Maybank Indonesia’s Q1 top line rises 3.6 pct
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PT Bank Maybank Indonesia Tbk (Maybank Indonesia) today reported that its operating income after provisions increased to 682 billion rupiah for the first quarter ended March 31, 2018 compared with 633.9 billion rupiah recorded in the previous corresponding period.
In a statement, Maybank Indonesia said its profit after tax and minority Interest (PATAMI) stood at 463.1 billion rupiah for Q1, slightly lower than the 490.1 billion rupiah recorded in the same quarter a year ago.
Gross operating income rose 3.6 per cent to 2.5 trillion rupiah for the three months.
Maybank Indonesia said its operating income after provisions increased by 7.6 per cent and the bank’s top line grew 3.6 per cent supported by continued improvement in operational efficiency in line with its Strategic Cost Management Programme, as well as fee based income expansion, improvement in provisioning levels, growth in Sharia business and improvement in subsidiaries.
Sharia Banking continued to record strong performance in the first three months of 2018 with total assets increasing by 25.7 per cent to 27.1 trillion rupiah, making up 15.4 per cent of the itss total assets.
Total financing rose 41.6 per cent from 14.3 trillion rupiah as of March 2017 to 20.2 trillion rupiah as of March 2018, while its total deposits grew 44.1 per cent to 17.5 trillion rupiah from 12.1 trillion rupiah.
It said Non Performing Financing improved significantly to 3.2 per cent as of March 2018 compared with 4.6 per cent in the previous year.
The bank recorded a moderate loans growth of 2.2 per cent to 122.5 trillion rupiah as at March 31, 2018 from 119.9 trillion rupiah the previous year.
Global Banking loans recorded growth of 6.2 per cent to 27.6 trillion rupiah as of March 2018 from 26 trillion rupiah as of March 2017.
Maybank Indonesia said its customer deposits grew by 2.7 percent year-on-year with current accounts growing strongly at 27.3 per cent year-on-year, lifting the CASA (current account savings account) ratio to 39.7 per cent.
On March 15, 2018, the bank also issued Shelf Registered Bonds II Bank Maybank Indonesia Tranche II Year 2018 amounting to 645.5 billion rupiah to support its business expansion.
Maybank Indonesia has maintained its robust liquidity profile with its loan-to-deposit ratio remaining at a healthy level of 85.6 per cent and liquidity coverage ratio at 176.4 per cent as of March 2018, far in excess of the mandatory minimum of 90 per cent.
“The bank recorded a moderate loans growth of 2.2 per cent to 122.5 trillion rupiah as at March 31, 2018 from 119.9 trillion rupiah the previous year.”
Maybank Indonesia president director Taswin Zakaria said the bank will continue to grow its assets selectively to ensure sound asset quality going forward.
“Our Global Banking continues to be the leading contributor to our assets growth.
“The Sharia First strategy adopted by the Bank since 2014 continues to deliver impressive results.
“However, we expect our CFS (Community Financial Services) portfolio to gradually strengthen in the coming quarters as we see opportunities in the retail and small medium enterprise segments.
“This will be further underpinned by our recent initiative in transforming our retail business model,” he said.
Maybank Group president and chief executive officer Datuk Abdul Farid Alias said the first quarter results demonstrate Maybank Indonesia’s resilience in growing its revenue despite the increasingly competitive market in the country.
“The bank has firmly embedded sustainable business development strategies which cover retail transformation, digital banking enhancement, culture transformation as well as asset quality selection which will ensure continued value creation for all our stakeholders.
“The outlook for the medium term remains challenging; but we are optimistic that we can manage the risks and ensure steady growth of our business in the coming quarters,” said Farid.
Questions & Answers
Q.Why did Maybank Indonesia's profit after tax and minority interest decrease in Q1 2018?
Why did Maybank Indonesia's profit after tax and minority interest decrease in Q1 2018?
The article states that profit after tax and minority interest was slightly lower at 463.1 billion rupiah in Q1 2018 compared to 490.1 billion rupiah in the same quarter last year. The article does not specify the reasons for this decrease.
Q.What initiatives are supporting the growth of Maybank Indonesia's Sharia business?
What initiatives are supporting the growth of Maybank Indonesia's Sharia business?
The bank's 'Sharia First' strategy, adopted since 2014, is delivering impressive results. This strategy has led to significant increases in Sharia Banking's total assets, financing, and deposits in the first three months of 2018.
Q.What is Maybank Indonesia's strategy for its Community Financial Services (CFS) portfolio?
What is Maybank Indonesia's strategy for its Community Financial Services (CFS) portfolio?
The bank expects its CFS portfolio to gradually strengthen in the coming quarters. They see opportunities in the retail and small medium enterprise segments, underpinned by a recent initiative to transform their retail business model.
Q.How is Maybank Indonesia ensuring sound asset quality moving forward?
How is Maybank Indonesia ensuring sound asset quality moving forward?
Maybank Indonesia plans to continue growing its assets selectively to maintain sound asset quality. They are also implementing sustainable business development strategies, including asset quality selection, to ensure continued value creation.
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