14  theSun | WEDNESDAY AUGUST 26 2009

business

Maybank reports 59% drop

in pre-tax profit
KUALA LUMPUR: Malayan
Banking Bhd (Maybank)’s pre-
tax profit for the financial year
ended June 30, 2009 fell 59%
to RM1.67 billion from RM4.09
billion last year.
The profit was achieved
over an 8.9% rise in revenue
to RM17.586 billion against
RM16.153 billion previously.
The lower profit was
largely due to higher loan loss
provisions, and interest on the
additional RM9.1 billion capital
securities and subordinated
debts issued in 2008.
In announcing the results
here yesterday, its president
and chief executive officer,
Datuk Seri Abdul Wahid Omar
said the interest amount on the
capital securities amounted to
RM445 million.
“We also saw lower capital
market activities that contrib-
uted to a lower profit from our
investment banking arm and
insurance front which effected
higher claim ratio as well as
lower investment income,” he
said.
The group’s performance
was mainly impacted by im-
pairment charges of RM1.617
billion arising from the Bank
of PT Bank Internasional
Indonesia Tbk (BII) banking
business operations deal and
an impairment loss of RM353.1
million for the investment in
MCB Bank, its associate in
Pakistan.
In the fourth quarter, May-
bank registered a pre-tax loss
of RM821.6 million as against a
pre-tax profit of RM1.02 billion
in the same quarter of 2008, on
revenues of RM4.86 billion and
RM4.49 billion respectively.
On whether the Q4 net loss
was the lowest ever recorded,
Abdul Wahid said: “I am not
able to confirm that.”
Maybank has never in-
curred a loss from an annual
perspective, he said.
“The lowest profit we ever
recorded was just after the last
Asian financial crisis with a
profit of about RM190 million.
So the full year profit this year
of RM692 million is still off the
low,” he added.
On other possible impair-
ment charges in the coming
quarters, he said: “We believe
that based on the exercise
which we’ve undertaken, we
do not expect any further im-
pairments.”
For the fourth quarter,
Maybank posted a net loss of
RM1.118 billion. This however
was partly offset by the write-
back of allowance for non-
refundable deposit of RM483.8
million arising from the
reinstatement of approval by
Bank Negara Malaysia and the
subsequent completion of the
proposed acquisition of Sorak
Financial Holdings Pte Ltd, the
controlling shareholder of BII.
Maybank declared a final
dividend of 8.0 sen per share
less 25% tax. For the full year,
Maybank’s net profit attribut-
able to equity holders was
lower by 76.4% to RM691.9
million from RM2.93 billion
previously.
Meanwhile, operating profit
was reduced by 33% to RM3.06
billion compared with RM4.57
billion previously.
This was mainly due to the
higher allowance for impair-
ment of securities of RM197.5
million compared to a write-
back of RM66.2 million in the
previous year and a higher
allowance for losses on loans
due to higher specific allow-
ance made, lower recoveries
and as a result of consolidation
of the loan loss provision of BII
for the first time in this finan-
cial year. – Bernama
Bank Negara
retains OPR at 2%
KUALA LUMPUR: Bank Negara Malay-
sia (BNM) has retained the Overnight
Policy Rate (OPR) at the current level
of 2%.
This was the fourth time the central
bank retained the OPR at the same
level, saying that the current monetary
policy stand is appropriate and will con-
tinue to provide support for economic
activity.
BNM announced the decision in a
statement following its Monetary Policy
Committee (MPC) meeting yesterday.
BNM said since its last MPC meet-
ing in July, more signs have emerged to
suggest that the global economic and
financial conditions are improving.
“Economic activity in some ad-
vanced and regional countries has
begun to gradually recover in response
to the significant fiscal and monetary
measures that have been implement-
ed,” it said.
However, it said economic recovery
can be a slow process as some of these
economies undergo further structural
adjustments.
On the domestic economy, BNM
said expectations are there that it will
improve in the second half of this year
and into 2010, following a recovery in
domestic demand amid stabilisation in
the global economy.
On inflation, the central bank said

Asean economies out of the the negative inflation is expected to

be temporary and it will turn positive
as domestic conditions strengthen.
woods, says Moody’s – Bernama

