27/05/2025

BIZ & FINANCE TUESDAY | MAY 27, 2025

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Maybank’s Q1 net profit rises to RM2.59 billion

MSC reports revenue of RM369.8m in Q1 KUALA LUMPUR: Tin miner and metal producer Malaysia Smelting Corp Bhd (MSC)’s revenue grew by 2% year-on-year (YoY) to RM369.8 million in its first quarter ended March 31, 2025 (1QFY25), as compared to RM362.5 million in the previous corresponding quarter (1QFY24). The growth was primarily fuelled by favourable average tin prices, increasing to RM142,000 per metric tonne (MT) in 1QFY25, from RM124,900/MT in 1QFY24. Meanwhile, net profit attributable to owners of the company (net profit) amounted to RM7.7 million in 1QFY25 (1QFY24: RM18.2 million), impacted by a one-off additional tax assessment raised by the Inland Revenue Board on Rahman Hydraulic Tin Sdn Bhd (RHT), the group’s mining subsidiary. The tin mining segment’s profit after tax (PAT) stood at RM10.8 million in 1QFY25, (1QFY24: RM14.2 million). The lower contribution was primarily due to the one-off additional tax recognised during the quarter. Operationally, the segment remained stable. Meanwhile, the group’s tin smelting segment posted a PAT of RM4.1 million in 1QFY25 (1QFY24: RM9.9 million). The moderated performance was mainly attributed to the prolonged effects of low incoming feed stemming from China’s tin ore accumulation and stockpiling. This was in response to, supply challenges at tin-producing countries, including export restrictions in Myanmar and Indonesia, as well as ongoing geopolitical tensions. “Our focus remains on driving improvements across the group from technology and manpower to logistics and cost management while also exploring opportunities in both our smelting and mining divisions,” MSC CEO Datuk Dr Patrick Yong said.

“The global economic outlook remains uncertain. Nevertheless, we expect continued growth in the markets that we operate. Key to us is to support our clients especially those in need during this challenging period. “At the same time, we continue to strengthen our position across Asean, capitalising on intra-Asean and Asean+ opportunities, particularly in trade, investment and cross-border connectivity. “Our focus on completing M25+ remains steadfast, as we continue to drive meaningful progress on our strategic thrusts – strengthening our core, accelerating digital transformation and embedding sustainability in everything we do. “We are particularly encouraged by the growing impact of our values-based solutions, which continue to create tangible benefits for our customers, while delivering positive social impact and environmental outcomes across the markets we serve.” As of the first quarter of 2025, Maybank continued to make strong progress in its sustainability commitments, surpassing key interim targets across all focus areas. The group achieved RM10.29 billion in sustainable finance for 1Q FY25, contributing to a cumulative total of RM125.46 billion – exceeding its RM80 billion target by 2025. In terms of social impact, Maybank has reached 2.12 million beneficiaries across Asean, exceeding its FY25 target of 2 million lives improved, primarily through inclusive community programmes.

