Maybank Indonesia’s consolidated financial results, which ended 31 March, recorded a profit before tax (PBT) of Rp 750 billion (US$50.33 million), which rose 33.3 percent from Rp 562 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 booked higher fee income primarily from global market (GM) transactions as markets regained their momentum, its subsidiaries’ strong performance as well as improved asset quality.

Profit after tax and minority interest (PATAMI) increased significantly by 45.7 percent to Rp 566 billion from Rp 388 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 percent year-on-year (yoy) and its net interest margin (NIM) expanded by 35 basis points (bps) to 5.1 percent yoy.

The bank booked a significant 20.7 percent rise in fee-based income to Rp 574 billion from Rp 475 billion last year deriving from higher GM fees, which grew 98.7 percent to Rp 101 billion from Rp 51 billion as the market regained momentum. Asset recovery fees (bank only) also increased to Rp 142 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, Maybank was able to book higher fee-based income of 30.6 percent quarter-to-quarter (qtq).

In the first quarter of 2023, Maybank’s total outstanding loans grew 7.7 percent to Rp 107.22 trillion from Rp 99.52 trillion as community financial services (CFS) retail loans grew 14.6 percent to Rp 40.10 trillion from Rp 34.98 trillion, and global banking loans grew 11.4 percent to Rp 39.29 trillion from Rp 35.26 trillion last year.

The bank's CFS Retail loans grew across all segments, supported by subsidiaries' auto loans, which grew 26.1 percent to Rp 20.54 trillion from Rp 16.29 trillion, followed by credit card business and personal loans, which grew 20.6 percent yoy and mortgage by 2.2 percent yoy.

Meanwhile CFS nonretail loans booked lower by 5 percent to Rp 27.83 trillion from Rp 29.28 trillion as the business banking segment declined by 14.6 percent, while the small and medium enterprises plus (SME+) segment remained largely stable. Maybank’s retail small medium enterprises (RSME) segment continued its momentum, growing 2.3 percent to Rp 12.74 trillion from Rp 12.46 trillion.

Maybank’s total deposits decreased by 2.2 percent to Rp 103.61 trillion from Rp 105.98 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. Maybank’s current accounts grew 19.6 percent to Rp 32.54 trillion from Rp 27.22

trillion and the current account savings account (CASA) ratio improved to 51.9 percent in March 2023 from 47.1 percent in March 2022. However, time deposits reduced by 11 percent and savings accounts dropped by 6.7 percent as the bank continue to exit high-cost funding.

The resumption of business activities in Indonesia has led Maybank to step up its customers’ engagements, site visits and campaign initiatives. This has resulted in higher traveling, outsourcing and marketing costs, which increased by 2.4 percent. The bank also continues to invest in its human capital, which has resulted in an increase of 7 percent in personnel costs. Overall, there has been an increase in overhead costs of 4.7 percent to Rp 1.45 trillion. The rise in the bank’s overhead costs, however, emained under control, ensuring the costs incurred contributed to an increase in the bank’s revenue.

Following the resumption of the overall economy has also led business activities to continuously improve in the first quarter of 2023, which resulted in lower provisions by 16.9 percent as asset quality improved. The non-performing loans (NPL) balance decreased by 8.8 percent yoy and the loans at risk ratio (LAR Bank only) improved to 12.1 percent in March from 17.5 percent in March 2022.

Maybank's consolidated NPL ratio improved to 3.4 percent (gross) and 2.3 percent (net) in March from 3.9 percent (gross) and 2.8 percent (net) in March 2022.

The loan to deposit (LDR) ratio (bank only) was at a healthy level of 88.2 percent in March 2023 from 82 percent in March 2022, and the liquidity coverage ratio (LCR) (bank only) was at 174.2 percent in March 2023, exceeding regulator's minimum level of 100 percent.

The Bank's capital adequacy ratio (CAR) remained strong at 29.1 percent in March, with total capital of Rp 28.85 trillion at the end of March.

