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NBF6A FIN 658 Group Assignment

Financial Statement Analysis (Universiti Teknologi MARA)

Studocu is not sponsored or endorsed by any college or university

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RHB VS MAYBANK

SEMESTER : OCT2021 – FEB2022

COURSE FINANCIAL STATEMENT
ANALYSIS
COURSE CODE FIN 658
GROUP NBF6A
DATE OF SUBMISSION 23 JANUARY 2022
NAME OF LECTURER MDM NUR AFIZAH BINTI
MUHAMAD ARIFIN

PREPARED BY:
NAME STUDENT ID
MUHAMAD HAFIZUL AIMAN 2019848164
BIN MAT HUSSAIN
DAYANA AQILAH QUA BINTI 2019148119
AHMAD SHADIDUL QUA
SITI ASIAH BINTI ZAKARIA 2019585407
INTAN NOR DALILA BINTI
BADEROL HISSAM 2019185853
MAZWIN BINTI MD YUSOP 2019564651

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TABLE OF CONTENT

NO TITTLE PAGE
1 Executive Summary 1
2 Introduction Of The Company 2
I. Industry Analysis 3–6
II. Strategy Analysis 7–8
3 Financial Analysis
I. Cash Flow Analysis 9 – 13
II. Fsa Tools (choose either or: common size or year 14 – 17
to year change or index)
III.Financial Ratios Analysis: Analyze and interpret the 18 – 25
selected ratios
4 Conclusion: by identifying the strength and weakness 26 – 27
5 Recommendation 28

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1.0 EXECUTIVE SUMMARY

This report to compare the financial operations and performance of Maybank and
RHB Bank Berhad from 2016 to 2020. The industry analysis, strategy analysis,
comparison analysis, common size analysis, financial ratios analysis, and cash flow
analysis will all be covered in this study.

In the analysis, We will compare the strategy and industry of Maybank and RHB
Bank Berhad from 2016 to 2020, and after completing a comparative analysis on a year-
to-year basis and using a common size analysis, we will evaluate the strengths and weak-
nesses based on the analysis.

The goal of creating this report is to get involved in financial analysis using
financial statements and other resources. Financial Statement Analysis (FSA) is a method
of analyzing financial statements in order to make sound business decisions. Financial
Statement Analysis converts a few raw financial data points from financial statements
into usable information that can be used to make decisions.

The goal is to learn about the company's performance and which company
outperforms the others. To begin, in order to understand the company's performance,
some analysis must be performed, including industry analysis, strategy analysis,
comparative analysis, common size analysis, financial ratios analysis, and cash flow
analysis. The next goal is to determine which company outperforms the others. The
ability to perform financial analysis aims to increase a company's profitability. The firm's
ability to generate income and sustain growth over the long and short term. In addition to
satisfying current debts, the firm's ability to sustain positive cash flow.

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2.0 INTRODUCTION

MAYBANK

Maybank is Malaysia's largest bank by market capitalization and total assets, as

well as one of Southeast Asia's largest banks, with total assets exceeding US$203 billion
and a net profit of US$1.98 billion in 2019. Maybank is also ranked 349th in the Forbes
Global 2000 Leading Companies (as at May 2020) and 106th in The Banker's 2020 Top
1000 World Banks (as of July 2020). Maybank is the largest publicly traded company on
the Malaysian stock exchange, Bursa Malaysia, with a market capitalization of US$23.7
billion as of December 31, 2019. Maybank Islamic, the Islamic banking arm of Maybank,
is the largest Islamic bank in ASEAN and Malaysia in terms of assets, and was named
The Banker's Global Islamic Bank of the Year for 2020. Maybank's network includes all
ten ASEAN nations, as well as key Asian countries and global financial centers, and it
has over 2,600 retail banking branches and 43,000 employees worldwide.

RHB BANK BERHAD

RHB Banking Group is a multinational regional financial services provider

committed to providing comprehensive solutions to customers through differentiated
segment offerings and an ecosystem that enables simple, fast, and seamless customer
experiences, all backed up by a cohesive and inspired workforce and strong relationships
with stakeholders. RHB, which is ranked among Malaysia's top banks and has a sizable
presence in ASEAN, enjoys strong market leadership in Malaysia across key products
and areas. RHB's presence in the ASEAN area encompasses nine countries and employs
more than 14,000 people. RHB Banking Group is Malaysia's only fully integrated
financial services group. Group Community Banking, Group Wholesale Banking, Group
Shariah Business, Group International Business, and Group Insurance are the Group's key
operations.

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I. INDUSTRY ANALYSIS

SWOT MAYBANK RHB BANK BERHAD

STRENGTHS 1. Malayan Banking Berhad 1. The acquisition of OSK
(Maybank) is the market leader Investment Bank has further
in Malaysia and the country's strengthened the RHB Banking
largest bank. Maybank is the Group’s ASEAN footprint.
largest Banking Service
provider in Malaysia where 2. The Group has expanded its
they place their ATM Machines customer base to eight
widely available all over countries, including Malaysia,
Malaysia. Brunei, Cambodia, Indonesia,
Hong Kong (with a
2. Additionally, they were the representative office in China),
first bank to offer instant Singapore, Thailand, and
international money transfers Vietnam.
via Malaysia, Singapore,
Indonesia, Brunei, the 3. By acquiring OSK
Philippines, Cambodia, and Investment Bank Berhad
Pakistan. Their product line (OSKIB), the Group was able to
included finance, loans, use the comparative capabilities
deposits, and insurance, in of OSKIB and the RHB
addition to investment banks. Banking Group in order to
provide greater value to clients.
3. Maybank was also the first
bank in Malaysia to implement 4, Over 17000 people are a part
internet banking, as evidenced of the bank providing customers
by the maybank2u website. across SE Asia banking
solutions. Its services include
retail banking, corporate
banking, Islamic banking.

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WEAKNESSES 1.Maybank's problem is that its 1.Earnings fell on realized net

customer satisfaction rating loss on revaluation of financial
remains poor, with the bank investments available-for-sale
ranking seventh out of eight (AFS).
banks in Malaysia for customer
service in 2012. 2. Lack of advertisement and
promotions in comparison to
2. Inefficient service and bad other major banks such as
customer service are also two HSBC and it has less activities
of Maybank's weaknesses. For when compared to competitors.
instance, Maybank does not
have bank automated systems 3. RHB not performing strongly
with built-in security in the online banking field
safeguards for verifying their especially in user friendliness of
customers' accounts and their applications.
personal information. This
makes it more difficult for
customers to replace cards or
switch accounts if they visit a
different office.

3. Additionally, Maybank has a

reputation for innovation and
originality in product
development. They remain
exposed, however, to the
danger that their creativity
would deteriorate over time as
a result of the homogeneous
items offered.

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OPPORTUNITIES 1.Maybank have the 1. Expand its access to the

opportunity to grow global remaining ASEAN markets
Islamic Finance Market as a where it is not present
Maybank Islamic Berhad.
2. Increase domestic footprint
2. Maybank has the opportunity with the acquisition of PT Bank
to expand its customer base Mestika in Indonesia.
through internet banking. They
can promote online banking 3. Additionally, the Group has
usage since moderate users and embraced the 'digital world' and
people tend to do more has to redouble its efforts to
transactions and banking increase our profile on social
activities online, while networking sites.
businesses and organizations
can access a variety of services
via an online system.

3. Restructuring their approach

to hunt for possible investments
and acquisition prospects, with
deep knowledge of the
companies' strategies, financial
performance.

4. Maybank has the opportunity

to expand its business in the
ASEAN region. On the other
hand, Maybank can invest in
technology to improve its
services, resulting in increased
customer base.

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THREATS 1. Public Bank, CIMB Bank, 1. The Malaysian Retail

Hong Leong Bank, RHB Bank, Banking sector faced challenges
HSBC Bank, and Citibank are in 2012 such as the
Maybank's primary implementation of prudent
competitors. lending practices

2. Maybank2u.com does not 2. Due to the competition

monopolize the market and among Malaysian banks, rivals'
there are competitors such as strategies and policies should be
Hong Leong online banking, actively observed and
CIMB clicks and many more. researched, and prompt and
effective responses should be
3. Additionally, Maybank developed.
customers are usually
concerned about the security of 3. This global economic crisis
online banking. They are more has impacted every financial
inclined to use traditional institution, including RHB, and
banking methods rather than as a result, proper precautions
online banking. must be taken to mitigate losses.

