Showing posts with label mbb. Show all posts
Showing posts with label mbb. Show all posts
Monday 3 January 2011
Sunday 14 November 2010
Net interest income, Indon ops boost Maybank earnings
Saturday November 13, 2010
Net interest income, Indon ops boost Maybank earnings
PETALING JAYA: Malayan Banking Bhd (Maybank) posted a 16.6% rise in net profit to RM1.03bil for the first quarter ended Sept 30 compared with the same quarter last year due to an increase in net interest income and expansion of Indonesian operations.
The bank said in an announcement to Bursa Malaysia yesterday that revenue was 9.56% higher at RM5bil.
Maybank said the 9% or RM146.9mil increase in net interest income was mainly due to improvements in operations from higher net interest income margin in the Malaysian operations arising from increases in the overnight policy rate as well as the expansion of Indonesian operations.
It added that net income from the insurance business, which increased by 20.5% or RM88.8mil, was due to lower claims incurred.
It said income from Islamic banking operations decreased by 11.3% to RM338.2mil due to higher provision for profit equalisation reserves in the Islamic business, which was mitigated by an increase in the growth of assets that increased gross income.
Non-interest income was 1.8% higher at RM1bil compared with the previous corresponding quarter due to contributions from realised gain arising from sale of securities of RM36.4mil and higher loans-related income of RM35.4mil.
The bank said this was mitigated by a fall in commission, service charges and fees amounting and foreign exchange loss.
It added that allowance for losses on loans, advances and financing decreased by 36.6% to RM264.7mil mainly due to higher recovery during the period.
Overhead expenses increased by 4.4% to RM1.55bil mainly due to higher personnel costs which were mitigated by a decline in establishment and marketing costs as well as lower administration and general expenses, it said, adding that personnel costs increased by 23.1% to RM832.7mil due to the timing of crediting of salary in arrears and cost of living allowances arising from the conclusion of the new staff collective agreement.
The bank said although loans and debt securities grew by 4.4% on an annualised basis, this was expected to gain momentum towards meeting the target of 12%, particularly for the global wholesale banking and Malaysian consumer portfolio.
Meanwhile, Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said in a press release that the bank would focus on key markets across the region where there were significant opportunities to bring its unique brand of products and facilities to stakeholders.
“This quarter’s results continue to bear testimony to the group-wide transformation efforts that we have embarked on since 2008,” he added.
Abdul Wahid said the bank had made significant progress in the Indonesian operations, where loans growth was ahead of target at 30% and Singapore, which was on target at 5%.
“With increasing organisational confidence in our transformation journey, we’ll accelerate our growth efforts, leveraging synergies, enhancing productivities and shortening customer turnaround times in our preferred segments,” he said.
Abdul Wahid said barring unforeseen circumstances, the bank’s performance for the financial year ended June 30, 2011 (FY11) was expected to be better than FY10 and on track to meet the targeted 14% return on equity.
http://biz.thestar.com.my/news/story.asp?file=/2010/11/13/business/7419005&sec=business
Net interest income, Indon ops boost Maybank earnings
PETALING JAYA: Malayan Banking Bhd (Maybank) posted a 16.6% rise in net profit to RM1.03bil for the first quarter ended Sept 30 compared with the same quarter last year due to an increase in net interest income and expansion of Indonesian operations.
The bank said in an announcement to Bursa Malaysia yesterday that revenue was 9.56% higher at RM5bil.
Maybank said the 9% or RM146.9mil increase in net interest income was mainly due to improvements in operations from higher net interest income margin in the Malaysian operations arising from increases in the overnight policy rate as well as the expansion of Indonesian operations.
It added that net income from the insurance business, which increased by 20.5% or RM88.8mil, was due to lower claims incurred.
It said income from Islamic banking operations decreased by 11.3% to RM338.2mil due to higher provision for profit equalisation reserves in the Islamic business, which was mitigated by an increase in the growth of assets that increased gross income.
