KUALA LUMPUR (May 26): Malayan Banking Bhd (Maybank) reported on Thursday (May 26) that its first quarter net profit dropped to RM2.04 billion from RM2.39 billion a year earlier as revenue fell and as overhead expenses rose at a time when geopolitical tensions and market volatility impacted the operating environment.

In a statement to Bursa Malaysia, Maybank said revenue fell to RM11.91 billion in the first quarter ended March 31, 2022 (1QFY22) from RM12.22 billion a year earlier. Maybank did not declare any dividend for 1QFY22.

"[In quarterly terms] the group's profit after tax and zakat attributable to equity holders (net profit) for the 1QFY22 decreased by RM12 million to RM2.04 billion (RM2,044.9 million) against the preceding quarter ended Dec 31, 2021 (4QFY21) of RM2.06 billion (RM2,056.9 million)," Maybank said.

In a separate statement, Maybank said it has a cautious outlook owing to geopolitical tensions and market volatility.

"Maybank, Southeast Asia's fourth largest bank by assets, today said that its net profit for the 1QFY22 came in at RM2.04 billion compared with RM2.39 billion in 1QFY21, as geopolitical tensions and market volatility impacted the operating environment.

"Profit before tax for the quarter (1QFY22) was lower at RM2.97 billion from RM3.17 billion a year earlier. Although the reopening of regional economies led to a pickup in loans growth and reduced impairment charges, the market weakness mitigated this positive impact," Maybank said in the statement.

Maybank's new group president and chief executive officer Datuk Khairussaleh Ramli said in the statement that the positive trends in the group's 1QFY22 financial performance were evident across key markets despite the lingering impact of global factors on the operating environment.

"While the outlook for the remaining part of the year remains mixed at this stage, we will focus on tapping into growth opportunities across customer segments in our key markets while maintaining our capital and liquidity strength to facilitate these growth opportunities.

"At the same time, we will ensure our risk management capabilities remain robust, and cost management and productivity efforts continue. Additionally, we aim to accelerate solution roll-outs on our digital platforms to continue to fulfil customers' journeys while increasing our market penetration regionally," Khairussaleh said.

At Bursa Malaysia's 12.30pm break on Thursday (May 26, 2022), Maybank's share price settled up one sen or 0.11% at RM8.97 for a market capitalisation of about RM107.37 billion.

Maybank's latest-reported number of outstanding shares stood at 11.97 billion, according to Maybank's Bursa filing on April 14, 2022.