Maybank Net Profit Falls 4.2% on Weaker Trading Income

Maybank's First-Quarter Net Profit Misses Expectations

Malayan Banking reported a 4.2% decline in first-quarter net profit to 2.48 billion ringgit ($625 million), missing analyst expectations of 2.73 billion ringgit. The drop was driven by weaker trading income, higher unrealized losses on financial investments, and increased impairment losses.

Net Interest Income Rises, Noninterest Income Falls

Net interest income increased 1.6% to 3.27 billion ringgit, with net interest margin improving to 2.14% from 2.04%. However, noninterest income declined to 1.99 billion ringgit. The bank remains cautiously optimistic amid geopolitical uncertainties and plans to deepen regional integration while investing in technology and AI.

Stock Performance and Analyst Views

Maybank shares have fallen nearly 4% this quarter. CIMB Securities maintains an overweight rating on the sector, noting limited direct exposure to Middle Eastern markets. Analysts believe stable net interest margins and healthy capital buffers could support earnings despite a softer macroeconomic environment.