Non-interest income was 1.8% higher at RM1bil compared with the previous corresponding quarter due to contributions from realised gain arising from sale of securities of RM36.4mil and higher loans-related income of RM35.4mil.
The bank said this was mitigated by a fall in commission, service charges and fees amounting and foreign exchange loss.
It added that allowance for losses on loans, advances and financing decreased by 36.6% to RM264.7mil mainly due to higher recovery during the period.
Overhead expenses increased by 4.4% to RM1.55bil mainly due to higher personnel costs which were mitigated by a decline in establishment and marketing costs as well as lower administration and general expenses, it said, adding that personnel costs increased by 23.1% to RM832.7mil due to the timing of crediting of salary in arrears and cost of living allowances arising from the conclusion of the new staff collective agreement.
The bank said although loans and debt securities grew by 4.4% on an annualised basis, this was expected to gain momentum towards meeting the target of 12%, particularly for the global wholesale banking and Malaysian consumer portfolio.
Meanwhile, Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said in a press release that the bank would focus on key markets across the region where there were significant opportunities to bring its unique brand of products and facilities to stakeholders.
“This quarter’s results continue to bear testimony to the group-wide transformation efforts that we have embarked on since 2008,” he added.
Abdul Wahid said the bank had made significant progress in the Indonesian operations, where loans growth was ahead of target at 30% and Singapore, which was on target at 5%.
“With increasing organisational confidence in our transformation journey, we’ll accelerate our growth efforts, leveraging synergies, enhancing productivities and shortening customer turnaround times in our preferred segments,” he said.
Abdul Wahid said barring unforeseen circumstances, the bank’s performance for the financial year ended June 30, 2011 (FY11) was expected to be better than FY10 and on track to meet the targeted 14% return on equity.
http://biz.thestar.com.my/news/story.asp?file=/2010/11/13/business/7419005&sec=business
Friday 12 November 2010
A matter of time before Maybank woos OSK?
Published: 2010/11/12
Maybank has long wanted to grow its investment banking business regionally and OSK offers it the platform to do so
Read more: A matter of time before Maybank woos OSK? http://www.btimes.com.my/Current_News/BTIMES/articles/mayosk/Article/index_html#ixzz151Kl78z5
Maybank has long wanted to grow its investment banking business regionally and OSK offers it the platform to do so
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THERE are compelling reasons for top lender Malayan Banking Bhd (Maybank) to take over OSK Holdings Bhd (5053) and analysts wonder if it may just be a matter of time before Maybank officially starts courting the regional investment banking and brokerage group.
Maybank has long wanted to grow its investment banking business regionally and OSK offers it the platform to do so.
A takeover will also enable Maybank to go regional with its brokerage business.
Unlike its closest rival CIMB Group Holdings Bhd, Maybank does not have a brokerage business outside Malaysia.
OSK has quietly but aggressively expanded beyond Malaysia in recent years, and now has a presence in Cambodia, Singapore and Indonesia.
Maybank's investment banking business including brokerage, contributes less than 5 per cent to the group's overall earnings and this is something it needs to improve on.
Maybank has neither confirmed nor denied a recent report that it is keen to buy OSK, saying only that it is always on the lookout for opportunities to be a regional player.
OSK, meanwhile, said it had not entered into any serious or exclusive talks with any party on equity or strategic partnerships.
"This is still preliminary at this stage as there are no formal approvals to commence negotiations, but at face value, the deal looks compelling for Maybank if it intends to spruce up its broking business regionally," noted HwangDBS Vickers Research' banking analyst, Lim Sue Lin, in a report yesterday.
A takeover would also immediately catapult Maybank to become the country's top broker by value and volume.
OSK ranked top in terms of trading volume as at October this year with an 11 per cent market share, compared with Maybank's 5.5 per cent share.
OSK booked a RM112 million net profit last year, and while the earnings enhancement to Maybank would be relatively small, in terms of ranking and regional presence, "Maybank would be charting new territories," Lim noted.
