Maybank Profit Beat Estimates on Higher Income, Lower Provisions

By Ying Xian Wong

Malayan Banking's fourth-quarter net profit climbed 5.7%, mainly driven by higher net fund-based income and lower net impairment provisions.

Malaysia's largest lender by market capitalization said Thursday that net profit rose to 2.68 billion ringgit, equivalent to $688.8 million, from 2.53 billion ringgit a year earlier. That was higher than the 2.64 billion ringgit estimated by analysts in a Visible Alpha poll.

Full-year net profit increased 4.2% to 10.51 billion ringgit, with net interest margin stable at 2.05%. Analysts were expecting an annual figure of 10.48 billion ringgit.

Quarterly net interest income rose 4.2% to 3.49 billion ringgit, the lender said.

Looking ahead, Maybank said it remains cautiously optimistic amid improving economic conditions in its home markets.

Maybank will pursue disciplined growth, optimize capital allocation, and invest in technology and talent to deliver sustainable performance and long-term value for stakeholders, Chief Financial Officer Shafiq Abdul Jabbar said in a statement.

Asset quality will remain a key focus in 2026, Maybank said, adding that it will actively manage its credit portfolios while maintaining strong liquidity and capital to support disciplined growth.

Maybank recently set a return on equity target of 13%-14% and a cost-to-income ratio goal of no more than 47% by 2030. It has a 2026 headline ROE target of at least 11.8%.

Shares in the lender have risen about 18% this year as sentiment toward Malaysian equities improves amid greater macroeconomic clarity and a stronger ringgit, which is helping attract foreign inflows.

Some analysts think there is scope for Maybank and other Malaysian lenders to rally further despite their recent sharp gains.

Continued buying by local and foreign investors, along with Malaysian banks' relatively attractive valuations versus their Singapore peers, could support the sector's outlook, according to Paul Yap Ee Xing of AmInvestment Bank. Investors also haven't fully benefited from potentially higher dividends, which suggests room for the theme to play out over the next one to two years, he said in a recent note.

Citi analyst Yong Hong Tan said Malaysian banks could see margins expand this year as funding costs decline following the July rate cut. A large portion of fixed deposits will be repriced at lower rates over the coming months, helping reduce overall funding costs, he wrote recently. Banks such as Maybank, which have regional operations, also stand to benefit from lower U.S. dollar funding costs, he said.

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

(END) Dow Jones Newswires

February 26, 2026 00:51 ET (05:51 GMT)