Malaysia: Banking Platform Maybank Reports Substantial Net Profit for FY2022

Maybank, Southeast Asia’s fourth largest bank by assets, reported “a net profit of RM8.23 billion for the financial year ended 31 December 2022 (FY22).”

Profit before tax (PBT) meanwhile, “was 11.6% higher at RM12.15 billion from RM10.89 billion a year earlier.” The better results were “driven by improving regional economic activities that supported the Group’s higher operating income as well as lower net impairment losses.”

Net operating income “grew to a strong RM27.62 billion, which was achieved on the back of an 8.4% Y-o-Y increase in total net fund based income to RM20.69 billion as a result of stronger loans growth in its Malaysia and Indonesia markets, of 6.7% and 5.8% respectively as well as an expansion in net interest margin (NIM) of 7 bps on higher interest rates.”

Non-interest income (NOII) “was 9.0% higher at RM6.93 billion mainly from mark-to-market gains on financial liabilities and foreign exchange gains.”

Operating cost, meanwhile, “was higher at RM12.81 billion compared with RM11.52 billion a year earlier on normalizing of business activities as well as collective agreement adjustments and one-off credit card gift points redemption cost.”

Notwithstanding this, “pre-provisioning operating profit came in higher by 6.3% Y-o-Y, hitting a new high of RM14.81 billion.” Net impairment losses “reduced by 13.7% to RM2.79 billion mainly driven by a 17.6% reduction in net loan provision to RM2.19 billion.”

For the fourth quarter (4QFY22), the Group recorded “a 21.6% rise in PBT to RM3.31 billion compared to the same period in the previous year, benefitting from the pick-up in regional economies during the period.”

Net profit meanwhile, “rose to a healthy 5.4% Y-o-Y to RM2.17 billion.”

Maybank Chairman, Tan Sri Dato’ Sri Zamzamzairani Mohd Isa said that 2022 was indeed “a challenging year albeit the Group made further progress in growing its customer base profitably, while maintaining commendable overall growth evident in the improvement in its fourth quarter results.”

“We remain focused on delivering the best customer experience while at the same time fulfilling our ambitions by building trusted and meaningful relationships with our stakeholders. We want to continue to create a viable future for all, by embedding sound sustainability practices across all our operations to drive positive change underpinned by our mission of Humanising Financial Services.”

Meanwhile, Group President and CEO of Maybank, Dato’ Khairussaleh Ramli said that the commendable growth in its top line “reflects the strength and resilience that Maybank has developed in recent years coupled with the competitive advantage gained from its regional presence, diversification and focus on customer experience.”

“The execution of the strategic programmes (SPs) of our M25+ strategy to continue sustainable growth and build capabilities across people and technology. At the same time we will double down on existing businesses and boost asset quality to deliver improved performance and fund our journey. The implementation of M25+ SPs will anchor on the five key strategic thrusts mainly intensifying customer centricity, accelerating digitalisation and technological modernisation, strengthening Maybank’s business presence across the region, driving our leadership position in the sustainability agenda and claiming our global leadership in Islamic Banking.”

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