Showing posts with label mbb. Show all posts
Showing posts with label mbb. Show all posts

Monday 12 June 2017

Mergers and Acquisitions: Which banks are next?

Saturday, 10 June 2017

After the RHB-AMMB proposed merger, talk of more M&As in the sector has resurfaced
WITH the ongoing merger talks between RHB Bank Bhd and AMMB Holdings Bhd, coupled with Bank Negara’s push for the institutionalisation of banks, the question of which banks will be the next merger and acquisitions (M&A) candidates has resurfaced.
Going by their size as the smallest banks in the country, could Alliance Bank Malaysia Bhd and Affin Bank Bhd be next?
This is the question that is making the rounds in banking circles.
According to banking analysts, there is a possibility of Alliance merging with Affin as they are very small banks.
“They will eventually feel the pressure to merge, given the market forces,” says one analyst.
Also, Affin is controlled by the Armed Forces Fund Board (LTAT), which is known to want to cast its net wider in the banking field.
“Additionally, Affin’s recent financial results demonstrate that its transformation plan is working out, while Alliance is a well-managed outfit and is doing well in its niche segment of small and medium enterprises. It makes sense for both entities to merge,” he adds.
However, recall, three years ago, Affin’s parent Affin Holdings Bhd had acquired Hwang-DBS Investment Bhd for RM1.36bil, edging out AMMB Holdings from the deal.
While the acquisition has given Affin a platform to carve its own niche with a stronger market presence in investment banking, some reckon that the return on the investment is still at the low end.
Then, there is the factor of Bank of East Asia Ltd (BEA), which is Affin’s second-largest shareholder with a 23.5% block.
image: http://www.thestar.com.my/business/business-news/2017/06/10/which-banks-are-next/~/media/26a0e83e176048c7b2fc9ddedab03cf2.ashx?h=305&w=500
 
Any M&A involving Affin would have to get the nod from the Hong Kong-listed BEA, where tycoon Tan Sri Quek Leng Chan has a strategic 14% stake.
In Alliance’s case, there were some changes in the shareholding structure of Alliance Financial Group Bhd (AFG)last year – the bank’s parent company – which suggested that there could be M&A-related developments for the bank.
Recall that last year, three individuals – financial corporate adviser Seow Lun Hoo, Singapore property tycoon Ong Beng Seng and one Ong Tiong Sin, who owns Singapore-based private equity firm RRJ Capital, had bought into Langkah Bahagia Sdn Bhd from Lutfiah Ismail, an associate of former finance minister Tun Daim Zainuddin.
The trio purchased the entire equity interest in Langkah Bahagia, which previously owned a 51% stake in Vertical Theme Sdn Bhd, the single largest shareholder in AFG with a 29.5% stake.
The remaining 49% stake in Vertical Theme is controlled by Duxton Investments Pte Ltd, which, in turn, is owned by Temasek Holdings Pte Ltd, Singapore’s sovereign wealth fund.
Via Vertical Theme, Temasek effectively has a 14.2% indirect stake in the financial group and thought to have management control of AFG.
It is to be noted that yesterday, Bank Negara approved AFG’s earlier proposed reorganisation, which included Alliance Bank taking over the listing status of AFG.
Meanwhile, industry observers reckon that the three individuals, who are well-known in corporate circles, are parties friendly to Temasek.
Beng Seng, who owns the Four Seasons and Hilton hotels in Singapore had previously joined hands with Temasek to buy up properties in London.
Nevertheless, owning stakes in banks has become all the more challenging, given that financial institutions are making frequent capital calls to boost their capital needs in order to meet international regulatory standards.
image: http://www.thestar.com.my/business/business-news/2017/06/10/which-banks-are-next/~/media/3227d904947e49678e6af34ad66a8a56.ashx?h=516&w=500
 
