KUALA LUMPUR: Malayan Banking Bhd (Maybank), Malaysia's largest bank by assets, posted on Thursday a better than expected 11.5 percent rise in fourth-quarter profit, driven by higher interest income and Islamic banking income.
Net profit for October-December was 1.93 billion ringgit ($536.63 million) compared with 1.73 billion ringgit a year ago, Maybank said in a stock exchange filing. That was better than the 1.78 billion ringgit average estimate of two analysts, according to Thomson Reuters data.
Malaysia defied sliding oil and commodities prices to grow at its fastest pace in four years in 2014, underpinned by strong construction and manufacturing activity. But it may start to feel the full brunt of weaker global oil and gas prices on its income in the months ahead, analysts say.
Maybank, on its part, cautioned that loan growth in the Southeast Asian nation will moderate to between 7 and 8 percent this year compared to 8.7 percent in 2014, saying that reflects the softer outlook for the year and tighter lending criteria instituted by regulators to curb growth in household loans.
Its own loan growth target was 9-10 percent this year, along with a return on equity of 13 to 14 percent, and deposit growth of 9 to 10 percent, the lender said.
In the fourth quarter, net interest income and Islamic banking income grew 4.7 percent year-on-year, due to higher gross loans, advances and financing, said Maybank.
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