KUALA LUMPUR, April 29 – Malayan Banking Bhd’s (Maybank) subsidiary in Indonesia, PT Bank Internasional Tbk (BII), posted a higher profit after tax and minority interest (PATAMI) of 255.6 billion rupiah (RM1=3,647.58 rupiah) for the first quarter ended March 31, 2015, up 33.5 per cent from 191.5 billion rupiah in the same quarter last year.
“The improved performance was achieved on the back of the bank’s discipline in pricing for both deposits and lending coupled with an intensified strategic cost management program implemented throughout the bank,” said Maybank in a statement Wednesday.
During the period, BII’s assets grew by 6.7 per cent to 149.5 trillion rupiah. Maybank said BII’s total loans increased moderately by 6.2 per cent to 107.6 trillion rupiah during the quarter, due to the slowdown in the economy and challenging business environment.
Business banking loans grew by 15.3 per cent to 41.6 trillion rupiah, while retail banking loans increased by 14.7 per cent to 41.6 trillion rupiah. The bank’s total Shariah financing surged 116.2 per cent to 7.4 trillion rupiah, while total Shariah customer deposits improved by 42 per cent to 4.6 trillion rupiah.
Commenting on the results, BII President Director, Taswin Zakaria, said the bank’s effort to re-profile its corporate customers toward higher corporate credit quality to enhance cross-sell and liquidity management business had started to bear fruits. He said the strategy aimed at ensuring alignment to the bank’s re-enhanced risk appetite and complement its payment solution business and generation of fee-based income.
Maybank said BII’s non-performing loan level during the quarter was at 2.80 per cent (gross) and 1.91 per cent (net). “BII remains cautious over loan quality as some businesses are still impacted by the weakening of the commodities and mining sectors, economic slowdown, and weakening of the rupiah,” said Maybank.
In March 2015, BII’s net interest margin increased to 4.85 per cent from 4.73 per cent recorded in March 2014, fee based income expanded by 26 per cent to 621 billion rupiah, while total capital adequacy ratio reached 15.9 per cent, with total capital of 18.4 trillion rupiah from 15.1 trillion rupiah in the previous year.