Formed in 1960, Malayan Banking Berhad (Maybank) operates more than 2,400 branches across 20 countries including all 10 nations in Southeast Asia. Presently, it is the fourth largest banking group in Southeast Asia. As of 22 June 2018, Maybank is worth RM100.4 billion in market capitalization and is the only stock in Malaysia that has exceeded the RM100 billion mark.
In this article, I’ll bring a detailed account of Maybank’s past performance over the last 10 years and its outlook toward the near future. Therefore, here are the 12 things you need to know about Maybank before you invest.
1. Maybank has achieved a CAGR of 12.6% in loans, advances and financing assets over the last 10 years. It has increased from RM148.6 billion in December 2007 to RM485.6 billion in December 2017. This is due to growth in lending in key segments such as purchases of residential and non-residential properties, hire purchases, and working capital during the period.
Source: Maybank Annual & Quarterly Reports
2. Maybank has reported consistent growth in net interest income over the last 10 years. It has increased steadily from RM4.5 billion in 2007 to RM12.2 billion in 2017. This is because Maybank’s increase in loans, advances and financing assets have exceeded a marginal decline in its net interest margins during the period. The dip in net interest margin in 2010-2012 was a result of rising competition for both loans and deposits during the period. Since 2013, Maybank has kept its net interest margin stable at 2.3-2.5%.
Source: Maybank Annual Reports
3. Maybank has also achieved consistent growth in non-interest income over the last 10 years. It has increased steadily from RM2.7 billion in 2007 to RM6.0 billion in 2017. The growth was mainly driven by Maybank’s Islamic Banking operations, and fees & commission-based income in the 10-year period.
Source: Maybank Annual Reports
4. As a result, Maybank has reported consistent growth in operating revenues over the last 10 years. It has risen from RM15.2 billion in 2007 to RM45.6 billion in 2017. This is directly contributed by steady growth in both net interest income and non-interest income as explained in Points 2 and 3.
Source: Maybank Annual Reports
5. Maybank’s earnings are dependent on the amount of impairment losses incurred on its loans, advances, and financing assets. For instance:
- 2009: Maybank incurred RM1.70 billion in impairment losses, a substantial increase from the amount incurred in 2007 and 2008. The hike in impairment losses exceeded its growth in operating revenues in 2009. As a result, Maybank reported RM692 million in shareholders’ earnings — the lowest made in the 10-year period.
- 2010-2014: Since then, Maybank has reduced its impairment losses. This is evident as impairment losses were under RM1 billion from 2011 to 2014. In tandem with rising operating revenues, Maybank recorded steady growth in shareholders’ earnings, increasing from RM3.8 billion in 2010 to RM6.7 billion in 2014.
- 2015-2016: Maybank incurred substantially higher impairment losses in 2015 and 2016. This cancelled Maybank’s continuous growth in operating revenues. As a result, Maybank’s shareholders’ earnings were maintained at RM6.50-7.00 billion a year in 2015 and 2016.
- 2017: Maybank incurred RM2.0 billion in impairment loss in 2017 which is a reduction from the RM2.8 billion incurred in 2016. As a result, Maybank has successfully increased its shareholders’ earnings from RM6.7 billion in 2016 to RM7.5 billion in 2017.
Source: Maybank Annual Reports
6. Maybank has reported continuous marginal decline in return on equity (ROE) since the financial year ended 31 December 2011. ROE dropped from 16.2% in 2011 to 10.9% in 2017. This is because Maybank’s growth in shareholders’ equity has surpassed its growth in shareholders’ earnings over the last five years. It is an effort of Maybank to be well-capitalized to meet the requirements of the implementation of Basel III in advance.
Source: Maybank Annual Reports
7. Maybank has huge fluctuations in net cash flows from operations. This is normal as banks have huge fluctuations in working capital. These include changes in customers’ deposits and changes in loans, advances and financing. As such, it is impossible to use the discounted cash flow method to estimate the intrinsic value of a bank stock. Excluding changes in working capital, I’ve discovered that Maybank has generated rising operating cash flows over the last 10 years. It increased from RM5.6 billion in 2008 to RM11.7 billion in 2017. In total, the total operating cash flows before working capital changes amounted to RM87.0 billion during the 10-year period.
