KUALA LUMPUR: Malayan Banking Bhd (Maybank) group president and chief executive officer (CEO) Datuk Seri Abdul Farid Alias will step down from his position once his contract expires to pursue his own interests.

       In a filing with Bursa Malaysia, the bank said Abdul Farid, who has held the position as group president and CEO since Aug 2, 2013, indicated that he would not seek a renewal of his contract following the conclusion of his third term.

       The contract is set to expire on Aug 1, 2022.

       To ensure a smooth leadership transition, Maybank chairman Tan Sri Zamzamzairani Mohd Isa said Abdul Farid would continue to oversee the management and operations of Maybank until the successor assumes the position.

       “Although we are disappointed that Abdul Farid has decided not to renew his contract, the board respects his decision and on behalf of the group, I thank him for his remarkable contributions, service and commitment in building a forward looking organisation that has been ahead of many of its regional peers, especially on the digital and sustainability front,” he added.

       To ensure a smooth leadership transition, Maybank chairman Tan Sri Zamzamzairani Mohd Isa said Abdul Farid would continue to oversee the management and operations of Maybank until the successor assumes the position.

       Abdul Farid began his banking career in Aseambankers, a subsidiary in the Maybank Group in January 1992 before broadening his experience with Schroders, Malaysia International Merchant Bankers, JP Morgan and Khazanah Nasional Bhd.

       He re-joined Maybank in January 2009, holding several key business positions including as the head of international business and deputy president and head for global banking before his appointment as group president and CEO.

       Moving forward, Zamzamzairani said the process to identify a new group president and CEO is underway, which is led by the nomination and remuneration committee of the board.

       “The board is currently undertaking a robust review and assessment process to identify a suitable replacement for Abdul Farid, which includes assessing internal and external candidates.

       “The new appointee will be announced once we have submitted and obtained the necessary regulatory approvals for the appointment,” he added.

       In the nine months ended September 2021, Maybank registered a net profit of RM6.04bil, which represents a 22.16% year-on-year (y-o-y) increase from RM4.94bil a year earlier.

       Revenue, on the other hand, dropped by 10.53% y-o-y to RM34.7bil from RM38.79bil in the previous corresponding period.

       “The group recorded a net operating income of RM19.15bil, a 3.8% rise from a year earlier on the back of higher net fund-based income which rose by 15.5% y-o-y to RM14.22bil.

       “Net impairment losses decreased by 28.3% to RM2.56bil from RM3.57bil a year earlier, as the group benefitted from its earlier prudent stance in accelerating its forward looking assumption provisioning,” according to Maybank.

       As at Sept 30, Maybank’s total group gross loans grew 4% y-o-y, lifted mainly by increases of 11.3% and 2.2% in its Singapore and Malaysia operations, respectively, while the Indonesia operations saw a 9.9% decline.

       Meanwhile, its total deposits expanded 2.8%, primarily led by the 4.1% growth in Malaysia. However, this was mitigated by a decrease of 5.7% and 12.9% in Singapore and Indonesia, respectively.

       Asset quality improved as the group’s gross impaired loans (GIL) ratio declined to 1.93% in September 2021 from 2.35% in September 2020.

       “Maybank continued with its strategy to maintain robust capital and liquidity positions, with its CET1 capital ratio at 14.24%, and total capital ratio at 18.21% as at Sept 30, making it one of the best capitalised banks in the region.

       “The group’s liquidity coverage ratio stood at a healthy 138.1%, way above the regulatory requirement of 100%,” it said.