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CIMB Group Malaysia; Financial Statement Analysis

CIMB Group Malaysia; Financial Analysis

FINANCIAL STATEMENT ANALYSIS

  • Background Summary

CIMB Bank

CIMB is a Malaysian universal bank based in Kuala Lumpur, active in ASEAN’s fast development countries. ASEAN Indian Investment Bank (CIMB Group). CIMB maintains a network of 1,080 branches across the area. This group works in various companies including CIMB Securities International, CIMB Bank, CIMB Islamic, CIMB Niaga and CIMB Thai. Group operations include on consumer banking, wholesale banking, including investment banking and corporate banking, treasury and markets and company strategic and strategic investment. The main markets of the group are Malaysia, Indonesia, Singapore, and Thailand. In accordance with the group double-bank concept, CIMB Islamic works in parallel with these companies. The Group has more than 40,000 workers in 18 countries encompassing ASEAN and key global financial centres, and nations where its clients have important commercial and investment transactions.

Over the years, CIMB has acquired numerous banks and businesses that supplement the conglomerate with finance services. This comprises GK Goh Securities purchase in 2005, and PT bank Niaga acquisition in 2004. In 1987, CIMB debuted on Bursa Malaysia with market value of RM 35.1 billion as of 30 June 2020. Its listings are lucrative, and the bank produces large profits of up to 340%. CIMB is engaged in ASEAN investment banking and is a significant player in cash stocks and investment in the ASEAN area. With branches in India, Korea, Taiwan, Melbourne, Sydney, London, Hong Kong, and New York, CIMB activities transcend country borders. It is also the leading supplier in the 10 ASEAN nations for digital distributors. CIMB continues to develop and improve its goods and services and is a successful and expanding universal banker. It is a seasoned business consultant for Maybank’s financial services. It also uses the management of assets for its customers (CIMB, 2021).

Maybank

Maybank was set up in 1960 and is the biggest business on the Malaysian stock market by means of market capitalization (Bursa Malaysia). It is rated among the top 500 businesses in the world’s top Forbes Global 2000 corporations. It is one of Malaysia’s leading companies.

A full range of products and services is available to The Maybank Group, including business banking, investment banking, Islamic banking, offshore banking, leasing, and leasing acquisition, insurance, factoring, trustees, asset management, stock trading, invitation services, risk capital & Internet banking.

The goal of Maybank is to humanize financial services throughout Asia, by giving people access to financial services at reasonable prices and always at the center of the community (Maybank, 2021).

CIMB Bank

CIMB Bank Common Size analysis for Income Statement for year 2017-2019

2019

%

2018

%

2017

%

Net Interest income

Net Non-Interest Income

Operating Income

Overheads

Profit before expected credit losses.

Expected credit losses on loans, advances, and financing.

Expected credit losses written back for commitment and contingencies.

Other expected credit losses made.

Share of results of joint ventures and associates.

Profit before taxation and zakat

Net profit attributable to owners of the Parent

71.13%

28.86%

100%

55.48%

44.52%

9.21%

 

0.07%

1.98%

0.17%

33.57%

26.13%

68.48%

31.52%

100%

49.80%

50.20%

8.24%

 

0.04%

0.77%

0.20%

41.43%

32.13%

69.26%

30.74%

100%

51.82%

48.18%

12.66%

 

0.06%

0.99%

0.07%

34.67%

25.39%

 

CIMB Bank Common Size analysis for Balance Sheet for year 2017-2019

2019

%

2018

%

2017

%

Assets

Cash and short-term funds

Deposits and placements with banks and other financial institutions

Financial investment portfolio

Loans, advances, and financing

Other assets (including Intangible assets)

 

6.59%

 

0.84%

19.49%

62.86%

10.22%

 

6.65%

 

0.82%

19.03%

63.13%

10.37%

 

8.23%

 

0.80%

17.96%

62.50%

10.51%

Total assets 100% 100% 100%
Liabilities

Deposits from customers

Deposits and placements of banks and other financial institutions

Other borrowings

Bonds, sukuk and debentures

Subordinated obligations

Other liabilities

 

70.07%

 

4.13%

1.82%

3.18%

2.36%

8.41%

 

71.09%

 

3.79%

1.74%

2.57%

2.52%

8.44%

 

70.48%

 

3.90%

1.99%

2.94%

2.47%

8.38%

Total liabilities 89.97% 90.15% 90.17%
Shareholders’ funds 10.03% 9.85% 9.83%
Total liabilities & Equities 100% 100% 100%

Maybank

Maybank Common size analysis for Income Statement for year 2017-2019

2019

%

2018

%

2017

%

Operating revenue

Interest income

Interest expense

Net interest income

Income from Islamic Banking Scheme operations

 

Net earned insurance premiums.

