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BERITA SUBANG - Maybank Indonesia posted a 19.6 percent decline in its fee-based income in the first half of 2021, as fee income from its Global Market division dropped amid the Covid-19 pandemic.
The drop in its fee based income, along with falling net interest income, contributed to the bank's first half 2021 net profit decline.
In its consolidated financial results for the six-month period ended June 30, 2021, the bank stated that its fee-based income, or non-interest income, declined to Rp 952 billion from Rp 1.18 trillion in the same period last year.
Maybank stated that the drag in fee-based income was due to falling revenue from its Global Market division.
In its official website, Maybank Indonesia says its 'global market solution' includes treasury products such as foreign exchange (spot, forward, swap), foreign exchange option, cross currency swap, interest rate swap and call spread option.
It also offers structured investment products like dual currency investment and swap investment.
On a quarterly basis, however, fee-based income increased by 10 percent to Rp 498 billion.
Bancassurance fee grew strong
However, despite it suffering a significant drop in its global-market related fees, fees from bancassurance grew sharply by 79 percent to Rp106 billion.
"The decline in net interest and fee-based incomes amidst the prolonged pandemic conditions was, however, partially offset by lower loan-loss provisions as well as reduced credit and overhead costs," the bank said in August 2, 2021 statement.
Maybank Indonesia said it had taken "conservative measures in setting aside provisions for accounts, across all its business segments, impacted by the challenging environment."
The bank said this effort has contributed to a drop in loan loss provisions by 21.6 percent to Rp 763 billion from Rp1.01 trillion.
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