Malayan Banking (MAYBANK) Q4 2024 earnings summary

Executive summary

• Net profit for FY2024 rose 7.9% year-over-year to RM10.09 billion, driven by strong net operating income growth of 8.1% to RM29.57 billion and higher contributions from wealth management, investment banking, global markets, and insurance/takaful.

• Non-interest income surged 22.6% to RM9.88 billion, while insurance/takaful service result jumped 133.5% to RM1,284.5 million.

• Return on equity improved to 11.1% from 10.8% in FY2023, with a KPI of ≥11.3% set for FY2025.

• Cost-to-income ratio remained stable at 48.9%, with overhead expenses up 8.0% year-over-year.

• Asset quality strengthened, with gross impaired loans ratio improving to 1.23% and net credit charge off rate dropping to 26 bps.

Financial highlights

• Net fund-based income rose 2.0% to RM19.69 billion, supported by 5.3% loans growth year-over-year.

• Total operating income for FY2024 was RM31.50 billion, with net operating income at RM29.57 billion.

• Pre-provisioning operating profit increased 8.2% to RM15.11 billion.

• Dividend per share for FY2024 was 61 sen, with a payout ratio of 73.0% and dividend yield of 6.0%.

• Market capitalisation reached RM123.57 billion as of 31 December 2024.

Outlook and guidance

• FY2025 guidance: loans growth of 5–6%, cost-to-income ratio ≤49%, return on equity ≥11.3%, and net credit charge off rate ≤30 bps.

• The Group aims to leverage economic growth in home markets, accelerate digital and customer-centric initiatives, and maintain strong liquidity and capital.

• Stable economic and loan growth expected across Malaysia, Singapore, and Indonesia, with benign credit costs and resilient asset quality.