inflationary pressures to RM3.74 billion from RM3.66 billion on higher personnel expenses, marketing costs and software maintenance expenses. Pre-provisioning operating profit stood at RM3.97 billion, a 1.3% increase from corresponding quarter last year. Annualised return on equity increased to 11.3%, improving from 11.1% in FY24. Net impairment provisions improved 21.7% to RM426.4 million on lower loan provisions by 17.9% to RM0.38 billion. As a result, the net credit charge-off rate eased to 23 basis points from 28 bps in the previous quarter. Gross impaired loans ratio improved by 5 bps to 1.27% compared to the same quarter of 2024, while loan loss coverage remained strong at 122.9%. Overall, the group’s asset quality remained healthy, supported by sound underwriting practices, effective recovery strategies and a diversified portfolio across key regional markets. President and group CEO Datuk Khairussaleh Ramli said Maybank continued to deliver commendable earnings growth for the first quarter, underpinned by stable net interest margins and better asset quality as well as disciplined cost management, despite ongoing global macroeconomic headwinds. The group remains resilient, supported by a focused business strategy and disciplined execution in efforts to meet the evolving needs of its customers. (72.8%); manufacture of wood & products of wood & cork, except furniture, manufacture of articles of straw & plaiting materials (75.4%); and manufacture of computer, electronics & optical products (79.2%). As compared to the fourth quarter of 2024, the capacity utilisation rate of the export-oriented industries declined marginally by 0.3 percentage points from 80.9% in the preceding quarter. In addition, the domestic-oriented capacity utilisation industries remained positive albeit at a slower rate of 0.9 percentage points to 84.5% in first quarter of 2025. Most of the industries in this segment posted the higher utilisation rates, particularly in the manufacture of fabricated metal products, except machinery & equipment (+3.4 percentage points; 86.6%); and the manufacture of other non-metallic mineral products (+1.8 percentage points; 87.3%). Nevertheless, manufacture of motor vehicles, trailers & semi-trailers recorded a decline to register a rate of 82.9%; and followed by the manufacture of paper and paper products industry with 77.9%. Factors such as low demand; insufficient supply of materials; and the repair & maintenance of machinery & equipment remained as the main cause of the under-utilisation of capacity in the manufacturing industry. As compared to the last quarter, the capacity utilisation in the domestic-oriented industries were up by 0.6 percentage points from 83.9%. The manufacturing industry capacity utilisation for seven states surpassed the national rate in the first quarter of 2025, namely WP Labuan (98.5%); Terengganu (86.7%); Johor (85.2%); Pahang (84.5%); Malacca (84.2%); Selangor (83.6%); and Negeri Sembilan (83%). Whereas, the lowest capacity utilisation rate posted by Kelantan with 66.2% decreased by 3.6 percentage points as compared to the same quarter last year.

o Lender expects continued growth despite uncertain global economic outlook KUALA LUMPUR: Maybank reported a resilient performance for the financial period ended March 31, 2025 (1Q FY25) despite uncertain and volatile economic conditions, with net profit rising 4% Y-o-Y to RM2.59 billion. This was underpinned by a 1.8% growth in net operating income to RM7.71 billion. Profit before tax (PBT), meanwhile, rose by 4.4% to RM3.59 billion compared with a year earlier. The group sustained a stable net interest margin at 2.04%, supported by improved net fund-based income which increased 2.3% to RM4.95 billion. This was on the back of a 3.2% Y-o-Y loans growth across all home markets and key segments. Notwithstanding this, annualised loans growth was comparatively lower at 2.2%, reflective of the current operating environment which continued to be impacted by cautious business sentiment and moderated credit demands. Non-interest income (NOII) contributing 35.8% of total income, stood at RM2.76 billion, supported by improved wealth management performance. Overhead costs expanded slightly amid PUTRAJAYA: The manufacturing industry capacity utilisation reached 81.8% rate in the first quarter of 2025, according to the Department of Statistics Malaysia (DoSM). Chief Statistician Malaysia Datuk Sri Dr Mohd Uzir Mahidin said the manufacturing industry operated at 81.8% of capacity utilisation in the first quarter of 2025, increased by 1.0 percentage points compared to the same quarter of the preceding year (Q1 2024: 80.8%). In the first quarter of 2025, he added, the sub-sectors posted capacity utilisation above 80%, with the highest rate recorded by the non metallic mineral products, basic metal & fabricated metal products sub-sector at 85.2% increased 2.3 percentage points. This was followed by the increased 2.5 percentage points in the textiles, wearing apparel, leather & footwear with a rate of 82.6%. On a quarter-on-quarter comparison, the capacity utilisation of the manufacturing industry recorded a mild declined of 0.1 percentage points (Q4 2024: 81.9%). The year-on-year increase in monthly capacity utilisation performance was recorded throughout the first quarter of 2025, which was January 2025 (81.8%; +0.9 percentage points); February 2025 (81.2%; +1.4 percentage points); and March 2025 (82.5%; +0.8 percentage points). Mohd Uzir said, “The capacity utilisation in the export-oriented industries increased during this quarter, by 1.1 percentage points year-on year to 80.6% (Q1 2024: 79.5%). The highest rate resulted in the manufacture of furniture; and manufacture of machinery & equipment n.e.c. sub-sectors, which rise by 0.4 percentage points to 88.4% and up by 2.2 percentage points to 85.9% respectively.” Nonetheless, three industries recorded the capacity utilisation below 80% namely manufacture of vegetable & animal oils & fats

Manufacturing industry capacity utilisation reaches 81.8%