2. DISCLAIMER
I am NOT an investment advisor nor a financial advisor, and no information provided
here is to be interpreted as a suggestion to buy or sell securities.
Stock analysis in this presentation may not neutral because I have incorporated my
risk appetite and principles in the analysis.
2
5. SCOPE
• Figures and ratios are based on the figures reported in Annual Report or the latest
Q4 Quarterly Report (QR)
• Comparisons are made merely based on financial figures
• Growth drivers and risks/challenges are not covered here
• Valuation is not covered in this analysis.
6. CHANGES
• 3 Nov 2015 – First write up in PowerPoint format
• 8 Nov 2015 – Applied new template
8. PROFITABILITY (CONT.)
• In term of “Net Income % Tangible Assets”, from FY10 and FY13, PBBANK was the
champion, but in FY14, AMMB took over the crown. AMMB managed to achieve this
because they boosted the loan-to-deposit to 97%. This strategy is not sustainable in
long term
• For “Return on Equity”, from FY10 and FY13, PBBANK was the champion, but in
FY14, BIMB took over the crown. in FY14, BIMB reduced substantial amount pay out
to “Non-controlling Interests” – from 283,827 (FY13) to 54,575 (FY14)
• As for “Net Interest/Income Margin”, PBBANK is at the middle of the table. BIMB,
CIMB and AMMB are the top 3, but later we will look into the quality of loans.
10. ASSET RISK
3.1%
2.0%
1.9%
1.8%
1.5%
1.1%
0.8%
0.7%
0.6%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%
CIMB
RHBCAP
AMMB
AFFIN
MAYBANK
BIMB
HLBANK
AFG
PBBANK
Problem loans % of gross loans
Quality of loans of PBBANK is obviously the best in the industry. Despite NIM of CIMB, AMMB and RHBCAP
are higher than PBBANK, you can see quality of loans of the three banks are not good.
11. CAPITAL ADEQUACY
8.6%
11.6%
12.0%
12.3%
12.4%
12.7%
12.8%
13.5%
13.9%
0.0% 5.0% 10.0% 15.0%
BIMB
AMMB
AFG
HLBANK
CIMB
RHBCAP
PBBANK
MAYBANK
AFFIN
Tier 1 Ratio
6.1%
6.8%
10.1%
10.7%
11.9%
12.6%
12.7%
13.2%
14.5%
0.0% 5.0% 10.0% 15.0% 20.0%
CIMB
BIMB
AMMB
RHBCAP
PBBANK
AFG
HLBANK
MAYBANK
AFFIN
Tangible Common Equity %
RWA
Regulatory capital of all banks already met Bank Negara’s requirements.
14. FUNDING STRUCTURE & LIQUID
RESOURCES (CONT.)
• Loan-to-Deposit – PBBANK is at the middle of the table. Compare MAYBANK and
CIMB, PBBANK still has a small room to increase loans (if they want to)
• Market funds % Tangible Banking Assets – Compare to MAYBANK and CIMB,
liability-side volatility and liquidity risks of PBBANK is quite low
• Liquid Banking Assets % Tangible Banking Assets – Although PBBANK is at the
middle of the table, compare to other banks, in the past 5 years, PBBANK has been
increasing their liquid banking assets constantly.
15. MARKET RISK APPETITE
59.1%
29.6%
26.5%
23.6%
21.5%
14.7%
9.1%
7.9%
5.6%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
CIMB
MAYBANK
AMMB
RHBCAP
HLBANK
BIMB
PBBANK
AFFIN
AFG
MARKET RISK APPETITE
PBBANK is a very conservative bank in taking market risk. You can see how high market risk appetite
of CIMB is, and what happened to CIMB performance now.