Financial Analysis on Maybank and CIMB (Bank Management)

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KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES MAYBANK AND CIMB FIN 4250 BANK MANAGEMENT Lecturer’s name: Dr. Zulkufly Ramly NO. GROUP MEMBER NAME MATRIC NUMBER 1 NurhidayahBintiSallehuddin 1212620 2 Nafsiah Begum Binti Mohamed Najeebu 1217814 3 AfifahNabilahBintiMohamadSafei 1321976 4 AinulfitriahBinti Mat Ghani 1215776 Date of Submission: 27thNovember 2015

Transcript of Financial Analysis on Maybank and CIMB (Bank Management)

Page 1: Financial Analysis on Maybank and CIMB (Bank Management)

KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

MAYBANK AND CIMB

FIN 4250

BANK MANAGEMENT

Lecturer’s name: Dr. Zulkufly Ramly

NO. GROUP MEMBER NAME MATRIC

NUMBER

1 NurhidayahBintiSallehuddin 1212620

2 Nafsiah Begum Binti Mohamed Najeebu 1217814

3 AfifahNabilahBintiMohamadSafei 1321976

4 AinulfitriahBinti Mat Ghani 1215776

Date of Submission: 27thNovember 2015

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Contents

Contents Contents .............................................................................................................................................. 2

Executive Summary ............................................................................................................................. 3

Analysis Overview ................................................................................................................................ 3

Financial Analysis .................................................................................... Error! Bookmark not defined.

Assumptions ........................................................................................................................................ 9

Conclusions ....................................................................................................................................... 10

References ........................................................................................................................................ 11

Appendices ........................................................................................................................................ 12

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Executive Summary

The objective of assignment assigned was to study the financial health of bank by conducting a comparative analysis. We decided to choose Maybank and CIMB to analyze and evaluate the statement of financial position and income statements of banks by computing the performance indicators such liquidity, profitability, financial leverage and asset quality for five years. Those financial analysis tools are important to measure the strength and weaknesses of bank performances.

Liquidity: to determine the ability of bank’s short-term assets pay off the short term liabilities.

Profitability:to determine a bank operational performances in generating profit.

Leverage: to determine the level of sustainable debt or the bank’s ability to meet liabilities obligations.

Asset quality: to determine how bank’s control and monitor credit risk.

The analysis result for five years shows the banks condition, good or bad were affect by internal factors such as operational efficiency and external factors such as economics growth. More than that, we are interested to choose which bank has a better performances and how their financial condition after five years.

Analysis Overview

MAYBANK

Maybank was established in 1960, and today is the largest company by market capitalisation on

the Malaysian Bourse (Bursa Malaysia). It is ranked first among listed Malaysian companies and among

the top 500 companies in the Forbes Global 2000 leading companies of the world. The Maybank Group

offers a comprehensive range of products and services that includes commercial banking, investment

banking, Islamic banking, offshore banking, leasing and hire purchase, insurance, factoring, trustee

services, asset management, stock broking, nominee services, venture capital and Internet banking.

Maybank is Southeast Asia’s fourth largest bank by assets. It is listed and headquartered in Kuala

Lumpur and is Malaysia’s largest company by market capitalization.

The Maybank Group has a global network of over 2,200 offices in 20 countries including in all 10

ASEAN countries. The Group commenced commercial banking operations in Malaysia in 1960 and today

operates from its key home markets of Malaysia, Singapore and Indonesia as well as across the Asia-

Pacific region and major international financial centres. These include the Philippines, Brunei

Darussalam, Cambodia, Vietnam, Laos, Thailand, Myanmar, China, Hong Kong, Papua New Guinea,

Pakistan, India, Uzbekistan, Saudi Arabia, Bahrain, United Kingdom and United States of America.

Having over 50 years of experience and an early presence in global banking markets, the

Maybank Group offers businesses and investors the ability to tap into its resources and network to meet

their financial needs. Its range of services includes corporate and consumer banking, investment banking,

insurance & takaful, asset management, Islamic banking, offshore banking, stock broking, venture

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capital financing and much more. Over the years, Maybank has consistently leveraged on technology for

innovation in products and services, as well as to enhance efficiency and build a competitive edge in the

region. A host of awards from various regional and international organizations bear testimony to the

Group’s commitment to excellence. Today, Maybank is not only Malaysia’s Most Valuable Brand but is

also ranked first among Malaysian banks and among the top 200 global banks by The Banker magazine

of UK, and is also the leading Malaysian company in the FORBES Global 2000 List.

CIMB

CIMB is moving into new era. They have moved to new headquarters at Malaysia’s high tech

transport hub, Kuala Lumpur Sentral. This coincides with the completion of their 1Platform core banking

system in Singapore, Thailand and Malaysia and the completion of Asia Pacific investment banking

network. CIMB Bank is the product of several mergers and acquisitions in the history of Malaysian

economy.