Source: Maybank Annual Reports
8. Maybank has paid out RM36.6 billion in dividends to its existing shareholders over the last 10 years. At present, Maybank has a long-term dividend policy to pay out 40-60% of its net profits to shareholders. However, Maybank’s dividend payout ratio has actually averaged 75.0% a year from 2007 to 2016. This means, Maybank has paid out, on average, RM75 in dividends from every RM100 in shareholders’ earnings during the period. Thus, Maybank has the highest dividend payout ratio among all public-listed banking groups in Malaysia and Singapore. In 2017, Maybank declared and paid RM0.55 in dividends per share. Based on its 2017 dividend and closing share price on 14 June 2018 of RM9.60, its dividend yield is 5.7%.
Source: Maybank Annual Reports
9. Maybank maintained a healthy liquidity coverage ratio (LCR) of 133% in 2017. It is above the minimum requirement of 80% set by Bank Negara Malaysia. LCR is used to assess a bank’s resilience to withstand an acute liquidity stress scenario over a 30-day horizon. It is calculated by dividing the amount of high-quality liquid assets (HQLA) with net cash outflows over a 30-day period. HQLA is defined as liquid assets that can be easily and immediately converted into cash at little or no loss of value. A high ratio indicates that a bank has adequate HQLA to meet liquidity requirements for the next 30 days under a significant stress scenario.
10. Maybank maintained a healthy capital position with a total capital ratio (TCR) of 19.38% in 2017. It is above the total regulatory requirement of 9.25% set by Bank Negara Malaysia for 2017. The total regulatory requirement is the addition of 8.0% in minimum total capital and 1.25% in phase-in capital conservation buffer for 2017.
11. Maybank reported loan loss coverage of 71.5% in 2017, the lowest since 2008, and below the industry average of 82.9%. This means, in percentage terms, Maybank has set aside lower provisions to cover non-performing loans in comparison to most domestic banks in Malaysia in 2017.
Source: Maybank Annual Reports
12. In the mid-term, Maybank has identified five strategic objectives under Maybank 2020. They include:
- The Top ASEAN Community Bank. Maybank is strategically located to capture the continuous growth in the middle-income population across Southeast Asia. In 2018, Maybank will focus on stimulating revenue growth by enhancing its product propositions, manage costs, and mitigate risks through sound asset quality management.
- The Leading ASEAN Wholesale Bank Linking Asia. Presently, Maybank is the market leader in corporate lending, trade finance, and corporate deposits. In 2018, Maybank will focus on growing income from transactional banking activities in Southeast Asia, and expanding its wealth & investment management solutions to its customers across the region.
- The Leading ASEAN insurer. Maybank is the market leader in combined general insurance and takaful business in Malaysia. It has expanded its presence to Singapore and the Philippines. For 2017, Maybank intends to strengthen its bancassurance relationship between Etiqa and Maybank, and drive productivity by leveraging on digital tools such as Motortakaful.com and Etiqa’s direct sales portal.
- The Global Leader in Islamic Finance. Maybank is a leading Sukuk arranger as it ranked top two in the Global Sukuk League Table in 2016. In 2018, Maybank intends to grow its Islamic Wealth Management Portfolio and to further develop Islamic Trade Finance and Islamic Capital Market.
- Digital Bank of Choice. In 2016, Maybank launched MaybankPay, the first mobile wallet in Malaysia. For 2017, Maybank intends to explore more innovation digital solutions and to nurture regional growth in fintech to support its aspiration for Maybank 2020.
- Digital Bank of Choice. In 2016, Maybank launched MaybankPay, the first mobile wallet in Malaysia. In 2017, Maybank launched Maybank Sandbox to encourage collaboration with the fintech industry in ASEAN and around the world. In 2018, Maybank intends to maximize online customer engagement, especially in the areas of digital payments and lending, and continue engaging fintechs on potential collaborations.
