Malaysia's Maybank reports Q2 FY26 net profit of RM 2.69 billion on lower impairments and costs

Malayan Banking Berhad, better known as Maybank, reported a net profit of RM 2.69 billion for the second quarter of fiscal year 2026, up 2.4% from RM 2.63 billion in the same period a year earlier, according to results released by the group on Thursday.

The modest improvement was underpinned by lower net impairment provisions and disciplined cost management at Malaysia's largest bank by assets, while quarterly revenue dipped to RM 16.08 billion from RM 17.08 billion a year earlier.

COSTS AND IMPAIRMENTS FALL

Allowances for impairment losses on loans fell 26% year on year to RM 313.5 million, while overhead expenses declined 2.5% to RM 3.69 billion, lowering the cost-to-income ratio to 49.1%. Net fund-based income rose 1.9% to RM 5.03 billion and core fees increased, particularly in wealth, investment banking and banking-related fees, but non-interest income fell 9.6% year on year to RM 2.49 billion as market volatility weighed on wealth and treasury-related fees.

Gross loans grew 2.7% year on year to RM 695.9 billion, supported by growth across its key home markets. Group CASA deposits rose 7.6% year on year, lifting the CASA ratio to 41.5% from 37.8%.

Net interest margin for the first half expanded 10 basis points year on year to 2.12%, which Maybank attributed to discipline in funding costs and loan pricing, and quarterly return on equity improved to 12% from 11.6%.

REGIONAL FRANCHISE STAYS RESILIENT

Maybank is Malaysia's largest banking group and one of the biggest lenders in Southeast Asia by market capitalisation, with an operating footprint that reaches across ASEAN and beyond into Greater China and selected international financial centres. The board declared a single-tier first interim dividend of 31 sen per share, up from 30 sen a year earlier, of which 5 sen is electable under the dividend reinvestment plan.

Maybank said the Middle East conflict had a milder-than-expected impact on its borrowers.

Chairman Tan Sri Zamzamzairani Mohd Isa said the lender remains cautiously optimistic about its prospects heading into the second half of 2026.