| 1Q FY25 at a glance |
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Maybank reported a resilient performance for the financial period ended 31 March 2025 (1Q FY25) despite uncertain and volatile economic conditions, with net profit rising 4.0% Y-o-Y to RM2.59 billion. This was underpinned by a 1.8% growth in net operating income to RM7.71 billion. Profit before tax (PBT), meanwhile, rose by 4.4% to RM3.59 billion compared with a year earlier.
The Group sustained a stable net interest margin at 2.04%, supported by improved net fund-based income which increased 2.3% to RM4.95 billion. This was on the back of a 3.2% Y-o-Y loans growth across all home markets and key segments. Notwithstanding this, annualised loans growth was comparatively lower at 2.2%, reflective of the current operating environment which continued to be impacted by cautious business sentiment and moderated credit demands. Non-interest income (NOII) contributing 35.8% of total income, stood at RM2.76 billion, supported by improved wealth management performance.
Overhead costs expanded slightly amid inflationary pressures to RM3.74 billion from RM3.66 billion on higher personnel expenses, marketing costs and software maintenance expenses.
Pre-provisioning operating profit stood at RM3.97 billion, a 1.3% increase from corresponding quarter last year. Annualised return on equity meanwhile increased to 11.3%, improving from 11.1% in FY24.
Net impairment provisions improved 21.7% to RM426.4 million on lower loan provisions by 17.9% to RM0.38 billion. As a result, the net credit charge-off rate eased to 23 basis points from 28 bps in the previous quarter. Gross impaired loans ratio improved by 5 bps to 1.27% compared to the same quarter of 2024, while loan loss coverage remained strong at 122.9%. Overall, the Group’s asset quality remained healthy, supported by sound underwriting practices, effective recovery strategies and a diversified portfolio across key regional markets.
Loans & Deposits
Group loans as at 1Q FY25 was lifted by increases in all home markets of Malaysia, Singapore and Indonesia by 8.0%, 5.9% and 0.8% Y-o-Y respectively. On an annualised basis, Malaysia and Singapore grew at 6.0% and 3.3% while Indonesia saw a decline of 17.2% especially from Global Banking, arising from the portfolio rebalancing initiative. The Group’s deposit meanwhile, expanded Y-o-Y by 5.1% lead by growth across its Singapore 17.9% and Malaysia 4.4% market. However, on an annualised basis, Malaysia posted a growth of 3.4% while Singapore and Indonesia recorded contractions of 0.2% and 24.8% respectively. The deposit reduction in Indonesia is in tandem with the move in portfolio rebalancing and releasing of high cost deposits.
Capital & Liquidity Strength
Maybank maintained robust capital and liquidity positions in the first quarter, with its CET1 capital ratio at 14.88% and total capital ratio at 17.96%. The Group’s liquidity coverage ratio remained stable at 135.7%, well above the regulatory requirement of 100%.
President & Group CEO, Dato’ Khairussaleh Ramli said that Maybank continued to deliver commendable earnings growth for the first quarter, underpinned by stable net interest margins and better asset quality as well as disciplined cost management, despite ongoing global macroeconomic headwinds. The Group remains resilient, supported by a focused business strategy and disciplined execution in efforts to meet the evolving needs of its customers.
“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.
Our focus on completing M25+ 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.”
Sustainability updates
As of the first quarter of 2025, Maybank continued to make strong progress in its sustainability commitments, surpassing key interim targets across all focus areas. The Group achieved RM10.29 billion in sustainable finance for 1Q FY25, contributing to a cumulative total of RM125.46 billion—exceeding its RM80 billion target by 2025. In terms of social impact, Maybank has reached 2.12 million beneficiaries across ASEAN, exceeding its FY25 target of 2 million lives improved, primarily through inclusive community programmes.
Additionally, Maybank recorded a 53.6% reduction in its scope 1 & 2 carbon emissions as of 1Q FY25, moving steadily toward its FY25 reduction target of 57.5%, with long-term goals of carbon neutrality by 2030 and net zero by 2050. The quarterly performance for the four sectors—Power, Palm Oil, Steel, and Aluminium — announced in 2024 remains within target as of 1Q FY25, in alignment with the 2030 commitment. Meanwhile, for the two additional sectors introduced in February 2025—Commercial Real Estate and Automotive — quarterly performance data will be available from 2Q FY25 onward, contributing to the overall progress towards the 2030 goal. The Group also contributed 77,608 sustainability hours in 1Q, progressing toward the 1 million-hour target aligned with significant UN SDG outcomes.