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II. STRATEGY ANALYSIS

MAYBANK RHB BANK

I. The Top ASEAN Community Bank I. Fund Our Journey
 Maybank aspires to be ASEAN's  Boosting revenue from priorities
leading provider of retail and customer segments, as well as
commercial financial services by through optimizing the use of
capitalizing on our regional capital by focusing on three key
presence, banking expertise, and segments, which are The Affluent
growth opportunities in the region. and Wealth Space, The SME
Segment and The large & mid-cap
II. The Leading ASEAN Wholesale Bank companies.
Linking Asia
 Maybank aspires to be the trusted II. Invest To Win
financial partner in ASEAN that  Investing in technological and
connects Asia by leveraging our digital initiatives that will set us
ASEAN leadership capabilities to apart from the competition,
deliver client solutions throughout repurposing our branch network
the region. and strategically expanding our
international footprint.
III. The Leading ASEAN Insurer
 Maybank aspires to be a market III. Transform the Organization
leader in ASEAN insurance by  Creating a successful operating
capitalizing on synergies between model that places a premium on
Maybank's regional banking customer journeys, agility,
footprint and Etiqa's expertise in analytics, and digital enablement, as
takaful and bancassurance. well as growing our talent pool. We
will implement an Agile
methodology across the
organization in order to increase
productivity and reduce time to

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IV. The Global Leader in Islamic market, transforming RHB into a

Finance fast, nimble, and customer-centric
 Maybank intends to continue organization. We intend to
providing innovative universal accomplish our objectives through
financial solutions center on the the application of our distinctive
needs of the client, building on our RHB values and culture
global leadership in Islamic finance. components.

V. Digital Bank of Choice

 Maybank aspires to be the preferred
digital bank by prioritizing our
customers' needs and transforming
to deliver a next-generation
customer experience.

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RHB CASH FLOW STATEMENT

2020 2019 2018 2017 2016

RHB CASH FLOW STATEMENT
RM '000 RM '000 RM '000 RM '000 RM '000
CASH FLOW FROM OPERATING ACTIVITIES

Profit before taxation 2,233,098 2,191,234 2,235,717 1,849,243 1,576,756

Adjustments for:

Allowance for credit losses on loans, advances and financing 1,019,203 546,792 441,823 514,421 663,910

Allowance for credit losses on other financial assets 4,042 -319 935 0 0

Property, plant and equipment:

- Depreciation 92,591 99,854 91,556 84,729 85,145

- Gain on disposal -2,209 -2,489 -71 -18 -697

- Written off 1 956 10 114 8,664

Intangible assets:

- Amortisation 100,434 99,694 81,998 62,664 51,180

- Written off 0 5 0 239 0

Right of use assets:

- Depreciation 52,083 47,952 0 0 0

- Gain on modification -4 0 0 0 0

Impairment losses on investment in a subsidiary 52,500 0 0 0 0

Net allowance made/(written back) on financial assets at FVOCI and financial

54,612 -36,402 -14,487 214,219 249,259
investments at amortised cost /financial investments AFS and HTM

Net gain arising from disposal/redemption of financial assets at FVTPL, financial

-491,081 -294,564 -83,309 -36,255 -79,058
assets at FVOCI and financial investments at amortised cost

Net (gain)/loss on fair value hedges -4,256 528 -56 -115 16

Net unrealised loss on revaluation of financial assets at FVTPL and derivatives 32,586 14,809 -31,670 -25,783 -1,491

Net unrealised foreign exchange gain -68,774 0 0 0 0

Net unrealised foreign exchange loss 0 48,828 79,558 -83,001 -415,474

Dividend income from financial assets at FVOCI -4,404 -9,566 -2,656 -6,515 -5,481

Dividend income from subsidiaries -580,585 -63,544 -9,259 -97,075 -109,469

Net modification loss 158,771 0 0 0 0

Amortisation of premium for borrowings, subordinated obligations and Hybrid Tier-1

1,780 2,653 2,461 2,221 0
Capital Securities

Interest expense on borrowings, senior debt securities, Hybrid Tier-1 Capital

180,243 277,322 292,520 377,418 1,308
Securities, subordinated obligations and lease liabilities

Interest income from financial assets at FVTPL, financial assets at FVOCI and
-1,615,174 -1,632,200 -1,410,046 -1,325,812 -1,289,256
financial investments at amortised cost

Operating profit before working capital changes 1,215,457 1,155,410 1,675,024 1,530,694 735,312

(Increase)/Decrease in operating assets:

Securities purchased under resale agreements 0 0 0 1,257,914 -1,121,097

Deposits and placements with banks and other financial institutions -4,098,229 -2,257,107 284,460 -1,636,510 142,239

Investment accounts due from designated financial institutions -611,524 -330,723 0 0 0

Financial assets at FVTPL 432,624 -466,598 -75,256 313,702 -481,862

Loans, advances and financing -3,653,911 454,259 -287,358 1,586,098 -1,301,504

Other assets -1,100,007 44,503 605,011 2,362,562 -884,528

Statutory deposits 2,380,258 370,624 -440,431 286,669 894,345

-6,650,789 -2,185,042 86,426 4,170,435 -2,752,407

Increase/(Decrease) in operating liabilities:

Deposits from customers 2,822,311 4,229,057 6,376,021 -6,377,437 4,122,333

Deposits and placements of banks and other financial institutions 5,635,585 1,606,605 -5,024,427 -143,922 3,288,763

Obligations on securities sold under repurchase agreements 995,764 651,676 1,532,470 -1,127,084 -2,018,989

Bills and acceptances payable -30,784 -42,043 -39,281 1,345 -197,058

Other liabilities 1,031,246 -317,499 -924,525 -1,154,750 -375,076

Recourse obligation on loans sold to Cagamas -1,265,757 -1,730,120 1,266,271 -1,009,205 593,915

9,188,365 4,397,676 3,186,529 -9,811,053 5,413,888

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2020 2019 2018 2017 2016

RHB CASH FLOW STATEMENT
RM '000 RM '000 RM '000 RM '000 RM '000

Cash generated from operations 3,753,033 3,504,177 4,947,979 -4,500,088 3,396,793

Interest paid -183,821 -303,352 -282,453 0

Net tax paid -350,750 -568,688 -581,093 -273,408 -399,948

Net cash generated from operating activities 3,218,462 2,632,137 4,084,433 -4,773,496 2,996,845

CASH FLOW FROM INVESTING ACTIVITIES

Net purchase of financial assets at FVOCI and financial investments at amortised cost -1,689,715 -4,551,513 -2,861,030 2,484,657 -698,341

Property, plant and equipment:

- Purchase -106,198 -99,136 -93,302 -80,881 -86,529

- Proceeds from disposal 2,765 5,043 99 104 4,573

Intangible assets:

- Purchase -117,565 -124,079 -189,577 -148,414 -125,183

Interest received from financial assets at FVOCI and financial investments at amortised
1,607,002 1,540,450 1,340,677 1,307,474 1,265,194
cost
Dividend income received from subsidiaries 580,585 63,544 97,959 2,375 109,469

Dividend income received from financial assets at FVOCI 4,404 9,566 2,656 6,515 5,481

Capital reduction in subsidiaries 0 0 0 862,523 0

Net cash outflow arising from internal reorganisation 0 0 0 0 -3,614,753

Additional investments in subsidiaries -39,418 -2,225 -415,823 -17,701 -100,000

Net cash generated from/(used in) investing activities 241,860 -3,158,350 -2,118,341 4,416,652 -3,240,089

CASH FLOW FROM FINANCING ACTIVITIES

Drawdown of borrowings 0 0 206,617 606,983 783,021

Repayment of borrowings 0 0 -217,462 -277,195 -669,928

Proceeds from issuance of share capital 0 0 0 0 2,490,001

Net repayment of borrowings -644,344 -130,606 0 0 0

Redemption of senior debt securities 0 -1,256,100 0 0 0

Proceeds from issuance of senior debt securities 300,000 1,255,580 0 -2,173,766 2,242,600