Capital-raising exercises are always an issue, especially for individuals. In this respect, the view is that because three individuals hold strategic stakes in AFG, it is ripe for a merger.
And a good fit could be Affin, which is small but has a strong institutional shareholder in LTAT.
“Whether this pans out is left to be seen. Because of the RHB-AMMB merger, all possible match-ups are coming up again,” says an investment banker.
There are eight local banking groups in Malaysia, namely, Malayan Banking Bhd (Maybank), CIMB Group Holdings Bhd, Public Bank BhdHong Leong Bank Bhd (HLB), RHB Bank Bhd, AmBank Group, Affin Holdings and Alliance Bank Bhd.
Of the groups, Maybank, thanks to its strong capital levels due to its recent dividend reinvestment plan, has the financial war chest to initiate an M&A.
Public Bank and HLB remain the only two that have yet to court or be courted in recent times. In the case of Public Bank, its high valuations make it difficult for it to be swallowed up. Based on its last traded price of RM20.38 per share, Public Bank is trading at a massive 2.29 times price-to-book.
“It’s going to be difficult for any one bank to swallow Public Bank at its current valuations. One scenario could be to break down the units within the bank just like what happened between Affin and Hwang-DBS and sell these one by one.”
However, given its financial strength, Public Bank is likely to be the predator rather than the prey.
As for HLB, it last courted and bought EON Bank for RM5.1bil in 2010 after a long shareholder battle, valuing the deal at 1.4 times price-to-book.
Move to institutionalise
It is no secret that Bank Negara, especially in recent years, has sought to limit the ownership of individuals in local banks.
“As banks become bigger, there would be greater demand for capital that may not be met by individual owners... institutionalising the shareholdings of banks is seen as the right way to go, as is the case of mature markets like Singapore and Hong Kong,” says a banker.
Under Bank Negara’s Securities Industry (Reporting of Substantial Shareholding) Regulation 1998, individuals are not allowed to own more than a 10% stake each in a financial institution.In the case that happens, they are required to get approval from the central bank.
However, there is an exception or what is termed as the “grandfather rule” in the banking sector.
This is the unwritten rule that was first applied to the three seasoned bankers of Malaysia – Tan Sri Azman Hashim of AMMB Holdings, Quek of Hong Leong Financial Group Bhd and Public Bank’s Tan Sri Teh Hong Piow.
The individuals are allowed to hold more than a 10% stake in a bank, as their personal stakes in the respective banks were acquired before the Banking and Financial Institution Act 1989 or Bafia – the Financial Services Act 2013’s predecessor – was implemented in 1989.
In the case of the RHB-AMMB merger, if it materialises, analysts believe that Azman’s current 12.97% stake in AMMB will be diluted to about 6% in the enlarged entity, assuming he stays on as a shareholder.
Meanwhile, in terms of domestic institutions owning stakes in local banks, the Employees Provident Fund currently has a large stake of 40.7% in RHB Bank and is a substantial shareholder in all the other banks in Malaysia.
Permodalan Nasional Bhd, the country’s largest fund manager, is a controlling shareholder in Maybank with 48%, while LTAT owns a 35.4% direct stake in Affin Holdings.
Notably, Affin Holdings is working on a restructuring plan to transfer its listing status to Affin Bank.
In terms of the Islamic banks, pilgrim fund Lembaga Tabung Haji controls 52.5% of BIMB Holdings Bhd, which owns Bank Islam (M) Bhd.
Other government-linked investment funds, including the Retirement Fund Inc or KWAP, also have a presence in local banks.
Valuation issues
It is unlikely that banking mergers will take place at historical valuations of the past.
In a recent note to clients, CIMB Research says it believes that the price-to-book value for future banking M&As will be significantly lower than the historical average, given the decline in banks’ return on equity ratios arising from higher capital requirements under new financial regulations and thinning net interest margins.
Under the RHB-AMMB merger, RHB has proposed an all-share deal in order to acquire the assets and liabilities of AMMB at a potential pricing based on AMMB’s book value of one time. Gone are the days when banking transactions were done at a book value of more than three times.
The norm is probably closer to 1.4 times book value now. A year ago, most financial institutions here were trading at less than their book values.
Elsewhere in Europe, banks are still trading at less than book values, making Asean banks, which have seen their share prices rise this year, unattractive in terms of valuations.
As Europe’s economy is recovering, it is unlikely that foreigners would fork out hefty premiums for a stake in a bank that is based in the Asean region and which valuations are relatively higher when they can do the same for less in Europe.
Taking this into consideration, the only mergers in the local banking scene, going forward, are likely to be between domestic players. And that is what the central bank would like to see.
The question now is how long will the market have to wait before another merger comes into play. That could reignite an M&A theme in the banking industry – something that the local stock market can very well do with.

