As we delve into the financial performance of Malaysian banks for the third quarter of fiscal year 2024, it's essential to highlight the key metrics that portray the health and strategic direction of these institutions. This analysis covers Malaysia's leading banks—Affin Bank, AmBank Group, Bank Islam, Maybank, Alliance Bank, Hong Leong Bank, CIMB Group Holdings, RHB Bank, and Public Bank—offering a snapshot of their revenue, profitability, and fee-based income.
Malaysia's leading banks have demonstrated significant resilience and growth in Q3 FY-2024, with overall net revenues rising by 11.88% YoY, from USD 4.6 billion to USD 5.1 billion. This highlights strategic adaptation amid economic challenges, offering valuable lessons for banks across the APAC region.
Exhibit 1: Net revenue of top Malaysia banks
Affin Bank
Affin Bank has achieved a remarkable 27.45% YoY increase in net revenue, growing from USD 108.1 million in Q3 2023 to USD 137.8 million in Q3 2024. This significant rise is driven by a 19.19% increase in interest income and a 17.71% growth in loans and advances.
Malaysia's top banks registered a solid 14.84% YoY increase in net profits, growing from USD 1.8 billion in Q3 FY-2023 to USD 2.1 billion in Q3 FY-2024.
Exhibit 2: Net Profit of top Malaysia banks
Affin Bank
Affin Bank has once again demonstrated exceptional performance, posting a notable 50.98% YoY increase in net profit. The bank's net profit rose from USD 21.7 million in Q3 FY-2023 to USD 32.7 million in Q3 FY-2024. This surge in profitability is underpinned by an outstanding 106.2% YoY growth in operating profit.
Bank Islam
Bank Islam experienced a 4% decline in net profit, falling from USD 30.36 million in Q3 FY-2023 to USD 29.14 million in Q3 FY-2024. This decrease was primarily driven by an 11.38% rise in operating expenses, with corporate and commercial banking expenses increasing by 24.2%, while treasury expenses decreased by 20.6%.
Fee income across Malaysia’s leading banks saw a robust increase of 11.06% YoY, from USD 615.3 million in Q3 FY-2023 to USD 683.3 million in Q3 FY-2024.
Exhibit 3: Fee incomes of the top banks in Malaysia
AmBank Group
AmBank Group recorded a significant 20.53% YoY increase in a key category, rising from USD 32.24 million in Q3 FY-2023 to USD 38.86 million in Q3 FY-2024. This growth was fueled by a 33.03% rise in fees and loans on securities and a 27.82% increase in brokerage fees and commissions.
Affin Bank
Affin Bank reported a 24.83% YoY decline, reducing from USD 22.25 million in Q3 FY-2023 to USD 16.73 million in Q3 FY-2024. This decrease is attributed to a 1.39% drop in commission and a substantial 26.23% decline in corporate advisory fees.
Average non-performing loans across Malaysia’s leading banks saw a decline of 8.89% YoY, from 1.57% in Q3 FY-2023 to 1.43% in Q3 FY-2024.
CIMB Group Holdings Berhad
CIMB Group Holdings Berhad reported a 28.13% YoY decline from 3.2% in Q3 FY-2023 to 2.3% in Q3 FY-2024. This decrease is attributed to 3.3% increase in its loans, advances and financing
Public Bank
Public Bank recorded a significant 6.9% YoY increase, rising from 0.58% in Q3 FY-2023 to 0.62% in Q3 FY-2024. This increase was fueled by a 14.36% increase in hire purchase receivables.
Average cost efficiency across Malaysia’s leading banks saw a minor increase of 0.6% YoY, from 47.66% in Q3 FY-2023 to 47.95% in Q3 FY-2024.
AmBank Group
AmBank Group reported a 5.35% YoY increase, rising from 43% in Q3 FY-2023 to 45.3% in Q3 FY-2024. This increase was driven by an 8.17% rise in personnel costs and a 21.63% surge in marketing and communication expenses.
CIMB Group Holdings Berhad
CIMB Group Holdings Berhad reported a 0.85% YoY decrease in its cost-to-income ratio, falling from 46.9% in Q3 FY-2023 to 46.5% in Q3 FY-2024. This decline was primarily driven by an 8.2% reduction in depreciation of plant, property, and equipment, along with a 29.7% decrease in overtime expenses.