Maybank records 10.7% increase in Q1 profits
The group’s profit before tax also grew 2.7%.
Malaysia-based bank, Maybank, saw an increase in net profits which rose by 10.7% year-on-year (YoY) to RM2.27b ($490m) in the first three months of 2023.
Simultaneously, profit prior to tax inched up 2.7% YoY to RM3.06b ($660m).
“The stable results were driven by continued improvement in asset quality as well as treasury and market gains that supported the group’s net operating income,” Maybank said in a release.
The bank’s net operating income for the January to March period also rose to RM6.32b ($1.37b). This was accompanied by a 12.4% YoY jump in non-interest income of RM1.53b ($330m), driven by increases in derivatives, foreign exchange, investment and trading.
Slightly dragging growth was a smaller net fund-based income of 2.0% whilst net interest margin (NIM) fell by 15 basis points (bp) YoY due to strong deposit competition.
Its overhead cost saw increased 11.7% to RM3.05b ($660m), versus the RM2.73b ($590m) in the previous year. Mainly influenced by higher personnel costs due to larger provisioning for the bank’s recently concluded collective agreement, and bigger expenses in IT, marketing, and revenue.
“Asset quality improved as net impairment losses decreased by 50.9% to RM292.9m in March 2023,” Maybank said.
Gross impaired loans fell 45bps to 1.50% versus 1.95% in the same period last year. Which led to net credit charge-off rate at 25bps whilst loan loss coverage solidified to 133.5%.
“The group continues to undertake proactive engagement with clients facing financial challenges by assisting them in managing their commitments effectively.” Maybank added.
(RM1.00 = $0.22)