Read more at http://www.thestar.com.my/business/business-news/2017/06/10/which-banks-are-next/#RmmWIhuqLMxKcqoD.99

Monday 25 March 2013

CIMB Research maintains Outperform on Maybank, target price RM10.80


CIMB Research maintains Outperform on Maybank, target price RM10.80

Written by theedgemalaysia.com
Wednesday, 20 March 2013

KUALA LUMPUR (March 20): CIMB Research has maintained its
Outperform rating on MALAYAN BANKING BHD [] at RM9.07 with a
target price of RM10.80 and said despite being one of the largest Islamic
banking players, Maybank Islamic still saw ample opportunities for
growth locally and abroad.

In a note March 19, the research house said Indonesia was still
underpenetrated and there were opportunities to expand into South Asia
or even HK/China.

“We see the regional expansion of its Islamic banking (IB) business as a
long-term catalyst for Maybank as it takes time to penetrate emerging
markets.

“The near-term challenges include the lack of infrastructure and legal
framework for IB. Maybank's DDM-based target price (11.8% COE; 5%
LT growth) is intact. Maintain Outperform given the positive growth
prospects in the region,” it said.


http://www.theedgemalaysia.com/business-news/233452-cimb-research-maintains-outperform-on-maybank-target-price-rm1080.html

Sunday 21 October 2012

Maybank quashes Thai bank bid speculation

Maybank quashes Thai bank bid speculation
Published: 2012/10/10


KUALA LUMPUR: Malayan Banking Bhd (Maybank) today clarified that its private placement exercise on Monday was not meant for a possible bid for Bank of Ayudhya, quashing speculation that it may be keen to bid for a stake in the Thai bank.

In an email statement to Bernama today, Maybank reiterated that the private placement exercise was a proactive move to boost its equity capital ahead of the implementation of the Basel III capital framework.

The book-building process was also to support the bank's growth objectives particularly in relation to the rapid expansion of its business in Indonesia, Philippines and other regional markets.

On Monday, the bank embarked on a private placement exercise to raise RM3.66 billion through the issuance of 412 million new Maybank shares at an issue price of RM8.88 per placement share.


The new share issuance represented 4.98 per cent of the enlarged issued and paid-up capital of the bank as at Sept 30, 2012. 

"Maybank also wishes to clarify that Permodalan Nasional Bhd (PNB) did not participate in the private placement. 

"PNB does not fulfill the waiver criteria by Bursa Malaysia Securities that allow major shareholdres of the company to participate in the private placement by virtue of their representation on the board of Maybank," it said. 

Maybank closed unchanged at RM8.96 today. -- BERNAMA 
SRH SRH NN

Read more: Maybank quashes Thai bank bid speculation http://www.btimes.com.my/Current_News/BTIMES/articles/20121010195048/Article/index_html#ixzz29t01tMLO

