KUALA LUMPUR — Malayan Banking Bhd (Maybank) recorded a net profit of RM2.48 billion for the first quarter ended March 31, 2026 (1Q 2026), slightly lower than RM2.58 billion a year earlier, as stronger underlying performance helped offset softer market-driven income.
In a filing with Bursa Malaysia, the banking group said growth in core fee income, alongside improved net interest margins (NIMs), disciplined cost control and stable asset quality, supported its quarterly results, Bernama reported.
The higher core fee income was mainly driven by wealth management and investment banking activities, as well as stronger Global Markets (GM) sales during the period. However, overall performance was weighed down by weaker trading income amid a challenging market environment.
Revenue for the quarter fell to RM14.91 billion from RM16.87 billion previously.
“Maybank’s 1Q 2026 performance reflects the strength and resilience of its diversified franchise and disciplined execution amid volatile market conditions.
“The bank continued to deliver steady earnings supported by stronger NIM, prudent cost management and broadly stable asset quality during the quarter,” said president and group chief executive officer Datuk Seri Khairussaleh Ramli.
He added that key business segments, particularly wealth management, investment banking and flow business, continued to show progress, underscoring the strength of the group’s customer franchise.
Net interest margin improved to 2.14% from 2.04% a year earlier, a 10-basis-point year-on-year increase, supported by a lower-cost funding mix and a higher current account and savings account (CASA) ratio of 41.1 per cent across home markets.
“Our balance sheet fundamentals remain sound with strong capital and liquidity buffers, as well as continued CASA strength across our home markets, enabling us to continue supporting individuals, small and medium enterprises (SMEs) and large corporates,” said Khairussaleh.
Return on equity remained stable at 11.2%.
Maybank said non-interest income declined to RM1.99 billion due to weaker trading and markets-related performance. However, net fund-based income rose 3.2% year-on-year to RM5.11 billion, supported by improved margins and steady loan growth.
Net operating income stood at RM7.10 billion, compared with RM7.71 billion previously.
Operating expenses declined 5.3% year-on-year and 3.1% quarter-on-quarter, reflecting continued cost discipline despite higher technology investments. As a result, the cost-to-income ratio improved to 49.9 per cent.
Asset quality remained steady, with the gross impaired loans ratio at 1.34% and loan loss coverage at 104.4%, or 113.6% excluding provision reclassification linked to a significant restructured borrower.
Net credit charge-off ratio improved to 10 basis points, reflecting lower provisions for corporate borrowers, partially offset by additional overlays of RM2.4 billion set aside for emerging macroeconomic and geopolitical risks.
Group loans grew 0.9 per cent year-on-year to RM684.5 billion, driven mainly by stronger lending in Malaysia, up 5.5%, and Singapore, up 3.6%.
Looking ahead, Maybank said it will continue expanding its core businesses across home markets while integrating its regional presence under the ROAR30 strategy launched this year.
The group aims to scale up Islamic finance, regional wealth management, regional transaction and payments, and corporate and investment banking.
It also plans to strengthen capabilities through sustained investment in technology, data and artificial intelligence, alongside workforce development and improved capital efficiency. — May 28, 2026