26-05-2025
- Business
- Malaysian Reserve
Maybank 1Q net profit up 4% to RM2.6b despite softer operating income
MALAYAN Banking Bhd (Maybank) saw a 4% increase in net profit to RM2.59 billion for the first quarter ended March 31, 2025 (1Q25), up from RM2.49 billion in the same quarter a year ago, bolstered by stronger insurance and takaful operations, steady loan growth and improved asset quality.
The upbeat result came despite operating income and unrealised investment losses amid continued financial market volatility.
Revenue for the quarter declined to RM16.87 billion from RM18.35 billion a year earlier, the group said in a filing with Bursa Malaysia today.
The banking group said net interest income and Islamic banking income grew marginally by 0.8% to RM5.29 billion in 1Q25 from RM5.24 billion previously.
Its insurance and takaful business delivered a standout performance, surging 159% to RM471.4 million compared to RM182.1 million a year earlier.
However, Maybank's other operating income declined 26.8% year-on-year to RM2.1 billion, mainly due to unrealised mark-to-market losses on financial instruments at fair value through profit or loss (FVTPL), totaling RM1.14 billion, versus gains of RM1.76 billion in the corresponding quarter of FY24.
This was partially cushioned by higher foreign exchange gains and derivative revaluation gains.
Group overhead expenses rose 2.3% to RM3.74 billion, largely on increased personnel, marketing and establishment costs.
On the positive side, loan-related impairment allowances dropped 17.9% to RM384.2 million, while impairment on financial investments fell sharply by 68.8% to RM22.1 million, reflecting improved credit quality across the portfolio.
Across business segments, Maybank's Community Financial Services (CFS) division recorded a 5.5% rise in profit before tax and zakat (PBTZ) to RM1.48 billion, supported by lower impairment losses and higher operating income.
Corporate Banking and Global Markets PBTZ jumped 13.7% to RM1.68 billion, while Group Asset Management returned to the black with a marginal profit of RM124,500.
However, Investment Banking PBTZ declined 37.7% to RM74.7 million due to higher overheads and weaker trading income.
On outlook, Maybank cautioned that economic growth across its key Asean markets is expected to moderate in 2025 due to global trade uncertainties, particularly the potential imposition of reciprocal tariffs between major economies.
In a separate statement, its president & group CEO, Datuk Khairussaleh Ramli said the global economic outlook remains uncertain.
'Nevertheless, we expect continued growth in the markets that we operate. Key to us is to support our clients especially those in need during this challenging period. At the same time, we continue to strengthen our position across Asean, capitalising on intra-Asean and Asean+ opportunities, particularly in trade, investment and cross-border connectivity.'
Despite the macroeconomic headwinds, the group said it remains committed to delivering its final-year targets under the M25+ strategic plan, with a strong focus on customer centricity, digital transformation and growth in high-potential segments such as wealth management, mid-cap corporates and bancassurance.
Maybank added that it will maintain a prudent stance on liquidity, capital and asset quality, while closely monitoring trade-related risks that may impact lending activity and capital market flows. — TMR