The name CIMB or Commerce International Merchant Bankers Berhad appeared after the Bank

of Commerce Berhad bought major stakes in Pertanian Baring Sanwa Multinational Berhad (PBS). CIMB

Bank offers the banking services to its customers in different nations which are Consumer Banking,

Investment Banking, Islamic Banking, Private Banking, Asset Management, and Insurance. The principal

activities of the Bank during the financial year are commercial banking and the provision of related

financial services, including Islamic banking. The principal activities of the significant consist of Islamic

banking, offshore banking, debt factoring, trustees and nominee services, and property ownership and

management. There was no significant change in the nature of these activities during the financial year.

On equity, CIMB was the biggest in the Dealogic Malaysia, Indonesia, Singapore and Indonesia

Equity Capital Markets league table ranking year-to-date, having successfully led and marketed deals

which had raised a total of US$2.68bil. Despite economic indicators pointing towards a softer outlook

for the region caused by internal and external headwinds, the growth opportunities in selected

segments and markets across the region. Nevertheless, the prevailing tough and uncertain economic

environment could make it more difficult for CIMB to meet some of its Key Performance Indicator

targets.

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Financial Analysis

LIQUIDITY

Based on the calculation made, we can see how the pattern of the ratio differs from year 2010

to year 2014. As we all know,current ratio, fixed assets turnover and total assets turnover are calculated

to measure the capability of the bank to liquidate its assets and liability. Current ratio measures the level

of the current assets that can be quickly convertible into cash and used to meet the short term liabilities.

In this case, the liquidity of the assets of Maybank Berhad has became more iiliquid since the current

ratio decreases from year 2010 to 2012. However, due to the increment of their current assets and

current liabilities, they managed to increase their level of liquidity over the next two years as the current

ratio was increasing and finally reach its highest score in 2014. On the other hand, CIMB Bank shows a

significant decrease in the current ratio from 2010 to 2015. In which the ratio was decreasing from 0.13

in 2010 to 0.06 in 2014. It shows a downward trend, which means the bank current liabilities are

increasing for the past 4 years.

0

5

10

15

20

25

2010 2011 2012 2013 2014

CIMB

Maybank

00.05

0.10.15

0.20.25

0.30.35

0.40.45

2010 2011 2012 2013 2014

CIMB

Maybank

Current Ratio

Fixed Assets Turnover

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The next method that can be used to calculate the level of liquidity is by using the fixed assets

turnover ratios. In this method, we compared the net revenue with the average fixed assets to know

how much the fixed assets turnover that Maybank can get from the net revenue that they sucessfully

make every year. From the result, we can see that the fixed assets turnover ratios for Maybank are

increasing every year from 2010 to 2014. This shows that Maybank has been performing very well in

generating sales with the small cost of fixed assets. Meanwhile, CIMB Bank also shows the same upward

trend on the fixed assets turnover in which they are both ended up with the highest fixed asset turnover

over the 5 years on 2014. They have almost same kind of trend since they are in the same business area

which involves in service business and not focus more on manufacturing products that involve a high

cost on the fixed assets.

The last one is the total assets turnover in which we calculated the total assets turnover from

the net revenue. This is to measure the efficiency of the organizations to use their assets to generate the

sales revenue for the organization. Based on the graph above, we can see that CIMB Bank is much more

stable in utilizing their assets to generate most sales revenue to the company since they have a stable

ratio every year at 0.3 turnover per net revenue compared to Maybank Berhad which showing the

downward trend over the 5 years except on 2012.

PROFITABILITY

Maybank

00.010.020.030.040.050.060.070.080.09

2010 2011 2012 2013 2014

CIMB

Maybank

Total Assets Turnover

0.000

0.200

0.400

0.600

0.800

Rat

io

Profitability

2010

2011

2012

2013

2014

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The Maybank is doing well if the current ratio same from a previous period ratio. In the case of

Maybank, only net profit margin ratio and allowances for loan ratio have almost same ratio from

previous 5 years while other indicators ratio change. The diagram shows that Maybank has highratio in

all indicators in 2010 except in earning asset to total asset ratio where the high ratio is in 2012 for about

6.3%. Maybank has low ratio in all indicatorsin 2014 except for net income to average asset where the

lowest ratio about 1.2% is in 2011.

CIMB Bank

This graph illustrate bank ratio on per period basis for the year 2010 until year 2014. Profitability

ratio shows a bank’s overall efficiency and performance. It comprises return on asset, return on

company equity, return on deposit, operating profit margin, net profit margin, net income to average

assets, profit margin, earning asset to total asset and allowance for financing loans. Generally,for most

of these ratios, by having a higher value from a previous period is indicative that the bank is doing well.

However, for CIMB value of ratio on assets not much higher between years. It increased for the first and

second year but decreased for year 2012 and then remained constant for year 2013 and 2014. Almost

for all this ratios show increased pattern for the first and second year but then tend to decrease for next

year’s onwards except for earning asset to total assets. The value increased slightly between years.

FINANCIAL LEVERAGE

The financial leverage ratio indicates the use of borrowed money to increase production volume,

and thus sales and earnings. It is measured as the ratio of total debt to total assets. The greater the

amount of debt, the greater the financial leverage.

