Declares higher first interim full cash dividend of 30 sen per share

Maybank posted a commendable performance for 1H FY25, recording a 4.0% Y-o-Y rise in net profit to RM5.22 billion. Profit before tax (PBT) also increased 3.2% to RM7.11 billion, despite challenging market conditions. This was contributed by an uplift in non-interest income (NoII), driven by improved investment and trading income, and moderation in net impairment provisions.

The Group’s net operating income for the period grew 3.2% to RM15.40 billion, attributed mainly to a robust 7.0% Y-o-Y increase in NoII to RM5.51 billion. Net fund based income saw a modest lift, reaching RM9.89 billion from RM9.77 billion last year. Net interest margin (NIM) meanwhile, edged down by 2 bps Y-o-Y reflecting the softer rate environment especially in Singapore.

Overhead cost was slightly up to RM7.53 billion compared with RM7.25 billion a year earlier, mainly from inflation driven adjustments in personnel expenses, as well as increases in marketing cost and software maintenance. Notwithstanding that, Maybank delivered a 2.6% rise in pre-provisioning operating profit (PPOP) to RM7.87 billion.

Net impairment provisions improved by 2.5% to RM901.0 million on lower loan provisions by 4.9% to RM807.6 million mainly from recoveries. As a result, net credit charge off rate eased to 24 bps from 27 bps in the previous year. Gross impaired loans ratio closed at 1.30% from 1.29%, while loan loss coverage remained healthy at 117.9%. Overall, the Group’s asset quality remained healthy, supported by sound underwriting practices, effective recovery strategies and a diversified portfolio across key regional markets.

Shareholder returns

ROE improved to 11.5% from 11.0% in 1H FY24 underscoring the Group’s strong fundamentals and ability to deliver improved returns sustainably. The Board of Directors have declared a first interim full cash dividend of 30 sen per share which translates into a dividend payout ratio of 69.5% equivalent to RM3.62 billion.

2Q FY25 vs 2Q FY24

For the second quarter of 2025, net profit rose by 3.9% Y-o-Y to RM2.63 billion compared with the same period last year, while PBT for the quarter was up 2.0%. Net operating income expanded 4.6% to RM7.68 billion led by a strong increase in NoII by 14.0% to RM2.75 billion. Net fund based income was relatively flat at RM4.93 billion.

Loans & Deposits

Malaysia loans grew 6.8% Y-o-Y while Singapore was up 4.3% Y-o-Y. However, this was moderated by a decrease of 0.4% Y-o-Y in Indonesia due to corporate portfolio rebalancing. Group loans growth tapered to 1.3% Y-o-Y across the home markets in 1H FY25, reflecting the expected moderation amid global headwinds and tighter financial conditions.

The Group’s deposits meanwhile expanded 6.1% led by Singapore, registering a robust increase of 21.5%, followed by the Malaysian market of 4.9%. This was driven by strong CASA balances of RM283.3 billion, up 5.1% from the previous year, underscoring the bank’s ability to capture stable, low-cost funding while reinforcing customer confidence in its franchise. LDR has strengthened to 90.2% from 94.5% a year ago with deposits growth of 6.1% outpacing loan growth of 1.3%.

Capital & Liquidity Strength

For 1H FY25, Maybank maintained robust capital and liquidity positions with its CET1 capital ratio at 14.68%, while total capital ratio stood at 17.93%. The Group’s liquidity coverage ratio remained stable at 138.1%, comfortably above the regulatory requirement of 100%.

Sustainability updates

Maybank exceeded its 2025 cumulative target for sustainable finance, improving lives across ASEAN, recording a cumulative amount of RM139.62 billion (cuml. target: RM80 billion) and touching 2.50 million lives (cuml. target: RM2.0 million) respectively by 1H FY25. The Group also achieved a 54.6% reduction in emissions against its 2025 target reduction of 57.5%. Maybank employees meanwhile recorded 355,562 sustainability hours for its Living Sustainability programme in 1H FY25.

