financial analysis on maybank and cimb (bank management)
TRANSCRIPT
KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES
MAYBANK AND CIMB
FIN 4250
BANK MANAGEMENT
Lecturer’s name: Dr. Zulkufly Ramly
NO. GROUP MEMBER NAME MATRIC
NUMBER
1 NurhidayahBintiSallehuddin 1212620
2 Nafsiah Begum Binti Mohamed Najeebu 1217814
3 AfifahNabilahBintiMohamadSafei 1321976
4 AinulfitriahBinti Mat Ghani 1215776
Date of Submission: 27thNovember 2015
2
Contents
Contents Contents .............................................................................................................................................. 2
Executive Summary ............................................................................................................................. 3
Analysis Overview ................................................................................................................................ 3
Financial Analysis .................................................................................... Error! Bookmark not defined.
Assumptions ........................................................................................................................................ 9
Conclusions ....................................................................................................................................... 10
References ........................................................................................................................................ 11
Appendices ........................................................................................................................................ 12
3
Executive Summary
The objective of assignment assigned was to study the financial health of bank by conducting a comparative analysis. We decided to choose Maybank and CIMB to analyze and evaluate the statement of financial position and income statements of banks by computing the performance indicators such liquidity, profitability, financial leverage and asset quality for five years. Those financial analysis tools are important to measure the strength and weaknesses of bank performances.
Liquidity: to determine the ability of bank’s short-term assets pay off the short term liabilities.
Profitability:to determine a bank operational performances in generating profit.
Leverage: to determine the level of sustainable debt or the bank’s ability to meet liabilities obligations.
Asset quality: to determine how bank’s control and monitor credit risk.
The analysis result for five years shows the banks condition, good or bad were affect by internal factors such as operational efficiency and external factors such as economics growth. More than that, we are interested to choose which bank has a better performances and how their financial condition after five years.
Analysis Overview
MAYBANK
Maybank was established in 1960, and today is the largest company by market capitalisation on
the Malaysian Bourse (Bursa Malaysia). It is ranked first among listed Malaysian companies and among
the top 500 companies in the Forbes Global 2000 leading companies of the world. The Maybank Group
offers a comprehensive range of products and services that includes commercial banking, investment
banking, Islamic banking, offshore banking, leasing and hire purchase, insurance, factoring, trustee
services, asset management, stock broking, nominee services, venture capital and Internet banking.
Maybank is Southeast Asia’s fourth largest bank by assets. It is listed and headquartered in Kuala
Lumpur and is Malaysia’s largest company by market capitalization.
The Maybank Group has a global network of over 2,200 offices in 20 countries including in all 10
ASEAN countries. The Group commenced commercial banking operations in Malaysia in 1960 and today
operates from its key home markets of Malaysia, Singapore and Indonesia as well as across the Asia-
Pacific region and major international financial centres. These include the Philippines, Brunei
Darussalam, Cambodia, Vietnam, Laos, Thailand, Myanmar, China, Hong Kong, Papua New Guinea,
Pakistan, India, Uzbekistan, Saudi Arabia, Bahrain, United Kingdom and United States of America.
Having over 50 years of experience and an early presence in global banking markets, the
Maybank Group offers businesses and investors the ability to tap into its resources and network to meet
their financial needs. Its range of services includes corporate and consumer banking, investment banking,
insurance & takaful, asset management, Islamic banking, offshore banking, stock broking, venture
4
capital financing and much more. Over the years, Maybank has consistently leveraged on technology for
innovation in products and services, as well as to enhance efficiency and build a competitive edge in the
region. A host of awards from various regional and international organizations bear testimony to the
Group’s commitment to excellence. Today, Maybank is not only Malaysia’s Most Valuable Brand but is
also ranked first among Malaysian banks and among the top 200 global banks by The Banker magazine
of UK, and is also the leading Malaysian company in the FORBES Global 2000 List.
CIMB
CIMB is moving into new era. They have moved to new headquarters at Malaysia’s high tech
transport hub, Kuala Lumpur Sentral. This coincides with the completion of their 1Platform core banking
system in Singapore, Thailand and Malaysia and the completion of Asia Pacific investment banking
network. CIMB Bank is the product of several mergers and acquisitions in the history of Malaysian
economy.
The name CIMB or Commerce International Merchant Bankers Berhad appeared after the Bank
of Commerce Berhad bought major stakes in Pertanian Baring Sanwa Multinational Berhad (PBS). CIMB
Bank offers the banking services to its customers in different nations which are Consumer Banking,
Investment Banking, Islamic Banking, Private Banking, Asset Management, and Insurance. The principal
activities of the Bank during the financial year are commercial banking and the provision of related
financial services, including Islamic banking. The principal activities of the significant consist of Islamic
banking, offshore banking, debt factoring, trustees and nominee services, and property ownership and
management. There was no significant change in the nature of these activities during the financial year.
