Maybank Net Profit Rises on Higher Fund-Based Income, Noninterest Income

By Ying Xian Wong

Malayan Banking's quarterly net profit rose 3.3%, supported by stronger net fund-based income and noninterest income.

Malaysia's largest lender by market capitalization said Friday that third-quarter net profit climbed to 2.62 billion ringgit, equivalent to $630.3 million. That was lower than the 2.66 billion ringgit estimated by analysts in a Visible Alpha poll.

Quarterly net interest income was 3.27 billion ringgit, up from 3.11 billion ringgit a year earlier, while net operating income increased 3.2% to 7.46 billion ringgit, driven by a 2.5% rise in net fund-based income and a 4.8% increase in noninterest income, it said.

The bank said it will continue its transformation plans, prioritizing growth in its wealth- management, midmarket cap, nonretail and bancassurance segments while tapping global market-flow opportunities.

Maybank said it aims to maintain sound liquidity, strong asset quality and solid capital to support disciplined asset growth, though it warned that global trade uncertainty could weigh on performance. The lender maintained its return-on-equity target of at least 11.3% for the year.

Shares in the bank have been flat quarter to date, after hitting more than one-year lows in April and again in late July. Improved market sentiment and steady foreign inflows have helped the stock remain relatively stable since September, following earlier weakness linked to tariff-related uncertainty and cautious views on Malaysia's economic outlook.

Malaysia's stronger-than-expected economic growth of 5.2% in the third quarter has supported loan demand, and momentum could continue into the seasonally stronger fourth quarter, Kenanga Investment Bank analyst Clement Chua wrote in a report ahead of earnings.

Looking to 2026, the banking system is expected remain resilient despite potential headwinds as the full impact of U.S. tariffs ripples through the economy, and a stronger ringgit could temper export-oriented sector earnings, he said. Chua expects Malaysia's economic growth to moderate to 4.2% next year, with loan growth stable at 5.0%-5.5%.

Maybank remained Kenanga's preferred pick in the Malaysian banking sector, which it rates as overweight. It highlighted the lender's solid domestic loan growth, better-than-industry asset quality and roughly 6% dividend yield despite weaker regional operations.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

November 21, 2025 01:01 ET (06:01 GMT)