0.0000.1000.2000.3000.4000.5000.6000.7000.8000.900

RA

TIO

YEARS

Profitability

2010 2011 2012 2013 2014

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We can use leverage ratio to measure the financial leverage of the organizations. The leverage

ratio is calculated by dividing the total liabilitites with the common equity. This is to know whether the

assets of the organization are belong to the shareholders or creditors. Based on the graph above, CIMB

Bank shows a high leverage ratio every year compared to Maybank Berhad. However, we can see from

the trend that CIMB Bank actually manage to decrease the leverage ratio a lot at the end of the year

2014 compared to 2013. Meanwhile, Maybank Berhad get its lowest ratio in 2012 but the ratio increases

in 2013 and finally slightly decreases at the end of 2014. Both company shows a very good performance

in 2014 since they manage to lower their debt and save some assets for their shareholders.

The next method is financing/loans to deposits ratio in which we divide the average loans and

financing with the deposits to know whether the bank has enough liquidity to cover unforseen funds or

not. Based on the result, we can see that CIMB Bank increases in the ratio drastically from 2010 to 2012.

The same trend was followed by Maybank Berhad in which since 2010, they ever make much changes in

their financing to deposits ratio. And the amounts are not getting much smaller since the depositors are

increasing each year and the bank also give out much financing and loans to the customers every year.

00.10.20.30.40.50.60.70.80.9

2010 2011 2012 2013 2014

CIMB

Maybank

0

2

4

6

8

10

12

2010 2011 2012 2013 2014

CIMB

Maybank

Leverage Ratio

Financing/Loans to Deposits Ratio

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ASSET QUALITY

The last part is the asset quality. To measure the asset quality, we use non-current financing/loans to total financing/loans ratio and financing/loans to deposits ratio. In both cases, there are so big differences between CIMB Bank and Maybank Berhad in term of their ratios. For the non-current financing/loans to total financing/loans ratio, Maybank shows a constant ratio at 1 over the 5 years while CIMB Bank shows the slight increasing and increasing over the 5 years. On the other hand, for the financing/loans to deposits ratio, CIMB Bank shows a fluctuate trend on the ratio from 2010 rto 2014 while Maybank shows almost zero amount of ratio.

Assumptions

CIMB still need to improvise in managing their profitability indicator. Because some of the ratio only shows slightly increased between years. CIMB need to manage the profitability in order to have more money in less investment and to indicate an upward profit as well.Profitability ratios measure a bank’s ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of a bank to generate earnings, profits and cash flows relative to relative to some metric, often the amount of money invested and highlight how effectively the profitability of a bank is being managed.

0

0.2

0.4

0.6

0.8

1

1.2

2010 2011 2012 2013 2014

CIMB

Maybank

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

2010 2011 2012 2013 2014

CIMB

Maybank

Non-current Financing/Loans to Total

Financing/Loans Ratio

Financing/Loans to Deposits Ratio

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Conclusions

In conclusion, we can see that both Maybank and CIMB are doing very well in the business and have a bright future ahead in the services area. However, since Maybank is one of the oldest bank in Malaysia and one of the first bank of Malaysia, Maybank seem to have been doing quite a good job and better than CIMB Bank. Today, Maybank and CIMB are both play important role a the main banking institution which provide various type of products either Islamic or conventional in Malaysia. We, personally, believe that both of them can grow better and provide more Islamic products and eventually become the main banking institutions in Asia Pacific which provide more Islamic product to the consumers.

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References

Peter S.Rose., &Sylvia C.Hudgins.(2013).Bank Management &Financial Services. (9th ed.). New York: McGraw Hill

Ismail A.Ghafar.(2010). Money, Islamic Banks, and the Real Economy. Singapore: Cengage Learning CIMB BERHAD. (2015, 11 10). Retrieved from www.maybank2u.com.my: http://www.maybank2u.com.my/en/personal/customer-service/about-us.page

MAYBANK BERHAD. (2015, 11 10). CIMB BERHAD. Retrieved from www.cimb.com.en: https://www.cimb.com/en/investor-relations/financial-information/cimb-bank-berhad.html

www.investopedia.com. (n.d.).

http://www.accuity.com/financial-counterparty-kyc/credit-risk/performance-ratios/loan-to-deposit-ratio/

http://www.myaccountingcourse.com/financial-ratios/financial-leverage-ratios

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Appendices MAYBANK

MAYBANK (current ratio) 2014 (RM ‘000)

2013 (RM ‘000)

2012 (RM ‘000)

2011 (RM ‘000)

2010 (RM ‘000)

Cash/Deposits in other Banks (1)

Cash and short-term funds 34,778,324 29,320,984 23,153,242 25,803,796 19,403,616

Deposits and placements with financial institutions

15,811,015 15,723,864 10,039,999 7,644,471 7,098,198

Total cash and deposits 50,589,339 45,044,848 33,193,241 33,448,267 26,501,814

Investment in Securities/Financial Assets (2)

Financial assets purchased under resale agreements

3,625,291 20,558 650,314 - 371,237

Financial assets at fair value through profit or loss

9,425,390 5,546,091 10,719,937 2,884,895 2,241,928

Financial investments available-for-sale 73,630,705 64,532,797 47,366,309 40,262,042 37,446,841

