The MAYBANK Group announced Aug 27, 2008 - 7.9% lower PAT for FYE Jun 30, 2008 of RM2.93 bil compared with RM3.18 bil in 2007.

Group PBT was also lower by 6.4% at RM4.09 bil compared with RM4.37 bil recorded in FYE Jun 2007.

The results translate into a Net ROE of 17.3% after deducting for Deferred Taxation while EPS registered 60.08 sen.

DIVIDEND
The BOD proposed a Final Dividend of 20 sen per share less 26% Income Tax to be paid on Oct 21, 2008bringing the Dividend Payout ratio for FY2008 to 60.4% of Group Net Profit.

RESULTS OVERVIEW
MAYBANK Chairman - MOHAMED BASIR AHMAD said the results of the Group are satisfactory given the morechallenging business environment and was in line withexpectations.

While Revenue for the period rose by 6.4% to RM16.2 bil from RM15.2 bil in 2007, Operating Profit grew marginally by 6.1% to RM5.38 bil compared with RM5.07 bil recorded in 2007.

LOWER OPG PROFIT DUE TO PT BANK INTERSIONAL COMPENSATION This was mainly due to two factors namely the rising costs on the back of one-off staff compensation adjustments, higher marketingexpenses, IT investments and the provision of RM483.8mfor the non-refundable deposit paid for the acquisition of up to 100% equity in SORAK FINANCIAL HOLDINGS pl - the controlling shareholder of PT BANK INTERNASIONAL INDONESIA tbk following the revocation of approval by BANK NEGARA MALAYSIA on 29 Jul, 2008.

The impact of the RM483.8m provision is mitigated by forex gain of RM193m on SGD funds placement in relation to the balance purchase consideration for the acquisition of SORAK.

The Chairman said the Group's decision to make theprovision was consistent with MAYBANK's stringentprovisioning policy and prudent risk management.

NET INTEREST INCOME GROWTH OF 5.7%
Net Interest income grew by RM293.9m or 5.7% compared to FY2007. Net Interest margin remained stable at 2.71% compared with 2.73% in FY2007. The deposit miximproved slightly with demand and savings depositsrepresenting 36.3% of our total deposit base compared to35.9% in 2007.

NON-INTEREST INCOME GROWTH AT 13.1%
Non-interest income grew by RM375.8m, or 13.1% as aresult of higher income from commissions, transactional fees and forex gains.

ISLAMIC BANKING INCOME GROWTH AT 12.5%
Income from Islamic Banking ops grew 12.5% to reachRM964.6m from RM857.6m previously. The Group remains a leader in Islamic banking with a 27% market sharein assets, 23% in overall financing and 18.2% share in deposits.

GROSS LOANS GROWTH AT 16.1%,/b>
Gross loans for the Group increased by RM23.7 bil or16.1% for the financial year, with growth from both the consumer and business sectors.

MALAYSIAN OPS LOANS GROWTH AT 12.1%
For the Malaysian ops, overall loans growth was 12.1%.Consumer loans as a whole grew 8.8% with a 28% increase in automobile financing and 21% rise in credit card receivables. Business loans also grew by 15.3% while SMEloans increased by 21%.

INVESTMENT BANKING CHALLENGING
The Group's investment banking business was impacted by the challenging market conditions which resulted in fewerbusiness opportunities for the Group. In addition, theprevious corresponding period had included the sum of RM52.5 million which was received for the surrender of the licence of MAYBAN DISCOUNT.

INSURANCE OPS
The insurance arm of the Group recorded an improvement in PAT of 18% to RM339.7m on the back of higher investmentincome as well as from cost efficiency benefits arising from the merger under the "Etiqa" brand.

Continued in Part Two of Three(By KLSETRACKER.com)