Malayan Banking Bhd (Maybank) recorded a net profit of RM2.48 billion for the first quarter ended March 31, 2026 (1Q 2026), compared to RM2.58 billion last year, supported by improved net interest margins (NIMs), disciplined cost and asset quality management, and higher core fees.
In a filing with Bursa Malaysia, the banking group said higher core fee income was driven mainly by wealth management and investment banking-related fees, as well as stronger Global Markets (GM) sales during the quarter.
However, the performance was partially offset by lower trading income amid a challenging market environment.
Meanwhile, revenue decreased to RM14.91 billion during the quarter from RM16.87 billion previously.
“Maybank’s 1Q 2026 performance reflects the strength and resilience of its diversified franchise and disciplined execution amid volatile market conditions.
“The bank continued to deliver steady earnings supported by stronger NIM, prudent cost management and broadly stable asset quality during the quarter,” said president and group chief executive officer Datuk Seri Khairussaleh Ramli.
He said the group also saw continued progress across several key businesses, particularly wealth management, investment banking and flow business, reflecting the strength of the its customer franchise.
NIM improved to 2.14 per cent from 2.04 per cent a year earlier, a 10-basis points (bps) uplift year-on-year (y-o-y), supported by lower cost funding mix and a higher current account and savings account (CASA) ratio of 41.1 per cent across home markets.
“Our balance sheet fundamentals remain sound with strong capital and liquidity buffers, as well as continued CASA strength across our home markets, enabling us to continue supporting individuals, small and medium enterprises (SMEs) and large corporates,” said Khairussaleh.
Return on equity remained healthy at 11.2 per cent.
Maybank said non-interest income declined to RM1.99 billion during the quarter due to weaker trading and markets-related income.
Net fund-based income grew 3.2 per cent y-o-y to RM5.11 billion, driven by improved NIM and stable loans growth, while net operating income stood at RM7.10 billion compared with RM7.71 billion previously.
It added that cost management remained a priority, with operating expenses reducing by 5.3 per cent y-o-y and 3.1 per cent quarter-on-quarter (q-o-q), despite an increase in technology investment costs.
“As a result, the bank’s cost-to-income ratio closed at 49.9 per cent,” said Maybank, adding that gross impaired loans ratio stood at 1.34 per cent, while loan loss coverage remained at a reasonable level at 104.4 per cent, or 113.6 per cent excluding provision reclassification relating to a significant restructured borrower.
Meanwhile, net credit charge-off ratio improved to 10 bps, reflecting lower provisions for corporate borrowers, partially offset by additional overlays arising from emerging macroeconomic and geopolitical risks which stood at RM2.4 billion.
Group loans expanded 0.9 per cent y-o-y to RM684.5 billion, supported primarily by growth in Malaysia, which increased 5.5 per cent, and in Singapore which rose 3.6 per cent.
On prospects, Maybank said the group will continue to grow its core businesses in its home markets while further integrating its regional footprint to better serve its regional clients under the ROAR30 strategy launched this year.
“The group aims to build scalable businesses in Islamic finance, regional wealth management, regional transactions and payments, as well as regional corporate and investment banking.
“The strategy also prioritises strengthening foundational capabilities through sustained investments in technology, data and artificial technologies, developing a future‑ready workforce, and driving productivity and capital optimisation,” it said.
