Malayan Banking (MAYBANK) Q4 2025 earnings summary

Executive summary

• Net profit for FY2025 rose 4.2% year-over-year to RM10.51 billion, with ROE improving to 11.7% and NIM stable at 2.05%, driven by higher net interest and Islamic Banking income, improved insurance/takaful results, and disciplined cost management.

• Cost-to-income ratio remained steady at 48.8%, with operating costs up 2.6% YoY.

• Strong liquidity and capital positions, with CASA ratio at 40.5%, CET1 at 15.13%-16.04%, and total capital ratio at 19.05%-19.96%.

• Full-year dividend of 63 sen per share declared, yielding 6.0% with a payout ratio of 72.4%.

• Surpassed all four sustainability targets, mobilizing RM176.1 billion in sustainable finance and achieving a 57.8% reduction in carbon emissions.

Financial highlights

• Net operating income grew 2.7% YoY to RM30.38 billion; net fund-based income up 2.7%-3.1% to RM20.23-21.81 billion on 1.7% loans growth.

• Non-interest income increased 2.7% YoY to RM10.15 billion, driven by wealth and investment banking fees.

• Pre-provisioning operating profit rose 2.8% YoY to RM15.54 billion.

• Net credit charge-off rate improved to 8 bps from 26 bps YoY, reflecting lower provisions.

• EPS increased to 87.1 sen.

Outlook and guidance

• FY2026 guidance targets ROE ≥11.8%, NIM between 2.05%-2.10%, and cost-to-income ratio below 49%.

• Loans growth expected at 4%-5% YoY, with NCC to normalize around 20 bps.

• Economic growth in home markets projected to remain stable, with Malaysia GDP at 5.1%, Singapore at 3.6%, and Indonesia at 5.2%.

• ROAR 30 strategy aims for 13%-14% ROE and cost-to-income ratio below 47% by 2030, focusing on values-based offerings and customer experience.