Page 12 - MAYBANK vs EPF

INTERNAL COMPARISON OF EMPLOYEES PROVIDENT FUNDS (EPF) BY 3 YEARS

MEASURE OF BANK 2016 2017 2018
PERFORMANCE (RM’000) (RM’000) (RM’000)
PROFITABILITY RATIO

i) Return on Asset = RM36,865,132 = RM47,990,222 = RM30,666,387
= _Net Profit_ RM742,324,479 RM813,425,347 RM836,542,189
Total Assets
= 4.97% = 5.90% = 3.67%

Comment: The return on asset of 2016 is 4.79%, for 2017 is 5.90% and for 2018 is 3.67%. 2017 has the
highest return on asset as compared to 2016 and 2018. It shows that EPF company on 2017 be able to control
costs in its operation (assets are productive) and provide more return.

ii) Return on Equity
= Net Profit = 4.79% = 5.90% = 3.67%
Equity x x x
@ RM742,324,479 RM813,425,347 RM836,542,189
= ROA x Leverage Measure RM737,048,394 RM810,399,335 RM832,310,406
= Net Profit x Total Assets
Total Assets Equity = 4.82% = 5.92% = 3.69%

Comment: The return on equity of 2016 is 4.82%, for 2017 is 5.92% and for 2018 is 3.67%. 2017 has the
highest return on equity as compared to 2016 and 2018. It shows that EPF company for 2017 be able to
maximize the owner’s wealth and give higher return for the owners of the firm.

iii) Interest Spread
=Interest Income – Interest Expenses = (RM451,412 - = (RM3,107,257 -
Total Assets RM253,823) RM1,655,231)
RM742,324,479 RM813,425,347 -

= 0.03% =0.18%

Comment: The interest spread of 2016 is 0.03% which has the higher margin as compared to 2017 which is
0.18%. It shows in year 2016, EPF company has the higher the profitability of bank and the better performance
of bank.

LIQUIDITY RATIO
Loan to Asset = Loan___ = RM70,590,310 = RM71,345,893 = RM59,378,178
Total Assets RM742,324,479 RM813,425,347 RM836,542,189

= 9.51% = 8.77% = 7.10%

12 | P a g e