Key Financial Highlights: Q1 2025 vs. Q1 2024

Maybank’s First Quarter 2025 results show a solid performance compared to the same period last year, demonstrating growth across several key metrics:

While the overall profit figures are encouraging, a deeper dive into the income streams reveals a mixed picture:

Income Streams Breakdown

The significant increase in Insurance/Takaful Service Result is a standout, reflecting strong performance in this segment. However, the decrease in Other Operating Income is notable, primarily driven by unrealised mark-to-market losses on revaluation of financial investments and liabilities at fair value through profit or loss (FVTPL). This was partially offset by unrealised mark-to-market gains on derivatives and higher foreign exchange gains.

Expenses and Impairments

The Group’s overhead expenses saw a slight increase, rising by 2.3% to RM3,742.9 million from RM3,657.5 million in the same period last year. This led to a marginal uptick in the Cost-to-Income Ratio (CIR) from 48.3% to 48.5%. On a positive note, net allowances for impairment losses on loans, advances, financing, and other debts decreased by 17.9% to RM384.2 million, indicating an improvement in asset quality. Similarly, impairment losses on financial investments significantly reduced by 68.8% to RM22.1 million.

Segmental Performance Snapshots

• Group Community Financial Services (CFS): Profit before taxation and zakat (PBT) increased by 5.5% to RM1,478.7 million, driven by higher other operating income and lower impairment allowances.
• Group Corporate Banking & Global Markets: PBT surged by 13.7% to RM1,682.1 million, benefiting from higher operating income and reduced impairment losses.
• Group Investment Banking: PBT saw a decline of RM45.2 million to RM74.7 million, mainly due to higher overheads and lower other operating income.
• Group Insurance and Takaful: Despite the strong service result, PBT decreased by RM96.7 million to RM265.0 million, primarily due to lower other operating income and net interest income, though mitigated by improved investment/finance results and service results.

Financial Health and Capital Strength

Maybank’s balance sheet remains robust. Total assets grew marginally by 0.7% to RM1,082.6 billion as of 31 March 2025 compared to 31 December 2024. Total liabilities also saw a slight increase of 0.9% to RM986.9 billion. Equity attributable to equity holders, however, decreased by 1.7% to RM92.4 billion, largely due to dividend payments during the period.

In terms of asset quality, the Net Impaired Loans Ratio saw a slight increase from 0.51% (31 Dec 2024) to 0.52% (31 March 2025). While a slight uptick, it remains at a healthy low level, reflecting effective risk management.

The Group’s capital adequacy ratios remain strong and well above regulatory minimums. The Common Equity Tier 1 (CET1) Capital Ratio stood at 14.883% and the Total Capital Ratio at 17.964% as of 31 March 2025. Although these are slightly lower than the 31 December 2024 figures (CET1 at 15.765% and Total Capital at 18.906%), this is primarily due to the deduction of paid dividends from CET1 capital calculations, a common practice in the banking sector.

Current Quarter Performance vs. Preceding Quarter

Looking at the sequential performance from Q4 2024 to Q1 2025, Maybank’s profit after tax and zakat attributable to equity holders increased by 2.2% to RM2,588.9 million. This positive momentum was supported by a 7.6% increase in other operating income, driven by significant mark-to-market gains on derivatives and higher foreign exchange gains, which more than offset the mark-to-market losses on financial liabilities and investments.

However, net interest income and Islamic Banking Scheme operations saw a slight decrease of 1.5%. Overhead expenses also increased by 1.5% compared to the preceding quarter, mainly due to higher administration and general expenses. On a positive note, net allowances for impairment losses on loans, advances, financing, and other debts improved by 13.6%. Conversely, net allowances for impairment losses on financial investments shifted from a writeback of RM83.7 million in the preceding quarter to an allowance of RM22.1 million in Q1 2025.

Risks and Prospects: Navigating a Shifting Global Landscape

The global economic outlook remains a key consideration. Global GDP growth is projected to moderate to 2.5% in 2025 from 3.2% in 2024, influenced by softer momentum in major economies like the US and China. While ASEAN-6 GDP growth is also expected to moderate to 4.2% (from 4.9%), it is anticipated to remain relatively resilient, supported by accommodative monetary policies, though potential weakening in external demand due to ongoing global trade uncertainties poses a challenge.

For Malaysia, GDP growth is forecasted to ease to 4.1% (from 5.1% in 2024) but will largely be driven by resilient domestic demand and strategic initiatives like the National Energy Transition Roadmap and the New Industrial Master Plan. Bank Negara Malaysia’s Overnight Policy Rate is expected to be lower at 2.75% in 2025, with inflation remaining manageable.

Singapore and Indonesia also face moderation in GDP growth due to external headwinds, with potential impacts on trade and labor-intensive sectors. Monetary policies in both countries are anticipated to ease to support domestic economic activity.

Against this backdrop, Maybank Group is accelerating initiatives under its M25+ plan, focusing on intensifying customer centricity and digital/technology modernisation to solidify its regional presence. The Group aims to deepen penetration of its extensive customer base through cross-selling and leveraging ecosystem partnerships. Key growth areas include wealth management, mid-market cap, non-retail, and bancassurance segments. Maybank will continue to prioritize sound liquidity, robust asset quality, and strong capital levels to support disciplined asset growth.