KUALA LUMPUR, Nov 25 — Malayan Banking Bhd’s (Maybank) net profit slipped to RM1.68 billion in the third quarter (Q3) ended Sept 30, 2021, from RM1.95 billion a year earlier amid weaker business operations.
Revenue fell to RM11.15 billion from RM13.76 billion in last year’s corresponding quarter, the country’s largest bank by assets said in a filing with Bursa Malaysia today.
It said the group community financial services’ profit before taxation and zakat decreased 34.2 per cent to RM754.5 million from RM1.15 billion amid a higher net allowance for impairment losses on loans, advances, financing and other debts of RM394.9 million, higher overhead expenses of RM74.9 million and lower operating income of RM33.4 million.
Meanwhile, its investment banking’s profit before taxation and zakat decreased 58.1 per cent to RM72.1 million from RM172.0 million following lower other operating income of RM110.1 million, net allowance for impairment losses on loans, advances, financing and other debts of RM6 million from net writeback of RM1.4 million and lower net interest income and income of RM4.8 million.
As for insurance and takaful’s profit before taxation and zakat, Maybank said it narrowed 4.7 per cent o RM219.3 million from RM230.1 million contributed mainly by lower net earned insurance premiums of RM1 billion, lower other operating income of RM364.7 million and higher overhead expenses of RM19.9 million.
The decreases were, however, mitigated by lower net insurance benefits and claims incurred, net fee and commission expenses, change in expense liabilities and taxation of life and takaful fund of RM1.32 billion, higher net interest income of RM46.7 million, among others.
Going forward, premised on the improving vaccination rates and reopening of economies, growth is expected to recover going into 2022.
“Leveraging Maybank’s strong capital and liquidity base, the group will ensure that impacted customers continue to have access to the financial assistance and support they require in this recovery phase to also capitalise on emerging growth opportunities.
“Meanwhile, the group will continue to prioritise low cost funds and targeted growth opportunities within our home markets, while remaining proactive in our engagement with customers to address asset quality concerns,” it said.
The largest lender will also target fee-based income opportunities through its wealth management, global markets, investment banking, asset management and insurance segments.
“Capitalising on our domestic franchise and leadership position in digital banking, we will focus on accelerating product roll-outs on our digital platform to increase market penetration and generate fee-based revenues.
“Furthermore, the group will enhance productivity and efficiencies, while maintaining disciplined cost management to offset top line pressures,” it noted. — Bernama