Redemption of Hybrid Tier-1 Capital Securities 0 -600,000 0 0 0

Proceeds from issuance of subordinated notes 1,000,000 0 0 750,000 0

Redemption of subordinated notes -800,000 -1,000,000 0 -2,750,000 -250,000

Dividends paid to equity holders of the Bank -741,858 -1,022,562 -701,758 -481,205 -200,502

Principal lease payments -50,348 -50,323 0 0 0

Net cash used in financing activities -936,550 -2,804,011 -712,603 -4,325,183 4,395,192

Net increase/(decrease) in cash and cash equivalents 2,523,772 -3,330,224 1,253,489 -4,682,027 4,151,948

Effects of exchange rate differences -121,029 -22,209 31,630 -133,580 64,639

Cash and cash equivalents:

- at the beginning of the financial year 5,502,893 8,855,326 7,570,207 12,430,270 8,213,683

- at the end of the financial year 7,905,636 5,502,893 8,855,326 7,614,663 12,430,270

Cash and cash equivalents comprise the following:

- Cash and short term funds 7,905,636 5,502,893 8,855,326 7,614,663 12,430,270

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MAYBANK CASH FLOW STATEMENT

2020 2019 2018 2017 2016

MAYBANK CASH FLOW STATEMENT
RM '000 RM '000 RM '000 RM '000 RM '000
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation and zakat 6,929,010 8,415,383 8,748,426 7,352,614 7,347,267
Adjustments for:
Share of profits in associates and joint ventures - - - - -

Depreciation of property, plant and equipment 101,097 116,073 160,150 186,605 188,540
Depreciation of right-of-use assets 113,197 108,371 - - -
Amortisation of computer software 56,520 49,533 76,737 99,177 128,718
Amortisation of customer relationship - - - - -
Amortisation of agency force - - - - -
Finance costs on lease liabilities 13,550 16,186 - - -
Gain on disposal of property, plant and equipment (17,279) (2,203) (61,117) (62,415) (15,242)
Gain on sale and leaseback transaction - (1,540) - - -
Loss/(gain) on disposal of foreclosed properties - - - (300) -
Net loss on disposal of subsidiaries - 113,470 - (101) -
Net (gain)/loss on disposal/change in structure of deemed
3,275 (7,751) 27,902 - -
controlled structured entities

Net (gain)/loss on liquidation/disposal of interest in associates - 2,193 - - -

Net gain on disposal of financial assets at fair value through
(134,605) (259,162) (82,456) (129,630) (101,170)
profit or loss
Net gain on disposal of financial investments at fair value
(1,517,671) (1,056,482) (11,018) - -
through other comprehensive income
Net gain on disposal of financial investments available-for-
- - - (212,536) (923,826)
sale
Net gain on redemption of financial investments at amortised
- (48) (1,777) - -
cost
Net gain on disposal/redemption of financial investments held-
- - - (182) (11,397)
to-maturity
Modification loss on contractual cash flows arising from
48,979 - - - -
financial asset
Amortisation of premiums/(accretion of discounts), net (238,553) (383,582) (359,113) (107,688) (48,339)

Unrealised (gain)/loss of financial assets/liabilities at fair value

- - - 51,787 (70,606)
through profit or loss and derivatives

Unrealised gain on revaluation of financial assets at fair value

(966,285) (230,641) 184,163 72,611 -
through profit or loss and derivatives

Unrealised (gain)/loss on revaluation of financial liabilities at

(94,503) 529,607 (709,918) (20,824) -
fair value through profit or loss

Unrealised (gain)/loss on revaluation of loans, advances and

(479) 10,573 (9,943) - -
financing at fair value through profit or loss
Allowances for impairment losses on loans, advances and
2,771,970 2,054,379 951,485 1,420,122 2,097,425
financing, net
Allowances for impairment losses on other debts 1,257 12,636 391 2,285 (1,343)
Allowances for/(writeback of) impairment losses on financial
149,466 (11,997) 18,474 1,071 39,851
investments, net
Allowances for impairment losses on other financial assets,
30,926 3,775 (6,040) - -
net
Dividends from subsidiaries and associates (2,640,114) (3,648,227) (2,393,819) (1,920,144) (2,400,457)
Dividends from financial investments portfolio (5,802) (6,593) (5,792) (16,663) (18,569)
ESGP/ESS expenses 42,627 25,762 2,426 11,106 28,592
Property, plant and equipment written-off 77 207 2,269 437 38
Intangible assets written-off 437 2,671 - 3 1,174
Fair value adjustments on investment properties - - - - -
Impairment of intangible assets - - - - -
Operating profit before working capital changes 4,647,097 5,852,593 6,531,430 6,675,548 6,340,656
Change in cash and short-term funds with original maturity of
(9,506,641) (34,181) (531,456) 3,036,714 (514,563)
more than three months
Change in deposits and placements with financial institutions
23,452,073 (15,691,548) 3,627,036 3,645,635 (1,551,211)
with original maturity of more than three months

Change in financial assets purchased under resale agreements (3,552,385) (7,533,752) 3,870,219 (5,420,390) 5,277,695
Change in financial investments portfolio (4,644,481) (974,502) (6,169,931) (18,554,411) (829,580)

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2020 2019 2018 2017 2016

MAYBANK CASH FLOW STATEMENT
RM '000 RM '000 RM '000 RM '000 RM '000
Change in loans, advances and financing (4,519,496) 1,685,927 58,826,760 (4,931,934) (5,766,300)
Change in other assets 544,562 400,626 (184,487) 459,457 3,567,824
Change in statutory deposits with central banks 2,453,866 940,628 2,705,139 (216,374) 325,053
Change in deposits from customers 5,796,663 (12,188,146) (74,354,300) 3,234,342 2,075,584
Change in investment accounts of customers - - - - -

Change in deposits and placements from financial institutions (16,634,420) (1,586,212) 15,295,613 7,788,424 (8,047,979)
Change in obligations on financial assets sold under
8,629,273 7,026,730 16,076,986 2,231,365 (1,540,624)
repurchase agreements
Change in financial liabilities at fair value through profit or
(22,772) (1,235,253) (247,182) 820,794 2,875,070
loss
Change in bills and acceptances payable (21,045) (133,305) (772,017) 384,205 (113,611)
Change in other liabilities (1,401,543) 457,196 (8,724,334) 4,528,798 (1,595,494)
Change in reinsurance/retakaful assets and other insurance
- - - - -
receivables
Change in insurance/takaful contract liabilities and other
- - - - -
insurance payables
Cash generated from/(used in) operating activities 5,220,751 (23,013,199) 15,949,476 3,682,173 502,520
Taxes and zakat paid (870,990) (1,210,565) (1,408,184) (954,525) (621,212)
Net cash generated from/(used in) operating activities 4,349,761 (24,223,764) 14,541,292 2,727,648 (118,692)

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of investment properties - - - - -
Purchase of property, plant and equipment (29,364) (90,389) (99,762) (96,026) (155,497)
Purchase of intangible assets (92,302) (66,366) (120,476) (142,519) (146,898)
Net effect arising from:
– repayment of capital of a subsidiary - - - 242,837 -
– liquidation/disposal of subsidiaries - - - 250 -
– transaction with non-controlling interests - - - - -
– change in structure of deemed controlled structured entities - 21,820 - - -
– liquidation of interest in associate - 6,899 - - -
– acquisition of an associate - - - - -
– capital repayment of a subsidiary 1,213,920 - - - -
– increase in shares in existing subsidiary - (193,863) - - -
Purchase of additional ordinary shares in existing subsidiaries (732,788) (194,070) (9,556,615) (156,420) (559,592)

Purchase of shares in deemed controlled structured entities (12,557) (62,010) (873) (480,341) -

Purchase of shares in associates from a subsidiary - - - (20,497) -

Proceeds from disposal of property, plant and equipment 18,058 5,922 62,729 85,377 17,526
Proceeds from disposal of a subsidiary 169,521 - - - -
Proceeds from disposal of deemed controlled structured
184,033 40,068 - - -
entities
Proceeds from disposal of deemed controlled entities - - 140,188 - -

