Maybank’s Net Profit Increase 4% in Q1-2025

Underpinned by stable net interest margins and better asset quality as well as disciplined cost management, Malayan Banking Bhd (Maybank) on Monday delivered another quarter of earnings growth in the first three months of 2025, Bank President and Group CEO Datuk Khairussaleh Ramli said.

Maybank’s first-quarter net profit rose 4%, roughly in line with market expectations, mainly supported by a stronger insurance service performance and lower impairment losses.

The net fund-based income rose 2.3% to $1.18 billion on loans growth of 3.2% y-o-y loans growth across all home markets and key segments. The stable non-interest income (NoII), which contributed 35.8% of total income, was $660 million, supported by improved wealth management fees.

The global economic outlook remains uncertain. Nevertheless, Maybank expects continued growth in the markets that it operates.  Key to the Maybank is to support its clients especially those in need during this challenging period, Ramli said.

“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.

According to him, the global growth in 2025 is expected to moderate slightly to 2.9% on softer outlook for major economies, while ASEAN’s gross domestic product (GDP) growth is set to remain resilient at 4.7%, compared with 5% in 2024, benefitting from easing domestic monetary conditions, increasing foreign direct investment inflows and a rebound in consumer spending in the second half of the year.

Malaysia is projected to experience GDP growth of 4.9% in 2025, anchored on projects outlined under the Madani Economy framework.

Banking Sector Prospects

“I am upbeat about the prospects for the banking industry, especially with Budget 2025 focused on driving positive economic progress along with transformative reforms for the continued prosperity of the people. With clearly outlined roadmaps, these initiatives will attract significant foreign direct investment which, in turn, will strengthen Malaysia’s standing as a high-performing nation,” he added.

The group reported revenue of $4.01 million, declining from $4.36 million in the year-ago quarter.

However, the group noted that 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.

The group’s net interest margin stood at 2.04% and group loans in Q1 saw y-o-y increases of 8%, 5.9% and 0.8% across its home markets of Malaysia, Singapore and Indonesia. The group’s deposits meanwhile, expanded 5.1% y-o-y, led by growth across its Singapore and Malaysia markets.

Maybank will deepen customer penetration by focusing on key segments, cross-selling initiatives, and regional ecosystem partnerships. It targets growth in wealth management, mid-cap, non-retail, and bancassurance segments, while leveraging global market flows.

The bank aims to maintain strong liquidity and asset quality, although trade uncertainties may weigh on growth and investor sentiment. It is targeting a return on equity of over 11.3% for 2025, barring any unforeseen circumstances.