KUALA LUMPUR (May 28): Malaysian banking stocks fell on Thursday as investors assessed what appears to be a soft quarter for the country’s top lenders.
Malayan Banking Bhd (KL:MAYBANK) declined 4% to RM10.50, its lowest since January, after the country’s biggest by asset size reported a weaker quarter. The Bursa Malaysia Financial Services Index, which also tracks insurers and pawnbrokers, was the day’s worst-performing sector.
Net profit for Maybank's first quarter ended March 31, 2026 (1QFY2026) came in at RM2.48 billion, putting it at about 23% of the Bloomberg consensus’ full-year forecast of about RM11.02 billion.
A majority of 20 research houses tracked by Bloomberg have ‘buy’ on Maybank with only seven having ‘hold’ and one on ‘sell’ call ahead of the results announcement. The average target price is RM12.64.
On top of intense competition, Malaysian banks are grappling with volatile markets and headwinds from the unfolding international tensions. While banks remained well capitalised and bad debts remained low, there are concerns of rising provisions as the war in the Middle East drags on.
Malaysian policymakers have rolled out measures, including a RM5 billion low-interest facility backed by the central bank for small and medium businesses affected by the fallout from the conflict now nearing its three-month mark.
CIMB Group Holdings Bhd (KL:CIMB) dropped 2% to RM7.49 after reporting a dip in earnings in the first quarter even as analysts said results by Malaysia’s number two bank were largely within expectations.
Public Bank Bhd (KL:PBBANK) slipped 0.6% to RM4.77 as the closest rival of Maybank and CIMB warned of downside risks to its outlook for the year after reporting a flat first-quarter.