Page 14 - FIN435 RHB vs BPMB

3. CORE CAPITAL RATIO

The core capital ratio is a measurement of a company's financial leverage. Based on

the data comparison, Public Bank has higher ratio of 120.43% CCR compared to RHB
Bank that only records 16.91% CCR. We can conclude that Public Bank has higher

company capital fund dependent towards debt than RHB Bank.

4. ASSET QUALITY RATIO: NON-PERFORMING LOAN (NPL) RATIO

The non-performing loan ratio, better known as the NPL ratio, is the ratio of the amount

of non-performing loans in a bank's loan portfolio to the total amount of outstanding
loans the bank holds. Based on the data comparison, we can observe that RHB Bank

has higher NPL ratio which is 1.93% compared to only 0.59% by Public Bank. We can
conclude that RHB Bank may face higher credit quality risk compared to Public Bank
due to high number of outstanding loans.

5. ASSET QUALITY RATIO: LOAN TO DEPOSIT RATIO

The loan-to-deposit ratio (LDR) is used to assess a bank's liquidity by comparing a

bank's total loans to its total deposits for the same period. Based on data comparison,
Public Bank has higher ratio which is 0.91 times compared to RHB Bank that only
recorded 0.86 times. We can be concluded that Public Bank may has better profit due

to higher number of loans, but also obtain higher risk and may not have enough
liquidity to cover any unforeseen fund requirements.

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