Maybank FY25 Net Profit up 4.2% to RM10.51b ROE improved to 11.7%

Maybank today announced an increase in net profit to RM10.51 billion, up 4.2% Y-o-Y for the financial year ended 31 December 2025 (FY25). This was underpinned by steady income growth, disciplined cost management and resilient asset quality.

L-R: Dato' John Chong Eng Chuan, CEO, Global Banking, Maybank; Shafiq Abdul Jabbar, Group Chief Financial Officer, Maybank; Tan Sri Dato' Sri Ir. Zamzamzairani Mohd Isa, Chairman of Maybank and Syed Ahmad Taufik Albar, Group CEO, Community Financial Services, Maybank at the Maybank Group FY25 financial results announcement.

Profit before tax (PBT), meanwhile rose 4.6% Y-o-Y to RM14.33 billion, reflecting stronger operating performance and lower credit costs during the year. Net operating income grew 2.7% Y-o-Y to RM30.38 billion, driven by an increase in net fund-based income to RM20.23 billion and non-interest income (NoII) to RM10.15 billion, up 2.7% Y-o-Y respectively. Net interest margin (NIM) remained stable at 2.05% despite rate cuts seen across markets, while improved asset quality, disciplined cost management, and optimised capital management lifted return on equity (ROE) to 11.7% from 11.1% in FY24.

Managing costs remains a priority, with cost-to-income ratio marginally improving to 48.8% despite a 2.6% Y-o-Y rise in overhead expenses. This was largely attributable to inflationary adjustments in personnel costs alongside increases in credit card related fees, IT expenses and marketing costs. Notwithstanding this, pre-provisioning operating profit (PPOP) was up 2.8% to RM15.54 billion.

Asset quality continued to improve during the year, supported by credit restructuring and portfolio recoveries during the year. Net impairment provisions decreased 10.1% Y-o-Y to RM1.48 billion, reflecting improved portfolio performance across key markets. As a result, net credit charge off rate improved to 8 bps from 26 bps a year earlier on the back of lower loan provisions. Gross impaired loans ratio stood at 1.28%, while loan loss coverage remained healthy at 106.7%, underscoring the Group's focus on disciplined underwriting standards.

4Q (Y-o-Y performance)

For the 4Q FY25, the Group's net profit rose 5.7% Y-o-Y to RM2.68 billion, while PBT increased 9.0% to RM3.72 billion. The stronger performance was supported by higher net fund-based income and lower net impairment provisions, reflecting continued portfolio resilience and improved credit conditions compared with the corresponding quarter last year.

4Q (Q-o-Q performance)

On the Group's quarter-on-quarter performance, net profit grew 2.1% from 3Q FY25, with PBT rising 6.1%. The improvement was driven by higher net fund-based income and sustaining earnings momentum into the year-end.

Loans & Deposits

Group loans expanded 1.7% Y-o-Y, supported by growth across its home markets, led by Malaysia increasing 6.1% and Singapore rising 5.0%. In Malaysia, expansion was driven by both its GCFS and GGB businesses growing by 6.7% and 4.8% respectively, reflecting resilient domestic demand and continued business activity across key sectors. CASA balances rose 9.4% Y-o-Y as the Group actively pursued balance sheet optimisation. This resulted in a higher CASA ratio of 40.5% and continued balance sheet strength.

Capital

Liquidity Coverage Ratio (LCR) stood at 138.2%, while Net Stable Funding Ratio (NSFR) remained comfortably above regulatory requirements at 116.6%. Group CET1 and Total Capital Ratios were strong at 15.13% and 19.05% respectively.

Dividend payout

In line with its commitment to deliver sustainable shareholder returns, the Board declared a full cash second interim dividend of 33 sen per share, bringing total dividends for FY25 to 63 sen per share. This translates into a dividend payout ratio of 72.4% and a dividend yield of 6.0%.

Maybank Chairman, Tan Sri Dato' Sri Ir. Zamzamzairani Mohd Isa said that Maybank's full year performance demonstrates the resilience of its diversified franchise and the strength of its balance sheet. The Group has delivered improved profitability and returns while maintaining strong capital and liquidity buffers, underpinned by prudent risk management and disciplined execution. In fulfilling its role in nation-building, the Group remains committed to raising the floor by broadening access to financial services and supporting communities through inclusive and sustainable growth, while continuing to Humanise Financial Services by placing customers' needs at the centre of its efforts.

"While global uncertainties persist, domestic demand across our home markets continue to provide underlying support. The Board remains focused on ensuring that Maybank is well-positioned to navigate evolving conditions with sound governance, financial resilience and sustainable growth at its core, raising the ceiling by enabling businesses and economies to unlock new opportunities for growth and innovation. All this, while continuing to deliver consistent dividends that reflect our stakeholders' confidence in the Group's earnings durability and capital strength."

