Latest news with #Khairussaleh
The Star
7 days ago
- Business
- The Star
‘Commendable earnings growth' drives 1Q25 results
PETALING JAYA: Malaysia's largest banking group began its new financial year with a decline in interest income, amid cautious business sentiment and moderated credit demand. However, thanks to a bigger decline in interest expense driven by lower deposits, Malayan Banking Bhd (Maybank) managed to report a stronger net interest income on a year-on-year basis for the first quarter ended March 31, 2025 (1Q25). Maybank president and group chief executive officer Datuk Khairussaleh Ramli described the lender's 1Q25 results as reflecting 'commendable earnings growth', underpinned by stable net interest margins, better asset quality and disciplined cost management. Nonetheless, Khairussaleh flagged that the global economic outlook remains uncertain. That said, he expects continued growth in the markets where the group operates. In a filing yesterday, Maybank reported a 6.5% y-o-y drop in interest income for 1Q25. After adjusting for expenses, net interest income rose 2.2% y-o-y to RM3.22bil. The net interest margin remained stable at 2.04%, supported by a 2.3% increase in net fund-based income to RM4.95bil. This was on the back of a 3.2% y-o-y loan growth across all home markets and key business segments. However, annualised loan growth was comparatively lower at 2.2%, reflecting the current operating environment, which continues to be impacted by cautious business sentiment and moderated credit demand. Non-interest income (NOII), which contributed 35.8% of total income, stood at RM2.76bil, supported by improved wealth management performance. Overall, Maybank's net profit for 1Q25 rose 4% y-o-y to RM2.59bil. Looking ahead, Khairussaleh said Maybank continues to strengthen its position across Asean, capitalising on intra-Asean and Asean + opportunities, particularly in trade, investment and cross-border connectivity. 'Our focus on completing M25+ (corporate strategy) remains steadfast, as we continue to drive meaningful progress on our strategic thrusts – strengthening our core, accelerating digital transformation and embedding sustainability in everything we do. 'We are particularly encouraged by the growing impact of our values-based solutions, which continue to create tangible benefits for our customers, while delivering positive social impact and environmental outcomes across the markets we serve,' he added. On loan performance, Maybank reported y-o-y increases across all its home markets: Malaysia (8%), Singapore (5.9%) and Indonesia (0.8%). On an annualised basis, loan growth was led by Malaysia at 6%, followed by Singapore at 3.3%. Meanwhile, the Indonesian market slid by 17.2%, mainly in the Global Banking division, due to the portfolio rebalancing initiative. The group's deposit grew by 5.1% y-o-y with Singapore seeing a 17.9% jump, while Malaysia recorded a modest 4.4% increase. On an annualised basis, deposits in Malaysia expanded by 3.4%, while Singapore and Indonesia contracted by 0.2% and 24.8%, respectively. The deposit reduction in Indonesia aligns with the portfolio rebalancing and releasing of high-cost deposits. In 1Q25, Maybank posted a net loss of RM670.1mil on its foreign-exchange translation, compared with a net gain of RM207.5mil in 1Q24. Overhead costs were also higher in 1Q25, rising by 2.3% y-o-y to RM3.7bil, driven by higher personnel expenses, marketing costs and software maintenance expenses. On a segmental basis, Maybank's Group Community Financial Services registered a 5.5% y-o-y increase in pre-tax profit for 1Q25 to RM1.48bil, supported by a 1.9% y-o-y growth in net operating income to RM4.5bil. Maybank attributed this to steady growth in both NOII and net fund-based income, which rose 6.5% and 0.4%, respectively. Meanwhile, the Group Global Banking (GGB) division recorded a 9.8% y-o-y increase in pre-tax profit for 1Q25 to RM1.76bil, driven by higher income and lower net impairment losses. Corporate loans grew across GGB's core markets, led by Malaysia with a 6.3% increase, while Singapore was up by 0.4%. On the funding side, customer deposits increased by 1.4% y-o-y, supported by a solid 4.8% growth in current account savings account, with Singapore delivering a substantial 64.5% increase. > TURN TO PAGE 2 The group's Islamic Banking business also posted a strong growth, with pre-tax profit rising 38.8% y-o-y to RM1.14bil in 1Q25, underpinned by a stable 1.3% increase in total income to RM2.13bil. Additionally, Etiqa Insurance & Takaful's underwriting income surged nearly threefold y-o-y to RM354.3mil, driven by contingency surplus release for the Family Takaful portfolio and better claims experience in the General/General Takaful portfolio. Maybank's Indonesian arm posted a robust 290.9% y-o-y increase in pre-tax profit to 506 billion rupiah in 1Q25, driven mainly by a significant rise in NOII and improved provisions. The group's Singaporean arm registered a 20.1% y-o-y rise in net fund-based income to S$193.1mil, benefiting from lower funding costs and write-backs in term loans effective interest rate adjustment. However, NOII dipped slightly by 1.6% to S$143.5mil due to lower Treasury income. Overall, Maybank reported asset quality remained healthy in 1Q25, with pre-provisioning operating profit rising 1.3% y-o-y to RM3.97bil. Annualised return on equity improved to 11.3% from 11.1% in 2024. Net impairment provisions also improved 21.7% to RM426.4mil on lower loan provisions by 17.9% to RM0.38bil. As a result, the net credit charge-off rate eased to 23 basis points (bps) from 2 8bps in the previous quarter. The gross impaired loans ratio improved by 5 bps to 1.27% in 1Q25 compared with 1Q24, while loan loss coverage remained strong at 122.9%. Maybank also maintained robust capital and liquidity positions in 1Q25 with a Common Equity Tier 1 capital ratio of 14.88% and total capital ratio of 17.96%. The group's liquidity coverage ratio remained stable at 135.7%, well above the regulatory requirement of 100%.