Financial investments held-to-maturity 9,100,155 5,354,097 2,556,849 8,339,494 7,855,322

Derivative assets 4,533,709 3,760,133 2,812,148 1,626,415 1,281,682

Total investment in securities and financial assets

100,315,250 79,213,676 64,105,557 53,112,846 49,197,010

Total (1)+(2) 150,904,589 124,258,524 97,298,798 86,561,113 75,698,824

Current Liabilities

Deposits from customers 306,938,972 273,670,380 237,402,079 201,465,408 175,379,741

Deposits and placements from financial institutions

47,500,184 37,582,577 29,198,776 31,441,675 22,929,822

Obligations on financial assets sold under repurchase agreements

3,166,372 4,300,055 - 373,562 -

Bills and acceptances payable 1,187,310 1,442,612 1,553,312 7,115,673 2,898,997

Derivative liabilities 5,173,575 3,632,464 2,243,617 1,446,311 1,291,498

Other liabilities 8,789,557 9,485,349 8,645,423 4,240,156 3,555,869

Total current liabilities 372,755,970 330,113,437 279,043,207 246,082,785 206,055,927

Current Ratio

𝑇𝑜𝑡𝑎𝑙 1 + (2)

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

150,904,589

372,755,970

124,258,524

330,113,437

97,298,798

279,043,207

86,561,113

246,082,785

75,698,824

206,055,927

= 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑹𝒂𝒕𝒊𝒐 0.405 0.376 0.349 0.352 0.367

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FIXED ASSET TURNOVER 2014 (RM ‘000)

2013 (RM ‘000)

2012 (RM ‘000)

2011 (RM ‘000)

2010 (RM ‘000)

Net Revenue

Operating revenue 20,506,870 18,723,034 17,346,458 13,588,308 13,280,253

(+) Interest Income 13,123,548 11,744,776 11,194,494 9,194,938 8,555,239

(-) Interest Expense (6,055,648) (5,096,985) (4,959,002) (3,654,518) (3,160,604)

Total Net Revenue 27,574,770 25,370,825 23,581,950 19,128,728 18,674,888

Fixed Assets

Property, plant and equipment 1,308,775 1,363,898 1,205,788 1,170,183 1,077,597

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 + 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠)

2

2,672,673

2

2,569,686

2

2,375,971

2

2,247,780

2

2,192,737

2

= 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑭𝒊𝒙𝒆𝒅 𝑨𝒔𝒔𝒆𝒕𝒔 1,336,337 1,284,843 1,187,986 1,123,890 1,096,369

Fixed Assets Turnover

𝑁𝑒𝑡 𝑅𝑒𝑣𝑒𝑛𝑢𝑒

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠

27,574,770

1,336,337

25,370,825

1,284,843

23,581,950

1,187,986

19,128,728

1,123,890

18,674,888

1,096,369

= 𝑭𝒊𝒙𝒆𝒅 𝑨𝒔𝒔𝒆𝒕𝒔 𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓 20.63 19.75 19.85 17.02 17.03

TOTAL ASSET TURNOVER 2014 (RM ‘000)

2013 (RM ‘000)

2012 (RM ‘000)

2011 (RM ‘000)

2010 (RM ‘000)

Net Revenue

Operating revenue 20,506,870 18,723,034 17,346,458 13,588,308 13,280,253

(+) Interest Income 13,123,548 11,744,776 11,194,494 9,194,938 8,555,239

(-) Interest Expense (6,055,648) (5,096,985) (4,959,002) (3,654,518) (3,160,604)

Total Net Revenue 27,574,770 25,370,825 23,581,950 19,128,728 18,674,888

Assets

Cash and short-term funds 34,778,324 29,320,984 23,153,242 25,803,796 19,403,616

Deposits and placements with financial institutions

15,811,015 15,723,864 10,039,999 7,644,471 7,098,198

Financial assets purchased under resale agreements

3,625,291 20,558 650,314 - 371,237

Financial assets at fair value through profit or loss

9,425,390 5,546,091 10,719,937 2,884,895 2,241,928

Financial investments available-for-sale

73,630,705 64,532,797 47,366,309 40,262,042 37,446,841

Financial investments held-to-maturity

9,100,155 5,354,097 2,556,849 8,339,494 7,855,322

Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585

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Derivative assets 4,533,709 3,760,133 2,812,148 1,626,415 1,281,682

Other assets 6,488,988 5,319,437 2,713,063 1,420,365 3,832,316

Statutory deposits with central banks

7,576,028 7,327,996 6,888,916 4,313,116 1,932,981

Investment in subsidiaries 20,450,502 19,505,514 17,634,469 17,070,392 12,653,377

Interest in associates and joint ventures

451,518 451,518 456,512 454,412 418,700

Property, plant and equipment 1,308,775 1,363,898 1,205,788 1,170,183 1,077,597

Intangible assets 506,267 527,268 697,066 177,270 160,710

Deferred tax assets 348,350 1,053,598 810,015 920,837 1,148,176

Total Assets 452,559,458 397,779,032 342,556,673 293,660,532 248,392,266

MAYBANK 2010 (RM’000)

