Maybank Net Profit Falls Amid Weaker Trading Income

By Ying Xian Wong

Malayan Banking reported a 4.2% decline in first-quarter net profit amid weaker trading income owing to a challenging market environment, missing expectations for growth.

Higher unrealized losses on financial investments, lower foreign-exchange gains and increased impairment losses also pressured its bottom line.

Malaysia's largest lender by market capitalization said Thursday that net profit was 2.48 billion ringgit, equivalent to $625 million, down from 2.59 billion ringgit a year ago. Analysts had expected 2.73 billion ringgit, according to a poll by Visible Alpha.

Quarterly net interest income rose 1.6% to 3.27 billion ringgit. Net interest margin improved to 2.14% from 2.04%, supported by a lower funding cost mix and a higher share of low-cost customer deposits across its home markets, it said.

Noninterest income declined to 1.99 billion ringgit.

Maybank said it remains cautiously optimistic amid persistent geopolitical uncertainties, and will continue its balanced approach toward growth and management of asset quality, capital and liquidity.

Under its five-year strategy, the bank plans to deepen its regional integration while expanding core businesses and investing in technology, data and artificial intelligence to drive long-term growth.

Shares in the lender have fallen nearly 4% so far this quarter as cautious sentiment and geopolitical headwinds in the Middle East curb foreign appetite for Malaysia's financial heavyweights.

Analysts have expressed concern that heightened uncertainty and the shock from rising oil prices could weigh on broader economic momentum, potentially spilling over into banking activity.

CIMB Securities, however, said Malaysian banks faced limited direct exposure to Middle Eastern markets and manageable second-order risks from supply-chain disruptions, leaving its overweight rating on the sector unchanged.

Banks are likely to adopt a more defensive approach to balance-sheet expansion amid a weakening macroeconomic backdrop while focusing on asset quality and risk-adjusted returns, according to CIMB's Ei Leen Tan.

Stable net interest margins, disciplined capital management and healthy capital buffers could support sector earnings, providing a buffer against downside risks even amid a softer macro environment, the analyst said in a note.

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

(END) Dow Jones Newswires

May 28, 2026 02:47 ET (06:47 GMT)