MAYBANK’s net profit for the third quarter ended Sep 30, 2024, amounted to RM2.5 billion (S$770 million), up 7.6 per cent from RM2.4 billion in the previous corresponding period.
The group’s earnings per share for the quarter stood at 21.04 sen, up from 19.56 sen in the same period last year.
Profit before tax for the recorded period amounted to RM3.4 billion, up 7.8 per cent from RM3.2 billion previously.
Net operating income was up by 7.1 per cent on the year to RM7.2 billion, led by a 20.9 per cent increase in non-interest income and net fund based income.
For the nine-month period, the lender’s net profit rose 8.5 per cent on the year to RM7.6 billion. Profit before tax was up by 7.4 per cent on the year to RM10.3 billion
On Tuesday (Nov 26), the lender said the improved results came amid strong growth in non-interest income, driven by improved core fees and insurance performance.
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Net operating income for the nine-month period was up 8.7 per cent on the year to RM22.2 billion – buoyed by higher non-interest income of 26 per cent to RM7.5 billion compared to the previous year. Core fees for the nine-month period rose 13.4 per cent.
The lender’s net interest margin fell by 14 basis points (bps) in the first nine months of the year, mainly due to higher funding cost across the home markets, said Maybank.
By sector, the bank’s Islamic banking business recorded profit before tax of RM3 billion, up 7.1 per cent on the year. This came amid “solid increase” in total income by 17 per cent to RM6.4 billion, said Maybank.
Khairussaleh Ramli, president and group chief executive of Maybank, said the lender’s wealth management, bancassurance and global banking mid-market segments have contributed to its growth.
For the nine-month period, wealth management continued its upward momentum, with total financial assets rising 8.7 per cent on the year to RM497.6 billion – supported by growth in loans and investments.
Maybank’s global banking sector recorded a 7.7 per cent growth in profit before tax, driven by strong income growth. But the group noted that net fund-based income fell 9.6 per cent on the year due to higher funding costs amid global macroeconomic challenges.
Meanwhile, total mid-market loans for Malaysia and Singapore rose 35.5 per cent on the year to RM29 billion as at September this year.
The lender’s insurance business registered a 56.6 per cent year-on-year increase in profit before tax to RM1 billion for the nine-month period.
Overhead expenses grew 10.2 per cent to RM10.8 billion, mainly due to higher personnel costs, information technology expenses, administration and general costs, as well as marketing expenses.
Maybank’s net impairment provisions stood at RM1.3 billion, up from RM1.2 billion a year earlier. Net loan provisions fell by 10 per cent to RM1.2 billion, driven by higher recoveries.
The group noted that this resulted in a lower net credit charge off rate for loans of 26 bps from 31 bps the year before.
Looking ahead, the group said it will continue to leverage advanced digital capabilities, as well as improve customer relationships to drive growth.
