5th, 6th and 7th largest banks in Malaysia. Are they doing well?

5th, 6th and 7th largest banks in Malaysia. Are they doing well?

What about the top 4 largest ones?

In an earlier report for the top 4 largest banks in Malaysia by asset and market capitalization, all 4 have reported positive results. Read them here: Results of the Top 4 Banks in Malaysia Today, let’s look at middle sized ones within the top 10 largest local banks here in Malaysia. They are Hong Leong Bank, Ambank and Bank Rakyat. Do you have a bank account with any of these banks? Maybe holding their credit cards or a home loan with them? I have no accounts and no home loans with all three of them. Let’s start with the 5th placed first, Hong Leong Bank.

Hong Leong Bank is doing well. PAT is over RM 1 billion per quarter

Article in business today.com “Hong Leong Bank Berhad posted a steady set of results for the first quarter ended 30 September 2025 (Q1FY26), the bank’s operating profit before associate contribution rose 7.8% year-on-year (y-o-y) to RM1.04 billion, supported by continued expansion in its loans and financing portfolio and improved treasury and wealth management performance. Profit after tax for the quarter was at RM1.09 billion compared to RM1.089 billion the year before.” Article in business today.com

AMMB Holdings Bhd has posted 3 percent earnings increase (despite more volatile environment)

Article in nst.com.my. AMMB Holdings Bhd (AmBank Group) posted a three per cent earnings increase in the first quarter driven by strong income growth.

The bank’s net profit in the quarter ended June 30, 2025 rose to RM516 million from RM500 million in the same period last year.

AmBank’s group revenue climbed 9.5 per cent to RM1.29 billion from RM1.18 billion last year.

AmBank group chief executive officer Jamie Ling said it delivered a solid set of results, with income growth underpinned by an improvement in net interest margin (NIM). Article in nst.com.my.

Bank Rakyat posted a higher net profit for 2024 versus a year earlier

Article in theedgemalaysia.com. The bank posted a net profit of RM1.17 billion for the financial year ended Dec 31, 2024 (FY2024), slightly up from RM1.12 billion in the previous year, with a total comprehensive income of RM1.15 billion, and its capital adequacy ratio (CAR) of 24% is well above the industry average of 12% to 14%.

The country’s second-largest Islamic lender also maintained its dividend payout of 17% for FY2024, amounting to a total distribution of about RM510 million. Article in theedgemalaysia.com.

Conclusion

It’s true that when the market is good, every bank should be earning a profit. It’s also equally true that this has not been an amazing year. Plus the fact that all local banks also continue to face competition from the foreign owned ones as well. So, they need to continue to offer great products and service while at the same time keeping costs as low as possible.

Do remember yeah, the cost for ensuring their apps are working… the cost to cost of AI transformation is almost the same as that of the bigger banks BUT… these smaller banks have smaller total profits. So, if they are not able to keep the investments low, then we will see this being reflected in their results in the future. For now, nothing of that has happened and I think all our banks are able to hold their own and able to continue to be competitive.

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