Meanwhile Group Chief Financial Officer, Shafiq Abdul Jabbar said, "2025 marks the successful conclusion of our M25+ strategy, through which we strengthened our regional franchise, accelerated digital transformation and enhanced our customer-centric capabilities. We grew core fee income, strengthened our deposit franchise to support sustainable funding, improved asset quality and reinforced our capital strength, while deepening our leadership positions across ASEAN.

Building on this foundation, we have launched ROAR 30, our next strategic roadmap anchored on Humanising Financial Services that will double down on values-based offerings. ROAR 30 sets clear financial ambitions, including an ROE target of 13%-14% and a cost-to-income ratio of not more than 47% by 2030, while being laser focused on improving customer experience, providing positive societal impact and powering the real economy.

Supported by improving economic conditions in our home markets, we remain cautiously optimistic and will continue to pursue disciplined growth, optimise capital allocation and invest in technology and talent to deliver sustainable performance and long-term value for all stakeholders. We will also focus on building businesses of scale, leveraging our regional presence and enhancing our network strength to capture opportunities in new markets."

Sustainability updates

Maybank closed 2025 with strong sustainability performance, surpassing all four of its key sustainability commitments and reinforcing its leadership in responsible banking across ASEAN. The Group mobilised RM176.12 billion in sustainable finance, significantly exceeding its RM80 billion target, while achieving a 57.8% reduction in carbon emissions - ahead of its 2025 goal and is firmly on track towards its 2030 neutrality and 2050 net zero ambitions. Its community impact also continued to deepen, improving the lives of 2.92 million households across ASEAN, surpassing the 2 million target, alongside contributing 2 million hours of employee volunteerism, well above the 1 million hours milestone.

The Group's leadership was further affirmed through both global and local accolades. It maintained the highest MSCI ESG rating of AAA, was recognised at the Global Finance Awards as the World's Best Bank for Sustainability Transparency, and Best Bank for Transition/Sustainability-Linked Loans & Bonds in Asia-Pacific, in addition to being named the Best Bank for Sustainable Finance in Malaysia. Maybank also played a pivotal role in shaping Malaysia's sustainable finance ecosystem by chairing the development of the JC3 Sustainable and Transition Finance Guidance (STFG), a first-of-its-kind industry wide guidance, and its foundation was honoured as the Most Outstanding Conglomerate for contributions to community development. Progress towards net zero remains on track, with measurable improvements in 2025 Physical Emission Intensity (PEI) across six priority sectors. These metrics underscore disciplined portfolio steering and active client engagement to support decarbonisation pathways across high-impact sectors.

Physical Emission Intensity (PEI)

• Palm Oil: PEI of 1.31 tCO₂/tCPO, compared to the 1.47 baseline
• Aluminium: PEI increased slightly to 3.40 tCO₂/tAl against 2.36 baseline
• Commercial Real Estate: PEI improved to 73.3 kgCO₂/m², compared with 80.5 baseline
• Power: PEI reduced to 376 kgCO₂/MWh, well ahead the 442 baseline
• Steel: PEI improved slightly to 0.75 tCO₂/tSteel, compared to 0.80 baseline
• Automotive: PEI decreased to 141 gCO₂/vkm, well ahead of 150 baseline

Conclusion of M25+

M25+ continued to drive strong performance in FY25, delivering broad-based growth across priority segments and reinforcing franchise leadership at Maybank. Wealth Management remained a key growth engine, with total wealth fees rising 27.9% Y-o-Y to RM1.50 billion and Islamic Wealth Investment AUM expanding 26.7% to RM18.22 billion. Wealth and SME income and volumes from Global Market FX Sales grew 3.3% to RM359.12 million and 10.9% to RM59.0 billion, respectively. The Group also sustained its global Islamic leadership and strengthened regional connectivity through enhanced client propositions.

The non-retail segment recorded solid momentum supported by focused relationship management, ecosystem-led offerings and regional Islamic expansion. This was led by a strong increase in Singapore by 17.7%, followed by Malaysia and Indonesia by 9.2% and 5.6% respectively.

Transaction banking and cash management remained resilient, with CASA expanding 12.9% supported by platform modernisation and integrated cash, trade and FX capabilities. Motor Insurance delivered improved profitability, with gross premiums rising 4.1% to RM2.41 billion and motor surplus surging 92.1% to RM157.46 million. Bancassurance contractual service margin strengthened to 23.3%.

