Malayan Banking Berhad (MAYBANK) investor relations material

Executive summary

• Net profit for 1Q FY2026 was RM2.48 billion, down 4.2% year-over-year and 7.3% sequentially, with ROE at 11.2% amid margin expansion and disciplined cost control.

• NIM improved to 2.14% (+10 bps YoY), driven by a better funding mix and higher CASA ratio of 41.1%.

• Operating expenses fell 5.3% YoY, reflecting effective cost management, while asset quality remained stable with prudent overlays for emerging risks.

• Performance was anchored by improved net interest margin, disciplined cost and asset quality management, and higher core fees from wealth and investment banking.

• The ROAR30 strategy continues to drive purposeful growth, focusing on regional connectivity, sustainability, and digital transformation.

Financial highlights

• Net operating income was RM7.10 billion, down 7.9% YoY; pre-provisioning operating profit fell 10.5% YoY.

• Core fees rose 11.9% YoY, led by wealth and investment banking, but non-interest income dropped 28.0% YoY due to weaker trading income.

• Net fund-based income grew 3.2% to RM5.11 billion, while non-interest income declined due to weaker trading and market-related income.

• Net impairment provisions fell 51.8% to RM0.21 billion; net credit charge-off rate improved to 10 bps (down 14 bps YoY).

• Cost-to-income ratio increased to 49.9% (+1.4 p.p. YoY).

Outlook and guidance

• FY2026 guidance: ROE ≥11.8%, cost-to-income ratio <49%, NCC rate ~20 bps, group loans growth 4–5%, NIM 2.05–2.10%.

• Management remains cautious on the full-year outlook due to heightened geopolitical and macroeconomic uncertainties.

• Focus remains on deepening ASEAN connectivity, advancing sustainable growth, and prudent risk management.

• Continued emphasis on digital, technology, and AI to enhance profitability and customer experience.