Malayan Banking Bhd (Maybank) posted a slight decline in profitability for the first quarter ended March 31, 2026 (1Q26), as stronger core earnings and improved margins were offset by weaker trading income and lower non-interest income.
In a statement, the banking giant said its net profit eased to RM2.48 billion from RM2.58 billion a year earlier, while revenue also fell to RM14.91 billion from RM16.87 billion, reflecting softer market conditions despite resilient underlying banking operations.
The group said performance was supported by stronger net interest income, improved asset quality management and higher core fees from wealth management, investment banking and global markets sales. However, gains were partially offset by a decline in trading income amid a more challenging market environment.
Net interest margin improved 10 basis points year-on-year to 2.14%, supported by a lower-cost funding mix and a stronger current account and savings account ratio of 41.1%. Net fund-based income rose 3.2% to RM5.11 billion, underpinned by stable loan growth.
Non-interest income, however, fell to RM1.99 billion due to weaker trading and markets-related performance, leading to a 7.9% decline in net operating income to RM7.1 billion.
Despite the softer top line, Maybank maintained disciplined cost control, with operating expenses down 5.3%, bringing the cost-to-income ratio to 49.9%. Return on equity remained healthy at 11.2%.
Asset quality stayed broadly stable, with gross impaired loans at 1.34% and loan loss coverage at 104.4%. Net credit charge-offs improved to 10 basis points, reflecting lower corporate provisions, although the bank maintained RM2.4 billion in macro and geopolitical risk overlays.
Group loans grew 0.9% to RM684.5 billion, driven by expansion in Malaysia and Singapore.
President and Group CEO Datuk Seri Khairussaleh Ramli said the results reflect Maybank’s diversified franchise and disciplined execution, supported by strong capital and liquidity buffers.
Looking ahead, Maybank said it will continue advancing its ROAR30 strategy, focusing on regional integration, Islamic finance, wealth management and corporate banking, while investing in technology, data and artificial intelligence to drive long-term productivity and capital efficiency.
