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As a full-service commercial bank, Maybank Philippines Inc (MPI) provides a wide array of products and services to meet the financial needs of our retail and institutional customers. Our nationwide network of 50 branches is the most extensive of any of the country’s foreign banks, 25 branches being located in Metro Manila and 25 in the key cities of Luzon, Visayas and Mindanao. With 54 onsite and offsite ATMs and 13 auto lending centres, the Bank is growing its presence in key segments of the consumer market such as auto, housing and personal loans, as well as selected segments of the corporate/commercial market.
During the year under review, profit before tax rose 48% to P250.6 million from last year’s P168.8 million. Net interest income advanced 31% to P1.4 billion while non-interest income leapt 49% to P443.8 million. Loans grew by an impressive 38%, from P14.03 billion to P19.30 billion while deposits climbed to P26.53 billion, 20% up on the previous financial year.
In April 2011, we restructured ourselves to reflect the transformation that has taken place in Malaysia. This will significantly enhance our ability to cross-sell and bundle products. Our business units are now grouped into three clusters: a Wholesale Banking Group, a Retail Business Group and an Investment & Asset Management Group.
To expand our presence in the retail customer segment, in March 2011 we successfully rolled out a credit card acquiring programme as part of the Group’s regional credit card initiative. We are actively signing up new merchants and deploying point-of-sale terminals. To enhance our customers’ banking experience, internet banking (retail suite) was launched in June 2011.
Though the economic outlook is generally positive, we expect the business environment to remain challenging, with interest rates likely to rise in response to higher inflationary pressures. Despite this, we remain optimistic about economic growth in the Philippines and will take advantage of the growing economy to increase our presence.
Maybank set up its first branch in Cambodia in 1993, with the initial objective of supporting Malaysian and Singaporean companies with business operations in Phnom Penh. We have since expanded our customer base to serve local Cambodian businesses as well.
In April 2011, we expanded our branch network by opening our tenth branch at Kampong Cham, a trading district with a population of two million. We aim to follow this by establishing an eleventh branch in Phnom Penh City by the end of 2011.
With a wide range of banking products and services on offer, Maybank Cambodia is focused on meeting the needs of our SME, commercial and corporate customers. At the same time, we are growing our retail financing portfolio, particularly with our housing loan offerings.
During the year under review, we successfully implemented Trade Connex (a web-based system which facilitates the centralised processing of trade finance transactions) and introduced Global ATMs. Another milestone was passed when loans breached the USD100 million mark in the second half of FY2011, driven by our core business of consumer and commercial lending.
In FY2012, we will capitalise on our strengths in transaction banking (especially trade finance), remittances (Maybank Money Express) and cash management. This will enable us to generate further growth, while at the same time increasing our presence in Cambodia.
In 1995, Maybank established its presence in Vietnam by setting up a branch in Hanoi, followed in 1996 by a representative office – which has since been converted into a fully-fledged branch – in Ho Chi
Minh City.
Maybank Vietnam provides full commercial and corporate banking services, with a wide range of financing and trade finance products to suit customers’ needs. Other services include remittances, treasury and foreign exchange.
During the year, Vietnam faced a certain amount of macro-economic uncertainty. The State Bank of Vietnam has taken steps to address the situation by introducing measures to curb inflation, including capping annual loans growth by banking institutions at 20%. Despite these challenges, we managed to boost our trade financing and cash management capabilities in the area of business banking, thereby achieving a slight growth in our loan portfolio.
We are positive about the country’s long-term economic outlook, and given Vietnam’s past track record of robust economic growth, we are confident that the current correction will be transitory.
Maybank opened a representative office in Beijing in 1993, and in 2000, opened its first full-service branch in Shanghai. Together with Maybank’s treasury centre in Hong Kong, these make up Maybank’s Greater China operations.
Our Shanghai branch provides wholesale banking solutions with a focus on Malaysian, Singaporean and ASEAN commercial and corporate customers with a business presence in China. Meanwhile, our Hong Kong branch primarily engages in wholesale banking, concentrating on corporate lending, treasury and capital markets.
Our Greater China aspiration received a major boost in May 2011, when Maybank obtained provisional approval from CBRC to operate a fully-fledged commercial banking branch in the capital city, Beijing. This will considerably enhance our ability to tap into the massive opportunities on offer, and will support the Bank’s long-term vision to build a significant presence in Greater China via local incorporation. Meanwhile, we will continue to facilitate business development between Hong Kong and China, and will simultaneously enhance our trade finance and cash management capabilities.
In addition to acting as listening posts, Maybank’s treasury centres in London and New York continued to bring the Bank business referrals and opportunities. Meanwhile, our Bahrain operation acts as our listening post in the Middle East and during the year focused on driving investment banking and boosting our treasury and Islamic banking capabilities.
With the conversion of PT Bank Maybank Indocorp into Maybank Syariah Indonesia, we aspire to expand Islamic banking beyond Malaysia. Our Papua New Guinea operations also prospered in FY2011 to register total assets growth of 24.4%, as well as a 25.9% increase in net interest income as compared to FY2010.
Looking ahead, the medium to long-term economic outlook for the emerging economies of the ASEAN nations remains positive. We aim to penetrate regional markets where we have yet to establish a presence, and at the same time boost brand awareness so as to improve our visibility among the international community.
Despite the challenging macro-economic conditions, our overseas associates of MCB and ABB continued to generate positive returns since the acquisition of 20% strategic stakes in both banks in 2008. Maybank is wholeheartedly committed to support the growth and development of both banks. Our involvement in local governance allows us to share our views with the board members in charting the future strategic directions of the banks.
With a strong command of the domestic deposit segment, MCB, the largest bank in Pakistan by market capitalisation, is the most profitable bank in Pakistan. For the half year to 30 June 2011, the bank recorded, a 32% jump in PBT to Pakisan Rupee 16.1 billion. MCB Bank was recently voted as 2011 Best Bank in Pakistan by Euromoney and 2010 Strongest Bank in Pakistan by The Asian Banker. Maybank’s continuous partnership with MCB Bank has been a success with strategic tie-ups in the areas of trade financing, remittances and Islamic banking. Strategic collaborations are ongoing, with both banks fully committed to leverage on each others’ strengths
for growth.
Since its establishment in May 1993, ABB has now become a leading Vietnamese commercial joint-stock bank. For the half year to 30 June 2011, the bank posted a PBT of Vietnamese Dong 270.6 billion. Maybank is actively supporting ABB, pursuing growth by collaboration coupled with an enhancement to ABB’s trade financing capabilities.
