Malaysian banks' pre-tax profit hits $9.04b in 2018

Sector earnings grew at a slower pace due to higher MFRS9 provisions.

The pre-tax profits of commercial banks in Malaysia inched up 1.5% to $9.04b (RM36.82b) in 2018 from $8.67b (RM35.32b) in the previous year as banks set aside higher provisions under impairment rules for the implementation of MFRS 9, according to central bank data.

Also read: Malaysian bank loan growth up 5.6% in 2018

As a result, capital ratios fell in 2018 compared to the previous two years and annual return on assets and equity also slowed down although Bank Negara Malaysia waved off concerns.

“The impact from provisions was, however, cushioned by the regulatory reserves which banks have been required to maintain since 2010. Financing margin (net of impairment provisions and operating costs) edged marginally higher, with a majority of banks reporting lower costs of operations,” the central bank said.

Interest income rose 8.8% YoY to $27.60b (RM112.47b) in 2018 from $25.15b (RM102.49b) in the previous year. Islamic banking pre-tax profit similarly rose by 12.88% to $1.88b (RM7.67b) over the same period.

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit