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Over the past five years, Maybank has demonstrated consistent financial growth and maintained its position as one of the top banks in Malaysia and Southeast Asia.

Total Assets: Maybank's total assets grew steadily from approximately RM 835 billion in 2019 to an estimated RM 1.02 trillion in 2023, reflecting its solid balance sheet and strong regional expansion.

Revenue Trends: The group’s total income remained relatively stable, hovering around RM 51–53 billion annually. While there was a slight dip in 2020 due to the COVID-19 pandemic, revenue recovered in subsequent years, supported by improved loan growth and digital banking initiatives.

Market Position: Maybank consistently ranks as the largest bank in Malaysia by total assets and among the top five banks in ASEAN. It holds a dominant share in retail and Islamic banking and is recognized for its strong digital banking platform and regional connectivity.

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Maybank, officially known as Malayan Banking Berhad, was founded in 1960 and is headquartered in Kuala Lumpur, Malaysia. It operates within the banking and financial services industry, offering a wide range of core services such as retail banking, investment banking, Islamic banking, asset management, and insurance. With a strong presence in Malaysia, Maybank has expanded its operations to over 20 countries, with a significant footprint across Southeast Asia.

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https://www.maybank.com/iwov-resources/documents/pdf/annual-report/2024/Maybank-AR2024-Financial-Statements.pdf

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https://www.cimb.com/content/dam/cimb/group/documents/investor-relations/annual-reports/2024/cimb-financial-statement-2024.pdf

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Maybank vs CIMB: Profitability Ratio Analysis

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Maybank vs CIMB: Profitability Ratio Analysis

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(a) Net Profit Margin

(b) Return on Equity (ROE)

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Maybank vs CIMB: Liquidity Ratio Analysis

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Maybank vs CIMB: Liquidity Ratio Analysis

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FORWARD VIEW

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CIMB Bank is chosen as the competitor for comparison. It is also a major Malaysian banking group with a strong presence across the ASEAN region. Similar to Maybank, CIMB offers a broad range of financial services, including consumer banking, investment banking, and Islamic finance, making it a relevant benchmark for performance and risk comparison.

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1. Credit Risk

2. Internet Rate Risk

3. Operational/Cybersecurity Risk

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Definition:

Credit risk is defined as the possibility of loss because borrowers cannot pay their financial obligations.​

Impact on Maybank:

NPL ratio of Maybank fluctuated during the period of the COVID 19 pandemic. The NPL ratio in March 2020 was 2.02%, as borrowers were affected by economic challenges during lockdowns and recessions.

Nevertheless, Maybank’s NPL ratio improved from 2019 to 2023 and its loan loss provision coverage ratio went from under 100% to 124.9% in 2023 which shows the enhanced credit risk management and financial resilience of the bank.

https://www.moomoo.com/my/learn/detail-decode-maybank-s-earnings-can-the-bank-sustain-its-steady-performance-117050-240202074?utm_source=chatgpt.com

https://www.cliffsnotes.com/study-notes/22157886?utm_source=chatgpt.com

Real-life Example:

This shows that Maybank had improved its ability to absorb potential loan defaults, giving a better financial performance.

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[November.2024]Decode Maybank’s earnings: Can the bank sustain its steady performance?

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In examining Maybank’s historical performance through moomoo’s charts, the term ‘steady’ succinctly captures its trajectory. Over the past 13 years, since 2011, Maybank has posted gains in 10 years, with an overall rise of roughly 123%, and an average annu

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Definition:

Interest rate risk is potential net interest income and economic value of assets and liabilities to change of the bank financial condition because of volatility in interest rates.​

Impact on Maybank:

The compression in Maybank’s net interest margin (NIM) was 27 basis points lower on a year on year basis, to 2.12 per cent, mainly from higher funding costs from interest rate hikes and increased deposit competition.

https://maybank.listedcompany.com/newsroom/Maybank_Integrated_AR_2023_Part_2_20240327.pdf?utm_source=chatgpt.com

The interest rate sensitivity of earnings can also influence the bank’s profitability as interest rates influence the cost of funds and the yield on earning assets.​

