Latest news with #MalayanBankingBhd
The Star
27-05-2025
- Business
- The Star
‘Commendable earnings growth' drives 1Q25 results
PETALING JAYA: Malaysia's largest banking group began its new financial year with a decline in interest income, amid cautious business sentiment and moderated credit demand. However, thanks to a bigger decline in interest expense driven by lower deposits, Malayan Banking Bhd (Maybank) managed to report a stronger net interest income on a year-on-year basis for the first quarter ended March 31, 2025 (1Q25). Maybank president and group chief executive officer Datuk Khairussaleh Ramli described the lender's 1Q25 results as reflecting 'commendable earnings growth', underpinned by stable net interest margins, better asset quality and disciplined cost management. Nonetheless, Khairussaleh flagged that the global economic outlook remains uncertain. That said, he expects continued growth in the markets where the group operates. In a filing yesterday, Maybank reported a 6.5% y-o-y drop in interest income for 1Q25. After adjusting for expenses, net interest income rose 2.2% y-o-y to RM3.22bil. The net interest margin remained stable at 2.04%, supported by a 2.3% increase in net fund-based income to RM4.95bil. This was on the back of a 3.2% y-o-y loan growth across all home markets and key business segments. However, annualised loan growth was comparatively lower at 2.2%, reflecting the current operating environment, which continues to be impacted by cautious business sentiment and moderated credit demand. Non-interest income (NOII), which contributed 35.8% of total income, stood at RM2.76bil, supported by improved wealth management performance. Overall, Maybank's net profit for 1Q25 rose 4% y-o-y to RM2.59bil. Looking ahead, Khairussaleh said Maybank continues to strengthen its position across Asean, capitalising on intra-Asean and Asean + opportunities, particularly in trade, investment and cross-border connectivity. 'Our focus on completing M25+ (corporate strategy) remains steadfast, as we continue to drive meaningful progress on our strategic thrusts – strengthening our core, accelerating digital transformation and embedding sustainability in everything we do. 'We are particularly encouraged by the growing impact of our values-based solutions, which continue to create tangible benefits for our customers, while delivering positive social impact and environmental outcomes across the markets we serve,' he added. On loan performance, Maybank reported y-o-y increases across all its home markets: Malaysia (8%), Singapore (5.9%) and Indonesia (0.8%). On an annualised basis, loan growth was led by Malaysia at 6%, followed by Singapore at 3.3%. Meanwhile, the Indonesian market slid by 17.2%, mainly in the Global Banking division, due to the portfolio rebalancing initiative. The group's deposit grew by 5.1% y-o-y with Singapore seeing a 17.9% jump, while Malaysia recorded a modest 4.4% increase. On an annualised basis, deposits in Malaysia expanded by 3.4%, while Singapore and Indonesia contracted by 0.2% and 24.8%, respectively. The deposit reduction in Indonesia aligns with the portfolio rebalancing and releasing of high-cost deposits. In 1Q25, Maybank posted a net loss of RM670.1mil on its foreign-exchange translation, compared with a net gain of RM207.5mil in 1Q24. Overhead costs were also higher in 1Q25, rising by 2.3% y-o-y to RM3.7bil, driven by higher personnel expenses, marketing costs and software maintenance expenses. On a segmental basis, Maybank's Group Community Financial Services registered a 5.5% y-o-y increase in pre-tax profit for 1Q25 to RM1.48bil, supported by a 1.9% y-o-y growth in net operating income to RM4.5bil. Maybank attributed this to steady growth in both NOII and net fund-based income, which rose 6.5% and 0.4%, respectively. Meanwhile, the Group Global Banking (GGB) division recorded a 9.8% y-o-y increase in pre-tax profit for 1Q25 to RM1.76bil, driven by higher income and lower net impairment losses. Corporate loans grew across GGB's core markets, led by Malaysia with a 6.3% increase, while Singapore was up by 0.4%. On the funding side, customer deposits increased by 1.4% y-o-y, supported by a solid 4.8% growth in current account savings account, with Singapore delivering a substantial 64.5% increase. > TURN TO PAGE 2 The group's Islamic Banking business also posted a strong growth, with pre-tax profit rising 38.8% y-o-y to RM1.14bil in 1Q25, underpinned by a stable 1.3% increase in total income to RM2.13bil. Additionally, Etiqa Insurance & Takaful's underwriting income surged nearly threefold y-o-y to RM354.3mil, driven by contingency surplus release for the Family Takaful portfolio and better claims experience in the