Malayan Banking (MAYBANK) Q3 2025 earnings summary

Executive summary

• Net profit for 9M FY2025 grew 3.7% year-over-year to RM7.84 billion, driven by higher net interest, Islamic Banking, and non-interest income, improved insurance/takaful results, and prudent risk management.

• ROE was maintained at 11.5%, with NIM stable at 2.03%.

• Cost-to-income ratio remained stable at 48.9% despite a 3.8% YoY increase in operating costs.

• Asset quality improved, with net credit charge-off rate at 11 bps and loan loss coverage above 100%.

• Strong liquidity and capital positions, with CASA ratio at 39.9%, CET1 at 14.93%, and total capital ratio at 19.27%.

Financial highlights

• Net operating income increased 3.2% YoY to RM22.86 billion.

• Net fund-based income rose 1.6% YoY to RM16.03 billion, supported by 1.3% YTD annualized loans growth.

• Non-interest income reached RM7.96 billion, up 6.3% YoY, with wealth fees up over 23%.

• Pre-provisioning operating profit grew 2.7% YoY to RM11.68 billion.

• EPS increased 3.6% YoY to 64.9 sen.

Outlook and guidance

• FY2025 guidance revised: ROE on track at 11.5%, cost-to-income ratio below 49%, and stable NIM.

• Group loans growth expected at ~3% constant currency.

• Credit costs projected to remain benign amid stable asset quality.

• Economic growth forecasts for 2025: Malaysia (4.0–4.7%), Singapore (4.0–4.7%), Indonesia (5.1%).

• Focus on customer centricity, digital modernization, and growth in wealth management and non-retail segments.