Maybank Q1 net profit rises 4% to RM2.6 billion
Earnings per share increased to 21.45 sen, from 20.63 sen in the year-ago period.
Return on equity was 11.3 per cent, up from 10.8 per cent in Q1 FY2024.
In a business update on Monday (May 26), the lender attributed the improved performance to increases in both its net fund-based income and non-interest income, which brought net operating income up 1.8 per cent year on year at RM7.7 billion.
Net fund-based income increased 2.3 per cent to RM5 billion. The group noted a stable net interest margin of 2.04 per cent, which was fuelled by a 3.2 per cent increase year on year in loans across all home markets and key segments.
For the quarter, group loans increased in all markets, with Malaysia, Singapore and Indonesia up 8, 5.9 and 0.8 per cent year on year, respectively.
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However, the group added that annualised loans growth was lower at 2.2 per cent, which was 'reflective of the current operating environment which continued to be impacted by cautious business sentiment and moderated credit demands'.
Non-interest income ticked up 0.8 per cent to RM2.8 billion, supported by a 28 per cent increase in wealth fees to RM300 million. However, the global markets segment dipped 4 per cent to RM700 million on reduced capital gains for bonds arising from economic uncertainties.
Overhead costs increased to RM3.74 billion from RM3.66 billion on inflationary pressures, higher personnel expenses, marketing costs and software maintenance expenses.
Maybank's president and group CEO, Khairussaleh Ramli, said that it continued to deliver commendable earnings growth for the first quarter, underpinned by stable net interest margins and better asset quality as well as disciplined cost management, despite ongoing global macroeconomic headwinds.
Looking forward, the group notes a backdrop of uncertainty and volatility on the possibility of US reciprocal tariffs, which would slow global gross domestic product growth.
Maybank added that it will continue to 'double down on penetration of its extensive customer base through focus on segments, cross-selling endeavours and leveraging ecosystem partnerships regionally' and focus on its 'super growth' areas of wealth management, mid-market cap, non-retail and bancassurance segments while tapping on global market flows.
The group's FY2025 guidance sees loans growth at 5 to 6 per cent, return on equity of more than or equal to 11.3 per cent and net credit charge off rate of less than or equal to 30 basis points.
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