1. Industry Profile 1.1 Sector overview 1.2 Sector size 1.2.1 Total assets 1.2.2 Total loans and deposits 1.2.3 Interest rates 1.3 Sector performance 1.3.1 Banking institutions financial performance 1.3.2 Capital adequacy ratio 1.3.3 Non performing loans 2. Market Trends and Outlook 2.1 Key economic indicators-Malaysia 2.2 Islamic banking 2.3 The financial sector master plan (2011-2020) 3. Leading Players and Comparative Matrix 3.1 Leading players 3.1.1 Malayan Banking Berhad 3.1.2 Public Bank Berhad (Public Bank) 3.1.3 CIMB Group Holdings Berhad 3.1.4 RHB Capital Berhad 3.2 Comparative matrix 3.3 SWOT analysis
4. Tables and Charts Table 1: List of licensed banks in Malaysia Table 2: Interest rates in Malaysia Table 3: Capital constituents of Malaysian banking system Table 4: Malaysia - Key economic indicators Table 5: Nine focus areas of the master plan (2011-20) Table 6: Key ratios of Maybank Table 7: Key ratios of CIMB Group Table 8: Comparative Matrix
Chart 1: Office network of Malaysian banking institutions Chart 2: Number of licensed banking institutions in Malaysia by type Chart 3: Assets distribution of banking system Chart 4: Share of major Malaysian commercial banks in terms of asset size Chart 5: Total loans of banking system Chart 6: Distribution of loans approved by purpose Chart 7: Distribution of loans approved by sector Chart 8: Loans approval by sector Chart 9: Distribution of loans disbursed by sector Chart 10: Loans disbursal by sector Chart 11: Loan applications received by banking system Chart 12: Loan applications vs. loan approvals Chart 13: Banking system total deposits distribution as of December 2014 Chart 14: Banking system total deposits Chart 15: Loan to deposit ratio and financing to deposit ratio Chart 16: Overnight policy rate in Malaysia Chart 17: Pre-tax profit and net interest income of commercial banks Chart 18: Pre-tax profit of investment banks Chart 19: Capital adequacy ratio of Malaysian banking system Chart 20: Capital adequacy ratio of commercial and Islamic banks Chart 21: Net NPL ratio Chart 22: NPL by purpose Chart 23: NPL by sector Chart 24: Malaysia - Quarterly GDP growth rate Chart 25: GDP by sector Chart 26: Malaysian Islamic banking assets Chart 27: Loan portfolio of Maybank Chart 28: Pretax profit contribution by business segment Chart 29: Net interest margin of Public Bank Chart 30: Loan portfolio of CIMB Group by country
Malaysia Banking Industry Report - 2015 Description
This report profiles Malaysia’s banking industry, analyzing sector size and performance as well as market trends through 2014 and outlook for 2015. The report also highlights the leading players in the industry including Maybank, CIMB Bank, Public Bank and RHB Bank.
Malaysia’s GDP grew by 4.9% y/y in the second quarter of fiscal year 2015. The growth was mainly supported by private sector demand in an environment of weak exports. The banking industry in Malaysia remained resilient in 2014. Total loans grew to MYR 1.34tr, while total deposits from customers increased to MYR 1.64tr in 2014. The loan-to-deposit ratio was healthy at above 85%. The biggest portion of the gross loans was utilized for working capital with 35%, followed by residential property and transport vehicles with 18% and 13%, respectively. Both RWCR and core capital ratio of Malaysian banks remained strong as of December 2014. 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. Despite a contraction in 2014, fixed 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 outlook for Malaysian banking is positive owing to the stable economic growth and rising per capita income of the country. However, loan growth for this year is expected to moderate, largely due to falling household loans growth as well as weak consumer sentiment. Nevertheless, the emergence of Malaysia as an Islamic banking hub will further elevate the growth of this sector.
As of December 2014, total assets held by banking institutions in Malaysia amounted to MYR 2.26 trillion (tr), an increase of 9.5% y/y as compared to 8.5% in 2013.
Total loans of the banking system grew by 9.3% y/y to reach MYR 1.34tr in 2014.
Total deposits of the banking system grew by 7.6% y/y to reach MYR 1.64tr as of Dec 2014.
Purchase of residential property accounted for a significant 40% of the total loans approved by the banking system in 2014.