analysis of maybank berhad slide present maf630
DESCRIPTION
this slide for MAF630 purposeTRANSCRIPT
Board : MAIN-MKTSector: FINANCEStock Code: 1155
Malayan Banking Berhad (3813-K)
History and innovation of Maybank
• Incorporated in 31 May 1960• Begin operation on 12 September 1960• Begin first overseas branch in Brunei
Darussalam in 1960• 12 February 1962, Maybank listed on KLSE• Become first bank to introduce rural credit
scheme in 1974• First Malaysia to set up ATMs in Malaysia in
1981
• First Malaysia bank to open a branch in Shanghai, People’s Republic of China.
• First to launched Internet Banking kiosk in Malaysia called Maybank2u.com Internet Kiosk.
• Become first bank to achieve more than USD100 billion in total asset size and USD1 billion in profit after tax in 2010.
Maybank Structure
FINANCIAL ANALYSIS
Profitability Ratio
• Based on Annual Report 2012
Ratio Formula 2012 2011
Operating profit margin
EBIT 7,895/27,[email protected]%
3,571/12,[email protected]%
Sales
Net profit margin Net income available
5,745/27,[email protected]%
2,587/12,[email protected]%
Sales
Return on equity Net income available
16.0% 15.2%
Total equity
Market Ratio
• Based on Annual Report 2012
Ratio Formula 2012 2011
Earnings per share EBT 72.7 sen 34.5 sen
Ordinary share units
Price earnings ratio Market Price per Share
9.20/0.727=12.65 times
8.58/0.345=24.87 times
EPS
Maybank Share Performance
Financial Highlight
Financial Highlight for 1st Quarter 2013
• Unaudited financial statement
• Unaudited financial statement
Maybank Group Efficiency2012(RM million) 2011(RM million)
Operating revenue 27,532,461 12,892,202
Inventories - -
Receivables - -
Payables - -
Local competition
Maybank Competition
CIMB Bank
RHB bank
Public Bank
Competitors AnalysisStock Market Capitalisation EPS ROE
CIMB 62145.34 0.584 15.20
MAYBANK 90639.938 0.727 13.60
PBBANK 59972.103 1.105 21.56
RHBCAP 21549.957 0.689 13.13
• RM billion
Company Influence
• Opportunities• Strong Market in
ASEAN • Expansion Abroad
• Threats• Competition from
CIMB and PBBANK
• Weakness• Decreasing Net
Interest and Slow Loan Growth
• Same Markets Leadership
• Strengths• Largest Market
Capital• Most Valuable
Company in Bursa
Internal Internal
ExternalExternal
News and Issue
• Dato’ Sri Abdul Wahid Omar, the President & CEO of Maybank has been appointed as Minister in Prime Minister’s Department (press statement of Maybank on 15 May 2013)
• The unclear position for CEO replacing Dato’ Sri Abdul Wahid Omar. The announce will be in this month or earlier next month(NST,13 June 2013).
• Rank by Bloomberg as the world’s 13th strongest bank (AR,2012)
verdict
• The strongest of Maybank growth inside and outside Malaysia will ensure the price of share will go up.
• Maybank also show strength outside Malaysia as the profit for international operation is growing to 30.2% of group profit(AR,2012). The opening of new branch in Laos will also increase Maybank profitability.
• The announcement of new CEO might also increase the share price.
• We recommend to HOLD Maybank share as the price will expected to increase in the near future by 12%.