Transfer of property, plant and equipment to a subsidiary 60,063 - -

Transfer of intangible assets to a subsidiary 249,803 - -

Dividends received from:
– financial investments portfolio 5,802 6,593 5,792 16,663 18,569
– associates 777 689 398 9,856 8,179
– subsidiaries 2,639,337 3,647,538 2,393,421 1,910,288 2,392,278
Purchase of property, plant and equipment from a subsidiary,
- - - - (175)
net
Net cash (used in)/generated from investing activities 3,364,437 3,122,831 (6,865,332) 1,369,468 1,574,390

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issuance of shares - 1,532,913 2,363,437 4,995,506 3,368,934
(Repayment)/drawdown of borrowings, net 742,415 9,377,344 (799,087) (76,897) 2,579,375
Issuance of subordinated obligations 3,000,000 3,700,000 - - 2,243,000
Issuance of capital securities - 2,800,000 - - -
Redemption of subordinated obligations (3,300,000) (3,700,000) (250,000) (3,240,000) -
Redemption of capital securities - (3,500,000) (2,744,404) - (5,850,743)
Repayment of lease liabilities (99,624) (100,948) - - -
Redemption of financial liabilities at fair value through profit
(715,368) (2,669,250) - - -
or loss
Issuance of financial liabilities at fair value through profit or
4,499,040 1,432,900 620,775 2,097,150 2,156,642
loss

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2020 2019 2018 2017 2016

MAYBANK CASH FLOW STATEMENT
RM '000 RM '000 RM '000 RM '000 RM '000
Recourse obligation on loans and financing sold to Cagamas,
(1,526,225) (21,047) 3,772 568,913 (199,758)
net
Dividends paid (4,384,131) (6,346,240) (6,234,092) (5,708,543) (4,926,889)
Dividends paid to non-controlling interests - - - - -
Net cash (used in)/generated from financing activities (1,783,893) 2,505,672 (7,039,600) (1,363,871) 2,786,081

Net (decrease)/increase in cash and cash equivalents 5,930,305 (18,595,261) 636,361 2,733,245 (1,330,383)
Cash and cash equivalents at 1 January 21,934,867 40,682,109 39,306,384 38,217,233 38,619,149
Effects of foreign exchange rate changes 37,379 (151,981) 717,484 (1,644,094) 928,467
Cash and cash equivalents at 31 December 27,902,551 21,934,867 40,660,229 39,306,384 38,217,233

Cash and cash equivalents comprise:

Cash and short-term funds 24,111,660 19,053,083 26,945,152 30,714,527 38,350,931
Deposits and placements with other financial institutions 15,274,310 28,310,635 23,410,133 21,382,493 19,339,287
39,385,970 47,363,718 50,355,285 52,097,020 57,690,218
Less:
Cash and short-term funds and deposits and placements with
financial institutions, with original maturity of more than three (11,483,419) (25,428,851) (9,695,056) (12,790,636) (19,472,985)
months

Cash and cash equivalents at 31 December 27,902,551 21,934,867 40,660,229 39,306,384 38,217,233

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STATEMENT OF PROFIT AND LOST FOR YEAR ENDED 31 DECEMBER

2020 2019 2018 2017 2016

2020 2019 2018 2017 2016 2015
RHB YEAR TO YEAR CHANGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE
RM '000 RM '000 RM '000 RM '000 RM '000 RM '000
CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%)

Interest income 6,930,514 -13.83% 8,042,465 1.10% 7,954,609 4.78% 7,592,080 -0.44% 7,625,537 -0.31% 7,649,604
Interest expense -3,143,823 -28.29% -4,384,157 4.05% -4,213,342 3.28% -4,079,559 -4.51% -4,272,147 -0.88% -4,310,068

Net interest income 3,786,691 3.51% 3,658,308 -2.22% 3,741,267 6.51% 3,512,521 4.75% 3,353,390 0.41% 3,339,536
Other operating income 1,750,090 52.13% 1,150,372 31.81% 872,745 -1.33% 884,471 -3.57% 917,224 -0.18% 918,900
Income from Islamic Banking business 1,614,464 45532.11% 3,538 536.33% 556 -9366.67% -6 0 - - -

Net income 5,382,282 11.85% 4,812,218 4.28% 4,614,568 5.01% 4,394,223 2.89% 4,270,614 0.29% 4,258,436
Other operating expenses -2,290,393 -2.85% -2,357,650 6.87% -2,206,020 6.42% -2,072,904 1.65% -2,039,165 -17.40% -2,468,761
Operating profit before allowances 3,091,889 25.96% 2,454,568 1.91% 2,408,548 3.76% 2,321,319 4.03% 2,231,449 24.68% 1,789,675
Allowance for credit losses on financial assets -806,291 206.19% -263,334 52.37% -172,831 -63.39% -472,076 -27.89% -654,693 172.03% -240,668

Profit before taxation and zakat 2,233,098 1.91% 2,191,234 -1.99% 2,235,717 20.90% 1,849,243 17.28% 1,576,756 1.16% 1,558,642
Taxation and zakat -433,493 -20.06% -542,240 -9.85% -601,474 45.05% -414,674 18.12% -351,073 -18.23% -429,362
Profit from continuing operations 1,799,605 9.13% 1,648,994 - - - - - - -
Net profit for the financial year 1,799,605 9.13% 1,648,994 0.90% 1,634,243 13.92% 1,434,569 17.04% 1,225,683 8.54% 1,129,280

STATEMENT OF FINANCIAL POSITION FOR YEAR ENDED 31 DECEMBER

2020 2019 2018 2017 2016
2020 2019 2018 2017 2016 2015
RHB YEAR TO YEAR CHANGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE
RM '000 RM '000 RM '000 RM '000 RM '000 RM '000
CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%)
ASSETS
Cash and short term funds 7,905,636 43.66% 5,502,893 -37.86% 8,855,326 16.29% 7,614,663 -38.74% 12,430,270 51.34% 8,213,683
Securities purchased under resale agreements - -100.00% 1,289,891 681.03% 165,153

Deposits and placements with banks and other financial institutions 18,288,761 34.68% 13,578,966 23.55% 10,990,797 -2.52% 11,275,105 16.95% 9,641,121 -1.44% 9,782,274

Financial assets at fair value through profit or loss (8FVTPL9) 2,285,301 -9.68% 2,530,288 33.75% 1,891,771 128.47% 828,006 -24.44% 1,095,862 80.71% 606,428

Financial investments available-for-sale (8AFS9) - - - - - - 21,427,655 8.81% 19,692,075 8.40% 18,166,278

Financial investments held-to-maturity (8HTM9) - - - - - - 14,496,205 -19.40% 17,986,112 -4.72% 18,876,308

Financial assets at fair value through other
35,869,640 5.70% 33,934,272 23.02% 27,584,376 - - - - - -
comprehensive income (8FVOCI9)
Financial investments at amortised cost 10,195,993 5.08% 9,702,802 -5.14% 10,228,651 - - - - - -
Loans, advances and financing 109,515,184 2.02% 107,345,665 -0.80% 108,216,146 -1.20% 109,530,317 -2.16% 111,953,651 -0.44% 112,447,582
Other assets 1,278,048 15.69% 1,104,726 19.84% 921,813 1.64% 906,895 -71.00% 3,127,293 40.69% 2,222,829
Derivative assets 1,790,567 98.16% 903,584 -21.26% 1,147,494 -37.46% 1,834,676 -55.21% 4,096,153 33.83% 3,060,699
Statutory deposits 228,107 -91.25% 2,608,316 -12.43% 2,978,677 17.36% 2,538,107 -10.29% 2,829,242 -23.94% 3,719,819
Tax recoverable 251,917 -41.87% 433,364 23.31% 351,451 496.98% 58,871 -67.42% 180,705 53.98% 117,357
Deferred tax assets - - - - 32,490 - - - 55,515 -10.66% 62,139
Investments in subsidiaries 4,901,397 -0.25% 4,913,885 0.05% 4,911,660 9.25% 4,495,837 -15.82% 5,340,659 178.32% 1,918,889
Right of use assets 76,166 -11.39% 85,960 - - - - - - - -
Property, plant and equipment 766,626 1.72% 753,638 0.01% 753,531 -0.38% 756,434 -0.06% 756,899 59.39% 474,881
Goodwill 1,714,913 3.84% 1,651,542 0.00% 1,651,542 0.00% 1,651,542 82.39% 905,519 0.00% 905,519
Intangible assets 565,485 3.11% 548,434 3.96% 527,562 26.91% 415,690 24.03% 335,153 28.35% 261,128
TOTAL ASSETS 195,633,741 5.41% 185,598,335 2.52% 181,043,287 1.81% 177,830,003 -7.24% 191,716,120 5.92% 181,000,966

