Maybank reports $1.93b net profit for FY2021

Q4 2021 net profit rose to $330m.

Maybank has reported a 24.9% year-on-year (YoY) increase to $1.93b in its net profit for the year-ended 31 December 2021, with profit before tax (PBT) rising 25.8% YoY to $2.60b.

The increase in net profit was driven by improving regional economic outlook that supported the group’s higher operating income and reduced impairment losses by 36.6% as it had taken pre-emptive provisioning for potentially bad loans and financial investments since the pandemic started in 2020.

Net operating income grew 2.8% to $6.06b, tracking Malaysia’s economic growth of 3.1% in 2021. This was achieved on the back of a 14.6% YoY increase in total net fund based income to $4.55b as a result of stronger loan growth as well as robust improvement in current account and savings accounts (CASA), which helped net interest margin (NIM) expand 22 bps YoY. It was, however, partially offset by a 21.6% decline in net fee based income to $1.52b mainly from lower net gain in investment income and marked-to-market losses on the fixed income portfolio held by its insurance unit due to rising yields.

Growth in costs, meanwhile, was contained at 2.6%, well below income growth, resulting in pre- provisioning operating profit coming in higher at $3.32b from $3.23b a year ago.

In its fourth quarter for 2021, the Group recorded a 36.5% rise in PBT to $540m compared to the previous year, benefitting from the pick up in regional economies during the period. Net profit meanwhile, rose 33.8% to $490m.

A similar trend was also seen in the QoQ performance with net profit growing 22.1% to $490m Q4 versus $400m in Q3 as net impairment losses fell 40.6% to $159.28m whils net operating income grew 2.4% to $1.50b.

“Our financial strength and resilience has been a result of our focus in building strong capital, liquidity, credit and risk management practises Group-wide over the years, which has helped us overcome this pandemic and enabled us to support our customers in need. While lingering COVID-19 concerns remain in 2022 due to the recent rapid increase in cases, the upside is that many have been fully vaccinated and we are learning to live with the new virus variants. Maybank will remain steadfast in pursuing its M25 ambitions to enable meaningful and lasting value creation,” Maybank Group president & chief executive officer Dato’ Sri Abdul Farid Alias said.

You may also like:

BEA closes 2021 with 45.8% surge in attributable profits

OCBC closes 2021 with 35% surge on profits

Thailand banks’ loans grew 6.5% in 2021