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Maybank Q2 earnings up 0.5%

Publication Date : 28-08-2014

 

Malayan Banking Bhd (Maybank) posted net profit of 1.575 billion (US$500 million) in the second quarter ended June 30, 2104, up 0.5 per cent from 1.567 billion ringgit (US$497.4 million) a year ago, boosted by growth in the group's net loans, advances and financing, mainly contributed from Islamic Banking operations.

It said on Thursday its revenue rose 1.98 per cent to 8.759 billion ringgit from 8.588 billion ringgit. Earnings per share were 17.47 sen compared with 18.23 sen. It rewarded shareholders with a dividend of 24 sen a share.

The group's net loss from insurance and takaful business increased by 47.2 million ringgit to 102.2 million ringgit mainly due to lower net earned premiums of 106.2 million ringgit.

However, this was mitigated by lower net benefits and claims and lower net fee and commission expenses of 34.3 million ringgit and 43.4 million ringgit respectively.

Maybank said non interest income decreased by 340.5 million ringgit or 20.0 per cnet mainly due to net foreign exchange loss of 78.7 million ringgit as compared to net forex gain of 407 million ringgit a year ago and lower gain on disposal of financial assets at financial assets at fair value through profit or loss (FVTPL) and financial investments available-for sale of 206.1 million ringgit.

The decrease was, however, mitigated by higher unrealised gain on revaluation of financial assets at FVTPL and derivatives of 334.8 million ringgit.

Maybank group president and CEO Abdul Farid Alias said the group saw encouraging signs of acceleration in loans and deposits growth in Q2, and beefed up its market share in retail deposits, consumer banking and Islamic banking.

“While we remain cautious of the regional operating environment in the second half, we see opportunities for sustained loan growth especially in the consumer, SME and corporate segments across our network.

“Together with an expected pickup in fee-based income as well as continued cost management efforts and initiatives to raise the bar in every areas of operations, we are confident that long-term prospects will be sustained,” he said.

In the first half, its earnings rose 3.4 per cent to 3.17 billion ringgit from 3.074 billion ringgit in the previous corresponding period. Its revenue rose 2.4 per cent to 17.116 billion ringgit from 16.705 billion ringgit.

Maybank said the group's net interest income and Islamic Banking income for the six-month increased by 323.6 million ringgit or 5.3 per cent to 6,417.9 million ringgit largely due to the 13.0 per cent year-on-year growth in the group's net loans, advances and financing, mainly contributed from Islamic Banking operations.

It said net loss from insurance and takaful business fell by 32.8 million ringgit to 100.4 million ringgit compared to a net loss from insurance and takaful business of 33.2 million ringgit.

The decrease was mainly due to lower net benefits and claims and lower net fee and commission expenses of 296.8 million ringgit and 56.7 million ringgit respectively. However, this was offset by lower net earned premiums of 310.9 million ringgit.

Non-interest income fell 472.6 million ringgit or 15.4 per cent to 2.597 billion ringgit.

The decrease was mainly due to lower gain on disposal of financial investments available-for-sale of 285.8 million ringgit, lower gain on disposal of financial assets at fair value through profit or loss (FVTPL) of 93.2 million ringgit and lower forex gain of 489.2 million ringgit.

The decrease was, however, mitigated by unrealised gain on revaluation of financial assets at FVTPL and derivatives of 198.5 million ringgit as compared to unrealised loss on revaluaon of financial assets at FVTPL and derivatives of 300.1 million ringgit.

Non-interest income fell 472.6 million ringgit or 15.4 per cent to 2.597 billion ringgit mainly due to lower gain on disposal of financial investments available-for-sale of 285.8 million ringgit,lower gain on disposal of financial assets at FVTPL of 93.2 million ringgit and lower forex gain of 489.2 million ringgit.

The decrease was, however, mitigated by unrealised gain on revaluation of financial assets at FVTPL and derivatives of 198.5 million ringgit as compared to unrealised loss of 300.1 million ringgit a year ago.

Maybank's allowance for impairment losses on loans, advances and financing decreased by 149.1 million ringgit to 364.5 million ringgit for the six-month financial period ended June 30, 2014.

The group had written back impairment losses on financial investments of 85.6 million ringgit for the six-month financial period ended June 30, 2014 due to recoveries from impaired loan stocks, compared to allowance made for impairment losses on financial investments of 6.4 million ringgit a year ago.

(1 ringgit = US$0.32)

 

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