LIABILITIES AND EQUITY

Deposits from customers 134,310,974 2.08% 131,571,124 3.48% 127,145,222 5.31% 120,732,215 -5.49% 127,749,052 1.70% 125,609,459
Deposits and placements of banks and other financial institutions 24,610,611 28.36% 19,173,832 9.40% 17,526,185 -22.23% 22,536,941 -0.66% 22,686,846 17.15% 19,365,704

Obligations on securities sold under repurchase agreements 4,740,494 25.66% 3,772,623 20.90% 3,120,449 96.50% 1,587,979 -41.55% 2,716,656 -42.63% 4,735,645
Bills and acceptances payable 174,838 -14.93% 205,528 -16.98% 247,552 -13.67% 286,751 0.15% 286,318 -40.60% 482,056
Clients9 and brokers9 balances
General insurance contract liabilities
Other liabilities 2,287,372 28.44% 1,780,860 -14.47% 2,082,123 32.32% 1,573,546 -9.33% 1,735,520 29.37% 1,341,504
Derivative liabilities 1,979,142 71.34% 1,155,074 3.11% 1,120,287 -55.44% 2,513,980 -31.53% 3,671,822 22.49% 2,997,719
Recourse obligation on loans sold to Cagamas Berhad (8Cagamas9) - - 1,265,757 -57.75% 2,995,877 73.21% 1,729,606 -36.85% 2,738,811 27.69% 2,144,896
Provision for taxation and zakat - - - - - - - - - - -
Deferred tax liabilities 152,111 11.26% 136,711 - - - 14,467 - - - -
Lease liabilities 77,356 -9.28% 85,267 - - - - - - - -
Borrowings 201,101 -76.06% 840,177 -14.43% 981,849 0.39% 978,068 39.99% 698,651 21.35% 575,718

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STATEMENT OF FINANCIAL POSITION FOR YEAR ENDED 31 DECEMBER

2020 2019 2018 2017 2016
2020 2019 2018 2017 2016 2015
RHB YEAR TO YEAR CHANGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE
RM '000 RM '000 RM '000 RM '000 RM '000 RM '000
CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%)
Senior debt securities 3,545,150 7.53% 3,296,763 -0.81% 3,323,664 2.19% 3,252,581 -29.18% 4,592,576 -5.19% 4,843,845
Hybrid Tier-1 Capital Securities - - - - 608,235 0.09% 607,678 0.09% 607,155 0.05% 606,870
Subordinated obligations 1,762,067 12.56% 1,565,396 -39.54% 2,589,066 0.02% 2,588,638 -55.80% 5,856,389 69.68% 3,451,380
TOTAL LIABILITIES 173,841,216 5.45% 164,849,112 1.92% 161,740,509 2.11% 158,402,450 -8.62% 173,339,796 4.32% 166,154,796

Share capital 6,994,103 0.00% 6,994,103 0.00% 6,994,103 0.00% 6,994,103 74.41% 4,010,045 15.88% 3,460,585
Reserves 14,798,422 7.58% 13,755,120 11.75% 12,308,675 -1.00% 12,433,450 -13.45% 14,366,279 26.18% 11,385,585
Non-controlling interests (8NCI9) - - - - - -
TOTAL EQUITY 21,792,525 5.03% 20,749,223 7.49% 19,302,778 -0.64% 19,427,553 5.72% 18,376,324 23.78% 14,846,170

TOTAL LIABILITIES AND EQUITY 195,633,741 5.37% 185,662,506 2.55% 181,043,287 1.81% 177,830,003 -7.24% 191,716,120 5.92% 181,000,966

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STATEMENT OF PROFIT AND LOST FOR YEAR ENDED 31 DECEMBER

2020 2019 2018 2017 2016

2020 2019 2018 2017 2016 2015
MAYBANK YEAR TO YEAR CHANGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE
RM '000 RM '000 RM '000 RM '000 RM '000 RM '000
CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%)
Operating Revenue 24361776 -9.53% 26928900 0.93% 26,680,896 7.41% 24,841,318 -6.58% 26,592,229 15.06% 23,111,636

Interest income 12,959,184 -19.62% 16,121,944 -7.70% 17,467,504 8.49% 16,099,945 6.79% 15,076,353 2.20% 14,751,535
Interest expense -5,308,438 -36.37% -8,342,819 -3.70% -8,663,559 18.57% -7,306,999 5.54% -6,923,742 7.79% -6,423,163

Net interest income 7,650,746 -1.65% 7,779,125 -11.64% 8,803,945 0.13% 8,792,946 7.85% 8,152,611 -2.11% 8,328,372

Dividends from subsidiaries and associates 2,640,114 -27.63% 3,648,227 52.40% 2,393,819 24.67% 1,920,144 -20.01% 2,400,457 56.48% 1,534,033
Other operating income 4,161,005 7.36% 3,875,737 -5.44% 4,098,618 11.34% 3,681,248 -9.36% 4,061,557 19.82% 3,389,635
Net operating income 14,451,865 -5.56% 15,303,089 0.04% 15,296,382 6.27% 14,394,338 -1.51% 14,614,625 10.28% 13,252,040
Overhead expenses -4,784,188 -4.71% -5020585 -13.52% -5,805,711 -1.28% -5880703 10.13% -5339639 -5.16% -5,629,901
Operating profit before impairment losses 9,667,677 -5.98% 10,282,504 8.34% 9,490,671 11.48% 8,513,635 -8.21% 9,274,986 21.68% 7,622,139
Allowances for impairment losses on loans, advances,
-2,558,275 36.42% -1875343 156.96% -729,811 -37.26% -1,163,238 -34.94% -1787868 164.20% -676,715
financing and other debts, net
(Allowances for)/writeback of impairment losses on
-149,466 -1345.86% 11997 -164.94% -18474 -933.29% 2,217 -101.59% -139851 -457.57% 39,111
financial investments, net
Allowances for impairment losses on other financial
-30,926 719.23% -3775 -162.50% 6,040 - - - - - -
assets, net

Profit before taxation and zakat 6,929,010 -17.66% 8,415,383 -3.81% 8,748,426 18.98% 7,352,614 0.07% 7,347,267 5.19% 6,984,535
Taxation and zakat -963,883 -15.16% -1,136,083 -21.14% -1,440,615 17.15% -1,229,739 33.00% -924,623 -19.62% -1,150,248
Net profit for the financial year 6,422,644 10.08% 5,834,287 -20.16% 7,307,811 19.35% 6,122,875 -4.67% 6,422,644 10.08% 5,834,287