On equity, CIMB was the biggest in the Dealogic Malaysia, Indonesia, Singapore and Indonesia
Equity Capital Markets league table ranking year-to-date, having successfully led and marketed deals
which had raised a total of US$2.68bil. Despite economic indicators pointing towards a softer outlook
for the region caused by internal and external headwinds, the growth opportunities in selected
segments and markets across the region. Nevertheless, the prevailing tough and uncertain economic
environment could make it more difficult for CIMB to meet some of its Key Performance Indicator
targets.
5
Financial Analysis
LIQUIDITY
Based on the calculation made, we can see how the pattern of the ratio differs from year 2010
to year 2014. As we all know,current ratio, fixed assets turnover and total assets turnover are calculated
to measure the capability of the bank to liquidate its assets and liability. Current ratio measures the level
of the current assets that can be quickly convertible into cash and used to meet the short term liabilities.
In this case, the liquidity of the assets of Maybank Berhad has became more iiliquid since the current
ratio decreases from year 2010 to 2012. However, due to the increment of their current assets and
current liabilities, they managed to increase their level of liquidity over the next two years as the current
ratio was increasing and finally reach its highest score in 2014. On the other hand, CIMB Bank shows a
significant decrease in the current ratio from 2010 to 2015. In which the ratio was decreasing from 0.13
in 2010 to 0.06 in 2014. It shows a downward trend, which means the bank current liabilities are
increasing for the past 4 years.
0
5
10
15
20
25
2010 2011 2012 2013 2014
CIMB
Maybank
00.05
0.10.15
0.20.25
0.30.35
0.40.45
2010 2011 2012 2013 2014
CIMB
Maybank
Current Ratio
Fixed Assets Turnover
6
The next method that can be used to calculate the level of liquidity is by using the fixed assets
turnover ratios. In this method, we compared the net revenue with the average fixed assets to know
how much the fixed assets turnover that Maybank can get from the net revenue that they sucessfully
make every year. From the result, we can see that the fixed assets turnover ratios for Maybank are
increasing every year from 2010 to 2014. This shows that Maybank has been performing very well in
generating sales with the small cost of fixed assets. Meanwhile, CIMB Bank also shows the same upward
trend on the fixed assets turnover in which they are both ended up with the highest fixed asset turnover
over the 5 years on 2014. They have almost same kind of trend since they are in the same business area
which involves in service business and not focus more on manufacturing products that involve a high
cost on the fixed assets.
The last one is the total assets turnover in which we calculated the total assets turnover from
the net revenue. This is to measure the efficiency of the organizations to use their assets to generate the
sales revenue for the organization. Based on the graph above, we can see that CIMB Bank is much more
stable in utilizing their assets to generate most sales revenue to the company since they have a stable
ratio every year at 0.3 turnover per net revenue compared to Maybank Berhad which showing the
downward trend over the 5 years except on 2012.
PROFITABILITY
Maybank
00.010.020.030.040.050.060.070.080.09
2010 2011 2012 2013 2014
CIMB
Maybank
Total Assets Turnover
0.000
0.200
0.400
0.600
0.800
Rat
io
Profitability
2010
2011
2012
2013
2014
7
The Maybank is doing well if the current ratio same from a previous period ratio. In the case of
Maybank, only net profit margin ratio and allowances for loan ratio have almost same ratio from
previous 5 years while other indicators ratio change. The diagram shows that Maybank has highratio in
all indicators in 2010 except in earning asset to total asset ratio where the high ratio is in 2012 for about
6.3%. Maybank has low ratio in all indicatorsin 2014 except for net income to average asset where the
lowest ratio about 1.2% is in 2011.
CIMB Bank
This graph illustrate bank ratio on per period basis for the year 2010 until year 2014. Profitability
ratio shows a bank’s overall efficiency and performance. It comprises return on asset, return on
company equity, return on deposit, operating profit margin, net profit margin, net income to average
assets, profit margin, earning asset to total asset and allowance for financing loans. Generally,for most
of these ratios, by having a higher value from a previous period is indicative that the bank is doing well.
However, for CIMB value of ratio on assets not much higher between years. It increased for the first and
second year but decreased for year 2012 and then remained constant for year 2013 and 2014. Almost
for all this ratios show increased pattern for the first and second year but then tend to decrease for next
year’s onwards except for earning asset to total assets. The value increased slightly between years.
FINANCIAL LEVERAGE
The financial leverage ratio indicates the use of borrowed money to increase production volume,
and thus sales and earnings. It is measured as the ratio of total debt to total assets. The greater the
amount of debt, the greater the financial leverage.
0.0000.1000.2000.3000.4000.5000.6000.7000.8000.900
RA
TIO
YEARS
Profitability
2010 2011 2012 2013 2014
8
We can use leverage ratio to measure the financial leverage of the organizations. The leverage
ratio is calculated by dividing the total liabilitites with the common equity. This is to know whether the
assets of the organization are belong to the shareholders or creditors. Based on the graph above, CIMB
Bank shows a high leverage ratio every year compared to Maybank Berhad. However, we can see from
the trend that CIMB Bank actually manage to decrease the leverage ratio a lot at the end of the year
2014 compared to 2013. Meanwhile, Maybank Berhad get its lowest ratio in 2012 but the ratio increases
in 2013 and finally slightly decreases at the end of 2014. Both company shows a very good performance
in 2014 since they manage to lower their debt and save some assets for their shareholders.
The next method is financing/loans to deposits ratio in which we divide the average loans and
financing with the deposits to know whether the bank has enough liquidity to cover unforseen funds or
not. Based on the result, we can see that CIMB Bank increases in the ratio drastically from 2010 to 2012.
The same trend was followed by Maybank Berhad in which since 2010, they ever make much changes in
their financing to deposits ratio. And the amounts are not getting much smaller since the depositors are
increasing each year and the bank also give out much financing and loans to the customers every year.
00.10.20.30.40.50.60.70.80.9
2010 2011 2012 2013 2014
CIMB
Maybank
0
2
4
6
8
10
12
2010 2011 2012 2013 2014
CIMB
Maybank
Leverage Ratio
Financing/Loans to Deposits Ratio
9
ASSET QUALITY
The last part is the asset quality. To measure the asset quality, we use non-current financing/loans to total financing/loans ratio and financing/loans to deposits ratio. In both cases, there are so big differences between CIMB Bank and Maybank Berhad in term of their ratios. For the non-current financing/loans to total financing/loans ratio, Maybank shows a constant ratio at 1 over the 5 years while CIMB Bank shows the slight increasing and increasing over the 5 years. On the other hand, for the financing/loans to deposits ratio, CIMB Bank shows a fluctuate trend on the ratio from 2010 rto 2014 while Maybank shows almost zero amount of ratio.
Assumptions
CIMB still need to improvise in managing their profitability indicator. Because some of the ratio only shows slightly increased between years. CIMB need to manage the profitability in order to have more money in less investment and to indicate an upward profit as well.Profitability ratios measure a bank’s ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of a bank to generate earnings, profits and cash flows relative to relative to some metric, often the amount of money invested and highlight how effectively the profitability of a bank is being managed.
0
0.2
0.4
0.6
0.8
1
1.2
2010 2011 2012 2013 2014
CIMB
Maybank
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
2010 2011 2012 2013 2014
CIMB
Maybank
Non-current Financing/Loans to Total
Financing/Loans Ratio
Financing/Loans to Deposits Ratio
10
Conclusions
In conclusion, we can see that both Maybank and CIMB are doing very well in the business and have a bright future ahead in the services area. However, since Maybank is one of the oldest bank in Malaysia and one of the first bank of Malaysia, Maybank seem to have been doing quite a good job and better than CIMB Bank. Today, Maybank and CIMB are both play important role a the main banking institution which provide various type of products either Islamic or conventional in Malaysia. We, personally, believe that both of them can grow better and provide more Islamic products and eventually become the main banking institutions in Asia Pacific which provide more Islamic product to the consumers.
11
References
Peter S.Rose., &Sylvia C.Hudgins.(2013).Bank Management &Financial Services. (9th ed.). New York: McGraw Hill
Ismail A.Ghafar.(2010). Money, Islamic Banks, and the Real Economy. Singapore: Cengage Learning CIMB BERHAD. (2015, 11 10). Retrieved from www.maybank2u.com.my: http://www.maybank2u.com.my/en/personal/customer-service/about-us.page
MAYBANK BERHAD. (2015, 11 10). CIMB BERHAD. Retrieved from www.cimb.com.en: https://www.cimb.com/en/investor-relations/financial-information/cimb-bank-berhad.html
www.investopedia.com. (n.d.).
