Page 16 - MAYBANK vs EPF

5. Non-performing Loan

NON-PERFORMING LOAN

3.70%
4.00%
3.00%

2.00%
1.00% 0.0500% 0.0040%
0.00%
2016 2017 2018
2016 2017 2018

Non-performing loan Ratio for the year of 2016 is 0.05%, for 2017 is 0.004% and for 2018 is

3.70%. It shows at the year of 2018 has the highest NPL ratio. The higher the ratio, the poorer
the bank’s asset quality, the poorer the bank performance. The institution can improve the
performance by detecting earlier of the non-performing loans. Early detection is one of the major

steps that can be taken to defend against and limit he impact of NPLs. The institution should not
rely only to the past due payments that make the lender with fewer options for correcting their

mistakes, hence helping the borrower.

6. Loan to Deposit Ratio

LOAN TO DEPOSIT

300% 256%
175%
200% 141%
100%
0%
2016 2017 2018

2016 2017 2018

Loan to deposit to ratio for 2016 is 175%, for 2017 is 256% and for 2018 is 141%. 2017
has the highest loan to deposit ratio so the higher ratio indicates better profit as it will face higher

risk (risk of NPL). This shows the decreasing of performance on the year of 2018. The
improvement can be done by government is impose higher rate for deposit in order to increase
the deposit ratio. The institution will be able to roll on of the other bills with other institution.

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