Public Bank Berhad

popular camber Berhad The oert Bank Malaysia was founded in the yr 1966. The logo, in modern geometric design, is conceived from two appointment octagons de noning the domestic and international connections of the grouping. The interlocking of the two octagons also suggests security, force and stability. As per the latest reports unexclusive Bank Malaysia is the largest domestic banking concern in Malaysia after Malayan Banking Berhad. The creation Bank Malaysia, in legal injury of its market capitalization, is the largest corpoproportionn in Malaysia that is non linked with the Government.The expansion and get on with of the Group atomic number 18 symbolised by the edges of the octagons pointing outwards at confused directions. Additionally, the graphic formation of the two interlocking octagons also creates an eye of foresight of the organisation. Industry Of national Bank Berhad cosmos Bank Berhad is an industry attracter in hire purchase financing, home mortg ge t on financing and mercantile bring to SMEs in Malaysia. The bank has a strong distri thoion network comprising 248 full service branches in Malaysia and 109 overseas in Hong Kong, China, Vietnam, Cambodia, Laos and Sri Lanka. Public BankProduct Range Of Public Bank Berhad Public Bank Berhad in one of the leading providers of integrated monetary services in Malaysia. It primarily focuses on providing banking and financial services. The bank is engaged in offering various financial products and services, which includes investment banking, commercial banking, wealth management products, and Islamic banking services. Target Market Of Public Bank Berhad The whole Malaysian, Hong Kong, China, Vietnam, Cambodia, Laos and Sri Lanka. Aimed at providing customized banking services and products to individual customers in addition to thin care concerns.Consumer Groups The core business areas of the Public Bank Group are consumer and retail commercial loans. Individuals and families can fi nd a take to the woods of lending solutions to buy residential unit, vehicle or a consumer good. The bank offers home loan, car loan, passenger vehicle hire purchase financing and personal loan at easy terms and conditions. The small and medium sized enterprises, too, can find simplified procedure here to apply for a commercial loan. Position of The Company In Relation To Other Competitors Public Bank Berhad operates in the Commercial banks sector.This digest compares Public Bank Berhad with three some other companies Malayan Banking Berhad (2011 sales of 18. 28 billion Malaysian Ringgits US$5. 85 billion of which 25% was Consumer Banking), Cimb Group Holdings Berhad (2010 sales 16. 06 billion Malaysian Ringgits US$5. 14 billion of which 19% was Foreign Banking Ope), and AMMB Holdings Berhad (2011 sales of 5. 83 billion Malaysian Ringgits US$1. 87 billion of which 46% was Retail Banking). Company Sales(blns) P/E P/B Mkt Cap(RMm) Revenue(RM000,000) Public Bank Berhad 10. 345 13. 1 3. 10 45,067. 8 10,523 Malayan Banking Berhad 18. 278 13. 0 1. 90 62,592. 67 18,397 Cimb Group Holdings Berhad 16. 059 13. 5 2. 07 55,597. 16 16,635 AMMB Holdings Berhad 5. 831 12. 2 1. 69 17,904. 26 6,343 Market Capital Revenue proportionality For Public Bank 2008 2009 2010 Current proportion 120,700,000,000/34,789,000,000=3. 47 137,600,000,000/41,835,000,000=3. 29 156,500,000,000/45,911,000,000=3. 41 Quick proportionality 60,656,000,000/34,789,000,000=1. 97 67,986,000,000/41,835,000,000=1. 63 59,269,000,000/45,911,000,000=1. 29 Average age of inventory unachievable since PBB is not gnarly in trading.No inventories Impossible since PBB is not involved in trading. No inventories Impossible since PBB is not involved in trading. No inventories Average appealingness Period Impossible since PBB is not involved in trading. No sales hence no receivables Impossible since PBB is not involved in trading. No sales hence no receivables Impossible since PBB is not involved in trading. No sales hence no receivables Average ease upment extremity Impossible since PBB is not involved in trading. No purchases Impossible since PBB is not involved in trading. No purchases Impossible since PBB is not involved in trading.No purchases Total asset turnover 10,500,307,000/196,163,106,000=0. 054 9,715,568,000/271,136,154,000=0. 045 11,035,597,000/226,328,976,000=0. 049 Debt ratio (185,934,374,000/196,163,106,000)x100=94. 