PETALING JAYA: Malayan Banking Bhd posted a net profit of RM2.45 billion for the fourth quarter ended Dec 31, 2019, a 5.3% increase from RM2.33 billion recorded in the previous corresponding quarter, boosted by robust performances of its community financial services, Islamic banking and insurance & takaful segments.
This also came on the back of a net gain in investment income of RM185.5 million for the quarter, as compared to a net loss in investment income of RM352.6 million in Q4 18.
Revenue rose 6.1% to RM12.98 billion, from RM12.23 billion.
The group has proposed a final dividend of 39 sen per share, which together with the interim dividend of 25 sen per share, takes the full-year dividend to 64 sen per share.
This translates into a full-year dividend payout ratio of 87.8%, amounting to RM7.19 billion.
For the full year, Maybank’s net profit rose 1% to a new high of RM8.2 billion, from RM8.11 billion a year ago, while revenue was up 11.7% to RM52.84 billion, from RM47.32 billion previously.
The group achieved a record net operating income of RM24.74 billion for FY19 on the back of a 10.7% rise in net fee-based income and a 2.2% improvement in fund-based income, as a result of higher contributions from all business sectors led by the insurance & takaful business.
Group gross loans expanded 1.2% in FY19, contributed by a healthy growth in Malaysian operations, where it outpaced the industry with a 4.9% expansion
Group deposits, meanwhile, expanded 1.6%, in line with loans expansion, led by Singapore at 4.6% and Malaysia at 2.2%. The Singapore and Indonesia markets saw a decline by 3.9% and 8.2% respectively, mainly as a result of write-offs and repayments.
Consequently, net interest margin for FY19 was only marginally lower by 6 basis points to 2.27%, compared with 2.33% in FY18.
Gross impaired loan ratio was higher at 2.65% as at December 2019 against 2.41% in December 2018 amid challenging economic environment.
Maybank Group president and CEO Datuk Abdul Farid Alias said the group will aggressively seek selective growth opportunities, despite the overall cautious stance that is being seen across markets, especially with the prevailing concerns over the Covid-19 virus outbreak and other geopolitical issues.
“We will continue to focus on our digital agenda to help deliver greater efficiency and seek additional revenue streams for the future, while maintaining our emphasis on stringent risk and cost management to cushion the group from the uncertainties ahead.
“At the same time, we will closely monitor the current situation and ensure that our business continuity initiatives are able to mitigate the impact to our business,” he said in a statement.
At the noon break, Maybank’s share price gained 4 sen to RM8.37 on 1.6 million shares done.