KUALA LUMPUR (May 24): Malayan Banking Bhd's (Maybank) net profit for the first quarter ended March 31, 2023 rose 10.7% to RM2.27 billion from RM2.05 billion a year earlier, driven by continued improvement in asset quality as well as treasury and market gains that supported the group’s net operating income.

In a Bursa Malaysia filing on Wednesday (May 24), Maybank said revenue for the quarter rose to RM14.78 billion versus RM11.42 billion previously.

Earnings per share was 18.79 sen against 17.23 sen a year earlier.

In a separate statement, Maybank said notwithstanding the challenging global economic environment, net operating income for the quarter grew to RM6.32 billion, on the back of a 12.4% year-on-year (y-o-y) increase in non-interest income (NOII) to RM1.53 billion

The bank said the y-o-y increase in NOII to RM1.53 billion was aided by gains on derivatives and foreign exchange as well as investment and trading gains.

It said this was, however, negated by a lower net fund based income of 2% as net interest margin declined 15 basis points y-o-y as a result of intense deposit competition.

Maybank said overhead cost was higher at RM3.05 billion compared with RM2.73 billion a year earlier, as a result of increase in personnel cost owing to higher provisioning for the recently concluded collective agreement as well as IT, marketing and revenue related expenses.

Maybank group president and chief executive officer Datuk Khairussaleh Ramli said the first quarter result demonstrates Maybank’s underlying strength and resilience despite the challenging market conditions amid high inflationary pressure and softening global growth.

“The group will continue to stay the course and remain steadfast to weather the uncertain headwinds, backed by sound capital and liquidity positions, and its diversified footprint and income streams for sustainable growth in the future.

“Execution of our M25+ strategy is well underway, anchored on the five key strategic thrusts of intensifying customer centricity, accelerating digitalisation and technological modernisation, strengthening Maybank’s business presence across the region, driving our leadership position in the sustainability agenda as well as claiming our global leadership in Islamic Banking.

“This is in line with our purpose of Humanising Financial Services as we deliver a differentiated customer experience and serve the community as a force for good in Asean,” he said.

At the midday break, Maybank shed 0.46% or four sen to RM8.57 with 2.03 million shares traded.