CIMB GROUP HOLDINGS BERHAD V.S. MALAYAN BANKING BERHAD - Kaya Plus (2024)
Malayan Banking Bhd (Maybank Bhd) and CIMB Group Holdings Bhd (CIMB Bhd) are 2 of the largest banks in Malaysia. Both banks are also listed on the mainboard of the Kuala Lumpur Stock Exchange (KLCI) mainboard, which provides us with the opportunity to be the owners of them!
Banks have been proven to be a favourite component of a dividend investor’s portfolio due to their advantageous business model of earning interest income by lending money. The bulk of its asset is usually based on cash and very liquid derivatives (e.g. bonds, high-interest bearing investments and savings, investment in stable blue-chip companies).
So the next question Malaysians tend to ask is, which of the 2 banks is better?
Let’s take a look at them on a head to head battle!
Gross revenue of Maybank Bhd is approximately 2 times of CIMB Bhd. Although being the second largest bank in Malaysia, we do see there is a big gap for CIMB Bhd to cover if it were to surpass Maybank Bhd in terms of gross revenue.
Looking at the Net Interest Margin (NIM) between both banks, Maybank Bhd has a NIM % of 52.05% while CIMB Bhd is closely behind with 51.87%. By comparing the NIM % of both banks, we are confident that both of the biggest banks have quite a close NIM %, in which if either bank continues to lower their interest expense would surely boost their NIM % significantly.
Operating profit-wise, Maybank Bhd has achieved approximately RM 10.8 billion while CIMB Bhd is at approximately RM 7.2 billion. The operating profit gap between Maybank Bhd and CIMB Bhd is significantly closer than the revenue gap, due to the fact that CIMB Bhd has lower overheads expense compared to Maybank Bhd.
Revenue streamwise, we notice that Maybank Bhd has multiple income streams, compared to CIMB Bhd
CIMB Bhd is very heavily reliant on interest income, contributing to more than 71% of total gross revenue. Maybank Bhd, on the other hand, has multiple streams of income from its Etiqa and Takaful insurance segment, investment accounts. Interest income contributes to 49% of gross revenue. A bank’s NIM is heavily connected to Bank Negara’s Overnight Policy Rate (OPR), the interest rate at which a depository institution lends immediately available funds (balances within the central bank) to another depository institution overnight. Having a myriad of multiple income streams not attributable to the interest rate will protect a bank’s earnings from potential fluctuating OPR.
Dividends wise, CIMB Bhd’s total dividend for the year 2018 was RM0.25 per share, while Maybank’s Bhd dividend for the year was RM0.55 per share. Comparing the dividend yield at the time of writing, CIMB Bhd has a trailing dividend yield of 4.18% per annum while Maybank Bhd has a trailing dividend yield of 6.6% per annum. Both banks actually have decent dividend yield with of course Maybank Bhd showing a greater yield.
Both banks are also currently valued at a Price to Earnings ratio of a region of 10-12x. Maybank Bhd, given its status as the biggest bank and with more income stream, holds a more premium PE at 12, while CIMB is closely behind with a PE of 10. So it’s up to investors to decide whether they would opt for a lower PE and lower dividend yield CIMB Bhd or higher PE and higher dividend yield Maybank Bhd.
Both banks show consistent and year-on-year revenue growth trends. Even though being stable blue-chip companies, CIMB Bhd and Maybank Bhd still show growth in their businesses. Banking is an essential need and requirement in our lives, so we are positive that Maybank Bhd and CIMB Bhd are here to stay, running their businesses day in day out like clockwork.
Profit attributable to shareholders also increases in tandem with revenue growth. From the trend, we are certain that as revenue grows, the profits too will also trend upwards. Historical cash dividend paid out for CIMB Bhd saw a huge dip in the year 2013, where CIMB Bhd decides to provide an option for shareholders to reinvest around 50% of their dividends into shares at a discount under the Dividend Reinvestment Plan (DRP). Maybank Bhd on the other hand also does offer DRP but at a lower apportioned rate. Hence the cash dividends paid out is on a steady rise as compared to CIMB Bhd.
If you are a dividend investor, Maybank Bhd and CIMB Bhd would definitely be good components in your portfolios, given their track record and size in the banking industry. Not only are they active in their home country Malaysia, but both banks also have huge presences in South East Asia too.
We hope we have provided a simple comparison between both of Malaysia’s biggest banks to help you kickstart a more thorough analysis and comparison between the 2 banks to find out the most ideal addition to your portfolio!
Which bank is your favourite? Or are there any other banks in your mind that you think could be a better investment than Maybank Bhd and CIMB Bhd? Let us know in the comments section below!
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Draw Since Maybank is everywhere, it is more convenient. However, these two banks are considered popular in major malls, so not really a problem. On the other hand, when comes to transferring, CIMB has higher default daily limit (RM3,000) whereas Maybank is (RM1,000).
Kuala Lumpur: CIMB Bank has been named the Best Retail Bank in Malaysia in The Asian Banker's Global Excellence in Retail Financial Services (RFS) Awards 2023.
Maybank2u is the Maybank online banking service. In the old version of the Maybank app, there was a MAE account option. However, there's also now a whole MAE app which makes all the functions offered to preexisting MAE customers available to anyone.
Malayan Banking Berhad (doing business as Maybank) is a Malaysian universal bank, with key operating "home markets" of Malaysia, Singapore, and Indonesia.
CIMB Bank. CIMB Bank is the Group's commercial bank in Malaysia with 217 branches across the country. It has subsidiaries in Thailand, Cambodia and Vietnam, as well as branches in Singapore, the Philippines, London, Hong Kong, Shanghai and Laos and representative offices in Yangon and Mumbai.