2011 (RM’000)

2012 (RM’000)

2013 (RM’000)

2014 (RM’000)

RETURN ON ASSETS (ROA)

(a) Net operating income 9,116,684 8,607,321 10,167,707 11,331,908 11,916,591

Total asset at current year(i) 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458

Total asset a year before(ii) 238,277,142 248,392,266 293,660,532 342,556,673 397,779,032

(b) Average total asset (( i+ii)/2) 243,334,704 271,026,399 318,108,603 370,167,853 425,169,245

ROA = (a/b) 0.037 0.032 0.032 0.031 0.028

RETURN ON COMMON EQUITY (ROCE)

(a) Net operating income 9,116,684 8,607,321 10,167,707 11,331,908 11,916,591

Common equity at the end of year(i) 25,256,824 27,998,403 36,895,307 40,499,772 46,172,805

Common equity at the beginning of year(ii)

22,510,444 25,256,824 29,634,456 36,895,307 40,499,772

(b) Average common equity (( i+ii)/2) 23,883,634 26,627,614 33,264,882 38,697,540 43,336,289

ROCE = (a/b) 0.382 0.323 0.306 0.293 0.275

RETURN ON DEPOSIT

(a) Net operating income 9,116,684 8,607,321 10,167,707 11,331,908 11,916,591

Deposit at current year :

Deposit from customers 175,379,741 201,465,408 237,402,079 273,670,380 306,938,972

Deposit and placement from financial Institution

22,929,822 31,441,675 29,198,776 37,582,577 47,500,184

Subtotal (i) 198,309,563 232,907,083 266,600,855 311,252,957 354,439,156

Deposit a year before :

Deposit from customers 163,452,930 175,379,741 201,465,408 237,402,079 273,670,380

Deposit and placement from financial Institution

30,121,916 22,929,822 31,441,675 29,198,776 37,582,577

Subtotal (ii) 193,574,846 198,309,563 232,907,083 266,600,855 311,252,957

(b) Average total deposit=((i+ii)/2) 195,942,205 215,608,323 249,753,969 288,926,906 332,846,057

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ROD = (a/b) 0.047 0.040 0.041 0.039 0.036

OPERATING PROFIT MARGIN

(a) Net operating income 9,116,684 8,607,321 10,167,707 11,331,908 11,916,591

(b) Operating revenue 13,280,253 13,588,308 17,346,458 18,723,034 20,506,870

Operating profit margin = (a/b) 0.686 0.633 0.586 0.605 0.581

NET PROFIT MARGIN

(a) Net profit 3,552,685 3,358,699 4,305,904 4,885,616 5,903,015

(b) Net revenue 18,674,888 19,128,728 23,581,950 25,370,825 27,574,770

Net profit margin =((a/b)/100) 0.002 0.002 0.002 0.002 0.002

NET INCOME TO AVERAGE ASSET

(a) Net profit 3,552,685 3,358,699 4,305,904 4,885,616 5,903,015

Total asset at current year(i) 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458

Total asset a year before(ii) 238,277,142 248,392,266 293,660,532 342,556,673 397,779,032

(b) Average total asset ((i+ii)/2) 243,334,704 271,026,399 318,108,603 370,167,853 425,169,245

Net income to average = (a/b) 0.015 0.012 0.014 0.013 0.014

PROFIT MARGIN

Interest income (i) 8,555,239 9,194,938 11,194,494 11,744,776 13,123,548

Interest expense (ii) 3,160,604 3,654,518 4,959,002 5,096,985 6,055,648

(a) subtotal = (i-ii) 5,394,635 5,540,420 6,235,492 6,647,791 7,067,900

(b) total asset 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458

Profit margin = (a/b) 0.022 0.019 0.018 0.017 0.016

EARNING ASSETS TO TOTAL ASSETS

Earning asset at current year:-

Loans, advances and financing (i) 151,469,585 181,572,844 214,852,046 237,971,279 264,524,441

Derivative assets (ii) 1,281,682 1,626,415 2,812,148 3,760,133 4,533,709

Earning asset a year before:-

Loans, advances and financing (iii) 144,431,798 151,469,585 181,572,844 214,852,046 237,971,279

Derivative assets(iV) 929,904 1,281,682 1,626,415 2,812,148 3,760,133

(a) Average earning asset= ((i+ii+iii+iV)/2)

149,056,485 167,975,263 200,431,727 229,697,803 255,394,781

Total asset at current year(V) 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458

Total asset a year before(Vi) 238,277,142 248,392,266 293,660,532 342,556,673 397,779,032

(b) Average total asset= ((V+Vi)/2) 243,334,704 271,026,399 318,108,603 370,167,853 425,169,245

Earning assets to total assets = (a/b) 0.613 0.620 0.630 0.621 0.601

ALLOWANCES FOR FINANCING

(a) Allowance for loans 309,867 2,196 268,844 502,144 224,115

Total asset at current year(i) 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458

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LEVERAGE RATIO 2014 (RM ‘000)

2013 (RM ‘000)

