Consolidated Financial Highlights as of 31 December 2022.
(All percentages noted are on year on year (Y-o-Y) basis unless otherwise stated)
Maybank Indonesia announced its Consolidated Financial Results ended 31 December 2022, with Profit before Tax of Rp2.04 trillion, which dipped 7.4% from Rp2.20 trillion the year before. This was primarily due to lower loan yields, following tight competition within the industry, as well as a drop in Global Markets (GM), Bancassurance and wealth management incomes. However, the Bank continued to improve its cost of funds and booked lower provisions in line with improving loan quality.
The Bank’s Net Interest Margin (NIM) expanded by 36 bps to 5.1% in December 2022, contributed by lower cost of funds, higher CASA balance and growth in the higher margin auto-loan businesses.
The Bank recorded a drop in fee-based income of 15.8%. This was mainly contributed by the significant drop in GM related fees which fell 62.7% Y-o-Y, impacted by the spike in global interest rates and volatile markets. However, retail forex services income from branch offices improved in almost all regions across Indonesia.
The Bank’s total loans grew 5.9% to Rp107.82 trillion from Rp101.77 trillion last year, mainly driven by higher corporate banking and consumer loans. The Bank’s corporate loan segment, Global Banking, grew 7.1% to Rp40.65 trillion from Rp37.95 trillion last year, followed by the Bank’s total Community Financial Services (CFS) retail and non-retail loans, which grew 5.2% to Rp67.17 trillion from Rp63.82 trillion.
Following upward trends in consumers’ purchasing power, the Bank’s CFS Retail loan segments grew significantly by 13.6% to Rp38.99 trillion from Rp34.32 trillion led by two and four wheeler business which grew 22.6% Y-o-Y, as well as credit card business and personal loans by 14.7% Y-o-Y and mortgage by 4.6% Y-o-Y.
The Bank’s non-retail loans, comprises of Business Banking, Small and Medium Enterprises (classified by the Bank as SME+) and Retail Small and Medium Enterprises (RSME) segments. The RSME segment was able to maintain its growth momentum, which grew 4.5% to Rp12.77 trillion from Rp12.23 trillion as the Bank continued its efforts to rebalance its non-retail loan portfolio segment by focusing on loan disbursements on smaller businesses. The Bank also maintained its cautious risk posture which resulted in a decrease in the SME+ and Business Banking loan portfolios by 4.4% and 13.6% respectively. The overall balance of the Bank’s CFS Non-retail loan segment therefore fell by 4.5% Y-o-Y.
Following the easing of movement restrictions, the Bank resumed full operations and stepped up business campaign activities, and customer engagement events. The Bank also invested in human capital and personnel development with an 8.0% increase in personnel related costs. This resulted in a 3.6% increase in overhead cost which stood at Rp5.65 trillion.
The Bank continued to proactively manage the asset quality which has resulted in the improvement of loan loss provisions by 17.8%.
The Bank's consolidated Non-Performing Loan (NPL) ratio improved to 3.5% (gross) and 2.3% (net) in December 2022 from 3.7% (gross) and 2.6% (net) in December 2021. NPL balances decreased by 1.5% Y-o-Y and Loan at Risk ratio (LAR Bank only) improved to 12.7% in December 2022 from 18.0% in the previous year.
From liquidity perspective, the Bank's CASA stood at Rp54.35 trillion, with a slight growth in the Bank's Current Account by 0.2% to Rp32.43 trillion and Savings Account at Rp21.91 trillion. The Bank continued its strategy to maintain low-cost funding by optimising digital services to acquire customer deposits. The Bank also managed to reduce high-cost deposits resulting in a decline of 15.3% in Time Deposits to Rp51.36 trillion from Rp60.63 trillion last year. Accordingly, the Bank's total customer deposits then fell 8.0% Y-o-Y.
Loan to Deposit (LDR) ratio (Bank only) was at a healthy level of 86.9% in December 2022 from 76.3% in December 2021, and Liquidity Coverage (LCR) ratio (Bank only) was at 168.5% in December 2022, exceeding regulator's minimum level of 100%.
The Bank's Capital Adequacy Ratio (CAR) remained strong at 26.7% in December 2022, with total capital of Rp28.86 trillion at the end December 2022.
Growth in Digital Platform
The Bank's digital banking platform for retail customers, M2U, registered an increase in transactions of 23.9% to approximately 17.9 million in 2022 from more than 14.5 million transactions last year. The M2U transaction value grew 28.3% to Rp98.41 trillion from Rp76.69 trillion last year, followed by a more than 400% growth in new customer acquisitions through the digital platform.
Meanwhile, the Bank’s digital banking platform for corporate customers, M2E, registered an increase in transactions of 24.4% to more than 4.3 million from 3.4 million transactions last year, with a total value of financial transactions on M2E at Rp711.81 trillion in 2022, grew 22.2% from Rp582.70 trillion last year. The total M2E active users also grew 7.3% to 3,084 users from 2,874 users, contributing to an increase of corporate funding by 26.8% to Rp28.76 trillion from Rp22.67 trillion last year.