CIMB Islamic is the Islamic banking and financial services franchise of the Group with an extensive suite of innovative Shariah-compliant products and services.
As a large and trusted bank, CIMB has some strong options for both current and savings accounts, including some accounts you can open as a foreigner in Malaysia.
CIMB Bank is regulated by the Bangko Sentral ng Pilipinas and is a proud member of the Philippine Deposit Insurance Corporation. Through the bank's affiliation with these institutions, you can be sure that your money is in safe and secure hands.
Grow your savings with our high interest rate of 2.5% p.a. FREE Life Insurance coverage of up to PHP 250,000 by just maintaining a minimum average daily balance of PHP 5,000. ZERO fees, ZERO monthly premium, and no medical check-up required!
Maybank New York has been in operation since 1984 and is licensed by the New York State Banking Department to undertake domestic commercial banking and offshore banking activities.
As mentioned earlier Maybank has two major weaknesses namely focusing mainly on Malaysia and Singapore and revenue only generated from retail banking and Islamic banking products and services.
Yupangco Group of Companies is a corporate group established in 1968. They are involved in developing innovative products and services in various sectors such as finance, real estate, motor, music, and tourism.
It ranked top in the Dealogic Malaysia equity capital markets league tables, with a 26% market share, completing four of the top five local equity deals while ranking second in debt markets league tables. It also executed key regional initial public offerings and placements in 10 sectors across key ASEAN markets.
The acquisition of BankThai strengthened CIMB Group's universal banking platform across major ASEAN markets – Malaysia, Indonesia, Singapore and Thailand – and made the Group's retail network the widest in ASEAN, with over 1,100 branches.
The good news is that PayPal and CIMB can be used together - although you might need to take an extra step with CIMB to get started. Usually if you have hit a problem with your PayPal it'll be because you need to activate your CIMB card for online shopping.
If you need to you can also receive SWIFT payments into your account in EUR, USD, and GBP. It's free for EUR and GBP - but there's a small fee for receiving USD via SWIFT.
Some options for international banking include: Citibank, HSBC and J.P. Morgan. Consider the features and benefits of each bank and compare them to your needs to choose the best bank for you.
Two U.S. banks have representative offices in the country: Wells Fargo Bank and Bank of New York Mellon. Reflecting a long history of economic and political ties, all commercial banks in the Philippines have correspondent U.S. banking relationships.
CIMB Bank Philippines is an issuer partner of Visa. The Visa debit card allows CIMB Bank customers to perform ATM withdrawals, make in-store purchases, and transact online locally or overseas.
In case of Murabaha, the bank sells an asset and charges profit which is a trade activity declared halal (valid) in the Islamic Shariah. Whereas giving loan and charging interest thereupon is pure interest-based transaction declared haram (prohibited) by Islamic Shariah.
Yes, it is possible to open a bank account in Malaysia as a non-resident. You just need to provide the necessary paperwork, which as you see, does not require proof of address in Malaysia. If you choose a foreign bank, you can even start the process from abroad.
To open a bank account as a non-resident, you'll usually need the following documents¹: Proof of address with contact information and personal details. Two forms of ID — Passport and government-issued ID or valid driver's license. Social Security number or Individual Taxpayer Identification Number.
Comparing between Public Bank with Maybank and CIMB BankMaybank and CIMB Bank is the main competitors of Public Bank as Maybank isat ranking of number 1 in Malaysia while CIMB Bank is at the ranking of number 2 in Malaysia. Public Bank is at last rank which is at number three.
Hong Leong Bank offers a range of international banking services, including foreign currency accounts, foreign currency fixed deposits, and foreign currency loans.
In most cases, it's safe to share your bank account number with: Tax filing services to pay for or receive annual tax credits. Your employer to set up direct deposit for recurring paychecks. Online payment and money transfer services such as PayPal or Zelle to deposit funds into your account.
Better Budget Management – Having two accounts or more allows you to do better budgeting. Upon receiving your paycheque in your account, you could transfer out a portion and leave it in another account as savings. This way, you are less likely to overspend and dip into your savings.
Each bank has a unique SWIFT code. It usually consists of 11 characters divided into four groups: first, four letters to identify the bank; second, two letters to identify the country; third, two letters to indicate the bank's location; and fourth (which is optional), three digits to specify the receiving branch.
Some banks use the same SWIFT code for all their branches while other banks designate a unique SWIFT code for each branch. If you are unsure of which code to use, you can typically use the bank's head office SWIFT code to send money.
CIMB Bank is the Group's commercial bank in Malaysia with 217 branches across the country. It has subsidiaries in Thailand, Cambodia and Vietnam, as well as branches in Singapore, the Philippines, London, Hong Kong, Shanghai and Laos and representative offices in Yangon and Mumbai.
Using Maybank to receive money from overseas - how long does it take? The time it takes to receive your payment from overseas all depends on where the money is coming from, and which bank is sending it. It's likely though that the transfer will be made via the SWIFT network.
The SWIFT code for Malayan Banking Berhad (Maybank) is MBBEMYKLXXX. Please bear in mind that Malayan Banking Berhad (Maybank) uses different SWIFT codes for the different types of banking services or branches. Kindly check with your recipient or with the bank directly to find out which one to use.
Maybank al Twitter: "@intansyahira_IS We do not use IBAN for international transfer. We only require swift code which is MBBEMYKL for transaction." / Twitter.
Introduction: My name is Francesca Jacobs Ret, I am a innocent, super, beautiful, charming, lucky, gentle, clever person who loves writing and wants to share my knowledge and understanding with you.
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