Business Times
19-05-2025
- Business
- Business Times
Two SGX listcos eye investments in Johor-Singapore Special Economic Zone: Maybank
[SINGAPORE] Singapore-listed companies Thomson Medical Group and Centurion Corporation have expressed interest to invest in the Johor-Singapore Special Economic Zone (JS-SEZ), said Maybank on Monday (May 19). The two listcos are among the Malaysian bank's three Singapore-headquartered clients that submitted letters of intent (LOIs) to the Iskandar Regional Development Authority at the JS-SEZ Partners' Dialogue: Advancing Facilitation event hosted by Malaysia's Ministry of Economy. A third company – Alpine Renewables and Edible Oils, a supplier of feedstock to biofuel producers in Europe, China, South Korea and the US – has also expressed interest in setting up facilities in JS-SEZ. The LOIs express a combined investment interest of up to RM2.35 billion (S$709.5 million) over the next three to 10 years. They 'signal confidence in the JS-SEZ's strategic value', said Khairussaleh Ramli, president and group chief executive officer of Maybank. 'These intended investments contribute to the development of the 11 JS-SEZ economic sectors, particularly in the green economy, manufacturing, logistics and healthcare, and align with the Madani Economy's aspirations of creating new growth engines, and adding high value jobs,' said Maybank. In addition to facilitating the submission of the LOIs from its Singapore clients, the bank also inked an LOI with the Malaysian Economic Ministry, outlining interests in joint efforts to promote the JS-SEZ. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The bank has also launched initiatives to position the JS-SEZ as a regional hub, including upskilling micro, small and medium enterprises in areas of supply chain and halal facilitation, Khairussaleh said. It supports clients in strategic sectors of data centres, infrastructure and semiconductors and facilitated the approval of the first single family office in Malaysia and in the Forest City Special Financial Zone, he added. Centurion, a global owner and manager of worker and student accommodation, has expressed interest to invest RM300 million to RM500 million over the next five years to double its bed capacity in the JS-SEZ. Healthcare player Thomson Medical specified 'strong interest' to invest up to RM1.5 billion over the next ten years to develop Thomson Hospital Iskandariah on a 1.5 hectare site in Stulang, Iskandar. This hospital, which will be a multi-speciality tertiary care facility, aims to create some 1,500 jobs across clinical, research, specialist physician roles and support services such as healthcare technology, said Maybank. It will feature medical centres spanning disciplines such as oncology, orthopaedics, obstetrics and gynaecology, fertility and general surgery and will incorporate artificial intelligence-assisted tools. As for Alpine Renewables and Edible Oils, it plans to invest around RM350 million over the next three years to develop renewable energy feedstock pretreatment and renewable biodiesel refinery facilities in the Tanjong Langsat Industrial Port, in anticipation of rising demand for sustainable biofuels.