http://www.accuity.com/financial-counterparty-kyc/credit-risk/performance-ratios/loan-to-deposit-ratio/
http://www.myaccountingcourse.com/financial-ratios/financial-leverage-ratios
12
Appendices MAYBANK
MAYBANK (current ratio) 2014 (RM ‘000)
2013 (RM ‘000)
2012 (RM ‘000)
2011 (RM ‘000)
2010 (RM ‘000)
Cash/Deposits in other Banks (1)
Cash and short-term funds 34,778,324 29,320,984 23,153,242 25,803,796 19,403,616
Deposits and placements with financial institutions
15,811,015 15,723,864 10,039,999 7,644,471 7,098,198
Total cash and deposits 50,589,339 45,044,848 33,193,241 33,448,267 26,501,814
Investment in Securities/Financial Assets (2)
Financial assets purchased under resale agreements
3,625,291 20,558 650,314 - 371,237
Financial assets at fair value through profit or loss
9,425,390 5,546,091 10,719,937 2,884,895 2,241,928
Financial investments available-for-sale 73,630,705 64,532,797 47,366,309 40,262,042 37,446,841
Financial investments held-to-maturity 9,100,155 5,354,097 2,556,849 8,339,494 7,855,322
Derivative assets 4,533,709 3,760,133 2,812,148 1,626,415 1,281,682
Total investment in securities and financial assets
100,315,250 79,213,676 64,105,557 53,112,846 49,197,010
Total (1)+(2) 150,904,589 124,258,524 97,298,798 86,561,113 75,698,824
Current Liabilities
Deposits from customers 306,938,972 273,670,380 237,402,079 201,465,408 175,379,741
Deposits and placements from financial institutions
47,500,184 37,582,577 29,198,776 31,441,675 22,929,822
Obligations on financial assets sold under repurchase agreements
3,166,372 4,300,055 - 373,562 -
Bills and acceptances payable 1,187,310 1,442,612 1,553,312 7,115,673 2,898,997
Derivative liabilities 5,173,575 3,632,464 2,243,617 1,446,311 1,291,498
Other liabilities 8,789,557 9,485,349 8,645,423 4,240,156 3,555,869
Total current liabilities 372,755,970 330,113,437 279,043,207 246,082,785 206,055,927
Current Ratio
𝑇𝑜𝑡𝑎𝑙 1 + (2)
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
150,904,589
372,755,970
124,258,524
330,113,437
97,298,798
279,043,207
86,561,113
246,082,785
75,698,824
206,055,927
= 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑹𝒂𝒕𝒊𝒐 0.405 0.376 0.349 0.352 0.367
13
FIXED ASSET TURNOVER 2014 (RM ‘000)
2013 (RM ‘000)
2012 (RM ‘000)
2011 (RM ‘000)
2010 (RM ‘000)
Net Revenue
Operating revenue 20,506,870 18,723,034 17,346,458 13,588,308 13,280,253
(+) Interest Income 13,123,548 11,744,776 11,194,494 9,194,938 8,555,239
(-) Interest Expense (6,055,648) (5,096,985) (4,959,002) (3,654,518) (3,160,604)
Total Net Revenue 27,574,770 25,370,825 23,581,950 19,128,728 18,674,888
Fixed Assets
Property, plant and equipment 1,308,775 1,363,898 1,205,788 1,170,183 1,077,597
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 + 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠)
2
2,672,673
2
2,569,686
2
2,375,971
2
2,247,780
2
2,192,737
2
= 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑭𝒊𝒙𝒆𝒅 𝑨𝒔𝒔𝒆𝒕𝒔 1,336,337 1,284,843 1,187,986 1,123,890 1,096,369
Fixed Assets Turnover
𝑁𝑒𝑡 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠
27,574,770
1,336,337
25,370,825
1,284,843
23,581,950
1,187,986
19,128,728
1,123,890
18,674,888
1,096,369
= 𝑭𝒊𝒙𝒆𝒅 𝑨𝒔𝒔𝒆𝒕𝒔 𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓 20.63 19.75 19.85 17.02 17.03
TOTAL ASSET TURNOVER 2014 (RM ‘000)
2013 (RM ‘000)
2012 (RM ‘000)
2011 (RM ‘000)
2010 (RM ‘000)
Net Revenue
Operating revenue 20,506,870 18,723,034 17,346,458 13,588,308 13,280,253
(+) Interest Income 13,123,548 11,744,776 11,194,494 9,194,938 8,555,239
(-) Interest Expense (6,055,648) (5,096,985) (4,959,002) (3,654,518) (3,160,604)
Total Net Revenue 27,574,770 25,370,825 23,581,950 19,128,728 18,674,888
Assets
Cash and short-term funds 34,778,324 29,320,984 23,153,242 25,803,796 19,403,616
Deposits and placements with financial institutions
15,811,015 15,723,864 10,039,999 7,644,471 7,098,198
Financial assets purchased under resale agreements
3,625,291 20,558 650,314 - 371,237
Financial assets at fair value through profit or loss
9,425,390 5,546,091 10,719,937 2,884,895 2,241,928
Financial investments available-for-sale
