Maybank's Q2 profit slides 27%, sees loans growth slowing at home

A Maybank branch located at Battery Road in Singapore.
A Maybank branch located at Battery Road in Singapore. ST PHOTO: LIM YAOHUI

KUALA LUMPUR (REUTERS) - Malaysia's biggest lender Malayan Banking Bhd (Maybank) forecast on Thursday (Aug 25) that domestic loans growth would slow, as it posted a 27 per cent drop in second-quarter net profit due to a surge in allowances for impairments.

Maybank said in a statement that loans growth in Malaysia will likely continue to moderate to 6-7 per cent this year from 7-8 percent in 2015 on the back of easing household loans growth.

Net profit slid to RM1.16 billion (S$389.3 million) for the April-June quarter from RM1.58 billion a year ago.

Allowances for impairment losses on loans, advances and financing jumped to RM982 million in the second quarter from RM301 million in the same period last year.

Net interest income for the quarter rose 7.5 per cent to RM2.88 billion due to growth in the group's gross loans, advances and financing, the lender said.