Business

Thursday May 15, 2008

Maybank Q3 net profit at RM758.6mil


KUALA LUMPUR: Malayan Banking Bhd (Maybank) yesterday posted a flat third quarter ended March 31 as its financial performance was hampered by the weak capital market.

The country's largest bank by assets said its stagnant profit was due to unrealised mark to market loss of securities and derivatives, and net of writeback of impairment losses in securities amounting to RM353.4mil compared with RM90.4mil in the previous corresponding period.

"Nevertheless, domestic and business spending is expected to remain resilient"- DATUK SERI ABDUL WAHID OMAR

Maybank was, however, pleased with its growth in consumer banking, insurance and international operations, as well as lower loan loss provisions during the period.

Maybank announced a net profit of RM758.6mil, or 15.52 sen a share, during the quarter compared with RM764.6mil, or 15.8 sen a share, in the previous corresponding period.

Revenue dropped to RM3.74bil from RM4bil previously while pre-tax profit dipped marginally to RM1.02bil from RM1.03bil.

In a filing with Bursa Malaysia, the bank said its focus on improving asset quality as one of its operational strategies to enhance bottomline growth resulted in a lower provision for loan loss of RM451.9mil compared with RM647.7milpreviously.

Its net non-performing loans ratio improved to 2.43% from 3.56%.

For the nine months to March 31, Maybank announced a net profit of RM2.22bil, or 45.67 sen a share, compared with RM2.13bil, or 44.33 sen a share, in the previous corresponding period.

According to a poll of 25 analysts on Bloomberg, the forecast net profit for Maybank for its financial year ending June 30, 2008 is RM3.35bil.

Group pre-tax profit for the nine months increased by 1.2% or RM34.9mil to RM3.07bil compared with RM3.03bil in the previous corresponding period.

Maybank said consumer banking revenue for the nine months was up 13.1% to RM2.96bil, insurance rose 3.1% to RM532.6mil and international operations up 12.6% to RM1.08bil.

Commenting on the group’s international operations, Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar in a statement said its higher revenue translated into a 32.6% rise in pre-tax profit.

“The contribution from our international operations in terms of pre-tax profit to the group continues to grow, reaching 18.7% in March 2008 compared with 15.6% in March 2007. This is a result of our strategy to steadily expand this area of business and tap on the significant growth potential in the region,” he said.

On its outlook, Maybank said the prospects of a slowing US economy that threatened to slide into recession presented a downside risk to Malaysia’s external sector, especially in curbing manufacturing exports growth.

“Nevertheless, domestic and business spending is expected to remain resilient, upheld by sturdy consumer spending, despite some risk of inflationary pressures.

“However, overall, the slightly restrained economic performance would still provide sustained growth in interest income and recurring non-interest income. The group is confident of sustaining the current performance for this financial year,'' it said.


MAYBANK : [Stock Watch] [News]

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