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The Star
27-05-2025
- 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%.
The Star
26-05-2025
- Business
- The Star
Maybank posts higher 1Q net profit of RM2.59bil
KUALA LUMPUR: Malayan Banking Bhd (Maybank) reported a net profit of RM2.59bil in the first quarter of 2025 (1QFY25), an improvement from RM2.49bil in the year-ago quarter, on the back of increases in net fund-based income and non-interest income. During the quarter under review, the group said revenue fell to RM16.87mil from RM18.35mil in the year-ago quarter. MORE TO COME
The Star
06-05-2025
- Business
- The Star
Hartalega's net profit surges to RM74.54mil in FY25
KUALA LUMPUR: Hartalega Holdings Bhd 's performance in the financial year ended March 31, 2025 (FY25) - which registered a five-fold jump in bottomline - affirms encouraging signs of recovery for the glove sector. During the year, the glove maker posted a net profit of RM74.54mil, as compared to RM12.5mil in the previous year. It reported revenue of RM2.59bil, up from RM1.84bil in FY25. Earnings per share rose to 2.18 sen from 0.37 sen previously. In the fourth quarter of the year alone, Hartalega recorded a net profit of RM14.48mil, slightly lower than RM14.9mil in the year-ago quarter, on revenue of RM611.55mil, up from RM530.34mil in 4QFY24. The improved revenue was owing to higher sales volume and stronger average selling prices. However, the group said net profit was pulled lower by higher non-operating expenses recognised during the quarter under review. On outlook, CEO Kuan Mun Leong said the operating landscape remains volatile and competition in the global rubber glove market continues to be high with continued oversupply and pricing pressure. He also expects US demand to remain moderated over the near term due to earlier front-loading activities as well as the ongoing trade uncertainties. However, the escalating US-China tensions, while impacting the global trade landscape, could also serve as a catalayst for Malaysian manufacturers to regain export market share in the US, he added. 'Taking a long-term view, the rubber glove industry's prospects remain positive. "Global demand has already recovered beyond pre-pandemic levels and is set to grow further on the back of rising healthcare needs, heightened hygiene awareness and increasing usage across both medical and non-medical sectors," said Kuan in a statement.