Still, while there are strong reasons for Maybank to buy OSK, it remains to be seen if the latter's controlling shareholder and group managing director Ong Leong Huat, who has a 31.5 per cent stake, will want to sell.
Given that he has steadily built up the business and is grooming his son, who already works with OSK, to takeover and grow it further, indications are that he will not let go unless there is an irresistible offer.
If the transaction is priced at two times the book value, the total price tag for OSK would be around RM2.2 billion, said Lim. (OSK's book value as at June this year was RM1.68 a share.)
OSK's share price, which has been on the rise of late, surged 5.4 per cent to RM1.97 yesterday, its highest close in 39 months. Maybank fell 1.8 per cent to RM9.10.
The last investment banking transaction in Malaysia, in 2007, was done at one-time book value. This was when Hong Leong Investment Bank bought Southern Investment Bank from CIMB for RM65 million.
Investment banking transactions before that were done at between 1.2 times and 1.4 times book value, analysts said. But the targets, including Southern Investment Bank, were small whereas OSK is a regional franchise.
Apart from Ong's 31.5 per cent stake, OSK's shareholding structure is fragmented, with shareholders each holding less than5 per cent.
Analysts believe a hostile bid for OSK is unlikely. "It isn't Maybank's style. Also, it does not make sense to make a hostile bid for an investment bank as it is the people that you want, not the assets and liabilities," said one, pointing out that OSK's staff may leave in the event of a hostile takeover.
Maybank has long wanted to grow its investment banking business regionally and OSK offers it the platform to do so.
A takeover will also enable Maybank to go regional with its brokerage business.
Unlike its closest rival CIMB Group Holdings Bhd, Maybank does not have a brokerage business outside Malaysia.
OSK has quietly but aggressively expanded beyond Malaysia in recent years, and now has a presence in Cambodia, Singapore and Indonesia.Maybank's investment banking business including brokerage, contributes less than 5 per cent to the group's overall earnings and this is something it needs to improve on.
Maybank has neither confirmed nor denied a recent report that it is keen to buy OSK, saying only that it is always on the lookout for opportunities to be a regional player.
OSK, meanwhile, said it had not entered into any serious or exclusive talks with any party on equity or strategic partnerships.
"This is still preliminary at this stage as there are no formal approvals to commence negotiations, but at face value, the deal looks compelling for Maybank if it intends to spruce up its broking business regionally," noted HwangDBS Vickers Research' banking analyst, Lim Sue Lin, in a report yesterday.
A takeover would also immediately catapult Maybank to become the country's top broker by value and volume.
OSK ranked top in terms of trading volume as at October this year with an 11 per cent market share, compared with Maybank's 5.5 per cent share.
OSK booked a RM112 million net profit last year, and while the earnings enhancement to Maybank would be relatively small, in terms of ranking and regional presence, "Maybank would be charting new territories," Lim noted.
Still, while there are strong reasons for Maybank to buy OSK, it remains to be seen if the latter's controlling shareholder and group managing director Ong Leong Huat, who has a 31.5 per cent stake, will want to sell.
Given that he has steadily built up the business and is grooming his son, who already works with OSK, to takeover and grow it further, indications are that he will not let go unless there is an irresistible offer.
If the transaction is priced at two times the book value, the total price tag for OSK would be around RM2.2 billion, said Lim. (OSK's book value as at June this year was RM1.68 a share.)
OSK's share price, which has been on the rise of late, surged 5.4 per cent to RM1.97 yesterday, its highest close in 39 months. Maybank fell 1.8 per cent to RM9.10.
The last investment banking transaction in Malaysia, in 2007, was done at one-time book value. This was when Hong Leong Investment Bank bought Southern Investment Bank from CIMB for RM65 million.
Investment banking transactions before that were done at between 1.2 times and 1.4 times book value, analysts said. But the targets, including Southern Investment Bank, were small whereas OSK is a regional franchise.
Apart from Ong's 31.5 per cent stake, OSK's shareholding structure is fragmented, with shareholders each holding less than5 per cent.
