Maybank Credit Disbursement Grows 11.9 Percent In Semester I-2024

Rupiah (Photo: Antara)

JAKARTA - PT Bank Maybank Indonesia Tbk noted that credit disbursement reached Rp123.03 trillion in the first semester of 2024. This amount grew 11.9 percent compared to the same period the previous year at Rp109.97 trillion.

Maybank Indonesia President Director Steffano Ridwan said that Maybank has managed to record higher credit growth in all major business segments in the first half of 2024. This growth is in line with double-digit industrial credit growth.

"In the midst of various challenges, the Bank has succeeded in improving its intermediation business performance by capturing various growth opportunities through the implementation of the'super growth' strategy supported by our ongoing efforts to strengthen the synergy of One-Maybank," Steffano said quoting Antara.

Maybank recorded a growth in Global Banking credit of 12.6 percent to IDR 45.64 trillion, up from IDR 40.55 trillion in the same period last year. Meanwhile, credit for the Financial Institutions (FIG) group segment rose 59.1 percent to IDR 15.68 trillion, driven by medium-term financing.

According to Maybank, domestic market demand for goods and services also encourages strong credit growth in the retail and non-retail segments of the Community Financial Services (CFS) to increase by 11.5 percent across all segments.

CFS non-retail credit portfolio grew 19.8 percent to Rp33.46 trillion. This CFS non-retailed loan is supported by the Business Banking segment which grew 25.1 percent, followed by credit growth for the SME sector (SME+) of 17.0 percent and retail MSME sector loans (RSME) of 16.7 percent.

Meanwhile, retail CFS loans grew 5.9 percent, supported by automotive retail financing for Maybank's subsidiaries, which contributed 6.7 percent growth as well as credit card and KTA businesses which grew 17.5 percent.

Amid the decline in national automotive retail sales, Maybank posted an increase in two-wheeled vehicle financing from WOM Finance by 7.5 percent and four-wheeled vehicles from Maybank Finance (MIF) by 6.5 percent.

Maybank maintains quality in lending as indicated by improving its non-performing loan (NPL) ratio to 2.7 percent (gross) and 1.7 percent (net) as of June 2024, from 3.3 percent (gross) and 2.2 percent (net). NPL balance decreased by 10.7 percent and loan at risk ratio (LAR) improved to 9.0 percent in June 2024.

In line with the positive performance in lending, Maybank recorded a consolidated asset growth of 14.2 percent to Rp189.16 trillion in the first semester of 2024 from Rp165.62 trillion in the same period last year.

In terms of funding, Maybank customer deposits grew 4.7 percent to Rp115.58 trillion in the first semester of 2024 from Rp110.38 trillion in the same period last year. Low-cost funds (CASA) increased by 10.6 percent, supported by demand deposits which grew 15.5 percent and savings which rose 3.5 percent. CASA ratio grew to 51.3 percent, from 48.6 percent previously.

Maybank noted that the cost of funds remained high due to the trend of changing interest rates, which resulted in a decrease in net interest income (NII) of banks, which decreased by 2.6 percent. Meanwhile, net interest margin (NIM) contracted 62 basis points (bps) to 4.4 percent in the first half of 2024.

Fee-based income in the first half of 2024 was recorded at IDR 820 billion, from IDR 1.09 trillion in the same period last year. With all these performances, Maybank recorded a profit before tax (PBT) for the first half of 2024 of IDR 283 billion.

Maybank's capital is in a strong position, with a capital adequacy ratio (CAR) at the level of 23.5 percent and a common equity tier 1 (CET 1) of 22.3 percent in June 2024. The risk of liquidity is also at a healthy level, with a loan to deposit ratio (LDR) (bank only) at the level of 90.8 percent and a liquid coverage ratio (LCR) (bank only) at the level of 169.6 percent in June 2024.

Meanwhile, Maybank's sharia business unit (UUS) performance was also positive with financing growing 24.3 percent to IDR 32.95 trillion in the first half of this year. In line with Maybank's funding strategy, CASA grew 14.7 percent to IDR 17.89 trillion in the same period. The CASA ratio of Maybank Syariah also grew to 51.5 percent from 43.3 percent previously.