Business Times
19-05-2025
- Business
- Business Times
Two SGX listcos eye investments in JS-SEZ: Maybank
[SINGAPORE] Singapore-listed companies Thomson Medical Group and Centurion Corporation have expressed interest to invest in the Johor-Singapore Special Economic Zone (JS-SEZ), said Maybank on Monday (May 19). The two listcos are among the Malaysian bank's three Singapore-headquartered clients that submitted letters of intent (LOIs) to the Iskandar Regional Development Authority (IRDA) at the JS-SEZ Partners' Dialogue: Advancing Facilitation event hosted by the Malaysian Ministry of Economy on Monday. A third company, Alpine Renewables and Edible Oils, a supplier of feedstock to biofuel producers in Europe, China, South Korea and the US, has also expressed interest in establishing a presence in JS-SEZ. The LOIs express a combined investment interest of up to RM2.35 billion (S$709.5 million) over the next three to 10 years. At the event, Maybank facilitated the submission of the LOIs from its Singapore clients and inked an LOI with the ministry, outlining interests in joint efforts to promote the JS-SEZ. The LOIs 'signal confidence in the JS-SEZ's strategic value', said Khairussaleh Ramli, president and group chief executive officer of Maybank. 'These intended investments contribute to the development of the 11 JS-SEZ economic sectors, particularly in the green economy, manufacturing, logistics and healthcare, and align with the Madani Economy's aspirations of creating new growth engines, and adding high value jobs,' said Maybank. Maybank's LOI covers four key areas of financing support, promotion and global visibility by leveraging its extensive network, collaboration on events and stakeholder engagement and research and thought leadership. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The bank has also launched initiatives to position the JS-SEZ as a regional hub, including upskilling micro, small and medium enterprises in areas of supply chain and halal facilitation, Khairussaleh said. It supports clients in strategic sectors of data centres, infrastructure and semiconductors and facilitated the approval of the first single family office in Malaysia and in the Forest City Special Financial Zone, he added. Up to RM2.35 billion of intended investments Centurion, a global owner and manager of worker and student accommodation, has expressed interest to invest RM300 million to RM500 million over the next five years to double its bed capacity in the JS-SEZ. Healthcare player Thomson Medical specified 'strong interest' to invest up to RM1.5 billion over the next ten years to develop Thomson Hospital Iskandariah on a 1.5 hectare site in Stulang, Iskandar, Malaysia. The envisaged hospital, a multi-speciality tertiary care facility, aims to create some 1,500 jobs across clinical, research, specialist physician roles and support services such as healthcare technology, said Maybank. It will feature medical centres spanning disciplines such as oncology, orthopaedics, obstetrics and gynaecology, fertility and general surgery and will incorporate artificial intelligence-assisted tools. The third company to indicate its interest, Alpine Renewables and Edible Oils, plans to invest around RM350 million over the next three years to develop renewable energy feedstock pretreatment and renewable biodiesel refinery facilities in the Tanjong Langsat Industrial Port, in anticipation of rising demand for sustainable biofuels.
Independent Singapore
29-04-2025
- Business
- Independent Singapore
Maybank, PUJB forge strategic partnership to boost Johor entrepreneurs in JS-SEZ
MALAYSIA: The Malayan Banking Bhd (Maybank) and Perbadanan Usahawan Johor Sdn Bhd (PUJB) have signed a memorandum of understanding (MoU) to deliver comprehensive support for local businesses. This strategic move is to empower Johor's entrepreneurs and ensure inclusive growth within the Johor-Singapore Special Economic Zone (JS-SEZ), As reported by The Star, this partnership is set to bridge key gaps for micro, small and medium enterprises (MSMEs) through financial solutions, halal industry facilitation, and capacity-building initiatives, all vital in positioning Johor as a competitive player regionally and globally. Strengthening the local MSME ecosystem Maybank's president and group chief executive officer (CEO) Datuk Khairussaleh Ramli highlighted that the collaboration underscored Maybank's ongoing commitment to supporting the local entrepreneurial community. 'As a leading bank of ASEAN — with the largest branch network in Johor and 65 years of banking presence in Singapore — this partnership will play a catalytic role in advancing business growth and investments in the JS-SEZ, covering over 60,000 local MSME entrepreneurs who are currently part of PUJB's ecosystem,' he was quoted as saying by The Star. The partnership aligns closely with the JS-SEZ's economic objectives. It also helps ensure that local entrepreneurs are well-positioned to benefit from the influx of new investments and expanded market opportunities. According to The Star, Maybank will collaborate with PUJB to deliver tailored banking and beyond banking solutions, including supply chain financing, strategic advisory services and modern financial tools suited to the needs of Johor's businesses. Driving Johor's halal industry ambitions Given the JS-SEZ's focus on building a halal economic cluster, the MoU also paves the way for deeper development of this sector. 