A.

Introduction

CIMB Group Holdings Berhad is a Malaysia Universal Bank headquartered in Kuala Lumpur,
Malaysia. CIMB has various branches across the region.

CIMB primary activities including Consumer Banking, Wholesale Banking, Comprising Investment

Banking and Corporate Banking, Treasury & Markets, and Group Strategy & Strategic Investments,
with its core markets being Malaysia, Indonesia, Singapore and Thailand.

CIMB Group Holdings Berhad has been listed on the Main Market of Bursa Malaysia since 1987 with
a market capitalisation of RM38.7 billion. Total assets at the end of 2015 were RM461.6 billion, with
total shareholders’ funds of RM41.1 billion and total Islamic assets of RM70.7 billion.

Since CIMB Group Holdings Berhad is one of the 10 largest group banking in Asean, further analysis
in company performance has been done to compare the trend analysis and to show how the company
manage their assets, liabilities and equity of the company.

Parallel with the Chairman of CIMB Group statement in Annual Report “As a leading financial
services provider, with presence in all the 10 ASEAN markets, one of the key determinants of our
continuing success is our accountability and commitment towards our multiple stakeholders. At CIMB
Group, our emphasis is on forging partnerships of trust and strengthening our relationships by
creating and delivering value. Our Annual Report is a credible medium to not just disseminate
information critical to our business and growth, but to communicate with our stakeholders with
integrity and transparency. It is our sincere effort to present the growth story of CIMB Group and its
people”, will be able them to continuously growth for another 20 years onward.
 B. Below are the Company Performance Ratios (please refer page 28-30 in Annual Financial
Statement for CIMB Group Berhad) :
NO RATIOS 2018 2017
Liquidity Ratio
1 Quick Ratio (Times)
= Current Assets - Inventories = 533,768,876 - 0 = 501,888,594 - 0
Current Liabilities 481,413,601 453,061,489
=1.11 = 1.11
2 Current Ratio (Times)
= Current Assets = 533,768,876 - 0 = 501,888,594 - 0
Current Liabilities 481,413,601 453,061,489
=1.11 = 1.11
3 Net Working Capital (RM)
= Current Assets - Current Liabilities = 533,768,876 - = 501,888,594 -
481,413,601 453,061,489
= 52,355,275 = 48,827,105
Profitability Ratio (Rate of Return Ratios)
4 Return on Capital Employed (%)
= Profit Before Taxation and Zakat = 7,200,667 = 6,109,985
Total Assets - Current Liabilities 534,089,043 - 506,499,532 -
481,413,601 453,061,489
= 13.67 = 11.43
5 Return on Assets (%)
= Profit for the year = 5,663,353 = 4,607,966
Total Assets 534,089,043 506,499,532
= 1.06 = 9.10
6 Return on Equity (%)
= Profit After Tax = 5,663,353 = 4,607,966
Total Equity 52,587,971 49,806,435
= 10.77 = 9.25
Leverage Ratios
7 Debt to Equity (%)
= Total Long Term Debt = 87,471 = 3,631,608
Total Equity 534,089,043 506,499,532
= 1.64 = 7.17
8 Debt to Capital (%)
= Total Debt = 481,501,072 = 456,693,097
Total Debt + Total Equity 481,501,072 + 456,693,097 +
534,089,043 506,499,532
= 47.41 = 47.41
9 Debt Ratio (%)
= Total Liabilities = 481,501,072 = 456,693,097
Total Assets 534,089,043 506,499,532
= 90.15 = 90.17
10 Interest Coverage Ratio (Times)
= Profit Before Interest and Tax = 7,200,667 = 6,109,985
Interest Expenses 9,604,351 9,049,593
= 0.75 = 0.68
Earnings Ratios
11 Earnings Per Share Ratio (%)
= Profit for the year = 5,583,510 = 4,475,175
Number of Shares Held 9,356,695 9,016,943
= 59.67 = 49.63

Note : All amount is in RM’000

C. Analysis on Consolidated Company Performance for the year 2018 and 2017.

Studies shows the trend analysis for CIMB Group Consolidated Statement for the year 2017 and 2018.

Liquidity Ratios.
For liquidity ratios, quick ratio, current ratio and net working capital has been taken into consideration
in analyzing the trend analysis for CIMB Group Consolidated Statement for the year 2018 and 2017.
Liquidity ratios shows the ability of the CIMB Group Company to convert the short-term obligations
into cash.

1. Quick Ratio.
Quick ratio measures the ability of the company to pay its short-terms obligation without taking into
consideration the inventories amount and how quick can be easily to convert into cash.

It shows that quick ratio of CIMB Group Consolidated Statement for the year 2018 and 2017 was
similar which is 1.11 times (refer table B for the ratio calculation).

Since quick ratio showed no difference for two years, it shows that CIMB Group able to pay its short-
terms loan for RM1.11 that can easily convert into cash without taking inventories into consideration
because it’s no longer used for this ratio. If the quick ratio for 2018 is higher than 2017 i.e 1.21 times, it
shows that the liquidity of CIMB Group in 2018 is better than 2017 to pay it’s short-terms loans.

2. Current Ratio.
Current ratio measures the ability of the company to pay its short-terms loan using its current assents
on every ringgit in its current liabilities.

It shows that current ratio of CIMB Group Consolidated Statement for the year 2018 and 2017 was
similar which is 1.11 times (refer table B for the ratio calculation).

