LKF Partners

MALAYAN BANKING BERHAD (MAYBANK 1155)

SNAPSHOT

Founded by Singaporean business tycoon Tan Sri Khoo Teck Puat in 1960, Malayan Banking Berhad (fondly known as Maybank) is currently Malaysia’s largest bank with a strong regional presence in Malaysia, Singapore and Indonesia. It is the most profitable bank in Malaysia with the largest customer deposit base and loan book. Maybank’s tagline “Humanising Financial Services” reflects the bank’s focus on putting people at the heart of its operations, making banking simple, accessible, and meaningful to communities. Among all the banks in Malaysia, Maybank has the highest dividend payout ratio currently, although this benefit had been somewhat offset by the share capital increase and earnings dilution due to the company’s Employee Share Grant Plan and previously its Dividend Reinvestment Plan.

YE 31-Dec 2020 2021 2022 2023 2024
Profit Before Tax (RM mil) 8,657 10,886 12,153 12,532 13,702
Net Profit After Tax (RM mil) 6,481 8,096 8,235 9,350 10,089
EPS (RM) 0.577 0.697 0.688 0.7755 0.836
DPS (RM) 0.52 0.58 0.58 0.60 0.61
Net Loans (RM mil) 511,310 540,839 574,026 628,923 662,741
Customer Deposits (RM mil) 556,349 588,968 614,895 670,359 712,915
Shareholders Funds (RM mil) 84,436 85,811 85,957 94,642 93,971
Net Assets / Total Assets (%) 10.2% 10.0% 9.4% 9.5% 9.0%
NTA per share (RM) 6.92 6.66 6.57 7.23 7.21
No of Shares (millions) 11,241 11,879 12,054 12,066 12,067
Share Price – Close (RM) 8.46 8.30 8.70 8.89 10.24
Financial Ratios (%)
Return on Av Equity 7.8% 9.5% 9.6% 10.4% 10.7%
Cost to Income Ratio 45.9% 47.8% 49.5% 47.2% 47.9%
Loan to Deposit Ratio 94.0% 93.8% 95.3% 95.4% 94.4%
Impaired Loans 2.2% 2.2% 2.0% 1.6% 1.5%
Net Interest / Total Interest Income 57.3% 69.9% 64.0% 42.3% 39.1%
Interest Income / Av Net Loans 3.78% 3.27% 3.88% 5.03% 5.07%

SHARE TRADING SUMMARY CY2025

Share Price - High RM10.76
Share Price - Low RM9.32
Share Price - Close @ 31/12/25 RM10.48
Average Daily Volume 11,287,635 shares
Volume - High 81,816,703 shares
Volume - Low 2,682,500 shares
Total Annual Volume 2,754,183,009 shares
Annual Turnover
(% of Share Capital)
22.8%

TOP SHAREHOLDERS

As at 28 February 2025 Direct Deemed
Amanah Saham Bumiputra 30.89% -
Employees Provident Fund Board 12.88% -
Permodalan Nasional Berhad 6.53% -
Yayasan Pelaburan Bumiputra - 6.53%
Kumpulan Wang Persaraan (Diperbadankan) 4.75% -
Total 55.05%

KEY STRENGTHS

Maybank is a market leader in consumer banking and a strong player in Islamic banking, corporate banking  and insurance services. It is considered a government-linked company (GLC) because several Malaysian government-linked investment arms are its primary shareholders, implying a degree of government influence and potential indirect favor. Unlike Petronas, it is not wholly owned by the government, but the significant stake held by government entities means the government has a notable influence on management and governance decisions, impacting the bank’s strategic direction alongside other government-linked agencies.

Its strategic position as the “anchor bank” places it as an important pillar for the Malaysian economy and helps address potential market failures and allows the government to steer the financial sector in certain strategic directions. 

The largest shareholders of Maybank include the Employees Provident Fund (EPF or KWSP), Permodalan Nasional Berhad (PNB),  Amanahraya Trustees Berhad (a government-owned trustee company that administers Amanah Saham funds) and Kumpulan Wang Persaraan (KWAP) who collectively control well over 50% of the bank’s share capital.

