Malayan Banking Berhad (Maybank Bhd) is Malaysia’s biggest bank in terms of market cap, operating in 2,400 branches in 20 countries in the ASEAN region.
Last update: 09.02.2019
Dividends (4/5): ⭐ ⭐ ⭐ ⭐
Value (4/5): ⭐ ⭐ ⭐ ⭐
Financials (4/5): ⭐ ⭐ ⭐ ⭐
Growth (4/5): ⭐ ⭐ ⭐ ⭐
Business (4/5): ⭐ ⭐ ⭐ ⭐
2018 Geographical Statistics
|Countries & Region||Operating Revenue||Profit Before Tax|
Being one of the biggest banks in South East Asia, Maybank Berhad derives a majority of its revenue and profits from its home base Malaysia. It also has a strong presence in Singapore and Indonesia.
Maybank Berhad has proven to be able to consistently generate more revenue year in year out. Its profit has also shown a steady increase. Even though its a gigantic company by market cap, Maybank Bhd is still able to grow, creating more value to its shareholders.
Return on Equity came down between the year 2012 till 2016 but slowly to trend back up. During 2013 to 2015, the Basel Committee on Banking Supervision passed a set of financial regulations known as Basel III, intended to strengthen a bank’s capital requirement by increasing liquidity and decreasing leverage.
Hence, we notice that retained profits of Maybank Bhd grew significantly since the year 2013. Due to the increase of equity more than profits generated, ROE trended lower during the mentioned few years.
2018 Operating Revenue Breakdown
A bank’s primary business is to earn interest from its borrowers. The same goes for Maybank Berhad. From the latest operating revenue breakdown, interest income contributes to a huge portion of Maybank Berhad’s revenue.
Apart from earning interest by lending money, Maybank Berhad is also active in investments and also the insurance sector.
Maybank has been generating steady growth YoY. As the biggest lender in Malaysia, Maybank Berhad not only commands a big market share in loans and mortgages, it has also ventured into multiple revenue streams such as Islamic Banking and Insurance. Profit has also increased alongside the growing revenue
Having multiple revenue segments provide Maybank Berhad more opportunities and synergism in growing its revenues year by year.
|Year||Assets (RM’000)||Liabilities (RM’000)||Equities (RM’000)||Current Ratio|
2018 Capital Adequacy Ratio
|Tier 1 Capital Ratio||15.02%|
|Total Capital Ratio||19.02%|
In the year 2018, Maybank Bhd has Assets of RM807 billion, liabilities of RM729 billion and Equities of RM75 million. The current ratio is stable at 1.09, and total Capital Ratio is at 19.02%, much more than the safety limit set by Bank Negara Malaysia.
Operating Cash Flow & Dividends Paid Out
Source: MAYBANK BHD ANNUAL REPORT
On top of increasing revenues and profit, Maybank Berhad also has a good track record of improving its operational cash flow YoY. Dividends paid out in the form of cash is also on an increasing trend. Maybank Bhd may be a big cap stock, but it is not true to say that big-cap companies do not grow.
Maybank Bhd has proven time to time it is able to reward shareholders with consistent dividends at pretty attractive yields (~5.7% trailing dividend yield per annum). The bank’s business upside includes a future potential contribution from Islamic Banking and also its Insurance segment, not to mention its potential growth outside of the Malaysia market in another ASEAN region. Of course, do remember to check the Maybank’s key financial ratios and asset quality to ensure its financials remain healthy.
Banks earn a vast amount of their earnings via charging interests to borrowers. Maybank having a high CASA ratio (>35%) compared to its competitors would surely benefit and ride along with the growth of the Malaysian economy.
Like our Malayan Banking Berhad analysis? Check out our CIMB Group Holdings Berhad analysis here