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Malaysia Banking Industry Report 1H2011 published by Emerging Markets Direct

(1888PressRelease) March 23, 2011 – Emerging Markets Direct released their latest Malaysia Banking Industry Report 1H11. Contributed by higher net interest and financing income and revenue related to financing activities, the pretax profit of Malaysia Banking Industry increased by 17.8% y-o-y to RM6.13 million in 3Q10. As of September 2010, total assets held by financial institutions in Malaysia amounted to RM1, 508.57 billion, a record growth of 10.12% y-o-y. Commercial banks represent the largest segment of all financial institutions in Malaysia (total asset at RM1, 192.84 million), with Maybank taking up 27.18% of the local market share and ranking first domestically.


About 55.61% of total loans in the Malaysian banking system is driven by the household sector (eg. Mortgage,hire purchase loans for passenger cards and personal loans), which was up 13.4% y-o-y as at September 2010. Education, health and other sectors saw a robust growth in total loans at a rate of 69.83% y-o-y. Overall, the total loans in the banking industry grew by 11.84% y-o-y to RM854.18 billion.


The banking system remains very stable with ample liquidity to meet demands for deposits withdrawals. In the third quarter of 2010, deposits saw a growth of 8.90% y-o-y, which was mainly derived from financial institutions, businesses and individuals. The loan-to-deposit ratio as well as the financing-to-deposit ratio were rather stable and remain at 81.3% and 87.8% respectively.


To sustain high level of stability, the banking system adheres to the rules and requirements specified under Bank Negara Malaysia’s mandate. All banking institutions in Malaysia are required to comply with the Risk-Weighted Capital Ratio requirement (8%) set by the central bank. As of 3Q10, the ratio remained strong at 14.75%, far more than the specified ratio.


Growth story continues in the Islamic banking segment, Islamic banking in Malaysia is the fastest growing sector in the global banking industry with an average annual growth rate of 20% over the past 5 years. Malaysia is the world’s largest market for sukuk or Islamic bond market, which takes up around 65% of the global market share. To date, Malaysia has 17 Islamic banks including Islamic units in HSBC holdings, OCBC and Standard Chartered PLC.


What is the development of Mobile Banking? How does the central bank and government offer assistance to the Small and Medium Enterprises (SME)? What are the mergers and consolidations activities set out in the Financial Sector Master Plan? What are the trends and outlook of the industry?


Profit now from our Malaysia Banking Industry report:


Table of Content

1. Industry Profile

Sector Overview

Sector Size and Value

Total Assets

Total Loans and Deposits

Interest Rates

Sector Performance

Financial Institution Profit and Loss

Capital Adequacy Ratio (CAR)

Non-Performing Loan (NPL) Ratio

2. Market Trends and Outlook

Islamic Banking

Mobile Banking

Small and Medium Enterprises (SMEs)

Industry Consolidation

3. Leading Players and Comparative Matrix

Leading Players

Malayan Banking Berhad (Maybank)

Public Bank Berhad (Public Bank)

CIMB Group Holdings Berhad (CIMB)

RHB Capital Berhad (RHB)

Hong Leong Bank Berhad (Hong Leong)

Comparative Matrix

SWOT Analysis

4. Tables & Charts

Table 1: Banking Institutions in Malaysia

Table 2: Breakdown of Total Loans by Sector (December 2006 – September 2010)

Table 3: Breakdown of Total Loans by Purpose (December 2006- September2010)

Table 4: Interest Rates in Malaysia 2006 – 2008,1Q09 to 3Q10

Table 5: Top 25 Countries by Shariah-Compliant Assets

Table 6: Number of Establishments by Sector

Table 7: CIMB: Profit before Tax by Segment FY08, FY09

Table 8: CIMB: 2009 Target Achieved

Table 9: Financial Highlights of the Leading Players FYE09 or FYE10

Chart 1: Malaysia’s GDP and Growth Rate 2006-2010

Chart 2: Total Assets by Types of Financial Institutions as at September 2009 and 2010

Chart 3: Total Assets of Nine Domestic Banks in Malaysia as at September 2010

Chart 4: Total Loans and Growth Rate September 2007-September 2010

Chart 5: Loan Disbursements by Sector 2Q09,3Q09,4Q09,1Q10,2Q10,3Q10

Chart 6: Banking System’s Loan Applications and Growth Rate 1Q07 – 3Q10

Chart 7: Loan applications vs Loan Approvals 1Q06 – 3Q10

Chart 8: Banking System’s Total Deposits as of September 2010

Chart 9: Banking System’s Total Deposits 2005-Sept 2010

Chart 10: Total Deposits by Types of Financial Institutions 2009 and September 2010

Chart 11: Loan/Financing to Deposit Ratio April 2009 – September 2010

Chart 12: Overnight Policy Rate March 2006- September 2010

Chart 13: Commercial Banks’ Lending Rates 2006 – 2008, 1Q09 to 3Q10

Chart 14: Banking System’s Capital Ratios March 2006-September2010

Chart 15: Banking System’s Net NPL Ratio March 2005 – September 2010

Chart 16: Mobile Users Worldwide by 2011

Chart 17: Maybank: Net Income by Business Activity FY2010

Chart 18: Public Bank Loan Loss Coverage 2005-2009

Chart 19: Public Bank Asset Growth 2005-2009

Chart 20: CIMB Group’s Earnings History 2005-2009

Chart 21: RHB Bank: Loans, Advances and Financing 2005-2009

Chart 22: RHB Bank: Total Deposits 2005-2009

Chart 23: RHB Bank: Operating Revenue by Business Segment in 2009

Chart 24: Intrinsic Value of Hong Leong Bank FY2006-2010

Chart 25: Hong Leong Bank Total Loans and Deposits at Bank Level FY 2006-2010


About Emerging Markets Direct


Emerging Markets Direct is the online research store from ISI Emerging Markets, a Euromoney Institutional Investor Company. We deliver in-house industry research report, industry analysis and data vital to support all kinds of business decision, academic and research purposes. Our flagship product – Emerging Markets Direct Report covers the top 20 industry sectors of India, China, Malaysia, Thailand, Indonesia, Vietnam and Indonesia. ISI Emerging Markets in-house analysts crunch the numbers from our proprietary CEIC databases and combine the results with on-the ground industry insight. The result is reliable, hard-to-get industry data, analysis and insight. Previously available only to subscribers of the ISI Emerging Markets Information Service, Emerging Market Direct reports are available now at our online research store. Our Other products are: Dealwatch, CEIC snapshots, CEIC datatalk, Intellinews. To view our full catalogue of products, please visit

Sam Allcock
Sam Allcock
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

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