73,630,705 64,532,797 47,366,309 40,262,042 37,446,841
Financial investments held-to-maturity
9,100,155 5,354,097 2,556,849 8,339,494 7,855,322
Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585
14
Derivative assets 4,533,709 3,760,133 2,812,148 1,626,415 1,281,682
Other assets 6,488,988 5,319,437 2,713,063 1,420,365 3,832,316
Statutory deposits with central banks
7,576,028 7,327,996 6,888,916 4,313,116 1,932,981
Investment in subsidiaries 20,450,502 19,505,514 17,634,469 17,070,392 12,653,377
Interest in associates and joint ventures
451,518 451,518 456,512 454,412 418,700
Property, plant and equipment 1,308,775 1,363,898 1,205,788 1,170,183 1,077,597
Intangible assets 506,267 527,268 697,066 177,270 160,710
Deferred tax assets 348,350 1,053,598 810,015 920,837 1,148,176
Total Assets 452,559,458 397,779,032 342,556,673 293,660,532 248,392,266
MAYBANK 2010 (RM’000)
2011 (RM’000)
2012 (RM’000)
2013 (RM’000)
2014 (RM’000)
RETURN ON ASSETS (ROA)
(a) Net operating income 9,116,684 8,607,321 10,167,707 11,331,908 11,916,591
Total asset at current year(i) 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458
Total asset a year before(ii) 238,277,142 248,392,266 293,660,532 342,556,673 397,779,032
(b) Average total asset (( i+ii)/2) 243,334,704 271,026,399 318,108,603 370,167,853 425,169,245
ROA = (a/b) 0.037 0.032 0.032 0.031 0.028
RETURN ON COMMON EQUITY (ROCE)
(a) Net operating income 9,116,684 8,607,321 10,167,707 11,331,908 11,916,591
Common equity at the end of year(i) 25,256,824 27,998,403 36,895,307 40,499,772 46,172,805
Common equity at the beginning of year(ii)
22,510,444 25,256,824 29,634,456 36,895,307 40,499,772
(b) Average common equity (( i+ii)/2) 23,883,634 26,627,614 33,264,882 38,697,540 43,336,289
ROCE = (a/b) 0.382 0.323 0.306 0.293 0.275
RETURN ON DEPOSIT
(a) Net operating income 9,116,684 8,607,321 10,167,707 11,331,908 11,916,591
Deposit at current year :
Deposit from customers 175,379,741 201,465,408 237,402,079 273,670,380 306,938,972
Deposit and placement from financial Institution
22,929,822 31,441,675 29,198,776 37,582,577 47,500,184
Subtotal (i) 198,309,563 232,907,083 266,600,855 311,252,957 354,439,156
Deposit a year before :
Deposit from customers 163,452,930 175,379,741 201,465,408 237,402,079 273,670,380
Deposit and placement from financial Institution
30,121,916 22,929,822 31,441,675 29,198,776 37,582,577
Subtotal (ii) 193,574,846 198,309,563 232,907,083 266,600,855 311,252,957
(b) Average total deposit=((i+ii)/2) 195,942,205 215,608,323 249,753,969 288,926,906 332,846,057
15
ROD = (a/b) 0.047 0.040 0.041 0.039 0.036
OPERATING PROFIT MARGIN
(a) Net operating income 9,116,684 8,607,321 10,167,707 11,331,908 11,916,591
(b) Operating revenue 13,280,253 13,588,308 17,346,458 18,723,034 20,506,870
Operating profit margin = (a/b) 0.686 0.633 0.586 0.605 0.581
NET PROFIT MARGIN
(a) Net profit 3,552,685 3,358,699 4,305,904 4,885,616 5,903,015
(b) Net revenue 18,674,888 19,128,728 23,581,950 25,370,825 27,574,770
Net profit margin =((a/b)/100) 0.002 0.002 0.002 0.002 0.002
NET INCOME TO AVERAGE ASSET
(a) Net profit 3,552,685 3,358,699 4,305,904 4,885,616 5,903,015
Total asset at current year(i) 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458
Total asset a year before(ii) 238,277,142 248,392,266 293,660,532 342,556,673 397,779,032
(b) Average total asset ((i+ii)/2) 243,334,704 271,026,399 318,108,603 370,167,853 425,169,245
Net income to average = (a/b) 0.015 0.012 0.014 0.013 0.014
PROFIT MARGIN
Interest income (i) 8,555,239 9,194,938 11,194,494 11,744,776 13,123,548
Interest expense (ii) 3,160,604 3,654,518 4,959,002 5,096,985 6,055,648
(a) subtotal = (i-ii) 5,394,635 5,540,420 6,235,492 6,647,791 7,067,900
(b) total asset 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458
Profit margin = (a/b) 0.022 0.019 0.018 0.017 0.016
EARNING ASSETS TO TOTAL ASSETS
Earning asset at current year:-
Loans, advances and financing (i) 151,469,585 181,572,844 214,852,046 237,971,279 264,524,441
Derivative assets (ii) 1,281,682 1,626,415 2,812,148 3,760,133 4,533,709
Earning asset a year before:-
