Maybank posts higher Q4 earnings despite revenue decline

[KUALA LUMPUR] Maybank’s net profit for the fourth quarter rose 5.7 per cent to RM2.7 billion (S$877.3 million), supported by higher net fund-based income and lower net impairment provisions, the bank said on Thursday (Feb 26).

Malaysia’s largest lender also attributed the increase in net profit for the three months ended Dec 31, 2025, to steady income growth, disciplined cost management and resilient asset quality.

Earnings per share for the quarter came in at 22.15 sen, up from 20.98 sen a year earlier.

Revenue, however, declined 5.5 per cent to RM15.8 billion in Q4.

For the full year, Maybank posted net profit of RM10.5 billion, up 4.2 per cent from RM10.1 billion in FY2024. Revenue, meanwhile, fell 3.7 per cent to RM66.4 billion from RM68.9 billion.

Earnings per share for FY2025 came in at 87.05 sen, up from 83.61 sen a year earlier.

Higher dividend payout

The lender declared a second interim cash dividend of 33 sen per share, slightly higher than the 32 sen declared the previous year.

Combined with the 30 sen dividend per share announced on Aug 26, Maybank’s full-year dividend amounted to 63 sen per share.

This translates to a payout ratio of 72.4 per cent, broadly in line with the previous year’s 73 per cent payout of 61 sen per share.

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Margins hold firm

Net interest income (including Islamic banking) for Q4 rose 7.6 per cent to nearly RM5.8 billion, while full-year net interest income increased 3.1 per cent to RM21.8 billion.

The lender’s net interest margin remained stable at 2.05 per cent in FY2025 despite rate cuts across markets.

Maybank said that improved asset quality, disciplined cost management and optimised capital management lifted return on equity to 11.7 per cent from 11.1 per cent in FY2024.

The lender added that cost management remained a focus, with the cost-to-income ratio improving slightly to 48.8 per cent despite a 2.6 per cent year-on-year rise in overheads. This was driven by higher personnel, credit card, IT and marketing expenses.

Meanwhile, pre-provisioning operating profit grew 2.8 per cent to RM15.5 billion.

Zamzamzairani Mohd Isa, chairman of Maybank, noted that even though global uncertainties persist, domestic demand across local markets continue to provide underlying support.

Malaysia leads loan growth

Maybank’s total group loans expanded 1.7 per cent, led by Malaysia increasing 6.1 per cent and Singapore rising 5 per cent.

Impaired loans ratio stood at 0.79 per cent as at end-December, compared with 0.51 per cent the year before.

In Malaysia, expansion was driven by both its community financial services and global banking businesses growing 6.7 per cent and 4.8 per cent, respectively. This reflects resilient domestic demand and continued business activity across key sectors, said Maybank president and group chief executive Khairussaleh Ramli.

Singapore remained steady

Maybank Singapore’s profit before tax rose 1.3 per cent to S$711.3 million, driven by stronger net fund-based income that offset slower non-interest income, higher overheads and reduced impairment write-backs.

Net fund-based income climbed 11.8 per cent year on year to S$773.8 million, fuelled by improved net interest margins from lower funding costs and proactive liquidity management despite softer asset yields.

“Non-interest income dipped 0.4 per cent amid weaker treasury income from lower foreign exchange gains and trading securities, though growth in wealth, loans, trade fees and securities sales provided some offset,” said the lender.

Indonesia rebounds

Meanwhile, Maybank Indonesia’s net profit increased 48.5 per cent year on year in FY2025 to 1.66 billion rupiah (S$125,000), driven by tighter cost controls and lower loan loss provisions.

Profit before tax climbed 38.9 per cent to 2.22 billion rupiah, underpinned by higher net fund-based income and non-interest income from global markets turnaround and stronger recovery and wealth income.