STATEMENT OF FINANCIAL POSITION FOR YEAR ENDED 31 DECEMBER

2020 2019 2018 2017 2016
2020 2019 2018 2017 2016 2015
MAYBANK YEAR TO YEAR CHANGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE
RM '000 RM '000 RM '000 RM '000 RM '000 RM '000
CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%)
ASSETS
Cash and short term funds 24,106,030 26.60% 19,040,534 -29.34% 26,945,152 -12.27% 30,714,527 -19.91% 38,350,931 -7.09% 41,278,089
Deposits and placements with banks and other
15,268,348 -46.02% 28,287,338 20.83% 23,410,133 9.48% 21,382,493 10.57% 19,339,287 31.13% 14,748,271
financial institutions
Financial assets purchased under resale agreements 14,849,421 31.45% 11,297,036 200.19% 3,763,284 -50.70% 7,633,503 244.92% 2,213,113 -70.46% 7,490,808
Financial assets at fair value through profit or loss 18,189,480 40.86% 12,912,823 - 8,914,167 - - - 7,980,314 89.02% 4,221,895
Financial investments held-for-trading - - - - - - 7,896,677 - - - -
Financial investments at fair value through other
75,533,793 -6.52% 80,798,700 -9.81% 89,582,837 - - - - - -
comprehensive income
Financial investments available-for-sale - - - - - - 89,286,739 19.20% 74,904,201 -0.06% 74,950,070
Financial investments held-to-maturity - - - - - - 17,763,565 - 12,582,311 -12.19% 14,329,231
Financial investments at amortised cost 39,856,983 22.35% 32,574,918 42.52% 22,857,070 - - - - - -
Loans, advances and financing 229,924,462 1.47% 226,589,220 -1.64% 230,366,792 -20.84% 290997969 - 295,020,136 2.77% 287,056,974
Derivative assets 19,713,802 97.10% 10,002,003 47.11% 6,799,063 -0.96% 6,865,221 8,320,918 -0.16% 8,334,598
Other assets 4,116,602 -16.72% 4,943,190 -6.15% 5,267,285 9.70% 4,801,397 -14.31% 5,603,512 -33.08% 8,373,774
Statutory deposits 1,647,066 -59.84% 4,100,932 -18.66% 5,041,560 -34.92% 7,746,700 2.87% 7,530,325 -4.14% 7,855,379
Investments in subsidiaries 30,903,363 -2.08% 31,559,247 0.36% 31,446,456 42.57% 22,057,063 2.18% 21,586,547 2.66% 21,026,955
Interest in associates and joint ventures 440,730 0.00% 440,730 -6.63% 472,016 0.00% 472,016 4.54% 451,518 0.00% 451,518
Property, plant and equipment 941,767 -7.15% 1,014,286 -2.61% 1,041,432 -10.68% 1,165,908 -9.67% 1,290,761 -2.37% 1,322,097
Right-of-use assets 424,139 -3.22% 438,254 - - - - - - - -
Intangible assets 387,660 7.34% 361,135 0.07% 360,865 -36.47% 568,030 7.17% 530,049 4.04% 509,480
Deferred tax assets - - - - 345,186 9.58% 315,013 -12.18% 358,687 -18.81% 441,814
TOTAL ASSETS 476,303,646 2.57% 464,360,346 1.70% 456,613,298 -10.41% 509,666,821 2.74% 496,062,610 0.75% 492,390,953

LIABILITIES
Deposits from customers 250,025,335 2.99% 242,757,617 -4.86% 255,160,315 -22.43% 328,938,600 -2.16% 336,186,752 1.68% 330,626,519
Deposits and placements of banks and other financial
34,720,115 -32.39% 51,354,535 -3.00% 52,940,747 40.63% 37,645,134 26.09% 29,856,710 -21.23% 37,904,688
institutions
Obligations on securities sold under repurchase
36,922,305 30.50% 28,293,032 33.04% 21,266,302 309.81% 5,189,316 75.44% 2,957,951 -34.25% 4,498,574
agreements

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STATEMENT OF FINANCIAL POSITION FOR YEAR ENDED 31 DECEMBER

2020 2019 2018 2017 2016
2020 2019 2018 2017 2016 2015
MAYBANK YEAR TO YEAR CHANGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE
RM '000 RM '000 RM '000 RM '000 RM '000 RM '000
CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%) CHANGE (%)
Derivative liabilities 18,724,393 76.84% 10,588,278 42.33% 7,439,049 3.61% 7,179,998 -18.43% 8,802,221 14.37% 7,696,334
Financial liabilities at fair value through profit or loss 10,161,921 55.60% 6,530,753 -23.23% 8,507,004 55.15% 5,483,120 104.20% 2,685,139 - -
Bills and acceptances payable 458,617 -4.39% 479,662 -21.75% 612,967 -55.74% 1,384,983 38.39% 1,000,777 -10.19% 1,114,387
Other liabilities 7,810,067 -1.79% 7,952,408 8.33% 7,341,061 -56.59% 16,910,597 106.47% 8,190,241 -17.45% 9,921,177
Recourse obligation on loans sold to Cagamas Berhad
- - 1,526,225 -1.36% 1,547,272 0.24% 1,543,501 58.37% 974,588 -17.01% 1,174,345
(8Cagamas9)
Provision for taxation and zakat 66,120 - - - 79,815 -79.32% 385,876 714.53% 47,374 - -
Deferred tax liabilities 377,830 103.69% 185,495 - - - - - - - -
Borrowings 33,134,255 1.50% 32,645,025 - 23,441,160 -13.52% 27,106,442 -6.30% 28,927,427 16.30% 24,873,211
Subordinated obligations 8,808,639 -3.80% 9,156,816 -0.01% 9,157,310 -2.19% 9,362,526 -29.09% 13,202,872 -21.18% 16,750,738
Capital securities 2,827,793 0.02% 2,827,123 3,531,029 -43.81% 6,284,180 0.94% 6,225,926 0.21% 6,212,597
TOTAL LIABILITIES 404,037,390 2.47% 394,296,969 0.84% 391,024,031 -12.60% 447,414,273 1.90% 439,057,978 -0.39% 440,772,570

EQUITY
Share capital 48,280,355 0.00% 48,280,355 3.28% 46,747,442 5.64% 44,250,380 334.12% 10,193,200 4.42% 9,761,751
Share premium - - - - - - - - 28,878,703 11.50% 25,900,476
Shares held-in-trust - - - - - - -183,438 46.39% -125,309 4.65% -119,745
Reserves 7,176,806 9.40% 6,560,000 47.75% 4,440,063 -3.76% 4,613,371 -66.08% 13,601,206 6.07% 12,823,263
Retained profits 16,809,095 - 15,223,022 - 14,401,762 - 13,572,235 204.53% 4,456,832 37.02% 3,252,638
TOTAL EQUITY 72,266,256 3.14% 70,063,377 6.82% 65,589,267 5.36% 62,252,548 9.21% 57,004,632 10.43% 51,618,383

TOTAL LIABILITIES AND EQUITY 476,303,646 2.57% 464,360,346 1.70% 456,613,298 -10.41% 509,666,821 2.74% 496,062,610 0.75% 492,390,953

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FINANCIAL RATIO ANALYSIS INTERPRETATION

a) Liquidity RHB vs MAYBANK

RHB
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Current Ratio =
26,446,314 / 19,515,223 / 20,197,574 / 18,948,639 / 23,541,987 /
Current Asset / Current
163,836,917 154,723,107 148,039,408 145,143,886 153,438,872
Liability
0.16x 0.12x 0.13x 0.13x 0.15x

2020 2019 2018 2017 2016

RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Average Collection Period =
(1,750,090 / 360) (1,150,372 / 360) (872,745 / 360) / (884,471/ 360) / (917,224 / 360) /
(Sales / 360) /Avg Acc
/ 7,905,636 / 5,502,893 8,855,326 7,614,663 12,430,270
Receivable
79.69x 75.25x 35.48x 41.82x 26.56x

MAYBANK
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Current Ratio =
39,374,378 / 47,327,872 / 50,355,285 / 52,097,020 / 57,690,218 /
Current Asset / Current
332,288,293 329,415,599 338,487,335 378,641,153 372,687,329
Liability
0.12x 0.14x 0.15x 0.14x 0.15x
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Average Collection Period =
(24,106,030 / (19,040,534 / (26,945,152 / (30,714,527/ 360) (38,350,931 /
(Sales / 360) / Avg Acc
360) / 24,361,776 360) / 26,928,900 360) / 26,680,896 / 24,841,318 360) / 26,592,229
Receivable
0.0027x 0.0020x 0.0028x 0.0034x 0.0040x

The Current Ratio (CR) is used to measures a company’s ability to pay short-term obligation or those
due within one year. The current ratio is calculated simply by dividing current assets by current liabilities.
Based on the table shows, the current ratio for RHB & MAYBANK is less than 1, meaning that, it is not
a good performance from the year 2016 to year 2020. But for RHB, as show at table, on 2020 the ration
was increase better than ratio for MAYBANK. The different of ration between both bank is below than
0.5x.

