The Maybank Group has recorded a profit after tax of RM1.94 billion for the nine months period ended March 2005, an 8.9% increase from the RM1.78 billion registered in the previous corresponding period ended March 2004.

Profit before tax for the period rose 6.2% to RM2.69 billion from RM2.53 billion in the previous corresponding period.

For the quarter January-March 2005, the Group recorded a marginal increase in net profit to RM686.7 million from RM683.9 million in the January-March 2004 quarter.

Maybank President and CEO Datuk Amirsham A Aziz said that the results for the period was aided mainly by an improvement in overall fund-based income, with significant growth seen in Islamic banking operations which registered a 39.4% increase compared to the nine months ending March 2004. Non-interest income for the nine months grew 22.3% to RM1.67 billion compared to RM1.36 billion previously. However for the January-March 2005 quarter, non-interest income declined compared to the previous corresponding quarter of January-March 04, during which there was significant write-backs in the provisions for diminution in value of investments held at that time.

Loans growth for the Group in the nine months period (after adjusting for NPLs written off and the impact of higher Singapore Dollar exchange rate) accelerated to an annualized rate of 8%, with strong growth seen in the consumer and SMI segments. In addition, domestic loans to large enterprises recorded a turn around with an annualized growth rate of 3.1%.

In the retail sector, mortgages grew at an annualized rate of 10.8%, domestic automobile financing rose 16% while card receivables were up 11.2%. Loans to SMIs also continued to expand strongly by 13% while domestic trade finance grew 24.8%.

The Group's asset quality remained relatively stable during the quarter under review with the net non-performing loan (NPL) ratio at 5.88% at end March 2005.

Provisioning for the nine months period, however, recorded an increase to RM513.5 million compared to RMRM349.2 million in the previous corresponding period mainly due to lower recoveries. There was also a write-off of RM55.3 million in respect of security value of NPLs aged more than 9 years and above.

The Group's total asset base continued to grow in the nine months period, reaching RM187.3 billion from RM179.5 billion in June 2004. Deposits from customers also expanded to RM126.2 billion from RM123.4 billion while shareholders' equity rose to RM15.8 billion from RM14.6 billion in June 2004.

The overall performance of the Group subsidiaries was mixed during the nine months period to March 2005.

Overall, the Group's overseas operations, including Singapore, recorded higher operating profits. In addition, the Labuan offshore banking unit saw its profit surge by over 35%.

The investment banking group, however, recorded a decline in results due to lower profits recorded by both Aseambankers and Mayban Securities. This was partly offset by Mayban Discount which reported a higher profit.

In the insurance business sector, the general insurance business registered an increase in pre-tax profit while the life and takaful sectors saw a decline due to lower investment income. The asset management group recorded a marginal increase in profit aided by a gain in disposal of investments by Mayban Venture Capital.