M25+ progress
Maybank’s relentless focus on deepening customer segment centric solutions and digital transformation positively impacted growth across most Super Growth areas. Unique regional value propositions and enhanced digital capabilities saw total wealth management fees increase by 28% to RM312.7 million, while beyond banking solutions impacted SME financing positively with non-retail loans growing 8.4%, 17.5% and 5.3% across Malaysia, Indonesia and Singapore respectively.
Continued investment in digital empowerment sparked a RM34.21 billion increase in Malaysia & Singapore loans within the mid-market segment, while transaction banking CASA and client growth on M2E MY recorded an increase of 4.8% and 12% respectively. Platform enhancements impacted FX by a 7.1% increase in sales, and motor insurance gross premiums by 2.4% to RM591.16 million.
Sectoral Review
Group Community Financial Services (GCFS) registered a 5.5% Y-o-Y increase in PBT for the first quarter of 2025 reaching RM1.48 billion on the back of a 1.9% Y-o-Y growth in net operating income to RM4.50 billion. This was contributed by a steady growth in both its NOII and net fund-based income by 6.5% and 0.4% respectively, as compared with a year earlier. Total loans expanded at all home markets of Malaysia, Singapore and Indonesia by 8.5%, 11.7% and 10.9% Y-o-Y respectively. Wealth Management, a key focus segment for the Group, maintained its upward trajectory with total financial assets rising 13.3% from a year earlier, reaching RM545.5 billion contributed by growth in investments of 11.5% and loans of 17.5% Y-o-Y.
Group Global Banking (GGB) recorded a 9.8% Y-o-Y increase in PBT for the period ended March 2025, reaching RM1.76 billion. The growth was supported by higher income and lower net impairment losses. Net operating income rose 5.2% Y-o-Y to RM2.80 billion, driven by a 3.1% increase in net fund-based income to RM1.33 billion, and a 7.1% rise in NOII to RM1.46 billion, mainly attributed to stronger performance in Global Markets. Net impairment losses declined by 47.4% Y-o-Y, reflecting the Group’s continued focus on asset quality management.
Corporate loans continued to expand across GGB’s core markets, registering Y-o-Y growth of 6.3% in Malaysia and 0.4% in Singapore. On the funding side, customer deposits increased by 1.4% Y-o-Y, supported by a solid 4.8% growth in CASA, with Singapore delivering a 64.5% increase. The Mid-Cap segment in Malaysia and Singapore, a strategic focus for the Group, delivered a strong performance with income and loan growth of 15% and 10%, respectively. In addition, Global Markets FX Sales income rose 7.1% Y-o-Y, contributing further to overall earnings momentum.
The Group’s Islamic Banking business demonstrated a strong growth in PBT by 38.8% Y-o-Y to RM1.14 billion in 1Q FY25. This was on the back of a stable increase in total income by 1.3% to RM2.13 billion. Within the business, Maybank Islamic’s total gross financing for Malaysia grew 10.1% Y-o-Y to RM300.6 billion, contributed by steady growth in its CFS business by 11.6% and GB business by 4.8%. As at 31 March 2025, Islamic financing accounted 70.7% of Maybank Malaysia’s total loans and financing. Maybank Islamic remained the market share leader of Islamic assets in Malaysia at 30.7%. Assets under management for Group Islamic Wealth Management increased 16.5% Y-o-Y to RM 95.22 billion in 1Q FY25.
Etiqa Insurance & Takaful registered an underwriting income at RM354.31 million, up almost three fold as compared to the previous year on contingency surplus release for the Family Takaful portfolio and better claims experience for the General/General Takaful portfolio. PBT however declined to RM266.5 million for the first quarter of FY25, compared to the RM364.90 million in last year due primarily to mark-to-market losses in equity investments in line with market trends seen in the local stock exchange.
Maybank Indonesia recorded a robust increase in PBT which grew 290.9% to Rp506 billion for the first quarter of FY25 compared to a year earlier. This was mainly supported by a significant rise in NOII which was up 54.3% to Rp571 billion and an improvement in provisions. PATAMI meanwhile also increased 265.1% Y-o-Y to Rp376 billion.
Maybank Singapore recorded a rise in net fund-based income of 20.1% to S$193.07 million Y-o-Y from lower funding cost and write-back in term loans effective interest rate adjustment. NOII, meanwhile dropped slightly at 1.6% to S$143.51 million due to lower treasury income. PBT was lower by 10.5% to S$179.39 million for 1Q FY25, impacted by higher overheads and lower impairment allowance write-back offsetting the stronger fund based income.