Malaysia Banking Industry Report

 Published On: Mar, 2014 |    No of Pages: 35 |  Published By: Emerging Markets Direct | Format: PDF
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This report profiles Malaysia’s banking industry, analyzing sector size and performance as well as market trends through 2013. The report also highlights the leading players in the industry including Maybank, CIMB Bank, Public Bank and RHB Bank.

Malaysia’s GDP grew by x.x% in the fourth quarter of 2013, backed by private sector demand and improvement in exports. The banking industry in Malaysia remained resilient in 2013. Total loans surged xx% y/y to reach MYR x.xx trillion in 2013. On the other hand, total deposits grew x% y/y. The overnight policy rate has been maintained at x% on the back of challenging environment. The pre-tax profit of Malaysian commercial banks increased at a CAGR of xx% for the last xx years. Both RWCR and core capital ratio of Malaysian banks remained strong as of December 2012. Malaysian banks are striving to achieve the capital requirements prescribed in the Basel III requirements.

Loans for purchase of residential property dominated the portfolios of most banks followed by transport vehicle loans. Rising per capita income and growing urbanization in the country are driving loan growth in these two segments. Fixed deposits and investment deposits continued to dominate total deposits in banks. Net non-performing loan ratio has also shown a successive quarterly decline, thereby showing the strength of the banking system. The banking system in Malaysia has perhaps again entered a period of stability following crises requiring minimal intervention by the central bank.

The outlook for Malaysian banking is positive owing to the stable economic growth and rising per capita income of the country. The emergence of Malaysia as an Islamic banking hub will further elevate the growth of this sector.

Key Points:

• As of December 2013, total assets held by banking institutions in Malaysia amounted to MYR x.xx trillion. The total assets of banking system increased by x.x% compared to December 2012.

• Total loans of the banking system grew by xx.x% y/y to reach MYR x.xxtr in 2013.

• Purchase of residential property accounted for xx.x% of the total loans approved by the banking system in 2013.

• The overnight policy rate was raised by Bank Negara Malaysia (BNM) in May 2011 by xx basis points. Since then it has remained stable at x%.

Table of Contents

Industry Profile
Sector overview
Sector size
Total assets
Total loans and deposits
Interest rates
Sector performance
Banking institutions financial performance
Capital adequacy ratio
Non performing loans

Market Trends and Outlook
Key economic indicators-Malaysia
Islamic banking
The financial sector master plan (2011-xx)

Leading Players and Comparative Matrix
Leading players
Malayan Banking Berhad
Public Bank Berhad (Public Bank)
CIMB Group Holdings Berhad
RHB Capital Berhad
Comparative matrix
SWOT analysis

Tables and Charts

Table: List of licensed banks in Malaysia
Table: Interest rates in Malaysia
Table: Capital constituents of Malaysian banking system
Table: Malaysia - Key economic indicators
Table: Nine focus areas of the master plan (2011-xx)
Table: Key ratios of Maybank
Table: Key ratios of CIMB Group
Table: Comparative Matrix

Chart: Office network of Malaysian banking institutions
Chart: Number of licensed banking institutions in Malaysia by type
Chart: Assets distribution of banking system
Chart: Share of major Malaysian commercial banks in terms of asset size
Chart: Total loans of banking system
Chart: Distribution of loans approved by purpose
Chart: Distribution of loans approved by sector
Chart: Loans approval by sector
Chart: Distribution of loans disbursed by sector
Chart: Loans disbursal by sector
Chart: Loan applications received by banking system
Chart: Loan applications vs. loan approvals
Chart: Banking system total deposits distribution as of December 2013
Chart: Banking system total deposits
Chart: Loan to deposit ratio and financing to deposit ratio
Chart: Overnight policy rate in Malaysia
Chart: Pre-tax profit and net interest income of commercial banks
Chart: Pre-tax profit of investment banks
Chart: Capital adequacy ratio of Malaysian banking system
Chart: Capital adequacy ratio of commercial and Islamic banks
Chart: Net NPL ratio
Chart: NPL by purpose
Chart: NPL by sector
Chart: Malaysia - Quarterly GDP growth rate
Chart: GDP by sector
Chart: Malaysian Islamic banking assets
Chart: Market share of major Islamic banks
Chart: Loan portfolio of Maybank
Chart: Revenue contribution by business segment
Chart: Net interest margin of Public Bank
Chart: Loan portfolio of CIMB Group by country
Chart: Loan portfolio of RHB by purpose
Chart: Gross impaired loans ratio of RHB

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