Islamic Finance 

Maybank Indonesia Islamic assets surge 15.3 pct, financing up 4.9 pct for H1 2019 YoY

| 30 July, 2019
 Staff Writer
Maybank Indonesia Islamic assets surge 15.3 pct, financing up 4.9 pct for H1 2019 YoY
FILE PHOTO: Customers leave a branch of Malaysia's Maybank in Putrajaya October 9, 2009. REUTERS/Bazuki Muhammad/File Photo

PT Bank Maybank Indonesia’s Islamic division reported a surge in assets, financing, and deposits for the first half of 2019 compared to the same period a year ago.

Assets were up 15.3 per cent year-on-year to 33.7 trillion rupiah ($2.4 billion) to constitute 18.3 per cent of the bank’s total consolidated assets, the bank said in a statement on Monday.

Islamic financing rose 4.9 per cent to 24.1 trillion rupiah with net non-performing financing level of 2.1 per cent in June 2019 compared with 1.9 per cent in June last year.

Shariah-compliant deposits surged 44.2 per cent to 27.1 trillion rupiah.

The bank attributed this large growth to several factors, including “focused efforts to increase” the customer base, and the launch of haj-related savings products.

Its financing-to-deposit ratio improved from 121.9 per cent in June 2018 to 88.5 per cent in June this year.

Overall, Maybank Indonesia’s profit after tax and minority interest dipped 18.9 per cent from 933 billion rupiah as at June 30, 2018 to 757 billion rupiah for the first half of this year.

It attributed the drop to the increase in loan loss provision as it “took a conservative stance in setting aside provision for business loans which were impacted by the continued challenging market conditions”.

The president director of Maybank Indonesia said the bank’s next “transformation journey” will focus on optimising technology.

“This will be marked by the launch of our new platform digital banking M2U and the revamp of our website,” said Taswin Zakaria.

The bank said that as of March this year, it managed 125.2 trillion rupiah of customer deposits and 183.6 trillion of total assets.

($1 = 14,028 Indonesian rupiah)

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