Current Assets of the bank increased to RM26,446,314.00 in year 2020 from RM23,541,987.00 in year
2016. Meanwhile, the percentage of current liabilities with the bank increased in the year 2020 for RHB
meanwhile for MAYBANK is in year 2016.

Overall, it can be said that, in year 2017 to 2020 has a good performance for RHB meanwhile for MAYBANK,
there is some decrease number for year 2017 to 2020 . Meaning that, only RHB Bank is capable of paying its
short-term obligations. The higher the ratio is, the more capable they are of paying off debt.
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The Average Collection Period (ACP) ratio measures the average number of days clients take to pay
their bills, indicating the effectiveness of the business’s credit and collection policies. This ratio is most
important for Bank, it is because Bank generate much of their income through interest-generating loans
and rely heavily on receivables for their cash flows. The average collection period ratio is calculated by
dividing the average account receivables by total sales and divided the number of days in the time period.

Based on the table shows, the ACP for RHB in year 2017 to 2018 the times for average collection period
has been decreased from 41.28x to 35.48x, but in year 2019 to 2020, the ACP was extremely increase to
75.25x to 79.69x and it was considered as improvement . Besides that for MAYBANK, in year 2017
until 2019 the ACP was decrease but have a bit improvement at year 2020 which is ACP was 0.0027x.

Overall, it can be said that, in year 2019 to 2020 shows the good performance in term of collection period
for both bank. It is because we can say that the Bank has efficient and effective on collecting payments
from its customers to cover its expenditures because has lowest average collection period

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b) Capital structure and solvency RHB vs MAYBANK

RHB
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Debt Ratio = 201,101 / 840,177 / 981,849 / 978,068 / 698,651 /
Total Debt / Total Asset 195,633,741 185,598,335 181,043,287 177,830,003 191,716,120
0.10% 0.45% 0.54% 0.55% 0.36%

2020 2019 2018 2017 2016

RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Time Interest Earned = 2,233,098 / 2,191,234 / 2,235,717 / 1849243 / 1576756 / -
EBIT / Interest -3,143,823 -4,384,157 -4,213,342 -4,079,559 4,272,147
-0.71x -0.50x -0.53x -0.45x -0.37x

MAYBANK
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Debt Ratio = 33,134,255 / 32,645,025 / 23,441,160 / 27,106,442 / 28,927,427 /
Total Debt / Total Asset 476,303,646 464,360,346 456,613,298 509,666,821 496,062,610
6.96% 7.03% 5.13% 5.32% 5.83%

2020 2019 2018 2017 2016

RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Time Interest Earned = 6,929,010 / - 8,415,383 / - 8,748,426 / - 7,352,614 / - 7,347,267 / -
EBIT / Interest 5,308,438 8,342,819 8,663,559 7,306,999 6,923,742
-1.31x -1.01x -1.01x -1.01x -1.06x

The Debt Ratio (DR) is a financial ratio that measures the extent of a company’s leverage. The debt ratio
is calculated by dividing the total debt by the total assets, expressed as percentage.

Based on the table above shows, the Debt Ratio for RHB has been decreased in year 2016 to 0.36% from
0.10% in year 2020. Meanwhile in year 2017 and 2018 the percentage only different 0.01% by 0.55% on
2017 to 0.54% on 2018%. It can be indicated that the debt ratio for Bank is considered lower risk it is
because the debt ratio is less than 100%. For MAYBANK, debt ration quite higher than RHB but still
under control. The higher debt ratio is on 2019 to 7.03 % but decrease on 2020 which is 6.96%.

Overall, it can be said that, in year 2020 shows the good performance in term of financial risk of a company
for both bank. It is because have the lowest ratio percentage among the other years. In year 2020, RHB
have the highest percentage in total assets compared to other years which is 195,633,741 while
MAYBANK have the highest total assets on year 2017 which is 509,666,821.

The Time Interest Earned (TIE) ratio is a measure of a company’s ability to meet its debt obligations
based on its current income. The formula for a company’s TIE number is earnings before interest and
taxes (EBIT) divided by the total interest payable on bonds and other debt.

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Based on the table above shows, the Time Interest Earned (TIE) for RHB has been increased in year 2016
to -0.37x from 0.71x in year 2020. For MAYBANK, the Time Interest Earned (TIE) was increase also in
year 2016 to -1.06x from -1.31x in year 2020. Even though the figure is increased, but for measured the
company either has a good performance or not, the time earned interest ratio must greater than 2.5x. If the
company have a times interest earned ratio is less than 2.5x are indicate credit risk.

Overall, it can be said that, in these 5 years shows the risky performance in term of credit risk. It is because
have the lowest ratio, meaning that the times earned interest is less than 2.5x. From this situation, it can
be shows that the Bank has more interest expenses than earnings before interest and taxes (EBIT) for these
5 years.

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c) Assets utilization and efficiency

RHB
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Cash Turn-over = 1,750,090 / 1,150,372 / 872,745 / 884,471 / 917,224 /
Sales / Cash & Equivalent 7,905,636 5,502,893 8,855,326 7,614,663 12,430,270
0.22x 0.21x 0.10x 0.12x 0.07x

2020 2019 2018 2017 2016

RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Fixed Asset Turn-over = 1,750,090 / 1,150,372 / 872,745 / 884,471 / 917,224 /
Sales / Avg Fixed Asset 3,123,190 3,039,574 2,932,635 2,823,666 1,997,571
0.56x 0.38x 0.30x 0.31x 0.46x

MAYBANK
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Cash Turn-over = 24,361,776 / 26,928,900 / 26,68,896 / 24,841,318 / 26,592,229 /
Sales / Cash & Equivalent 24,106,030 19,040,534 26,945,152 30,714,527 38,350,931
1.01x 1.41x 0.99x 0.81x 0.69x
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
Fixed Asset Turn-over = 24361776 / 26928900 / 26680896 / 24841318 / 26592229 /
Sales / Avg Fixed Asset 1753566 1813675 1747483 2048951 2179497
13.89x 14.85x 15.27x 12.12x 12.20x

The cash turnover ratio (CTO) is used to determine the efficiency of the company in using and spent
their cash during the reporting period to generate revenues. The formula to calculate this ratio is sales
divided with average cash and equivalents.

Based on the table above, the CTO ratio for RHB & MAYBANK showing the positive trends throughout
the year from 2016 to year 2020 because it was increase. The ratio increased in year 2017 compared to
year 2016. Operating revenue for MAYBANK was decrease to RM 24,841,318 in 2017 from RM
26,592,229.00 in year 2016 by 15.06%, followed by 7.41% in 2018, 0.93% in 2019 and more decreased
by -9.53% in year 2020.

In summary, both bank CTO ratio is considered as good especially in year 2020 for RHB and 2019 for
MAYBANK as the ratio is the highest which is 0.22x & 1.41x compared to other years. The increasing in
the 2020 for RHB and 2019 for MAYBANK percentage showing that the bank taking the shortest time to
refresh their cash position using their operating revenue. The efficiency of the CTO ratio also can be
proved that certain years for example in year 2020, the total assets is increase compared to year 2019 and
the operating revenue is decreasing as the expenses is increasing.

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The Fixed Assets Turnover (FATO) is used to determine the efficiency of the company to generate sales
from the fixed assets that the company hold. The formula to calculate the FATO ratio is sales divided with
average fixed assets.

Based on the table above, the FATO for RHB shows that the ratio decrease in year 2017 to 0.31x from
0.46x in year 2016. Slightly dropped in year 2018 to 0.30x. Meanwhile for MAYBANK, the ratio decrease
also in year 2017 to 12.12x from 12.20x in year 2016. Slightly increase in year 2018 to 15.27x. Based on
the financial statement of both bank, the performances in year 2016 less efficient compared to year 2017.

