KUALA LUMPUR: After two years of challenging times, Maybank Indonesia sees positive trend in the bank's profit in the first quarter (Q1) of 2022, backed by its strong effort in managing costs across the business and growth in fees as well as in its retail loan segment.
President director of Maybank Indonesia Taswin Zakaria said the bank started the year with a promising outlook and will continue implementing its strategies and initiatives to enhance its loan growth and expand its customer base through acquisition, which will strengthen the bank’s fundamentals.
"Our comprehensive financial solutions, including our digital banking services will ensure that we fulfil the demands of our customers and society in line with the bank's mission of humanising financial services.
"This year, we will also continue to focus with our digital transformation efforts and pave our way to a
sustainable business, by leveraging our growing digital platforms and integrating all aspects of the
bank's services to fulfil the need of our wide range of customers,” he said in a statement in conjunction with the announcement of the bank's consolidated financial highlights as of March 31, 2022.
Maybank Indonesia's profit before tax (PBT) during Q1 ended March 31, 2022 rose 12.1 per cent to 562 billion rupiah from 501 billion rupiah (1 million rupiah = RM301) a year ago, backed by lower provisions and cost of funds, well-contained overheads cost as well as strong growth in fee based income resulting from global market transactions and fee income from subsidiaries.
Net Interest Income (NIM) increased by 45 basis points to 4.8 per cent in 1Q 2022, backed by lower cost of funds and healthy growth of current account and savings account (CASA), which rose 4.1 per cent to 49.95 trillion rupiah, and CASA ratio increased to 47.1 per cent from 41.0 per cent.
The bank's fee-based income increased by 4.9 per cent to 475 billion rupiah from 453 billion rupiah last year, contributed primarily by a significant rise in global market transaction fees by 46.0 per cent to 51 billion rupiah from 35 billion rupiah, and fee income from subsidiaries.
Consolidated non-performing loans (NPL) ratio stood at 3.9 per cent (gross) and 2.8 per cent (net) as of March 2022 supported by lower NPL balances, which declined by 6.8 per cent.
Its liquidity remained strong, with loan to deposit ratio (LDR bank only) at a healthy level of 82.0 per cent, while its liquidity coverage ratio (LCR bank only) stood at 190.4 per cent in March 2022, exceeding the regulator's minimum level of 100 per cent.
Meanwhile, Maybank Indonesia Shariah Banking Unit’s operating profit before provision fell by 6.6 per cent to 170 billion rupiah due to a drop in financing and its PBT fell by 51 per cent to 85 billion rupiah, due to an increase in provisions.
Total assets grew by 6.8 per cent to 38.33 trillion rupiah from 35.88 trillion rupiah, accounting for 24 per cent of the bank's total consolidated assets.
However, shariah financing assets experienced a drop of 2.9 per cent to 24.56 trillion rupiah from 25.29 trillion rupiah.
During Q1 2022, the bank's digital banking saw financial transactions from retail customers using M2U increased 14.3 per cent to 4.1 million transactions, while transactions from corporate customers using M2E grew by 91.1 per cent to over one million transactions. - Bernama