KUALA LUMPUR: Malayan Banking Bhd
‘s net profit in the second quarter ended June 30, 2021, more than doubled to RM1.96bil from RM941.7mil in the same quarter last year, underpinned by loans growth and a wider net interest margin (NIM) resulting from a more cost-effective funding mix and lower impairments.
In a filing with Bursa Malaysia, the bank said revenue for the quarter under review was RM11.34bil compared to RM11.79bil in 1QFY20.
The board of directors declared a first interim dividend of 28 sen per share under the dividend reinvestment plan, comprising 14 sen per share to be paid in cash and the remainder to be either reinvested in new shares or paid in cash.
In 2QFY21, the bank’s net operating income was 9.3% higher year-on-year at RM6.17bil on the back of a 26.4% improvement in net fund based income resulting from loans expansion and strong growth in low-cost current and saving accounts (CASA) deposits.
The improved net fund based income offset a 27% decline in net fee based income resulting from the impact of movement restriction in the region, it said in a statement accompanying the results.
However, the 2Q earnings were 18% lower than RM2.39bil recorded in the the first quarter of the year, mainly owing to a decline in net fee based income arising from the impact of the resurgence of the Covid-19 pandemic as well as higher marked-to-market losses and overhead expenses.
Over the six months to June 30, 2021, the bank’s net profit rose to RM4.35bil compared to RM3bil in the first half of 2020, while revenue dipped to RM23.56bil from RM25.03bil in the comparative period.
Net impairment losses in 1HFY21 was lower at RM1.44bil compared with RM2.77bil in the year-ago period.
In Malaysia, the bank’s gross loans expanded 4.7%, outpacing industry growth of 3.4%.
Gross deposits at the group level expanded 5.5% with Malaysia showing the most expansion at 4.7%.
CASA improved to 45.4% in June 2021 from 40.2% in June 2020.
Loan-to-credit ratio stood at 137.2% while loan-to-deposit was 89.3%.
Total capital ratio was 17.42% while fully loaded CET1 ratio stood at 14.2%.
The group’s asset quality improved with gross impaired loans ratio declining to 2.18% in June 2021 from 2.49% a year earlier.
Loan loss coverage as at June 2021 further improved to 114.8% from 90.5% a year earlier.
According to Maybank chairman Tan Sri Zamzamzairani Mohd Isa, the group remains cautious about the overall regional growth momentum given the resurgence of Covid-19 cases in recent months.
“The emergence of new virus variants has been a cause for concern, causing protracted lockdowns in many regional markets which will have some impact on our growth prospects in the coming quarters.
“Nonetheless, Maybank remains committed to assisting those affected through our financial solutions as well as community support so that we can all navigate safely through this pandemic,” he said.
Meanwhile, group president and CEO Datuk Abdul Farid Alias said the gorup will continue to focus on robust risk amangemet, strengthening its capital and growing its CASA deposit base to provide suficient buffers for unexpected events.
