Maybank net profit down 9.2% to $415.7m in Q2

Fee-based income rose, but group braces for expected credit losses.

Maybank has reported a net profit of over $415.78m (RM1.86b) in Q2, 9.2% lower than the $455m (RM2.04b) registered in Q1 2022, mainly owing to higher net impairment charges booked in the second quarter. 

Net operating income during the period rose by 10.7% to $1.52b (RM6.83b), thanks to steady reopening of economies, which in turn helped boost fee-based income by 25.1%. Net fund based income also rose by 6.8% on the back of healthy loan growth.

However, this was offset by the group deciding to increase expected credit loss for loans and securities to $259.27m (RM1.16b) as “a pre-emptive measure to mitigate any potential need arising from heightened geopolitical events,” Maybank said in an announcement. 

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Maybank officials said that the outlook for banks remains “clouded by economic and geopolitical uncertainties,” and will continue to be impacted by global economic volatility. 

Group President & CEO Dato’ Khairussaleh Ramli, said that Maybank has emerged “even more  resilient post-pandemic.”

“We will remain disciplined in maintaining our strong liquidity and capital positions which have given us  the ability to navigate through the difficult operating environment. At the same time, we are committed  to supporting our customers through the current recovery phase, particularly as we are faced with a  rising interest rate environment,” CEO Dato’ Khairussaleh Ramli said.

“We will also be ramping up our digital capabilities regionally and driving our sustainability agenda as these will be key in fulfilling our growth agenda,” he added.