Other operating income

 

Net insurance benefits and claims incurred, net fee and commission expenses, change in expense liabilities and taxation of life and takaful fund.

Net operating income

Overhead expenses

Operating profit before impairment losses

Allowances for impairment losses on loans, advances, financing and other debts, net

(Allowances for)/writeback of impairment losses on financial investments, net

Operating profit

Share of profits in associates and joint ventures.

Profit before taxation and zakat

Taxation and zakat

100

45.62

-22.73

22.89

11.32

34.20

12.79

13.77

60.77

 

 

-13.95

46.82

-21.88

24.94

 

-4.33

 

-0.07

20.54

0.30

20.84

-4.80

100

49.1

-23.50

25.51

11.86

37.37

12.54

10.46

60.37

 

 

-10.37

50.00

-23.77

26.24

 

-3.36

 

-0.05

22.83

0.21

23.04

-5.38

100

48.39

-21.74

26.65

10.75

37.40

11.52

13.22

62.14

 

 

-11.09

51.05

-24.92

26.13

 

-4.30

 

-0.15

21.68

0.47

22.15

-5.05

Profit for the financial year 16.04 17.66 17.11

 

Maybank Common size analysis for Balance Sheet for year 2017-2019

2019

%

2018

%

2017

%

ASSETS

Cash and short-term funds

Deposits and placements with financial institutions

Financial assets purchased under resale agreements.

Financial assets designated upon initial recognition at fair value through profit or loss.

Financial investments at fair value through profit or loss

Financial investments at fair value through other comprehensive income

Financial investments at amortized cost

Loans, advances and financing

Derivative assets

Reinsurance/retakaful assets and other insurance receivables

Other assets

Investment properties

Statutory deposits with central banks

Interest in associates and joint ventures

Property, plant and equipment

Right-of-use assets

Intangible assets

Deferred tax assets

 

5.57

1.69

1.63

 

1.72

2.44

 

14.78

4.17

61.53

1.24

 

0.51

1.14

0.11

1.80

0.30

0.28

0.19

0.82

0.09

 

6.82

1.55

0.50

 

1.83

1.88

 

14.98

3.35

62.84

0.86

 

0.47

1.22

0.11

2.02

0.29

0.31

0.83

0.13

 

6.58

2.22

1.11

 

3.28

 

14.25

2.64

63.45

0.88

 

0.51

1.27

0.10

2.01

0.36

0.34

0.88

0.11

Total assets 100.00 100.00 100.00
LIABILITIES

Deposits from customers

Investment accounts of customers

Deposits and placements from financial institutions

Obligations on financial assets sold under repurchase agreements.

Derivative liabilities

Financial liabilities at fair value through profit or loss

Bills and acceptances payable

Insurance/takaful contract liabilities and other insurance payables

Other liabilities

Recourse obligation on loans and financing sold to Cagamas.

Provision for taxation and zakat

Deferred tax liabilities

Borrowings

Subordinated obligations

Capital securities.

Equity attributable to equity holders of the Bank

Share capital

Retained profits.

Reserves

Share premium

Shares held-in-trust.

Non-controlling interests

 

65.26

2.49

5.22

 

1.68

1.34

0.78

0.15

 

3.70

2.58

 

0.18

0.02

0.11

4.95

1.12

0.34

 

5.79

3.26

0.73

0.00

0.00

0.30

 

66.01

2.92

5.43

 

1.71

0.99

1.10

0.19

 

3.33

2.70

 

0.19

0.05

0.06

3.92

1.33

0.44

 

5.79

3.22

0.32

0.00

0.00

0.30

 

65.60

3.21

5.57

 

0.70

0.94

0.83

0.25

 

3.28

2.51

 

0.20

0.10

0.10

4.51

1.57

0.82

 