Loans, advances and financing (iii) 144,431,798 151,469,585 181,572,844 214,852,046 237,971,279
Derivative assets(iV) 929,904 1,281,682 1,626,415 2,812,148 3,760,133
(a) Average earning asset= ((i+ii+iii+iV)/2)
149,056,485 167,975,263 200,431,727 229,697,803 255,394,781
Total asset at current year(V) 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458
Total asset a year before(Vi) 238,277,142 248,392,266 293,660,532 342,556,673 397,779,032
(b) Average total asset= ((V+Vi)/2) 243,334,704 271,026,399 318,108,603 370,167,853 425,169,245
Earning assets to total assets = (a/b) 0.613 0.620 0.630 0.621 0.601
ALLOWANCES FOR FINANCING
(a) Allowance for loans 309,867 2,196 268,844 502,144 224,115
Total asset at current year(i) 248,392,266 293,660,532 342,556,673 397,779,032 452,559,458
16
LEVERAGE RATIO 2014 (RM ‘000)
2013 (RM ‘000)
2012 (RM ‘000)
2011 (RM ‘000)
2010 (RM ‘000)
Liabilities
Deposits from customers 306,938,972 273,670,380 237,402,079 201,465,408 175,379,741
Deposits and placements from financial institutions
47,500,184 37,582,577 29,198,776 31,441,675 22,929,822
Obligations on financial assets sold under repurchase agreements
3,166,372 4,300,055 - 373,562 -
Bills and acceptances payable 1,187,310 1,442,612 1,553,312 7,115,673 2,898,997
Derivative liabilities 5,173,575 3,632,464 2,243,617 1,446,311 1,291,498
Other liabilities 8,789,557 9,485,349 8,645,423 4,240,156 3,555,869
Recourse obligation on loans and financing sold to Cagamas
1,058,860 656,293 687,793 528,285 649,977
Provision for taxation and zakat
275,373 578,100 758,446 - 283,353
Borrowings 13,846,812 9,318,389 7,382,719 3,420,499 2,098,317
Subordinated obligations 12,264,578 10,404,418 11,638,850 9,509,786 8,069,116
Capital securities 6,185,060 6,208,623 6,150,351 6,120,774 5,978,752
Total Liabilities 406,386,653 357,279,260 305,661,366 265,662,129 223,135,442
Common Equity
Share capital 9,319,030 8,862,079 8,440,046 7,478,206 7,077,983
Share premium 22,747,922 19,030,227 15,639,646 - -
(-) Shares held-in-trust (113,463) (107,248) (102,405) - -
Retained profits 3,600,804 3,478,214 4,179,482 - -
Reserves 10,618,512 9,236,500 8,738,538 20,520,197 18,178,841
Total common equity 46,172,805 40,499,772 36,895,307 27,998,403 25,256,824
Leverage Ratio
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑚𝑚𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦
406,386,653
46,172,805
357,279,260
40,499,772
305,661,366
36,895,307
265,662,129
27,998,403
223,135,442
25,256,824
= 𝑳𝒆𝒗𝒆𝒓𝒂𝒈𝒆 𝑹𝒂𝒕𝒊𝒐 8.80 8.82 8.28 9.49 8.83
LOAN TO DEPOSIT RATIO 2014 (RM ‘000)
2013 (RM ‘000)
2012 (RM ‘000)
2011 (RM ‘000)
2010 (RM ‘000)
Financing/Loans
Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585
Total asset a year before(ii) 238,277,142 248,392,266 293,660,532 342,556,673 397,779,032
(b) Average total asset ((i+ii)/2) 243,334,704 271,026,399 318,108,603 370,167,853 425,169,245
allowances for financing =( a/b) 0.001 0.000 0.001 0.001 0.001
17
𝑇𝑜𝑡𝑎𝑙 𝐿𝑜𝑎𝑛𝑠 (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 + 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠)
2
502,495,720
2
452,823,325
2
396,424,890
2
333,042,429
2
295,901,380
2
= 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑻𝒐𝒕𝒂𝒍 𝑳𝒐𝒂𝒏𝒔 251,247,860 226,411,663 198,212,445 166,521,215 147,950,690
Deposits
Deposits from customers 306,938,972 273,670,380 237,402,079 201,465,408 175,379,741
Deposits and placements from financial institutions
47,500,184 37,582,577 29,198,776 31,441,675 22,929,822
Total deposits 354,439,156 311,252,957 266,600,855 232,907,083 198,309,563
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑜𝑠𝑖𝑡𝑠 (𝐶𝑢𝑟𝑟𝑒𝑛𝑡 + 𝑃𝑟𝑒𝑣)
2
665,692,113
2
577,853,812
2
499,507,938
2
431,216,646
2
391,884,408
2
= 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑻𝒐𝒕𝒂𝒍 𝑫𝒆𝒑𝒐𝒔𝒊𝒕𝒔 332,846,057 288,926,906 249,753,969 215,608,323 195,942,204
Financing/Loans To Deposits Ratio
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔/𝐿𝑜𝑎𝑛𝑠
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑝𝑜𝑠𝑖𝑡𝑠
251,247,860
332,846,057
226,411,663
288,926,906
198,212,445
249,753,969
166,521,215
215,608,323
147,950,690
195,942,204
= Financing/Loans To Deposits Ratio
