Malaysian banks post mixed mid-2026 results as record loan growth offsets margin squeeze
H2 outlook hinges on continued strong credit demand; direction of broader non-fee income remains uncertain
Add BT as a preferred source
[KUALA LUMPUR] Malaysian banks entered the second half of 2026 with record business-loan growth and a strong lending pipeline. But earnings momentum was mixed as margin compression, volatile non-interest income and higher provisions weighed on several lenders.
Eight of the 10 listed banking groups reviewed by The Business Times posted higher net profit for the April-to-June quarter, according to Bursa Malaysia filings, although the growth was modest. MBSB and Affin Bank recorded declines.
The earnings outlook for H2 is expected to hinge increasingly on whether stronger credit demand can cushion lingering margin pressure, as the effects of last year’s rate cut continue to filter through the sector.
