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Maybank’s Q4 net profit up 5.1% to RM2.2bil

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Net profit for FY2022 came in at RM8.2 billion, a 1.68% rise from FY2021’s RM8.09 billion.

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Free Malaysia Today
Maybank will raise the target of its sustainable financing to RM80 billion and commit to improving the lives of two million households in Asean.

PETALING JAYA:
Malayan Banking Bhd (Maybank) posted a net profit of RM2.17 billion for the fourth quarter ended Dec 31, 2022 (Q4 FY2022), up 5.1% from the corresponding period the previous year at RM2.06 billion.

Net profit for FY2022 came in at RM8.2 billion, a 1.68% increase from FY2021 at RM8.09 billion.

Growth in net profit compared to the preceding quarter (Q3) was even more marginal, a 0.08% increase from RM2.165 billion to RM2.167 billion in Q4.

The performance was attributed to an increase in its group community financial services (Group CFS) and group corporate banking and global markets.

Maybank declared a second interim cash dividend of 30 sen, and earnings per share fell to 17.98 sen from 18.22 sen in the preceding quarter.

Its net interest income and income from Islamic Banking Scheme operations for FY2022 increased by RM1.64 billion or 8.4% to RM21.25 billion as compared to the previous corresponding financial year.

However, the group’s overhead expenses rose due to higher marketing, administration and establishment costs.

Allowances for impairment losses on loans, advances, financing and other debts decreased by RM469.2 million or 17.7% to RM2.19 billion compared to the previous corresponding financial year.

Prepared to face challenges ahead

Maybank acknowledges that the global environment will be challenging for 2023, but is hopeful it will be able to support growth.

The group looks forward to China’s reopening, positive foreign direct investment (FDI) inflows and possible return of the overnight policy rate (OPR) to pre-pandemic levels.

“Maybank Group will continue to focus on opportunities for growth across its consumer and business segments within its Asean franchise,” it said.

It expects its net interest margin (NIM) to deteriorate by between five and eight basis points this year as interest rate hikes stabilise and the competition intensifies across loans and deposits.

“In FY2022, Maybank’s NIM expanded by seven basis points year-on-year on the back of an 8.4% increase in total net fund-based income to RM20.69 billion due to stronger loan growth in its Malaysia and Indonesia markets,” said group president and CEO Khairussaleh Ramli during a media briefing on the bank’s FY2022 performance today.

He emphasised that the bank could not predict the future, hence forecasts were purely based on present data. With that, Maybank has set achieving a return on equity of between 10.5% and 11% for FY2023 as one of their key performance indicators.

Loan growth to moderate

Khairussaleh said Maybank expects loan growth for FY2023 to moderate, tracking the slower growth of Malaysia’s gross domestic product (GDP).

“We also believe that the group is about to see growth from SMEs not just in Malaysia but Singapore and Indonesia,” he added.

In a filing, the group emphasised that investment would be challenged to integrate the bank’s digital and physical networks to drive regional cross-selling synergies in achieving its M25+ corporate strategy.

The group hopes to consolidate its position as a leader in both Islamic and sustainable finance.

On the sustainability front, Khairussaleh said Maybank will raise the target of its sustainable financing to RM80 billion and commit to improving the lives of two million households in Asean.

In the last two years, the group has achieved a disbursement of RM34 billion.

At the close of trade today, Maybank’s share price was up 1 sen at RM8.75, giving it a market capitalisation of RM105.71 billion.

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