{"id":6900,"date":"2026-03-03T12:03:55","date_gmt":"2026-03-03T12:03:55","guid":{"rendered":"https:\/\/malaysian-business.com\/wptest\/?p=6900"},"modified":"2026-03-03T12:03:55","modified_gmt":"2026-03-03T12:03:55","slug":"record-profits-and-the-high-cost-of-brown-credit","status":"publish","type":"post","link":"https:\/\/malaysian-business.com\/portal\/2026\/03\/03\/record-profits-and-the-high-cost-of-brown-credit\/","title":{"rendered":"Record Profits and the High Cost of “Brown” Credit"},"content":{"rendered":"\n

In the first week of March 2026, Malaysia\u2019s leading financial institutions, Maybank<\/strong>, CIMB<\/strong>, and Public Bank<\/strong>, released their results for the 2025 financial year. The headline is clear: Despite a year characterized by persistent rate cuts and a global push toward decarbonization, Malaysia\u2019s banks have never been more profitable or more selective.<\/p>\n\n\n\n

Peer Comparison: The 2025 Financial Scorecard<\/strong><\/p>\n\n\n\n

The banking sector has emerged as the most resilient engine of the 13th Malaysia Plan (13MP). While their strategies differ, all three giants delivered massive value to shareholders through record dividends.<\/p>\n\n\n\n

Metric<\/strong><\/td>Maybank (ROAR30 Strategy)<\/strong><\/td>CIMB Group (Forward30 Strategy)<\/strong><\/td>Public Bank (Prudence First)<\/strong><\/td><\/tr><\/thead>
Net Profit<\/strong><\/td>RM10.51b<\/strong> (+4.2%)<\/td>RM7.90b<\/strong> (+1.7%)<\/td>RM7.22b<\/strong> (+1.1%)<\/td><\/tr>
ROE (Return on Equity)<\/strong><\/td>11.7%<\/strong><\/td>11.3%<\/td>12.8%<\/strong><\/td><\/tr>
Dividend per Share<\/strong><\/td>63.0 sen<\/strong><\/td>47.1 sen<\/td>22.5 sen<\/td><\/tr>
Div. Payout (Total)<\/strong><\/td>RM7.8b (Est.)<\/td>RM5.1b (Record)<\/strong><\/td>RM4.2b (Est.)<\/td><\/tr>
Cost-to-Income Ratio<\/strong><\/td>48.8%<\/td>46.2%<\/td>34.9% (Market Leader)<\/strong><\/td><\/tr>
Asset Quality (GIL)<\/strong><\/td>1.28%<\/td>1.70% (Record Low)<\/td>0.50% (Best in Asia)<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
    \n
  • Maybank successfully concluded its M25+ plan and launched ROAR30, targeting a bold 13\u201314% ROE by 2030.<\/li>\n\n\n\n
  • CIMB achieved its highest-ever dividend payout, fuelled by a 21bps reduction in cost of funds through its F30 digital transformation.<\/li>\n\n\n\n
  • Public Bank remains the “efficiency fortress,” maintaining an industry low 0.5% GIL ratio while integrating the newly acquired LPI Capital<\/li>\n<\/ul>\n\n\n\n

    The Green Dividend: ESG as the New Collateral<\/strong><\/p>\n\n\n\n

    The most profound shift in these results is not the profit itself, but how it was made. The banks are increasingly moving capital away from traditional “Brown” sectors (high carbon) toward “Green” and “Social” portfolios.<\/p>\n\n\n\n

    The RM500 Billion Target<\/strong><\/p>\n\n\n\n

    By 2030, Malaysia\u2019s top banks have committed nearly RM500 billion in sustainable finance. This massive liquidity pool is no longer a “bonus” as it is the primary source of affordable credit in 2026.<\/p>\n\n\n\n

      \n
    • Maybank (ROAR30)<\/strong>: Recently raised its sustainable finance target to RM300 billion by 2030, having already mobilized RM176 billion.<\/li>\n\n\n\n
    • CIMB (F30)<\/strong>: Tripled its target to RM300 billion by 2030, with a focus on “transition financing” for SMEs.<\/li>\n\n\n\n
    • Public Bank<\/strong>: Targeted RM100 billion by 2030, with over 67% already achieved through energy-efficient vehicles and affordable housing.<\/li>\n<\/ul>\n\n\n\n

      The “Green Credit Gap” for SMEs<\/strong><\/p>\n\n\n\n

      For a Malaysian businessman, this creates a two-tier credit market:<\/p>\n\n\n\n

        \n
      1. The Green Tier: If your firm is aligned with the National Energy Transition Roadmap (NETR) or uses CIMB\u2019s GreenBizReady tools, you can access preferential rates that are 25\u201350bps lower than the market average.<\/li>\n\n\n\n
      2. The Brown Penalty: Firms in high-emission sectors (Construction, Palm Oil, Transport) that cannot show a “Transition Plan” are facing higher risk premiums. In 2026, banks are using AI-driven ESG scoring to automate these decisions; if your data isn’t digital and verifiable, your loan might be rejected regardless of your cash flow.<\/li>\n<\/ol>\n\n\n\n

        “Digital Greenery”<\/strong><\/p>\n\n\n\n

        The convergence of the Hong Kong Budget\u2019s AI focus and the Malaysian Banks’ green targets creates a unique opportunity.<\/p>\n\n\n\n

        Malaysian firms should leverage CIMB\u2019s tokenized blockchain funding or Maybank\u2019s new ROAR30 digital app to prove their sustainability metrics. In this environment, the most valuable “collateral” you own isn’t your land or factory, it is your ESG data<\/strong>.<\/p>\n\n\n\n

        <\/p>\n","protected":false},"excerpt":{"rendered":"

        In the first week of March 2026, Malaysia\u2019s leading financial institutions, Maybank, CIMB, and Public Bank, released their results for the 2025 financial year. The headline is clear: Despite a year characterized by persistent rate cuts and a global push toward decarbonization, Malaysia\u2019s banks have never been more profitable or more selective. Peer Comparison: The […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[122,225,229,223,232,233,228,226,237,235,133,224,241,234,231,222,239,221,230,227,240,236,238],"class_list":["post-6900","post","type-post","status-publish","format-standard","hentry","category-opinion","tag-13mp","tag-13thmalaysiaplan","tag-capitalreallocation","tag-cimbgroup","tag-costoffunds","tag-digitalbanking","tag-dividendrecord","tag-ekonomimadani","tag-esgmalaysia","tag-fintechmalaysia","tag-forward30","tag-fy25results","tag-greenbizready","tag-greencreditgap","tag-malaysianbanking","tag-maybank","tag-netzero2050","tag-publicbank","tag-roar30","tag-roe","tag-smefinancing","tag-sustainablefinance","tag-transitionfinance"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/6900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=6900"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/6900\/revisions"}],"predecessor-version":[{"id":6901,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/6900\/revisions\/6901"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=6900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=6900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=6900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}