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Maybank Indonesia's first half financial results show promise for future
PT Bank Maybank Indonesia announced its consolidated financial results for the first half of the year, ending in June 2023.
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T Bank Maybank Indonesia announced its consolidated financial results for the first half of the year, ending in June 2023. They revealed that their profit before tax (PBT) reached Rp 1.27 trillion, which is an increase of 34.1 percent from Rp 944 billion last year, while profit after tax and minority interest (PATAMI) increased significantly by 44.7 percent to Rp 960 billion, from Rp 663 billion last year.
With the recovery of the Indonesian economy in the first half of the year, the bank was able to book higher earnings from its loan portfolio and significantly increase its fee-based income as treasury-related transactions, parallel to the growth of the economy. President director of Maybank Indonesia Taswin Zakaria said that Maybank Indonesia registered another positive performance in the first half of 2023.
"Indonesia’s economy continues to gain recovery momentum with business activities resuming their normal pace. The economic recovery has provided a boost to consumer spending power and propelled the growth in the bank’s retail loan portfolio. Our SME loan portfolio also benefited from growth in the goods and services value chain. In the first half of 2023, the bank also saw improvement in the volume and income from our treasury business as the market stabilized from the start of the year," said Taswin.
The bank recorded a continual decrease in provisions following improvements in asset quality and well-managed overhead costs, which collectively contributed to an increase in the PBT and PATAMI. In the first half of 2023, Maybank’s total outstanding loans recorded an increase of 2.9 percent to Rp 109.97 trillion, compared with Rp 106.81 in the previous year.
The bank’s net interest income (NII) increased by 6.7 percent, supported by the expansion of net interest margin (NIM) by 41 bps to 5.1 percent, attributed to an increase in loans, improved earning assets composition and higher yields. The CFS retail and non-retail loans grew also grew by 7.2 percent, due to significant growth in CFS retail loans that increased 15.4 percent, backed by subsidiaries’ two-wheel and four-wheel auto loans, which grew 25.8 and 28 percent, respectively, followed by 21.8 percent growth in credit card business and personal loans and mortgages by 1.8 percent.
The first half of the year also saw the bank’s CFS non-retail loans decrease by 2.9 percent as the business banking segment eased by 6.8 percent, followed by a 4 percent decline in the small-medium enterprise loans segment. The business banking segment, however, managed to book a growth of 2.7 percent quarter-on-quarter (QoQ) as new commitments with clients have started to pick up due to competitive pricing offers. With a new approach to loan disbursement, the bank is shifting its usual conservative approach to ensure long-term commitment with its clientele.
The retail small-medium enterprise (RSME) loan segment continued its growth momentum, and grew 1.3 percent to Rp 12.70 trillion, following the segment’s retention programs. From the corporate lending perspective, the global banking loan segment decreased by 3.7 percent to Rp 40.55 trillion. However, the segment booked positive growth of 3.2 percent QoQ, as Maybank seeks to maintain the growth momentum into the upcoming quarters.
Total customer deposits reached Rp 110.38 trillion, which is a decrease of 1.1 percent from Rp 111.66 trillion, due to a drop in the bank’s current and savings accounts (CASA) by 2.7 percent. Meanwhile, time deposits increased by 0.4 percent and grew significantly by 13.8 percent QoQ as customers seek to divest funds in higher earning deposits.
The continued oversight, monitoring and control of credit as well as better business climate has contributed to the improved asset quality. The bank's consolidated non-performing loan (NPL) ratio improved to 3.3 percent for gross value and 2.2 percent net value in June 2023, compared with the previous year. Maybank’s capital adequacy ratio (CAR) remained strong at 28.6 percent in June 2023, with total capital of Rp 29.27 trillion at the end of the first half of 2023.
"We continue to make progress with our transformation efforts under the M25+ strategy, which aims to improve our business fundamentals, advance the bank's digital capabilities especially for our SME customers and expand our participation in the relevant ecosystem. We will also continue to leverage the bank's strong footprint in the Syariah banking market to lead the industry in enriching Syariah wealth solutions,” Taswin concluded.