The fifth perspective
In summary, Maybank has built a steady track record of delivering growth in operating revenues and shareholders’ earnings over the last 10 years. The bank is now intensifying its efforts on going digital to remain relevant, maintain its costs, and to pursue new revenue streams in the near future. Moving ahead, it strives to further cement its position as one of the leading banking groups in Southeast Asia.
FAQs
As mentioned earlier Maybank has two major weaknesses namely focusing mainly on Malaysia and Singapore and revenue only generated from retail banking and Islamic banking products and services.
How to use Maybank to invest? ›
Click on Buy (the green button) to place order. On the pop-up screen, type in the quantity of shares you want to purchase. Type in your desired purchase value, or select one of the predefined values in the dropdown list. If you have more than one trading account.
Is Maybank good for dividend? ›
Malayan Banking Berhad is a dividend paying company with a current yield of 6.6% that is well covered by earnings.
Why choose Maybank to invest? ›
Leader in Cross Border Investment Banking & Advisory
We are ranked #1 in the ASEAN Investment Banking League Table (2011 – 2021) and #5 for the ASEAN M&A League Table (2011 – 2021) behind global peers. We are also ranked in the top ten of the Bloomberg League Table for ASEAN Sustainable Bonds.
How stable is Maybank? ›
RAM Ratings reaffirms AAA financial institution ratings of Maybank and its banking entities. Published on 09 Dec 2022. RAM Ratings has reaffirmed the AAA/Stable/P1 financial institution ratings (FIRs) of Malayan Banking Berhad (Maybank or the Group) and its banking subsidiaries.
Who are the main competitors of Maybank? ›
Maybank's competitors include Bank of America, Scotiabank, DBS Bank, UniCredit. Maybank ranks 9th among 36 active competitors.
How do I cash out Maybank? ›
Just launch your MAE app and scan the QR code on the ATM screen. Authorise with your biometric or 6-digit app PIN, key in the amount you wish to withdraw, then verify with Secure2u, and you're done!
How much is the brokerage fee in Maybank? ›
If you register using maybank2u.com, kindly contact Maybank Customer Care at 1 300 88 6688.
...
ABOUT US & CONTACT.
| Brokerage rates |
|---|
| Contract value | Offline | Online (M2u or Power Broking) |
|---|
| Up to RM100,000 | 0.60% | 0.42% |
| Above RM100,000 | 0.30% | 0.21% |
Complete the online application form here. Upon successful submission of the form, please visit any Maybank branch within 14 calendar days to complete your account opening. Note: Upon successful submission of your application, you will be required to upload salary documents on Maybank2u within 14 calendar days.
Is Maybank safe? ›
Banks have also leveraged technology to enable customers to bank safely and securely. At Maybank, advanced surveillance systems allow 24/7 monitoring of suspicious transactions. When abnormal activity is detected, the bank may contact the account holder to confirm if the transactions are legitimate.
Is my money safe with Maya Savings? Absolutely. We own a digital banking license from the Bangko Sentral ng Pilipinas, meaning our customers are protected by very strict standards and guidelines. In addition, deposits are insured by the Philippine Deposit Insurance Corporation (PDIC) up to P500,000 per depositor.
What is the highest paying monthly dividend stock? ›
High-Yield Monthly Dividend Stock #4: AGNC Investment Corporation (AGNC) High-Yield Monthly Dividend Stock #3: PermRock Royalty Trust (PRT) High-Yield Monthly Dividend Stock #2: ARMOUR Residential REIT (ARR) High-Yield Monthly Dividend Stock #1: Orchid Island Capital (ORC)
What to invest with 100k in Malaysia? ›
Here's a guide to where you can put your RM1,000 and see it grow.
- Amanah Saham Bumiputera (ASB) ...
- Employees Provident Fund (EPF) ...
- Private Retirement Schemes (PRS) ...