Digitally acquired retail deposit balances meanwhile recorded a growth of more than 100% Y-o-Y to RM17.61 billion, with CASA expanding over 71.4% reflecting continued success in deepening customer engagement and strengthening the Group's funding franchise.

Sectoral Review

Group Community Financial Services (GCFS) reported net operating income of RM17.01 billion for FY25, broadly stable compared with RM17.10 billion in the previous year. A 2.7% Y-o-Y decline in net fund-based income was offset by a 6.2% Y-o-Y increase in NoII. Total loans expanded across all home markets of Singapore, Malaysia and Indonesia by 9.4%, 6.7% and 5.4% respectively Y-o-Y. PBT however declined by 7.3% to RM5.28 billion, mainly due to higher personnel and IT costs to strengthen digital capabilities, alongside other business expenses to support long-term growth.

Wealth Management, a key focus segment for GCFS, maintained its upward trajectory with total financial assets increasing 4.9% Y-o-Y to RM562.29 billion largely driven from investments and loan growth.

Group Global Banking (GGB) delivered a strong performance for FY25, recording a 13.0% Y-o-Y increase in its PBT to RM7.93 billion. The improvement was underpinned by robust income growth, lower net impairment losses, and a RM416.44 million contribution from the Investment Banking Group, supported by strong performances in Equity & Commodity Derivatives as well as Investment Banking & Advisory. Net operating income rose 7.7% Y-o-Y to RM12.01 billion, driven by both net fund-based income and NoII. Net fund-based income was up 11.9% to RM6.29 billion, while NoII grew 3.4% to RM5.71 billion, led by stronger contributions from Global Markets and Investment Banking.

Net impairment provisions improved by two-fold Y-o-Y, following the completion of a major corporate borrower's restructuring exercise.

Loans in Malaysia expanded by 4.8% Y-o-Y, while GGB CASA grew a solid 15.3%, supported by 7.7% growth in Malaysia and a notable 55.2% increase in Singapore. Income for the Mid-Cap segment in Malaysia and Singapore rose 5.9% Y-o-Y, while Global Markets Malaysia FX Sales volumes increased 13.0%, further reinforcing GGB's earnings momentum.

The Group's Islamic Banking business saw a strong increase in PBTZ by 11.2% Y-o-Y to RM4.65 billion in FY25. This was on the back of an increase in total income by 7.2% to RM9.10 billion. Within the business, Maybank Islamic's total gross financing for Malaysia grew 9.3% Y-o-Y to RM321.88 billion, contributed by steady growth in its GCFS business by 9.2% and GGB business by 9.3%. As of 31 December 2025, Islamic financing owned and managed by Maybank Islamic accounted for 72.4% of Maybank Malaysia's total loans and financing. Maybank Islamic continued to lead in the market share of Islamic assets in Malaysia at 30.4%. Assets under management for Group Islamic Wealth Management increased by 11.7% Y-o-Y to RM104.41 billion in FY25.

Etiqa Insurance & Takaful registered an underwriting income of RM1.29 billion, 46.2% higher as compared to the year before mainly driven by Family Takaful portfolio. PBT, however declined to RM1.32 billion for FY25 compared to RM1.52 billion in the previous year mainly due to lower net investments income impacted by softer equity market conditions. Etiqa remained at the top position in the General Insurance and Takaful (Malaysia) segment with a 16.6% market share and fourth in the Life & Family (New Business) segment with an 11.2% market share.

Maybank Singapore recorded a rise in PBT which increased 1.3% to S$711.30 million supported by stronger net fund-based income cushioning the impact of NoII slowdown, higher overheads and lower impairment allowance write-back. Net fund-based income rose by 11.8% Y-o-Y to S$773.78 million on improved net interest margin as reduced cost from lower interest rates and proactive liquidity management outpaced the decline in interest income from lower asset yields. NoII eased marginally by 0.4% Y-o-Y as treasury income fell due to lower FX gains and trading securities income, mitigated by growth in wealth income, loans and trade related fees as well as income from sale of securities.

Maybank Indonesia recorded a significant increase in PATAMI surging 48.5% Y-o-Y to Rp1.66 billion, driven by better cost management and continued reduction in loan loss provisions. PBT also grew strongly by 38.9% to Rp2.22 billion for FY25 compared to the previous year, backed by a rise in net fund-based income and NoII. Net fund-based income increased by 1.6% Y-o-Y to Rp7.22 billion, supported by disciplined pricing and a shift in funding composition towards more efficient funding, while NoII was up 8.1% to Rp2.33 billion, backed primarily by a turnaround in Global Markets income amounting to Rp441.0 billion, as well as recovery-related and wealth management income.

Maybank FY25 Net Profit up 4.2% to RM10.51b ROE improved to 11.7%