5.78

3.30

0.48

0.00

-0.02

0.29

Total liabilities and shareholders’ equity 100.00 100.00 100.00

 

Common Size Balance Sheet analysis

  • At the same time, the CIMB has less inventories than Maybank, yet at the same time it has plenty of cash. This leads to the company’s more current assets than Maybank.
  • The CIMB currently has somewhat less equity, which is more debt than Maybank as a fault of its management.
  • The CIMB has lower short-run debt than Maybank which includes the loans and loans it borrows. It also has a larger long-term debt proportion than Maybank.
  • The CIMB’s share of investments in property, plants and equipment was less significant than in Maybank. While the investment proportion in both partners is equal, the total non-current assets of Maybank are still larger.

Common Size  Income  Statement Analysis

  • In all years, the CIMB is more expensive to make sales than the Maybank. It demonstrates that manufacturing expenses are handled well and have a better gross profit for CIMB all year.
  • Sales and distribution expenses, such as Maybank logistics or salaries, are 5.36%, significantly over CIMB, which is only 0.08%. Maybank is 4.61% lower than CIMB administrative costs and 5.65%. Thus, the operational profit % for CIMB is rather greater when all costs are included than for Maybank.
  • As you can see, the profit before tax for CIMB is greater than for Maybank in all years. When Maybank’s income tax expenditures are just 2.20 percent and 4.12 percent, the outcome for both will be influenced by net profit and Maybank (17.07 percent) will have a profit net greater than CIMB (12.12 percent).
  1. Financial Ratios

CIMB Bank

Current Ratio = Current Assets/Current Liabilities

  2017 2018 2019
Current Assets 54,171,171 48,537,385 54,154,158
Current Liabilities 378,744,361 396,709,553 423,227,251
Current Ratio 0.14 times 0.12 times 0.13 times

 

The current ratio is too low in most sectors as it approaches 1. In the event that CIMB is barely in a position to pay the obligations due, in three years, the current CIMB ratio is less than 1. A current ratio below 1 does not allow the CIMB to recoup its short-term obligations by having adequate cash in place.

Quick Ratio

  2017 2018 2019
Quick Assets 54,171,171 48,537,385 54,154,158
Current Liabilities 378,744,361 396,709,553 423,227,251
Quick Ratio 0.14 times 0.12 times 0.13 times

 

The result is 1 is considered the typical quick ratio in the three years between 2017 and 2019. It shows that the business is fully prepared with sufficient assets to meet its existing obligations instantly. A business with a fast-to-face ratio of less than 1 may not be able to completely disburse its existing obligations in the near future, while a company with a rapid ratio of less than 1. For example, a fast ratio of 1.5 implies that a firm is equipped with 1.50 liquid assets to cover 1 of its current obligations.

Networking capital

Networking Capital = Current Assets-Current Liabilities

  2017 2018 2019
Current Assets 54,171,171 48,537,385 54,154,158
Current Liabilities 378,744,361 396,709,553 423,227,251
Networking Capital (RM324,573,190) (RM348,172,168) (RM369,073,093)

 

Negative working capital occurs when a business exceeds its current obligations. This implies that obligations payable within one year are greater than existing monetizable assets during the same time period. A purchaser generally sees negative working equity as a harmful goal, since it means extra equity must be operated by the company following closure. In fact, a buyer wants a working capital ratio between 1 and 1.5 times, which implies that for every RM of current obligations, at least one RM of current assets is available. That ensures that the buyer can produce enough cash for the supplier and payroll obligations in the near run.

Account  Receivable Turnover Ratio

Receivable Turnover Ratio = Sales/Avg. Account Receivable

  2017 2018 2019
Sales 17,626,496 17,381,968 17,795,879
Avg A/c Receivable 37,846,904.5 38,903,541 40,987,500
Receivable Turnover Ratio 0.47 0.45 0.43

 

The ratio dropped between 2017 and 2019. The number of occurrences in the year 2017 was 0.47, in 2018 it was 0.45, and in 2019 it was 0.43. In conclusion, the business has a lower relationship, meaning that its credit rules should be re-evaluated to guarantee that the credit that the company receives does not accrue interest and is collected promptly.

