Maybank has reported a net operating income of RM7.71 billion ($2.34 billion) for the 1QFY2025 ended March 31, 2025, up 1.8% y-o-y.
The bank’s net fund-based income for 1QFY2025 grew 2.3% y-o-y to RM4.95 billion, while non-interest income (NII) increased to RM2.76 billion supported by growth in wealth management fees.
The improvement in net fund-based income was on the back of a 3.2% y-o-y loans growth across all home markets and key segments of Malaysia, Singapore and Indonesia by 8.0%, 5.9% and 0.8% y-o-y respectively.
NII growth was supported by improved wealth management performance.
For the 1QFY2025, net profit increased 4% y-o-y to RM2.59 billion, while profit before tax rose 4.4% y-o-y to RM3.59 billion.
Overhead costs expanded slightly amid inflationary pressures to RM3.74 billion from RM3.66 billion on higher personnel expenses, marketing costs and software maintenance expenses.
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For the 1QFY2025, pre-provisioning operating profit stood at RM3.97 billion, a 1.3% y-o-y increase, and annualised return on equity increased to 11.3%, improving from 11.1% in FY2024.
Net impairment provisions improved 21.7% to RM426.4 million on lower loan provisions by 17.9% to RM0.38 billion.
As a result, the net credit charge-off rate eased to 23 basis points from 28 bps in the previous quarter. Gross impaired loans ratio improved by 5 bps to 1.27% compared to the same quarter of 2024, while loan loss coverage remained strong at 122.9%.
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Maybank’s CET1 capital ratio at 14.88% and total capital ratio at 17.96%, and the group’s liquidity coverage ratio remained stable at 135.7%, above the regulatory requirement of 100%.
The bank’s focus on completing M25+ remains steadfast.
For its Singapore operations, Maybank recorded a 20.1% y-o-y rise in net fund-based income of $193.07 million, thanks to lower funding costs and write-back in term loans effective interest rate adjustment.
NOII, meanwhile dropped slightly at 1.6% to 1$143.51 million due to lower treasury income. Profit before tax was lower by 10.5% y-o-y to $179.39 million, due to higher overheads and lower impairment allowance write-back offsetting the stronger fund-based income.
Shares in Maybank closed 4 sens higher or 0.4% up at RM9.92 on May 26.