In the fourth quarter of 2022, the Bank added the ‘Smart Search’ feature on M2U to assist customers in navigating the M2U App, which is relevant to their needs. Powered by Natural Language Processing (NLP) technology, the ‘Smart Search’ feature is also equipped with voice-to-text technology enabling customers to search simply through voice command as opposed to typing in keywords on M2U.
Throughout 2022, the Bank continued to increase its capital investment in technology, covering cyber security, IT modernisation, and development of new applications to support business growth.
Maybank Indonesia’s digital business unit was awarded, ‘Service Innovation of The Year Indonesia 2022’ at the Asian Banking & Finance Retail Banking Awards 2022, ‘Best Digital Banking for Category III Bank’ at Infobank Digital Banking Awards 2022, ‘Highly Regarded Banks with Digital Solutions in Indonesia’ at Euromoney Market Leaders Awards 2022 and ‘Best Retail Bank for Digital CX Indonesia’ at Digital CX Awards 2022.
Shariah Banking Unit
Maybank Indonesia continued to implement its ‘Shariah First’ strategy and the Leverage Model, which has played strategic roles in increasing the business in its Shariah Banking Unit.
Maybank Indonesia Shariah Banking Unit's operating profit before provision increased 13.1% to Rp856 billion with a more efficient funding structure, as CASA grew significantly, coupled with an increase in fees. However, the Shariah Banking Unit continued to take conservative measures to safeguard its asset quality by setting aside higher provisioning for specific accounts, which led to an overall drop in PBT to Rp302 billion from Rp450 billion last year.
Shariah Banking Unit’s CASA grew significantly by 19.3% to Rp13.96 trillion from Rp11.70 trillion last year and CASA ratio improved. The increase in CASA was in line with the Bank’s strategy in maintaining strong liquidity by optimising low-cost funding.
Total Shariah Banking Unit’s assets grew 2.1% to Rp40.04 trillion from Rp39.22 trillion, contributing to the Bank’s total standalone assets by 26.9% and financing grew 3.1% to Rp26.43 trillion from Rp25.64 trillion with more growth focus on SME and retail financing.
Non-Performing Financing (NPF) ratios improved to 3.0% (gross) and 2.3% (net) in December 2022, from 3.7% (gross) and 2.5% (net) in December 2021. Financing-to-Deposit Ratio (FDR) stood at a healthy level of 85.0%.
In November 2022, Maybank Indonesia’s Shariah Business Unit organised entrepreneurship development programme, 'Maybank Syariah Isyefpreneur Competition', aimed to encourage Shariah small-scale business owners, enthusiasts, academics and local mosque communities to showcase their business plans and expansion proposals based on Shariah principles. The event also held webinar training to discuss the role of Mosque-based entrepreneurship as a solution to improve the local economy.
Throughout 2022, Maybank Indonesia’s Shariah Business Unit was awarded 3rd place for the ‘Best Digital Bank in Shariah Business Unit (UUS) category’ at Infobank’s 11th Digital Brand Awards 2022 and 3rd place in ‘Best Green Financial Sustainability 2022’ at the 2022 BPKH (Government Hajj Fund Manager) Banking Award.
President Director Maybank Indonesia, Taswin Zakaria, said, “The Bank had resumed positive growth in the Bank's consolidated loans as the market in Indonesia recovered during the year despite impact of global market volatility.”
"Throughout 2022, we experienced growth in our key business segments and at the same time maintained strong fundamentals, paving the way for profitability and growth, particularly in the small and medium enterprises segments, which form the core strength and backbone of the economy. For 2023, we will continue with our transformation journey to accelerate digital SME capabilities and expand our banking services by leveraging digital ecosystems while strengthening our productivity to increase operational and business agility to seize future growth opportunities."
President Commissioner Maybank Indonesia, Dato’ Khairussaleh Ramli said, “Maybank Indonesia continued to demonstrate its resilience and ability, delivering additional value to our stakeholders despite the macro challenges. We remain optimistic in the growth opportunities in Indonesia, and we will actively pursue them while working to provide a better banking experience to our customers.”
“Indonesia is one of Maybank Group's home market, and the Group is committed to provide the necessary support to realise Maybank Indonesia's aspirations to strengthen its business presence and position in the region in the coming years. Our refined M25+ strategy will address the evolving needs of Maybank’s franchise to continually meet customer expectations in line with our mission to Humanise Financial Services and further reinforce our competitiveness in the market.”
PT Maybank Indonesia Finance (Maybank Finance)
Maybank Finance recorded a significant growth in PBT, which grew 15.4% to Rp566 billion from Rp491 billion last year amidst growing demand for four-wheeled financing.
The total outstanding four-wheelers financing grew 4.8% to Rp7.12 trillion from Rp6.79 trillion last year, with NPL improved to 0.1% (gross) and 0.1% (net) in December 2022 from 0.3% (gross) and 0.1% (net) in December 2021.
PT Wahana Ottomitra Multiartha Tbk (WOM)
WOM registered a significant jump of 82.3% in PBT to Rp280 billion from Rp154 billion last year, following improved consumer purchasing power that led to increasing demands for two-wheelers vehicles and other financings.
WOM's financing grew 9.6% to Rp5.02 trillion from Rp4.58 trillion last year, with NPL ratio stood at 1.6% (gross) and 0.7% (net) in December 2022 from 1.4% (gross) and 0.6% (net) in December 2021.