79% (205,420,830,000/217,136,154,000)x100=94. 60% (212,643,888,000/226,328,976,000)x100=93. 96% magazine interest earned 18,790,015,000/4,562,396,000=4. 12x 17,068,609,000/3,316,609,000=5. 15x 19,149,128,000/3,516,111,000=5. 45x Gross gelt coast (3,948,155,000/10,500,307,000)x100=37. 60% (4,015,055,000/9,715,568,000)x100=41. 33% (4,738,265,000/11,035,597,000)x100=42. 4% Net return margin (2,622,660,000/10,500,307,000)x100=24. 98% (2,551,540,000/9,715,568,000)x100=26. 26% (3,099,077,000/11,035,597,000)x100=28. 08% ROA (2,622,660,000/196,163,106,000)x100=1 . 34% (2,551,540,000/217,136,154,000)x100=1. 18% (3,099,077,000/226,328,976,000)x100=1. 37% ROE (2,622,660,000/10,228,732,000)x100=25. 64% (2,551,540,000/11,715,324,000)x100=21. 78% (3,099,077,000/13,685,088,000)x100=22. 65% Analysis Of Public Bank Performance Liquidity Ratio Current Ratio = Current assets/ menstruum liabilities 2008 2009 2010 120,700,000,000/ 34,789,000,000 =3. 7 137,600,000,000/ 41,835,000,000 =3. 29 156,500,000,000/ 45,911,000,000 =3. 41 The ratio is mainly used to measure the play alongs ability to pay natural coveringits short-term liabilities with its short-term assets. As we seen the companionship up-to-date ratio for these 3 course of studys, there are decreases from course 2008 to division 2009 but they increase back when come to social class 2010. These 3 stratums veritable ratio is significant higher than the acceptable ratio. The acceptable ratio is 21 but for the public bank, the current ratio are (2008 1 3. 47, 2009 1 3. 29, 2010 1 3. 41). These shows that the Public Bank is not using its resources as efficiently as it could be. Public Bank should reduce its current assets so there are no excessive current assets. Quick Ratio = (current assets-inventories)/current liabilities 2008 2009 2010 60,656,000,000/ 34,789,000,000 =1. 97 67,986,000,000/ 41,835,000,000 =1. 63 59,269,000,000/ 45,911,000,000 =1. 29 Quick ratiomeasuresa companys ability to meetits short-term obligations withits most liquid assets. The higher the quick ratio,thebetter the mark of thecompany. From the company 3 years quick ratio, the quick ratio are (2008 1 1. 7, 2009 1 1. 63, 2010 1 1. 29) These shows that the company quick ratio is slightly higher than the acceptable ratio that are 11. but the quick ratio for the company are getting better year to year. The company should reduce its current account to reach the desirable ratio that are 11. Activity Ratio Average age of inventory =(Average inventories/Cost of sales)x365 2008 2009 2010 N/A N/A N /A Impossible to count since Public Bank Berhad is not involved in trading. No physical inventories are involved. Average parade period = (receivables/sales) x365 2008 2009 2010N/A N/A N/A Impossible to compute since Public Bank Berhad is not involved in trading. No physical inventories are involved. Average payment period =(Payable/Cost of sales)x365 2008 2009 2010 N/A N/A N/A Impossible to compute since Public Bank Berhad is not involved in trading. No physical purchases are involved. Total assets turn over= Operating revenue/total assets 2008 2009 2010 10,500,307,000/196,163,106,000 =0. 054 9,715,568,000/271,136,154,000 =0. 045 11,035,597,000/226,328,976,000 =0. 049 Asset turnovermeasuresa firms efficiency at using its assets in generating sales.The total assets turnover over for the 3 years, there are decrease in year 2009 but increases in year 2010. For each RM1 of assets for the year 2008, Public Bank only manage to generate RM0. 054 of sales. For the year 2009 and 2010, for each RM1 of the assets, Public Bank only generates RM0. 045 and RM0. 049 of sales. The amount are worsen but there are increases for year 2010. This is because the company withstand higher profit margin, so they would have lower assets turnover. Financial Ratio Debt ratio=(Total liabilities/Total asset)x100% 2008 2009 2010 (185,934,374,000/196,163,106,000)x100=94. 9% (205,420,830,000/217,136,154,000)x100=94. 60% (212,643,888,000/226,328,976,000)x100=93. 96% A ratio that indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. Time Interest Earned Ratio=EBIT/Interest 2008 2009 2010 18,790,015,000/4,562,396,000=4. 12x 17,068,609,000/3,316,609,000=5. 15x 19,149,128,000/3,516,111,000=5. 