Digital Banking: Southeast Asia’s Maybank Indonesia Reports Financial Results

PT Bank Maybank Indonesia, Tbk. (Maybank Indonesia or the Bank) announced its Consolidated Financial Results ended 31 March 2023, “with Profit before Tax (PBT) increased by 33.3% to Rp750 billion from Rp562 billion last year.”

This was “derived from improved earning on its assets composition due to increase in loans as demands for corporate and retail loans increased in line with the improvement in the economy in Indonesia.”

The Bank also reveals that it “booked higher fee income primarily from the Global Markets (GM) transactions as markets regained its momentum, and subsidiaries’ strong performance as well as improved asset quality.”

Profit after Tax & Minority Interest (PATAMI) “rose significantly by 45.7% to Rp566 billion from Rp388 billion the year before.” This was “due to better earnings from the Bank’s improved assets composition which led to an increase in Net Interest Income (NII) by 6.7% Y-o-Y and Net Interest Margin (NIM) expanded by 35 bps to 5.1% Y-o-Y.”

The Bank further noted that it “booked significant rise in fee-based income by 20.7% to Rp574 billion from Rp475 billion last year deriving from higher Global Market fees, which grew 98.7% to Rp101 billion from Rp51 billion as the market regained its momentum.”

Asset recovery fees (Bank only) also “increased by more than 7 times to Rp142 billion as a result of the Bank’s intensive remedial efforts over the past year.”

As the market strengthened in the first quarter of 2023, the Bank was able “to book higher fee-based income of 30.6% Q-o-Q.”

In the first quarter of 2023, the Bank total outstanding loans “grew 7.7% to Rp107.22 trillion from Rp99.52 trillion as CFS Retail loans grew 14.6% to Rp40.10 trillion from Rp34.98 trillion, and Global Banking loans grew 11.4% to Rp39.29 trillion from Rp35.26 trillion last year.”

The Bank’s CFS Retail loans “grew across all segments, supported by the subsidiaries’ auto loans, which grew 26.1% to Rp20.54 trillion from Rp16.29 trillion, followed by credit card business & personal loans, which grew 20.6%, Y-o-Y and mortgage grew 2.2% Y-o-Y.”

Meanwhile CFS Non-Retail loans “declined by 5.0% to Rp27.83 trillion from Rp29.28 trillion as the Business Banking segment declined by 14.6%, while SME+ segment remained largely stable.”

The Bank’s Retail Small Medium Enterprises (RSME) segment “continued its momentum and grew 2.3% to Rp12.74 trillion from Rp12.46 trillion.”

The Bank’s total deposits “decreased by 2.2% to Rp103.61 trillion from Rp105.98 trillion as the Bank continued to implement its strategy to optimize low-cost funding by leveraging the Bank’s digital services to acquire customer deposits.”

The Bank’s Current Accounts “grew 19.6% to Rp32.54 trillion from Rp27.22 trillion and the CASA ratio improved to 51.9% in March 2023 from 47.1% in March 2022.”

However, Savings Account “dropped by 6.7% and Time Deposits reduced by 11.0% as the Bank continued to exit high cost funding.”

The improved of business climate in Indonesia “has led the Bank to continually step up its customers’ engagements, site visits and campaign initiatives.”

This resulted “in higher travelling, outsourcing and marketing costs, which increased by 2.4%.”

The Bank also “continues to invest in its human capital which resulted in an increase of 7.0% in personnel costs.” Overall there has been “an increase in overhead costs of 4.7% to Rp1.45 trillion.”

The rise in the Bank’s overhead costs however “remained under control, ensuring the costs incurred contributed to an increase in the Bank’s revenue.”

President Director Maybank Indonesia, Taswin Zakaria said:

“Maybank Indonesia started 2023 on a positive note, and our first quarter of the year delivered strong growth performance across our key business segments. Amidst global economic challenges, we saw consumer purchasing power and business activities slowly returning back to normal in Indonesia as indicated by our strong growth in the Bank’s retail, small-medium enterprise and the wholesale loan segments. From a liquidity perspective, customer deposits continued to rebalance, allowing Maybank Indonesia to manage its funding more efficiently and further strengthen our fundamentals. Moving forward, we will continue with our M25+ strategies covering the Bank’s transformation efforts to accelerate digital SME’s capabilities and our Islamic wealth proposition.”

President Commissioner Maybank Indonesia, Dato’ Khairussaleh Ramli said:

“For Maybank Indonesia, acceleration of digitalisation, enhancement in customer-centricity, focus on regionalisation, Islamic business growth and sustainability is expected to boost the performance of Maybank Indonesia. Maybank Indonesia features prominently in the M25+ transformation programme. Apart from Strategic Programme (SP) 7, which will ‘Uplift Indonesia’, most of the SPs will also directly provide business and operational improvements, as well as capability enhancements.”

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