KUALA LUMPUR: Malayan Banking Bhd's (Maybank) net profit for the first quarter ended March 31, 2023, rose 10.7 per cent to RM2.27 billion from RM2.05 billion a year ago, underpinned by continued improvement in asset quality, treasury and market gains that supported the group's net operating income.
The bank's revenue for the quarter rose 29.4 per cent to RM14.78 billion versus RM11.42 billion previously.
According to Maybank's filing to Bursa Malaysia today, earnings per share were up 18.79 sen against 17.23 sen a year earlier.
According to Maybank, notwithstanding the challenging global economic environment, net operating income for the quarter grew to RM6.32 billion, on the back of a 12.4 per cent year-on-year (YoY) increase in non-interest income (NOII) to RM1.53 billion aided by gains on derivatives and foreign exchange as well as investment and trading gains.
However, this was negated by a lower net fund-based income of two per cent as net interest margin (NIM) declined 15 basis points (bps) YoY due to intense deposit competition.
The bank's overhead cost was higher at RM3.05 billion compared with RM2.73 billion a year earlier as a result of an increase in personnel cost owing to higher provisioning for the recently concluded collective agreement and information technology (IT), marketing and revenue-related expenses.
Asset quality improved as net impairment losses decreased by 50.9 per cent to RM292.9 million in March 2023.
Gross impaired loans declined by 45bps to 1.50 per cent from 1.95 per cent a year earlier and 1.57 per cent as of December 2022 due to write-offs, recoveries and low formation of newly impaired loans.
Maybank group president and chief executive officer Datuk Khairussaleh Ramli said the first quarter result demonstrates Maybank's underlying strength and resilience despite the challenging market conditions amidst high inflationary pressure and the softening global growth.
He added that the group would continue to stay the course and remain steadfast to weather the uncertain headwinds, backed by sound capital and liquidity positions and its diversified footprint and income streams for sustainable growth in the future.
"Execution of our M25+ strategy is well underway, anchored on the five key strategic thrusts of intensifying customer centricity, accelerating digitalisation and technological modernisation, strengthening Maybank's business presence across the region, driving our leadership position in the sustainability agenda as well as claiming our global leadership in Islamic Banking.
"This is in line with our purpose of Humanising Financial Services as we deliver a differentiated customer experience and serve the community as a force for good in Asean," he said in a separate statement.
Maybank also noted that the group has further improved its digital offerings and agile way of delivering products and services by introducing several innovative online banking apps, the reorganisation of its RSME, SME+ and business banking segment as well as a new branch operating model in Malaysia to offer better service quality, speed and customer experience.
At the midday break, Maybank's share price fell 0.46 per cent or four sen to RM8.57, giving it a market capitalisation of RM103.3 billion.