0.75 0.78 0.79 0.77 0.76
NON-CURRENT FINANCING/LOANS TO TOTAL
FINANCING/LOANS RATIO
2014 (RM ‘000)
2013 (RM ‘000)
2012 (RM ‘000)
2011 (RM ‘000)
2010 (RM ‘000)
Non-current Financing/Loans
Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585
Total Non-current Financing/Loans
264,524,441 237,971,279 214,852,046 181,572,844 151,469,585
Financing/Loans
Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585
Total Financing/Loans 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585
Non-Current Financing/Loans To Total Financing/Loans Ratio
𝑇𝑜𝑡𝑎𝑙 𝑁𝑜𝑛 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔
𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔/𝐿𝑜𝑎𝑛𝑠
264,524,441
264,524,441
237,971,279
237,971,279
214,852,046
214,852,046
181,572,844
181,572,844
151,469,585
151,469,585
= Non-Current Financing/Loans To Total
Financing/Loans Ratio
1 1 1 1 1
18
ALLOWANCE FOR FINANCING/ LOAN LOSSES TO NON-CURRENT
FINANCING/LOANS RATIO
2014 (RM ‘000)
2013 (RM ‘000)
2012 (RM ‘000)
2011 (RM ‘000)
2010 (RM ‘000)
Allowance for Financing/Loan Losses
(Allowances for)/writeback of impairment losses on loans, advances, financing and other debts
224,115
502,144
268,844
2,196
309,867
Total allowance for financing/loan losses
224,115 502,144 268,844 2,196 309,867
Non-current Financing/Loans
Loans, advances and financing 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585
Total non-current financing/loans 264,524,441 237,971,279 214,852,046 181,572,844 151,469,585
Allowance For Financing/Loan Losses To Non-Current Financing/Loans Ratio
𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒 𝑓𝑜𝑟 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔 𝐿𝑜𝑠𝑠𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝑁𝑜𝑛 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑛𝑔
224,115
264,524,441
502,144
237,971,279
268,844
214,852,046
2,196
181,572,844
309,867
151,469,585
= Allowance for financing/loan losses to non-current financing/loans ratio
0.00085
0.00211
0.00125
0.00001
0.00201
19
CIMB
CIMB 2010 2011 2012 2013 2014
RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000
RETURN ON ASSETS (ROA)
(a) Net operating income 2,365,868 3,186,293 3,105,142 2,729,015 3,033,172
Total asset at current year(i) 170823022 186,545,248 206,795,324 234,603,951 264,948,946
Total asset a year before(ii) 160,221,618 170,823,022 186,722,227 206,795,324 234,603,951
(b) Average total asset ((i+ii)/2) 165,522,320 178,684,135 196,758,776 220,699,638 249,776,449
ROA = (a/b) 0.0143 0.0178 0.0158 0.0124 0.0121
RETURN ON COMMON EQUITY (ROCE)
(a) Net operating income 2,365,868 3,186,293 3,105,142 2,729,015 3,033,172
Common equity at the end of year(i)
14,828,441 15,741,124 17,136,577 18,247,660 20,021,480
Common equity at the beg. of year(ii)
15,741,124 16,998,847 18,247,660 20,021,480 24,090,741
(b) Average common equity (( i+ii)/2)
15284782.5 16,369,986 17,692,119 19,134,570 22,056,111
ROCE = (a/b) 0.1548 0.1946 0.1755 0.1426 0.1375
RETURN ON DEPOSIT
(a) Net operating income 2,365,868 3,186,293 3,105,142 2,729,015 3,033,172
Deposit at current year :
Deposit from customers 121,553,069 131,569,745 141,770,859 156,115,031 174,320,567
Deposit and placement from fin.Inst.
18,468,654 18,519,277 24,868,563 30,417,708 31,538,303
Subtotal (i) 140,021,723 150,089,022 166,639,422 186,532,739 205,858,870
Deposit a year before :
Deposit from customers 114,449,911 121,533,069 131,569,745 145,415,162 156,115,031
deposits and placement from fin.Inst.
17,633,397 18,468,654 18,519,277 18,988,395 30,417,708
Subtotal (ii) 132,083,308 140,001,723 150,089,022 164,403,557 186,532,739
(b) Average total deposit=((i+ii)/2)
136,052,516 145,045,373 158,364,222 175,468,148 196,195,805
ROD = (a/b) 0.0174 0.0220 0.0196 0.0156 0.0155
OPERATING PROFIT MARGIN
(a) Net operating income 2,365,868 3,186,293 3,105,142 2,729,015 3,033,172
(b) Operating revenue 3,915,545 3,926,644 4,168,643 4,583,300 5,082,718
Operating profit margin = (a/b) 0.6042 0.8115 0.7449 0.5954 0.5968
NET PROFIT MARGIN
(a) Net profit 1,912,556 2,674,531 2,489,372 2,141,950 2,477,630
(b) Net revenue 1,690,764 2,462,513 2,263,439 2,042,067 1,972,928
