Public Bank Berhad

frequent patois Berhad The world Bank Malaysia was founded in the category 1966. The logo, in modern geometric design, is conceived from two interlocking octagons denoting the domestic help and internationalist connections of the Group. The interlocking of the two octagons excessively suggests security, strength and stpower. As per the latest reports overt Bank Malaysia is the largest domestic bank in Malaysia after Malayan Banking Berhad. The exoteric Bank Malaysia, in foothold of its market capitalization, is the largest corpo balancen in Malaysia that is not linked with the Government.The expansion and progress of the Group are symbolised by the edges of the octagons pointing outward at several(a) directions. Additionally, the graphic formation of the two interlocking octagons also creates an eye of foresight of the organisation. Industry Of public Bank Berhad Public Bank Berhad is an industry leader in make use of purchase financing, home mortg senesce financing an d commercial lending to SMEs in Malaysia. The bank has a strengthened distrisolelyion moolahwork 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 financial services in Malaysia. It mainly focuses on providing banking and financial services. The bank is eng get ond in offering various financial products and services, which includes investment banking, commercial banking, wealth management products, and Islamic banking services. station 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 item-by-item customers in addition to small business concerns.Consumer Groups The core business areas of the Public Bank Group are consumer and retail commercial loans. Individuals and families can incur a range of lending solutions to buy residential unit, vehicle or a consumer redeeming(prenominal). The bank offers home loan, car loan, passenger vehicle drive purchase financing and personal loan at easy terms and conditions. The small and medium sized enterprises, too, can find simplified functioning 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 epitome compares Public Bank Berhad with three other companies Malayan Banking Berhad (2011 sales of 18. 28 one million million million 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(RM000,00 0) 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 balance For Public Bank 2008 2009 2010 Current balance 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 ratio 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 inconceivable since PBB is not complicated in trading.No inventories impractical since PBB is not mired in trading. No inventories unacceptable since PBB is not involved in trading. No inventories Average Collection 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 inv olved in trading. No sales hence no receivables Average payment full point 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 resume 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% Time enliven 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 sodding(a) net income margin (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 remuneration 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% hard 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% summary Of Public Bank death penalty Liquidity proportionality Current Ratio = Current assets/ authorized 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 companys ability to pay backits short-term liabilities with its short-term assets. As we seen the company authorized ratio for these 3 socio-economic classs, there are slumps from category 2008 to year 2009 and they increase back when come to year 2010. These 3 years current ratio is significant higher than the acceptable ratio. The acceptable ratio is 21 nevertheless 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 busy ratio,the interrupt the position of thecompany. From the company 3 years lively ratio, the supple 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 worthy 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 elaborate since Public Bank Berhad is not involved in trading. No carnal inventories are involved. Average collection 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/ entireness 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 sum 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 o f 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 have higher get 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 records 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 bring in 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 net income.However, a high ratio can indicate that a company has an undesirable lack of debt or is paying floor too much debt with earnings that could be used for other projects. The principle is that a company would yield greater returns by investing its earnings into other projects and borrowing 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 problem in settling its interest expenses in the future.Profitability Ratio Gross Profit Margin=Gross nourish 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 task income margin is not an exact estimate of the companys pricing strategy but it does give a good indication of financial health. Without an adequate earn margin, a company will be unable to pay its direct and other expenses and build 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. result 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% try 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. parry On Equity=(Earning to common stockholders/total equity)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 uncover 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, Cheque Deposit Machines and Cash Deposit Terminals to 1,400 machines to avail 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. 65%. Its mean this company is more adequate to(p) 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 interrogation about Public Bank Berhad have a very good performance. The Public Bank group should seek to tap all emergence opportunities arising from the improving economic and business environment, with the aim of delivering superior shareholder value 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 promote home mortgages, passenger vehicle hire purchase financing and personal financing. RecommendationOverall all our research about Public Bank Berhad and its competitors, Public Bank Berhad was performance very well in this 3 years. Especially when come to the year 2010, the profit before tax increases by 23. 0%. The Gr oups gross loans, advances and financing enter 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 pandemic in late 2008 and 2009 that endanger to push the global economy into a deep recession was generally contained through the concerted efforts of the worlds major government and central banks.