Highlights of Malaysia's bank giants: FY23 earnings surge with diversification and innovation

Maybank, Public Bank, and CIMB have shown resilience in managing their Net Interest Margins, despite market pressures. Maybank's diversified services cushioned the impact of higher deposit costs on its NIM. Public Bank's NIM of 2.20% reflects its strong loan performance and efficient risk management. CIMB has the highest NIM at 2.22%, thanks to its focus on improving its deposit strategies and technological advancements.

With a total operating income rising by 11% YoY to 28.91 billion MYR, Maybank's strategy to diversify its income sources has paid dividends. Though the bank's NII saw a 7.5% YoY decline, falling to 12.79 billion MYR, the robust growth in other areas, including its insurance and investment arms, has helped offset this dip. Maybank's net profit surged by an impressive 17.5% YoY to 9.35 billion MYR, reflecting strong overall business performance. An ROE of 10.8% and a stable NPL ratio of 1.00% underscore the bank's prudent risk management and operational efficiency in a competitive market.

Public Bank has showcased an exceptional YoY growth in operating income of 19%, reaching 25.42 billion MYR. This indicates the bank's successful strategy in enhancing its retail and commercial offerings and its ability to attract and retain customers. Although experiencing a slight 1.3% dip in NII, which stood at 9.05 billion MYR, the bank's net profit grew by 9% to 6.65 billion MYR. With an ROE of 13% and a NIM of 2.20%, Public Bank has demonstrated its ability to efficiently deploy its assets to generate strong returns, despite not disclosing its NPL ratio.

CIMB Group's focus on technological innovation and digital banking has propelled its operating income up by 5.9% YoY to 21.01 billion MYR. Though the bank faced a 3.5% YoY decrease in NII, amounting to 14.63 billion MYR, its net profit witnessed a significant increase of 28% YoY to 6.98 billion MYR. This growth, coupled with an ROE of 10.7%, a competitive NIM of 2.22%, and a CET 1 Ratio of 14.5%, demonstrates CIMB's commitment to leveraging technology to enhance its financial services and customer engagement.