Malayan Banking Berhad (Maybank) delivered its second-quarter performance for the financial year 2026 (2Q FY26), posting a 2.4 percent year-on-year increase in net profit to RM2.69 billion. This brought the banking group’s first-half (1H FY26) net profit to RM5.17 billion slightly lower than 1H FY25 of RM5.21 billion
Profit before tax for the quarter rose 3.7 percent year-on-year to RM3.64 billion, supported by disciplined cost management, expanding core fee income, and a steep drop in net impairment provisions.
In tandem with the performance, Maybank declared a higher interim dividend of 31 sen per share (including a Dividend Reinvestment Plan of 5 sen), representing a total payout of RM3.75 billion or a 72.5 percent payout ratio.
Net operating income reached RM7.51 billion for the quarter, driven by a 1.9 percent rise in net fund-based income to RM5.03 billion. Net interest margin (NIM) expanded 10 basis points year-on-year to 2.10 percent.
Investment banking (IB) related fees surged 58.4 percent, wealth management fees jumped 61.5 percent, and banking-related fees grew 2.6 percent. Net impairment provisions dropped 51.4 percent to RM0.23 billion, while net credit charge (NCC) fell 16 basis points to 8 basis points. Loan Loss Coverage (LLC) remained strong at 103.1 percent. Operating expenses fell 2.5 percent to RM3.69 billion despite technology investment costs, improving the Cost-to-Income Ratio (CIR) to 49.1 percent.
The group’s annualised Return on Equity (ROE) rose to 12.0 percent from 11.6 percent in the previous corresponding quarter.
For 1H FY26, Maybank maintained a well-defended NIM of 2.12 percent. Core fees grew 12.1 percent overall, bolstered by a 48.4 percent expansion in wealth management fees due to higher investment and bancassurance income. Total overhead expenses for the half-year period declined 3.9 percent year-on-year.
Group gross loans expanded 2.7 percent year-on-year to RM695.9 billion, picking up momentum in the second quarter with a 1.7 percent quarter-on-quarter increase. Growth was anchored across Maybank’s core home markets:
Malaysia’s total loans grew 5.5 percent year-on-year, driven by Consumer loans (+5.7 percent) and SME loans (+2.7 percent).
While Indonesia expanded 4.3 percent year-on-year, led by Global Banking loans (+6.1 percent) and Singapore grew 3.4 percent year-on-year, supported by a 7.4 percent increase in Community Financial Services loans.
Maybank maintained solid balance sheet fundamentals, supported by strong Current Account Savings Account (CASA) acquisition. Group CASA grew 7.6 percent year-on-year, improving the group CASA ratio to 41.5 percent.
Regionally, CASA ratios stood at 44.0 percent in Malaysia, 34.2 percent in Singapore, and 63.5 percent in Indonesia as of June 2026.
The group’s liquidity indicators remained well above regulatory thresholds, with the Liquidity Coverage Ratio (LCR) at 130.0 percent and the Net Stable Funding Ratio (NSFR) at 113.4 percent. Maybank’s capital position remained robust, with a Common Equity Tier 1 (CET1) ratio of 14.92 percent and a Total Capital Ratio of 18.68 percent.