General/General Takaful portfolio. Maybank's Indonesian arm posted a robust 290.9% y-o-y increase in pre-tax profit to 506 billion rupiah in 1Q25, driven mainly by a significant rise in NOII and improved provisions. The group's Singaporean arm registered a 20.1% y-o-y rise in net fund-based income to S$193.1mil, benefiting from lower funding costs and write-backs in term loans effective interest rate adjustment. However, NOII dipped slightly by 1.6% to S$143.5mil due to lower Treasury income. Overall, Maybank reported asset quality remained healthy in 1Q25, with pre-provisioning operating profit rising 1.3% y-o-y to RM3.97bil. Annualised return on equity improved to 11.3% from 11.1% in 2024. Net impairment provisions also improved 21.7% to RM426.4mil on lower loan provisions by 17.9% to RM0.38bil. As a result, the net credit charge-off rate eased to 23 basis points (bps) from 2 8bps in the previous quarter. The gross impaired loans ratio improved by 5 bps to 1.27% in 1Q25 compared with 1Q24, while loan loss coverage remained strong at 122.9%. Maybank also maintained robust capital and liquidity positions in 1Q25 with a Common Equity Tier 1 capital ratio of 14.88% and total capital ratio of 17.96%. The group's liquidity coverage ratio remained stable at 135.7%, well above the regulatory requirement of 100%.
New Straits Times
26-05-2025
- Business
- New Straits Times
Maybank net profit at RM2.6bil, driven by corporate banking
KUALA LUMPUR: Malayan Banking Bhd (Maybank) net profit has risen to RM2.59 billion in the first quarter ended on March 31, 2025 (1Q FY2025) from RM2.49 billion a year ago, driven by the group's corporate banking and global markets segment. Revenue for the quarter under review fell to RM16.87 billion versus RM18.35 billion previously, it said in a Bursa Malaysia filing today. The group's net interest income and Islamic banking income for the quarter under review increased by RM42.2 million or 0.8 per cent to RM5,286.6 million versus a year ago. Its group insurance/takaful service rose by RM289.3 million to RM471.4 million compared to 1Q FY2024. Maybank said the group's other operating income was RM2.09 billion, a decrease of RM768.5 million, or 26.8 per cent, from RM2.87 billion previously due to unrealised loss on revaluation of financial investments at fair value through profit or loss (FVTPL) of RM765.6 million versus unrealised gain of RM761.1 million a year ago. "The losses were also driven by unrealised loss on revaluation of financial liabilities at FVTPL of RM374.6 million from RM995.5 million previously, and lower investment income of RM161.3 million. "The decreases were mitigated by unrealised gain on revaluation of derivatives of RM816.0 million from RM1.14 billion previously, and higher foreign exchange gain of RM498.9 million. On prospects, the group will continue to double down on penetration of its extensive customer base through focus on segments, cross-selling endeavours and leveraging ecosystem partnerships regionally. "We will also focus on super growth areas of wealth management, mid-market cap, non-retail and bancassurance segments whilst tapping into global market flows," it said. Maybank will also seek to maintain sound liquidity, robust asset quality, and strong capital levels to support disciplined asset growth. "The volatility and uncertainty surrounding potential trade disruptions, however, may have an impact on the growth and performance of the group, as a result of slower economic growth, a 'wait-and-see' stance in investments and capital raising activities, and from financial markets' volatility," it added. No interim dividend was recommended for 1Q FY2025. In a separate statement, Maybank president and group chief executive officer Datuk Khairussaleh Ramli said the bank has continued to deliver commendable earnings growth for 1Q FY2025 underpinned by stable net interest margins, better asset quality and disciplined cost management, despite ongoing global macroeconomic headwinds. He said the group remains resilient, supported by a focused business strategy and disciplined execution in efforts to meet the evolving customer needs. "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," he said. Khairussaleh said Maybank's focus on completing its corporate strategy known as M25+ remains steadfast, as it continues to drive meaningful progress on its strategic thrusts — strengthening the bank's core, accelerating digital transformation and embedding sustainability. "We are particularly encouraged by the growing impact of our values-based solutions, which continue to create tangible benefits for our customers, while delivering positive social impact and environmental outcomes across the markets we serve," he added.
