Malayan Banking (MAYBANK) Q2 2026 earnings summary

Executive summary

• Achieved resilient earnings of RM5.17 billion for 1H FY2026, with ROE at 11.6% and improved NIM to 2.12%.

• Profit after tax and zakat attributable to equity holders for the six months ended 30 June 2026 was RM5,171.0 million, down 0.9% year-over-year.

• Net interest income and Islamic Banking income rose 1.6% to RM10,842.2 million year-over-year.

• Overhead expenses decreased 3.9% to RM7,234.7 million year-over-year.

• Maintained a strong capital position and ample liquidity, with a first interim dividend of 31 sen per share and a payout ratio of 72.5%.

Financial highlights

• Net profit for 1H FY2026 was RM5.17 billion, down 0.9% year-over-year; income at RM14.61 billion, down 5.1% year-over-year.

• Total operating income for the six months was RM15,561.4 million, down from RM16,314.2 million year-over-year.

• Net fund-based income grew 2.5% year-over-year, supported by NIM expansion; core fees up 12.1%.

• Expenses decreased 3.9% year-over-year, with disciplined cost management ahead of increased technology investments.

• Earnings per share for the six months was 42.78 sen, slightly down from 43.20 sen year-over-year.

Outlook and guidance

• FY2026 guidance: ROE ≥11.8%, CIR at 49%, NCC at ~20 bps, group loans growth of 4–5%, NIM between 2.05% and 2.10%.

• Global GDP growth is projected to moderate to 3.1% in 2026, with ASEAN-6 growth resilient at 5.0%.

• Malaysia's GDP growth forecast is 5.3% for 2026, with inflation expected at 2.0%.

• The Group will focus on expanding scalable regional businesses and investing in technology, data, and AI.

• NIM pressure expected to persist due to ongoing deposit competition; credit costs to remain benign amid stable asset quality.