KUALA LUMPUR: Malayan Banking Bhd’s (Maybank) net profit eased eight per cent to RM1.61 billion in the third quarter to September 30 from RM1.7 billion a year ago, dragged down by its insurance and takaful divisions.

Group revenue, however, rose eight per cent higher to RM8.93 billion from RM8.28 billion in the same quarter last year.

For the nine months to September, group revenue was 4.28 per cent higher at RM26.05 billion compared with RM24.98 billion a year ago, although net profit declined 0.73 per cent to RM4.79 billion from RM4.82 billion previously.

Maybank’s insurance and takaful businesses recorded a net loss of RM268.6 million for the nine months to September, compared with a net income of RM76.1 million in the corresponding period last year.

In a statement to Bursa Malaysia yesterday, Maybank said it expects to perform in line with the industry on the back of continued loan growth momentum in consumer, small and medium enterprise and business banking segments.

“The deepening of Maybank’s business portfolio in the region is another near-term priority for the group this year. It includes improving client interface within the global banking business, providing cross-border banking solutions via Maybank Islamic business and expansion of insurance and takaful services in other markets,” it said.

Maybank said it remained proactive in capital management to support the planned strategic objectives and would continue to maintain capital levels above the regulatory minimum requirements under Bank Negara Malaysia’s Capital Adequacy Framework (Capital Components) issued on November 28 2012.

The group is confident that its common equity Tier 1 capital ratio will be well ahead of the minimum level of seven per cent (inclusive of capital conservation buffer) as required, by 2019.

On its insurance and takaful divisions, Maybank said the losses were due to higher net benefits and claims incurred, lower net earned premiums and higher tax expense of RM218.8 million, RM156.1 million and RM27.8 million, respectively.

However, this was mitigated by lower net fee and commission expenses of RM57 million.

The group’s non-interest income for the nine months recorded a decrease of RM561.5 million, or 12.3 per cent, to RM3.99 billion.

This was mainly due to lower foreign exchange gain of RM1.21 billion, lower gain on disposal of financial investments available for sale of RM310 million and lower gain on disposal

of financial assets at fair value through profit or loss of RM91.5 million.
-nstp-