Maybank’s ESG Risk Rating by Sustainalytics improved from ‘medium’ to ‘low’ reflecting effective risk management and enhanced ESG governance. Several notable accolades earned the Group’s recognition at the 2025 Euromoney Awards as Asia’s Best Bank for Transition Strategy and Malaysia’s Best Bank for Sustainable Finance.

Maybank continues to make steady progress towards its net zero ambition, with improvements recorded in key sectors as at first quarter of 2025. In the palm oil sector, Physical Emission Intensity (PEI) improved to 1.20 tCO₂/tCPO, outperforming the first half of 2023 of 1.47 and ahead of the 2030 target of 1.40. The power sector also showed positive momentum, with PEI declining to 390 kgCO₂/MWh compared to 442 in 1H FY23, keeping the Group on track to achieve the 2030 target of 272. Meanwhile, the aluminium sector registered a higher PEI of 3.78 tCO₂/tAl versus 2.36 in FY23, largely due to revisions in emission proxies. In the steel sector, PEI remained within acceptable levels at 0.80 tCO₂/tSteel, well under the 2030 limit of 0.97. Overall, these results underscore Maybank’s commitment to driving sustainable practices across its portfolio while remaining aligned with its net zero glide path.

M25+ progress

Super growth areas in M25+ continued despite challenging markets. As a result of improved user experience and easy access, Wealth Management saw a Y-o-Y increase in total wealth fees by 12.9% to RM623.93 million, and Islamic Wealth AUM by 17.2% to RM98.65 billion.

FX Sales income was up by 4.2% and loan growth in non-retail segments rose 8.4% (MY), 12.5% (ID) and 8.2% (SG). Loan growth in the mid-market segment in MY & SG Loans recorded RM33.05 billion (2.5% increase), and Transaction Banking CASA went up by 6.5%.

Our focused digital penetration is showing results, evidenced by the growth in Global Markets fee income in MY mid-cap segment by 15.3% to RM17.29 million. In addition, under Global Access, new fee income of RM1.39 million was generated from debit cards and retail FX transactions.

Motor insurance achieved a 100% increase in its surplus to RM72.6 million thanks to traction gained by AI-enabled enhancements. As a transition is expected in the coming months, the steady growth recorded is a testament to the transformation in the ways of working that Maybank has driven under its M25+ Strategy. The moderation seen under Bancassurance reflects a strategic shift to strengthen basic premiums for margins and persistencies, alongside softer topline growth influenced by market sentiment. Basic premiums recorded a 20.9% Y-o-Y rise which contributed an improvement of 3.3 p.p in New Business profit rate.

Comments from Maybank Chairman and President & Group CEO

Maybank Chairman, Tan Sri Dato’ Sri Ir. Zamzamzairani Mohd Isa said “Maybank continues to stand on a foundation of strength and resilience on the backdrop of soft markets. Our disciplined approach and diversified business model safeguards the Group’s long term stability providing sustainable returns and delivering value for our shareholders. Guided by our purpose of Humanising Financial Services and a clear strategic direction, we remain committed to navigating challenges whilst capturing opportunities for growth. We continue to make meaningful and impactful outcomes in the communities we serve through social impact initiatives that promote financial inclusion, empower livelihoods and foster sustainable development.”

Meanwhile, President & Group CEO, Dato’ Sri Khairussaleh Ramli said, “Our first half results reflect a resilient performance despite a challenging backdrop, registering a sustained growth in profitability. As ASEAN’s economies continue to demonstrate resilience and growth, we provided support by deepening integration and regional collaboration to scale our presence in meeting the needs of our customers. Leveraging our diverse footprint, we continue to expand digital solutions, enabling seamless cross border services and support MSMEs and wealth clients across borders. As we near the end of the M25+ strategy, our focus remains on delivering differentiated customer experiences, growing responsibly and realising our aspiration to become ASEAN’s leading purpose-driven bank.”