Real-life Example:

According to Maybank’s Basel II Pillar 3 Disclosure Report, the changes in interest rates could cause its earnings and capital to change by ±200 basis point.

https://www.maybank.com/iwov-resources/documents/pdf/annual-report/2023/Maybank-2023-Basel-II-Pillar-3-Disclosure.pdf?utm_source=chatgpt.com

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Definition:

Operational risk encompasses potential losses due to inadequate or failed internal processes, people, systems, or external events. The sub domain of Cybersecurity risk is threats to information systems and the integrity of data.​

Impact on Maybank:

Maybank was hit by a threat actor in July 2024 who breached its online banking platform Maybank2u and supposedly stole sensitive customer data. Maybank denied it and such incidents could erode customer trust, prompting more investment in cybersecurity.

Although cyber threats as well as system failures can cause financial losses, regulatory penalties and reputational damage, they cause operational disruptions as well.

https://cybersecurityasia.net/maybank-database-leaked-again-or-did-it/?utm_source=chatgpt.com

https://www.maybank2u.com.kh/en/announcements/2020/fd_rate_change.page?utm_source=chatgpt.com

Real-life Example:

The data breach was alleged to have occurred and, in a bid to reinforce its commitment to data security, Maybank backed its claim stating that robust cybersecurity frameworks are crucial in maintaining operational integrity.

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Maybank Database Leaked (Again)?! Or Did It??

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Maybank denies data breach after online forum post claims leak of user information, raising concerns about online banking security in Malaysia.

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Maybank vs CIMB: Leverage Ratio Analysis

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Maybank vs CIMB: Leverage Ratio Analysis

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1. Debt-to-Equity Ratio

2. Equity Multiplier

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In terms of financial, leverage refers to a strategy that companies or individuals used to purchase an asset or invest by borrowed money (debt) and intend to expand their business or generate potential returns. For companies, financial leverage allows them to get a greater profit when the return of assets is higher than the cost of borrowing interest. The greater profit can also lead to a higher return of shareholders’ equity. In addition, this strategy allows companies can save owns capital to make large scale investments by using debts, which allows them to have more flexibility to keep parts of the own capital for others investment or operations. Even this strategy is giving advantage of getting greater profit and flexibility, higher level of debts can also increase financial risks when having loss on investment or during economic downturns (Rachel Christian, 2024).

Leverage ratio is an indicator to measure the extent that the companies use the debts financing. The common leverage ratios includes Debt-to-Assets ratio, Debt-to-Equity ratio and Equity Multiplier. The high or low leverage ratio can reflect the financial structure and risks of the company. A higher leverage ratio means that the company has potential to get a greater profit but also having higher financial risks (Hayes, 2024b).

For banking sector, it usually highly leveraged due to their profit model is to invest or provide loan by absorbing customer’s deposits and earn from return of investments and loan interest. In order to maintain the stability of overall financial systems, banking regulations has implement framework like Basel III to restrict how much banks can lend relative to the capital that invests in its own assets (Hayes, 2024a). As there is difficulty to understand if a bank is overly leveraged by using common leverage ratios It is necessary for banks to monitor its financial leverage to ensure there is sufficient capital to absorb losses and remain the ability of repayment (Sean, 2021).

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D/E ratio measures the ratio of a company’s total liabilities to its shareholders’ equity. The ratio is calculated by the company’s total liabilities divided by its shareholders’ equity. A higher ratio suggests that the company is more rely debts than shareholders’ equity to finance its operations, which could lead to higher risk (Hayes, 2024b).

Formula:

Debt-to-Equity Ratio = Total Liabilities ÷ Shareholders’ Equity​

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Overall, CIMB Bank has better performance than Maybank in terms of financial stability and risk management. Although Maybank’s higher D/E ratio may indicate a aggressive growth strategies, it also shows a higher financial risks concern especially during economic downturn. Beside, CIMB Bank’s consistent D/E ratio suggests a more flexible financial structure to ensure long-term sustainability and lower the financial risks.

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The equity multiplier is a financial ratio that measures the financial leverage by comparing its total assets to shareholders’ equity. It indicates the proportion of assets financed by equity rather than debt. A high equity multiplier indicates the company uses a significant amount of debt to finance its assets, which can increase financial risk (Ganti, 2024).

Formula:

Equity Multiplier = Total Assets ÷ Total Equity​

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By compare the growth of total assets and equity, Maybank has better performance than CIMB Bank in debt financing to expand its assets or investment as it generate more assets by per RM 1 equity invested. This strategies allows Maybank has potentially to get higher profits by using leverage efficiently. However, the high leverage by debt has also raise concerns on financial risks such as loss in investment and insufficient capital.

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1. Hayes, A. (2024a). Leverage ratio: What it is, what it tells you, how to calculate. [online] Investopedia. Available at: https://www.investopedia.com/terms/l/leverageratio.asp [Accessed 14 Apr. 2025].

2. Hayes, A. (2024b). What Is Financial Leverage, and Why Is It Important? [online] Investopedia. Available at: https://www.investopedia.com/terms/l/leverage.asp [Accessed 6 Apr. 2025].

3. Rachel Christian (2024). Financial leverage: What it is and why it matters. [online] Bankrate. Available at: https://www.bankrate.com/investing/financial-leverage/ [Accessed 6 Apr. 2025].

4. Sean, R. (2021). How do leverage ratios help to regulate how much banks lend or invest? [online] Investopedia. Available at: https://www.investopedia.com/ask/answers/111414/how-do-leverage-ratios-help-regulate-how-much-banks-lend-or-invest.asp [Accessed 14 Apr. 2025].

5. Ganti, A. (2024). What Is the Equity Multiplier? [online] investopedia.com. Available at: https://www.investopedia.com/terms/e/equitymultiplier.asp [Accessed 16 Apr. 2025].

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•A financial key used to measure a company’s ability to generate profits relative to its revenue, assets, or equity. (Diana and Maria, 2020)

•Why it is important?

- Show how well a company manages its expenses to generate profits.

- Help investors and managers to assess financial health and performance.

- Guide strategic decisions such as cost control, pricing, and investment.

- Allow comparison between companies or across time periods.

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To show the percentage of revenue remaining as profit after all expenses.

Higher % : More effective in cost control and stronger pricing power

Lower % : High expenses, weak pricing, or operational inefficiencies.

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To measure profit generated from shareholders' investments (equity).

Higher % : Effective use of shareholder funds to generate earnings.

Lower % : Poor profitability or excessive equity base.

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1. Diana, H.I. and Maria, M.M., 2020. The importance Of profitability indicators In assessing The financial performance Of economic entities. The Annals of the University of Oradea, 29(2020), p.219.

2. Xero. (n.d.). What Are Profitability Ratios. [online] Available at: https://www.xero.com/my/guides/profitability-ratios/.

3. The Edge Malaysia. (2025). CIMB will need to do some heavy lifting in first half of six-year roadmap to achieve ROE target — analysts. [online] Available at: https://theedgemalaysia.com/node/746949  [Accessed 09 Apr. 2025].

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Past Performance: Maybank's revenue increased from RM51.0 billion in 2021 to RM56.6 billion in 2023, indicating consistent top-line growth (Maybank, 2024).

Interest Income Growth: Rising OPR and solid loan book performance boost net interest income. In 2023, Maybank recorded a net interest income of RM14.3 billion (Maybank, 2024).

Digital Banking Impact: MAE by Maybank has significantly reduced operational costs and enhanced customer acquisition. Over 10 million users are actively engaged with the MAE app (The Edge, 2024).

2025-2027 Forecasts:

Revenue growth: 4–6% annually

Net profit CAGR: 5–7%

ROE: Expected 9–11%

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Digital Expansion: Maybank’s investment in AI-driven customer service and digital onboarding gives it an edge in acquiring tech-savvy millennials and SMEs (McKinsey, 2023).

ASEAN Market Leverage: Maybank is a market leader in Malaysia and has growing operations in Indonesia, the Philippines, and Singapore — regions projected to grow at 4.5% annually post-pandemic (ADB, 2024).