20
Net profit margin =((a/b)/100 0.0113 0.0109 0.0110 0.0105 0.0126
NET INCOME TO AVERAGE ASSET
(a) Net profit 1,912,556 2,674,531 2,489,372 2,141,950 2,477,630
Total asset at current year(i) 170,823,022 186,545,248 206,795,324 234,603,951 264,948,946
Total asset a year before(ii) 160,221,618 170,823,022 186,722,227 206,795,324 234,603,951
(b) Average total asset ((i+ii)/2) 165522320 178,684,135 196,758,776 220,699,638 249,776,449
Net income to average = (a/b) 0.0116 0.0150 0.0127 0.0097 0.0099
PROFIT MARGIN
Interest income (i) 6,419,587 7,076,636 7,613,878 8,387,957 9,070,573
Interest expense (ii) 2,504,042 3,149,992 3,445,235 3,804,657 3,987,855
(a) subtotal = (i-ii) 3,915,545 3,926,644 4,168,643 4,583,300 5,082,718
(b) total asset 170,823,022 186,545,248 206,795,324 234,603,951 264,948,946
Profit margin = (a/b) 0.0229 0.0210 0.0202 0.0195 0.0192
EARNING ASSETS TO TOTAL ASSETS
Earning asset at current year:-
Loans, advances and financing (i)
90,816,549 99,222,358 108,086,083 132,833,310 150,874,563
Derivative assets (ii) 3,262,534 4,080,924 3,945,552 3,909,190 5,999,209
Earning asset a year before:-
Loans, advances and financing (iii)
84,456,367 90,816,549 99,222,358 108,086,083 132,833,310
Derivative assets(iV) 3,203,614 3,262,534 4,080,924 3,945,552 3,909,190
(a) Average earning asset= ((i+ii+iii+iV)/2)
90,869,532 98,691,183 107,667,459 124,387,068 146,808,136
Total asset at current year(V) 170,823,022 186,545,248 206,795,324 234,603,951 264,948,946
Total asset a year before(Vi) 160,221,618 170,823,022 186,722,227 206,795,324 234,603,951
(b) Average total asset= ((V+Vi)/2)
165,522,320 178,684,135 196,758,776 220,699,638 249,776,449
Earning assets to total assets = (a/b)
0.5490 0.5523 0.5472 0.5636 0.5878
ALLOWANCES FOR FINANCING
(a) Allowances for loan/financing losses
275,433 233,275 48,202 231,871 430,894
Total asset at current year(i) 170,823,022 186,545,248 206,795,324 234,603,951 264,948,946
Total asset a year before(ii) 160,221,618 170,823,022 186,722,227 206,795,324 234,603,951
(b) Average total asset ((i+ii)/2) 165,522,320 178,684,135 196,758,776 220,699,638 249,776,449
allowances for financing =( a/b) 0.0017 0.0013 0.0002 0.0011 0.0017
CIMB BERHAD 2010-2014
LIQUIDITY 2010 2011 2012 2013 2014
21
RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000
CURRENT RATIO
A)Cash/Deposits in other Banks Investment in Other Bank
16,083,982 10,848,583 10,708,711 7,950,214 5,383,015
B) Securities/Financial Assets 3,262,534 4,080,924 3,945,552 3,909,190 5,999,209
C) Current Liabilities 146,150,092
158,291,875 172,884,821
197,649,212
221,833,664
CA=(A+B)/C 13% 9% 8% 6% 5%
FIXED ASSETS TURNOVER
A) NET REVENUE 5,617,706 6,408,296 6,451,552 6,648,366 7,106,135
B) AVERAGE FIXED ASSETS 559,276 514,643 497,498 507,253 504,671
FAT=A/B 10.0446 12.4519 12.9680 13.1066 14.0807
TOTAL ASSET TURNOVER
A) NET REVENUE 5,617,706 6,408,296 6,451,552 6,648,366 7,106,135
B) AVERAGE TOTAL ASSETS 165,522,320
178,684,135 196,758,776
220,699,638
249,776,449
TAT=A/B 3% 4% 3% 3% 3%
FINANCIAL LEVERAGE
LEVERAGE RATIO
A) TOTAL LIABILITIES 155,081,898
169,585,650 188,547,664
214,582,471
240,858,205
B) TOTAL COMMON EQUITY 15,741,124 17,136,577 18,247,660 20,021,480 24,090,741
LR=A/B 9.8520 9.8961 10.3327 10.7176 9.9980
FINANCING/LOANS TO DEPOSITS RATIO
A) AVERAGE TOTAL FINANCING/LOANS
87636458 50369454 103654221 120459696 141853937
B) AVERAGE TOTAL DEPOSITS 651,077,116
143,255,373 145,055,373
175,333,148
196,195,804
LOAN TO DEPOSIT RATIO= A/B
0.1346 0.3516 0.7146 0.6870 0.7230
ASSET QUALITY
22
NON-CURRENT FINANCING/LOANS TO TOTAL FINANCING/LOANS RATIO
A) TOTAL NON CURRENT FINANCING/ LOANS
1,905,843 1,631,450 1,710,386 2,546,780 5,263,421
B) TOTAL FINANCING /LOANS 90816549 99222358 108086083 132833310 150874563
RATIO= A/B 2.10% 1.64% 1.58% 1.92% 3.49%
ALLOWANCE FOR FINANCING/LOAN LOSSES TO NON-CURRENT FINANCING/LOANS RATIO
A) ALLOWANCES FOR FINANCING/LOAN LOSSES
275,433 233,275 48,202 231,871 430,894
B) TOTAL NON-CURRENT FINANCING/LOANS
1,905,843 1,631,450 1,710,386 2,546,780 5,263,421
RATIO= A/B 14.45% 14.30% 2.82% 9.10% 8.19%