KUALA LUMPUR (Aug 26): Malaysia’s biggest bank by assets Malayan Banking Bhd (KL:MAYBANK) said on Tuesday its net profit rose nearly 4% in the second quarter from a year earlier as higher income offset rising provisions for bad debts.
Net profit for the three months ended June 30, 2025 (2QFY2025) was RM2.63 billion, or 21.75 sen per share, according to an exchange filing. Year-on-year, net interest income inched up 1.1% while non-interest income climbed 18% during the quarter.
Maybank also reiterated its target for a return on equity of at least 11.3% for FY2025.
However, Maybank lowered its loan growth guidance for the year to around 3% from 5%-6% previously, citing client caution amid tariff uncertainties, which had led to delays in planned investments and capital-raising activities.
A first interim cash dividend of 30 sen per share was also declared with entitlement and payment dates to be announced later.
Maybank's net interest margin, a measure of profitability from interests charged on loans after deducting returns paid on deposits, could shrink further in an environment of lower policy rates, after narrowing to 2% in the second quarter.
Gross loans grew 1.3% while provisions for impairment losses increased 11% year-on-year to RM423.4 million from asset quality weakness in specific commercial and corporate borrowers.
Maybank’s insurance business posted a 26.5% decline in quarterly service results to RM284.4 million, weighed by weaker net investment income amid subdued equity market conditions. Gross written premiums in the life segment fell 5.2%, while general insurance premiums rose 1.1%.
For the first six months, net profit amounted to RM5.22 billion, an increase of 4% when compared to the same period last year.
At the end of June, gross impaired loans — debts deemed unrecoverable as a percentage of total loans — increased slightly to 1.3% from 1.29% a year ago. Loan loss coverage slipped to 117.9%.
Maybank’s common equity Tier 1 capital — a measure of a bank’s capital strength based on the highest quality of regulatory capital — was 14.68% while the liquidity coverage ratio remained stable at 138.1%, above the regulatory requirement of 100%.
At the time of writing on Tuesday, Maybank's shares were down half a sen or 0.51% at RM9.80, giving the group a market value of RM118.39 billion.