By Ying Xian Wong
The net profit of Malayan Banking Bhd. in the second quarter fell 5.4% due to lower operating profit and higher general expenses, it said Thursday.
The Malaysian banking group said in a stock exchange filing that net profit fell to 1.86 billion ringgit ($414.7 million) from MYR 1.96 billion a year ago. Revenue fell to MYR 11.2 billion from MYR 11.34 billion.
Net interest income and Islamic banking income for the quarter increased by 6.2% to MYR 5.29 billion, while net insurance premiums earned in its insurance subsidiaries and Takaful increased by 4.7% to reach MYR 2.27 billion.
Maybank’s other operating income decreased from MYR 783.2 million to MYR 366.9 million for the quarter due to fair value losses.
General expenses increased by 4.6% due to higher personnel costs, establishment costs as well as administrative and general expenses. Impairment provisions for loans, advances, financing and other payables for the quarter increased by 60% to MYR 837.5 million.
For the first six months of the year, revenue fell to MYR 23.12 billion from MYR 23.56 billion in the same period last year, while net profit was MYR 3.90 billion against MYR 4.35 billion.
Amid rising interest rates, Maybank said it would selectively increase its loan book in key markets while defending its low-cost deposit base.
“The group will also leverage its vast digital ecosystem and the strength of its franchises to deepen market penetration and seize growth opportunities,” he said.
Maybank said it would also focus on promoting greater financial inclusion, providing more sustainable financing and supporting the transition to a low-carbon economy.
The bank kept its return on equity target at 9.5%-10% for 2022, taking into account the impact of the single welfare tax.
Write to Ying Xian Wong at [email protected]
(END) Dow Jones Newswire
August 25, 2022 02:36 ET (06:36 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.