Maybank 4Q net profit RM1.15b, dividend 32c

KUALA LUMPUR: MALAYAN BANKING BHD []’s earnings rose 26.5% to RM1.15 billion in the fourth quarter ended June 30, 2011 from RM912.47 million a year ago.

It said on Monday, Aug 22 the financial performance was boosted by income from its Islamic banking and also its insurance business also also lower allowance for losses on loans, advances and financing

Its revenue increased by 20.9% to RM5.72 billion from RM4.73 billion. Earnings per share were 15.54 sen versus 12.89 sen a year ago.

Its board of directors proposed dividend of 32 sen per share compared with 44 sen a year ago.

For the FY ended June 30, 2011, its net profit rose 16.5% to RM4.45 billion from RM3.82 billion in FY10 while its revenue increased by 13.3% to RM21.04 billion from RM18.56 billion.

Its core capital ratio was 11.93% while its risk-weighted capital ratio was 15.45%.

Maybank said for FY ended June 30, 2011, all its business sectors reported growth in operating income.

The performance of Malaysia's Community Financial Services (CFS) and Global Wholesale Banking (GWB) were further boosted by significant reduction in loan loss and writeback.

The investment banking business undertaken by Maybank Investment Bank reported an annual income growth of 33.9% year-on-year, from significant increase in brokerage income and the number of significant merger and acquisition (M&A) transactions and capital raising activities.

PT Bank Internasional Indonesia (BII) continues to grow organically with significant expansion of loans growth at 24.9% and the increase in the number of branches from 276 as at June 30, 2010 to 344 as at June 30, 2011.

The group loans and debt securities grew RM55,290 million or 17.2%.

However net interest income for the financial year ended 30 June 2011 recorded a modest increase of RM415.0 million or 6.1%.

This is largely due to the narrowing in net interest margin as a result of competition for assets and deposits in all key markets, as well as the implementation of Financial Reporting Standards139.

Income from Islamic Banking operations continued to grow, increasing by RM127.1 million or 8.9% to RM1.561.9 million.

The Islamic Banking financing and advances constitute 28.1% of total domestic financing and advances in Malaysia as at 30 June 2011, compared with 24.3% a year ago.

Net income from insurance business for the financial year ended 30 June 2011 increased by RM132.4million or 31.1% to RM557.3 million due to higher transfer of actuarial surplus from insurance and takaful revenue account, and also the significant improvement in the takaful businesses.