Page 4 - MAYBANK vs EPF

2.0 PART A : PERFORMANCE EVALUATION

INTERNAL COMPARISON OF MAYBANK FOR 3 YEARS

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

i) Return on Asset = _RM6,740,000_ = _RM6,122,875_ = _RM7,307,811_
= _Net Profit_ RM496,062,610 RM509,666,821 RM456,613,298
Total Assets
= 1.36% = 1.20% = 1.60%

Comment: Return on asset in the year 2016 is 1.36%, 1.20% in year 2017 and 1.60% in the year 2018. It
shows ratio in the year 2018 able to gain more profitability.

ii) Return on Equity
= Net Profit = RM6,740,000_ = RM7,520,000_ = RM7,307,811_
Equity RM57,004,632 RM57,994,632 RM65,589,267
@
= ROA x Leverage Measure = 11.82% = 12.97% = 11.14%
= Net Profit x Total Assets
Total Assets Equity

Comment: The return on equity of 2016 is 11.82%, for 2017 is 12.97% and for 2018 is 11.14%. Ratio in 2017
has the highest return on equity as compared to 2016 and 2018. It shows that Maybank 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 = (RM15,076,533- = (RM16,099,945- = (RM17,467,504 -
Total Assets RM7,134,624)___ RM7,306,999)___ RM8,663,559)___
RM496,062,610 RM765,300,000 RM456,613,298

= _RM7,941,908_ = _RM8,792,946_ = _RM8,803,945_
RM496,062,610 RM765,300,000 RM456,613,298

= 1.60% = 1.15% = 1.93%

Comment: Based on performance of Maybank from 2016 until 2018, it shows that the interest spread of year
2018 which is 1.93% is higher than 1.60% in year 2016 and 1.15% in year 2017. Thus, we can conclude that
in 2018, Maybank have higher margin and higher profitability and have the better performance.

LIQUIDITY RATIO

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