2012 (RM ‘000)

2011 (RM ‘000)

2010 (RM ‘000)

Liabilities

Deposits from customers 306,938,972 273,670,380 237,402,079 201,465,408 175,379,741

Deposits and placements from financial institutions

47,500,184 37,582,577 29,198,776 31,441,675 22,929,822

Obligations on financial assets sold under repurchase agreements

3,166,372 4,300,055 - 373,562 -

Bills and acceptances payable 1,187,310 1,442,612 1,553,312 7,115,673 2,898,997

Derivative liabilities 5,173,575 3,632,464 2,243,617 1,446,311 1,291,498

Other liabilities 8,789,557 9,485,349 8,645,423 4,240,156 3,555,869

Recourse obligation on loans and financing sold to Cagamas

1,058,860 656,293 687,793 528,285 649,977

Provision for taxation and zakat

275,373 578,100 758,446 - 283,353

Borrowings 13,846,812 9,318,389 7,382,719 3,420,499 2,098,317

Subordinated obligations 12,264,578 10,404,418 11,638,850 9,509,786 8,069,116

Capital securities 6,185,060 6,208,623 6,150,351 6,120,774 5,978,752

Total Liabilities 406,386,653 357,279,260 305,661,366 265,662,129 223,135,442

Common Equity

Share capital 9,319,030 8,862,079 8,440,046 7,478,206 7,077,983

Share premium 22,747,922 19,030,227 15,639,646 - -

(-) Shares held-in-trust (113,463) (107,248) (102,405) - -

Retained profits 3,600,804 3,478,214 4,179,482 - -

Reserves 10,618,512 9,236,500 8,738,538 20,520,197 18,178,841

Total common equity 46,172,805 40,499,772 36,895,307 27,998,403 25,256,824

Leverage Ratio

𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑚𝑚𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦

406,386,653

46,172,805

357,279,260

40,499,772

305,661,366

36,895,307

265,662,129

27,998,403

223,135,442

25,256,824

= 𝑳𝒆𝒗𝒆𝒓𝒂𝒈𝒆 𝑹𝒂𝒕𝒊𝒐 8.80 8.82 8.28 9.49 8.83

LOAN TO DEPOSIT RATIO 2014 (RM ‘000)

2013 (RM ‘000)

2012 (RM ‘000)

2011 (RM ‘000)

2010 (RM ‘000)

Financing/Loans

Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585

Total asset a year before(ii) 238,277,142 248,392,266 293,660,532 342,556,673 397,779,032

(b) Average total asset ((i+ii)/2) 243,334,704 271,026,399 318,108,603 370,167,853 425,169,245

allowances for financing =( a/b) 0.001 0.000 0.001 0.001 0.001

Page 17: Financial Analysis on Maybank and CIMB (Bank Management)

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𝑇𝑜𝑡𝑎𝑙 𝐿𝑜𝑎𝑛𝑠 (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 + 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠)

2

502,495,720

2

452,823,325

2

396,424,890

2

333,042,429

2

295,901,380

2

= 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑻𝒐𝒕𝒂𝒍 𝑳𝒐𝒂𝒏𝒔 251,247,860 226,411,663 198,212,445 166,521,215 147,950,690

Deposits

Deposits from customers 306,938,972 273,670,380 237,402,079 201,465,408 175,379,741

Deposits and placements from financial institutions

47,500,184 37,582,577 29,198,776 31,441,675 22,929,822

Total deposits 354,439,156 311,252,957 266,600,855 232,907,083 198,309,563

𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑜𝑠𝑖𝑡𝑠 (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 + 𝑃𝑟𝑒𝑣)

2

665,692,113

2

577,853,812

2

499,507,938

2

431,216,646

2

391,884,408

2

= 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑻𝒐𝒕𝒂𝒍 𝑫𝒆𝒑𝒐𝒔𝒊𝒕𝒔 332,846,057 288,926,906 249,753,969 215,608,323 195,942,204

Financing/Loans To Deposits Ratio

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔/𝐿𝑜𝑎𝑛𝑠

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑜𝑠𝑖𝑡𝑠

251,247,860

332,846,057

226,411,663

288,926,906

198,212,445

249,753,969

166,521,215

215,608,323

147,950,690

195,942,204

= Financing/Loans To Deposits Ratio

0.75 0.78 0.79 0.77 0.76

NON-CURRENT FINANCING/LOANS TO TOTAL

FINANCING/LOANS RATIO

2014 (RM ‘000)

2013 (RM ‘000)

2012 (RM ‘000)

2011 (RM ‘000)

2010 (RM ‘000)

Non-current Financing/Loans

Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585

Total Non-current Financing/Loans

264,524,441 237,971,279 214,852,046 181,572,844 151,469,585

Financing/Loans

Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585

Total Financing/Loans 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585

Non-Current Financing/Loans To Total Financing/Loans Ratio

𝑇𝑜𝑡𝑎𝑙 𝑁𝑜𝑛 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔

𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔/𝐿𝑜𝑎𝑛𝑠

264,524,441

264,524,441

237,971,279

237,971,279

214,852,046

214,852,046

181,572,844

181,572,844

151,469,585

151,469,585

= Non-Current Financing/Loans To Total

Financing/Loans Ratio

1 1 1 1 1

Page 18: Financial Analysis on Maybank and CIMB (Bank Management)

