MAYBANK's FY24Q4 Attributable Profit: A Deep Dive into the Bank's Success

MAYBANK, Southeast Asia's fourth largest bank by assets, has reported a net profit of RM7.56 billion for the nine months' period (9M FY24) ended 30 September 2024, an increase of 8.5% from the same period a year earlier. Profit before tax (PBT) meanwhile was also up by 7.4% Y-o-Y to RM10.29 billion. The commendable results were driven by strong growth in non-interest income (NOII), driven by improved core fees and insurance performance.

Net operating income for the nine months increased by 8.7% Y-o-Y to RM22.15 billion driven by higher non-interest income (NOII) of 26.0% to RM7.49 billion compared to 2023, boosted by strong growth in core fees which rose 13.4%. Net fund based income also improved 1.5% to RM14.66 billion from RM14.44 billion compared to a year earlier supported by solid loans growth of 4.8% year to date annualised (YTD Ann.) from all key segments in Malaysia, Singapore and Indonesia. Net interest margin (NIM) declined 14 bps Y-o-Y as a result of higher funding cost across the home markets, but has been stable at 2.04% since the second quarter of 2024.

Overhead costs expanded to RM10.77 billion from RM9.77 billion a year earlier on higher personnel costs, IT expenses, administration and general costs and marketing expenses. Notwithstanding that, the Group’s pre-provisioning operating profit (PPOP) was up by 7.2% Y-o-Y to RM11.38 billion.

Net impairment provisions stood at RM1.27 billion from RM1.21 billion a year earlier while net loan provisions decreased by 10.0% to RM1.23 billion, driven by higher recoveries. This resulted in a lower net credit charge off rate for loans of 26 bps from 31 bps the year before. Gross impaired loans ratio decreased to 1.26% from 1.43% a year earlier while loan loss coverage remained comfortable at 125.8%.

3Q FY24 vs 3Q FY23
For the third quarter of 2024, net profit rose 7.6% Y-o-Y to RM2.54 billion compared with the same period last year, while PBT for the quarter was up 7.8% to RM3.40 billion. Net operating income was up by 7.1% Y-o-Y to RM7.23 billion, led by a strong 20.9% rise in NOII to RM2.34 billion while net fund based income grew by 1.5% to RM4.89 billion. PPOP stood at RM3.71 billion, up 7.4% compared with a year earlier although overhead expenses was slightly higher at RM3.52 billion from RM3.30 billion in 2023.

3Q FY24 vs 2Q FY24
Net profit for the third quarter came in slightly higher by 0.3% compared with the preceding quarter’s (2QFY24) RM2.53 billion. PBT meanwhile was 1.2% lower at RM3.40 billion compared with 2Q FY23. Net impairment provisions was lower by 8.0% following higher recoveries from corporate borrowers.

President & Group CEO, Dato’ Khairussaleh Ramli said that MAYBANK is making good progress with healthy top lines and a commendable overall nine months earning, albeit growing challenges on the global front and market volatility across the region. Guided by its corporate strategy to focus and drive initiatives on super-growth areas, particularly wealth management, bancassurance and the global banking mid-market segment, has yielded positive outcomes for the Group. This is in addition to the prioritisation of maintaining strong liquidity position while improving asset quality and preserving sound capital levels.

"As we advance through our M25+ journey, we remain committed to embedding customer relationships across segments, leveraging on advanced digital capabilities. A key enabler of our performance is the continued deepening of the Agile ways of working, where we have further enhanced collaboration, improved decision-making speed, and increased our ability to respond effectively to changing customer needs and market dynamics.

On the sustainability front, a recent initiative to elevate our decarbonisation pathway was with the publishing of an updated White Paper which now also covers the steel and aluminium sectors, in addition to the power and palm oil sectors published earlier. The White Paper will serve as a guide for the Group to meet its mid-term target in 2030.”

Loans & Deposits
Group loans also expanded by 4.8% YTD Ann. as at 30 September 2024, lifted by increases of

In conclusion, MAYBANK's FY24Q4 attributable profit of RM2.53 billion, up 6.1% YoY, is a testament to the bank's strong operating income, solid loans growth, improved asset quality, and healthy liquidity risk indicators. The bank's commitment to embedding customer relationships, leveraging digital capabilities, and maintaining a strong liquidity position has contributed to its commendable overall nine months earning. As MAYBANK continues to focus on super-growth areas and prioritize sustainability, investors can expect the bank to maintain its strong financial performance in the long term.