KUALA LUMPUR, Nov 21 — Malayan Banking Bhd (Maybank), Southeast Asia’s fourth-biggest lender by assets, posted its highest quarterly profit since its 1960s opening as vibrant economies from Malaysia to the Philippines spurred loan growth.

The bank, like principal rival CIMB Group Holdings Bhd , has been expanding over the years in quick-growing Southeast Asian markets. It targets 40 per cent of profit to come from overseas by 2015 from 30 per cent at present.

Net profit for July-September rose 16.3 per cent to 1.75 billion ringgit thanks to growth in net loans and reduction in costs, the bank, majority owned by Malaysian state pension funds, said on Thursday.

CIMB’s third-quarter profit dropped 7 per cent, though interest income reached its highest in 13 years.

Maybank shares were 0.9 per cent higher at 0707 GMT after the results whereas the broader market was 0.3 per cent lower.

“Our emphases on cost management, enhancing productivity and adherence to sound risk management practices have clearly helped us,” Maybank Group Chief Executive Abdul Farid Alias said in a statement on Thursday.

Profit was also boosted by a 19 per cent jump in non-interest income as the bank locked in foreign-exchange gain of 830.1 million ringgit and benefited from higher fees at its investment banking and advisory units.

Interest income was 4.13 billion ringgit from 3.96 billion ringgit.

The lender said it was on track to achieve its full-year return-on-equity target of 15 per cent from 14.9 per cent at present.

Indonesia exposure

Maybank has fared better than CIMB in recent months thanks to limited exposure to Indonesia, where benchmark interest rates have risen 175 basis points since June to defend the rupiah against the impact of any slowdown of U.S. economic stimulus measures.

The lender controls Bank Internasional Indonesia Tbk PT (BII), Indonesia’s ninth-largest bank by assets, which accounted for 7 per cent of Maybank’s profit last year. CIMB controls fourth-largest bank CIMB-Niaga which contributed 30 per cent of CIMB’s earnings.

“We believe there continues to remain windows of opportunity in the different markets we serve, and we intend to remain agile in tapping into these segments,” said Wan Farid, Maybank CEO since August.

Group loans at Maybank rose an annualised 9.3 per cent in January-September, helped by BII which recorded an annualised increase of 19.8 per cent in loans and advances. Maybank did not give a reason for high loan growth in Southeast Asia’s largest economy.

CIMB-Niaga, in contrast, posted loan growth of 12 per cent for the same period. Its parent expects Indonesia earnings to slow in October-December. — Reuters