'With JS-SEZ's focus on halal, this partnership with PUJB will also contribute towards the development and positioning of JS-SEZ as the preferred regional and global halal hub,' said Khairussaleh. He added, 'Our strong global Islamic banking experience has strategically positioned us to assist in not only providing syariah-compliant financing solutions but also enables us access to the halal ecosystem and marketplace for businesses.' This strategic alignment between banking expertise and entrepreneurial growth initiatives offers a clear pathway for Johor's halal players to scale their businesses beyond local markets. Positive reactions from the public The announcement of the MoU has been met with widespread positivity. On social media, the wider public has praised the partnership's potential impact. 'Exciting update,' stated one netizen, showing optimism about Johor's future economic landscape. Another user also expressed enthusiasm about this growth strategy. 'Big congratulations!', their comment stated, showing their excitement about the impact of this news. Such responses show the public's strong confidence in the strategic alignment between financial institutions, government-linked agencies, and entrepreneurial development efforts within the JS-SEZ framework. Building an inclusive entrepreneurial ecosystem PUJB's chief executive officer Mohd Radzi Mohd Amin reaffirmed the corporation's commitment to developing a competitive and inclusive entrepreneurial environment. 'PUJB is committed to leading the development of a competitive and inclusive entrepreneurial and cooperative ecosystem, including empowering youth, women, and rural communities through training and mentoring; access to modern technology, as well as financing and infrastructure support for shared economic prosperity,' he was quoted as saying by The Star. This approach ensures that entrepreneurship in Johor grows across all layers of society, contributing to economic resilience as well as innovation within the JS-SEZ. Currently, Maybank has a strong physical presence in Johor, with 71 touchpoints across branches and service centres, further reinforcing its capacity to deliver accessible support to local businesses. Read also: Johor ramps up cross-border tourism ties with Singapore ahead of VJY 2026
The Sun
22-04-2025
- Business
- The Sun
Maybank, PUJB join forces to support Johor entrepreneurs with focus on JS-SEZ
PETALING JAYA: Malayan Banking Bhd (Maybank) and Perbadanan Usahawan Johor Sdn Bhd (PUJB) have entered into a memorandum of understanding (MoU) to collaborate on strengthening support the state's entrepreneurs, with a particular focus on businesses, especially MSMEs, aligned with the Johor-Singapore Special Economic Zone (JS-SEZ). An MoU exchange ceremony was held recently in conjunction with the JS-SEZ Joint Business and Investment Forum, between Maybank president and group CEO Datuk Khairussaleh Ramli and PUJB CEO Mohd Radzi Mohd Amin. Both parties aim to bridge key gaps by offering tailored banking and beyond banking solutions including halal facilitation services, supply chain financing, capacity-building programmes and strategic advisory services. Khairussaleh said the collaboration underscores Maybank's commitment to supporting local entrepreneurs and to work closely with PUJB and Johor to strengthen the local MSME ecosystem. This is in line with the JS-SEZ key economic focus in efforts to ensure that local businesses will greatly benefit from new investments and economic growth. Noting that Maybank has the largest branch network in Johor and 65 years of banking presence in Singapore, he said the partnership will play a catalytic role in advancing business growth and investments in the JS-SEZ covering over 60,000 local MSME entrepreneurs who are currently part of PUJB's ecosystem. 'With JS-SEZ's focus on halal (industry), this partnership with PUJB will also contribute towards the development and positioning of JS-SEZ as the preferred regional and global halal hub. Our strong global Islamic banking experience has strategically positioned us to assist in not only providing syariah-compliant financing solutions, but also enables us access to the Halal ecosystem and marketplace for businesses,' said Khairussaleh. Since September 2023, Maybank Islamic has guided 360 MSMEs in their halal certification journey under its Halal Facilitation Programme. The programme will be extended to benefit not only local entrepreneurs but also foreign investors in the food and beverage, pharmaceutical, and cosmetics sectors who are seeking entry into the halal market. Against the promising backdrop of the growing halal industry in Malaysia, the partnership with PUJB is especially timely in the context of increasing regional economic integration and the growing demand for halal-certified products and services. By 2030, the halal industry in Malaysia is expected to expand to US$113.2 billion (RM500 billion) with a contribution of 8.1% to gross domestic product by 2025, according to the Halal Industry Master Plan 2030. Khairussaleh said Maybank is committed to delivering on its M25+ strategic thrusts, of which one of them is to strengthen global Islamic banking leadership through a number of business drivers, and at the same time being a major player in the robust and dynamic halal sector in Malaysia and globally. Mohd Radzi said: 'PUJB is committed to leading the development of a competitive and inclusive entrepreneurial and cooperative ecosystem including empowering youth, women, and rural communities through training, mentoring, access to modern technology, as well as financing and infrastructure support for shared economic prosperity.' Maybank has already extensively been supporting key clients in the JS-SEZ strategic sectors, including data centres, infrastructure, healthcare and semiconductors. It is also spearheading regional decarbonisation efforts, including acting as sole sustainability adviser for Johor Plantations Group's RM1.3 billion sustainability-linked sukuk, the world's first in the plantation sector.
