Malaysia’s Malayan Banking Bhd reported on Monday a 25 per cent increase in its first-quarter net profit to RM1.28 billion, riding on the region’s economic growth.
Malaysian banks have reported healthy earnings in recent quarters, thanks to steady economic growth in the region particularly in Malaysia, Singapore and Indonesia, but weakening global economic conditions could signal rough times ahead for the lenders.
“While we remain cautious of possible impact from any weakening in external demand and will be vigilant in our monitoring, we are cognizant of areas where growth remains strong,” Maybank’s chief executive Datuk Abdul Wahid Omar said in a statement.
Maybank, the country’s top lender, also warned that net interest margins, or the difference between what a bank pays out to depositors and what it takes in from making loans, remained under pressure, falling another 23 basis points to 2.46 per cent during the quarter.
Maybank said its revenue rose 21 per cent to RM6.1 billion while profit before tax was up by a quarter to RM1.8 billion for the three months to end-September 2011.
The bank said it attributed the improved performance to better all-round contributions from its business divisions, except insurance, which saw a significant decline of 72 percent from the previous quarter.
In July this year, the bank had announced a change in its financial year end, from June 30 to December 31.
The first new financial year would end on Dec 31 2011 with a shorter 6-month period from July 1 2011 to 31 Dec 2011. - Reuters
Malaysian banks have reported healthy earnings in recent quarters, thanks to steady economic growth in the region particularly in Malaysia, Singapore and Indonesia, but weakening global economic conditions could signal rough times ahead for the lenders.
“While we remain cautious of possible impact from any weakening in external demand and will be vigilant in our monitoring, we are cognizant of areas where growth remains strong,” Maybank’s chief executive Datuk Abdul Wahid Omar said in a statement.
Maybank, the country’s top lender, also warned that net interest margins, or the difference between what a bank pays out to depositors and what it takes in from making loans, remained under pressure, falling another 23 basis points to 2.46 per cent during the quarter.
Maybank said its revenue rose 21 per cent to RM6.1 billion while profit before tax was up by a quarter to RM1.8 billion for the three months to end-September 2011.
The bank said it attributed the improved performance to better all-round contributions from its business divisions, except insurance, which saw a significant decline of 72 percent from the previous quarter.
In July this year, the bank had announced a change in its financial year end, from June 30 to December 31.
The first new financial year would end on Dec 31 2011 with a shorter 6-month period from July 1 2011 to 31 Dec 2011. - Reuters
