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Maybank Indonesia reports higher operating profit
PETALING JAYA: Improvement in fee-based income, sustained strategic cost management and increased net interest income raised Maybank Indonesia’s operating profit by 2% for the nine-month period ended Sept 30,2019.
It recorded an operating profit before provisions to 3.1 trillion rupiah (RM923.43mil). The bank’s profit after tax and minority interest (Patami) however, stood at 1.1 trillion rupiah (RM327.67mil), weaker than what was achieved for the same period last year at 1.5 trillion rupiah.
This was due to an increase in loan loss provision as the bank took a conservative stance in setting aside provision for a few accounts in the commercial and corporate segments which were impacted by weaker financial performances.
Maybank Indonesia, which is a 98.54% held entity of MALAYAN BANKING BHD 
(Maybank), saw a strong growth of 23.2% in fee-based income to 1.9 trillion rupiah up to September 2019, as compared with 1.5 trillion rupiah for the same period last year.
This is attributable to the global market related fees, tax refund, loan administration, loan recovery, and bancassurance as well as other services provided by the bank.
Net interest income rose 1.4% to 6.1 trillion while net interest margin (NIM) declined to 5% from 5.2% in September last year. On a quarter-on-quarter (q-o-q) basis, its NIM was higher compared with the 4.8% that was recorded in June.
Maybank Indonesia said this was due to its ongoing efforts to improve loan yield and reduce cost of funds during the third quarter of the year.
Customer deposits increased 4.3% to 115.6 trillion rupiah for the nine-month period while its loan-to-deposit ratio recorded a healthy 96.3%.
Liquidity coverage ratio stood at 169.7%.
Maybank group president and CEO and Maybank Indonesia president commissioner Datuk Abdul Farid Alias said the bank is encouraged that despite the uncertainties in the global economy, Maybank Indonesia continues to register growth at the operating level.
“This is a result of its prudent approach and focusing on quality, as well as disciplined effective management of costs and liquidity.
“This will remain our key areas of focus as we seek to enhance value creation for all our stakeholders and at the same time seize opportunities for future growth.
“We intend to drive our digital transformation agenda more aggressively so that the Bank can expand its customer base in a cost effective manner and increase its market share in the country, ” he said.
Source: https://www.thestar.com.my/business/business-news/2019/10/30/maybank-indonesia-reports-higher-operating-profit#gwZO8f4SjwZQLBZ3.99