Banks unlikely to raise capital

Wednesday October 10, 2012


By YVONNE TAN

PETALING JAYA: Banks in Malaysia are already well-capitalised and are unlikely to engage in capital raising activities in the near term unless they are looking at significant outlay in that time frame, said banking analysts.
In the case of Malayan Banking Bhd (Maybank) which recently raised a record RM3.66bil via a private placement exercise, the bank was priming itself to expand its current business in the region, a banking analyst said.
It is understood that via a conference call with analysts yesterday, Maybank said that it was looking to strengthen its current businesses in the region, including those in Singapore and Indonesia and that it was not looking at any merger and acquisition (M&A) activity for now as previously speculated.
“We believe that most banks in Malaysia are unlikely to engage in capital raising activities in the near term given that they are well capitalised to meet the Basel III requirement, unless they foresee that they may need capital for something else.
“We do anticipate that most banks will be in capital conservation mode to preserve their capital in order to meet the capital requirement under Basel III which will kick off next year,” Alliance Research banking analyst Cheah King Yoong said.
The core equity capital ratio, which measures the amount of capital a bank has, is generally above 7% for all banks in Malaysia and this is healthy enough to meet Basel 111 requirements, according to Cheah (see table).
The new Basel III rules require banks to hold top quality capital totalling 7% of their risk-bearing assets, from the current 2%.
Of the 7%, 4.5% comprises core tier-1 capital, which is made of shares and retained earnings, and an additional 2.5% of capital conservation buffer.
In a press release on Monday, Maybank said its private placement exercise was a move to boost its equity capital ahead of the implementation of the Basel III capital framework.
The funds raised would also support its growth objectives, particularly, in relation to the rapid expansion of its business in Indonesia, Philippines and other regional markets, it said.
Apart from the continued strength of the Malaysian domestic economy, Maybank was seeing tremendous opportunities in the economic growth across the Asean region, it added.

Maybank may be able to raise RM2.64bil via shares placement

Saturday October 6, 2012

Maybank may be able to raise RM2.64bil via shares placement


PETALING JAYA: Malayan Banking Bhd (Maybank) could potentially raise about RM2.64bil in a bid to further strengthen the bank's capital base and facilitate to meet more stringent capital requirement under the Basel III framework.
It intends to place out 300 million shares or 3.68% of its capital base at an indicative placement price of RM8.80 per share.
In filings with Bursa Malaysia, the country's largest bank said the assumption of the issue price was based on a 3% discount to the weighted average market price of Maybank shares for the five market days up to Oct 4 of RM9.0757.
Maybank says a possible upsize of the placement will depend on investors’ demand.Maybank says a possible upsize of the placement will depend on investors’ demand.
“The final number of new Maybank shares to be issued and the issue price of the shares will only be determined and announced after the completion of the book-building process, which will commence on Friday,” it said.
It said there is also possible upsize of the placement depending on investors' demand.
“The board is of the view that the proposed private placement is the most expeditious means of strengthening the company's capital base,” it said.
Maybank said the proceeds from the share sale, net of expenses relating to the exercise, would be utilised for working capital and general banking purpose.
The bank ended the day nine sen, or 1%, lower at RM8.99 yesterday.
In line with the world's adoption to Basel III, banks across the world would have to have a common format for disclosing the size and quality of their capital safety buffers from 2013 to help reassure investors they are stable.
It would also force banks to hold more capital and liquidity from 2013 onwards and will require banks to hold at least 7% of core Tier 1 capital in the form of retained earnings or pure equity.
Recently, Maybank had also succeeded in pricing its US$800mil (RM2.4bil) Regulation S Tier 2 Capital Subordinated Notes under its US$5bil multicurrency medium term note programme. The proceeds from the notes were also used for working capital, general banking and other corporate purposes, the bank had said earlier.
The subordinated notes wereexpected to qualify as Lower Tier 2 capital as per the Bank Negara's guidelines and be eligible for Basel III transitional treatment.
It is the largest regulation US dollar lower tier 2 capital issuance by anAsian Bank outside Japan and also marked the largest ever US dollar bond issuance by a Malaysian financial institution.
The said transaction was priced at 5-year US Treasury + 260 bps or a yield of 3.254% and will pay a coupon of 3.25% per annum, to be paid semi-annually in arrears.
The subordinated notes had a tenure of 10 years from the issue date on a 10 non-callable 5 basis, maturing on Sept 20, 2022.