Analysts believe a hostile bid for OSK is unlikely. "It isn't Maybank's style. Also, it does not make sense to make a hostile bid for an investment bank as it is the people that you want, not the assets and liabilities," said one, pointing out that OSK's staff may leave in the event of a hostile takeover.
Read more: A matter of time before Maybank woos OSK? http://www.btimes.com.my/Current_News/BTIMES/articles/mayosk/Article/index_html#ixzz151Kl78z5
Thursday 11 November 2010
Malayan Banking Berhad
Date announced 20/08/2010
Quarter 30/06/2010 Qtr 4
FYE 30/06/2010
STOCK Maybank
C0DE 1155
Price $ 9.1 Curr. PE (ttm-Eps) 16.87 Curr. DY 6.04%
LFY Div 55.00 DPO ratio 102%
ROE 13.7% PBT Margin 28.7% PAT Margin 19.3%
Rec. qRev 4737314 q-q % chg 3% y-y% chq -3%
Rec qPbt 1359094 q-q % chg -7% y-y% chq -265%
Rec. qEps 12.89 q-q % chg -11% y-y% chq -173%
ttm-Eps 53.95 q-q % chg 130% y-y% chq 384%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 15.00 Avg. L PE 10.00
Forecast High Pr 10.33 Forecast Low Pr 6.71 Recent Severe Low Pr 6.71
Current price is at Middle 1/3 of valuation zone.
RISK: Upside 34% Downside 66%
One Year Appreciation Potential 3% Avg. yield 8%
Avg. Total Annual Potential Return (over next 5 years) 10%
CPE/SPE 1.35 P/NTA 2.31 NTA 3.94 SPE 12.50 Rational Pr 6.74
Decision:
Already Owned: Buy Hold Sell Filed; Review (future acq): Filed; Discard: Filed
Guide: Valuation zones Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell
Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr
Tuesday 24 August 2010
Maybank jumps on analysts' stock upgrade
Maybank jumps on analysts' stock upgrade
Published: 2010/08/24
Kenanga Research and TA Securities upgraded the stock after Maybank turned in an over fivefold increase in net profit to RM3.8 billion for the year to June 30.
Malayan Banking Bhd's (Maybank) (1155)stock got a boost yesterday as analysts raised their target prices after the lender reported record earnings.
The stock rose to an intra-day high of RM8.40 before closing lower at RM8.14, its highest close in 28 months. It closed 1 sen higher from the previous trading day.
At least two research firms, Kenanga Research and TA Securities, upgraded the stock after Maybank turned in an over fivefold increase in net profit to RM3.8 billion for the year to June 30.
RHB Research raised its fair value for the stock by 2 per cent to RM9.86 while ECM Libra Research lifted its target by about 9 per cent to RM9.81.
"In our view, valuations remain decent with strong organic growth expected from the domestic operations as well as Bank Internasional Indonesia (BII). Hence, the negative impact from the expensive acquisitions of BII and Pakistan's MCB Bank would be more than nullified with (2011 earnings) expected to exceed pre-acquisition levels," RHB said in a note to clients yesterday. It maintained an "outperform" call on the stock.
Read more: Maybank jumps on analysts' stock upgrade http://www.btimes.com.my/Current_News/BTIMES/articles/mayre2/Article/#ixzz0xTxfBxqO
Saturday 21 August 2010
Maybank posts 4Q net profit of RM912.47m
Maybank posts 4Q net profit of RM912.47m
Tags: Abdul Wahid Omar | Bank Internasional Indonesia | Maybank | MCB Bank | Turnaround
Written by Joseph Chin
Friday, 20 August 2010 17:45
KUALA LUMPUR: MALAYAN BANKING BHD [] staged a turnaround in the fourth quarter ended June 30, 2010 with net profit of RM912.47 million versus net loss of RM1.118 billion a year ago when it was affected by the RM1.97 billion impairment charge on its investment in Bank Internasional Indonesia (BII) and MCB Bank.
