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KUALA LUMPUR — Malayan Banking Bhd (Maybank), Malaysia’s largest lender, reported a slight decline in net profit for the first quarter of 2026, underscoring the challenges of navigating volatile markets even as its core banking operations showed resilience.
The bank posted a net profit of RM2.48 billion, down from RM2.58 billion in the same period last year. Revenue fell to RM14.91 billion compared with RM16.87 billion a year earlier, reflecting weaker trading income.
Yet, stronger margins, disciplined cost control, and steady loan growth helped cushion the impact.
Margins and Core Income Hold Firm
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Maybank’s net interest margin (NIM) improved to 2.14 percent, up 10 basis points year-on-year, signaling healthier lending spreads.
Net fund-based income rose 3.2 percent to RM5.11 billion, supported by stable loan demand and improved funding costs.
Fee-based businesses also contributed positively. Wealth management and investment banking fees expanded, while Global Markets sales strengthened.
However, non-interest income fell to RM1.99 billion, dragged down by weaker trading and market-related performance.
Cost Discipline and Efficiency
Operating expenses declined 5.3 percent year on year, reflecting Maybank’s ongoing focus on efficiency.
The bank managed to reduce costs despite higher technology investments, a sign of its commitment to digital transformation while maintaining profitability.
The CASA ratio rose to 41.1 percent, helping lower funding costs and supporting margin expansion.
Return on equity remained stable at 11.2 percent, underscoring the bank’s ability to sustain shareholder returns despite market headwinds.
CEO’s Outlook
Group President and CEO Datuk Seri Khairussaleh Ramli emphasized Maybank’s resilience, noting that strong capital and liquidity buffers allow the bank to continue supporting individuals, SMEs, and corporates.
He highlighted the importance of maintaining prudent provisioning and asset quality as global uncertainties persist.
Risks and Future Prospects
Risks market volatility could continue to weigh on trading income, while rising technology investments may pressure short-term cost efficiency.
Stronger fee based businesses, margin expansion, and disciplined cost management are expected to underpin earnings.
Stable asset quality provides resilience against macroeconomic uncertainties.
