27/02/2026

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FRIDAY | FEB 27, 2026

Maybank’s FY25 net profit increases to RM10.5 billion o Group maintains full-cash dividend, declares second interim payout of 33 sen

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Malayan Banking Bhd (Maybank) reported stronger profitability and returns while keeping its capital and liquidity positions solid, supported by prudent risk oversight and steady execution. 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 posted 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 steady income growth, disciplined cost management and resilient asset quality. Revenue, however, slipped to RM66.36 billion from RM68.94 billion, while net interest income and Islamic banking income rose by RM656.5 million, or 3.1%, to RM21.81 billion in FY25. 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, largely 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 several positive factors, including 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 admini strative 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. PETALING JAYA: Sime Darby Bhd’s automotive business continued to power the group’s earnings growth, with strong vehicle sales, rising electric vehicle (EV) adoption and robust regional demand lifting performance in the second quarter ended Dec 31, 2025 (Q2’26). The motors division recorded a 77.1% jump in profit before interest and tax (PBIT) to RM209 million in Q2’26, driven by improved contributions from China, stronger assembly income in Malaysia and higher vehicle sales in Singapore. Group CEO Datuk Jeffri Salim Davidson said the automotive segment remained resilient despite stiff competition and currency volatility, supported by its diversified brand portfolio and regional presence. “Our motors division has been pretty resilient and continues to contribute positively, supported by strong performances across multiple markets,” he said at a media briefing yesterday. The division’s performance was underpinned by rising EV demand and stronger sales momentum across key markets, including Singapore, where EV brands such as BYD and BMW continued gaining traction. Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

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 yesterday. Shafiq said past payout ratios appeared higher 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 6.0%. 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. deferred equipment maintenance and repairs amid softer commodity prices and cost pressures. However, Jeffri said the slowdown was temporary and underpinned by timing rather than structural weakness. “Miners may delay maintenance for a period, but eventually they will have to carry out repairs and servicing. Long-term demand for com modities such as copper and iron ore remains strong,” he added. Despite near-term industrial softness, Sime Darby maintained a positive outlook, supported by sustained automotive demand and long-term industrial growth prospects. The group’s diversified business model, spanning automotive distribution, assembly, equipment sales and engineering, continued to provide earnings stability across different markets and economic cycles. With EV adoption accelerating, expanding regional automotive operations and improving financial discipline, Sime Darby remains well positioned to navigate market uncertainties while sustaining earnings growth. Sime Darby operates in 18 countries and territories with over 30,000 employees and a market capitalisation of RM16.22 billion as at Feb 25.

From left: Maybank CEO, global banking, Datuk John Chong Eng Chuan, Shafiq, Zamzamzairani and group CEO, community financial services, Syed Ahmad Taufik Albar at Maybank Group’s financial results announcement.

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. Separately, Maybank said it will continue paying dividends fully in cash after maintaining a

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.

Sime Darby’s Q2 earnings up 41%, driven mainly by auto division

Jeffri said the group’s efforts to strengthen its financial position had resulted in healthier cash flow generation and lower debt, reducing financing costs by nearly RM100 million during the period. “We have remained focused on strengthening our balance sheet, generating healthy cash flow and reducing debt. We will

Singapore has emerged as the largest revenue contributor in the motors segment, reflecting the growing adoption of electrified vehicles and favourable market dynamics. The group launched several new models, including BMW’s locally assembled EV offerings and BYD models in Singapore, strengthening its electrified vehicle lineup. For Q2 FY26, Sime

continue to prioritise financial discipline while maintaining market share against stiff competition.” Sime Darby declared an interim dividend of three sen per share for H1’26.

Darby’s net profit rose 41.3% to RM431 million from RM305 million a year earlier, supported by stronger automotive

The group’s automotive business also benefited from strong demand in Malaysia, where its subsidiary UMW continued to deliver steady performance. Toyota remained the top non-national brand, surpassing 100,000 units in annual sales for four consecutive years, while Perodua retained its dominance in the domestic market with a 43.9% share in 2025. Meanwhile, the industrial division faced headwinds, with PBIT falling 11% to RM300 million in Q2’26, driven by lower contributions from Australasia and Malaysia. This was mainly attributed to cautious spending by miners, who

earnings and lower financing costs. Revenue increased 7% to RM19 billion from RM17.7 billion previously. For the first half of FY26 (H1’26), net profit stood at RM786 million, down from RM1.1 billion a year ago due to the absence of a one-off gain from the disposal of Malaysia Vision Valley land. Revenue for the period edged higher at 2.82% to RM37 billion from RM35.99 billion posted in H1’25. However, excluding exceptional items, core net profit rose 15% to RM766 million from RM664 million previously, reflecting improved operational performance.