Maybank identifies 4 new areas to boost US operations

Malayan Banking Bhd (Maybank)has identified at least four new areas to expand into, as part of the strategy to boost its operations in the United States (US). They are, transaction banking, asset management, fixed income distribution as well as Islamic banking, it said in a statement today.

Maybank currently has a wholesale branch in New York as well as a broking presence via Maybank Kim Eng.

Maybank President and Chief Executive Officer Datuk Abdul Farid Alias said the Group intends to leverage on the expected pick-up in the US economy which will provide greater opportunities in the coming years.

He said New York is key to Maybank Group's ambition to be a regional universal bank offering distribution and access to US dollar investors.

"We believe we have a unique value proposition as we can connect and serve clients from both sides of the Pacific to meet their global needs seamlessly.

"The expanded Maybank New York operations will not only equip us to better serve customers, it will afford us greater resources to tap on for future growth. "Our aim is for Maybank to become a leading Asean bank in the Americas," he added.

Maybank 3Q profit rises 17% to RM1.8b

Malayan Banking Bhd (Maybank) reported a 17% rise in third quarter net profit from a year earlier. Profit had risen on higher interest and non-interest income, besides a better performance at its insurance, and Islamic banking units.

In a statement to the bourse today, Maybank said net profit rose to RM1.75 billion in the third quarter ended September 30, 2013 from RM1.5 billion. Revenue climbed to RM8.39 billion from RM8.01 billion.

Maybank said net-interest income and Islamic banking income had increase  on "growth in (the) group's net loans and advances (including Islamic finance)."

Non-interest income rose on "higher net foreign exchange gain of RM830.1 million and higher fee income of RM99.1 million," Maybank said.

Higher allowance for bad loans had however curbed profit growth. During the quarter, the allowance rose to RM280.33 million from RM76.59 million, Maybank's income statement shows.

According to the group, allowance for bad loans had increased due to "higher collective allowance made for the quarter ended 30 September 2013."

Meanwhile, Maybank's cumulative nine-month (9MFY13) net profit increased to RM4.82 billion from RM4.29 billion a year earlier. Revenue was higher at RM25.3 billion versus RM23.8 billion.

Maybank said it posted an annualised gross loan growth of 9.3% in 9MFY13.

Looking ahead, it said 4QFY13 loan growth is expected to track industry figures.

Loan growth is seen coming from its Malaysian and regional markets. Maybank said non-interest income from commercial banking, Islamic financial services, and insurance are also expected to sustain business momentum.

"Barring any unforeseen circumstances, the group expects its financial performance for the financial year ending 31 December 2013 to be in line with the ROE target of 15.0%," Maybank said.

EPF raises Maybank stake to 13.76%

The Employees Provident Fund (EPF) raised its stake in Malayan Banking Bhd to 13.76% with the recent purchase of 6.485 million shares.

Filings with Bursa Malaysia showed the EPF's stake had increased to 1.220 billion shares.

It purchased 1.061 million Maybank shares on Jan 29 and 2.542 million shares the next day. It bought 2.881 million shares on Feb 4.

Maybank's share price was trading between RM9.56 and RM9.63 during that period.

Good for you