Public Bank Malaysia

The Public bank Malaysia was founded in the year 1966, aimed at providing customized banking services and products to individual customers in addition to small business concerns. The Public Bank was established its Founder and Chairman, Tan Sri Dato Sri Dr. Teh Hong Piow, Public Bank is a leading provider of financial services in Malaysia with banking operations in Hong Kong and China, Cambodia, Vietnam, Laos and Sri Lanka. In Malaysia, Public Bank is one of the most efficient banks as reflected by its low cost to income ratio.Public Bank is a top-tier bank in Malaysia, well-reputed for its prudent management, superior customer service, uncompromising service delivery standards and strong corporate governance and corporate culture. Public Bank remains untouched by the global financial crisis which wrecked havoc in major financial centers around the world. Over the years, the Public Bank Group has been part of the strong catalysts to support Malaysias economic development. Since its early days, Public Bank has transformed into a strong and successful financial institution, offering a wide range of competitive and innovative products and solutions to meet its customers needs. In Malaysia, Public Bank is an industry leader in home mortgage financing, vehicle hire purchase financing and commercial lending to small- and medium-sized enterprises. Also, in Malaysia, the Public Bank Group has the highest market share for the private sector unit trust business. In Hong Kong, the Group is an industry leader in personal consumer financing. Besides, Public Bank is the most recognized brand in the Malaysian financial services industry for its strong brand promise. In terms of size, it is the third largest domestic bank in Malaysia by market capitalization and balance sheet.

The graph above showed the amount of total asset of Public Bank from year 2005 till year 2009. On 2005, the total amount of asset was RM 107447321000. In 2006, the amount

has increased to RM 134267022000 which increased 24.96%. In 2007, the amount of total asset has increased 18.03% to RM 158471100000. The amount of total asset in 2008 was RM 166698854000 which has increased 5.19% compared to the previous year. In 2009, the amount has increased to RM 176576601000 which was 5.93%. The greatest increased in the percentage during this five years was from year 2005 to 2006 which was 24.96% and the lowest increased was from year 2007 to 2008 which was 5.19%. The dramatically increased of the total amount of total asset from year 2005 to 2006 was mainly driven by an increase in deposit placements by customers and funds from the issuance of innovative Tier-1 capital securities, which were channelled to fund the continued strong growth in loans, advances and financing. Excess liquidity was mainly held as interbank placements with financial institutions, particularly with Bank Negara Malaysia. In conclusion, the increased in percentage of the amount of total asset in the five years above was mainly affected by the customer and the financial institutions.

The graph above showed the amount of loans, advances and financing in years 2005 till years 2009. Loans, advances and financing were one of the elements in asset. Loans, advances and financing were important for a bank because usually they achieved more than 50% in the amount of the total assets. In 2005, the amount of loans advances and financing was RM 64579905000. This was achieved through competitive pricing, innovative product packaging and proactive product enhancement as well as improved loan service delivery standards, including fast approval turnaround time and efficient documentation and disbursement processes.

In year 2006, the amount of loans, advances and financing has increased to RM75891397000 which was 17.52%. The amount of loans advances and financing have increased to RM 89805707000 in year 2007 which was increased about 18.33% compared to the previous year. In year 2008, the amount has just increased 3.75% to RM 93174291000. In year 2009, the total amount of loans, advances and financing has increased to RM 107962807000 which was 15.87%. During these five years, the greatest increased in percentage was from year 2006 to year 2007 which was 18.333%. In the other hand, the least increased in percentage was from year 2007 to year 2008 which was just increased 3.75%. However, the percentage has increased back to 15.87% from year 2008 to year 2009. The dramatically increased from year 2006 to 2007 was due to the Public Bank Groups lending direction more focussed on the retail sector that bring that have brought a lot of benefits to the Group. This has led to the increased of total amount in Public Banks loans, advancing and financing indirectly. Meanwhile, the least increased in year 2007 to 2008 is due to the turndown of the economic environment. However, Public Bank still in a good condition because it remained in increased in their total amount of loans compared to the other bank that some were facing decreased in their total amount of loans. In conclusion, Public Bank was in good position because the loans that they have offered were still increasing year by year. The main purpose in the increased was due to Public Bank has used a different strategy in their marketing concept. They have made more innovative product packaging and proactive product enhancement as well as improved loan service delivery standards including fast approval turnaround time and efficient documentation and disbursement processes. This have made the difference between Public Bank and the others bank.

Housing loans is one of the elements in loans. The graph above showed the trend of the total amount of housing loan from year 2005 till year 2009. In year 2005, the total amount of housing loans was RM 18902511000. In year 2006, the total amount has increased to RM 22656307000 which was increased 19.86% compared to the previous year. The total amount has increased to RM 25795082000 which was 13.85% in year 2007. In year 2008, the total amount of the housing loans has increased to RM27275929000 which was 5.74%. The total amount continued to increase in year 2009 to RM 32520706000 which was 19.23%. The greatest increased in percentage was in year 2005 to 2006 and the least increased in percentage was in year 2007 to 2008. The increasement during these five years was due to Public Bank offered a better package of loans to attract the customers. Public Bank offered a lower interest to customers. Besides, Public Bank also was well known with their services.

