By Ying Xian Wong

Malayan Banking's first-quarter net profit rose 9.8% from a year earlier, supported by a jump in noninterest income.

Malaysia's largest lender in terms of market capitalization said Friday that net profit in the first quarter rose to 2.49 billion ringgit ($529.3 million), driven by strong growth in core fees and an increase in treasury and market gains.

The bank said noninterest income jumped 79% from a year earlier, while net interest income fell 2.3% to MYR3.15 billion.

Net interest margin for the quarter fell 19 basis points due to elevated higher funding costs, Maybank said.

Given an improved economic outlook for Southeast Asia, Maybank aims to expand its presence in several key areas and leverage its regional footprint and customer base to drive both fund- and fee-based income growth.

The lender said it is targeting an 11% return on equity in 2024, barring unforeseen circumstances.

Write to Ying Xian Wong at

(END) Dow Jones Newswires

05-24-24 0149ET