Highlight Maybank 3Q profit rises 17% to RM1.8b

by **Cals** Thu 21 Nov 2013, 18:08

Highlight Maybank 3Q profit rises 17% to RM1.8b

Business & Markets 2013

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 21 November 2013 14:30

KUALA LUMPUR (Nov 21): Malayan Banking Bhd (Maybank) reported a 17% rise in third quarter net profit from a year earlier. Profit had risen on higher interest and non-interest income, besides a better performance at its insurance, and Islamic banking units.

In a statement to the bourse today, Maybank said net profit rose to RM1.75 billion in the third quarter ended September 30, 2013 from RM1.5 billion. Revenue climbed to RM8.39 billion from RM8.01 billion.

Maybank said net-interest income and Islamic banking income had increase on "growth in (the) group's net loans and advances (including Islamic finance)."

Non-interest income rose on "higher net foreign exchange gain of RM830.1 million and higher fee income of RM99.1 million," Maybank said.

Higher allowance for bad loans had however curbed profit growth. During the quarter, the allowance rose to RM280.33 million from RM76.59 million, Maybank's income statement shows.

According to the group, allowance for bad loans had increased due to "higher collective allowance made for the quarter ended 30 September 2013."

Meanwhile, Maybank's cumulative nine-month (9MFY13) net profit increased to RM4.82 billion from RM4.29 billion a year earlier. Revenue was higher at RM25.3 billion versus RM23.8 billion.

Maybank said it posted an annualised gross loan growth of 9.3% in 9MFY13.

Looking ahead, it said 4QFY13 loan growth is expected to track industry figures.

Loan growth is seen coming from its Malaysian and regional markets. Maybank said non-interest income from commercial banking, Islamic financial services, and insurance are also expected to sustain business momentum.

"Barring any unforeseen circumstances, the group expects its financial performance for the financial year ending 31 December 2013 to be in line with the ROE target of 15.0%," Maybank said.