Maybank Indonesia reports strong profits in 1H 21
Maybank Indonesia Records Rp762 Billion Profit Before Tax (PBT) in the First Half of 2021, Supported by Strong Growth in Shariah Banking Unit
Maybank Indonesia or the Bank) today announced its Consolidated Financial Results for the first half ended 30 June 2021, with Profit Before Tax (PBT) at Rp762 billion, a decline of 28.5% from Rp1.1 trillion in the same period last year.
The Bank’s Profit After Tax and Minority Interest (PATAMI) for the first half was recorded at Rp510 billion, a decline of 37% from Rp810 billion in the same period last year, due to the prolonged impact of the Covid-19 pandemic since the first quarter of 2020.
The Bank's capital position remained strong, with its Capital Adequacy Ratio (CAR) standing at 26.3% in June 2021, compared with 22.1% in the previous year. The Bank's total capital also increased to Rp27.2 trillion in June 2021 from Rp26.4 trillion in the same period last year.
Maybank Indonesia continued to accelerate its digital banking transformation on its M2U ID service consisting of the internet banking (web) and digital banking application (App) offering convenience for customers, particularly in managing their personal finances.
In an effort to provide ease of use for customers' banking transactions, several enhancements were added during the first half of 2021, including features for online health insurance purchase and an enhanced security feature of Secure2u, for faster, easier and more secure transactions, minimising dependency on SMS One-Time-Password (OTP).
Maybank Indonesia continued to implement a "Shariah First" strategy to promote Islamic financial solutions through a Leveraged Model. This allowed Shariah Banking to access and utilise all the Bank’s resources and networks to market and distribute its Shariah financial products, which helped significantly increase the Sharia Banking Unit performance.
Amidst the challenging market conditions, Maybank Indonesia's Shariah Banking Unit Profit Before Tax surged 67.6% to Rp294 billion. The positive earnings were supported by the Bank's continuous efforts to increase its low-cost funding and manage costs efficiently.
President Director of Maybank Indonesia Taswin Zakaria said, “The current pandemic situation has been quite concerning, as the government's data showed an increase in the number of Covid-19 positive cases in the second quarter of 2021. This has impacted social and business activities, including financial services. In our view, the implementation of emergency public activity restriction (PPKM Darurat) and the acceleration of vaccination programmes could boost the market's confidence and lead to the gradual recovery of Indonesia’s economy. We remain disciplined in managing the growth of our business and continue to apply conservative risk management during these current challenging times. At the same time, we continue to innovate in providing various financial products and solutions relevant to our customers, even during the pandemic, in line with our mission of Humanising Financial Services. With our strong capital position and ample liquidity, we are poised to grow once the opportunity presents itself with economic recovery ahead.”
President Commissioner of Maybank Indonesia Datuk Abdul Farid Alias said, "We continue to see the impact from the prolonged COVID-19 pandemic but remain optimistic that the challenging conditions and uncertainties will be overcome in time. We are comforted that our prudent asset and liquidity management measures, supported by rigorous risk management practices, will allow the Bank to weather the current challenging environment. We believe there still remain growth opportunities in Indonesia, and we will actively pursue them while working to provide a better banking experience to customers."
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