KUALA LUMPUR: Malayan Banking Bhd (Maybank) has posted a lower pre-tax profit of RM1.93 billion for the first quarter ended March 31, 2016 compared with RM2.24 billion reported in the previous corresponding quarter.
In a statement, the banking group said net profit for the period amounted to RM1.43 billion compared with RM1.70 billion in the same quarter in 2015.
However, net operating income for the quarter rose 8.1 per cent to RM5.39 billion, year-on-year, on the back of an 11.9 per cent increase in fund-based income to RM3.82 billion while fee-income was almost unchanged at RM1.57 billion.
At the same time, disciplined cost management efforts continued to bear fruit as income growth of 8.1 per cent outpaced overheads growth of 5.3 per cent, resulting in the group’s cost-to-income ratio improving further to 48.4 per cent from 49.7 per cent a year earlier.
The strong revenue growth and managed costs lifted the group’s pre-provisioning operating profit (PPOP) by 10.9 per cent to RM2.77 billion compared to a year earlier.