Debt Ratio

Debt Ratio = Total Liabilities/Total assets

  2017 2018 2019
Total Liabilities 456,693,097 481,501,072 515,776,579
Total Assets 506,499,532 534,089,043 573,245,655
Debt Ratio 90.16% 90.15% 89.97%

 

The CIMB Bank debt ratio is the top of 3 years at 90,16 percent in 2017, but still maintains the debt ratio of 90 percent between 2017 and 2018. The debt ratio fell to 89.97% in 2019, with the overall asset growth. As the debt ratio increases, the greater the corporate risk. To prevent the risk result, the firm has to maintain a constant or reduced debt ratio, because it has the high ratio.

Debt Equity Ratio

Debt Equity = Total liabilities/Total equities

  2017 2018 2019
Total Liabilities 456,693,097 481,501,072 515,776,579
Total equity 49,806,435 52,587,971 57,469,076
Debt Equity 9.16 9.15 8.97

 

The quantity of debt used in relation to the capital supplied by the business in respect of CIMB Bank equity debt is very hazardous because of its 9.92-equity ratio and its lowest in 2019 at 8.97. The bank’s bankruptcy risk was greatest in 2017, with a ratio of 9.16 being much too high, but the ratio remains below 8.97 in 2019.

Net Profit Margin

Net Profit Margin = Net Profit after taxes/Net Sales*100

  2017(RM in Million) 2018(RM in Million) 2019(RM in Million)
Net Profit 6,109 4,884 3,913
Net Sales 17,626 16,065 15,395
Net Profit Margin % 34.65% 30.40% 25.42%

 

In 2017, the proportion rose by 34.65%. In 2018 the proportion dropped to 30,40% and fell to 25,42% in 2019. The trend has already dropped till 2019 from 2017 to 2019. The business is therefore still able to manage its net sales to make good profit of its assets in terms of sales, assets, operational costs and equity for 2017 to 2019.

Maybank Ratios

Current Ratio

  2017 2018 2019
Current Assets 81,019,304 88,600,804 88,889,122
Current Liabilities 354,800,054 270,633,207 261,777,965
Current Ratio 0.23 times 0.33 times 0.34 times

The current ratio is too low in most sectors as it approaches 1. At this stage when the obligations owing to the debt can hardly be met by Maybank. The current Maybank Berhad ratio indicates in three years that the current ratio is less than 1. With an actual ratio below 1 the liquid assets of Maybank do not suffice to repay their short-term obligations.

Quick Ratio

  2017 2018 2019
Quick Assets 81,019,304 88,600,804 88,889,122
Current Liabilities 354,800,054 270,633,207 261,777,965
Quick Ratio 0.23 times 0.33 times 0.34 times

 

The result 1 is considered the normal quick ratio in three years between 2017 and 2019. It shows that the business is fully prepared with sufficient assets to fulfil its existing obligations instantaneously. A business with a fast-to-face ratio of less than 1 may not be able to completely disburse its existing obligations in the near future, while a company with a rapid ratio of less than 1. For example, a fast ratio of 1.5 implies that a firm is equipped with 1.50 liquid assets to cover 1 of its current obligations.

Networking capital

  2017 2018 2019
Current Assets 81,019,304 88,600,804 88,889,122
Current Liabilities 354,800,054 270,633,207 261,777,965
Networking Capital (RM273,780,750) (RM182,032,404) (RM172,888,843)

The negative work capital occurs when a business exceeds its current obligations. This implies that obligations payable within one year are greater than existing monetizable assets during the same time period. A purchaser generally sees negative working equities as harmful in a goal, since it means extra equity must be operated by the company following closure. In fact, a buyer wants a working capital ratio between 1 and 1.5 times, which implies that for every RM of current obligations, at least one RM of current assets is available. That ensures that the buyer can produce enough cash for the supplier and payroll obligations in the near run.

