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KUALA LUMPUR: Malayan Banking Bhd (Maybank), which is looking to open more branches in China, intends to further improve the performance of its associate MCB Bank in Pakistan despite the challenges in the country.
Group president and chief executive officer Datuk Abdul Farid Alias said Maybank, while acknowledging there were political and social challenges in Pakistan, was looking at ways to improve the performance of its 20% associate MCB Bank.
“MCB Bank, currently, is the most profitable bank in the country. It made about RM600mil in profits last year and from the profitability perspective, it registered a decent return on equity of about 21%.
“What we are doing now is engaging with the board of MCB (Maybank has two board representatives) and the CEO of the bank as well as with various heads of businesses in the areas of trade and treasury, among others, to see how Maybank can help improve the performance of MCB going forward,’’ he said at a press briefing after the bank’s AGM.
Last year, despite a dip in net interest margin, MCB’s gross loans grew by 0.83%, contributed by an increase in short-term loans. Deposits grew by 14.2% mostly contributed by current accounts savings accounts.
Asked whether there were any plans to further sell-down its shares in its subsidiaryBank Internasional Indonesia (BII) to comply with Indonesia’s latest public float regulation, Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said there was no plan to further dispose of the bank’ shares in BII as it had met the regulatory requirement of the 20% public float in BII.
Maybank in a statement to Bursa Malaysia said it disposed of 5.68 million shares (representing 9.3% stake in BII) on Nov 22 last year and was now in full compliance with the sell-down requirement to achieve a 20% public float in BII. With the completion of the disposal, the free float of BII shares has increased from 11.7% to 20% of the issued and paid-up share capital of BII.
Megat said at the moment, there were no plans to make further acquisitions in Indonesia. Maybank would not consider any prospective acquisition if it, eventually, ended up losing operational control.
Farid said Maybank was currently in talks with China’s Banking Regulatory Commission on the possibility of expanding the number of branches there, noting that Maybank now had three branches in Greater China.
The branches are located in Hong Kong, Shanghai and Beijing and provides mainly wholesale banking services to the commercial and corporate segments, with focus on cross-border services in Asean-China context.
As to the recent acquisition of Hong Kong’s Wing Hang Bank Ltd by Oversea-Chinese Banking Corp, he said Maybank was not affected by the move as it was quite comfortable with its existing scale, speed and risk profile in terms of the businesses it had in China and in the region.
Group president and chief executive officer Datuk Abdul Farid Alias said Maybank, while acknowledging there were political and social challenges in Pakistan, was looking at ways to improve the performance of its 20% associate MCB Bank.
“MCB Bank, currently, is the most profitable bank in the country. It made about RM600mil in profits last year and from the profitability perspective, it registered a decent return on equity of about 21%.
“What we are doing now is engaging with the board of MCB (Maybank has two board representatives) and the CEO of the bank as well as with various heads of businesses in the areas of trade and treasury, among others, to see how Maybank can help improve the performance of MCB going forward,’’ he said at a press briefing after the bank’s AGM.
Last year, despite a dip in net interest margin, MCB’s gross loans grew by 0.83%, contributed by an increase in short-term loans. Deposits grew by 14.2% mostly contributed by current accounts savings accounts.
Asked whether there were any plans to further sell-down its shares in its subsidiaryBank Internasional Indonesia (BII) to comply with Indonesia’s latest public float regulation, Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said there was no plan to further dispose of the bank’ shares in BII as it had met the regulatory requirement of the 20% public float in BII.
Maybank in a statement to Bursa Malaysia said it disposed of 5.68 million shares (representing 9.3% stake in BII) on Nov 22 last year and was now in full compliance with the sell-down requirement to achieve a 20% public float in BII. With the completion of the disposal, the free float of BII shares has increased from 11.7% to 20% of the issued and paid-up share capital of BII.
Megat said at the moment, there were no plans to make further acquisitions in Indonesia. Maybank would not consider any prospective acquisition if it, eventually, ended up losing operational control.
Farid said Maybank was currently in talks with China’s Banking Regulatory Commission on the possibility of expanding the number of branches there, noting that Maybank now had three branches in Greater China.
The branches are located in Hong Kong, Shanghai and Beijing and provides mainly wholesale banking services to the commercial and corporate segments, with focus on cross-border services in Asean-China context.
As to the recent acquisition of Hong Kong’s Wing Hang Bank Ltd by Oversea-Chinese Banking Corp, he said Maybank was not affected by the move as it was quite comfortable with its existing scale, speed and risk profile in terms of the businesses it had in China and in the region.
