JAKARTA - PT Bank Maybank Indonesia Tbk distributed total loans of IDR 122.28 trillion during the first quarter of 2024 or grew 14 percent from the previous IDR 107.22 trillion in the same quarter of the previous period.
"In the first quarter of 2024, we posted credit growth of 14.0 percent across all segments amid improving growth momentum," said Acting President Director of Maybank Indonesia Steffano Ridwan quoting Antara.
The implementation of Strategic Programmes (SP) 7 'Uplift Indonesia' which is integrated with the M25+ strategy of the Maybank Group has also boosted credit performance in the first three months of this year.
Global banking loans in Maybank Indonesia grew 18.2 percent to IDR 46.42 trillion from IDR 39.29 trillion. This is supported by large loan corporate (LLC) credit growth of 5.3 percent to IDR 9.82 trillion and financial institution group loans (FIG) grew 86.8 percent to IDR 16.50 trillion.
Maybank Indonesia also noted credit growth in the retail and non-retail segments, grouped into community financial services (CFS), which rose 11.7 percent to Rp75.86 trillion.
In detail, retail credit or called Retail CFS grew 9.6 percent, mainly supported by credit cards and KTA which grew 20.5 percent and automotive credit for subsidiaries grew 14.6 percent.
Meanwhile, non-retail loans or Non-Retail CFS grew 14.6 percent to Rp31.90 trillion. This was supported by business banking commercial loans which grew 19.8 percent, small medium enterprises (RSME) retail loans grew 12.9 percent, and small medium industry (SME+) loans grew 8.9 percent.
The company noted that the increase in lending had pushed total consolidated assets that grew 10.0 percent to Rp177.65 trillion in the first quarter of 2024 from the previous Rp161.54 trillion in the first quarter of 2023.
Maybank Indonesia's asset quality is also well maintained. This was followed by an improved non-performing loan (NPL) ratio to 2.7 percent (gross) and 1.7 percent (net) in March 2024. The NPL balance fell 10.1 percent and loan at risk (LAR) improved to 8.3 percent in March 2024.
In terms of funding, total customer deposits at Maybank Indonesia were recorded at IDR 117.22 trillion as of March 2024. This number increased by 13.1 percent from IDR 103.61 trillion in the same period last year.
Cheap funds (CASA), consisting of demand deposits and savings, increased by 8.3 percent. Meanwhile, time deposits rose 18.4 percent. According to the company, the ratio of CASA Maybank Indonesia remained healthy at 49.7 percent in March 2024.
Maybank Indonesia posted a higher interest income of 10.7 percent. However, due to the increasing cost of funds, net interest income (NII) decreased by 3.0 percent while the net interest margin (NIM) contracted by 61 bps YoY.
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In the first quarter of 2024, non-feud-based income was recorded to be lower to IDR 370 billion.
According to the company, this is related to the weakening of the Rupiah currency which is influenced by changes in trends and projections for the movement of global interest rates and geopolitical influences.
The operating income before the reserve (pre-provisioning operating profit/PPOP) was recorded at IDR 609 billion.
The company said that Maybank Indonesia took proactive steps by setting aside an reserve of IDR873 billion for certain corporate accounts that have the potential to experience a decline in asset quality. Thus, the loss before tax was recorded at IDR 265 billion.
Maybank Indonesia ensures that the capital adequacy ratio (CAR) remains strong at 25.7 percent in March 2024. Loan to deposit ratio (LDR) on a bank basis only improves to 88.7 percent and bank only liquid cover ratio (LCR) is maintained at a healthy level of 210.8 percent.
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