Maybank Indonesia profits more than double in H1

Malayan Banking Bhd’s (Maybank) unit in Indonesia saw its profits more than double in the first half of the year, helped by the turnaround of its corporate banking business and net interest margin (NIM). (thestar.com.my)

Profit after tax and minority interests at PT Bank Maybank Indonesia Tbk jumped 121.2% to 858 billion rupiah or RM265.5mil for the six months ended June 30 from a year ago. Its corporate portfolio showed an increase of 7.2% in the first six months of 2016, the bank said in a statement yesterday.

“We are poised to see further growth in global banking, going forward,” said Maybank Indonesia president director Taswin Zakaria in the statement. The bank’s fee-based income increased by 36.6% from 1.1 trillion rupiah in June 2015 to 1.5 trillion rupiah in June 2016. The increase in fee-based income was achieved from treasury-related fees, the bank’s bancassurance fees, retail administration and other services provided by the bank. The bank’s consumer banking business, grouped under its community financial services segment, continues to generate the bulk of its business income.

Maybank Indonesia reported a 16.1% increase in its net interest income to 3.6 trillion rupiah in June 2016 from 3.1 trillion rupiah in the previous corresponding period. The bank also saw improvement in its NIM from 4.73% in June 2015 to 5.01% in June 2016. Syariah banking maintained its outstanding performance in the first half of the year. Its total financing rose 46.3% from 7.4 trillion rupiah in June 2015 to 10.8 trillion rupiah in June 2016, while its total deposits grew 86.6% from 5.1 trillion rupiah to 9.6 trillion rupiah. Its net profit also increased by 83.6% to 196 billion rupiah in June 2016 from 107 billion rupiah in June 2015.

Syariah banking’s total assets increased by 76.1% to 17 trillion rupiah, contributing 10.5% of the bank’s total assets. The bank recorded a loans growth of 8.3% in the first half of 2016 from 108.5 trillion rupiah in June 2015 to 117.5 trillion rupiah in June 2016. “Despite the current market uncertainties, we continued to record commendable results for the first six months of 2016. The strong performance for the first half 2016 is testimony to the tremendous efforts made by our entire team to pursue sustainable and profitable growth.

“We maintain our view of a continued challenging market condition for the remaining year, and will remain selective in growing our portfolio while exercising pricing discipline for both loan and liquidity to support our business growth responsibly,” the bank said.