45x Ensuring interest payments to debt holders and preventing bankruptcy depends mainly on a companys ability to sustain earnings.However, a high ratio can indicate that a company has an unenviable lack of debt or is paying down too much debt with earnings that could be used for other projects. The rationale is that a company would yield greater returns by investing its earnings into other projects and acceptation at a lower cost of capital than what it is currently paying to meet its debt obligations. Analysis The company have a high time interest earned ratio in this few year and the ratio keep increase. This suggests that this company is less burdened by debt expense and the company has no riddle in settling its interest expenses in the future.Profitability Ratio Gross Profit Margin=Gross profit margin/Net sales 2008 2009 2010 (3,948,155,000/10,500,307,000)x100=37. 60% (4,015,055,000/9,715,568,000)x100=41. 33% (4,738,265,000/11,035,597,000)x100=42. 94% The rough-cut margin is not an get estimate of the companys pricing strategy but it does give a good indication of financial health. Without an capable gross margin, a company will be unable to pay its operating and other expenses and seduce for the future. Net Profit Margin=(Earning to common stockholders/sales)x100% 2008 2009 2010 (2,622,660,000/10,500,307,000)x100=24. 98% (2,551,540,000/9,715,568,000)x100=26. 6% (3,099,077,000/11,035,597,000)x100=28. 08% Net profit margin is the ratio of net profit to revenues a companys pricing strategy and operating efficiency. give On Assets=(Earning to common stockholders/total assets)x100% 2008 2009 2010 (2,622,660,000/196,163,106,000)x100=1. 34% (2,551,540,000/217,136,154,000)x100=1. 18% (3,099,077,000/226,328,976,000)x100=1. 37% Return on assets is an indicator of how profitable a company is relative to its total asset, the ratio measures how efficient management is at using its assets to generate earning. Return On Equity=(Earning to common stockholders/total blondness)x100% 2008 2009 2010 2,622,660,000/10,228,732,000)x100=25. 64% (2,551,540,000/11,715,324,000)x100=21. 78% (3,099,077,000/13,685,088,000)x100 =22. 65% Return on equitymeasures a corporations profitabilityby revealing how muchprofit a company generateswith themoneyshareholders have invested. Analysis Public Bank Berhad have a very high net profit margin and the profit increase from 24. 98% in year 2008 to 26. 26% in year 2009. When in year 2010, it rise to 28. 08% again. Its mean this company generate 24. 98% in year 2008, 26. 26% in year 2009 and 28. 08% in year 2010 for every RM100 sales. Furthermore, the return on assets are in the high rate.In the year 2008, the ROA is 1. 34% and it decreased to 1. 18% in the year 2009. However, in year 2010 the ROA increases to 1. 37%. Its because of Public Bank has expanded its self service channels such as Automated Teller Machines, check over Deposit Machines and Cash Deposit Terminals to 1,400 machines to serve its large customer base. The ROE for this company in year 2008 is 25. 64%. However it drops to 21. 78% in the year 2009. The ROE increases again in the year 2010 to 22. 6 5%. Its mean this company is more capable of generating cash internally. For the example, Public Bank Berhad is able to pay its shareholders the return he interest of 25. 64% in the year 2008. Conclusion The Overall of our research rough Public Bank Berhad have a very good performance. The Public Bank group should test to tap all growth opportunities arising from the improving economic and business environment, with the aim of delivering superior shareholder hold dear over the long-term. Retail consumer and commercial banking should remain the core focus of the Group. In consumer financing, the group should continue to embolden home mortgages, passenger vehicle hire purchase financing and personal financing. RecommendationOverall all our research more or less Public Bank Berhad and its competitors, Public Bank Berhad was performance very well in this 3 years. curiously when come to the year 2010, the profit before tax increases by 23. 0%. The Groups gross loans, advances and f inancing recorded strong growth of 13. 8% in 2010, with the Groups domestic lending business growing 15. 6% during the year. However, Gross impaired loans ratio drop by 0. 03%. The financial epidemic in late 2008 and 2009 that threatened to push the global economy into a deep recession was mostly contained through the concerted efforts of the worlds major government and central banks.