PETALING JAYA: Malayan Banking Bhd
(Maybank) has kicked off its financial year ending Dec 31, 2026 (FY26) on a softer note, with net profit declining 4.2% year-on-year (y-o-y) to RM2.48bil in its first quarter ended March 31, weighed by weaker non-interest income (NOII).
For the first quarter of this financial year (1Q26), Maybank’s revenue slid by 12% y-o-y to RM14.9bil. The group said NOII declined to RM1.99bil during the quarter due to weaker trading and markets-related income.
Maybank president and group chief executive officer Datuk Seri Khairussaleh Ramli said the group’s 1Q26 performance reflects the strength and resilience of its diversified franchise and disciplined execution amid volatile market conditions.
“Maybank continued to deliver steady earnings supported by stronger net interest margin, prudent cost management and broadly stable asset quality during the quarter.
“We also saw continued progress across several key businesses, particularly wealth management, investment banking and flow business, reflecting the strength of the group’s customer franchise,” he said in a statement yesterday.
Khairussaleh said Maybank’s balance sheet fundamentals remain sound with strong capital and liquidity buffers, as well as continued current account savings account (Casa) strength across the group’s home markets, enabling it to continue supporting individuals, small and medium enterprises and large corporates.
“As we progress with ROAR30, we are focused on deepening regional connectivity across Asean and advancing sustainable growth across the region, while maintaining prudent risk management amid ongoing macroeconomic and geopolitical uncertainties,” he said.
Launched earlier this year, Maybank’s ROAR30 is centred around three strategic pillars, which aims to reinforce its purpose of Humanising Financial Services via values-based offerings, build businesses at scale to claim leadership positions, and strengthen its foundation to future proof itself.
Maybank said it aims to build scalable businesses in Islamic finance, regional wealth management, regional transactions and payments, as well as regional corporate and investment banking.
The ROAR30 strategy also prioritises strengthening foundational capabilities through sustained investments in technology, data and artificial intelligence, developing a future‑ready workforce, and driving productivity and capital optimisation
The group’s net fund-based income grew 3.2% y-o-y to RM5.11bil for the first quarter under review, driven by improved net interest margin (NIM) and stable loans growth.
Net operating income, however, declined by 7.9% y-o-y to RM7.1bil from RM7.71bil previously.
Maybank said its NIM improved in 1Q26 to 2.14% from 2.04% a year earlier, a 10 basis points (bps) uplift y-o-y, supported by lower cost funding mix and a higher Casa ratio of 41.1% across home markets.
Return on equity is at 11.2%.
The group noted that cost management remained a priority, with operating expenses reducing by 5.3% y-o-y and 3.1% quarter-on-quarter, despite an increase in technology investment costs. As a result, Maybank’s cost-to-income ratio closed at 49.9%.
“Gross impaired loans ratio stood at 1.34% in 1Q26, while loan loss coverage remained at a reasonable level at 104.4%, or 113.6% excluding provision reclassification relating to a significant restructured borrower.
“Net credit charge-off ratio improved to 10 bps, reflecting lower provisions for corporate borrowers, partially offset by additional overlays arising from emerging macroeconomic and geopolitical risks which stood at RM2.4bil,” Maybank said.
Group loans expanded 0.9% y-o-y (3.4% y-o-y excluding foreign exchange impact) to RM684.5bil, supported primarily by growth in Malaysia, which increased 5.5%, in Singapore which rose 3.6%.
In Malaysia, expansion was driven by both community financial services and global banking businesses, reflecting resilient domestic demand and continued business activity across key sectors.
“Casa grew across all home markets of Singapore, Indonesia, and Malaysia by 27.6%, 22.5%, and 7.5%, respectively. This reflects disciplined execution of our funding strategy to strengthen low-cost and stable funding. As a result, the Casa ratio improved to 41.1%,” Maybank said.
Meanwhile, group community financial services recorded a 44.1% y-o-y increase in pre-tax profit for 1Q26, reaching RM1.86bil, supported by a 2.5% y-o-y growth in net operating income to RM4.37bil, a 5% reduction in overheads and 89.6% decrease in allowance for loan losses.
Total loans expanded across all home markets of Malaysia, Singapore and Indonesia by 5.7%, 10.6%, and 5.3% respectively y-o-y.
Wealth management, a key focus segment for Maybank, maintained its upward trajectory with total financial assets rising 3.7% from a year earlier, reaching RM559bil contributed by investments and loans growth.
On the other hand, Maybank said its group global banking posted a pre-tax profit of RM1.45bil, as softer global markets non-flow business income mitigated by its performance from investment banking, advisory business which contributed RM117.9mil.
Net operating income for this division stood at RM2.71bil, reflecting lower trading income amid market volatility, while net fund-based income grew 2.5% y-o-y, supported by NIM expansion, demonstrating underlying earnings stability.
