Financial Roundup: Feb 27, 2015

Forbes Malaysia’s Richest; ETP Pemandu; Maybank FY14; MBSB what’s next; Samsung wages freeze

Forbes Malaysia Rich List 2015

Economic Transformation Plan (ETP) Wrap-up 2014 by Pemandu

GDP +6% (robust)
Realised private investments +13% (to RM181.5b)
Approved investments record RM235.9b
FDI -8% (Y2013:RM38b > Y2014:RM35b)
Pemandu believes ETP goal US$15,000 per capita by Y2020 achievable with 11MP
Y2015: Malaysia continued economic resilience (govt committed & on track meet revised budget)
Y2015: Expect market FBMKLCI ease before recovery year end

Equities: Maybank FY14 earnings increase to RM6.71b

FY14 profit before tax surpassed RM9.11 billion
Group loans rise 13.4% Y-o-Y ahead of 13% guidance
11.1% rise in deposits – within guidance of 10-12%
ROE of 13.8% within 13-14% target
Strong performance in international operations with accelerating momentum especially in Singapore, Philippines, Cambodia and Greater China.
Total Group assets increased to RM640.3 billion in FY14 from RM560.3 billion in FY13
Group total capital ratio of 15.88% and CET1 at 11.39% places Maybank among strongest domestically
Dividend yield of 6.2% ranks Maybank highest amongst regional peers
Debuted #17 in Bloomberg’s World’s Strongest Banks list

MBSB: Post-merger Breakdown

3way merger for mega Islamic bank with CIMB & RHB aborted in 2015 Jan
5-year growth plan especially without low-cost deposits
CEO Zaini says “Untrue that MBSB gets cheap funds from EPF”
“A merger is a must in near future but has to be good for company & stakeholders” [Update Feb 28, 2015: Bank Islam-MBSB potential merger]
3-prong strategy:
1. Strong collection model
2. Keep costs low
3. Grow corporate business
Looking to reduce personal loans (90% > 75%) & grow corporate loans

Samsung Electronics Freeze Salaries