The banking group said on Friday, Aug 20 revenue was slightly lower at RM4.73 billion versus RM4.85 billion. Earnings per share were 12.89 sen versus loss per share of 17.62 sen. Its pre-tax profit was RM1.36 billion versus a pre-tax loss of RM821.67 million.
Maybank proposed a final dividend of 44 sen per share. Out of the amount, four sen per share will be paid in cash while the balance of 40 sen per share will be in the electable portion whereby a shareholder may either elect whether to receive it entirely in cash or reinvest in Maybank shares.
For the financial year ended June 30, net profit surged 450% to RM3.818 billion from RM691.87 million. Pre-tax profit was a record of RM5.37 billion compared to pre-tax profit of RM1.67 billion in 2009. Revenue was 5.5% higher at RM18.56 billion compared with RM17.58 billion.
"If compared to the normalised profit last year, pre-tax profit this year totalled RM5.01 billion, a 31.7% increase from RM3.81 billion previously," it said. The results were achieved on the back of higher revenues across all key business segments.
Maybank president and CEO Datuk Seri Abdul Wahid Omar said: "The good set of results is testimony to the significant progress we have made in our transformation group-wide. It is indeed a year of achievement as we cross the 'regional milestone' of US$100 billion in total assets and US$1 billion in profit after tax."
He said that for Maybank, whilst it is more than pleased and have overcome the many challenges after the regional acquisitions, "our journey of change is far from over".
Wahid said for this year, the group had reframed its strategic aspirations to humanise financial services from the heart of Asean and reorganised its operations structure to enhance service and product delivery, pioneering new ways of providing financial solutions across the key markets.
"The year ahead will be a challenging one and we are confident that the right formula is now in place for us to consistently deliver as Malaysia's regional financial services leader," it said.
http://www.theedgemalaysia.com/business-news/172222-flash-maybank-posts-4q-net-profit-of-rm91247m.html
Tags: Abdul Wahid Omar | Bank Internasional Indonesia | Maybank | MCB Bank | Turnaround
Written by Joseph Chin
Friday, 20 August 2010 17:45
KUALA LUMPUR: MALAYAN BANKING BHD [] staged a turnaround in the fourth quarter ended June 30, 2010 with net profit of RM912.47 million versus net loss of RM1.118 billion a year ago when it was affected by the RM1.97 billion impairment charge on its investment in Bank Internasional Indonesia (BII) and MCB Bank.
The banking group said on Friday, Aug 20 revenue was slightly lower at RM4.73 billion versus RM4.85 billion. Earnings per share were 12.89 sen versus loss per share of 17.62 sen. Its pre-tax profit was RM1.36 billion versus a pre-tax loss of RM821.67 million.
Maybank proposed a final dividend of 44 sen per share. Out of the amount, four sen per share will be paid in cash while the balance of 40 sen per share will be in the electable portion whereby a shareholder may either elect whether to receive it entirely in cash or reinvest in Maybank shares.
For the financial year ended June 30, net profit surged 450% to RM3.818 billion from RM691.87 million. Pre-tax profit was a record of RM5.37 billion compared to pre-tax profit of RM1.67 billion in 2009. Revenue was 5.5% higher at RM18.56 billion compared with RM17.58 billion.
"If compared to the normalised profit last year, pre-tax profit this year totalled RM5.01 billion, a 31.7% increase from RM3.81 billion previously," it said. The results were achieved on the back of higher revenues across all key business segments.
Maybank president and CEO Datuk Seri Abdul Wahid Omar said: "The good set of results is testimony to the significant progress we have made in our transformation group-wide. It is indeed a year of achievement as we cross the 'regional milestone' of US$100 billion in total assets and US$1 billion in profit after tax."
He said that for Maybank, whilst it is more than pleased and have overcome the many challenges after the regional acquisitions, "our journey of change is far from over".
Wahid said for this year, the group had reframed its strategic aspirations to humanise financial services from the heart of Asean and reorganised its operations structure to enhance service and product delivery, pioneering new ways of providing financial solutions across the key markets.
