Maybank Posts 2QFY22 net profit of RM1.86b

Maybank, Southeast Asia’s fourth largest bank by assets, said that its net operating income for the second quarter ended 30 June 2022 (2QFY22) rose by 10.7% to RM6.83 billion from RM6.17 billion previously.

This came as the steady reopening of economies helped boost fee based income by a robust 25.1% Y-o-Y, and net fund based income by 6.8% on the back of healthy loans growth. Pre-provisioning operating profit (PPOP) stood at RM3.78 billion from RM3.25 billion in 2QFY21.

The Group has also decided to increase the expected credit loss for loans and securities to RM1.16 billion as a pre-emptive measure to mitigate any potential need arising from heightened geopolitical events. As a result, PBT for the quarter eased 2.2% to RM2.67 billion from a year earlier while net profit came in 5.4% lower at RM1.86 billion after the Group booked in net impairment charges of RM1.16 billion compared with RM567.2 million last year. Overhead costs, meanwhile, were prudently managed, growing at a moderate pace of 4.6% Y-o-Y. This was attributable mainly to IT and revenue-related costs as the Group leveraged the increased mobility and regional economic activity to tap growth opportunities.

2QFY22 vs 1QFY22

Compared with the preceding first quarter of FY2022, the Group’s net profit of RM1.86 billion was 9.2% lower than the RM2.04 billion registered in 1QFY22, mainly owing to higher net impairment charges booked in the second quarter.

1HFY22 vs 1HFY21

For the six months ended 30 June 2022 (1HFY22), the Group’s net operating income rose 2.3% to RM13.30 billion from RM13.00 billion previously as net fund based income expanded 6.1% to RM10.08 billion on
the back of loans growth across all home markets and NIM expansion from a rising rate environment.

However, the growth in net operating income was mitigated by lower net fee based income, which declined 7.7% to RM3.23 billion from RM3.50 billion in 1HFY21. This was owing primarily to lower fee income across most business segments as a result of continued weak and volatile markets. Pre-provisioning operating profit rose 0.6% to RM7.30 billion.

Net impairment charges for 1HFY21 were, however, higher at RM1.75 billion compared with RM1.44 billion previously based on the pre-emptive provisioning made as mentioned earlier. After deduction of some RM1.64 billion for income tax and zakat, the Group’s net profit for 1HFY22 came in at RM3.90 billion compared with RM4.35 billion a year earlier.

Dividend

The Board of Directors has rewarded shareholders with a single-tier first interim dividend of 28 sen per share, comprising a cash portion of 21 sen and an electable portion of 7 sen per share under the Group’s
Dividend Reinvestment Plan. This translates into a total amount of RM3.35 billion in payout to shareholders, constituting 85.9% of net profit for the half-year.

Maybank Chairman, Tan Sri Dato’ Sri Zamzamzairani Mohd Isa said the Group continued to deliver a commendable performance with topline growth as economic momentum picked up following the reopening of economies, despite being also impacted by global market volatility. “Given that the immediate outlook remains clouded by economic and geopolitical uncertainties, we will focus on remaining agile to tap into growth opportunities that emerge, while managing our risks carefully. Arising from evolving trends in the external environment, our M25 Plan is being refined further but will remain the central pillar that ensures we are sustainable over the long term and deliver the right outcomes for the benefit of all our stakeholders.”

Meanwhile, Group President & CEO, Dato’ Khairussaleh Ramli, said the Group has emerged even more resilient post-pandemic, recording stable growth across its key business segments and building better all-round readiness to meet any challenges with confidence. “We will remain disciplined in maintaining our strong liquidity and capital positions which have given us the ability to navigate through the difficult operating environment. At the same time, we are committed to supporting our customers through the current recovery phase, particularly as we are faced with a rising interest rate environment. We will also be ramping up our digital capabilities regionally and driving our sustainability agenda as these will be key in fulfilling our growth agenda.”