Malayan Banking Berhad (Maybank), the largest bank and financial group in the country, announced that they will focus on Singapore and Indonesia as their key international income provider, after its 50th annual general meeting at the Sime Darby Convention Centre today.
The AGM was attended by about 2,000 shareholders and it took almost four hours with the approval of all 11 resolutions.
Datuk Seri Wahid Omar, president and chief executive officer (CEO) of Maybank told reporters that he expects its operations overseas, especially in Singapore and Indonesia to contribute 40 per cent of the group’s annual income in five years, up from the 21 per cent recorded this year.
He said the group had exceeded all key performance indicators (KPI) for financial year 2010, crediting the country’s GDP growth.
There are two KPIs for financial year 2011 which are the group’s loans and debt securities growth of 12 per cent and return on equity of 14 per cent.
GDP was forecasted to rebound with 7.5 per cent growth in 2010 and 6.1 per cent in 2011.
“We believe that there is enough momentum to carry through into the second half, ending next year,” the group’s CEO said optimistically.
“Globally, we’re in the top 20,” Wahid pointed out.
Tan Sri Megat Zaharuddin Megat Nor, director and chairman of Maybank, shared Wahid’s optimism.
“We have a clear vision, by 2015, we want to be a regional financial services leader.
“We know who are our peers that we need to overtake, we know which areas of businesses we should focus on, which countries we should put our efforts into building capabilities, the leverage on the strength we have built on in Malaysia for example,” Megat Zaharuddin said zealously.
Wahid said the group’s current focus will be on the two neighbouring countries.
“Singapore and Indonesia are expected to grow as we leverage further on our new Global Wholesale Banking platform,” he said.
Wahid said the group expects to have 450 branches in Indonesia by 2012 from the current 294 branches.As for Singapore, he sees an advantage given it’s rather small presence in the country.
“Being small in Singapore makes us more agile,” he added that there would be opportunities to penetrate a bigger market.
He pointed out that 1 out of five vehicles in singapore is funded by Maybank Singapore, among the top five banks in the country.
Wahid also said that Islamic bank in Malaysia contributes to more than RM 500 billion.
He announced that the group had just gotten approval yesterday to convert Bank Maybank Indo Corp to a fully compliant Syariah bank which will be named Maybank Syariah Indonesia.
Islamic banking is identified as key differentiator with target financing growth of 25 per cent.
Megat Zaharuddin commented on the Bank Internasional Indonesia (BII) 97.5 per cent acquisition in 2008, almost immediately after Wahid was appointed as president and CEO.
He pointed out the turn around of BII growth up to 3 per cent was recorded, in the past year. “We have strengthen our position in domestic retail. We’re well on our way to become the domestic insurance champion and we’re also well on our way to enhancing our Islamic assets to become the largest Asean Islamic bank,” Megat Zaharuddin said.
Maybank has recorded growth in profits compared to financial year 2009 due to improved performance across all business segments, the highest being in international banking from RM 311 million to RM 1,251 million, a whopping jump of 302.2 per cent.
The target for return on equity exceeded the 11 per cent target with 13.6 per cent while the revenue growth was revcorded at 22.4 per cent, a huge jump from the forecasted 8 per cent.
Maybank is among the top 10 banks in the region, contributed by factors such as total assets, net loans and deposits, profit after tax and minority interest (PATAMI) and market capitalisation.
The group is positioned as the sixth in total assets and market capitalisation.
The bank’s share prices had also rose 28.1 per cent during financial year 2010 and 46.1 per cent from June 30, 2009, to date.
After July 8, there was a hike in overnight policy rate to 2.75 per cent but interest rates is not expected to rise in the next nine to 12 months, according to Wahid.
Ringgit is also expected to rise from RM3.10 to RM3.15 by the end of the year and inflation is expected to rise to 2 per cent in 2010 form 0.6 per cent, last year.
The newly introduced dividend reinvestment plan, which is an equity investment option offered directly from the company, in this case, Maybank. The investor does not receive quarterly dividends directly as cash, instead, the investor’s dividends are directly reinvested in the underlying equity.
Maybank will put the dividend reinvestment plan to “ensure robust capital adequacy” effective in October, being the first Malaysian company to do so.
For the financial year 2010, Malaysia, the dominant market, brought in 79 per cent in profit, followed by Singapore, 15.2 per cent and Indonesia, 4.4 per cent.
Since founded in 1960, the group’s total assets is worth more than US$100 billion (RM308.65 billion), it has more than US$1 billion profit after tax, employes more than 40,000 people and it has more than 1,750 offices in 14 countries, serving more than 18 million customers.
Source : http://www.themalaysianinsider.com/business/article/maybank-expects-singapore-indonesia-to-cement-regional-presence/ - Sept 29, 2010
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