Malayan Banking (MAYBANK) Q3 2024 earnings summary

Executive summary

• Net profit for the nine months ended 30 September 2024 rose 8.5% year-over-year to RM7.56 billion, driven by strong net operating income, non-interest income, and core fee growth.

• Net interest income and Islamic Banking income increased 4.3% year-over-year to RM15,784.3 million, while insurance/takaful service result surged 249.9% to RM931.8 million.

• Profit before tax increased 7.4% year-over-year to RM10.29 billion, with net operating income up 8.7% to RM22.15 billion.

• Return on equity stood at 11.1%, up from 10.7% a year ago.

• Group maintained robust liquidity and capital positions, with CET1 ratio at 14.72% and total capital ratio at 17.90%.

Financial highlights

• Total operating income for the nine months ended 30 September 2024 was RM23,830.3 million, up from RM21,478.5 million year-over-year.

• Non-interest income surged 26.0% year-over-year to RM7.49 billion, with core fees up 13.4%.

• Net fund-based income increased 1.5% YoY to RM14.66 billion, with loans growing 4.8% year-to-date annualised.

• Cost-to-income ratio rose slightly to 48.6% from 47.9% YoY, as operating costs increased 10.3% to RM10.77 billion.

• EPS rose 8.4% YoY to 62.6 sen.

Outlook and guidance

• The Group targets a return on equity (ROE) of 11% for FY2024.

• Regional GDP growth is expected to be robust, with Malaysia forecasted at up to 5.2%, Singapore at up to 3.5%, and Indonesia at 5.1% for 2024.

• Loan growth to be supported by robust domestic demand and investment, with NIMs expected to stabilise.

• Credit costs anticipated to remain accommodative amid stable asset quality.

• Focus remains on super-growth areas such as wealth management, bancassurance, and global banking mid-market segment.