As a GLC, Maybank’s operations are often aligned with national economic goals and government initiatives with potential for favourable treatment as compared to other non-GLC banks. While direct, explicit “favors” in the form of unfair advantages are not openly documented, the nature of being a majority state-owned enterprise inherently positions Maybank to work closely with the government and participate in state-driven economic initiatives. Notwithstanding this, Maybank has actively collaborated with government bodies and regulators to drive investments in specific economic zones and support the local SME ecosystem, demonstrating a close working relationship with the public sector. 

FY2024 SEGMENT EARNINGS (RM mil)

Consumer Banking 2,824,745
Commercial Banking 2,065,431
Wholesale Banking 3,848,317
Digital / Group Funding 1,657,435
Profit Before Tax (FY2024) 10,395,928

LOAN SEGMENTATION

FINANCIALS

(RM '000)
Year Ending
2023
31-Dec
2024
31-Dec
Revenue 64,466,824 68,942,785
Interest Income 30,230,550 32,769,873
Interest Expense (17,439,028) (19,962,450)
Net Interest 12,791,522 12,807,423
Islamic Banking Income 7,577,195 8,346,399
Insurance Service Result 550,098 1,284,513
Net Finance Expense from Insurance Contracts (1,545,851) (1,931,829)
Other Operating Income 6,547,785 7,713,960
Other Operating Expenses (11,948,408) (13,108,195)
Impairment on Loans, Advances and Financing (1,826,212) (1,670,545)
Impairment on Other Assets 145,147 23,537
Share of Results of Associates & JV 240,325 236,302
Profit Before Tax from Continuing Operations 12,531,601 13,701,565
Tax Expense (2,916,739) (3,195,179)
Profit After Tax from Continuing Operations 9,614,862 10,506,386
Profit After Tax 9,614,862 10,506,386
Non-Controlling Interests (265,082) (417,713)
Net Profit After Tax 9,349,780 10,088,673
EPS Basic / Diluted (RM) 77.6 83.6

(RM '000)
Year Ending
2023
31-Dec
2024
31-Dec
Net Loans 628,922,780 662,740,860
Cash 28,904,035 40,522,520
Deposits with FI 13,471,607 22,275,032
Fin Assets (FVPL) 35,970,200 33,274,540
Fin Assets (FVCI) 132,182,135 128,177,404
Fin Investments (Amortized) 84,384,398 79,377,492
Derivative Financial Instruments 21,647,554 23,417,580
Statutory Deposits 15,739,735 17,166,509
Intangible Assets 7,361,911 6,993,290
Right-Of-Use Assets 1,636,137 1,456,464
Associates & JV 2,105,534 1,857,728
Other Assets 55,348,593 58,062,537
Total Assets 1,027,674,619 1,075,321,956
Deposits from Customers 670,359,336 712,915,459
Deposits from Financial Institutions 44,676,892 47,051,220
Investment accounts of customers 26,475,396 28,981,847
Obligations on Securities Sold under Repurchase Agmts 38,072,708 32,831,691
Bills and Acceptances Payable 1,133,170 1,214,634
Recourse Obligations on Loans Sold to Cagamas 10,145,549 11,157,808
Derivative Financial Liabilities 25,082,955 27,494,477
Insurance Contract Liabilities 44,580,552 46,129,398
Debt Securities & Borrowings 39,804,133 40,203,555
Subordinated Obligations 10,145,549 11,157,808
Capital Securities 2,829,802 1,576,770
Other Liabilities 16,720,414 17,400,152
Total Liabilities 930,026,456 978,114,819
NET ASSETS 97,648,163 97,207,137
Share Capital 54,673,596 54,736,195
Retained Profits 31,672,801 34,028,358
Regulatory Reserves 2,473,192 2,846,576
Other Reserves 5,822,028 2,359,499
Shareholder Funds 94,641,617 93,970,628
Non-Controlling Interests 3,006,546 3,236,509
TOTAL EQUITY 97,648,163 97,207,137
No of Shares (Thousands) 12,060,237 12,066,952
Weighted Av Shares (Thousands) 12,056,164 12,066,393
Share Price (RM) 8.89 10.24

