Highlight Maybank 2Q net profit higher at RM1.58b, pays 24 sen dividend

by **Cals** Thu 28 Aug 2014, 18:11

Highlight Maybank 2Q net profit higher at RM1.58b, pays 24 sen dividend

Business & Markets 2014

Written by Adrian Wong of theedgemalaysia.com

Thursday, 28 August 2014 14:22

KUALA LUMPUR (Aug 28): Malayan Banking Bhd (Maybank) reported a 0.5% increase in second quarter net profit from a year earlier, helped by higher net interest and Islamic banking income. Lower allowance for bad loans, and smaller minority interest had also supported profit growth.

In a filing to Bursa Malaysia today, Maybank said net profit rose to RM1.58 billion in the second quarter ended June 30, 2014 (2QFY14) from RM1.57 billion. Revenue rose to RM8.76 billion from RM8.59 billion.

"The group’s net interest income and Islamic banking income for the quarter ended 30 June 2014
increased by RM169.0 million or 5.5% compared to the previous period corresponding quarter ended 30 June 2013.

"This was largely due to the growth in the group's net loans, advances and financing, mainly contributed from Islamic banking operation," Maybank said.

Net allowance for bad loans was significantly lower at RM154.35 million versus RM427.61 million a year earlier, Maybank's income statement showed.

Higher losses at Maybank's insurance unit had, however, curbed profit growth. Net loss from the division came to RM102.21 million compared to a net loss of RM55.05 million.

For 2QFY14, Maybank proposed a a single-tier interim dividend of 24 sen a share.

Maybank's cumulative first half (1HFY14) net profit was higher at RM3.18 billion versus RM3.07 billion in the corresponding period last year. Revenue rose to RM17.12 billion from RM16.71 billion.

Maybank said 1HFY14 revenue growth was due to a 13% growth in net loans.

Total net interest and Islamic banking income for the six months increased 5.3% to RM6.42 billion, it said.