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ALLOWANCE FOR FINANCING/ LOAN LOSSES TO NON-CURRENT

FINANCING/LOANS RATIO

2014 (RM ‘000)

2013 (RM ‘000)

2012 (RM ‘000)

2011 (RM ‘000)

2010 (RM ‘000)

Allowance for Financing/Loan Losses

(Allowances for)/writeback of impairment losses on loans, advances, financing and other debts

224,115

502,144

268,844

2,196

309,867

Total allowance for financing/loan losses

224,115 502,144 268,844 2,196 309,867

Non-current Financing/Loans

Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585

Total non-current financing/loans 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585

Allowance For Financing/Loan Losses To Non-Current Financing/Loans Ratio

𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒 𝑓𝑜𝑟 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔 𝐿𝑜𝑠𝑠𝑒𝑠

𝑇𝑜𝑡𝑎𝑙 𝑁𝑜𝑛 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔

224,115

264,524,441

502,144

237,971,279

268,844

214,852,046

2,196

181,572,844

309,867

151,469,585

= Allowance for financing/loan losses to non-current financing/loans ratio

0.00085

0.00211

0.00125

0.00001

0.00201

Page 19: Financial Analysis on Maybank and CIMB (Bank Management)

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CIMB

CIMB 2010 2011 2012 2013 2014

RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000

RETURN ON ASSETS (ROA)

(a) Net operating income 2,365,868 3,186,293 3,105,142 2,729,015 3,033,172

Total asset at current year(i) 170823022 186,545,248 206,795,324 234,603,951 264,948,946

Total asset a year before(ii) 160,221,618 170,823,022 186,722,227 206,795,324 234,603,951

(b) Average total asset ((i+ii)/2) 165,522,320 178,684,135 196,758,776 220,699,638 249,776,449

ROA = (a/b) 0.0143 0.0178 0.0158 0.0124 0.0121

RETURN ON COMMON EQUITY (ROCE)

(a) Net operating income 2,365,868 3,186,293 3,105,142 2,729,015 3,033,172

Common equity at the end of year(i)

14,828,441 15,741,124 17,136,577 18,247,660 20,021,480

Common equity at the beg. of year(ii)

15,741,124 16,998,847 18,247,660 20,021,480 24,090,741

(b) Average common equity (( i+ii)/2)

15284782.5 16,369,986 17,692,119 19,134,570 22,056,111

ROCE = (a/b) 0.1548 0.1946 0.1755 0.1426 0.1375

RETURN ON DEPOSIT

(a) Net operating income 2,365,868 3,186,293 3,105,142 2,729,015 3,033,172

Deposit at current year :

Deposit from customers 121,553,069 131,569,745 141,770,859 156,115,031 174,320,567

Deposit and placement from fin.Inst.

18,468,654 18,519,277 24,868,563 30,417,708 31,538,303

Subtotal (i) 140,021,723 150,089,022 166,639,422 186,532,739 205,858,870

Deposit a year before :

Deposit from customers 114,449,911 121,533,069 131,569,745 145,415,162 156,115,031

deposits and placement from fin.Inst.

17,633,397 18,468,654 18,519,277 18,988,395 30,417,708

Subtotal (ii) 132,083,308 140,001,723 150,089,022 164,403,557 186,532,739

(b) Average total deposit=((i+ii)/2)

136,052,516 145,045,373 158,364,222 175,468,148 196,195,805

ROD = (a/b) 0.0174 0.0220 0.0196 0.0156 0.0155

OPERATING PROFIT MARGIN

(a) Net operating income 2,365,868 3,186,293 3,105,142 2,729,015 3,033,172

(b) Operating revenue 3,915,545 3,926,644 4,168,643 4,583,300 5,082,718

Operating profit margin = (a/b) 0.6042 0.8115 0.7449 0.5954 0.5968

NET PROFIT MARGIN

(a) Net profit 1,912,556 2,674,531 2,489,372 2,141,950 2,477,630

(b) Net revenue 1,690,764 2,462,513 2,263,439 2,042,067 1,972,928

Page 20: Financial Analysis on Maybank and CIMB (Bank Management)

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Net profit margin =((a/b)/100 0.0113 0.0109 0.0110 0.0105 0.0126

NET INCOME TO AVERAGE ASSET

(a) Net profit 1,912,556 2,674,531 2,489,372 2,141,950 2,477,630

Total asset at current year(i) 170,823,022 186,545,248 206,795,324 234,603,951 264,948,946

Total asset a year before(ii) 160,221,618 170,823,022 186,722,227 206,795,324 234,603,951

(b) Average total asset ((i+ii)/2) 165522320 178,684,135 196,758,776 220,699,638 249,776,449

