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Malaysia:
Matchmaker, Make Me a Match
Snapshot: 33 banks in the 500 (1999: 34) Assets: $140.7b.
($134.1b.) Profits: $1.1b. (-$235m.)
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Economic
recovery is helping Malaysian banks repair balance sheets, but margins
are being squeezed as deposit rates have gone up to attract savers.
In the short term, rising interest rates at year-end would be another
threat.
RESTRUCTURING The tumult of the last year, not unlike a school
dance in which boys and girls are ordered to pair off, has produced
merger and acquisition contracts that will cut the number of banks
from 23 last year to just ten. Still, if you're expecting quick movement
on layoffs, branch closures and efficiency savings to improve bottom-line
results for the institutions, then you don't know Malaysia.
LENDING Despite scathing criticism from PM Mahathir Mohamad,
loan growth remains meager — nowhere near the central bank's
8% target.
REGULATION The nation has tried to improve, but consider that
a loan isn't classed as non-performing until it has been in arrears
for at least six months. In the rest of Asia (and the world) the standard
is 90 days.
LIBERALIZATION Officials plan no easing of rules against foreign
ownership.
Performance Topnotchers:
10 Best Performing Banks
| |
Institution |
HQ |
Assets
$
Mill |
Profits
$
Mill |
Profit
as
% of |
500
Rank
|
| Assets |
Equity |
| 1 |
MALAYAN
BANKING |
Kuala
Lumpur |
30,915 |
255.2 |
0.8% |
10.5% |
75 |
| 2 |
BUMIPUTRA-COMMERCE
BANK |
Kuala
Lumpur |
16,747 |
42.8 |
0.3% |
4.5% |
126 |
| 3 |
RHB
BANK |
Kuala
Lumpur |
13,676 |
71.8 |
0.5% |
6.5% |
148 |
| 4 |
PUBLIC
BANK |
Kuala
Lumpur |
11,378 |
162.1 |
1.4% |
16.0% |
167 |
| 5 |
HONG
LEONG BANK |
Kuala
Lumpur |
6,458 |
30.9 |
0.5% |
6.7% |
225 |
| 6 |
HSBC
BANK MALAYSIA |
Kuala
Lumpur |
5,927 |
-125.4 |
— |
— |
238 |
| 7 |
STANDARD
CHARTERED BANK MAL. |
Kuala
Lumpur |
4,727 |
89.0 |
1.9% |
27.5% |
270 |
| 8 |
SOUTHERN
BANK |
Kuala
Lumpur |
4,631 |
27.0 |
0.6% |
5.3% |
271 |
| 9 |
OCBC
BANK (MALAYSIA) |
Kuala
Lumpur |
4,432 |
53.0 |
1.2% |
13.0% |
275 |
| 10 |
CITIBANK |
Kuala
Lumpur |
3,997 |
90.9 |
2.3% |
27.9% |
290 |
Write to Asiaweek at mail@web.asiaweek.com
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Rating
show the number of banks in each category; "E" is the lowest
grade for financial soundness.
Souce: Moody's Investors Service
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