Account Receivable Turnover Ratio

  2017 2018 2019
Sales 45,580,310,000 47,319,853,000 52,844,964,000
Avg A/c Receivable 656,581,847,000 694,215,282,500 730,441,250,500
Receivable Turnover Ratio 0.07 0.07 0.07

The accounting turnover ratio is a ratio of efficiency and is an indication of the financial and operational success of the business. A high ratio is beneficial since it shows the efficiency of the company’s receivables collection. A high turnover in accounts payable also shows that it has a high-quality client base capable of rapidly paying its obligations. A high ratio may also indicate that the business has a cautious lending strategy. A low accounting turnover ratio, on the other hand, shows that the business is bad in collecting. The business may be responsible for extending its credit conditions to clients who are non-creditable and who face financial problems. It is nevertheless important to compare the relationship of a business in its Maybank to that of its rivals or comparable companies. If a business ratio is considered in relation to comparable companies, the company’s performance will be analyzed more meaningfully than an abstractive calculation. For example, if the average ratio of its Maybank is two, a business with a four-to-one ratio rather than a “high” figure would seem to be much superior.

Debt Ratio

  2017 2018 2019
Total Liabilities 447,414,273 391,024,031 394,296,969
Total Assets 509,666,821 456,613,298 456,613,298
Debt Ratio 87.79% 85.64% 84.92%

Debt Ratio for Maybank in 2017 are the highest with 87.79%% ratio and the lowest ratio is in 2019 with 84.92%. The ratio did not have too much changed in ratio but the debt ratio still higher and can risk the company. The percentage of debt ratio keep decreasing and it reduce the risk of the company every year.

Debt equity Ratio

  2017 2018 2019
Total Liabilities 447,414,273 391,024,031 394,296,969
Total Assets 62,252,548 65,589,267 70,063,377
Debt Ratio 7.18% 5.96% 5.62%

 

Debt of Equity of Maybank in 2017 are highest ratio with 7.18 and in 2019 are the lowest with 5.62. Maybank have the higher risk because of the ratio are too high with 7.18. However, the ratio keeps decreasing until 2019 to 5.62. The ratio decreases because the total equity keeps increasing by year until 2019 and the highest equity and the liabilities keep decrease until 2018 and increase in 2019 but the ratio still lower than before and it can reduce the risk.

Net Profit Margin

  2017(RM in Million) 2018(RM in Million) 2019(RM in Million)
Net Profit 10,098 10,901 11014
Net Sales 45,580 47,320 52845
Net Profit Margin % 22.15% 23.04% 20.84%

 

In 2018 the percentage rose to 23.04% and decrease into 20.84% on 2019. From 2017 until 2019 already showed that the trend rose within year by year until 2019. Thus, the company is still able to manage net sales achieved to utilize its assets well to generate profit relative to revenue, assets, operating cost, and shareholders’ equity during 2017 until 2019.

  1. Discuss and highlights the issues of each company for the period 2017-2019 and relate to company performance and might give the appropriate suggestions on the companies’ issues and performance

Maybank Berhad’s current ratio is superior to Berhad’s current one. For Maybank Berhad, the current ratio is 0.27 times greater than 0.13 times the current CIMB Berhad ratio. The current ratio of both businesses is lower than 1. The two businesses are thus unable to meet their existing obligations.

Maybank Berhad’s quick ratio is greater than that of CIMB Berhad, since the quick ratio is larger for Maybank Berhad than for CIMB Berhad. The ratio is 0.27 times for Maybank Berhad, and 0.13 times for CIMB Berhad. Since the ratio is below 1 quickly, the present obligations of Maybank and CIMB cannot be paid quickly.

Maybank has a debt ratio of 84.92% and 89.97% for CIMB bank. The debt rate for Maybank is better than for CIMB because the greater the debt rate, the lower the business risk, and the lower the Maybank relationship between Maybank and CIMB in 2019. The lower the risk.

Equity Maybank’s debt is 5.62 and CMB Bank is 8.97 debt-to-equity. Maybank’s debt to equity is better than CIMB’s equity debt. More equity debt and greater risk for businesses. The smaller the amount of debt, the better for the enterprise. CIMB is riskier since CIMB’s equity debt is greater than Maybank.

CIMB Group Holdings Berhad’s net income margin is better than Maybank’s net income margin. CIMB Group Holding Brahad’s net profit margin is 25.42%, while Maybank’s net profit margin is 20.84%. As the profit margin rises, the better the profit generated by the business. As the CIMB Group’s net profit margin is greater than that of Maybank, Berhad is therefore stronger at achieving net profit than the Maybank Group. This indicates that Berhad showed excellent performance for CIMB Group, whereas Maybank exhibited poor performance.