- Real Estate Investment Trusts (EITs) ...
- Unit trust funds. ...
- Exchange traded funds (ETFs) ...
- Blue chip stocks. ...
- Equity crowdfunding.
With the full realisation of the M25+ strategy by 2025, Maybank expects to see an acceleration in time-to-market of solutions by ~2-4x, increase in customer satisfaction by ~10-20%, digital customer penetration rate of >80% from 59% currently, employee engagement of >90%, and Next-Gen employees comprising 25-30% of the ...
How to invest money for beginners? ›
The best investments for beginners
- A 401(k) or other employer retirement plan. ...
- A robo-advisor. ...
- Target-date mutual funds. ...
- Index funds. ...
- Exchange-traded funds (ETFs) ...
- Investment apps.
Maybank's largest shareholder is Permodalan Nasional Berhad (33.3%), a large Malaysian fund management firm.
Why is Maybank account suspended? ›
There may be a few reasons why your account was blocked. You may have entered the wrong password for too many times. Your account may have been deactivated because it wasn't used for more than 6 months.
What is the future plan of Maybank? ›
5 Billion Investment, Allocates 77% For Technology. Maybank's corporate strategy of achieving sustained growth beyond 2025, M25+ will see the group driving its five key strategic thrusts and accelerating the development of key capabilities for sustainable long-term growth.
How big is Maybank? ›
What are Maybank products? ›
Products & Services
- Consumer and Digital Solutions. We offer a completely digital end-to-end experience, allowing you to conveniently take care of your financial needs from wherever you are. ...
- Corporate Solutions. ...
- Shariah Solutions. ...
- Wealth Management. ...
- Insurance & Takaful. ...
- Asset Management. ...
- Investment Banking.
Financial Institutions Analysis
Asset Level: MAYBANK's Assets to Equity ratio (10.7x) is moderate. Allowance for Bad Loans: MAYBANK has a sufficient allowance for bad loans (127%). Low Risk Liabilities: 80% of MAYBANK's liabilities are made up of primarily low risk sources of funding.
Why i can't withdraw money from Maybank? ›
Some possible reasons are that you have withdrawn more than the limit, or have keyed in the wrong PIN number at the ATM.
What is Maybank withdrawal rate? ›
Other Fees and Charges
5% on the total amount withdrawn or minimum of RM18. 00 per transaction, Whichever is higher. or minimum of RM18 per transaction, whichever is higher.
What is Maybank limit cash withdrawal? ›
2.12 Cardholder can change the defaulted cash withdrawal limit and 3rd party transfer limit of RM1,000-00 per Card per day at the ATM to a limit offered as an option by the Bank, subject to a maximum of RM10,000-00.
Can Maybank trade US stock? ›
Trade foreign shares through our authorised Dealer's Representatives.
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Features.
| US |
|---|
| Trading Hours (Malaysian Standard Time) to GMT +08:00 | (Summer) 9.30pm - 4.00am (Winter) 10.30pm - 5.00am |
|---|
| Purchase | T+1 |
|---|
| Sale | T+2 |
|---|
| Settlement Currency* | USD |
|---|
16 more columnsSSO (M) Session State Order (Market) SSO (MTL) Session State Order (Market to Limit)
What is a typical broker fee? ›
Realtors and real estate brokers typically charge around 5% to 6% of the selling price of a house. 2 This is often split between the seller's agent and the buyer's agent.
How much is Maybank brokerage fee cash upfront? ›
In order to trade in shares, clients are required to deposit 100% cash upfront.
...
Cash Upfront.
| Contract Value | Off Line Order | Online Order |
|---|
| Up to RM100,000 | 0.60% | 0.42% |
| Above RM100,000 | 0.30% | 0.21% |
How to apply
- Valid Passport (if IC is produced as a Primary document)
- Valid driving licence.
- Utility bills (e.g. water/electricity/telephone bills, Quit Rent, Assessment Notice) in the name and address of the customer opening the account.
- Letter of employment.
- Credit card.
MBBNY deposits are not insured by the FDIC and engage primarily in traditional lending and wholesale deposit activities and trading activities dealing with derivatives primarily interest rate swaps.
With this account, you get:
To earn interest, no matter what your account balance. No service or maintenance charges as long as a minimum balance of RM20 is maintained. Free mini statement. Online banking with Maybank2u.com.
Does Maybank allow Cryptocurrency transactions? ›
Maybank is officially making crypto purchases liable for credit card cash advance and withdrawal charges.
Does Maybank have annual fee? ›
Shop at millions of outlets worldwide that accept VISA. Track your online transactions via Maybank2u. No income requirement for application, no finance and late charges or annual fees. Smart chip security.
What is the minimum deposit in Maybank? ›
What's It All About? A regular passbook-based savings account with a free regional ATM card that provides you the convenience of accessing your funds anytime, anywhere. Simply mantain a minimum balance of Php 10,000 to enjoy interest.
Does Maybank give interest? ›
With effect from 1 August 2022, 'Split Tier' interest rate calculation will be implemented.
...
Golden Savers Savings Account.
| Savings Band | Interest Rates (% p.a.) |
|---|
| Above RM25,000 to RM50,000 | 0.20 |
| Above RM50,000 to RM100,000 | 0.30 |
| Above RM100,000 to RM250,000 | 0.60 |
| Subsequent balances above RM250,000 | 0.60 |
3 more rowsReinvest Your Payments
The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets. And that's okay.
How much to make $500 a month in dividends? ›
If your goal is to earn $500 a month, or $6,000 per year, you'd need at least $200,000 of dividend-paying investments.
How can I earn $3000 a month in dividends? ›
A $1.4 million portfolio of dividend stocks can reliably generate roughly $3,000 per month, based on today's yields. If you want monthly dividend income, make sure that you don't load up on stocks that all pay dividends at the same time.
Is RM $1 million enough to retire in Malaysia? ›
With the average life expectancy of a Malaysian at 74 years old, and retirement age at 60 year old, your retirement fund should be able to last at least 14 years. If you spread RM1 million over a 14-year retirement, it only comes up to about RM71,428 a year or RM5,952 a month.
How to invest in Malaysia for foreigners? ›
Most foreigners in Malaysia do so through the use of exchange-traded funds (ETFs). ETFs provide diversification because it is easy to buy and sell them on international stock exchanges. Real estate is also a very lucrative investment area in Malaysia.
Tips On How To Grow Your Money in Malaysia
- Set Financial Goals.
- Regularly contribute to your savings.
- Invest Your Money.
- Diversify Your Income.
- Never Stop Learning.
As mentioned earlier Maybank has two major weaknesses namely focusing mainly on Malaysia and Singapore and revenue only generated from retail banking and Islamic banking products and services.
How to secure Maybank? ›
Secure TAC
On the MAE app, tap 'Secure2u' under Quick Actions to retrieve it. Enter the Secure TAC to approve your transaction. This 6-digit number is auto generated every 30 seconds, so make sure the number is still valid when you enter it.
What is Maybank also known as? ›
Maybank Investment Bank Berhad, incorporated under the name of Asian and Euro-American Merchant Bankers Malaysia in 1973, was formed to undertake the full range of investment banking services.
How much money do I need to invest to make $3000 a month? ›
According to FIRE, your portfolio should cover 25 times your annual expenses. Then, if you withdraw 4% of your portfolio every year, your portfolio will continue to grow and won't be compromised. We can apply this formula to the goal of making $3,000 a month like this: $3,000 x 12 months x 25 years = $900,000.
How to invest $5,000 to make money fast? ›
What is the best way to invest $5,000?
- Invest in individual stocks.
- Invest in mutual funds or ETFs.
- Try real estate investing for rental income.
- Consider low-risk bonds.
- Leverage robo-advisors for hands-off investing.
- Open a CD for steady returns.
- Put a little into cryptocurrency for high potential returns.
Here are nine top ways to invest $1,000 and the key things to know about them.
