Malayan Banking (MAYBANK) Q2 2025 earnings summary

Executive summary

• Net profit for 1H FY2025 rose 4.0% year-over-year to RM5.22 billion, with return on equity improving to 11.5% and profit before tax up 3.2%, driven by higher non-interest and Islamic Banking income, and improved insurance/takaful service results.

• Net operating income increased 3.2% YoY to RM15.40 billion, while non-interest income grew 7.0% YoY, supported by investment and trading gains.

• Overhead expenses rose 3.8% YoY to RM7.53 billion, mainly due to higher personnel, marketing, and software costs.

• Net allowances for impairment losses on loans and other debts decreased 4.9% to RM807.6 million, and impairment losses on financial investments fell to RM65.2 million.

• Declared a higher interim dividend of 30 sen per share, with a payout ratio of 69.5%.

Financial highlights

• Pre-provisioning operating profit increased 2.6% YoY to RM7.87 billion.

• Net fund-based income rose 1.2% YoY to RM9.89 billion, supported by 1.3% loans growth.

• Non-interest income contributed 35.8% of total income, up 7.0% YoY to RM5.51 billion.

• Net impairment provisions decreased by 2.5% to RM901 million, with net credit charge off rate lower at 24 bps.

• Earnings per share for the six months was 43.20 sen, up from 41.59 sen year-over-year.

Outlook and guidance

• Return on equity and cost-to-income ratio are on track with guidance at ≥11.3% and <49%, respectively.

• Group loans growth guidance revised to ±3.0% (from 5%-6%) due to softer markets and global headwinds.

• Net interest margin expected to see slight compression amid rate cuts and FX fluctuations.

• Credit charge off rate guidance maintained at ≤30 bps.

• Focus remains on customer centricity, digital transformation, and regional expansion under the M25+ plan.