Maybank Indonesia reports 73% jump in 1Q16 net profit

Maybank Indonesia - 1Q16 profit of IDR 444bn ($34m), up 73% YoY, due to improved net interest income, better growth in fee based income, continuing cost management efforts and success in sharia banking.

KUALA LUMPUR (April 26): PT Bank Maybank Indonesia Tbk said its profit after tax and minority interests (PATAMI) increased 73.44% to IDR444 billion (RM13.21 billion) for the first quarter ended March 31, 2016 (1QFY16) from IDR256 billion (RM7.62 billion) in 1QFY15.

The higher profit for the Indonesian outfit of Malayan Banking Bhd (Maybank) was contributed by improved net interest income, better growth in fee based income, continuous cost management efforts and outstanding achievement in sharia banking, the bank said in a statement.

Maybank Indonesia president director Taswin Zakaria said the bank has started the new financial year with promising results in the midst of challenging market conditions, and it expects to see further growth and improvement in its performance for the financial year 2016.

"Business Banking and Retail Banking continued to show sound performance and remain our key revenue drivers.

"To expedite business growth and outpace the competition, we have taken the strategic decision to merge business banking and retail banking into one integrated directorate called community financial services.

"We expect this new structure will further boost our growth and market share while providing holistic financial solutions to our customers," he said.

Maybank Group chairman Tan Sri Megat Zaharuddin bin Megat Mohd Nor said the bank's earlier re-branding exercise coupled with the setting up of its community financial services should further strengthen the Maybank Indonesia's presence in its communities.

"Market-focused initiatives will now be better coordinated across our branch and online networks, leveraging on the Maybank Group synergies to continuously offer value creating products and services to our customers," he added.

Maybank said net interest income rose 8.8% to IDR1.73 trillion (RM51.47 billion) as at March 31 from IDR1.59 trillion (RM47.3 billion) a year ago, driven by the bank's discipline in loan pricing and active funding management.

The bank's net interest margin remained stable at 4.8% while fee based income increased 10.7% to IDR687 billion (RM20.44 billion) from treasury related fees, bancassurance fees, loan and retail administration and other services provided by the bank.

Loan to deposit ratio remained at a healthy 87.6% while cost to income ratio improved to 59.8% from 65.8% on the back of reduction in overhead costs.

Total loans grew 4.8% from to IDR112.9 trillion (RM3.36 trillion) in 1QFY16 from IDR107.6 trillion (RM3.2 trillion) in 1QFY15.

Total deposits, meanwhile, increased 9.3% to IDR114.8 trillion (RM3.41 trillion) from IDR105 trillion (RM3.12 trillion).

Maybank Indonesia said its consolidated non-performing loans (NPL) level was at 3.7% (gross) and 2.5% (net) as at March 31 compared to 2.8% (gross) and 1.9% (net) in the previous corresponding period.