28/02/2024 05:52 PM

KUALA LUMPUR, Feb 28 (Bernama) -- Malayan Banking Bhd (Maybank) posted a higher net profit of RM9.35 billion, an increase by 17.5 per cent, for the financial year ended Dec 31, 2023 (FY2023) compared to RM7.96 billion in FY2022.

Revenue grew to RM64.47 billion from RM49.42 billion previously, Maybank said in a filing with Bursa Malaysia today.

As for the fourth quarter of 2023 (4Q 2023), the bank posted a net profit of RM2.39 billion from RM2.21 billion in 4Q 2022, while revenue rose to RM17.13 billion from RM15.03 billion previously. 

However, it noted that the group’s net interest income and Islamic banking income for FY2023 decreased by RM860.7 million or 4.1 per cent to RM20.37 billion as compared to FY2022. 

Maybank also shared that its insurance/takaful service result grew by RM338.4 million or 159.9 per cent to RM550.1 million for FY2023 compared to FY2022. 

Other operating income of the group for FY2023 was RM7.99 billion, an increase of RM3.39 billion or 73.5 per cent, from RM4.60 billion in FY2022.

“The increase was mainly due to lower unrealised mark-to-market loss on revaluation of derivatives of RM2.40 billion, higher foreign exchange gain of RM1.17 billion, and net investment income of RM319.9 million for FY2023, (among others),” it said.

However, the bank said that the increase was offset by lower unrealised mark-to-market gain on revaluation of financial liabilities at fair value through profit or loss (FVTPL) of RM2.51 billion and realised loss on derivatives of RM60.1 million for FY2023 as compared to realised gain on derivatives of RM896.1 million for FY2022.

During the results briefing, president and group chief executive officer Datuk Khairussaleh Ramli noted that the higher net profit was supported by income growth from gains in treasury and markets income as well as core fees and lower provisioning.

The bank saw a higher net operating income (NOI) of 3.3 per cent, led by non-interest income (NoII), which increased by 38.3 per cent from gains in investment and trading income foreign exchange and higher core fees, he said.

However, he noted the bank experienced a lower net fund-based income of 6.6 per cent as net interest margin (NIM) compression stood at 27 basis points (bps) on higher funding costs and continued deposit competition.

“Cost also increased by 11.8 per cent on higher personnel costs, information technology expenses, right-of-use assets depreciation and credit card-related fees due to higher billings,” he shared.

As for net impairment provisions, he said it decreased by 39.5 per cent to RM1.68 billion on lower net loan provisioning by 16.3 per cent to RM1.83 billion, given the pre-emptive provisioning made in 2022 and writebacks for corporate borrowers in 2023, as well as a net writeback in financial investments and others of RM145.15 million.

He also noted that the bank’s gross impaired loans (GIL) ratio also improved by 23 bps to 1.34 per cent from 1.57 per cent a year earlier, while loan loss coverage remained strong at 124.9 per cent from 131.2 per cent in 2022, with return on equity rising to 10.8 per cent from 9.6 per cent a year ago.

As for the loan growth in FY2023, Khairussaleh said total group gross loans grew strongly by 9.2 per cent year-on-year (y-o-y), lifted by increases in all home markets of Malaysia, Singapore and Indonesia by 6.7 per cent, 8.7 per cent and 6.2 per cent, respectively.

Meanwhile, he pointed out that the group’s deposits expanded by nine per cent, attributable to growth across its Singaporean (13.5 per cent), Indonesian (9.4 per cent) and Malaysian (4.9 per cent) markets.

The group’s fixed deposits were also up 11.2 per cent due to growth in Singapore and Indonesia, while the group’s current account savings account declined 1.7 per cent, as contributed by the Malaysian and Singaporean markets, he said.

Maybank, he said, maintained robust capital and liquidity positions as at Dec 31, 2023, with its common equity tier 1 (CET1) capital ratio registering at 15.34 per cent and the total capital ratio posting at 18.56 per cent, compared to 14.78 per cent and 18.20 per cent, respectively, in December 2022.

The group’s liquidity coverage ratio remained stable at 142.1 per cent, well above the regulatory requirement of 100 per cent, he shared. 

Commenting on the results, its chairman Tan Sri Zamzamzairani Mohd Isa said that Maybank continued to remain resilient and further strengthen its position as a leading financial institution in the region by managing its business in a disciplined and responsible manner.

He said that the bank continued to make a positive impact in the communities it serves despite an unpredictable global environment amidst various geo-political developments.

“The group will continue to advance the application of value-based banking principles through its solutions and services as a strategic differentiator to drive economic value aligning to our mission of ‘Humanising Financial Services’.

“The roll-out of digital solutions will be accelerated in line with a holistic, regional digital and sustainable business model as seen in our myimpact agenda to address end-to-end customer lifestyle and business needs,” he said.

Moving forward into 2024 and leveraging an improved economic outlook, Khairussaleh said the bank is looking at 6 to 7 per cent loan growth, which will come from the Malaysian, Singaporean and Indonesian markets as well as across various sectors.

“We know that in Malaysia, consumption growth will remain strong with business activity picking up. We expect Malaysia’s gross domestic product to grow by 4.4 per cent this year.

“With investment coming in and once implemented, there will be more opportunities to finance in addition to some infrastructure funding opportunities.

“In Indonesia, we remained optimistic about the small and medium enterprises (SME) segment, large corporate segment and their state-owned enterprises.

“In Singapore, we will leverage the corporate side as well as the SME sector, while hire purchase will also continue in this market,” he said.

He added that he expected the overnight policy rate to remain at 3.00 per cent this year and compression in NIM by about five bps.




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