"The year ahead will be a challenging one and we are confident that the right formula is now in place for us to consistently deliver as Malaysia's regional financial services leader," it said.
http://www.theedgemalaysia.com/business-news/172222-flash-maybank-posts-4q-net-profit-of-rm91247m.html
Thursday 25 March 2010
Maybank proposes shareholders reinvest dividends into shares
| Written by Joseph Chin |
| Thursday, 25 March 2010 20:24 |
KUALA LUMPUR: MALAYAN BANKING BHD [] has proposed a recurrent and optional dividend reinvestment plan that allows shareholders to reinvest their dividend into new ordinary shares of the bank.
It said on Thursday, March 25 the plan was part of its efforts to enhance and maximise shareholders’ value via the subscription of new Maybank shares.
Maybank said the issue price of a new Maybank share would at a discount of not more than 10% to the five-day volume weighted average market price of the shares immediately prior to the price fixing date.
"The reinvestment plan will provide the shareholders with greater flexibility in meeting their investment objectives, as they would have the choice of receiving cash or reinvesting in the company through subscription of additional Maybank shares without having to incur material transaction or other related costs," it said.
http://www.theedgemalaysia.com/business-news/162382-maybank-proposes-shareholders-reinvest-dividends-into-shares.html
Thursday 11 February 2010
Maybank 2Q net profit up 35.3% to RM993.5m
Maybank 2Q net profit up 35.3% to RM993.5m
Written by Yong Yen Nie
Tuesday, 09 February 2010 18:35
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KUALA LUMPUR: MALAYAN BANKING BHD [] posted a strong second quarter net profit of RM993.50 million, up 35.3% from the RM734.56 million a year ago on improved loan volume and it declared an interim dividend of 11 sen per share.
Revenue was marginally lower by 1.22% at RM4.67 billion from RM4.73 billion a year ago. Earnings per share were 14.04 sen compared with 13.35 sen, the bank said in a statement issued on Tuesday, Feb 9.
According to its financial statements, the higher earnings were due to
For the six months, Maybank's net profit rose 43.5pct to a record of RM1.88 billion underpinned by higher revenue of RM9.23 billion from RM8.46 billion a year earlier.
Commenting on the half year financial results, Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said the banking group was especially pleased with the performance seen at its international operations, particularly Singapore and Indonesia.
"We have set our sights for more dynamic growth in the years ahead and are confident of exceeding our key targets set for the year," he said.
http://www.theedgemalaysia.com/business-news/159434-flash-maybank-2q-net-profit-up-353-to-rm9935m.html
Written by Yong Yen Nie
Tuesday, 09 February 2010 18:35
Bookmark and Share
KUALA LUMPUR: MALAYAN BANKING BHD [] posted a strong second quarter net profit of RM993.50 million, up 35.3% from the RM734.56 million a year ago on improved loan volume and it declared an interim dividend of 11 sen per share.
Revenue was marginally lower by 1.22% at RM4.67 billion from RM4.73 billion a year ago. Earnings per share were 14.04 sen compared with 13.35 sen, the bank said in a statement issued on Tuesday, Feb 9.
According to its financial statements, the higher earnings were due to
- higher non-interest income (RM1.22 billion vs RM832.18 million a year ago),
- lower allowances for losses on loans, advances and financing (RM243.55 million vs RM321.1 million) and
- lower impairment losses on securities, net (RM9.83 million vs RM22.56 million).
For the six months, Maybank's net profit rose 43.5pct to a record of RM1.88 billion underpinned by higher revenue of RM9.23 billion from RM8.46 billion a year earlier.
Commenting on the half year financial results, Maybank president and chief executive officer Datuk Seri Abdul Wahid Omar said the banking group was especially pleased with the performance seen at its international operations, particularly Singapore and Indonesia.