The graph above indicates the total amount of total liabilities from year 2005 to year 2009. In year 2005, the total amount of total liabilities was RM 99226947000. The total amount increased to RM 125296695000 which was 26.27% in year 2006 compared to the previous year. In year 2007, the total amount of liabilities has increased to RM149120485000 which was 19.01%. In year 2008, the total amount has increased 5.49% to RM 157307025000. It was driven by the increased in deposit from customers. In the following year, the total amount has increased

to RM 166134389000 which was 5.61% compared to the previous year. The increased in the total amount of the total liabilities during these five years was mainly driven by the increase in deposits from customers, deposits and placements of banks and other financial institutions and debt issuances.

The graph above showed the total amount of the deposit from customers from year 2005 till year 2009. The element of deposit from customers achieved a great huge of size in the amount of total liabilities. In year 2005, the total amount of deposit from customers was RM 82205182000. It increased to RM 102642918000 which was 24.86% in year 2006. The total amount continued increased to RM 126424828000 which was 23.17% in year 2007. In year 2008, the total amount has increased to RM 134062248000 which was 6.04%. In year 2009, the total amount continued increased to RM135387490000 which was 0.99%. The increased in the total amount of deposit from customers was mainly supported by the Banks extensive branch network, its high standards of customer service delivery and the expansion of its product offerings including foreign currency deposits and principal guaranteed structured deposit products. The deposits from customers were a stable source of funds and continued to be the Banks main source of deposits,

MALAYAN BANKING BERHAD(MAYBANK)

Malayan Banking Berhad or Maybank was incorporated in Malaysia on 31 May 1960 and commenced operations on 12 September 1960. On 17 February 1962, Maybank was listed on the then Kuala Lumpur Stock Exchange and it was named as Bursa Malaysia today. The bank is today among the top companies by market capitalization on Bursa Malaysia and is the second largest listed company on the Malaysian Stock Exchange, Bursa Malaysia with a market capitalization of over RM30 billion as of mid-April 2009. Besides that, the bank is Malaysias largest financial services group with total assets exceeding RM330 billion. The Group has an extensive global network of 1,750 offices in 14 countries namely Malaysia, Singapore, Indonesia, Philippines, Brunei Darussalam, Vietnam, Cambodia, China, United Kingdom, U.S.A., Bahrain, Papua New Guinea, Pakistan and Uzbekistan. . Maybank was founded by Malaysian business tycoon Khoo Teck Puat, who died in 2004. The company was led by President and CEO Amirsham Abdul Aziz for some two decades until March 2008 after which he was appointed Minister in the Prime Minister's Department in-charge of the Economic Planning Unit, a post he held until April 2009. Dato' Sri Abdul Wahid Omar was officially appointed as President & CEO of Maybank Group in May 2008. As of June 30, 2010, Maybank is the largest Malaysian bank, boasting group assets worth RM337 billion (USD$106 billion), placing it among the top 120 banks worldwide. Malayan Banking is also a listed corporation on Bursa Malaysia. The corporate vision is To be a leading regional financial services group by 2015. Therefore, to achieve the company vision, Maybank will attempt to attain the following are top five financial services group in South/South East Asia.

In year of 2005 and 2006, the banks outstanding assets increased by RM21.7billion or 12.3% and 15.38% or RM30.3 billion. This was mainly due to the lower growth of customer deposits, especially the higher-cost deposits. The assets for Financial Year 2008 have declined 3.64% or RM8.27 billion. In year 2009, the growth rate is increasing 8.72% or RM19.1billion. The Bank remained a net lender in the inter-bank market, as it can be proved that the deposits and placements with banks and other financial institutions have decreased from RM15.6 billion to RM8.8 billion.

Outstanding liabilities of the Bank during the Financial Year of 2006 went up RM2.2billion or almost 13.4%. The bank has continuously maintains in the strong market until 2007 which has increased about 15.52%. Unfortunately, during the Financial Year of 2008, outstanding liabilities for the Bank declined by RM8 billion or almost 3.8%. The bulk of overall decrease was attributed to deposits and placements of financial institutions which declined by around RM 6 billion and signified the continued high growth in customer deposits which further decreased the need to derive additional funding requirements from financial institutions for gapping activities. In year 2009, the outstanding liabilities have increased 6.83% and the amount is RM21.5billion.The overall increased was come from the increase in deposits from customers and deposits and placements of other financial institutions. It proved that the banks pricing capacity was enhanced by its strong market shares in demand and savings deposits. This shows that the citizen of Malaysia have confident with the bank by investing or deposit their saving in the account of MAYBANK.