- Buy an S&P 500 index fund. ...
- Buy partial shares in 5 stocks. ...
- Put it in an IRA. ...
- Get a match in your 401(k) ...
- Have a robo-advisor invest for you. ...
- Pay down your credit card or other loan. ...
- Go super safe with a high-yield savings account.
Downside of Neobank – Things to Consider
Users are unable to make cash withdrawals and deposits due to the absence of physical bank branches. Chequebooks are not available in neobanks because they are less commonly used by people nowadays.
What is the weakness of mobile banking? ›
Disadvantages of Mobile Banking
- Security Concerns – One of the main concerns with mobile banking is the potential for security breaches. ...
- Technical Issues – Mobile banking apps may experience technical glitches or downtime, which can prevent users from accessing their accounts or conducting transactions.
“I go to a non-target school. / I'm not a finance major.” (lack of self-respect) “I have chronic back pain / other physical problems.” (TMI) “I can't multi-task well.” (please give up on being a banker right now) “I'm not good with numbers.” (you will get tossed out of the interview)
Most neobanks partner with licensed banks to offer deposit accounts insured through the Federal Deposit Insurance Corp. FDIC insurance guarantees that you receive your money back — up to $250,000 — if the bank or company goes bankrupt.
Which neobanks failed? ›
Independent Neobanks
Simple and Azlo, which worked under the BBVA umbrella, shut down their respective operations in 2021 following BBVA's acquisition by PNC bank. The same year, FTC shut down Beam Financials due to non-compliance issues with the former's rules and regulations.
Are neobanks risky? ›
Many neobanks run the risk of being unable to derive long-term value from their customers, yet they also run the risk of eroding their competitive advantage if they become too much like a conventional bank.
Which is safer online banking or mobile banking? ›
So, is Mobile Banking Safer than Online Banking? Whether you choose mobile banking or online banking, you can be confident that your bank has invested in the security of these services. However, mobile banking is a little safer when it comes to security, mainly because this type of banking does not store any data.
What is the greatest threat to online banking? ›
Top Cybersecurity Threats Faced by Banks
- Phishing Attacks. One of the most frequent problems with cybersecurity in the banking sector is phishing assaults. ...
- Trojans. The term "Trojan" is used to designate several dangerous tactics hackers use to cheat their way into secure data. ...
- Ransomware. ...
- Spoofing.
Cybercrimes for non-compliance with suggested security measures is a common disadvantage of internet banking.
What are the biggest banking mistakes to avoid? ›
12 Banking Mistakes That Could Be Ruining Your Finances
- Paying High Monthly Service Fees.
- Letting Money Sit in Low-Yield Accounts.
- Chasing Higher Rates.
- Paying Overdraft or ATM Fees.
- Not Negotiating Rates.
- Ignoring Rewards.
- Staying Too Loyal.
- Avoiding Digital Banks.
Examples of Weaknesses.
- Self-criticism.
- Shyness.
- Lack of knowledge of particular software.
- Public speaking.
- Taking criticism.
- Lack of experience.
- Inability to delegate.
- Lack of confidence.
What Skills and Traits Make a Good Fit?
- Willingness to work extremely long hours (80+ per week)
- High attention to detail.
- Ability to take direction well.
- Team player.
- Great at Excel, Word, and PowerPoint.
- Strong accounting and finance knowledge.
- Excellent financial modeling skills.
With direct deposit or electronic funds transfer (EFT), the general public, government agencies, and business and institutions can pay and collect money electronically, without having to use paper checks.
Here's a few reasons online banking might not be for you:
- You Receive Large Paper Checks.
- You Like Having a Relationship with Your Bank.
- You Own a Small Business.
- We're Here on Earth to Fart Around.
- Depositing Cash and Buying Coins.
Banks Rarely Text Messages to Its Customers Out of The Blue
The site will then ask you to enter sensitive information such as banking login details. Your bank will never send you text messages asking you to confirm your account details or reset your password. Such SMSes are from scammers.
