PETALING JAYA: Malayan Banking Bhd (Maybank) reported a resilient second quarter for financial year 2026 (Q2 FY26), with net profit rising 2.4% year-on-year (YoY) to RM2.69 billion. This brought the group’s first-half net profit to RM5.17 billion, while Q2 profit before tax (PBT) rose 3.7% YoY to RM3.64 billion.
Return on equity (ROE) improved to 12% from 11.6% a year earlier, supported by disciplined cost management and significantly lower net impairment provisions. Net operating income stood at RM7.51 billion.
Maybank said its underlying business remained strong despite a volatile operating environment, with net fund-based income rising 1.9% YoY and core fee income recording strong growth.
Wealth management, investment banking, and banking-related fees increased 61.5%, 58.4%, and 2.6%, respectively.
Net interest margin (NIM) expanded by 10 basis points to 2.10%, while stronger core fee income helped cushion softer market-related income.
The group’s insurance and takaful businesses also improved amid better equity market conditions.
Maybank continued to keep costs under control, with overhead expenses falling 2.5% YoY to RM3.69 billion. This lowered its cost-to-income ratio to 49.1%.
Personnel costs declined 6.9%, while marketing expenses fell 21.9%. These savings were partly offset by higher establishment costs as the group continued to invest in technology initiatives.
Net credit charge stood at eight basis points, or 20 basis points excluding the reclassification of provisions involving a significantly restructured borrower.
The lower credit charges reflected reduced provisions for corporate borrowers, partly offset by additional overlays to address emerging risks and model limitations.
These overlays stood at RM2.6 billion.
The gross impaired loan ratio was 1.35%, while loan loss coverage stood at 103.1%, or 112.1% excluding the provision reclassification.
For H1 FY26, Maybank said performance remained resilient in a dynamic operating environment, supported by a well-defended NIM of 2.12% and strong growth in core fee income.
Core fees grew 12.1%, driven by wealth management and investment banking-related fees.
Wealth management fees rose 48.4%, supported by higher investment and bancassurance income, while investment banking fees benefited from strong equity capital markets and debt capital markets performance.
Asset quality remained stable, with net impairment provisions falling 51.6% YoY. At the same time, disciplined cost management helped reduce overhead expenses by 3.9% YoY.
These factors contributed to the group’s RM5.17 billion net profit for H1 FY26. ROE stood at 11.6%, compared with 11.5% in H1 FY25.
Group loans grew 2.7% YoY to RM695.9 billion, with momentum strengthening in Q2 as loans increased 1.7% quarter-on-quarter, supported by growth across the group’s key home markets.
Loans in Malaysia grew 5.5% YoY, followed by Indonesia at 4.3% and Singapore at 3.4%.
In Malaysia, community financial services loans rose 5.3%, with consumer loans up 5.7% and SME loans 2.7% higher.
Singapore community financial services loans grew 7.4%, while growth in Indonesia was driven by large corporate and institutional and inbound net worth clients.
Global banking loans in Indonesia increased 6.1%, reflecting continued growth across Maybank’s regional franchise.
The group maintained a strong funding and liquidity position, supported by healthy current account and savings account (Casa) growth.
Group Casa grew 7.6% YoY, lifting the ratio to 41.5% from 37.8% a year earlier. Casa grew across all three home markets, with ratios of 44% in Malaysia, 34.2% in Singapore and 63.5% in Indonesia.
Liquidity remained comfortable, with the liquidity coverage ratio at 130% and the net stable funding ratio at 113.4% as at June.
In a statement, Maybank said it continued to maintain a sound capital position, with its Common Equity Tier 1 and total capital ratios at 14.92% and 18.68% respectively as at June 2026. The position was supported by continued balance sheet discipline, healthy funding and liquidity levels, and growth across the group’s core businesses.
The board declared a first interim dividend of 31 sen per share, including five sen that is electable under the Dividend Reinvestment Plan. This represents a total dividend payout of about RM3.75 billion, equivalent to 72.5% of 1H FY26 net profit. The interim dividend compares with 30 sen per share in H1 FY25.
Maybank chairman Tan Sri Zamzamzairani Mohd Isa said the group’s Q2 performance reflected sound financial foundations and a prudent approach to managing its balance sheet and risks.
“Our robust capital and liquidity positions provide a strong foundation for us to navigate changing market conditions with confidence, while maintaining the financial capacity to support our customers and businesses.
“We remain committed to prudent stewardship and responsible growth, creating enduring value for our shareholders while continuing to advance our sustainability agenda and make a positive impact in the communities we serve.”
Maybank continued to record broad-based growth across its key businesses, strengthening its regional position in Islamic finance, wealth management, transaction banking and payments, corporate and investment banking (CIB), and the SME segment.
Islamic CIB income grew 3.9% YoY to RM896.8 million, while takaful net written contributions increased 10.2% to RM1.72 billion.
Wealth fee income rose 49.6% YoY to RM925.4 million, while cross-border payments volume increased 15.8% to RM465.2 billion. CIB fee income rose 15.6% to RM1.51 billion.
Looking ahead, Maybank plans to invest RM10 billion through 2030, including RM1.5 billion in technology spending for FY26.
The investment will focus on modernising its core systems, strengthening resilience, accelerating artificial intelligence and cloud adoption, and enhancing risk and compliance capabilities, to deliver a more seamless and personalised customer experience across its businesses.