(RM '000)
Year Ending
2023
31-Dec
2024
31-Dec
Profit Before Tax 12,531,601 13,701,565
Non-Cash Items (Depreciation, Share of Associates, Loan Impairments & Other Items) (240,325) (236,302)
Operating Profit Before Working Capital Changes 13,635,171 13,608,691
Loans, Advances and Financing (43,044,117) (52,860,582)
Movement in Other Operating Assets (2,737,944) (4,514,831)
Deposits from Customers 45,170,303 54,096,370
Movement in Other Operating Liabilities 1,099,051 8,563,853
Income Tax Expense and Zakat Paid (3,368,687) (3,264,012)
Other Operating Items 225,964 (283,446)
Cash Flow from Operating Activities 1,794,949 28,783,976
Net Purchase of Property Plant & Equipment (435,688) (391,753)
Net Sale/(Purchase) of Fin Investments (856) 0
Other Investing Items (16,423) (65,313)
Cash Flow from Investing Activities (691,852) (291,895)
Dividends Paid to Shareholders (7,111,935) (7,240,171)
Dividends Paid to Non-Controlling Interests (138,441) (180,680)
Repayment of Lease Liabilities (657,114) (589,373)
Net Issuance/(Redemption) of Debt Securities (93,390) (240,000)
Cash Flow from Financing Activities (11,539,554) (8,007,366)
Net Cash Flow (10,436,457) 20,484,715
Effects of Exchange Rate Changes 707,429 (773,804)

Income & Cost Metrics

Year Ending 2023
31-Dec
2024
31-Dec
(RM'000)
Interest Income 30,230,550 32,769,873
Interest Expense (17,439,028) (19,962,450)
Net Interest 12,791,522 12,807,423
Islamic Banking Income 7,577,195 8,346,399
Insurance Service Result 550,098 1,284,513
Net Finance Expense from Insurance Contracts (1,545,851) (1,931,829)
Other Operating Income* 6,547,785 7,713,960
Total Operating Income 25,920,749 28,220,466
Operating Cost** (11,948,408) (13,108,195)
Cost-to-Income Ratio (%) 46.1% 46.4%

Year Ending 2023
31-Dec
2024
31-Dec
*Other Operating Income (RM'000)
Fee & Commission Income (Net) 2,073,338 2,478,176
Realised Gain/(Loss) on Fin Instruments 319,914 2,069,357
Unrealised Gain/(Loss) on Fin Instruments 1,684,708 1,016,116
Dividend Income 210,095 294,512
Foreign Exchange Gain/(Loss) 1,996,239 1,355,807
Other Income 263,491 499,992
Total 6,547,785 7,713,960
Annual Report Ref (PDF Page) Note 40
(p150-p151)
Note 40
(p145-p146)

Year Ending 2023
31-Dec
2024
31-Dec
**Operating Cost (RM'000)
Personnel Costs (7,779,014) (8,569,296)
Establishment Costs (2,172,396) (2,379,549)
Marketing Expenses (564,964) (633,354)
Administration and General Expenses (1,432,034) (1,498,996)
Total Operating Cost (11,948,408) (13,108,195)
Annual Report Ref (PDF Page) Note 42 (p152) Note 42 (p147)
Profit Before Tax (RM'000) 12,531,601 13,701,565
Personnel Costs / Profit Before Tax (%) 62.1% 62.7%
Personnel Costs / Operating Cost (%) 65.1% 65.6%

STAKEHOLDERS

Directors & CEO Remuneration

maybank-2024-150
2024
Group Total: RM28.5 million
Executive & CEO: RM13.4 million
Non-Executive: RM15.1 million

CEO: RM13.4 million - View
maybank-2023-155
2023
Group Total: RM26.5 million
Executive & CEO: RM12.4 million
Non-Executive: RM14.1 million

CEO: RM12.4 million - View
maybank-2022-138
2022
Group Total: RM31.2 million
Executive & CEO: RM16.7 million
Non-Executive: RM14.5 million

CEO: RM16.7 million - View
maybank-2021-137
2021
Group Total: RM23.3 million
Executive & CEO: RM10.3 million
Non-Executive: RM13 million

