Page 17 - MAYBANK vs EPF

EXTERNAL COMPARISON BETWEEN MAYBANK AND CIMB BANK FOR THE YEAR 2018

MEASURE OF BANK MAYBANK CIMB BANK
PERFORMANCE (RM’000) (RM’000)
PROFITABILITY RATIO

i) Return on Asset = _RM7,307,811_ = 1.07%
= _Net Profit_ RM456,613,298
Total Assets
= 1.60%

Comment: Based on the performance of Maybank and CIMB Bank in the year of 2018, Maybank
has the better return on asset which is 1.60% compared to CIMB Bank which is 1.07%. It shows
Maybank be able to control costs in its operation (assets are productive) and provide more return.

ii) Return on Equity
= Net Profit = _RM7,307,811_ = 11.40%
Equity RM65,589,267
@
= ROA x Leverage Measure = 11.14%
= Net Profit x Total Assets
Total Assets Equity

Comment: Return on equity of Maybank in year 2018 is 11.14% while CIMB Bank is 11.40%. CIMB
Bank has the highest return on equity and it shows that CIMB Bank 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 = (RM17,467,504-RM8,663,559) = 1.68%
Total Assets RM456,613,298

= _RM8,803,945_
RM456,613,298

= 1.93%

Comment: Interest spread for Maybank is 1.93% which is the highest margin as compared to the
CIMB Bank,1.68%. It shows that Maybank has the higher profitability and better performance of bank.

LIQUIDITY RATIO
Loan to Asset = Loan___
Total Assets = (RM17,052,024+RM213,314,768) = RM346,290,529
RM456,613,298 RM533,089,043

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