Maybank Q2 net profit soars to RM1.57b

Kuala Lumpur: Malayan Banking Bhd (Maybank), the country’s biggest lender, said yesterday second-quarter profit rose nine per cent, driven by higher lending and broking income.

Net income climbed to a record RM1.57 billion in the three months ended June 30 from RM1.44 billion a year earlier. 

Maybank’s revenue for the period was up 9.5 per cent to RM8.68 billion against RM7.93 billion a year earlier, while earnings per share was 18.23 sen compared with 18.65 sen before.

For the six-month period, Maybank posted a 10.4 per cent net profit to RM3.07 billion while revenue grew to RM16.91 billion against RM15.8 billion a year earlier.

“Our results have been strong due to our well-diversified portfolio and focus to improve performance despite the challenging external environment,” Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said at a press conference, here, yesterday.

“We are confident of further solidifying this position.”

Maybank declared an interim dividend of 22.5 sen a share, of which 6.5 sen is payable by cash and 16 sen can be reinvested in new ordinary shares. This represents a total payout of 63.7 per cent of group Patami (profit after tax and minority interest) for the period.

The bank’s net fund-based income in the first half rose 8.2 per cent to RM5.75 billion, supported by robust growth in global banking division (20.2 per cent) and community financial services (10.1 per cent).

Amid subdued operating environment, the group’s loan growth in the first half expanded to 9.1 per cent, thanks to the huge improvement in the local market. Second-quarter loan growth rose to 13.4 per cent against 5.3 per cent in the preceding quarter, exceeding industry’s benchmark of 10.1 per cent.

Fund-based income surged eight per cent from a year earlier, boosted by investment portfolio’s gains, higher trading income, especially record brokerage revenue in Thailand, coupled with rising commission, service charges and fees.

Helmed by new chief executive officer Datuk Abdul Farid Alias, Maybank is set to continue to accelerate regional expansion to enhance its portfolio.

With this in mind, Maybank will consider the setting up of a commercial bank in Thailand, Abdul Farid said.

"We are not rushing to make a decision until the deal makes sense to our shareholders," he said.

The bank has presence in Thailand via Maybank Kim Eng, the largest brokerage firm there. 

It also holds a controlling stake in PT Bank Internasional Indonesia and Singapore brokerage Kim Eng Holdings.

Maybank is seeking a higher overseas operations profit contribution of 40 per cent from 31.5 per cent currently. 

The bank is also on track to meet its two headline key performance indicators of return on equity of 15 per cent and 12 per cent loan growth in financial year 2013.

Read more: Maybank Q2 net profit soars to RM1.57b http://www.btimes.com.my/Current_News/BTIMES/articles/20130822002210/Article/index_html#ixzz2cgQy8X3E