Changes in Maybank unlikely to affect earnings “Maybank is already sitting comfortably on top of the game in terms of local consumer product offerings, investment banking and regional expansion. The recent changes, although quite surprising, would have little effect on the bank, which already has strong businesses and systems in place.
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The recent changes in the top personnel of Malayan Banking Bhd (Maybank) are not expected to cloud its future earnings visibility or investor sentiment towards the biggest financial institution in the country, as it has strengthened its operations in recent years, conclude industry analysts.
Although changes within Maybank do occur from time to time, analysts said Maybank had groomed top key management to step into vacancies, and that hiccups in top leadership had not dimmed its footing in the local financial landscape.
“Maybank is already sitting comfortably on top of the game in terms of local consumer product offerings, investment banking and regional expansion. The recent changes, although quite surprising, would have little effect on the bank, which already has strong businesses and systems in place.
“It is noteworthy that after the takeover of Singapore’s Kim Eng Holdings Bhd, Maybank’s investment banking has grown by leaps and bounds due to better regional exposure,” an analyst told StarBiz yesterday.
“Thus, it would just be a matter of continuing to carry on the business as usual. To be specific, the earnings visibility of the bank for the next two to three quarters is still crystal clear.”
Over the years, Maybank has seen changes in its chief executive officer (CEO) post.
The departure of Tan Sri Ahmad Don, Tan Sri Amirsham Aziz and recently Datuk Seri Abdul Wahid Omar have had little effect on the bank and its business, according to another banking analyst.
Maybank group recently saw the resignation of Tengku Datuk Zafrul Tengku Abdul Aziz as CEO of Maybank Investment Bank Bhd just weeks after Datuk Khairussaleh Ramli had resigned as president director of PT Bank Internasional Indonesia.
Analysts feel that Maybank as an institution has enough lure to attract capable people to replace those who have departed the company. Further, the processes within the bank have laid the foundation for future performance.
“Maybank already has big projects and business in its hands for the next one year. The challenge for the new CEO is only to keep up with this trend.
“I believe the new top key management has been carefully selected to carry on this trend,” he said.
Maybank’s RM4.31bil acquisition of Singapore-based Kim Eng in 2011 has boosted its stockbroking and investment banking operations in Singapore, Thailand, Indonesia, the Philippines and Vietnam.
With this, its investment banking segment aims to capture a bigger share of corporate deals in South-East Asia.
As Maybank has already cemented its footing in the local banking industry, another analyst pointed out that the bank, in recent years, had aggressively widened its wings regionally.
Its international operations’ contribution to group profit rose to 31.5% for its first half-year ended June 30 as opposed to 27.5% a year earlier, closing the gap for the bank to reach its target of 40% income contribution from its overseas businesses by 2015.
Jun 20 2013, 06:14 PM
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