KUALA LUMPUR: In a quarter where most banks had to wrestle with thinning margins, Malayan Banking Bhd (Maybank) managed to hold its ground and even edge forward, backed by a disciplined funding strategy, analysts said.
Maybank's net interest margin (NIM) rose to 2.02 per cent in the third quarter ended Sept 30, 2025, a modest two-basis-point lift, which still stood out in a lower-overnight policy rate (OPR) environment.
NIM is the difference between what a bank earns from lending and what it pays for deposits, shown as a percentage of how profitably it runs its core business.
Bank Negara Malaysia adjusted the OPR in July, reducing it by 25 basis points to 2.75 per cent, to support economic recovery amid moderating global conditions.
Over the first nine months, Maybank, the country's largest bank by assets, kept its margin virtually intact at 2.03 per cent, easing by only one basis point.
MULTIPLE LEVERS
Research houses said the improvement stemmed from a combination of measures, including deposit repricing, rebalancing across markets and tapping more efficient funding sources.
MBSB Research said the bank still has "running room" heading into the final quarter of its 2025 financial year, noting that recent ringgit strength has yet to draw in notable deposit inflows.
"If those inflows materialise later, Maybank could see an added lift," the firm said in a note.
CIMB Securities Sdn Bhd said Maybank's steadier margins contrast with the softer trends seen across the industry. Public Bank Bhd saw an eight-basis-point quarter-on-quarter decline in NIM, while Affin Bank Bhd posted a nine-basis-point drop.
Against this backdrop, the firm said Maybank has shifted its guidance from expecting mild compression to anticipating stable margins, supported by a balanced asset-liability profile and an improving funding landscape.
SOLID FOOTING
TA Securities said Maybank's performance was "solid by any measure", especially given the OPR cut in July.
Net fund-based income rose 1.6 per cent year-on-year, supported by loan expansion and steady balance-sheet management across its Malaysian and Singaporean operations.
The research house also pointed to firmer sentiment around asset quality.
Maybank has tightened its net credit cost guidance to below 20 basis points, anchored by a 110 per cent loan-loss coverage ratio and RM2.5 billion in management overlays, a buffer that keeps the bank comfortably ahead of risk cycles.
Still, analysts cautioned that the usual year-end fight for deposits could limit how much more the margin can expand in the near term.
UPBEAT MARKET VIEWS
The better clarity on margins and credit costs has kept research calls broadly positive.
MBSB Research reaffirmed its "Buy" stance with a target price of RM10.59, while Hong Leong Investment Bank maintained its "Buy" call at RM10.70.
Public Investment Bank continued to rate the stock as "Outperform" with an RM11.20 target, and TA Securities retained its RM11.40 valuation alongside a "Buy" recommendation.
CIMB Securities went a step further, upgrading Maybank from "Hold" to "Buy" and raising its target price to RM10.50 from RM9.85.
The research house said the bank's stronger earnings visibility and disciplined funding approach place it on firmer footing going into 2026.
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