In summary, RHB and MAYBANK FATO ratio consider as good especially in year 2020 and 2018
showing that the bank efficiently manages their fixed asset to generate revenue as both operating revenue
and fixed assets increased. For other years such as in year 2016, 2017 and 2019 the bank performance in
managing their FATO less efficient as they are selling their fixed assets to generate sales.

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d) Profitability RHB vs MAYBANK

RHB
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
ROA = 1,799,605 / 1,648,994 / 1,634,243 / 1,434,569 / 1,225,683 /
EAT / Avg Total Asset 195,633,741 185,598,335 181,043,287 177,830,003 191,716,120
0.92% 0.89% 0.90% 0.81% 0.64%

2020 2019 2018 2017 2016

RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
ROE =
1,799,605 / 1,648,994 / 1,634,243 / 1,434,569 / 1,225,683 /
EAT / Avg Shareholder
6,994,103 6,994,103 6,994,103 6,994,103 4,010,045
Earning
25.73% 23.58% 23.37% 20.51% 30.57%

MAYBANK
2020 2019 2018 2017 2016
RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
ROA = 6,422,644 / 5,834,287 / 7,307,811 / 6,122,875 / 6,422,644 /
EAT / Avg Total Asset 476,303,646 464,360,346 456,613,298 509,666,821 496,062,610
1.35% 1.26% 1.60% 1.20% 1.29%

2020 2019 2018 2017 2016

RATIO
RM ('000) RM ('000) RM ('000) RM ('000) RM ('000)
ROE =
6,422,644 / 5,834,287 / 7,307,811 / 6,122,875 / 6,422,644 /
EAT / Avg Shareholder
48,280,355 48,280,355 46,747,442 44,250,380 10,193,200
Earning
13.30% 12.08% 15.63% 13.84% 63.01%

The Return on Assets (ROA) is used to determine how well the company operates to generate the profits
from their investments in assets. The formula to calculate this ratio is earning after tax divided with
average total assets.

Based on the table above, the ratio for RHB and MAYBANK in year 2016 is 0.64% for RHB and for
MAYBANK is 1.29%. However, the ROA dropped to 0.89% in year 2019 for RHB also dropped in year
2019 for MAYBANK which is 1.26%. However, in year 2020 the ratio increased for both bank The
performance of RHB and MAYBANK for ROA is at the same level as the changes not showing huge
differences throughout these 5 years performance and it still consider as good depends on the company,
the industry and the economic environment. Based on the table, 2020 showing the best performance as
the ratio percentage is the highest among the other years for RHB and for MAYBANK is for year 2018.
It shows that in 2020 & 2018, both bank more efficient and doing well in utilizing their resources to
generate profit.

In summary, the RHB and MAYBANK ROA is good throughout the 5 years from 2016 to year 2020 and
2020 and 2018 for RHB and MAYBANK being the best year for the bank.

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The Return on Equity (ROE) is used to determine how well the company manage their capital that the
shareholders have invested. The formula to calculate this ratio is earning after tax divided with average
shareholder equity.

Based on the table above, the ratio for RHB increase in year 2020 is 25.73%, meanwhile for MAYBANK
it was decrease in year 2020 which is 13.30%.The best performance of RHB and MAYBANK on ROE is
in year 2016 as the ratio percentage is the highest compared to other years. However, it is does not mean
that the bank financial performance is bad even the ROE ratio is lower than year 2016 as the ratio is
affected by many factors such as economic environment and the industry.

In summary, the both bank ROE is good throughout the 5 years from 2016 to year 2020 and 2016 being
the best year for the bank.

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CONCLUSION

Financial statement analysis is the process of reviewing and analyzing a company’s profile
financial statements to make better economics decisions to earn income in future. From the
analysis of financial statements, we ascertain its financial conditions and how its operated
during the periods for which analysis is conducted and what are the future trends in that
financial institute. These reports are used to give information to shareholders and used by
potential investors who want to know how the company is performing and decide whether to
invest or not. These statements include the income statement, balance sheet, statement of
cashflows, notes to accounts and a statement of changes in equity.

After calculating, analyzing, and interpreting the five (5) years financial reports of Maybank
Berhad and RHB Berhad, we have come to conclusion that in terms of liquidity it can be said
that in year 2017 to 2020 has a good performance for RHB Berhad meanwhile for Maybank
Berhad there is some decreased number for the year 2017 to the year 2020. Meaning that, RHB
Bank is capable of paying its short-term obligations.

Current assets of the RHB bank increased from RM 23,541,987.00 in year 2016 to RM
26,446,314.00 in year 2020. The percentage of current liability with the bank increased in the
year 2020 for RHB Berhad and year 2016 for Maybank Berhad. The higher the ratio is, the
more capable they are paying off debts.

In 2019 and 2020, The Average Collection Reload (ACP) shows the good performance in term
of collection period for both banks. It was because the bank has efficient and effective on
collecting payments from its customers to cover its expenditures because has lowest Average
Collection Period (ACP).

For Capital Structure and Solvency, it can be said that in year 2020 shows the good
performance in term of financing risk of a company for both banks. It was because both banks
have the lowest ratio percentage among the years. RHB Bank have the highest percentage in
total assets for the year 2020 compared to other years which is RM 195,633,741.00 while,
Maybank Berhad have the highest total assets on year 2017 which is RM 509,666,821.00.

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The Time Interest Rate Earned (TIE), RHB Bank has been increased in year 2016 compared to
year 2020 and it is also same goes to Maybank Berhad, the Time Interest Rate Earned (TIE)
was increased too. It can be said that in these five (5) years shows the risky performance in
term of credit risk because the lowest ratio, Time Interest Rate Earned (TIE) is less than 2.5
times.

For assets utilization and efficiency, the Cash Turnover Ratio has considered as good,
especially in year 2020 for RHB Bank and 2019 for Maybank Berhad as the ratio was the
highest which is 0.22 times and 1.41 times compared to other years. The increasing in year
2020 for RHB and 2019 for Maybank Berhad percentage shows that the bank taking the
shortest time to refresh their cash position using their operating revenue.

For profitability ratios, Return of Asset was good throughout the years of 2016 to year 2020
for Maybank Berhad and RHB Berhad and 2020 for Maybank Berhad and RHB Berhad being
the best year for bank.

As conclusion, the banks strength it has high liquidity that it can easily converted an asset or
security into ready cash without affecting its market price. Lastly, it has strong ability to
generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders
equity over time. the weakness is the banks has more interest expenses than earnings before
interest and taxes (EBIT) from these five (5) years.

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RECOMMENDATION

As well all know, the world experienced the COVID-19 pandemic, most businesses were
forced to closed and many were laid off. Banks are no exception and experienced a decline in
revenue, collection form loans as well as investments. However, banks must continue to
operate efficiently by maintain prudence in management of credit risk and asset quality while
preserving strong corporate governance and sound risk management practices. During
pandemic, it enhanced its information and communication technology infrastructure to
improve efficiency, resilience and provide better customer experience through digital banking
solutions under the new normal business environment. It must continue to explore ways to
further enhance its operational efficiency and overall productivity to maintain cost efficiency
while accelerating its digitalization efforts to cater to the needs of customers.

During Covid-19 pandemic, Maybank Berhad and RHB Berhad will need to continue to ensure
that the bank remains well-capitalized and well-funded to support its business and safeguard
the interest of stakeholders and they need to proactively manage any potential stress in asset
quality.

Maybank Berhad and RHB Berhad need to capitalize on its efficient customer service delivery
and extensive network of physical and digital channels, while sustaining its position as a one
of the market leaders in both domestic retail and consumer segments and continue to expand
its corporate lending business by leveraging on its strong franchise and relationship with
customers.

Maybank Berhad and RHB Berhad must committed to strengthen its regional presence, while
leveraging on its strong branding and prudent management practices, or long-term
sustainability, the banks will continue to enhance its service delivery standards and
infrastructure leveraging on the advancement of technology, to provide seamless delivery of
banking services across its multi-delivery channels.

Businesses in Malaysia are expected to operate more efficiently by stepping up efforts on cost
controls and balance sheet management. Similarly, banks in Malaysia especially Maybank
Berhad and RHB Berhad are likely to continue to enhance its operational efficiency, especially
during bouts of economic uncertainties.

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