Maybank falls on US$1.2b share offer

Monday, 08 October 2012 16:16

Maybank falls on US$1.2b share offer





Maybank falls on US$1.2b share offer
Shares of Malayan Banking Bhd (Maybank) dropped as much as 0.67 percent after the largest bank by assets in Malaysia said it would raise US$1.2 billion with a new share offer to fund growth in the country and its regional subsidiaries.
“This sounds logical to us as Maybank may be required to bring in capital if it is required to locally incorporate its Singapore subsidiary, which currently holds a qualified full banking licence,” HwangDBS Vickers Research said in a note on Monday.
Maybank said on Monday it completed the bookbuilding exercise for the private placement, the largest so far in Malaysia’s corporate history.
The placement is a proactive move to boost Maybank’s equity capital ahead of the implementation of the stringent new solvency requirements of the Basel III global banking regulations, Maybank said in a statement.
The issue price was fixed at RM8.88 a share, Maybank said, while the total number of shares to be issued represents 4.98 percent of the enlarged issued and paid-up share capital of Maybank as at Sept. 30.
The private placement exercise is expected to be completed no later than the middle of October, added Maybank.
HwangDBS maintained its "buy" rating on Maybank stock with a target price of RM11.10.
“Maybank remains our top pick and we believe our investment thesis of high dividends and strong earnings momentum remains intact despite these developments,” said HwangDBS.
The stock was down 0.56 percent at RM8.94, underperforming the broader index’s 0.15 percent drop.
-- REUTERS





Maybank plans US$1.2b share offer, says IFR

October 05, 2012
HONG KONG, Oct 5 — Malayan Banking Bhd (Maybank), the country’s largest lender, is seeking to raise up to US$1.2 billion (RM3.7 billion) with a new share offer, capital markets news service IFR said today.
Banks in Southeast Asia are beefing up core capital to accommodate the rapid growth in lending in the region and to meet the stringent new solvency requirements of the Basel III global banking regulations.
The fund raising comes just a week after sources told Reuters that Maybank was among the potential bidders approached by US conglomerate General Electric Co to sell its US$1.6 billion stake in Thailand’s Bank of Ayudhya. .
Maybank is offering 300 million new shares, in a range of 8.8-8.9 ringgit each, a discount of up to 3 per cent to the average trading price over the previous five days, said IFR, a Thomson Reuters publication, citing a term sheet for the sale.
Maybank’s shares closed today at 8.99 ringgit, trading on a price-to-earnings ratio of around 12.56, which compares with a median of 12.32 for all Malaysian banks.
The new funds will be used to strengthen the company’s capital base, support its “growth objectives” and meet the Basel III capital requirements, IFR said.
The offer can be expanded by an additional 112 million shares depending on the strength of demand, it added.
Maybank’s offering adds to Malaysia’s flourishing capital market deals this year with the tally for share offers at US$7.3 billion, accounting for nearly one-quarter of all new listings in Asia-Pacific and well up from about US$1.8 billion in Malaysia in the same period last year.
Maybank and UBS are managing the share offer, IFR added. — Reuters

Thursday 30 August 2012

Maybank - Return on Retained Earnings

Maybank

(Figures are in sens)

Year DPS EPS Retained EPS
2003 31.4 39.4 8
2004 30.6 47.7 17.1
2005 53.7 47.6 -6.1
2006 43.3 52.2 8.9
2007 41.3 57.8 16.5
2008 32.1 58.3 26.2
2009 6 33.5 27.5
2010 41.3 53.9 12.6
2011 45 59.5 14.5
Total 324.7 449.9 125.2
2003-2011
DPO 72%
EPS increase (sen) 20.1
Return on retained earnings  16%

Friday 24 February 2012

Maybank turns in record performance

By Adeline Paul Raj
Published: 2012/02/24

Top lender Malayan Banking Bhd (Maybank) posted a 20 per cent increase in net profit for the last financial year 
comprising just six months and announced a better-than-expected final dividend.




It was a shorter financial year as the group changed its year-end to December 31 from June 30.

Net profit for the six months to December 31 last year came in at RM2.6 billion compared with RM2.1 billion in the same period a year ago. Revenue grew by 21.6 per cent to RM12.9
billion.


