Maybank Indonesia Records Substantial Profit, Reports Steady Growth of Digital Banking Business

Maybank Indonesia announced its Consolidated Financial Results for nine months ended 30 September 2022, “with Profit before Tax (PBT) of Rp1.48 trillion and Profit after Tax and Minority Interest (PATAMI) of Rp1.06 trillion.”

The Bank’s PBT and PATAMI “remained comparatively stable to last year’s results.” Despite a growth in loans, interest income “was lower due to lower loan yields, which were impacted by the tight competition for loans.”

However the Bank also “booked lower provisions as loan quality and cost of funds improved, and well-contained overheads.”

The Bank’s Net Interest Margin (NIM) “grew slightly by 2 bps to 4.8% in September 2022 due to lower cost of funds.”

The Bank “registered fee-based income, excluding Global Market fees of Rp1.23 trillion, which was attributed to loan and retail business-related fees and fees from subsidiaries.” However, the Bank’s Global Market fees “declined 63.7% due to the global interest rate environment and volatile markets, resulting in a decrease of total fee income by 10.4% Y-o-Y.”

Trade and business activities “continued to project upward trends in nine months of 2022, followed by increasing loan demand, especially for large scale enterprises and corporate entities, as well as retail loans as public consumption improved.”

These external factors “were reflected in significant increase in the Bank’s total outstanding loans, which grew 12.8% to Rp111.45 trillion from Rp98.78 trillion last year.”

The Bank’s Global Banking segment “grew exponentially by 25.0% to Rp45.63 trillion from Rp36.50 trillion in the same period last year supporting various projects and business expansions ranging from infrastructures, manufacturing and global trading.”

Meanwhile, the Bank’s Community Financial Services (CFS) loan segment “comprising of Retail and Non-retail loan segments grew 5.7% to Rp65.81 trillion from Rp62.29 trillion in the same period last year.”

Non-retail loan specifically for retail small and medium enterprises (RSME) “grew 5.7% to Rp12.76 trillion from Rp12.07 trillion.” In the larger loan segment, loans for Small and Medium Enterprises (classified by the Bank as SME+) “grew 1.3% to Rp5.08 trillion from Rp5.01 trillion due to resumption of business and market activities.”

The Bank “continued its efforts to rebalance its non-retail loan portfolio segment by focusing on loan disbursements to smaller segments, to ensure effective use of loans to support clients’ business continuity.”

Accordingly, the Business Banking loans portfolio “experienced a decrease of 14.9% which resulted in a decline of 3.6% Y-o-Y of the overall balance of the CFS Non-retail loan segment.”

The Bank’s total customer deposits “grew 5.0% to Rp107.00 trillion from Rp101.88 trillion in the same period last year.”

The Bank’s liquidity “remains strong with Loan to Deposit (LDR) ratio (Bank only) at a healthy level of 90.2%, while its Liquidity Coverage (LCR) ratio (Bank only) stood at 176.9% in September 2022, exceeding the regulator’s minimum level of 100%.”

The Bank’s digital banking platform for retail customers, M2U, “registered an increase in transactions of 24.8% to approximately 13.1 million in nine months of 2022, from more than 10.5 million transactions last year.”

The M2U transaction value “grew 28.8% to Rp71.05 trillion from Rp55.16 trillion last year, followed by more than 1000% growth in new customer acquisitions through the digital platform.”

Meanwhile, the Bank’s digital banking platform for corporate customers, M2E, “registered an increase in transactions of 32.2% to more than 3.1 million from 2.4 million transactions last year, with a total value of financial transactions on M2E at Rp528.15 trillion in nine months of 2022, grew 34.9% from Rp391.44 trillion in the same period last year.”

In the third quarter of 2022, the Bank “introduced various new features in M2U, including real-time BI FAST transfer and credit card add-on features, such as converting credit card transactions into installments and to increase credit card limits, all from the convenience of its mobile banking App.”

Maybank Indonesia Shariah Banking Unit’s operating profit “before provision increased 16.2% to Rp620 billion as financing grew 12.8% to Rp27.98 trillion from Rp24.81 trillion, and lower cost of funds as CASA grew significantly.”

Total Shariah Banking Unit’s assets “grew 7.0% to Rp39.67 trillion from Rp37.06 trillion, contributing to the Bank’s total individual assets by 25.7%.”

President Director Maybank Indonesia, Taswin Zakaria, said Maybank Indonesia “continued to deliver strong performance reflected in the Bank’s Profit before Tax and robust loan growth as the market in Indonesia continued to improve in nine months of 2022, despite being impacted by global market volatility.”

“During the period, Maybank Indonesia focused on our growth strategies, which has contributed to the Bank’s profitability. We will remain disciplined in maintaining our liquidity and capital, while at the same time continue with our efforts to drive business growth by strengthening our productivity across the Bank’s key business segments, and our digital transformation to increase our operational and business agility, enabling us to navigate the challenges and opportunities ahead.”

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