CIMB Group Holdings Bhd : Malayan Banking January-March Net Profit Rises 18%
05/24/2012| 02:00am US/Eastern
Malayan Banking Bhd (1155.KU), Malaysia's largest bank by total assets, said Thursday its fiscal first quarter net profit rose 18%, helped by higher net interest income and contribution from recently acquired Kim Eng Group.
Net profit for the three-month period ended March 31 rose to MYR1.35 billion ($430 million) compared with MYR1.14 billion a year earlier, Malayan Banking, or Maybank, said in an exchange filing with Bursa Malaysia.
Net interest income for the period rose 14% to MYR2.02 billion from MYR1.77 billion, helped by gains in loans and advances. Non-interest income expanded 52% to MYR1.41 billion due to contribution from Kim Eng Group, which it acquired last year for $1.4 billion as part of its regional expansion plan.
"Notwithstanding the global challenges, the Group expects a satisfactory financial performance for the current financial year ending Dec. 31 in view of expected growth in key Asean markets that the group operates in," the lender said in the filing.
Maybank and its smaller rival CIMB Group Holdings Bhd (1023.KU) have been acquiring regional assets in recent years, aiming to become pan-Asian banks. CIMB Group recently acquired a 60% stake in Bank of Commerce from the Philippines for MYR881 million and bought Royal Bank of Scotland Group PLC's (RBS.LN) cash equities and associated investment banking businesses in the region.
Maybank has been looking to expand in countries such as Laos, Vietnam, Cambodia, Indonesia and Thailand.
Currently, the bank's key markets are Malaysia, Singapore and Indonesia, which collectively contribute more than 90% of the group's income. "We expect to see reasonable business growth in these three markets for the financial year ending Dec. 31," it said.
-By Ankur Relia; Dow Jones Newswires; 603-2026-1233; firstname.lastname@example.org
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