Malayan Banking (MAYBANK) Q1 2026 earnings summary

Executive summary

• Net profit for 1Q FY2026 was RM2.48 billion, down 4.2% year-over-year, with ROE at 11.2% and resilient earnings amid volatile markets; disciplined cost control and margin expansion supported results.

• Net interest income and Islamic Banking income rose 3.2% to RM5,454.3 million year-over-year, while 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, with a cost-to-income ratio of 49.9%.

• Asset quality remained stable, with prudent overlays for emerging risks and net impairment provisions falling 51.8% to RM0.21 billion.

• Capital and liquidity positions remain robust, with CET1 ratio at 14.96%, Total Capital Ratio at 18.47%, LCR at 133.3%, and NSFR at 113.3%.

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.

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

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

• Group loans grew 0.9% YoY (3.4% YoY excluding FX impact); Malaysia loans up 5.5% YoY, Singapore up 3.6%, Indonesia down 0.2%.

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, with focus on responsible growth and prudent risk management.

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

• Global GDP growth expected to moderate to 3.0% in 2026, with Malaysia's GDP forecasted at 4.4%.

• The Group will focus on growing core businesses, regional integration, and scalable businesses in Islamic finance, wealth management, and corporate banking.