CEO: RM10.3 million - View

Directors & CEO Interests

Senior Management Shareholders

2024 | 2023 | 2022

CORPORATE DEVELOPMENTS

Selldown of 50 million shares by Consolidated Teh

Selldown of 50 million shares by Consolidated Teh

Further to their announcement on 10/10/24, the Estate of the late Tan Sri Teh Hong Piow (via Consolidated Teh Holdings Sdn Bhd) has announced the disposal of 50 million shares (0.26%) in Public Bank Bhd. The date of change was shown as 8/10/25. The Teh family still holds over 22% of the banking group after the sell down. The family is required to gradually reduce its stake to 10% within five years through a restricted offer for sale (ROFS) to comply with the Financial Services Act. Which means it still needs to sell down well over 2 billion shares over the next 4 years or over 500 million shares each year on average.

Public Bank shares closed at RM4.34 on 8/10/25 with 4.9 million shares traded at a range of RM4.31 to 4.34. For the preceding

Goodwill Impairment for Public Bank

Goodwill Impairment for Public Bank

Public Bank Bhd’s upcoming Q4 results, scheduled for release on 26/2/25, are expected to reflect the financial impact of the goodwill impairment at its 73.2%-owned subsidiary, Public Financial Holdings (PFH), which had recorded a goodwill impairment on its wholly owned subsidiaries, Public Bank (HK) Ltd, Public Finance Ltd, and Winton (BVI) Ltd. The impairment was approximately HK$810 million or RM463 million.

(Source: TheEdge)

Public Bank Completion of LPI Acquisition

Public Bank Completion of LPI Acquisition

Public Bank (PBB) completed its acquisition of a 44.15% stake in LPI Capital (LPI) in December 2024, acquiring it from the estate of Tan Sri Teh Hong Piow and his private vehicle, Consolidated Teh Holdings Sdn Bhd. This acquisition was for a total of RM1.72 billion in cash, or RM9.80 per share. As a result, PBB now holds a controlling stake* in LPI.

Key Details:
Acquisition: PBB acquired a 44.15% stake in LPI Capital.
Value: The acquisition was valued at RM1.72 billion in cash, or RM9.80 per share which is 1.71x LPI’s book value and 12.4x 2023 earnings.
The stake was acquired from the Estate of Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd.
LPI share price closed at RM13.14, while PBB at RM4.53 at completion of the acquisition on 4/12/25.

Consequences of the Acquisition:

  • Public Bank now holds a controlling stake in LPI, giving it greater influence over its operations.
  • As a subsidiary of Public Bank, LPI is required to dispose of its 1.1% stake in PBB within 12 months due to the acquisition. 
  • The sale of Public Bank shares by LPI could potentially lead to special dividends for LPI shareholders, some estimates suggest RM1.89 per share.
  • The acquisition aligns with PBB’s strategy to enhance its presence in the insurance sector through LPI, a leading general insurer in Malaysia.
  • Some analysts expect the acquisition to be earnings accretive for Public Bank, potentially boosting group earnings by around 2%

 

*PBB considers that it controls LPI Capital Bhd (“LPI”) even though it owns less than 50% of the voting rights. This is because the Group is the single largest shareholder of LPI with a 44.15% equity interest. The remaining 55.85% of the equity shares in LPI are widely held by many other shareholders, none of which individually hold more than 10% of the equity shares (as recorded in the company’s shareholders’ register on 4 December 2024. Since the date of acquisition of LPI on 4 December 2024, there has been no history of the other shareholders collaborating to exercise their votes collectively or to outvote the Group.

Source: Public Bank Berhad 2024 Integrated Annual Report Financial Statements P39.

Public Bank Acquisition of Lonpac and Teh Family Divestment

Public Bank Acquisition of Lonpac and Teh Family Divestment

On 10/10/24 it was reported that Public Bank Bhd would acquire 44.15% stake in LPI Capital for RM1.72bil by launching a Mandatory General Offer for LPI at RM9.80/share. Teh Li Shian Diona, daughter of the late Tan Sri Dr Teh Hong Piow also announced that the Estate and Consolidated Teh Holdings Sdn Bhd intended to undertake a restricted offer for sale of a portion of their Public Bank shares over a 5-year period, in compliance with the Financial Services Act. The acquisition of 44.15% in LPI Capital (175.9 million shares) was completed on 4/12/24.
 (Source: TheStar, TheEdge)

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