Recommendations

Berhad CIMB Group Holding must subject itself to the risk of credit. To achieve the goal, the CIMB Group may reinforce and enhance the status of its clients’ loans. For example, CIMB Group should explicitly examine the financial statements of the client before providing a loan to a customer. CIMB Group may examine clients’ financial statements and identify customer problems and prevent risks. CIMB Group should also provide its employees with training. The training should include instruction on how employees monitor and respond to a client who does not repay the loan on time. It helps the business to minimize load offs and losses using this training. If any issue has occurred that cannot be avoided, the CIMB Group may compensate for damages via credit insurance.

We believe Maybank does as well as we do now. This is shown every year through their accomplishments and accolades. Our aim is to keep them firm to ensure that they are a successful bank in Malaysia. What we can offer is Based on our findings, financial goods, and services such as commercial and offshore banking, offshore trust services, general insurance, Islamic banking, investment banking, and unit trust management are among the strengths they should continue to retain. This is a whole range of goods and services and is what makes Maybank so handy for its consumers. We are certain that in Malaysia they may be the number one financial institution if Maybank succeeds in preserving and enhancing these kinds of goods and services. And they should not only become ASEAN’s top financial company, but also. They may also enhance their online banking services in order to offer better services. Online banking is becoming popular since it may save a great deal of time. There is no need for it at the bank and the processing time is quicker. We may do it wherever and whenever we want by utilizing online banking services, as long as there is internet connectivity. We now perceive that, as a customer, Maybank is not doing well in the area of online banking, particularly in its app, where it is not user-friendly. Maybank should focus on this subject if it wants to remain relevant in the market.

On the basis of our research, we know that it will lead to a big issue with a large liquidity risk. CIMB Group Holding Berhad should thus manage its assets as much as possible to minimize liquidity risk. To this end, the CIMB Group may maintain the risk-weighted capital ratio or persist in raising it. The business may do more operations with big cash via a high risk-weighted capital ratio. CIMB Organization Berhad may attempt to come up with a small group to deal with the company’s liquidity alone. CIMB Group would thus be useful to know more about its liquidity situation. In addition, holding too much risky property may increase the risk of liquidity. Thus, the CIMB Group should minimize risks to prevent losses and funds being stuck. Keeping a strong connection with other rivals also avoids risks. CIMB Group and Maybank, for example, have an excellent connection. Maybank may want to assist CIMB to fix the issue if anything goes wrong for the CIMB Group.

CIMB Group Holding Berhad must do a market study to learn about market trends and the reasons for fraud that may influence the market pricing conditions. The CIMB Group can thus respond quicker to market capture. The CIMB Group has to be aware of economic developments or events that may affect the market due to the risk of interest rates. This helps the CIMB Group prevent a catastrophic scenario owing to interest rate fluctuations.

Operational risk is a bad situation which many companies are experiencing. CIMB Group Holding Berhad, and Maybank must provide training for their employees in order to prevent this type of issue. Through training, their employees may fully grasp CIMB Group’s operational systems. Human errors may thus be minimized. The qualified staff can administer the information and networking systems. This is because qualified employees have the opportunity to solve any problems in the data and networking systems and prevent massive losses. In addition, from time to time, the ATM should always perform appropriate maintenance on the machine. It is necessary to avoid mistakes, and if the ATM maker has broken, it can fix it in time.

  1. Perform a comparative analysis for both companies’ performance and give a conclusion of this case study analysis.

CIMB Bank

CIMB Bank Comparative analysis for Income Statement for year 2017-2019

2018

%

2017

%

Net Interest income

Net Non-Interest Income

Operating Income

Overheads

Profit before expected credit losses.

Expected credit losses on loans, advances, and financing.

Expected credit losses written back for commitment and contingencies.

Other expected credit losses made.

Share of results of joint ventures and associates.

