Malayan Banking Berhad posted a net profit of RM10.51 billion for the financial year ended Dec 31, 2025 (FY25), up 4.2% year-on-year. However, revenue declined by RM2 billion to RM66 billion
Profit before tax on the other hand increased 4.6% to RM14.33 billion, while net operating income rose 2.7% to RM30.38 billion.
The bank declared a full cash second interim dividend of 33 sen per share, bringing total dividends for FY25 to 63 sen per share. This translates to a dividend payout ratio of 72.4% and a dividend yield of 6.0%.
Net fund-based income grew 2.7% to RM20.23 billion, while non-interest income rose 2.7% to RM10.15 billion.
Despite rate cuts across markets, net interest margin (NIM) remained stable at 2.05%.
Pre-provisioning operating profit (PPOP) expanded 2.8% to RM15.54 billion, even as overhead expenses increased 2.6% year-on-year due to inflationary pressures on personnel costs, higher IT spending, marketing expenses and credit card-related fees. The cost-to-income ratio improved marginally to 48.8%.
Return on equity (ROE) strengthened to 11.7% from 11.1% in FY24, reflecting improved asset quality and optimised capital management.
Asset quality improved further during the year, supported by credit restructuring efforts and portfolio recoveries.
Net impairment provisions fell 10.1% to RM1.48 billion, while the net credit charge-off rate improved significantly to 8 basis points from 26 basis points a year earlier.
Gross impaired loans ratio stood at 1.28%, with loan loss coverage remaining healthy at 106.7%.
Group loans expanded 1.7% year-on-year, led by Malaysia and Singapore, which recorded growth of 6.1% and 5.0% respectively.
In Malaysia, growth was driven by its Global Community Financial Services (GCFS) and Global Banking (GGB) segments, which rose 6.7% and 4.8% respectively.
Deposits remained strong, with CASA balances increasing 9.4% year-on-year, lifting the CASA ratio to 40.5%.
Liquidity metrics remained robust, with the Group’s Liquidity Coverage Ratio (LCR) at 138.2% and Net Stable Funding Ratio (NSFR) at 116.6%. The Common Equity Tier 1 (CET1) ratio stood at 15.13%, while the total capital ratio was 19.05%.
For the fourth quarter (4QFY25), net profit rose 5.7% year-on-year to RM2.68 billion, while PBT climbed 9.0% to RM3.72 billion.
On a quarter-on-quarter basis, net profit grew 2.1% from 3QFY25, with PBT increasing 6.1%, driven by higher net fund-based income and lower impairment provisions.
