Page 15 - MAYBANK vs EPF

relative to its equity capital, a company can increase its return on equity. Apart from that, as profits
are in the numerator of the return on equity ratio, increasing profits relative to equity increases a

company's return on equity.

3. Interest Spread

INTEREST SPREAD

0.18%
0.20%
0.10% 0.03% 0%
0.00%

2016 2017 2018
2016 2017 2018

The interest spread is a difference between the interest income and interest expenses that
the EPF got from the customers. The interest spread for 2016 is 0.03% and it increase to 0.18%

in year 2017. there is no interest spread on 2018. It shows in year 2016, EPF company has the
higher the profitability of bank and the better the performance of bank.

4. Loan to Asset

LOAN TO ASSET
10.00% 9.51% 8.77% 7.10%
5.00%

0.00%
2016 2017 2018

2016 2017 2018

Loan on asset is used to measures the total loans outstanding as a percentage of

total assets. Liquidity ratio of EPF company shows the decreasing pattern since the loan to asset

ratio for 2016 is 9.51% and decreasing for the year 2017 which is 8.77% and for the year 2018 is
7.10%. It shows in the year of 2018 has the highest ratio as compared to 2016 and 2017. The
higher the loan to total assets, the lower the liquidity, the higher the credit risk.

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