KUALA LUMPUR (Oct 28): Malayan Banking Bhd’s (Maybank) 98.54%-owned PT Bank Maybank Indonesia Tbk eked out a 0.2% growth in net profit for the nine-month period ended Sept 30, 2022 (9MFY2022), helped by lower provisions and improved cost of funds.

Net profit stood at 1.064 trillion rupiah (RM323.25 million) for 9MFY2022, up from 1.062 trillion rupiah for the previous corresponding period, while net interest and shariah income dropped 0.5% to 5.320 trillion rupiah from 5.349 trillion rupiah over the same period.

Following the improvement in the overall economic outlook, Maybank Indonesia said there was a decrease in provisions for impairment losses by 23.1% to 818 billion rupiah for 9MFY2022, contributed by the bank's continued success in its restructuring efforts, in particular for customers’ loans impacted by the Covid-19 pandemic.

Although total outstanding loans grew by 12.8% to 111.45 trillion rupiah as at 9MFY2022, Maybank Indonesia said interest income shrunk due to lower loan yields, which were impacted by tight competition for loans.

Nonetheless, the bank’s net interest margin grew by two basis points to 4.8% as at 9MFY2022 on lower cost of funds.

Maybank Indonesia’s consolidated gross non-performing loan (NPL) ratio improved to 3.5% as at 9MFY2022, from 4.6% at end-2021, while its net NPL ratio fell to 2.5% from 2.9% over the same period. 

Total customer deposits grew 5% to 107 trillion rupiah in 9MFY2022, from 101.88 trillion rupiah in the same period last year, said Maybank Indonesia in a statement on Friday (Oct 28). 

The bank's current account savings account (CASA) grew 21.6% in 9MFY2022, of which current account deposits rose 33.9% to 32.44 trillion rupiah from 24.24 trillion rupiah in 9MFY2021, while savings account deposits increased 7.6% to 22.93 trillion rupiah from 21.31 trillion rupiah last year.

Maybank Indonesia's CASA ratio improved and was higher at 51.8% in September 2022, from 44.7% in September 2021.

Maybank Indonesia president commissioner Datuk Khairussaleh Ramli said the Indonesian operations continued to demonstrate resilience and ability to capture growth opportunities post pandemic by booking strong loan growth in key business segments in 9MFY2022.

“Indonesia is a huge market with tremendous opportunities, and we see traction in our growth momentum,” said Khairussaleh, who is also Maybank’s group president and chief executive officer. 

“Given Indonesia's potential, backed by the bank's strong fundamentals and sound risk management, I am confident that Maybank Indonesia will be able to navigate through potential market volatilities it may experience in the coming quarters,” he added.

At home, shares in Maybank were trading 12 sen or 1.38% lower at RM8.56 apiece at the time of writing, giving the group a market capitalisation of RM103.18 billion.