Net income to average = (a/b) 0.0116 0.0150 0.0127 0.0097 0.0099

PROFIT MARGIN

Interest income (i) 6,419,587 7,076,636 7,613,878 8,387,957 9,070,573

Interest expense (ii) 2,504,042 3,149,992 3,445,235 3,804,657 3,987,855

(a) subtotal = (i-ii) 3,915,545 3,926,644 4,168,643 4,583,300 5,082,718

(b) total asset 170,823,022 186,545,248 206,795,324 234,603,951 264,948,946

Profit margin = (a/b) 0.0229 0.0210 0.0202 0.0195 0.0192

EARNING ASSETS TO TOTAL ASSETS

Earning asset at current year:-

Loans, advances and financing (i)

90,816,549 99,222,358 108,086,083 132,833,310 150,874,563

Derivative assets (ii) 3,262,534 4,080,924 3,945,552 3,909,190 5,999,209

Earning asset a year before:-

Loans, advances and financing (iii)

84,456,367 90,816,549 99,222,358 108,086,083 132,833,310

Derivative assets(iV) 3,203,614 3,262,534 4,080,924 3,945,552 3,909,190

(a) Average earning asset= ((i+ii+iii+iV)/2)

90,869,532 98,691,183 107,667,459 124,387,068 146,808,136

Total asset at current year(V) 170,823,022 186,545,248 206,795,324 234,603,951 264,948,946

Total asset a year before(Vi) 160,221,618 170,823,022 186,722,227 206,795,324 234,603,951

(b) Average total asset= ((V+Vi)/2)

165,522,320 178,684,135 196,758,776 220,699,638 249,776,449

Earning assets to total assets = (a/b)

0.5490 0.5523 0.5472 0.5636 0.5878

ALLOWANCES FOR FINANCING

(a) Allowances for loan/financing losses

275,433 233,275 48,202 231,871 430,894

Total asset at current year(i) 170,823,022 186,545,248 206,795,324 234,603,951 264,948,946

Total asset a year before(ii) 160,221,618 170,823,022 186,722,227 206,795,324 234,603,951

(b) Average total asset ((i+ii)/2) 165,522,320 178,684,135 196,758,776 220,699,638 249,776,449

allowances for financing =( a/b) 0.0017 0.0013 0.0002 0.0011 0.0017

CIMB BERHAD 2010-2014

LIQUIDITY 2010 2011 2012 2013 2014

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RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000

CURRENT RATIO

A)Cash/Deposits in other Banks Investment in Other Bank

16,083,982 10,848,583 10,708,711 7,950,214 5,383,015

B) Securities/Financial Assets 3,262,534 4,080,924 3,945,552 3,909,190 5,999,209

C) Current Liabilities 146,150,092

158,291,875 172,884,821

197,649,212

221,833,664

CA=(A+B)/C 13% 9% 8% 6% 5%

FIXED ASSETS TURNOVER

A) NET REVENUE 5,617,706 6,408,296 6,451,552 6,648,366 7,106,135

B) AVERAGE FIXED ASSETS 559,276 514,643 497,498 507,253 504,671

FAT=A/B 10.0446 12.4519 12.9680 13.1066 14.0807

TOTAL ASSET TURNOVER

A) NET REVENUE 5,617,706 6,408,296 6,451,552 6,648,366 7,106,135

B) AVERAGE TOTAL ASSETS 165,522,320

178,684,135 196,758,776

220,699,638

249,776,449

TAT=A/B 3% 4% 3% 3% 3%

FINANCIAL LEVERAGE

LEVERAGE RATIO

A) TOTAL LIABILITIES 155,081,898

169,585,650 188,547,664

214,582,471

240,858,205

B) TOTAL COMMON EQUITY 15,741,124 17,136,577 18,247,660 20,021,480 24,090,741

LR=A/B 9.8520 9.8961 10.3327 10.7176 9.9980

FINANCING/LOANS TO DEPOSITS RATIO

A) AVERAGE TOTAL FINANCING/LOANS

87636458 50369454 103654221 120459696 141853937

B) AVERAGE TOTAL DEPOSITS 651,077,116

143,255,373 145,055,373

175,333,148

196,195,804

LOAN TO DEPOSIT RATIO= A/B

0.1346 0.3516 0.7146 0.6870 0.7230

ASSET QUALITY

Page 22: Financial Analysis on Maybank and CIMB (Bank Management)

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NON-CURRENT FINANCING/LOANS TO TOTAL FINANCING/LOANS RATIO

A) TOTAL NON CURRENT FINANCING/ LOANS

1,905,843 1,631,450 1,710,386 2,546,780 5,263,421

B) TOTAL FINANCING /LOANS 90816549 99222358 108086083 132833310 150874563

RATIO= A/B 2.10% 1.64% 1.58% 1.92% 3.49%

ALLOWANCE FOR FINANCING/LOAN LOSSES TO NON-CURRENT FINANCING/LOANS RATIO

A) ALLOWANCES FOR FINANCING/LOAN LOSSES

275,433 233,275 48,202 231,871 430,894

B) TOTAL NON-CURRENT FINANCING/LOANS

1,905,843 1,631,450 1,710,386 2,546,780 5,263,421

RATIO= A/B 14.45% 14.30% 2.82% 9.10% 8.19%