Profit before taxation and zakat

Net profit attributable to owners of the Parent

6.3%

-6.2%

2.4%

14.1%

-9.2%

14.5%

 

71.4%

162.7%

-8.8%

-17.0%

-18.3%

-2.5%

1.1%

-1.4%

-5.2%

2.7%

-35.8%

 

-30.0%

-23.4%

161.5%

17.9%

24.8%

CIMB Bank Comparative analysis for Balance Sheet for year 2017-2019

2018

%

2017

%

Assets

Cash and short-term funds

Deposits and placements with banks and other financial institutions

Financial investment portfolio

Loans, advances, and financing

Other assets (including intangible assets)

 

6.3%

 

9.7%

9.9%

6.9%

5.85

 

-14.7%

 

7.9%

11.7%

6.5%

4.1%

Total assets 7.35 5.4%
Liabilities

Deposits from customers

Deposits and placements of banks and other financial institutions

Other borrowings

Bonds, sukuk and debentures

Subordinated obligations

Other liabilities

 

5.8%

 

17.0%

12.4%

32.9%

0.3%

6.9%

 

6.4%

 

2.4%

-7.5%

-7.9%

7.6%

6.2%

Total liabilities 7.1% 5.4%

Maybank

Maybank Comparative analysis for Income Statement for year 2017-2019

2018

%

2017

%

Operating revenue

Interest income

Interest expense

Net interest income

Dividends from subsidiaries and associates

Other operating income

Net operating income

Overhead expenses

Operating profit before impairment losses

Allowances for impairment losses on loans, advances, financing and other debts, net

Writeback of/(allowances for) impairment losses on financial investments net

(Allowances for)/writeback of impairment losses on financial investments net

Operating profit

Profit before taxation and zakat

Taxation and zakat

0.84

-7.83

-3.96

-1164

52.40

-5.44

0.04

-13.52

8.34

 

156.96

 

-164.94

 

-162.50

-3.81

-3.81

-21.14

7.41

8.49

18.57

0.13

24.67

11.34

6.27

-1.28

11.48

 

-37.26

 

-933.29

 

18.98

18.98

17.15

Profit for the financial year -0.39 19.35

 

Maybank Comparative analysis for Balance Sheet for year 2017-2019

2018

%

2017

%

ASSETS

Cash and short-term funds

Deposits and placements with financial institutions

Financial assets purchased under resale agreements.

Financial investments at fair value through profit or loss

Financial investments at fair value through other comprehensive income

Financial investments at amortized cost

Loans, advances and financing

Loans, advances and financing to customers

Derivative assets

Other assets

Statutory deposits with central banks

Investment in subsidiaries

Interest in associates and joint ventures

Property, plant and equipment

Intangible assets

Deferred tax assets

 

19.30

20.80

19.09

44.85

 

98.06

42.52

13.77

-2.87

47.11

-61.53

-18.66

-3.59

-66.28

-26.07

-7.48

-1.00

 

-12.27

9.48

-50.70

12.89

 

-94.14

-0.96

9.70

-34.92

42.57

0.00

-10.68

-36.47

9.58

Total assets 1.70 -10.41
LIABILITIES

Deposits from customers

Investment accounts of customers

Deposits and placements from financial institutions

Obligations on financial assets sold under repurchase agreements.

Derivative liabilities

Financial liabilities at fair value through profit or loss

Bills and acceptances payable

Other liabilities

Recourse obligation on loans and financing sold to Cagamas.

Provision for taxation and zakat

Borrowings

Subordinated obligations

Capital securities.

Total Liabilities

Equity attributable to equity holders of the Bank

Share capital

Retained profits.

Reserves

Share premium

Share held-in-trust

Non-controlling interests

 

-4.86

-3.00

 

33.04

42.33

-23.23

-21.75

8.33

 

-1.36

-100.00

39.26

-0.01

-19.93

0.84

 

3.28

5.70

47.75

 

22.43

40.63

 

309.81

3.61

55.15

-55.74

-56.59

 

0.24

-79.32

-13.52

-2.19

-43.81

-12.60

 

5.64

6.11

-3.76

-100.00

Total liabilities and shareholders’ equity 1.70 -10.41

Conclusion

Finally, we can observe that both Maybank and CIMB have a very good company performance and a brilliant future in the service field. Since Maybank is, nevertheless, one of Malaysia’s oldest banks and Malaysia’s first bank, Maybank seems to have done a decent and better job than the bank CIMB. Today, both Maybank and CIMB are major banks that provide different types of Islamic and conventional goods in Malaysia. We personally think they can develop better, produce more Islamic goods, and ultimately become Asia Pacific’s major financial institution that provides customers with more Islamic items.

 

Appendix

CIMB BANK FINANCIAL STATEMENTS

MAYBANK FINANCIAL STATEMENTS

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