Malaysia Banking Industry1h11 – Overview,trends,analysis,outlook And Swot

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 Malaysias 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 worlds 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
1.2.3 Interest Rates
1.3 Sector Performance
1.3.1 Financial Institution Profit and Loss
1.3.2 Capital Adequacy Ratio (CAR)
1.3.3 Non-Performing Loan (NPL) Ratio
2. Market Trends and Outlook
2.1 Islamic Banking
2.2 Mobile Banking
2.3 Small and Medium Enterprises (SMEs)
2.4 Industry Consolidation
3. Leading Players and Comparative Matrix
3.1 Leading Players
3.1.1 Malayan Banking Berhad (Maybank)
3.1.2 Public Bank Berhad (Public Bank)
3.1.3 CIMB Group Holdings Berhad (CIMB)
3.1.4 RHB Capital Berhad (RHB)
3.1.5 Hong Leong Bank Berhad (Hong Leong)
3.2 Comparative Matrix
3.3 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: Malaysias 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 Systems Loan Applications and Growth Rate 1Q07 3Q10
Chart 7: Loan applications vs Loan Approvals 1Q06 3Q10
Chart 8: Banking Systems Total Deposits as of September 2010
Chart 9: Banking Systems 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 Systems Capital Ratios March 2006-September2010
Chart 15: Banking Systems 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 Groups 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