Both banks have blamed the pandemic for their poor performance.
Malaysia’s top two banks both registered Q3 profit dips as the pandemic takes toll on their performance, reports Reuters.
Maybank, the country’s largest lender by assets, logged a 2.3% fall in QoQ net profit to $479.12m (MYR1.95b) from $491m (MYR2b) last year as revenues also plummeted 57% to $3.38b (MYR13.76b). Its net interest margin (NIM) shrank to 2.05% from 2.32% last year due to rate cuts.
Maybank said loan loss provisions are expected to remain elevated and it will mitigate expected lower income by stepping up its strategic cost-management programme to limit increases in overheads.
In a similar vein, CIMB saw its quarterly net profit plunge 80% to $47.76m (MYR194.1m) from $248m (MYR1.01b) a year ago, with revenues also slipping 3.7% to $1.095b (MYR4.46b).
CIMB saw expected credit losses on loans, advances and financing skyrocket 277% to $369m (MYR1.5b) but said it registered strong operating income across nearly all segments. Its NIM for the quarter was at 2.31%.
Here’s more from Reuters.
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