Malaysian bank Maybank's diversified businesses helped it continue to grow despite the financial turmoil, it reported yesterday.
Net profit for the six months to June 30 rose 3.4 per cent to RM3.28 billion (S$1.1 billion), bolstered by net operating income rising 10.8 per cent to RM9.88 billion. Maybank said this was "on the back of steady growth in net operating income across all business pillars".
Loans recorded healthy growth, rising 11.1 per cent on an annualised basis, owing to asset growth across the countries Maybank operates in, and was boosted by stronger momentum in the second quarter.
Net profit at Malaysia's largest bank by assets inched up 0.6 per cent to RM1.58 billion for the three months ended June 30, while net operating income rose 9.1 per cent.
Second-quarter fund-based income grew 13 per cent to RM3.54 billion, and net fee-based income was unchanged at RM1.34 billion as market activities continued to remain weak, noted the bank.
Moving forward, we will continue to carefully manage our risk-reward balance to try to sustain profit growth for the remainder of the year as we expect economic activities in our region of focus - Asean and China - to remain well above levels elsewhere in the world.
MAYBANK CHAIRMAN MEGAT ZAHARUDDIN MEGAT MOHD NOR
AT A GLANCE
Net profit: RM3.28 billion (+3.4%)
Net operating income: RM9.88 billion (+10.8%)
Interim dividend: 24 sen a share
It declared a single-tier interim dividend of 24 sen a share, which will come in a four sen cash portion and a 20 sen electable portion under the dividend reinvestment plan.
Maybank's international operations for the six months had net operating income growing 9.5 per cent to RM3.06 billion.
Maybank Singapore reported net operating income for the six months inched up 0.7 per cent to $398.12 million, on the back of a 13.2 per cent rise in net fund-based income.
The lender said this was owing to "a strong uplift in consumer loans", which grew 29.1 per cent to $14 billion, thanks to strong growth in housing and other personal loans. Business loans dipped 3 per cent on an annualised basis to $22.5 billion.
Fee-based income was hit by a fall in treasury and wealth management income, which was 19.7 per cent lower compared with the same period a year ago.
Deposits increased 11.6 per cent, which the bank said outpaced the industry growth of 6.4 per cent, with low-cost Casa (current account, savings account) deposits up 6.3 per cent. Asset quality in Singapore was comfortable, with the net impaired loans ratio at 0.35 per cent as of June.
Maybank chairman Megat Zaharuddin Megat Mohd Nor said in a statement: "Moving forward, we will continue to carefully manage our risk-reward balance to try to sustain profit growth for the remainder of the year as we expect economic activities in our region of focus - Asean and China - to remain well above levels elsewhere in the world."
Maybank chief executive officer Abdul Farid Alias said the bank will intensify its strategic cost management initiatives, "while adopting a more efficient capital management strategy to buffer against lingering impacts from the volatility in the market".