Maybank, Southeast Asia’s fourth-largest bank by assets, delivered a steady performance for the first half of the financial year ending June 2025 (1H FY25).
The Group reported a 4.0% year-on-year increase in net profit to RM5.22 billion, up from RM5.01 billion a year earlier. Profit before tax (PBT) also rose 3.2% to RM7.11 billion, reflecting resilience despite a challenging macroeconomic environment.
The results were supported by stronger non-interest income, steady loan growth in Malaysia and Singapore, and lower impairment provisions. At the same time, Maybank continued to strengthen its capital and liquidity positions while delivering sustainable shareholder returns and advancing its M25+ strategic roadmap.
Maybank’s net operating income for 1H FY25 increased 3.2% to RM15.40 billion, driven mainly by growth in non-interest income (NoII), which rose 7.0% to RM5.51 billion. The uplift came largely from improved investment and trading income.
Net fund-based income grew modestly to RM9.89 billion compared with RM9.77 billion a year earlier, though net interest margin slipped by 2 basis points due to a softer rate environment, particularly in Singapore.
Despite inflationary pressures pushing operating costs higher to RM7.53 billion, Maybank still achieved a 2.6% rise in pre-provisioning operating profit (PPOP) to RM7.87 billion.
On the asset quality front, net impairment provisions improved by 2.5% to RM901 million, aided by a 4.9% drop in loan provisions supported by recoveries. The Group’s gross impaired loans ratio stood at 1.30%, with loan loss coverage at 117.9%, underscoring its sound underwriting practices and effective recovery strategies.
Loans and Deposits Growth
Maybank’s loans portfolio showed steady expansion in its core markets:
- Malaysia loans rose 6.8% year-on-year.
- Singapore loans increased 4.3%.
- Indonesia loans fell slightly by 0.4%, due to corporate portfolio rebalancing.
Overall, Group loan growth moderated to 1.3% year-on-year, reflecting cautious lending in light of global economic uncertainty.
Deposits, however, grew more strongly at 6.1%, led by a significant 21.5% increase in Singapore and 4.9% growth in Malaysia. Current and savings account (CASA) balances reached RM283.3 billion, up 5.1% year-on-year, reflecting customer confidence and Maybank’s ability to secure stable, low-cost funding.
As a result, the Group’s loan-to-deposit ratio improved to 90.2%, compared with 94.5% a year earlier.
Strong Capital and Liquidity
Maybank continued to maintain robust capital buffers, with a CET1 ratio of 14.68% and a total capital ratio of 17.93% as at June 2025. Liquidity also remained solid, with a Group Liquidity Coverage Ratio (LCR) of 138.1%, comfortably above the regulatory requirement of 100%.
This positions Maybank strongly to navigate global volatility, support regional expansion, and fund long-term growth initiatives.
Shareholder Returns Strengthened
The bank’s return on equity (ROE) improved to 11.5% in 1H FY25, up from 11.0% in the same period last year.
Reflecting its commitment to rewarding shareholders, the Board of Directors declared a first interim full cash dividend of 30 sen per share, representing a 69.5% payout ratio or a total payout of RM3.62 billion. This marks an increase from the previous year’s dividend, underlining the Group’s strong fundamentals and sustainable earnings profile.
Sustainability and ESG Achievements
Beyond financial results, Maybank also made significant progress on its sustainability agenda.
- The Group achieved RM139.62 billion in cumulative sustainable finance by 1H FY25, far surpassing its 2025 target of RM80 billion.
- Over 2.5 million lives have been positively impacted through its sustainability initiatives, exceeding the target of 2.0 million lives.
- Carbon emissions were reduced by 54.6%, keeping the Group on track to meet its 57.5% reduction goal by 2025.
- Employees contributed more than 355,000 sustainability hours through the Living Sustainability programme.
Maybank’s efforts earned recognition from Sustainalytics, with its ESG Risk Rating improving from medium to low. The bank also won accolades at the 2025 Euromoney Awards as Asia’s Best Bank for Transition Strategy and Malaysia’s Best Bank for Sustainable Finance.
These achievements reflect Maybank’s strong commitment to its net zero ambition and leadership in responsible banking.
Progress Under M25+ Strategy
Maybank’s M25+ strategy, which focuses on super growth areas, continued to deliver results in the first half of 2025:
- Wealth Management fees rose 12.9% to RM624 million, while Islamic Wealth AUM expanded 17.2% to RM98.7 billion.
- Islamic Banking posted a strong 24% increase in PBT to RM2.30 billion, with Islamic financing in Malaysia growing 10.0% year-on-year.
- Digital penetration improved, with Global Markets fee income in Malaysia’s mid-cap segment up 15.3%.
- Motor insurance doubled its surplus to RM72.6 million, supported by AI-driven enhancements.
Maybank’s 1H FY25 performance reflects a balance of financial strength, prudent risk management, and sustainability leadership. With net profit of RM5.22 billion, a higher dividend payout, and progress across its M25+ and ESG strategies, the Group remains well-positioned to support Malaysia’s economy and strengthen its role as a leading ASEAN financial institution.
To learn more about Maybank’s financial performance, sustainability journey, and strategic initiatives, check out here for all the details.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
