In today’s edition of Evening 5 — On the quarterly earnings front, Petronas books a 29% fall, Maybank reports a 45% jump, while CIMB sees a 38% improvement. Meanwhile, Public Bank is ordered to pay RM500,000 to National Feedlot Corporation and four others for leaking confidential information, and Malaysia Airlines ends its decades-old in-flight catering partnership with Brahim’s.
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NewsTranscript
00:00 [Music]
00:04 Petronas posted a 29% drop in profit after tax for the second quarter of FY 2023 to RM16.4 billion,
00:13 as average realized prices for all products fell amid lower crude oil prices,
00:18 which are down 26% year-on-year.
00:20 Quarterly revenue shrank 13% to RM79.9 billion.
00:25 Petronas' Chief Financial Officer, Lisa Mustapha, said
00:28 the performance was in line with the results of other oil and gas majors,
00:32 which in recent quarters saw weaker earnings compared to the bumper year in 2022,
00:37 tracking the normalization of crude oil prices.
00:40 For the first half of FY 2023, Petronas logged a 13% drop in profit after tax to RM40.2 billion,
00:49 while revenue was little changed at RM170.3 billion versus RM170.4 billion
00:55 in the previous corresponding period.
00:58 Petronas President and Group CEO Tan Sri Tengku Muhammad Taufik said
01:02 this bearish environment is expected to continue,
01:05 with oil and gas prices expected to remain volatile,
01:08 with persistent economic headwinds and energy security concerns firmly on the horizon.
01:13 [Music]
01:19 Maybank expects its Net Interest Margin, or NIM, to decline by 25 basis points year-on-year for FY 2023,
01:27 primarily due to competition in funding and deposits.
01:30 Speaking at a press conference, Maybank Group President and CEO Datuk Kharus Salih Romli said
01:36 the group has already recorded a steep NIM compression decline of 23 basis points
01:42 to 2.16% in the first half of FY 2023, compared to 2.39% in FY 2022.
01:49 The lending group expects NIM to then stabilize,
01:52 forecasting a compression of up to 25 basis points for the whole of FY 2023.
01:59 Maybank announced its second quarter FY 2023 financial results today.
02:03 Quarterly net profit rose 45% to RM2.34 billion,
02:08 led by higher non-interest income from stronger treasury and markets income.
02:12 Revenue jumped 57% from a year earlier to RM16.13 billion.
02:18 Maybank declared a dividend of RM29 per share.
02:21 For the cumulative six months, earnings came in 26% higher at RM4.60 billion,
02:28 on revenue of RM31.32 billion, up 47%.
02:32 At the close, Maybank's shares were 0.2% higher at RM9.11,
02:38 for a market value of RM109.8 billion.
02:41 [Music]
02:46 CIMB Group Holdings said second quarter FY 2023 net profit rose 39% to RM1.77 billion,
02:55 driven by strong operating income growth, stringent cost controls and lowered provisions,
03:00 as the group benefits from its diversified ASEAN portfolio
03:03 with strong business growth recorded in Indonesia and Singapore.
03:07 Quarterly revenue increased by 9% to RM5.33 billion.
03:12 It declared the first interim dividend of RM17.56 per share.
03:16 For the cumulative six months of FY2023, net profit rose 26% to RM3.42 billion,
03:24 while its top line was up 7% to RM10.33 billion.
03:28 Going into the second half, Group CEO Datuk Abdul Rahman Ahmad said
03:32 the lender is taking a cautious position amid global headwinds.
03:36 Still, CIMB expects the ASEAN markets to remain resilient.
03:40 Supported by the regional country's economic policies and strong demand for tourism and services,
03:46 and is optimistic on continuing the momentum of positive financial performance.
03:51 At closing bell, CIMB's shares were unchanged at RM5.63,
03:55 for a market capitalization of RM16.05 billion.
03:59 [Music]
04:05 The Courts of Appeal allowed an appeal by National Feedlot Corporation and four others
04:09 against Public Bank, ruling the lender is liable to pay damages to them
04:14 over alleged breach of contract in protecting information concerning their bank accounts.
04:19 The bench ruled that the High Court judge ignored vital evidence from the bank's domestic inquiry
04:25 on its former clerk Johari Mohamed, who was implicated in the leak of confidential documents.
04:31 Judge Datuk S Nantabalan pointed out that it was Johari who had wrongfully handed over
04:36 the financial statements of the plaintiff's accounts to third parties,
04:40 and these eventually found their way into the hands of politician Mohamed Rafizi Ramli,
04:45 who then publicly disclosed the information.
04:47 The court overturned the High Court's decision, granted nominal damages of RM10,000
04:53 with 5% interest from May 22, 2012, the suit's filing date,
04:58 and directed Public Bank to pay RM500,000 as costs.
05:02 [Music]
05:07 Malaysia Aviation Group, or MAG, and Brahim's Holdings are ending their decades-old
05:12 in-flight catering partnership following a thorough and prolonged negotiation period.
05:18 The parent company of Malaysia Airlines said it had received a formal notice terminating
05:23 the partnership on June 30, but Brahim's subsequently agreed to a two-month extension
05:29 ending August 31. MAG said it will continue to explore diverse strategies to ensure business
05:35 sustainability, which include partnering with reputable food and beverage providers,
05:40 sharing a commitment to premium passenger experiences and efficient in-flight services
05:46 at Kuala Lumpur International Airport Terminal 1.
05:49 In the meantime, the group said Malaysia Airlines will resort to self-catering on
05:53 selected routes from September 1, involving the sourcing of pre-packed meal items and
05:59 F&B supplies from multiple providers, including its lounge operator MAS Awana.
06:05 The remainder will continue to be served by Post Aviation.
06:09 [Music]