KUALA LUMPUR: Malayan Banking Bhd (Maybank) recorded a net profit of RM10.51 billion for the financial year ended Dec 31, 2025 (FY25), a 4.2% increase from RM10.08 billion a year earlier, supported by income growth, cost management and asset quality.
Revenue slipped to RM66.36 billion from RM68.94 billion, while net interest income and insurance and takaful services income increased by 36.7% year-on-year to RM1.75 billion, a jump of RM471.2 million.
Other operating income edged down to RM9.01 billion from RM9.06 billion, reflecting an unrealised mark-to-market loss of RM66.4 million on financial liabilities measured at fair value through profit or loss (FVTPL), as well as a smaller RM629.2 million gain from the disposal of financial assets classified under FVTPL.
The softer performance was mitigated by a RM1 billion increase in realised gains on derivatives, a RM297.6 million rise in foreign exchange gains, and a RM767.3 million reduction in unrealised mark-to-market losses on derivatives.
In addition, gains from the disposal of financial investments designated at fair value through other comprehensive income (FVOCI) were RM212.7 million higher year-on-year.
Overhead expenses increased by 2.6% to RM14.83 billion, mainly due to higher personnel costs amounting to RM137.8 million. The rise also reflected additional spending on administrative and general expenses of RM126.4 million, establishment costs of RM106.3 million, and marketing outlays totalling RM8.5 million.
Net allowances for impairment losses on loans, advances, financing and other debts improved by 66.4% to RM562.1 million, while net allowances for impairment losses on financial investments rose to RM847.2 million.
For Q4’25, net profit increased to RM2.67 billion from RM2.53 billion a year earlier, while revenue declined to RM15.81 billion from RM16.73 billion.
Quarterly net interest income and Islamic banking income grew 7.6% year-on-year to RM5.77 billion, while insurance and takaful service results improved to RM584.6 million.
Other operating income fell to RM1.49 million in Q4, mainly due to a lower unrealised mark-to-market gain of RM1.59 billion on financial liabilities at FVTPL and a RM460.5 million lower gain on disposal of financial assets at FVTPL.
The decline was cushioned by an RM611.9 million lower unrealised mark-to-market loss on derivatives, an unrealised mark-to-market gain of RM444.6 million on financial investments at FVTPL, a net foreign exchange gain of RM75.5 million and a RM191.5 million higher realised gain on derivatives.
Net allowances for impairment losses on loans, advances, financing and other debts fell by RM435.9 million in the quarter, while allowances for impairment losses on financial investments stood at RM175.4 million.
Islamic banking income rose by RM656.5 million, or 3.1%, to RM21.81 billion in FY25.
Chairman Tan Sri Zamzamzairani Mohd Isa said the group’s full-year results underscored the resilience of its diversified operations and the robustness of its balance sheet.
Maybank said it will continue paying dividends fully in cash after maintaining a 100% cash payout for the past three financial years.
Maybank declared a total dividend of 63 sen per share for FY25, marking the third consecutive year of full cash payouts.
Group chief financial officer Shafiq Abdul Jabbar said that although the FY25 payout ratio appears lower than peak levels in prior years, the dividend was paid entirely in cash, unlike earlier periods when a portion was reinvested under the Dividend Reinvestment Plan (DRP).
“Everything actually goes out. We feel that this is the right way of doing things. We will work out how much capital we need, and the rest we will give back to shareholders.
“And we feel roughly about one-third of the capital to be retained for future growth is sustainable into the long term. So we see this as something that will continue,” he said at Maybank Group’s Q4 and FY25 financial results media briefing today.
Shafiq said past payout ratios appeared higher largely because a significant portion was reinvested through the DRP.
“If you look at the slide on dividends, the payout ratio has been higher in the past, but its cash component was actually quite small,” he said.
“For example, in FY20, the payout ratio was 91%, but the cash component was only 34%. That means only 34% was paid in cash, while the balance was reinvested back into the bank. Right now, what we’re seeing is 100% cash.”
For FY25, Maybank declared a full cash second interim dividend of 33 sen per share, bringing total dividends to 63 sen per share. This translates into a dividend payout ratio of 72.4% and a dividend yield of about 6%.
For FY25, the dividend payout ratio stood at 72.4%, compared with 73% in FY24 and 77.4% in FY23.
Over the past decade, payout ratios have ranged between 76.3% and 91.2%, with the highest recorded in FY20.