Green Financing: Maybank has pledged RM80 billion in sustainable financing by 2025, targeting projects in clean energy and low-carbon transport (Maybank ESG Report, 2024).

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Macroeconomic Risks: A possible global economic slowdown could reduce loan demand and increase default risks. Inflationary pressures and US-China tensions may further strain the financial sector (IMF, 2024).

Regulatory Burdens: Compliance with Basel III requirements and Bank Negara Malaysia’s liquidity coverage ratio puts pressure on capital reserves and operating costs (BNM, 2023).

Fintech Disruption: Startups offering P2P lending and digital wallets (like Boost, BigPay) are intensifying competition, especially among younger customers.

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Maybank’s future looks promising with strong financials and strategic growth paths in digital banking and ESG sectors.

However, to sustain its leadership, the bank must remain agile, invest in tech, and stay compliant with evolving regulations.

Proactive risk management and continued innovation will be key to navigating future challenges.

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Asian Development Bank (2024) Asian Development Outlook 2024. Available at: https://www.adb.org/publications/outlook-2024 (Accessed: 25 April 2025).

Bank Negara Malaysia (2023) Regulations and Guidelines. Available at: https://www.bnm.gov.my/regulations (Accessed: 25 April 2025).

Bank Negara Malaysia (n.d.) Monthly Statistical Bulletin. Available at: https://www.bnm.gov.my/statistics (Accessed: 25 April 2025).

IMF (2024) World Economic Outlook: April 2024. Available at: https://www.imf.org/en/Publications/WEO (Accessed: 25 April 2025).

KPMG (2023) Fintech Malaysia Report 2023. Available at: https://home.kpmg/my/en/home/insights/2023/07/fintech-malaysia-report.html (Accessed: 25 April 2025).

Maybank (2024) Annual Report 2024: Financial Statements. Available at: https://www.maybank.com/iwov-resources/documents/pdf/annual-report/2024/Maybank-AR2024-Financial-Statements.pdf (Accessed: 25 April 2025).

Maybank (2024) Sustainability Report 2024. Available at: https://www.maybank.com/en/sustainability/sustainability-reports.page (Accessed: 25 April 2025).

Maybank (2024) Group Strategy Overview. Available at: https://www.maybank.com/en/about-us/who-we-are/strategy.page (Accessed: 25 April 2025).

McKinsey & Company (2023) The Digital Future of Banking. Available at: https://www.mckinsey.com/industries/financial-services/our-insights/the-digital-future-of-banking (Accessed: 25 April 2025).

S&P Global (2024) Banking Industry Country Risk Assessment Update: January 2024. Available at: https://www.spglobal.com/ratings/en/research/articles/240124-banking-industry-country-risk-assessment-update-january-2024-12894366 (Accessed: 25 April 2025).

The Edge Markets (2024) Maybank Sees Growth Through MAE and Digital Banking Strategy. Available at: https://www.theedgemarkets.com (Accessed: 25 April 2025).

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How strong is the organization's lending power?

How much risk are they taking for their returns?

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How easily can the organization pay short obligations?

How liquid are their short-term assets?

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How much core capital is available to cover for potential losses?

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To maintain a solid financial foundation during economic changes, the bank should continue careful lending practices. Situation tests conducted on a regular schedule and active monitoring of loan portfolios are important.

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To address net interest margin pressure, Maybank must work harder to improve its funding situation. It can grow current plus savings account deposits that cost little along with it can look into new deposit offerings. At the same time improvements to asset yields are helpful. This involves repricing some loans and growing lending areas with better margins. Doing this helps reduce margin strain. Entering fee-based income streams besides online finance areas is something to consider. That cuts reliance on interest income and helps keep earnings steady over time.

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Maybank needs to improve its cybersecurity setup. It can spend more money on better systems that find possible dangers. Regular tests that simulate hacker activity plus improved ways to deal with security problems are also needed. In addition it is important to talk openly with customers and follow rules for data protection besides security. A cybersecurity plan that is ready for action and dependable will reduce risks to operations. Such a plan will protect customer trust also keep regulators satisfied.