KUALA LUMPUR: Malayan Banking Bhd's (Maybank) net profit rose 28.5 per cent year-on-year (YoY) to RM2.17 billion for the third quarter (Q3) ended September 30, 2022 from RM1.68 billion a year earlier.
Maybank said it had benefited from the improving economic environment across the region.
Revenue for the period was up 20.4 per cent to RM13.42 billion versus RM11.15 billion in the same period last year.
Net operating income for the quarter increased by 20.6 per cent YoY to reach RM7.41 billion.
This was driven by higher net fee based income of 48.0 per cent to RM2.12 billion from RM1.43 billion a year earlier and a 12.2 per cent rise in net fund based income to RM5.30 billion from RM4.72 billion.
The improvement in net fee-based income was mainly led by mark-to-market gains in financial liabilities and foreign exchange gains while net fund based income rose on better loans growth across all home markets and net interest margin (NIM) expansion from a rising interest rate environment.
Subsequently, this lifted pre-provisioning operating profit (PPOP) by 20.8 per cent to RM4.02 billion compared with a year earlier.
Net impairment losses declined 25.2 per cent to RM0.84 billion from RM1.13 billion a year earlier as higher proactive provisioning was made last year due to macroeconomic headwinds and potential borrower vulnerabilities owing to prolonged movement restrictions.
For the nine-month period, the bank's net profit rose 0.5 per cent to RM6.07 billion from RM6.04 billion last year driven by better net operating income of RM20.72 billion, which rose 8.2 per cent YoY from RM19.15 billion.
Maybank said this higher net operating income was led by an increase of 8.1 per cent YoY in net fund based income to RM15.37 billion supported by loans growth across all home markets and NIM expansion.
Revenue for the period increased 5.3 per cent YoY to RM36.55 billion versus RM34.7 billion a year earlier.
Maybank chairman, Tan Sri Datuk Sri Zamzamzairani Mohd Isa said with regional economies in Asean charting stronger economic growth for the first nine months of 2022 on normalised business activities, it had experienced similar expansion across its loan portfolios in its regional markets.
The group remained cautiously optimistic of its growth prospects for the remainder of 2022.
"The commendable results we have achieved demonstrates the group's resilience and ability to sustain its growth momentum across all business lines as well as home markets over the past nine months.
"With the recent unveiling of the Group's refined corporate strategy, M25+, we will focus on key priorities including intensifying customer centricity and taking a leadership position in
sustainability and Islamic Wealth Management," he said.
Meanwhile, group president and chief executive officer Datuk Khairussaleh Ramli said the group would drive income growth across its loan portfolio and fee income streams as well as maintain discipline over its asset quality monitoring.
"While ASEAN economies are expected to continue their growth into next year albeit at a slower pace, we will keep our strong liquidity and capital positions to manage potential downside risks that could emerge in the operating environment," he said.