If you were to ask most of the companies which are listed in Bursa exchange whether they would love to be earning RM941.73 million per quarter, the answer is a resounding yes. By the way, even the largest glove company in Malaysia, Top Glove’s super unbelievable quarterly profit for Q2 2020 is at only at RM422 million. Maybank’s Q2 2020 net profit came in at RM941.73 million. Quarter vs Quarter, Maybank’s net profit is still more than double that of Top Glove.
Then again, if compared to the time before COVID-19 and of course before the current moratorium, Maybank’s net profit has fallen by more than half. In Q2 2019, its net profit was RM1.94 billion. Let’s get to know a little bit more about what Maybank says about its latest results yeah.
Article in themalaysianreserve.com Maybank’s revenue for Q2 2020 has declined from RM13.05 billion in Q2 2020 to RM11.79 billion. It says that the weaker performance was because of the movement restriction order as well as reductions in interest rates across most of its regional markets due to COVID-19 pandemic.
The bright spot includes higher loan drawdowns, strong growth in current and savings accounts (CASA) deposits and the funding relief plans for the SME segment. Cost control was a main feature and it has managed to reduce this by 4.1% from RM2.82 billion in Q2 2019 to RM2.71 billion in Q2 2020. Net impairment losses for Q22020 rose to RM1.74 billion versus RM452.3 billion a year ago. This is a prudent stance based on forward looking assumptions. Do read the comprehensive report here: Article in themalaysianreserve.com
Banks reflect the economic condition of a country, especially if it is the largest bank in the country. When times are good, more people borrow, they earn higher profits. When times are bad, fewer people borrow and of course the profits will dip. What’s important is that the bank is pro-actively managing it. The question on everyone’s mind should be when would the recovery start and if it does start, would the profit numbers go back to pre covid-19 time. Happy thinking yeah. Nope, I do not own any Maybank shares currently.
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