Maybank Indonesia's 2022 Profit Declines, but Top Executives Remain Upbeat about Turnaround Plan

- 16 March 2023 14:44 WIB
Maybank Indonesia outlet
Maybank Indonesia outlet

(The story has been revised and updated to add more context and comments)

JAKARTADAILY.ID - PT Bank Maybank Indonesia Tbk (Maybank Indonesia), part of Malaysia's Maybank Group, saw its net profit decline last year, but its top executives remain upbeat about the growth opportunities in Southeast Asia's largest economy in 2023 and future years.

"2022 began with optimism and hope that the domestic economic development would recover and continue to grow. For this reason, Maybank Indonesia implemented various strategies and strategic policies in all business lines to improve and increase the performance," Taswin Zakaria, Maybank Indonesia's CEO, said in the bank's 2022 Annual Report.

"The Board of Directors believes that the performance improvements made by Maybank Indonesia can help establish a strong foundation and momentum for growth in 2023 and beyond, and contribute positively to economic growth," said the executive who has been leading the bank since March 12, 2014.

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"This simultaneously increases confidence that the strategic steps taken can make Maybank Indonesia a more qualified post-pandemic entity," said the banker, who has a strong background in global financial markets.

Citing its consolidated financial results that ended on December 31, 2022, Maybank Indonesia's net profit declined to Rp 1.53 trillion ($98.93 million) in 2022 from Rp 1.70 trillion in the previous year. Its Profit before Tax, or PBT, dropped 11.03 percent to Rp 2.04 trillion.

The consolidated data includes the lender and its two subsidiaries, PT Maybank Indonesia Finance (Maybank Finance), a car loan financier, and PT Wahana Ottomitra Multiartha Tbk (WOM), a two-wheeler vehicle financing company.

Maybank Indonesia is 45 percent controlled by Sorak Financial Holdings Pte. Ltd., and 33.96 percent by Maybank Offshore Corporate Services (Labuan) Sdn. Bhd and 18.31 percent by UBS AG London 2140724000. The public controls 2.71 percent of Maybank Indonesia.

"The main reason (for the profit decline) is due to the significant decrease in Global Markets-related fees due to the dynamics of global interest rates and market volatility," the lender said in the 2022 annual report published on the Indonesian Stock Exchange website.

"Another factor causing a slowdown in the Bank’s profit is a decrease in loan yields due to increasingly fierce competition in lending and thus impacting the Bank’s interest income,” it added.

Loans grew positively

The Bank actually posted positive growth in its consolidated loans as the market in Indonesia recovered during the year despite the impact of global market volatility.

It managed to maintain the quality of its assets, along with the 17.8 percent reduction in provision fees to Rp1.3 trillion.


Editor: Suksmajati Kumara


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