Genting Plantations
KUALA LUMPUR: Nearly all Asean economies have He said fiscal and monetary stimulus measures
emerged from recession based on second-quarter have played a large part, but a major factor in some
falls RM76.8mil
gross domestic product (GDP) results, according to economies has been inventory re-stocking. KUALA LUMPUR: Genting Planta-
Moody’s Economy.com. The scale of the inventory reduction among tions Bhd's pre-tax profit for the
Output was lower compared to the same period Asean producers will boost growth in subsequent second quarter ended June 30, 2009
a year earlier but higher than the first quarter, spec- quarters, especially in Thailand, where invento- dropped by about half to RM76.80
tacularly so in some countries, said Alaistair Chan, ries continued to fall in the second quarter, he million from RM157.61 million in the
associate economist at Moody’s Economy.com, in added. same quarter of 2008.
a report yesterday. Yet the pace of improvement is already slowing, Its turnover fell to RM185.96
National accounts data yet to be released, in- according to Chan. million from RM321.93 million pre-
cluding for Malaysia and the Philippines, are likely The upward trend in industrial production growth viously. For the six-month period,
to tell a similar story, Chan said. has moderated across all Asean economies, he said, its pre-tax profit fell to RM124.58
Malaysia’s second-quarter GDP data, due to be adding that producers have a clearer idea of final million from RM300.816 million in
out today, is also expected to show an improve- demand and are producing at a level that does not the same period of the preceding
ment, albeit milder, he said. induce large changes in inventories. year.
Southeast Asia’s bounce was first visible in If this moderation continues, Chan said it will Revenue fell to RM319.32 million
industrial production, and after reaching a bottom suggest that the rebound in GDP growth in the from RM594.98 million previously.
around January, production growth has rebounded second quarter is unlikely to be repeated in coming In a statement, Genting Planta-
in an almost perfect V shape, Chan said. quarters. – Bernama tions said the results in the first
half of 2009 were weaker due to
lower palm product pricess and a
RM124mil for IJM Corporation decline of 8% in fresh fruit bunches
production.
It said the average crude palm
KUALA LUMPUR: IJM Corpora- property, industry and infra- ence, IJM's chief executive oil and palm kernel prices achieved
tion Bhd, one of the country's structure divisions managed officer and managing director during the six-month period were
leading construction players, to achieve improved profits Datuk Krishnan Tan Boon Seng RM2,209 per metric tonne (mt) and
recorded a lower pre-tax profit during the first quarter as said for its construction divi- RM990/mt respectively compared
of RM124 million for its first property sales continued sion, the company hoped to with RM3,473/mt and RM2,010/mt
quarter ended June 30, 2009, to pick up momentum, de- increase its order book. in the same period of 2008. –
compared to RM166.298 mil- mand for pretensioned spun Value of the order book was Bernama
lion in the same quarter last concrete (PSC) piles remained now more than RM4 billion, he
year. strong and increased contribu- said.
This was due to significantly tion from the group's port fa- Tan said IJM would con- EON posts drop in Q1
lower contributions from the cilities and overseas tollways. tinue to bid for contracts, both pre-tax profit
plantation division as well as IJM's revenue fell by 4.9% to locally and overseas. KUALA LUMPUR: Edaran Otomobil
the drop in crude palm oil (CPO) RM1.162 billion from RM1.221 "If there is a sizeable job, Nasional Bhd (EON)’s pre-tax profit for
prices, IJM said in a statement billion previously, mainly due we will bid for the project," he the first quarter ended June 30, 2009
released after its annual gen- to lower prices of crude palm said. declined by 29.5% to RM12.806 million
eral meeting and extraordinary oil and palm kernel oil during Tan said the industry divi- from RM18.174 million in the same
general meeting. the period compared to the sion is expected to benefit quarter last year.
The decline was also due peak prices achieved in last from increased sales of build- The company’s revenue fell by 5.2%
to the construction division year's corresponding quarter. ing materials as the construc- to RM627.770 million from RM662.306
suffering from lower mar- As a result, the revenue tion sector recovered. million previously.
gins from legacy contracts contribution from the group's With strong property sales In a filing to Bursa Malaysia here
which were affected by plantation division declined yet to be billed, the group's yesterday, the company said the lower
higher input costs in the by 41% compared to the pre- property division is expected revenue in the first quarter was mainly
prior year and higher financing ceding year's corresponding to achieve a satisfactory per- due to lower Proton and Mitsubishi
costs incurred in India, it said. quarter. formance in the current finan- vehicle sales. – Bernama
However, the group's Earlier at a press confer- cial year, he said. – Bernama