MAYBANK EXPECTS LOAN GROWTH OF 5-6 PCT IN MALAYSIA FOR 2026

KUALA LUMPUR, Feb 26 (Bernama) -- Malayan Banking Bhd (Maybank) expects loan growth of five per cent to six per cent in Malaysia for 2026 in line with gross domestic product (GDP) growth, said its group chief financial officer Shafiq Abdul Jabbar. 

He said the outlook is driven by firm domestic demand, resilient consumer spending, and an investment technology upcycle supported by key strategic initiatives.

He said a lot of infrastructure has also been deployed, especially in data centres and related activities.

“We see that the consumer portfolio and the community financial services (CFS) portfolio will continue to grow.

“We are also bullish on developments and prospects in the Johor-Singapore Special Economic Zone,” he told reporters at a media briefing of Maybank’s financial results for the financial year of 2025 (FY2025) ended Dec 31, 2025, here today.

Meanwhile, Maybank group chief executive officer (GCEO) of global banking Datuk John Chong Eng Chuan said that in 2026, the bank will prioritise new economies, including the digital economy and services, food security, and advanced high-technology manufacturing.

“That is the area that we are looking at where we feel that it is a ‘blue ocean’ for us to grow.

“Other (areas include) infrastructure and green energy, apart from the normal purchase order lending that we have done,” he said. 

Additionally, Maybank GCEO of CFS Syed Ahmad Taufik Albar said growth in the consumer and small and medium enterprise segments is also expected to be supported by strong activity among large corporates.

“We expect this to have a trickle-down effect on the SME players within the country, which could in turn generate a knock-on effect on consumer spending.

“Additionally, we believe Visit Malaysia 2026 will make a huge contribution to the economic momentum, particularly on consumer spending,” he said. 

Meanwhile, regarding the overnight policy rate, Shafiq said Maybank expects the rate to remain at 2.75 per cent this year, while the ringgit against the US dollar is expected to remain at the 3.95 level by the end of the year.

“For this year, our guidance for return on equity is set at more than 11.8 per cent; our guidance for cost to income ratio is less than 49 per cent; and net credit charges are expected to stay at about 20 basis points.

“Group loan growth is set to be between four per cent and five per cent on a constant currency basis because exchange rates are a bit volatile, and net interest margin is to be range-bound at between 2.05 per cent and 2.10 per cent,” he said.

In a filing with Bursa Malaysia today, Maybank’s net profit rose 4.2 per cent to RM10.51 billion for FY2025, from RM10.08 billion a year earlier, supported by steady income growth, disciplined cost management and resilient asset quality.

Revenue, however, slipped to RM66.36 billion from RM68.94 billion.

For the fourth quarter (4Q) ended Dec 31, 2025, net profit increased to RM2.67 billion from RM2.53 billion in the same quarter a year earlier, while revenue declined to RM15.81 billion from RM16.73 billion previously.

Maybank declared a second interim cash dividend of 33 sen per share, bringing total dividends for FY2025 to 63 sen per share, equivalent to a payout ratio of 72.4 per cent and a dividend yield of 6.0 per cent.

-- BERNAMA