Net income climbed to 1.6 billion ringgit ($497 million), or 18.09 sen per share, in the three months ended March from 1.51 billion ringgit, or 17.87 sen per share, a year earlier, the lender also known as Maybank said in a stock exchange filing today. Income from Islamic banking operations rose 31 percent to 808.4 million ringgit.
An improved performance in the consumer and international businesses helped counter a softening in corporate banking operations in Maybank’s key markets of Malaysia and Indonesia, the company said. Maybank also operates in countries including Singapore and the Philippines.
“In the face of continued economic uncertainties globally, results in the first quarter came in relatively softer for the group,” Chairman Megat Zaharuddin Megat Mohd Nor said in a separate e-mailed statement today. “The impact, however, is cushioned off by our well-diversified regional footprint and strong consumer franchise, which enabled us to sustain a steady pace of growth in the quarter.”
Non-interest income fell 9.7 percent to 1.23 billion ringgit in the first quarter, Maybank said. Net interest income, or revenue from borrowers after deducting interest paid to depositors, dropped 1.4 percent to 2.39 billion ringgit. Allowances for impairment losses on loans more than doubled to 210.1 million ringgit, the lender said.
Shares of Maybank rose 0.3 percent to 9.97 ringgit as of 2:41 p.m. in Kuala Lumpur. The stock has added 0.3 percent this year, while the benchmark FTSE Bursa Malaysia KLCI Index has gained 0.6 percent.
Malaysia’s economic expansion will support credit growth, ratings company Moody’s Investors Service said in a report yesterday, citing steady domestic consumption and investment.
“The group will continue to deepen our business portfolio region-wide, improve client interface especially in the Global Banking segment as well as promote more cross-border banking solutions,” Chief Executive Officer Abdul Farid Alias said in the statement. “With our new regional organisation structure now firmly in place, we expect to see stronger momentum in our earnings for the rest of 2014.”
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