Maybank Kicks Off FY2025 with Resilient Performance Amidst Global Headwinds

Maybank, a name synonymous with robust financial services across ASEAN, has just released its unaudited results for the first half of the financial year ended 30 June 2025. This report offers a comprehensive look into the Group’s performance, demonstrating a commendable profit growth despite an evolving and challenging global economic landscape.

The highlight? A solid 4.0% increase in profit after tax and zakat attributable to equity holders for the half-year, reaching RM5.22 billion. Shareholders will also be pleased to note the declaration of a first interim cash dividend of 30.0 sen per ordinary share, reinforcing the Group’s commitment to delivering value. Join us as we dive into the numbers and strategic insights from this latest financial update.

Core Data Highlights: A Closer Look at the Numbers

Maybank’s financial performance for the first half of FY2025 showcases its resilience and strategic agility. Let’s break down the key figures.

Half-Year Performance (Cumulative 6 Months Ended 30 June 2025 vs. 30 June 2024)

The Group achieved a profit after tax and zakat attributable to equity holders of RM5.22 billion, a 4.0% increase from RM5.02 billion recorded in the previous corresponding six-month financial period. This translated into basic earnings per share rising by 3.9% to 43.20 sen, up from 41.59 sen previously.

Total net interest income and income from Islamic Banking operations saw a modest but positive increase of 1.0%, reaching RM10.67 billion. The Insurance/Takaful segment was a standout performer, with its service result surging by an impressive 33.2% to RM865.9 million.

However, other operating income experienced a 6.5% decrease to RM4.78 billion, primarily due to unrealised mark-to-market losses on financial liabilities at fair value through profit or loss (FVTPL) and financial investments at FVTPL. This was partially cushioned by gains on derivatives and financial investments at fair value through other comprehensive income (FVOCI). Overhead expenses also saw a 3.8% rise, settling at RM7.53 billion. Encouragingly, net allowances for impairment losses on loans, advances, financing, and other debts declined by 4.9%.

Quarterly Performance Snapshot (Second Quarter Ended 30 June 2025 vs. 30 June 2024)

For the second quarter, profit attributable to equity holders increased by 3.9%. Net interest income and Islamic Banking income saw a 1.1% increase. Other operating income demonstrated strong growth, up RM435.2 million, driven by realised gains on derivatives and gains on disposal of FVOCI investments. However, the Insurance/Takaful service result decreased by RM73.2 million, and overhead expenses increased by 5.3%. Net allowances for impairment losses on loans and financial investments also increased by 11.0% and RM35.2 million respectively, reflecting a more cautious provisioning stance.

Financial Position: Strengthening the Balance Sheet

As at 30 June 2025, Maybank’s total assets stood at RM1,073.24 billion. Customer funding, comprising deposits from customers and investment accounts, grew by RM7.83 billion to RM749.73 billion.

Segmental Insights: Mixed Fortunes Across Business Units

The first half of 2025 saw varying performances across Maybank’s key business segments:

• Group Community Financial Services (CFS): Profit before taxation and zakat decreased by 12.4% to RM2.36 billion. This was largely attributed to higher overhead expenses and increased net allowances for impairment losses on loans, financing, and other debts.
• Group Global Banking (GB): This segment delivered a strong performance, with its Corporate & Commercial Banking and Global Markets sub-segment seeing profit before taxation and zakat soar by 22.6% to RM3.90 billion. This growth was fueled by higher other operating income and an increase in net interest and Islamic Banking income, alongside a net write-back for impairment losses. However, Group Investment Banking’s profit before taxation and zakat declined by RM19.7 million due to higher overheads. Group Asset Management, though smaller, showed positive growth, increasing its profit before taxation and zakat by RM5.0 million.
• Group Insurance and Takaful: Profit before taxation and zakat for this segment decreased by 31.9% to RM562.3 million. This was mainly due to lower other operating income and net interest income, and higher impairment allowances, although partially offset by a lower net insurance/takaful investment/finance result and higher service result.

Risks and Prospects: Navigating the Global Economic Currents

Maybank’s latest report acknowledges a complex global economic environment, characterized by moderation in global GDP growth, largely influenced by trade tensions. Here’s a summary of the Group’s outlook:

Global and Regional Economic Outlook:

• Global GDP: Expected to moderate to 2.7% in 2025 (from 3.3% in 2024), driven by softer momentum in major economies like the US and China, especially with new reciprocal tariffs.
• ASEAN-6: GDP growth is forecast to remain relatively resilient at 4.5% in 2025 (from 4.9% in 2024), supported by accommodative monetary policies, despite potential weakening in external demand.
• Malaysia: GDP is forecast to grow 4.2% (from 5.1% in 2024), primarily driven by domestic demand, consumer spending (supported by Budget 2025), and domestic investments (National Energy Transition Roadmap, New Industrial Master Plan, Johor-Singapore Special Economic Zone). Bank Negara Malaysia reduced the Overnight Policy Rate by 25 bps to 2.75% in July, with inflation expected at 2.0%.
• Singapore: GDP growth is projected at 3.2% in 2025 (from 4.4% in 2024), showing stronger growth than earlier anticipated due to frontloading of manufacturing and regional trade activities, a construction boom, and decreasing interest rates.
• Indonesia: GDP growth is expected to moderate to 4.9% in 2025 (from 5.1% in 2024) as consumption slows and exports face pressure. Bank Indonesia has cut interest rates four times this year to 5.00% to stimulate domestic activity.

Maybank’s Strategic Response:

Maybank remains committed to its M25+ plan, focusing on 14 strategic programmes aimed at intensifying customer centricity and accelerating digital and technology modernization. The Group plans to capitalize on its extensive customer base by focusing on key segments, cross-selling, and leveraging ecosystem partnerships. Super growth areas include wealth management, mid-market cap, non-retail, and bancassurance.

The Group emphasizes maintaining sound liquidity, robust asset quality, and strong capital levels to support disciplined asset growth. However, it acknowledges that volatility and uncertainty from potential trade disruptions could impact growth and performance due to slower economic activity, a ‘wait-and-see’ approach to investments, and financial market volatility.

Dividend Announcement: Returning Value to Shareholders

The Board of Directors has declared a single-tier first interim cash dividend of 30.0 sen per ordinary share for the financial year ending 31 December 2025. This amounts to a total dividend payable of RM3.62 billion, based on the shares issued as at 30 June 2025. This represents an increase from the 29.0 sen per ordinary share declared for the previous corresponding period.

The Book Closure Date will be announced at a later date, and the interim dividend will be paid no later than three (3) months from the date of declaration.

As a senior blogger, I believe Maybank has demonstrated a strong capability to maintain its financial footing and strategic direction amidst the evolving global economic currents. Their focus on digital transformation and customer-centricity, coupled with disciplined risk management, seems to be paying off.

What are your thoughts on Maybank’s performance this quarter? Do you think the Group can sustain this growth momentum and navigate the global trade uncertainties effectively in the coming financial periods? Share your insights and perspectives in the comments section below!