Photo: A branch of Maybank Islamic in Kuala Lumpur on October 2, 2019. SALAAM GATEWAY/Emmy Abdul Alim

Islamic Finance

Malaysia’s Maybank Islamic banking third-quarter net profit up by 4.65%

Malaysia’s Maybank posted 4.65% increase in net profit for its Islamic banking business for the third-quarter compared to the same three months last year.

Maybank reported 634.47 million ringgit ($152 million) in profit after tax and zakat for its Islamic banking business for July-September versus 606.26 million ringgit for the corresponding quarter in 2018, it reported in a filing with Bursa Malaysia on Thursday (Nov 28).

This percentage growth is higher than for its overall Group’s net profit, which nudged up 1.7% to 2.04 billion ringgit compared to 2.01 billion ringgit.

Income from its Islamic Banking Scheme rose by 6.47% to 1.49 billion ringgit ($357 million).

Shariah-compliant assets grew by 6.58% to 240.88 billion ringgit ($57.73 billion) at the end of September from 226.01 billion ringgit at December 31.

This accounted for 28.54% of the Group’s total assets, which increased by a lower 4.58%.

Shariah-compliant net financing reached 186.52 billion ringgit, a growth of 7.01% from the end of 2018.

74.22%, or 207.25 billion ringgit, of total financing of 279.22 billion ringgit used murabahah contracts.

On the liabilities side, customer deposits rose by 12.52% to 166.29 billion ringgit for the nine months ending September 30.

However, investment accounts dropped to 20.14 billion ringgit from 23.57 billion ringgit.

Overall, Maybank Group made a net profit of 2.04 billion ringgit, a nudge up of 1.7% compared to the third-quarter of 2018.

Maybank is Malaysia’s biggest bank by assets.

It said it expects its financial performance for 2019 to be “satisfactory”.

($1 = 4.173 Malaysian ringgit)

© 2019 All Rights Reserved