Company Coverage
Malayan Banking (MAY MK): 2Q26: Recovery In Non-interest Income
HOLD (Maintained)
Current price:
Target price:
Upside:
RM10.62
RM11.58
9.0%
Analyst
Highlights
Maybank reported an in-line 2Q26 net profit.
- Positively, non-interest income recovered and provisions declined qoq, although the 4bp qoq decline in NIM remains a near-term earnings drag.
- Maintain HOLD and target price of RM11.58 (1.27x 2027F P/B, ROE: 11.2%). The stock is currently trading at historical mean P/B, which we deem as fair given the limited scope to raise dividend payouts further in the near term.
Analysis
In line. Malayan Banking (Maybank) reported a 2Q26 net profit of RM2.69b (+2.4% yoy, +8.5% qoq), bringing 1H26 net profit to RM5.17b (-0.9% yoy). Overall, we view the results as broadly in line, with 1H26 earnings accounting for 48%/49% of our/consensus 2026 estimates. 1H26 net profit declined a modest 0.9% yoy to RM5.17b, weighed down by a 15% yoy contraction in non-interest income from lower forex income and a 22% yoy drop in net insurance income, primarily due to higher claims expenses. This was partly offset by lower net credit costs, driven by recoveries, alongside strong cost discipline, with operating expenses declining 3% yoy.
Highlights
Maybank reported an in-line 2Q26 net profit.
- Positively, non-interest income recovered and provisions declined qoq, although the 4bp qoq decline in NIM remains a near-term earnings drag.
- Maintain HOLD and target price of RM11.58 (1.27x 2027F P/B, ROE: 11.2%). The stock is currently trading at historical mean P/B, which we deem as fair given the limited scope to raise dividend payouts further in the near term.
Analysis
In line. Malayan Banking (Maybank) reported a 2Q26 net profit of RM2.69b (+2.4% yoy, +8.5% qoq), bringing 1H26 net profit to RM5.17b (-0.9% yoy). Overall, we view the results as broadly in line, with 1H26 earnings accounting for 48%/49% of our/consensus 2026 estimates. 1H26 net profit declined a modest 0.9% yoy to RM5.17b, weighed down by a 15% yoy contraction in non-interest income from lower forex income and a 22% yoy drop in net insurance income, primarily due to higher claims expenses. This was partly offset by lower net credit costs, driven by recoveries, alongside strong cost discipline, with operating expenses declining 3% yoy.
HOLD (Maintained)
Current price:
Target price:
Upside:
RM10.62
RM11.58
9.0%
Analyst
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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