KUALA LUMPUR (Feb 26): Malayan Banking Bhd (KL:MAYBANK) said on Thursday its net profit rose 5.7% in the final quarter of 2025 from a year earlier as provisions fell sharply and interest income climbed.
Net profit at the country’s biggest bank was RM2.68 billion for the three months ended Dec 31, 2025 (4QFY2025). Year-on-year, net interest income for the quarter rose 6% to RM5.33 billion while other operating income, such as fees and trading gains, fell 8.6% to RM2.18 billion.
A dividend of 33 sen per share was declared.
For 2026, Maybank is targeting a return on equity of at least 11.8%, after achieving 11.7% in 2025.
Asset quality management remains a priority for the bank, with plans to actively manage credit portfolios while maintaining liquidity and capital buffers to support disciplined growth.
Maybank said it will continue to expand core businesses in its home markets and leverage regional connectivity. Key focus areas include global Islamic finance, regional wealth management, transactions and payments, and corporate and investment banking, the lender said.
For the entire FY2025, Maybank reported a net profit of RM10.51 billion, up 4.2% from the previous year, according to Thursday's filing with Bursa Malaysia. Net interest income grew 2.7% to RM20.23 billion, driven by loan expansion, while non-interest income rose 2.7% to RM10.15 billion.
Operating expenses increased 2.6% to RM14.84 billion, reflecting higher personnel costs, administration and transaction-related fees, and IT costs. The cost-to-income ratio nevertheless improved marginally to 48.8% from 48.9% in FY2024.
The net interest margin, a measure of profitability from interest charged on loans after deducting returns paid to depositors, was 2.05% in 2025 and unchanged from the prior year.
In terms of asset quality, Maybank’s gross impaired loans — debts deemed unrecoverable as a percentage of total loans — deteriorated five basis points to 1.28%.
Dividends for the year totalled 63 sen per share, up from 61 sen per share in FY2024.
The bank’s common equity Tier 1 capital ratio, a measure of a bank’s capital strength based on the highest quality of regulatory capital, improved to 15.1% post-dividend — a level considered high by analysts.