The operating profit of the
Maybank Group (i.e. profit before tax and provisioning) has hit
the RM4 billion mark for the first time, reaching RM4.32 billion
for the year
ended June 2005, up 12.2% from RM3.85 billion the previous
year.
Group pre-tax profit rose to RM3.49 billion
for the year, 4% higher than the RM3.36 billion recorded last
year. Profit after tax rose 3.2% to RM2.5 billion from RM2.42
billion previously.
The Group's performance translated into a gross
return on equity of 22.5% for the year compared to 23.9% previously.
Earnings per share rose to 68.4 sen compared to 67.3 sen in June
2004 while net tangible assets grew by 8.6% to RM4.41 from RM4.06
last year.
The Board has decided once again to reward its
shareholders with a final dividend of 25 sen per share and a special
dividend of 35 sen per share less 28% income tax respectively.
This brings the total dividend for the financial year to 102.5
sen per share, after including the interim dividend totalling
42.5 sen per share. This is in line with the Group's capital management
strategy to maintain its capital at an efficient level. Notwithstanding
the proposed final dividend payout, the resultant Bank's Capital
Adequacy Ratio is well above the statutory requirement, at 12.6%.
The Group has therefore taken the decision to
adopt a more aggressive loan write-off policy, by writing off
the full collateral value of Non-Performing Loans (NPL) aged 7
years and above, as well as 50% of the collateral value of NPLs
aged between 5-7 years. This amounted to RM708.1 million for the
year. In view of this, the Group has decided to reduce the level
of General Provisions (GP) from 2.5% of total Risk Weighted Assets
previously, to 2% in the year under review. The net NPL ratio
of the Group now stands at 4.93% in June 2005 from 5.96% in June
2004.
However, for the year, there was an increase
in loan loss and provisions to RM823.8 million from RM494.5 million
previously. This can be attributed to the following factors:
•
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a shortfall of RM50.7 million
from the more aggressive policy of writing off of NPLs, even
after offsetting the reduction in GP |
•
|
|
additional GP of RM181.4 million required
to support the expanded risk weighted asset base of the Group
|
•
|
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additional provisioning of RM162.4 million
for share margin financing of selected counters which experienced
a sharp drop in value during the last quarter of the financial
year. Enhanced risk management initiatives have since been
introduced in this situation to reduce the risk of re-occurrence.
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Factors influencing the results
In elaborating on the results in Kuala Lumpur
today, Maybank President and CEO, Datuk Amirsham A Aziz said that
it was achieved despite significant pressure on interest margins,
increasing competition and challenging market conditions.
He added that overall, both fund-based income
and fee-based income expanded. Net fund-based income comprising
net interest income and gross income from Islamic Banking operations
increased by 6.1% over that of the previous corresponding period
while non-interest income expanded by 19.6%.
Income from Islamic Banking operations grew
36.2% to RM711 million, driven mainly by higher demand for hire
purchase (+30.6%), trade bills (+31.9%) and term financing (+22.8%).
The Group remains a leader in Islamic banking, holding a 57.3%
market share for trade bills, 43.4% share for home financing and
17% share for hire purchase. Overall market share for total Islamic
financing was 28.3% while that for deposits was 18.3%.
Loans growth for the Group expanded by 9.8%
for the year compared to 7.1% last year. This was a result of
growth in consumer, SME and corporate segments arising from a
concerted and focused marketing strategy.
For the Malaysian operations, corporate loans
recorded a turnaround in the year with a growth of 3.9% compared
to a decline of 4.9% in the previous year. Growth in trade financing
surged to 29.6% this year from 18% previously, while loans to
the SME sector expanded by 13.9% in the year. In the consumer
segment, home mortgages rose 11.5% while automobile financing
grew by 15.8% and credit card receivables by 9.1%.
Performance of overseas operations &
subsidiaries
The performance of the Group's overseas operations
and major business segments continued to record improvements with
the exception of the stock broking company.
The overseas operations saw a 20.4% rise in
revenue to RM1.5 billion from RM1.24 billion last year. The main
contributor was the Singapore operations which recorded a 20.9%
jump in revenue to RM914.7 million from RM756.5 million previously.
This was achieved on the back of stronger loan growth and fee
based income.
Revenue for the investment banking segment grew
9.9% to RM547.7 million in the year under review. This was attributable
to increases in fund-based and fee income as well as from sale
of dealing securities at Aseambankers and Mayban Discount, although
Mayban Securities recorded lower brokerage income on the back
of lower industry volume.
Revenue of the insurance business segment grew
by 4.5% to RM324.7 million from RM310.7 million previously, arising
from improved net premium earned.
The results of major subsidiaries/ business
segments were as follows:
| Subsidiaries |
Profit
before tax for
Year ended 30 June 2005
(RM million) |
Profit
before tax for
Year ended 30 June 2004
(RM million) |
| Aseambankers Malaysia Berhad |
109.3 |
107.7 |
| Mayban Discount Berhad |
77.1 |
45.5 |
| Mayban Securities |
(63.5) |
54.5 |
| Mayban General Assurance |
88.2 |
74.4 |
| Mayban Life Assurance |
28.3 |
9.9 |
| Singapore Operations |
187.4 |
144.2 |
| Other overseas operations |
90.6 |
73.2 |
