Maybank Q4'20 profit falls 37.2% YOY

Malayan Banking Bhd., or Maybank, posted a 37.2% year-over-year decline in profit for the fourth quarter of 2020, mainly due to a rise in allowances for impairment losses.

The company on Feb. 25 reported a 2020 fourth-quarter profit attributable to equity holders of 1.54 billion ringgit, down from 2.45 billion ringgit in the prior-year period. EPS fell to 13.68 sen from 21.79 sen.

Net interest income for the quarter declined year over year to 2.78 billion ringgit from 3.08 billion ringgit. Income from Islamic banking scheme operations rose to 1.67 billion ringgit from 1.59 billion ringgit, while net earned insurance premiums grew to 2.78 billion ringgit from 1.76 billion ringgit.

Total operating income grew to 8.74 billion ringgit from 7.90 billion ringgit, while net operating income fell to 6.31 billion ringgit from 6.49 billion ringgit.

Operating profit before impairment losses declined to 3.42 billion ringgit from 3.52 billion ringgit. Operating profit dropped to 1.92 billion ringgit from 3.22 billion ringgit.

The bank's net allowances for impairment losses on loans, advances, financing and other debts for the fourth quarter grew to 1.09 billion ringgit from 333.9 million ringgit in the prior-year period.

For the 2020 full year, Maybank posted a 20.9% year-over-year decline in profit attributable to equity holders to 6.48 billion ringgit from 8.20 billion ringgit. EPS fell to 57.66 sen from 73.45 sen.

The S&P Capital IQ consensus normalized and GAAP EPS estimates for 2020 were both 56 sen.

As of Dec. 31, 2020, the group's total capital ratio stood at 18.683%, down from 19.387% at Dec. 31, 2019. Over the same period, the group's Tier 1 capital ratio fell to 16.026% from 16.486%, while its common equity Tier 1 ratio fell to 15.313% from 15.729%.

The company's board declared a final single-tier dividend of 38.5 sen per ordinary share for 2020, down from the prior-year dividend of 39 sen per share. Together with a single-tier interim dividend of 13.5 sen per share, the bank's total dividend for 2020 amounted to 52 sen per share, down from the prior year's total dividend of 64 sen per share.

As of Feb. 24, US$1 was equivalent to 4.04 Malaysian ringgit.