our core business performance as strong fundamentals, rigorous risk management practices, as well as a disciplined approach towards pricing and growth are well in place,” said Maybank Indonesia president director Taswin Zakaria.
The bank is confident of seeing sustainable profit growth in the remainder of 2017, he added.
Questions & Answers
Q.What specifically drove the improvement in Maybank Indonesia’s net interest income during the first six months?
What specifically drove the improvement in Maybank Indonesia’s net interest income during the first six months?
Net interest income rose primarily due to the bank's careful approach to loan pricing and its effective management of funding. This helped increase the net interest margin from 5% to 5.3%.
Q.How did Maybank Indonesia's different loan categories perform in the first half of the year?
How did Maybank Indonesia's different loan categories perform in the first half of the year?
Global banking loans grew significantly by 18.9%, and community financial services non-retail loans increased by 2%. However, CFS retail loans declined by 6.4% due to reduced consumer spending.
Q.What contributed to the improved liquidity position of Maybank Indonesia?
What contributed to the improved liquidity position of Maybank Indonesia?
The bank's improved liquidity position was greatly helped by its continuous focus on transactional banking and the use of electronic channels, including its Internet-based mobile banking facility, Maybank M2U.
Q.Did the Syariah banking segment show strong growth in the first half of 2017?
Did the Syariah banking segment show strong growth in the first half of 2017?
Yes, Syariah banking performed strongly, with net profit rising by 95.9% and total Syariah financing increasing by 49%. Deposits also jumped by 41.4% in the period.
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