Sectoral Review

Group Community Financial Services (GCFS) reported a PBT of RM2.36 billion for 1H FY25, declining by 12.4% Y-o-Y due to higher overheads and loan loss provisions, reflecting continued investments in strategic initiatives and prudent provisioning. Net operating income inched up by 0.1% Y-o-Y to RM8.45 billion supported by a 3.2% Y-o-Y increase in NoII contributed largely from wealth fees, though partially offset by a 0.9% Y-o-Y decline in net fund based income. Notwithstanding this, total loans expanded across all home markets of Malaysia, Singapore and Indonesia by 7.4%, 7.9% and 9.4% Y-o-Y respectively. Wealth Management, a key focus segment for the Group, maintained its upward trajectory with total financial assets rising 13.2% to RM557.91 billion on investments of 10.8% and loans of 14.8% Y-o-Y. 

Group Global Banking (GGB) achieved a 20.8% Y-o-Y increase in PBT to RM4.09 billion for the period ended June 2025, driven by strong income growth, lower net impairment losses. Net operating income rose 11.2% Y-o-Y to RM6.18 billion, supported by growth in both net fund-based income which was up 7.6% to RM3.04 billion and a 15% increase in non-interest income to RM3.14 billion, led by stronger performances from Global Markets and Investment Banking. Net impairment provisions improved by 73.1% Y-o-Y, reflecting continued discipline in asset quality management.

Corporate loans in Malaysia grew 5.8% Y-o-Y, while customer deposits increased 3.1%, underpinned by a 6.5% rise in CASA and a notable 109.8% surge in Singapore. The Mid-Cap segment in Malaysia and Singapore recorded income growth of 15.3% and loans growth of 2.5% Y-o-Y, while Global Markets FX Sales income advanced 4.2% Y-o-Y, reinforcing overall earnings momentum.

The Group’s Islamic Banking business demonstrated a strong growth in PBT by 24.0% Y-o-Y to RM2.30 billion in 1H FY25. This was on the back of stable increase in total income by 4.0% to RM4.44 billion. Within the business, Maybank Islamic’s total gross financing for Malaysia grew 10.0% Y-o-Y to RM306.77 billion, contributed by steady growth in its CFS and GB business by 10.1% and 9.8%, respectively. As at 30 June 2025, Islamic financing accounted 71.5% of Maybank Malaysia’s total loans and financing. Maybank Islamic remained the market share leader of Islamic assets in Malaysia at 30.3%. Assets under management for Group Islamic Wealth Management increased 17.2% Y-o-Y to RM98.65 billion in 1H FY25.

Etiqa Insurance & Takaful registered an underwriting income of RM638.75 million, 24.0% higher as compared to the previous year mainly arising from higher experience adjustments and contingency surplus release from the Family Takaful portfolio. PBT however declined to RM565.79 million for the first half of FY25 compared to the RM829.74 million in the previous year primarily due to softer equity market conditions in 2025 and higher release in reserves from actuarial modelling refinement and IFRS 17 adjustments in the previous year.

Key Home Markets

Maybank Singapore recorded a rise in net fund based income of 17.9% to S$382.19 million Y-o-Y attributed by growth in its balance sheet and proactive management of funding cost. NoII, meanwhile dipped slightly at 2.4% to $286.81 million as treasury income fell due to lower FX related income. This was mitigated by stronger wealth income from bancassurance commission and investment income and higher non-operating income contributed by gain from government bond sales as well as improved loans related fee. PBT was lower by 5.8% to S$363.82 million for 1H FY25, impacted by higher overheads and lower write-back in impairment allowance offsetting the growth in fund based income.

Maybank Indonesia recorded a robust increase in PATAMI surging 348.1% to Rp576 billion, driven by higher operating income and lower loan loss provision. PBT also grew strongly by 170.4% to Rp766 billion for 1H FY25 compared to a year earlier. This was mainly supported by a significant rise in NoII which was up 19.0% to Rp975 billion, lifted by Global Market transaction fees which more than tripled to Rp178 billion.