"We have set our sights for more dynamic growth in the years ahead and are confident of exceeding our key targets set for the year," he said.
http://www.theedgemalaysia.com/business-news/159434-flash-maybank-2q-net-profit-up-353-to-rm9935m.html
Monday 21 December 2009
Maybank has little exposure to Dubai, says Wahid
Maybank has little exposure to Dubai, says Wahid
Tags: An Binh Bank | Dubai | Maybank
Written by Siti Sakinah Abd Latif & Max Koh
Thursday, 17 December 2009 21:13
KUALA LUMPUR: MALAYAN BANKING BHD [] will not be affected by Dubai's debt crisis given its exposure there of less than 0.2% of the banking group's total assets, said its CEO Datuk Seri Abdul Wahid Omar. (Comment: Total assets of Maybank as at Sept 30, 2009 was RM 317,041 mil. The 0.2% of this was RM 634.082 million).
Wahid said the bank's exposure in Dubai was being monitored by its branches in Bahrain and London.
"We are hopeful that the issue in Dubai will be resolved. Abu Dhabi has lent US$10 billion [RM34.2 billion] to enable Nakheel to repay its bond debt, which is a positive development," Wahid told reporters on Dec 17 after a signing ceremony between Maybank and MoneyTree (M) Sdn Bhd for the sponsorship of a year-long financial-literacy programme for youngsters.
He said the development in Dubai would bring back significant confidence and stability to financial markets.
It had been reported that Abu Dhabi recently provided the amount to Dubai to help Dubai World, the state-owned holding company, avoid defaulting on a US$4.1 billion Nakheel bond payment.
On another matter, Abdul Wahid said Maybank had received the final approval from the Vietnamese authorities to increase its stake in An Binh Bank from 15% to 20%.
When Maybank bought its 15% stake in An Binh in March 2008, it was given the option to increase the stake to 20%, which is the highest stake that a foreign company is allowed to hold in Vietnam.
"We are now in the process of finalising the agreement," Wahid said.
On the bank's outlook for next year, Wahid said Maybank was bullish about 2010's economic prospects, adding that its in-house economist had forecast 4.5% growth.
"I think as we recover, obviously, we expect the financial industry to perform well as well," he said.
He said the country's asset policy would continue to create a conducive environment for business.
Tags: An Binh Bank | Dubai | Maybank
Written by Siti Sakinah Abd Latif & Max Koh
Thursday, 17 December 2009 21:13
KUALA LUMPUR: MALAYAN BANKING BHD [] will not be affected by Dubai's debt crisis given its exposure there of less than 0.2% of the banking group's total assets, said its CEO Datuk Seri Abdul Wahid Omar. (Comment: Total assets of Maybank as at Sept 30, 2009 was RM 317,041 mil. The 0.2% of this was RM 634.082 million).
Wahid said the bank's exposure in Dubai was being monitored by its branches in Bahrain and London.
"We are hopeful that the issue in Dubai will be resolved. Abu Dhabi has lent US$10 billion [RM34.2 billion] to enable Nakheel to repay its bond debt, which is a positive development," Wahid told reporters on Dec 17 after a signing ceremony between Maybank and MoneyTree (M) Sdn Bhd for the sponsorship of a year-long financial-literacy programme for youngsters.
He said the development in Dubai would bring back significant confidence and stability to financial markets.
It had been reported that Abu Dhabi recently provided the amount to Dubai to help Dubai World, the state-owned holding company, avoid defaulting on a US$4.1 billion Nakheel bond payment.
On another matter, Abdul Wahid said Maybank had received the final approval from the Vietnamese authorities to increase its stake in An Binh Bank from 15% to 20%.
When Maybank bought its 15% stake in An Binh in March 2008, it was given the option to increase the stake to 20%, which is the highest stake that a foreign company is allowed to hold in Vietnam.
"We are now in the process of finalising the agreement," Wahid said.
On the bank's outlook for next year, Wahid said Maybank was bullish about 2010's economic prospects, adding that its in-house economist had forecast 4.5% growth.
"I think as we recover, obviously, we expect the financial industry to perform well as well," he said.
