Y-o-Y growth
- Operating Profit Before Provision increased 6.2% to Rp966.5 billion
- Net Interest Income grew by 7.7% to Rp2.0 trillion
- Total loans increased by 10.9% to Rp135.8 trillion
- Total deposits at Rp128.4 trillion, 6.2% higher than previous year
- Global Banking loans grew by 29.8% to Rp35.9 trillion
- CFS Non-Retail loans rose 8.5% contributed by Business Banking and SME.
- Sharia Financing up 22.1% to Rp24.6 trillion and Sharia total Customer Deposits grew 52.2% to Rp26.6 trillion
- Improved asset quality with lower NPL level of 1.7% (net) from 1.8% previously
- Strong capital position with Capital Adequacy Ratio (CAR) at 18.7% and total capital of Rp25.9 trillion
PT Bank Maybank Indonesia Tbk (Maybank Indonesia or the Bank) today reported that its operating income before provisions increased by 6.2% to Rp966.5 billion for the first quarter ended 31 March 2019 compared with Rp909.7 billion in the previous corresponding period. The growth of Operating Profit was mainly supported by improvement in net interest income as loan growth reached 10.9% for the first three months of 2019.
Profit After Tax and Minority Interest (PATAMI), however, stood at Rp414.9 billion for the first quarter ended 31 March 2019 compared with Rp463.1 billion previous quarter ended 31 March 2018 due to the increase in loan loss provision as the Bank took conservative stance in setting aside provision for business loans which were impacted by the continued challenging economy.
The Bank saw net interest income grow 7.7% to Rp2.0 trillion in March 2019 compared with Rp1.9 trillion in March 2018. Continuous implementation of disciplined pricing coupled with improved operational efficiencies enabled the Bank to contain pressures on interest margin resulting in the net interest margin for the quarter unchanged at 4.8%.
Loans expanded by 10.9% to Rp135.8 trillion as at 31 March 2019 from Rp122.5 trillion as at 31 March 2018. Global Banking booked strong loans growth of 29.8% to Rp35.9 trillion from Rp27.6 trillion supported mainly by loans from State-Owned Enterprises (SOE) and top tier corporates. Community Financial Services (CFS) Non-Retail loans, which comprises Micro, Small & Medium Enterprises (SME) and Business Banking loans grew by 8.5% to Rp56.5 trillion from Rp52.1 trillion previously, while CFS Retail loans increased by 1.6% to Rp43.5 trillion as of March 2019.
The Bank maintained a strong liquidity position with customer deposits increasing 6.2% to Rp128.4 trillion in March 2019. The Bank’s Loan-to-Deposit Ratio (LDR – Bank only) was at a healthy level of 90.1%, while its Liquidity Coverage Ratio (LCR Bank) stood at 145.8% as of March 2019, far in excess of the mandatory minimum of 100%. This was the result of a proactive stance taken to ensure the Bank’s liquidity was more than optimal to mitigate unforeseen risks during a period of possible uncertainty in the lead up to the election. In March 2019, the Bank also completed the issuance of Shelf Registered Bond II Tranche IV amounted Rp640.5 billion to further diversify and strengthen its liquidity profile.
Asset quality continued to improve as reflected by lower NPL levels of 2.9% (gross) and 1.7% (net) as at 31 March 2019 compared with 3.0% (gross) and 1.8% (net) in the previous year. The Bank continues to focus on improving asset quality and will maintain conservative stance in its risk posture.
Aligned with this conservative approach over the loan quality, the Bank increased its loan loss provision by 52.2% to Rp400.5 billion as of March 2019. This is for businesses that continue to feel the impact of the current economic environment.
The Bank’s capital position remained strong with its Capital Adequacy Ratio at 18.7% and total capital of Rp25.9 trillion in March 2019.
Sharia Banking
Sharia Banking recorded a growth of 22.1% in financing reaching Rp24.6 trillion in March 2019 from Rp20.2 trillion in the previous year. The growth in financing was accompanied by better asset quality with lower Non Performing Financing (NPF) levels of 2.9% (gross) and 2.1% (net) as at 31 March 2019 compared with 3.2% (gross) and 2.1% (net) in the previous year. Sharia Banking also succeeded in increasing its total deposits which jumped 52.2% to Rp26.6 trillion in March 2019 compared with Rp17.5 trillion last year. This was supported by focused efforts to increase its customer base and the launch of innovative products such as hajj savings My Arafah. Total Sharia assets increased by 21.7% to Rp32.9 trillion, making up 17.5% of the Bank’s total consolidated assets.
Subsidiaries
PT Maybank Indonesia Finance (Maybank Finance) continued to record a solid performance with profit before tax increasing by 17.5% to Rp112.0 billion in the first quarter 2019 from Rp95.3 billion in the previous year despite a 3.5% reduction in its total financing. Maybank Finance continues to focus on ensuring superior asset quality management. Its gross and net NPL stood at 0.34% and 0.18% respectively as at 31 March 2019 compared with 0.38% and 0.31% respectively in the previous corresponding period.
PT Wahana Ottomitra Multiartha Tbk (WOM) maintained a conservative approach in growing its portfolio as the industry experienced a declining business during the first three months of 2019. WOM’s total consumer financing (stand alone) decreased slightly by 3.2% to Rp7.4 trillion in March 2019 from Rp7.6 trillion in the preceding year. WOM’s loan loss provision increased 29.7% to Rp130.6 billion mainly due to the impact of the portfolio following the earthquake in Palu, Central Sulawesi. The decline in its business volume and impact of force majeure resulted in a reduction of profit before tax to Rp55.6 billion in March 2019 from Rp72.7 billion in March 2018. WOM’s gross NPL increased from 2.17% in March 2018 to 3.18% in March 2019, however, its net NPL improved from 1.11% to 0.88%. Going forward, WOM will continue to focus on growing the business with prudent risk management practices.
President Director of Maybank Indonesia Taswin Zakaria said, “Despite the challenging start of 2019, we have resumed in the growth momentum as reflected by progression in our top line. In regaining our growth, we continue to uphold our prudent portfolio guideline and robust risk management policy to ensure stable asset quality. We will continue to seize opportunities for further growth and remain optimistic for the upcoming quarters as we have started to focus on advancing our digital banking platform this year to strengthen customer origination.”
President Commissioner of Maybank Indonesia and Group President & CEO of Maybank, Datuk Abdul Farid Alias said, “Our first quarter results demonstrate that Maybank Indonesia continues to benefit from the sound foundation it has laid. The Bank has built a strong capital and liquidity base, and firmly embedded sustainable business development strategies which cover retail transformation, digital banking enhancement, culture transformation as well as asset quality selection to ensure continued value creation for all our stakeholders. Although the external environment remains challenging; we are confident we can manage the risks and ensure steady growth of our business in the coming quarters.”