Maybank's NIMs see hope in 2H14F

After an unexpectedly weaker 1H14 performance.

In 1H14, Malayan Banking's (Maybank) NIMs were weaker than expected partly owing to a challenging macro environment in Indonesia, where NIMs fell by ~60bp due to stiff competition for deposits from midsized franchises like BII.

According to a research note from Nomura, another reason was the downward repricing of the mortgage portfolio. The average yield on Maybank’s mortgage book is 4.9-5.0% vs. new bookings at ~4.3% (prior to the rate hike).

Rounding up the reasons were strong loan growth in Singapore (19%) where NIMs are low, and competition for deposits in Malaysia just prior to the OPR hike in July.

Following the OPR hike, Maybank took the opportunity to raise lending rates by 25bp while deposit rates moved up at a slower pace of 15bp.

Encouragingly, since the interest rate hike, management has yet to see any visible signs of a slow-down in the consumer segment.

Meanwhile, for Indonesia, Nomura expects NIMs to be stable in the second-half of the year as lending rates were repriced higher towards end-1H, while deposit competition has not intensified further.

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