“Our record performance is a result of our efforts in focusing on fundamentals and ensuring that we grow our business profitably and responsibly. We expect to see reasonable business growth in 2012,” president and chief executive officer (CEO) Datuk Seri Abdul Wahid Omar told reporters at a results briefing here yesterday.


Its second quarter net profit rose by 15.2 per cent to RM1.3 billion as it earned more from loans and insurance, and included the earnings of newly-acquired Kim Eng investment banking group.

The insurance business was boosted by a surplus transfer of RM178.3 million and a one-off RM98.3 million net surplus adjustment that came about from adopting new valuation guidelines issued by the central bank from July last year.

“After squaring off the insurance boost, the results came in within my expectations,” said Eileen Tan, a banking analyst at Affin Securities, who kept her “add” call and target price of RM9.05 on the stock.

Maybank’s shares closed one sen lower to RM8.70 yesterday.

The group beat its return-on-equity (ROE) target of 16 per cent, with ROE – a measure of profitability – coming in at 16.2 per cent.

Group loans grew by 16.3 per cent, led by strong loan growth in Singapore (23.7 per cent) and Indonesia (31.2 per cent). Loans grew by a tenth in Malaysia.

The group is targetting loan growth of 15.2 per cent this year as economies see slower growth. Abdul Wahid said retail loans, including auto loans, will continue to grow this year albeit at a slower pace after Bank Negara Malaysia’s new responsible lending guidelines kicked in this year.

Two-thirds of its auto loans are in the non-national car market and as such, the group is "less affected" by the tighter lending rules, he told analysts.

The group has no plans to acquire other banks or companies at the moment and will focus on organic growth in the region, even in the Philippines where its closest rival CIMB Group plans to buy a bank.

"At this moment, we're not looking ... but we're keeping our options open," he remarked.

Maybank proposed a final gross dividend of 36 sen a share, which works out to a payout ratio of 79.9 per cent, beating analysts' expectations of about a 70 per cent payout.

Shareholders stand to get a net dividend of 27 sen a share, of which 24 sen can be reinvested in new shares under a dividend re-investment plan.

Meanwhile, Maybank's deputy president and chief financial officer Datuk Khairussaleh Ramli will leave to become president director/CEO of Bank Internasional Indonesia (BII) from next month, having already obtained the Indonesian central bank's nod.

On Maybank's requirement to sell down its stake in BII to 80 per cent by June, Khairussaleh said it would probably ask the Indonesian authorities for more time to do so if it can't sell at a profit.

"For all intents and purposes, we will not sell if we incur a loss," he said.

BII's shares have been trading at around 480 rupiah a share, well below Maybank's cost of investment of 510 rupiah a share.



Read more: Maybank turns in record performance http://www.btimes.com.my/Current_News/BTIMES/articles/20120224000726/Article/index_html#ixzz1nFaylih1

Friday 25 November 2011

Maybank


Market Watch


Announcement
Date
Financial
Yr. End
QtrPeriod EndRevenue
RM '000
Profit/Lost
RM'000
EPSAmended
14-Nov-1131-Dec-11Other30-Sep-116,074,3461,305,86117.20-
22-Aug-1130-Jun-11430-Jun-115,720,9991,253,22215.54-
12-May-1130-Jun-11331-Mar-115,128,0821,186,26215.60-
21-Feb-1130-Jun-11231-Dec-105,188,6391,126,63415.72-






Share Price Performance
   High
 
Low
Prices 1 Month
8.520
  (16-Nov-11)
8.060
  (10-Nov-11)
 Prices 3 Months9.000  (02-Sep-11)7.350  (26-Sep-11)
Prices 12 Months9.260  (08-Apr-11)7.350  (26-Sep-11)
Volume 12 Months292,339  (05-Jan-11)21,663  (25-May-11)

Tuesday 18 January 2011

Pos Malaysia, Maybank partner to offer shared banking services

Pos Malaysia, Maybank partner to offer shared banking services
Written by Surin Murugiah of theedgemalaysia.com
Friday, 14 January 2011 19:16

KUALA LUMPUR: POS MALAYSIA BHD [] and MALAYAN BANKING BHD [] have teamed up to provide shared banking convenience for their customers at more than 400 Pos Malaysia outlets.

