Maybank AUMs reach P6.8 B in 2011

MANILA, Philippines - The assets under management (AUM) of Maybank Philippines Inc. stood at P6.8 billion at end December 2011, 17 percent lower than the P8 billion in the first semester of fiscal year 2012 starting July.

Maybank Philippines is a subsidiary of the Malayan Banking Berhad (Maybank), the biggest bank in Malaysia and recognized regional player in the Asia Pacific region.

Bank officials, however, said that redemptions at this period are common towards the end of the year.

“This is normal as a lot of redemptions are made for spending at the Yuletide season,” Arlene Joan T. Agustin, senior vice president and head of investment and asset management said.

However, fee-based earnings from trust assets grew by over 400 percent, making it a significant contributor to the bottom line of the bank.

Maybank Philippines’ trust services include escrow, mortgage, retirement, agencies, and managed funds.

Agustin said she is looking forward to their partnership with the asset management group of ATR Kim Eng. Maybank acquired Kim Eng Holdings Ltd. which operates several financial institutions in the Philippines.

 The fund managers of ATR Kim Eng handles a number of mutual funds that are invested in fixed income or bond funds, equity or securities funds, and balanced funds.

 Agustin explained that banks, such as Maybank Philippines, are disallowed to directly manage mutual funds. However, Maybank Philippines can act as marketing agents for the mutual funds handled by ATR Kim Eng.

In turn, the bank can earn from commissions, which has been a significant contributor to the bank in the first semester of 2012. The asset management group likewise manages among others bad assets, restructure debts, foreclosed properties and special deposits accounts (SDAs).

“In fact, majority of assets being managed are SDAs,” the bank senior vice president said.

The investment and asset management group is one of Maybank Philippines so-called “three pillars.” The other two are global wholesale business, and retail business group.

In the first semester of 2012, MayBank Philippines reported a net income of P273.9 million, or 87 percent higher than the previous P146.2 million recorded in the same period in 2011.

Net interest income expanded by 46 percent to P933.3 million, or accounting for roughly three-fourth of total income. Non-interest income grew by 20 percent to P307.5 million.

Loans rose 57 percent to slightly over P23 billion.