Malayan Banking Bhd (Maybank), Southeast Asia's fourth-biggest lender by assets, posted its highest quarterly profit since its 1960s opening as vibrant economies from Malaysia to the Philippines spurred loan growth. The bank, like principal rival CIMB Group Holdings Bhd , has been expanding over the years in quick-growing Southeast Asian markets. It targets 40 percent of profit to come from overseas by 2015 from 30 percent at present.
Net profit for July-September rose 16.3 percent to 1.75 billion ringgit ($549.71 million) thanks to growth in net loans and reduction in costs, the bank, majority owned by Malaysian state pension funds, said on Thursday.
CIMB's third-quarter profit dropped 7 percent, though interest income reached its highest in 13 years.
Maybank shares were 0.9 percent higher at 0707 GMT after the results whereas the broader market was 0.3 percent lower.
"Our emphases on cost management, enhancing productivity and adherence to sound risk management practices have clearly helped us," Maybank Group Chief Executive Abdul Farid Alias said in a statement on Thursday.
Profit was also boosted by a 19 percent jump in non-interest income as the bank locked in foreign-exchange gain of 830.1 million ringgit and benefited from higher fees at its investment banking and advisory units. Interest income was 4.13 billion ringgit from 3.96 billion ringgit.