In the agreement signed on Friday, Jan 14, they said the alliance would enable the bank to provide banking services to more customers, especially the underserved segment, through the extensive network of Pos Malaysia’s outlets. The partnership would enable Maybank to especially reach the rural areas of Sabah and Sarawak.

Pos Malaysia group managing director and chief executive officer Datuk Syed Faisal Albar said Pos Malaysia was always looking for opportunities to expand the range of products and services offered at its post office counters such as the shared banking services with Maybank.

Maybank president & CEO Datuk Seri Abdul Wahid Omar said the collaboration reaffirmed Maybank’s market leadership and capabilities to offer services to all communities. This would also reinforce its corporate social responsibility and focus on supporting communities especially in the rural areas.

“It is about providing access to financial services and to improve quality of life of the community as well as contribute to the development of the people where we have our presence.

“The initiative is also in line with Maybank’s spirit in humanising financial services from the heart of Asean by providing easy access to financial service for the people, as well as providing them with a fair term and pricing and for us to be the heart of the community,” he added.

The three phase implementation programme will see selected Pos Malaysia outlets offer Maybank customers to undertake over the counter bank transactions such as cash deposit and withdrawal for savings account holders and loan repayments in the initial stage.

An automated teller machine would be provided at selected Pos Malaysia outlets to offer banking convenience beyond banking hours as well as additional services such as fund transfer, top-up of mobile credits or 'Touch 'n Go’ card.

"By end June 2011, Pos Malaysia services will expand to cover remittance service and opening of savings account," Abdul Wahid said.

Friday 14 January 2011

A Brief Look at Malayan Banking Bhd

Malayan Banking Berhad Company

Business Description:
Malayan Banking Berhad (Maybank) is engaged in the business of banking and finance. Through its subsidiaries, Maybank operates in six segments, which include

  1. consumer banking, 
  2. business and corporate banking, 
  3. global market, 
  4. investment banking,
  5. insurance and asset management and 
  6. international banking. 
Its global market segment comprises the full range of products and services relating to treasury activities and services, including foreign exchange, money market, derivates and trading of capital market instruments. Its investment banking segment comprises the business of an investment bank, discount house and securities broker. Its insurance and asset management segment comprises the business of underwriting all classes of general and life insurance, offshore investment life insurance, general takaful and family takaful, asset and fund management, nominee and trustee services and custodian services.




Current Price (7/1/2011): 9.00
Employees: 40,000
Market Cap: 65,900,163,519
Shares Outstanding: 7,322,240,391
Closely Held Shares: 4,362,026,586

2004 DPS 30.6 EPS 47.7
2005 DPS 53.7 EPS 47.6
2006 DPS 43.3 EPS 52.2
2007 DPS 41.3 EPS 57.8
2008 DPS 32.1 EPS 58.3
2009 DPS 6.00 EPS 33.5
2010 DPS 55.0 EPS 53.94
1Q11 DPS - EPS 14.53 NTA 4.0007

Estimated EPS for FY 2011 4*14.53 = 58.12 sen
Projected PE for FY 2011 = 15.5 x

Historical
5 Yr
PE range 11.3 - 17.4
DY range 5.4% - 3.6%

10 Yr
PE range 14.1 - 20.4
DY range 4.7% - 3.4%







Announcement
Date
Financial
Yr. End
QtrPeriod EndRevenue
RM '000
Profit/Lost
RM'000
EPSAmended
12-Nov-1030-Jun-11130-Sep-105,001,9231,053,64014.53-
20-Aug-1030-Jun-10430-Jun-104,737,314975,03312.89-
13-May-1030-Jun-10331-Mar-104,586,4541,063,28414.56-
09-Feb-1030-Jun-10231-Dec-094,671,3381,023,38014.04-





Capital Changes
2008 1/4 Bonus
2009 9/20 Rights @ RM 2.74


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Risk comes from misjudgement of a company's prospects, not price volatility