Maybank Indonesia announced its Consolidated Financial Results for the first half ended 30 June 2022, with Profit before Tax (PBT) of Rp944 billion, an increase of 23.9% from Rp762 billion, and Profit after Tax and Minority Interest (PATAMI) of Rp663 billion, up 30.0% from Rp510 billion in the previous year.
The rise in both PBT and PATAMI came from a gradual improvement in the economy in the first half of 2022, contributing to the loan demand increase. The results were mainly from reduced loan provisions due to improved loan quality and supported by loan growth, lower cost of funds and well-maintained overheads.
The Bank’s Net Interest Income (NII) stood at Rp3.48 trillion, backed by growth in retail and corporate loans, lower cost of funds, and strong growth in CASA, resulting in the Bank’s Net Interest Margin (NIM) expanding 18 bps to 4.6% in the first half 2022.
The Bank registered fee-based income, excluding Global Market fees, at Rp818 billion, which rose 5.2% from Rp777 billion in the previous year, attributed to loan and retail business related fees and fees from subsidiaries. However, the Bank's Global Market fees declined 69.2% due to global interest rate environment and volatile markets, resulting in a decrease in total fee income by 8.4% Y-o-Y.
As business and trade activities resumed in the first half of 2022, the Bank's total outstanding loans grew 8.1% to Rp106.81 trillion from Rp98.80 trillion in the previous year. This is the first increase in loans since the pandemic, led by the Global Banking segment, which grew 16.7% to Rp42.09 trillion from Rp36.07 trillion in the previous year. In addition, the Global Banking segment also grew 19.4% Q-o-Q.
The total outstanding loan in the Community Financial Services (CFS) segment grew 3.2% to Rp64.73 trillion from Rp62.73 trillion in the previous year. The CFS Retail loan segment grew 9.0% across all retail segments to Rp35.95 trillion from Rp32.98 trillion, following improvements in the consumers' purchasing power in the first half of 2022. The Mortgage segment continued to grow 8.5% to Rp15.65 trillion from Rp14.42 trillion, and the subsidiaries’ automotive financing also grew 10.8%.
Non-retail loan specifically for retail small and medium enterprises, RSME grew 5.0% to Rp12.65 trillion from Rp12.04 trillion, backed by the improvement in the economy. However, the CFS Non-retail segment declined 3.3%, as the Bank took steps to rebalance its non-retail loan portfolio and implemented measures when disbursing loans, ensuring the loans are effective for business continuity and maintaining customer commitments.
The Bank's total customer deposits grew 3.9% to Rp111.66 trillion from Rp107.43 trillion in the previous year. The Bank's CASA grew 22.3%, of which Current Account increased 34.6% while Savings Account increased 8.6%. Time Deposits, however, declined 9.3% to Rp56.53 trillion from Rp62.36 trillion in line with the Bank's strategy to focus on low-cost funding by leveraging the Bank's digital services to acquire customer deposits. The Bank's CASA ratio continued to improve and was higher at 49.4% in June 2022 compared to 41.9% in June 2021.
The Bank remained conservative in its approach to ensure asset quality is sound by setting aside pre-emptive provisioning across all business segments, including for Shariah financing, whilst continuing to monitor its loan portfolios.
The Bank's digital banking platform, M2U, registered an increase in transactions of 18.2% to approximately 8.6 million in the first half of 2022, from more than 7.3 million transactions in the previous year. The transaction value grew 23.7% to Rp44.95 trillion from Rp36.33 trillion in the previous year, followed by a 600% growth in new customer acquisitions through the digital platform.
Meanwhile, M2E transactions increased by 42.7% to more than two million transactions in the first half of 2022. The total value of financial transactions made through M2E was at Rp348.18 trillion in the first half of 2022, a growth of 42.9% from Rp243.71 trillion in the previous year. M2E also recorded growth in number of active users by 14.5% to 2,827 users from 2,469 users in first half 2021. This led to a growth in corporate funding through M2E by 1.4% to Rp24.36 trillion.
The Bank introduced new features in M2U, including Digital Wealth, allowing customers to manage assets, from deposits, loans to investments. Recently, the Bank also introduced other features such as mutual funds switching, transfer funds in foreign currency, and e-commerce payment. Meanwhile, for corporate customers, M2E is now equipped with bill payment functions, allowing corporate customers to pay utility bills.
Maybank Indonesia Shariah Banking Unit's operating profit before provision increased 11.1% to Rp382 billion as financing grew 5.3% to Rp26.04 trillion from Rp24.74 trillion, and lower cost of funds as CASA grew significantly.
Total Shariah Banking Unit’s assets grew 13.2% to Rp41.14 trillion from Rp36.35 trillion, accounting for 26.2% of the Bank’s individual assets.
Non-Performing Financing (NPF) ratio improved at 2.9% (gross) and 2.3% (net) in June 2022 from 3.8% (gross) and 2.6% (net) in June 2021 as total Shariah financing grew. Financing-to-Deposit Ratio (FDR) stood at a healthy level of 82.0%.
Shariah Banking Unit’s CASA grew significantly by 43.7% to Rp11.91 trillion in the first half 2022 from Rp8.29 trillion in previous year. The increase in CASA is in line with the Bank’s strategy in maintaining strong liquidity by optimising low-cost funding.
The Shariah Banking Unit continued to take conservative measures to safeguard its asset quality by setting aside higher provisioning for specific accounts, which led to a drop in PBT to Rp124 billion in the first half of 2022 from Rp294 billion in the previous year.