The chart above showed the amount of loans, advances and financing in years 2005 till years 2009. Loans, advances and financing were one of the elements in asset. Loans, advances and financing were important for a bank because usually they achieved more than 50% in the amount of the total assets. The trend of the loans, advances and financing is increasing steadily. In 2005, the amount of loans advances and financing was RM 12.7billion. In year 2006, the amount of loans, advances and financing has increased to RM12.4billion which was 10.7%.For the year 2007 which was increased about 6.55% compared to the previous year. In year 2008, the amount has just increased 1.93% .In year 2009, the total amount of loans, advances and financing has increased about 4.87% or RM7billion. The increasement was mainly driven by Maybank offered a great package of loans and financing that satisfied the customers.

Housing loans is one of the elements in loans. The chart above showed the trend of the total amount of housing loan from year 2005 till year 2009. In year 2005, the total amount of housing loans was RM 2.1billion. In year 2006, the total amount has increased to RM 2.5billion which was increased 19.36% compared to the previous year. The total amount has increased to RM 2.7billion which was 5.06% in year 2007. In year 2008, the total amount of the housing loans has decreased to RM2.5billion which was 4.94%. The total amount turned to increase in year 2009 to RM 2.7billion which was 6.9%. The trend of dramatically increased and decreased during these five years was due to Maybank was facing competitive challenge with the other financial institution.

The chart above showed the total amount of the deposit from customers from year 2005 till year 2009. In year 2005, the total amount of deposit from customers was RM 11.8billion. It increased to RM 12.5billion which was 5.8% in year 2006. The total amount continued increased to RM 14.9billion which was 19.53% in year 2007. In year 2008, the total amount has increased to RM 15.6billion which was 4.51%. In year 2009, the total amount continued increased to RM16.3billion which was 7.3%. The highest increased was from year 2006 to 2007, which was 19.53%. The increased in the total amount of deposit from customers was mainly driven by the improved of the banks customer service delivery.

The graph above showed the difference about the total amount of loans, advances and financing between Public Bank and Maybank. For Public Bank the total amount of loans advances and financing was RM6.4billion in year 2005. In year 2006, the amount of loans, advances and financing has increased to RM7.5billion which was 17.52%. The amount of loans advances and financing have increased to RM 8.9billion in year 2007 which was increased about 18.33% compared with the previous year. In year 2008, the amount has just increased 3.75% to RM 9.3billion. In year 2009, the total amount of loans, advances and financing has increased to RM 10.7billion which was 15.87%.

Meanwhile, the total amount of loans, advances and financing for Maybank in year 2005 was RM 12.7billion. In year 2006, the total amount has increased to RM 12.4billion which was increase by 10.7%. The total amount has then increased to RM13.6billion which was increased by 6.55% in year 2007. The total amount increased again to RM13.8billion which was 1.93% in year 2008. In year 2009, the total amount has increased to RM14.4bilion which was 4.02%. During these five years, the total amount of loans, advances and financing that had provided by Maybank were greater than Public Bank all the time. In year 2005, the total amount of Maybank was greater than Public Bank by RM5billion. In year 2006, 2007, 2008, and 2009, the total amount of the loans, advances and financing of Maybank were greater than Public Bank by RM5.2billion, RM4.6billion, RM4.5billion and RM3.6billion respectively. The reason that made Maybank ahead than Public Bank was in Maybank was more well known compared with Public Bank in Malaysia. In Malaysia, Maybank was one of the top bank because somehow it might also can considered as a local bank. Government usually tend to choose Maybank to their employees. As a conclusion, both of the banks were well known by their services and their great package of loans and etc that very satisfied the customers.

Summary
For the two commercial bank which is Public Bank and Maybank , the overall performance during the year 2005 until year 2009, Public Bank is much better than Maybank. During the year 2008, Public Bank launched 3 capital protected structured investment products and a Gold Investment Account, all of which received strong customer response. Public Bank's strong financial performance and its record of excellence in corporate governance continued to be validated by a total of 39 awards and recognition of excellence received in 2008, including 10 Best Bank or Company in Malaysia awards. The bank has consistently achieved a high level of loan growth annually since 2001 through competitive pricing, innovative product packaging and proactive product enhancement as well as high standards of loan service delivery, including fast approval turn around times and efficient documentation and disbursement processes. Public Bank is a top-tier bank in Malaysia, well-reputed for its prudent management, superior customer service, uncompromising service delivery standards and strong corporate governance and corporate culture. Public Bank remains untouched by the global financial crisis which wrecked havoc in major financial centers around the world. Over the years, the Public Bank Group has been part of the strong catalysts to support Malaysias economic development. Last but not least, both bank, Maybank and Public Banks performance and services that provide were good. They can enhance our economic growth in our future. Besides, they also brought us a lot of benefits when compared to the previous time.