KUALA LUMPUR: Malayan Banking Bhd (Maybank) has extended the contract of its President and Group CEO, Datuk Khairussaleh Ramli, for another three years, enabling him to see through the bank’s M25+ corporate strategy and steer the group into its next strategic phase.
Sources close to the matter said the extension comes as Maybank prepares to transition from its current strategic plan, which concludes this year, to a new mid-term growth roadmap. Khairussaleh, who took the helm on May 1, 2022, previously served as CEO of RHB Bank Bhd for seven years. He succeeded Tan Sri Abdul Farid Alias, who led Maybank for nearly a decade.
The bank declined to comment on the contract extension when contacted.
Solid Financial Trajectory Amid Leadership Change
Under Khairussaleh’s leadership, Maybank has achieved consistent earnings growth. Net profit rose by 17.4% to RM9.35 billion in FY2023 and further increased by 7.9% to RM10.09 billion in FY2024 — marking a record high for the group. Return on equity (ROE) improved steadily from 9.6% in FY2022 to 11.1% in FY2024, putting the bank on track to meet its M25+ target of 11%-12% ROE in 2025.
Despite the robust performance, Maybank drew investor attention earlier this year following the abrupt departure of Group Chief Financial Officer Khalijah Ismail. The bank cited “non-compliance with internal requirements and processes” as the reason, clarifying that no financial losses were incurred. However, some analysts expressed concerns over governance practices. Khalijah, who denies any wrongdoing, is reportedly taking legal action against the bank.
Maybank declined to provide further details, citing confidentiality of employment matters.
Relocation to Merdeka 118 Set for Mid-2026
In a strategic move, Maybank confirmed it will begin relocating to its new corporate headquarters at the Merdeka 118 tower in the second quarter of 2026. The long-awaited move was initially announced in 2022 but faced delays due to construction and compliance requirements.
Once completed, Maybank will occupy 33 floors of the iconic skyscraper, making it the building’s largest tenant and granting it naming rights. The move will mark the end of an era for Menara Maybank, the group’s long-time base on Jalan Tun Perak.
Strong Market Position and Investor Confidence
Maybank’s market capitalisation stood at RM123.7 billion as of last Friday, with shares closing at RM10.24 — up 12.8% year-on-year. It remains Malaysia’s largest public-listed company by market value, ahead of Public Bank (RM84.82 billion) and CIMB Group Holdings (RM75.26 billion).
Analyst sentiment on Maybank remains broadly positive. According to Bloomberg data, 13 analysts have a “buy” recommendation, while six maintain a “hold” and two rate it a “sell”. The average 12-month target price is RM11.52.
Kenanga Research has named Maybank its top pick among large-cap banks, citing strong asset quality and earnings momentum. The firm maintains an “outperform” rating with a target price of RM12.
Outlook for 2025
Maybank’s gross impaired loans ratio improved to 1.23% in FY2024 from 1.34% a year earlier. The record earnings were driven by a 20.4% increase in non-interest income and reduced loan loss provisioning, down 8.5% year-on-year. The bank declared total dividends of 61 sen per share for FY2024, reflecting a 73% payout ratio, fully in cash.
While net interest income remained flat last year, growing just 0.1%, signs of recovery emerged in the fourth quarter with a 5.3% year-on-year increase — the first such growth in two years. Analysts attribute this to improved pricing discipline on loans and deposits and better net interest margin (NIM) management.
CGS International projects a 7.9% rise in Maybank’s net profit for FY2025, supported by higher net interest income and further reductions in provisioning. The research house maintains an “add” call with a target price of RM12.80, citing potential write-backs of management overlays and a 6% dividend yield.
UOB Kay Hian Research, however, is more cautious with a “hold” rating and a target price of RM10.56. The firm expects non-interest income to normalise and NIM to stabilise, forecasting a modest 3% earnings growth.
As Maybank enters a new strategic phase, all eyes will be on how Khairussaleh navigates evolving market conditions while continuing to deliver shareholder value from the country’s most valuable financial institution.
