KUALA LUMPUR, Aug 29 — Malayan Banking Bhd (Maybank) recorded a 0.9 per cent decline in net profit to RM1.94 billion in the second quarter (Q2) ended June 30, 2019, compared with RM1.96 billion a year earlier.
The country's largest bank, however, saw its revenue increase to RM13.05 billion from RM11.51 billion previously, it said in a filing with Bursa Malaysia.
Net interest income and Islamic banking income for the quarter under review fell 0.5 per cent, or RM19.6 million, year-on-year to RM4.30 billion while net earned insurance premiums rose nine per cent, or RM133.8 million, to RM1.62 billion.
While the group expects its financial performance for 2019 to be satisfactory in line with the anticipated growth prospects of its key home markets, it is lowering its headline key performance indicator for return on equity to between 10.0 per cent and 10.5 per cent. It had earlier set the target at about 11 per cent.
This, it said, was based on a lower interest rate environment and slowing economic growth in key operating markets.
Against the backdrop of a moderating global growth and uncertainty over trade tensions, the group said it would maintain its balance sheet expansion in line with the respective gross domestic product growth in its three home markets and in tandem with the group’s risk posture.
“Maybank will continue building on its diversified franchise and footprint to expand income streams through cross business collaborations and from focusing on diligent pricing of its assets and liabilities,” it said.
The board has declared an interim dividend of 25 sen per share, the same as a year ago, which will be payable within three months. — Bernama
