Maybank sees sustainable profit growth

PT Bank Maybank Indonesia said net interest margin improved to 5.3 per cent in June 2017 compared with 5 per cent in June 2016.
“We are confident of seeing sustainable profitable growth for the remaining 2017.” president director of Maybank Indonesia Taswin Zakaria said in a statement.
He said the bank’s better performance was supported by an overall improvement in its core banking business. The bank’s fee-based income during the period under review climbed 9.1 per cent from 1.3 trillion rupiah in June 2016 to 1.5 trillion rupiah in June 2017. 
The increase in fee-based income was achieved from bancassurance, loan recovery, remittance and other services provided by the bank.
Global banking loans saw a strong loan growth of 18.9 per cent to 27.3 trillion rupiah in June 2017 as a number of key deals were realised, benefiting from the re-aligning and re-profiling of its portfolio.
The bank’s Community Financial Services (CFS) non-retail loans, which comprise of micro, small and medium enterprises and business banking, grew by 2.0 per cent to 50.1 trillion rupiah.
CFS’ retail banking loans decreased by 6.4 per cent to 42.5 trillion rupiah in June 2017 due to a slowdown in consumer spending.
Asset quality at Maybank Indonesia remained solid, with consolidated non-performing loan level remaining at 3.6 per cent (gross) and 2.4 per |cent (net) as of June 2017 compared with the previous corresponding |period.
Provision expenses was reduced by 15.7 per cent to 835.8 billion rupiah in June 2017 from 991.1 billion rupiah in June 2016.
The bank, however, said loan quality remained a concern as businesses are still impacted by the continued slow movement in the economy.
“We continued to show strong improvement at the operating level for the first six months amidst the challenging market condition,” Taswin said.