Malayan Banking Bhd (Maybank) Financial Update

Malayan Banking Bhd, a leading commercial bank in the financial sector, is set to present its quarterly results for the period ending June 30, 2025, on August 26, 2025. Analysts anticipate a slight decrease in earnings per share (EPS) to 0.205 MYR from 0.210 MYR in the previous year. Despite this, Maybank remains optimistic about achieving its financial targets for the year.

Challenges and Strategic Adjustments

Maybank faces challenges in loan growth and net interest margin (NIM) due to global tariff uncertainties and competitive pressures in international markets. In response, the bank has revised its annual loan growth target from 5-6% to approximately 3%. However, it remains committed to its return on equity (ROE) target of at least 11.3%, supported by strong non-interest income and stable funding.

Financial Performance

For the first half of the financial year 2025, Maybank reported a net profit increase of 3.89% to 26.80 billion MYR, compared to 25.30 billion MYR in the same period last year. Revenue saw a slight decline of 0.5% to 170.79 billion MYR. The bank has declared a mid-term dividend of 30 sen per share, up from 29 sen in the previous year.

Market Impact

The unexpected dismissal of a U.S. Federal Reserve board member by President Trump has shaken global confidence in the Fed’s independence, leading to a downturn in Asian stock markets. Maybank’s shares experienced a significant drop, contributing to the broader market decline.

Regional Performance

Maybank’s loan growth in Malaysia and Singapore remains robust, outpacing industry averages, despite a slowdown in Indonesia. The bank’s total loans as of June 30, 2025, stood at 677.60 billion MYR, with a year-on-year increase of 1.3%.

Conclusion

Despite facing headwinds in loan growth and market volatility, Maybank is strategically positioned to meet its financial targets, leveraging its diversified income streams and regional strengths. The bank continues to focus on profitable growth in community financial services amidst challenging economic conditions.