He said the country's asset policy would continue to create a conducive environment for business.
Sunday 11 October 2009
RHB Research: Maybank’s ROE still sub-par
RHB Research: Maybank’s ROE still sub-par
Tags: BII | Brokers Call | MCB Bank | Myabank | RHB Research
Written by Financial Daily
Wednesday, 07 October 2009 10:20
RHB Research noted that post MALAYAN BANKING BHD []’s (Maybank) FY09 results, the uncertainties surrounding the impairment on Bank Internasional Indonesia (BII) and MCB Bank of Pakistan would be eliminated.
“However, the aftermath (interest expense from hybrid and sub debt raised as well as dilution from the rights issue) from the expensive acquisitions means that its return on equity (ROE) will be sub-par over the next two to three years,” it said.
“Although BII’s prospects are promising (given a high-margin, low-penetration rate market environment in Indonesia), the group as a whole would need to integrate and ensure strong risk management and processes before embarking to realise the potential of BII. This would take two to three years before it returns to pre-acquisition ROE of 15% to 16%,” it added.
RHB Research maintained its underperform call on Maybank, pegging the stock’s fair value at RM5.97.
It added that earnings growth for the largest bank in the country seem to be intact.
“This is on the back of strong growth during the first two months of FY06/2010 (as transformation is slowly bearing fruits), high single-digit loan growth for the group (with the star being BII) and no kitchen sinking at BII (as full integration of provisioning policy has limited impact on P&L) to derail the expansion trajectory,” it noted.
RHB Research also said that BII is the focus for the future growth of Maybank.
“This is to capitalise on an underserved market with high margin. Besides transformation and expansion in BII, WOM Finance (providing motorcycle financing) will be another focal point. However, due to the latter’s track record, we are cautious about management’s optimism.”
RHB Research maintained its conservative projection of Maybank’s ROE for FY2010 to be at 10.2%, adding that it assumed the bank’s dividend payout to be 60% for FY2010 to FY2012.
Maybank gained six sen to close at RM6.71 yesterday.
This article appeared in The Edge Financial Daily, October 7, 2009.
Tags: BII | Brokers Call | MCB Bank | Myabank | RHB Research
Written by Financial Daily
Wednesday, 07 October 2009 10:20
RHB Research noted that post MALAYAN BANKING BHD []’s (Maybank) FY09 results, the uncertainties surrounding the impairment on Bank Internasional Indonesia (BII) and MCB Bank of Pakistan would be eliminated.
“However, the aftermath (interest expense from hybrid and sub debt raised as well as dilution from the rights issue) from the expensive acquisitions means that its return on equity (ROE) will be sub-par over the next two to three years,” it said.
“Although BII’s prospects are promising (given a high-margin, low-penetration rate market environment in Indonesia), the group as a whole would need to integrate and ensure strong risk management and processes before embarking to realise the potential of BII. This would take two to three years before it returns to pre-acquisition ROE of 15% to 16%,” it added.
RHB Research maintained its underperform call on Maybank, pegging the stock’s fair value at RM5.97.
It added that earnings growth for the largest bank in the country seem to be intact.
“This is on the back of strong growth during the first two months of FY06/2010 (as transformation is slowly bearing fruits), high single-digit loan growth for the group (with the star being BII) and no kitchen sinking at BII (as full integration of provisioning policy has limited impact on P&L) to derail the expansion trajectory,” it noted.
RHB Research also said that BII is the focus for the future growth of Maybank.
“This is to capitalise on an underserved market with high margin. Besides transformation and expansion in BII, WOM Finance (providing motorcycle financing) will be another focal point. However, due to the latter’s track record, we are cautious about management’s optimism.”
RHB Research maintained its conservative projection of Maybank’s ROE for FY2010 to be at 10.2%, adding that it assumed the bank’s dividend payout to be 60% for FY2010 to FY2012.
Maybank gained six sen to close at RM6.71 yesterday.
This article appeared in The Edge Financial Daily, October 7, 2009.
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