Shariah Banking Unit

Maybank Indonesia Shariah Banking Unit's operating profit before provision rose 32 percent to Rp 225 billion due to a significant drop in provisions as its asset quality improved. Maybank Indonesia Shariah Banking Unit also recorded a significant increase in profit before tax by 178.4 percent to Rp 236 billion.

The Shariah Banking Unit’s total assets grew 3.3 percent to Rp 39.61 trillion from Rp 38.33 trillion, contributing to the bank’s total standalone assets by 26.4 percent, and financing grew slightly by 0.7 percent to Rp 24.74 trillion from Rp 24.56 trillion with more growth focus on SME and retail financing.

Maybank Indonesia continued to implement its “Shariah First” strategy and the Leverage Model, which played strategic roles in increasing the Shariah Banking Unit’s businesses. In tandem, the bank also continued with the strategy to maintain strong liquidity by optimizing low-cost funding, resulting in the Unit’s CASA to grow 30.4 percent to Rp 15.33 trillion from Rp 11.76 trillion last year with the Shariah Banking Unit's CASA ratio improved to 49.4 percent from 40.6 percent.

Non-performing financing (NPF) ratios improved to 2.7 percent (gross) and 2.1 percent (net) in March 2023, from 4 percent (gross) and 2.7 percent (net) in March 2022. The financing-to-deposit ratio (FDR) stood at a healthy level of 77.3 percent.

Growth in digital platform

The bank's digital banking platform for retail customers M2U, registered an increase in transactions by 16.1 percent to around 4.8 million transactions in the first quarter of 2023 from more than 4.1 million transactions last year. The transaction value also grew by 22.1 percent to Rp 26.77 trillion from Rp 21.93 trillion last year followed by more than 200 percent increase in the number of customer on-boarded through M2U.

The significant growth in transactions and customer acquisitions via M2U have contributed to an increase in Maybank’s digital retail funding by 23.1 percent to Rp 6.39 trillion.

Meanwhile, the bank’s digital banking platform for corporate customers M2E, registered an increase in transactions of 4.6 percent to more than 1 million transactions in the first quarter of 2023. The total transactions value made through M2E was at Rp 181.92 trillion, grew 1.4 percent from Rp 179.42 trillion last year. The growth in customers’ acquisition and the total banking transactions made through M2E have contributed to an increase in the bank’s corporate funding by 13.5 percent to Rp 25.95 trillion.

In the first quarter of 2023, Maybank Indonesia introduced an online investment feature enabling customers to purchase conventional government bonds through the M2U App. This feature will enrich the Digital Wealth solution embedded in the Bank’s M2U App where customers can undertake mutual fund transactions, access their 360 portfolio view, set up a goal-based investment and expense tracker, among other features.

Maybank Indonesia won international recognition for the bank's innovative digital banking services, with the Excellence in Mobile Banking award at the Asia Trailblazer Awards 2023, organized by Retail Banker International in March.

The award signified Maybank Indonesia’s commitment to offering innovative digital solutions that simplify its customers’ banking transactions with enhanced banking experiences. Maybank Indonesia received the award after contesting against 25 consumer finance and retail banking companies in Asia.

Similarly, the bank’s corporate customer platform, M2E, introduced local currency settlement for transactions using the Malaysian Ringgit (MYR), China Yuan (CNY) and Thai Baht (THB) currencies.

In the first quarter of 2023, Maybank Indonesia also won second rank on the Satisfaction, Loyalty, & Engagement Awards 2023 held by Marketing Research Indonesia (MRI) and Infobank Magazine.

President director of Maybank Indonesia, Taswin Zakaria, said, "Maybank Indonesia started 2023 on an optimistic note, and our first quarter of the year delivered strong growth performance across our key business segments.”

“Amid global economic challenges, we saw consumer purchasing power and business activities slowly return 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,” Taswin concluded.

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