Founded in 1960, Malayan Banking Bhd (Maybank) is the largest company listed on Bursa Malaysia. It has provided consistent dividend returns to shareholders and achieved decent results in 2025. Here are 12 things I learned from the 2026 Maybank AGM.
1. Net operating income rose 2.7% year-on-year to RM30.4 billion in 2025, driven by growth across net fund-based income and non-interest income. Net profit grew 4.2% year-on-year to RM10.5 billion in 2025, supported by lower net impairment. This reduction was partly influenced by the Vantris Energy debt-for-equity restructuring. Maybank now owns 20.3% stake in the company following the restructuring. Further, net credit charge off rate declined from 26 bps in 2024 to 8 bps in 2025.
2. Dividend per share stood at a five-year high and increased from 61.0 sen in 2024 to 63.0 sen in 2025. Dividend payout ratio stood at 72.4% in 2025, in line with its commitment of giving out at least 40% of its profits annually as dividend to shareholders. Management is aware that a dividend reinvestment plan increases the capital base, which can dilute the return on equity (ROE) and will only implement the plan when required.
3. Total loans grew 1.7% year-on-year or 4.0% on a constant currency basis. Growth was led by Malaysia (+6.1%) and Singapore (+5%). Meanwhile, current and savings account (CASA) deposits grew 9.4% across all markets while the overall CASA ratio increased from 36.5% to 40.5% despite stiff regional competition and adverse foreign exchange movements affecting non-Ringgit deposit balances.
4. Total loans in Indonesia dropped in 2025. The bank is rebalancing its loan portfolio by reducing exposure to low-margin state-owned enterprises in favour of higher-value segments. This strategy prioritises profitable growth through transaction banking and cross-selling, rather than competing solely on loan volume.
5. In 2025, gross impaired loan ratio increased from 1.23% to 1.28% in 2025, although it remains lower than the broader industry average. This increase was primarily observed in Indonesia and selected overseas markets, amid a difficult operating environment. The bank is also adjusting its portfolio by engaging with clients across different countries more regularly. The bank’s loan loss coverage ratio remained robust at 106.7% in 2025 to cover its impaired exposures.
6. Maybank Singapore generates over half of its fee income from wealth management. While smaller than the three major local banks, it benefits from liquidity inflows as clients diversify assets away from China and the Middle East. Maybank also serves ultra-high-net-worth individuals and family offices, including those at the Forest City Financial Centre.
7. Maybank continues to support its existing clients who are expanding into Vietnam and the Philippines. The bank is optimistic about Vietnam’s potential. It operates two branches and a securities business, allowing for direct control. Currently, the bank holds only a minority stake and cannot influence the strategic direction. In the Philippines, the bank operates around 60 branches. While it offers retail services, competing against larger local banks there is challenging, and the investment required to scale retail operations is significant.
8. The Group’s share of profit from associates rose to RM120 million in FY2025. This was driven by improved operating performance at MCB Bank, alongside a one-off uplift in An Binh Commercial Joint Stock Bank’s non-interest income due to significant bad debt recoveries. However, Maybank recognised a RM335 million impairment on its investment in MCB Bank, driven by adverse currency fluctuations in 2025.
9. The Group’s exposure to sectors directly impacted by the Middle East crisis is less than 3% of the total loan book, or approximately RM20 billion. Furthermore, Maybank has no direct real estate exposure in the region, with its presence limited to selected tier-1 financial institutions.
Management overlay adjustments increased from RM1.7 billion in 2024 to RM2.3 billion in 2025 amid heightened credit risks. The bank has proactively repurposed these provisions to address evolving geopolitical uncertainties, shifting focus from trade tariffs to the Middle East conflict.
In terms of portfolio composition, the group maintains a 20% exposure to USD-denominated assets. Also, the group holds a 0.5% and a 2.1% exposure to high-growth data centers and oil and gas sector respectively.
10. Maybank aims to achieve its ROE guidance by 2030 through balance sheet optimisation, operational efficiency improvement, prudent capital allocation, and growth in fee-based revenue. The cost-to-income target accounts for both the spending needed to upgrade core banking technology and ongoing efforts to reduce expenses. Net interest margin (NIM) remained stable despite industry-wide competition for low-cost deposits.
| Indicators | 2024 | 2025 | 2026 target | 2030 target |
| ROE | 11.1% | 11.7% | 11.8% | 13%-14% |
| Cost-to-income ratio | 48.9% | 48.8% | ≤49% | ≤47% |
| NIM | 2.0% | 2.0% | 2.05%-2.10% | >2.05% |
11. Under the M25+ strategy, the bank invested RM1.2 billion between 2023 and 2025 to advance its digital capabilities. Future investment follows a 40/60 split: 40% toward core system modernisation and resilience, and 60% toward long-term innovation, specifically AI scaling and cloud integration.
Maybank’s share of internet-banking financial transactions in Malaysia dropped from 52.3% in 2024 to 49.5% in 2025. CEO Dato’ Sri Khairussaleh Ramli attributed the decline to the maturing financial scene in the country. Instead of competing only for low-cost deposits, the bank aims to cross-sell to increase its income. The number of three-month active digital users reached 10.8 million.
In Malaysia, Maybank owned:
- 44.7% of mobile-banking transactions in 2025.
- 46.4% of mobile and internet banking transaction volume in 2025.
- Around 20% of total SME loans market share.
- Around 20% of the total household loans.
12. Maybank Investment Bank captured 32% of total IPO funds raised and 56% of Main Market proceeds. Maybank is also ranked 20th among Asia’s largest private banks with a 30% year-on-year growth in assets under management.
The fifth perspective
Under the ROAR30 strategy, Maybank aims for healthy growth in 2026, banking on expansion across Islamic financing, wealth management, and regional businesses amid evolving geopolitical and macroeconomic uncertainties.
For long-term investors, the bank’s ability to balance steady growth with prudent risk management allow it to continue delivering resilient earnings and sustainable shareholder returns, reinforcing its position as one of the region’s leading financial institutions.
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