BACHELOR OF ACCOUNTING (HONS) COURSEWORK Year 2012 MONTH DECEMBER 2012 Subject FIN4034 - ADVANCED FINANCIAL ACCOUNTING & REPORTING 1 Weightage 40% Submission Date WEEK 8 Regulations A. Late Submission...

Maybank Investment Analysis 1
Maybank Investment Analysis
Maybank Investment Analysis 2
Introduction:
Investment is one of the most important aspect that is needed which helps in fulfilling different
future needs of the investor. There are different assets in which an investor can invest so as to
have a future benefits from the required investment. Every investment entails an amount of some
risk which is associated. Investment helps in promising the return of the original amount along
with an adequate return. So, investment is very important as it helps in fulfilling different future
needs of the investor.
Investment is called as ‘the current commitment of dollars for a period of time in order to derive
future payments that will compensate the investor for (1) the time the funds are committed, (2)
the expected rate of inflation, and (3) the uncertainty of the future payments’ (Frank Reliey,
2008). An investor can be said a person who is making an investment an investor can be an
individual, a government body, or a corporation. Investments can be done in different stocks,
commodities, bonds, or real estate. The investor focuses on trading the known amount of dollar
in the current date with an anticipation of a getting a future benefit in the future.
In this report, we have taken into consideration to research about the Maybank, so have to decide
that whether it is viable to invest in Maybank or not.
Business Analysis:
Maybank is the largest financial services group in Malaysia. It is the largest commercial bank in
Malaysia. However, increasing competition and regulatory spending could affect the comapny's
financial performance. Maybank is the largest commercial bank in Malaysia and is indirectly
majority owned by the Malaysian government. stock broking, nominee services, venture capital
and Internet banking. The group has the largest banking network in Malaysia with 386 branches,
17 trade finance centers, 39 business centers, 37 share investment centers and 22 private banking
centers. The group can capitalize on its strong domestic network and large product range to fuel
its revenues and profitability.
Maybank Investment Analysis 3
In 2008, Maybank Islamic became a full-fledged Islamic banking subsidiary of Maybank.
Maybank Islamic is the largest Islamic financial services provider in Malaysia with total Shariah-
compliant assets of over MYR45 billion ($13.3 billion). Maybank commands 17% market share
in the Islamic. Maybank Islamic is also regarded in the industry as the leading Islamic bank in
the Asia-Pacific region and also one of the top 20 Islamic financial institutions in the world.
Apart from Malaysia, Maybank also offers Islamic banking services in Singapore, Bahrain, and
London. The group is also launched Islamic banking services in Indonesia in December 2010.
Thus the expansion of Islamic banking to other countries will increase the market share of the
group.
In recent years, a number of initiatives have been undertaken by The Association of Southeast
Asian Nations (ASEAN) member countries to facilitate a free market in the region. Six ASEAN
member countries (Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) could
reduce tariffs between them by 2007 as per an agreed program of tariff reduction, three years
ahead of schedule.
Four more member states are also likely to join by 2012. Once these barriers to entry are
removed and a free market established, economies of scale will be created, making large
investments economically viable. Singapore being a key member of ASEAN countries is likely
to see increased cross-border investment and trade. The bank could see its revenues grow on
account of increased demand for corporate and commercial loans and related services, once this
free market is established.
Corporate Governance at Maybank:
Corporate governance is considered as the decision making structure or process of the
organization which focuses on the monitoring and controls of the firm and management which
helps the company to achieve its set goals and objectives. The efficiency of the corporate
governance is based on the controlling agency problems that incurs between the management
and the shareholders of the company.
Maybank Investment Analysis 4
The corporate governance of the organization is based on resolving the conflicts that are faced by
the company. The company needs to be transparent in its approach and the information of the
same should be disclosed to the employees of the organization which will help in increasing the
efficiency of the company and its operations.
With a strong focus on the corporate governance of the organization the company will be able to
have a strong focus on increasing the efficiency and productivity of the company which will
helps in having a opportunistic behavior of the employees and will helps in increasing the
efficiency and the performance of the organization from the perspective of the company.
The adequate corporate governance of the company should be based on the having a strong
relations with the management and the employees and the shareholders of the company which
will help in increasing the working and the efficiency of the company.
The bank has a strong focus and existence of corporate governance across the organization. The
main objective of the organization is to enhance the shareholder’s value, and to increase the
confidence of the investors and establishing a strong trust in the customers which will help the
company to build and attain a strong competitive organization. With strong corporate governance
across the organization the company will be able to have a strong reputation and solid formation.
They have a strong focus on the corporate governance so as to ensure and provide requisite of
leadership, policy, strategy and internal control so as to attain a competitive edge and value
proposition of the organization.
Maybank Investment Analysis 5
The board of the bank has eleven board members who comprises of two executive directors and
nine non-executive directors. All the directors in the bank have equal responsibilities with which
they work in the organization. Apart from that so as to incorporate adequate governance in the
organization, the board focuses on reviewing the plan, managing the principal risk, reviewing the
internal control and integrity of the organization. They have a set ethics and code of conduct
according to which the company defines its working and practices. The principle brought
forward by the bank sets out the standards of the good banking practices which is followed by
the employees of the company. They focus on maintaining the practical and unbiased
relationship between the Maybank and its customers.
The audit committee of the bank focuses on reviewing different actions that are taken on the
different issues of internal control so as to maintain the integrity and effectiveness of the
company.
Maybank Investment Analysis 6
The company has a strong focus and aim to attain the highest standards of business integrity,
ethics and professionalism across its working.
They have a strong focus on code of ethics and code of conduct which forms the basis of their
working across the organization.
Corporate Social Responsibility:
Corporate responsibility is a term that is supplanting the term corporate social responsibility. The
‘social’ is increasingly being omitted in order to emphasize the (claimed) broader responsibilities
of business corporations, particularly their responsibilities with regard to the environment.
(Hopkins, M, 2003).
The desire to encourage, may require,...