BusinessToday
26-05-2025
- Business
- BusinessToday
Solid Start For Maybank With Q1 Profit Rising 4% To RM2.59 Billion
Malayan Banking Bhd recorded a net profit of RM2.59 billion attributable to equity holders for the first quarter ended 31 March 2025 (Q1 FY2025), up 4% year-on-year (YoY) from RM2.49 billion in the same period last year. The Group's performance was underpinned by stronger lending activity and a sharp rebound in its insurance and takaful segment, even as other operating income took a hit from adverse market revaluation effects. Key Highlights for the quarter include: Net profit : RM2.59 billion (+4.0% YoY) : RM2.59 billion (+4.0% YoY) Net interest and Islamic banking income : RM5.29 billion (+0.8% YoY) : RM5.29 billion (+0.8% YoY) Insurance/takaful service results : RM471.4 million (+RM289.3 million YoY) : RM471.4 million (+RM289.3 million YoY) Other operating income : RM2.10 billion (-26.8% YoY) : RM2.10 billion (-26.8% YoY) Impairment losses on loans and debts : RM384.2 million (-17.9% YoY) : RM384.2 million (-17.9% YoY) Overhead expenses : RM3.74 billion (+2.3% YoY) : RM3.74 billion (+2.3% YoY) Maybank's net interest income and Islamic banking income edged up 0.8% to RM5.29 billion, indicating continued resilience in its core banking operations amid evolving market dynamics. The standout performer was the Group's insurance and takaful business, which saw its service result jump by RM289.3 million to RM471.4 million. This was a significant contributor to the Group's overall earnings growth in the quarter. The Group's other operating income, however, declined sharply by RM768.5 million or 26.8% to RM2.10 billion. This was primarily due to unrealised mark-to-market losses on financial investments and liabilities measured at fair value through profit or loss (FVTPL). In contrast to gains in Q1 FY2024, the Group recorded a RM765.6 million loss on investment revaluation and a RM374.6 million loss on financial liabilities. These losses were partially offset by a turnaround in derivatives, with unrealised gains of RM816.0 million, and a higher foreign exchange gain of RM498.9 million for the quarter.C The Group's solid start sets a positive tone for FY2025 as it continues to strengthen its leadership position in Malaysia and the region. Related
The Star
26-05-2025
- Business
- The Star
Maybank posts higher 1Q net profit of RM2.59bil
KUALA LUMPUR: Malayan Banking Bhd (Maybank) reported a net profit of RM2.59bil in the first quarter of 2025 (1QFY25), an improvement from RM2.49bil in the year-ago quarter, on the back of increases in net fund-based income and non-interest income. During the quarter under review, the group said revenue fell to RM16.87mil from RM18.35mil in the year-ago quarter. MORE TO COME
The Sun
25-05-2025
- Business
- The Sun
PM Anwar: Malaysian banks' presence in Laos reflects strong investor confidence
KUALA LUMPUR: The presence of four major Malaysian banks in the Lao People's Democratic Republic (Lao PDR) reflects strong investor confidence in the country's political stability and attractive policies, particularly the way the central bank manages its financial institutions, said Prime Minister Datuk Seri Anwar Ibrahim. Speaking at a joint press conference following a meeting with Lao Prime Minister, Sonexay Siphandone, who is on an official working visit to Malaysia, Anwar said the four banks are Malayan Banking Bhd, RHB Bank Bhd, CIMB Group and Public Bank Bhd. He said the banks' presence would certainly attract Malaysian companies' interest in investing in Laos, Cambodia and Thailand. Meanwhile, Anwar said Malaysia and Laos also discussed cooperation in training across various sectors, including port management. He said that Penang Port, along with Port Klang and the Port of Tanjung Pelepas (PTP), would be ready to support more effective collaboration in training and the sharing of expertise. Both leaders also discussed issues such as labour, digital, artificial intelligence, semiconductors, and alternative energy, including rare earths. Additionally, both governments welcomed progress on the Memorandum of Collaboration between Keretapi Tanah Melayu Bhd, Lao National Railway State Enterprise, and State Railway of Thailand on the ASEAN Express train, which is expected to significantly reduce travel time across ASEAN countries and into China, he said. Anwar said both he and Sonexay will attend the upcoming ASEAN meetings, followed by engagements with Gulf Cooperation Council (GCC) representatives and a bilateral session with Chinese Premier Li Qiang.