The current ratio shows that CIMB Group able to pay it’s short-terms loan using its current assets by
RM1.11 only for every ringgit in its current liabilities. The ratio was similar to the quick ratio due to no
inventories amount to be counted for.

3. Net Working Capital.

Net working Capital measures the funds which is including the cash and items that are easily converted
into cash that are owned by the company in managing their operating activities.

It shows that net working capital of CIMB Group Consolidated Statement for year 2018 is
RM52,355,275 and year 2017 is RM48,827,105 (refer table B for the ratio calculation).

Based on the calculation above, the net working capital of CIMB Group for year 2018 is higher than
year 2017. It shows the increase of 7.22% (RM52,355,275 - RM48,827,105/RM48,827,105*100%)
from the last year. This shows that CIMB Group has higher surplus funds to settle its short-terms
obligation in year 2018.

Profitability Ratios (Rate of Returns).

For profitability ratio, return on capital employed, return on assets and return on equity are taking into
consideration in analyzing the trend analysis for CIMB Group. Profitability ratio measures the
effectiveness of the CIMB Group Company in generating the profits from its investment.

4. Return of Capital Employed Ratio.

Return on capital employed measures how efficiently a company can generate profits from its capital
employed by comparing net operating profit to capital employed.

It shows that return on capital employed of CIMB Group Consolidated Statement for year 2018 is
13.67% and year 2017 is 11.41% (refer table B for the ratio calculation).

Return on capital employed shows increased in year 2018 of 19.81% (13.67% - 11.41% / 11.41%
*100%) compared to last year. CIMB Group generates profits from its capital employed by comparing
net operating profit to capital employed.
5. Return on Assets Ratio.
Return on Assets measures how the company generates its profits by using their company’s assets.

It shows that return on assets of CIMB Group Consolidated Statement for year 2018 is 1.06% and year
2017 is 9.10% (refer table B for the ratio calculation).

CIMB Group has better return on assets on year 2017 to generates more profit using their assets.

6. Return on Equity Ratio.

Return on Equity measures the ability of the company to generate its profits to serve their shareholders.
The higher the ratio, the better the profit for their shareholder to maximize its profits.

It shows that return on equity of CIMB Group Consolidated Statement for year 2018 is 10.77% and
year 2017 is 9.25% (refer table B for the ratio calculation).

It shows that return on equity is more satisfactory for the year 2018 which its shareholders can
maximize and enjoy its profits up to increase of 16.43% (10.77% - 9.25%/9.25%*100%) compared to
last year.

Leverage Ratios.
For leverage ratios, debt to equity, debt to capital, debt ratio and interest coverage ratio are taking into
consideration in analyzing the trend analysis for CIMB Group. Leverage ratios measures a company
level of debt funding and the ability of the company to fulfill its financial demands such as interest
claim.

7. Debt to Equity Ratio.

Debt to equity measures the total long-term debts for each ringgit of equity. The lower the ratio, the
better it is because it shows that the total equity owned by the company exceeds the long-term debts.

It shows that debt to equity of CIMB Group Consolidated Statement for year 2018 is 1.64% and year
2017 is 7.17% (refer table B for the ratio calculation).

The debt to equity ratio shows a decrease for the year 2018 of 77.13% (1.64% - 7.17%/7.17%*100)
compared to last year which this decrease of 77.13% shows this year has better total equity which
exceed the long term debts.

8. Debt to Capital Ratio.

Debt to capital ratio measures a company's financial leverage, calculated as the company's debt divided
by its total capital and debt. The higher the debt-to-capital ratio, the more debt the company has
compared to its equity. This tells investors whether a company is more prone to using debt financing
or equity financing.

It shows that debt to capital of CIMB Group Consolidated Statement for the year 2018 and 2017 was
similar which is 47.41% (refer table B for the ratio calculation).

Debt to capital ratio show no difference for these two years.

9. Debt Ratio.
Debt ratio measures the percentage of total assets that are finance by debts. The lower the ratio, the
higher the protection for their losses upon liquidation.

It shows that debt ratio of CIMB Group Consolidated Statement for year 2018 is 90.15% and year 2017
is 90.17% (refer table B for the ratio calculation).

The debt to equity ratio shows a slightly difference for the year 2018 of 2% (90.15% - 90.17%)
compared to last year which this decrease of 2% shows this year has better total equity which exceed
the total debts.
10. Interest Coverage Ratio.
Interest coverage ratio measures is used to decide the number of times the company can repay all its
interest expenses with the current income.

It shows that interest coverage ratio of CIMB Group Consolidated Statement for year 2018 is 0.75
times and year 2017 is 0.68 times (refer table B for the ratio calculation).

Interest coverage ration of CIMB Group for year 2018 of 0.75 times is more satisfactory compared to
last year of 0.68 times to repay all its interest expense with the current income.

Earnings Ratio.
Earnings ratio measures the ability of the company generates its profit.

11. Earnings per Share Ratio.

Earnings per share ratio measures the company’s profit allocated with the number of shares held by
company.

It shows that earnings per share ratio of CIMB Group Consolidated Statement for year 2018 is 59.67%
and year 2017 is 49.63% (refer table B for the ratio calculation).

CIMB Group obtained RM0.59 for each unit of shares issued compared to the last year only RM0.49.
This value represents the actual amount that will be distributed to the shareholders of CIMB Group
Berhad.

D. Conclusion.
In conclusion, CIMB Group has better ratio performance in year 2018 compared to 2017 as all the ratis
shows good and outstanding performance to continuously growth in the future.