I.

Company Profile

A. History
Maybank was founded by Malaysian business tycoon Khoo Teck Puat, who died in 2004. The
company was led by President and CEO Amirsham Abdul Aziz from 2002 until March 2008 after
which he was appointed Minister in the Prime Minister's Department in-charge of the Economic
Planning Unit, a post he held until April 2009. Dato' Sri Abdul Wahid Omar was President & CEO of
Maybank Group from May 2008 to June 2013. On 2 August 2013, Datuk Abdul Farid Alias,
Maybank's Deputy President and Head of Global Banking, was appointed as President & CEO of
Maybank Group.
Timeline
1960 The bank was formed and founded by Malaysian business tycoon Khoo Teck Puat with a
few partners in Kuala Lumpur. The bank grew rapidly to more than 150 branches within 3 years.
In 1963, the bank purchased Good wood Park Hotel, Singapore for $4.8 million.
1964 The company established Mayban Trustees Bhd (MTB)
1965 Khoo Teck Puat was ousted from Maybank by the Government of Malaysia under the
then Deputy Prime Minister Tun Abdul Razak's administration on the pretext of pumping the
bank's money into his own private firm in Singapore.
1973 Forming its own investment banking subsidiary, Aseambankers Malaysia Berhad (Asian
& Euro-American Merchant Banking (Malaysia) Berhad)
1975 Aseambankers establishment of a joint venture, Kota Discount Berhad, in partnership
with a group of Kuala Lumpur-based investors
1986 Acquired a majority stake in Kota's which renamed to Mayban Discount Berhad in 1989
1987 Maybank Securities Sdn Bhd set up to provide stockbroking and other investment
services
1990 The new Malaysian Offshore Banking Act passed and the bank set up new operations in
the Federal Territory of Labuan
1990 Maybank Unit Trust Berhad has been added, a subsidiary focused on the management
of unit trust funds
1992 Maybank launched Maybank General Assurance Bhd
1993 Acquisition of Safety Life & General insurance Sdn Bhd then re launched as Maybank
Life Assurance
1994 Set up a subsidiary in Papua New Guinea, which opened 2 branch offices in Port
Moresby and Lae
1995 Entered a joint-venture with PT Bank Nusa Nasional (Indonesia), bringing the Maybank
name to the Indonesian market
1997 Joined forces with Philippine National Bank, acquiring 60 percent stake of the
former Republic Savings Bank
1997 Renamed its new subsidiary Maybank Philippines Inc. (MPI) which later gained full
control of the enterprise
1997 Acquired through Philmay Holding Inc. and establishment of the real estate and property
development vehicle Philmay Property Inc.
2000 Maybank Philippines Inc. (MPI) network boasted nearly 60 branches across the
Philippines
2000 Merger completed with the Pacific Bank and the Phileo Allied Bank after Malaysian
Government directive.
2000 the corporate cracked the world top 120 banks for the first time
2001 Opened a branch office in Shanghai after gaining a lisence in China
2001 Applied for a license to begin operations in Bahrain
2002 Launched of Maybank Takaful Bhd begin promoting Takaful insurance products.
2004 Failed in a bid to take over Bank Permata of Indonesia
2005 Finally received approval to launch a takeover bid, through its Aseambankers subsidiary,
of BinaFikir Sdn Bhd. However, this deal had fallen through by the end of 2005.
2005 Acquired, via the Insurance Company Maybank Fortis, MNI Insurance and Takaful
National
2006 Maybank acquired American Express' card business in Malaysia
[5]

2007 (Nov) MNI Insurance and Takaful National were rebranded as Etiqa Insurance & Etiqa
Takaful respectively. Subsequently, Maybank Takaful transferred all its business, assets and
liabilities to Etiqa Takaful.
2008 (May) Dato' Sri Abdul Wahid Omar, is officially appointed as President & CEO of
Maybank Group.
2008 Completed the acquisition 15% in An Binh Bank (Vietnam), 20% of MCB Bank Ltd
(Pakistan) and 97.5% of Bank International Indonesia (BII).
2009 (January) Renamed its subsidiary Aeambankers to Maybank Investment Bank.
2009 Raised RM6 billion in equity capital through a 9-for-20 rights issue at RM2.74.
2010 Introduced a Dividend Reinvestment Plan, the first Malaysian company to do so.
2011 Acquired 44.6% of Kim Eng Holdings Limited.




B. Organizational Structure

C. Industry Standing
In 2012, our three home markets in Malaysia, Singapore and Indonesia contributed 91.2% of total
Group PBT on the back of strong economic fundamentals and domestic growth drivers including
consumer spending and infrastructure investments. In Malaysia, where we have the largest
distribution network, our strategy is to lead industry growth and ensure balanced growth across all
key sectors. In Singapore, our long standing presence has enabled us to form strong relationships
with our clients, and our service levels are consistently recognized by the industry. In Indonesia, we
are encouraged by the traction that we see arising from the ongoing transformation program, and as
we expand our distribution network, we seek to grow in line with the industry. Our growth, however,
will continue to be predicated on being able to grow profitably and responsibly, and to be able to
conduct our activities in line with our mission of humanizing financial services.
Malaysia
Malaysia remains the core domestic market for the Maybank Group, with 63.3% of Group gross
loans originating from this market and contributing 69.8% of Group PBT. The domestic loan portfolio
is well balanced between consumer and non-consumer segments. As at end 2012, 54% of the
domestic portfolio comprised consumer loans, while corporate loans made up 32% and the
remaining 14% were SME and Business Banking loans.
Our leading position in the overall loans and deposits markets is supported by a sizeable domestic
franchise made up of 26,473 employees, 401 branches and over 4,700 self service terminals and
mobile banking services.
In 2012, we achieved many milestones. We ranked first on the domestic league tables for M&As and
ranked second for domestic bonds. We also retained our lead in the Islamic banking market, with
Islamic loans contribution to total domestic loans up from 26.1% in 2010 to 30.6% in 2012. For 2013,
we expect GDP to remain strong at above 5.0% on the back of sustained demand and strong
investment. Given this stable economic growth, we expect industry loans to grow 10%-11% in 2013.
Singapore
Maybank operates one of Singapore's largest foreign banking networks, with 22 full service
branches and five offsite ATMs.
Despite more challenging market conditions in 2012, our operations in Singapore continued to
deliver profitable growth on the back of a 10.5% growth in loans. The loan portfolio was made up of
35% consumer loans and 65% commercial loans.
With the presence of Maybank Kim Eng, we are optimistic about the future growth potential. We are
also keen to further expand Islamic financing in Singapore and will introduce Shariah-compliant retail
financing and treasury solutions.
For 2013 we expect GDP to strengthen to an estimated 3.0% as external demand improves. Interest
rates are expected to remain low, and inflation to ease. On the back of this outlook, the industry loan
growth forecast is 9%-11%.
Indonesia
Since the acquisition of Bank International Indonesia (BII) in 2008, our operations in Indonesia have
progressed on the back of various transformation initiatives. In 2012, Indonesia's PBT increased to
Rp1.68 trillion. Indonesia's contribution now makes up 7.0% of total Group PBT and asset quality
continues to improve. Despite intense market competition, loans in Indonesia grew 21% from the
previous year, while deposits grew 22%. Loans and deposits growth was supported by an improving
franchise which includes 415 branches and 1,317 ATMs and CDMs.
Going forward, the Group remains focused on developing its business capabilities in Indonesia,
including consumer and wholesale banking financial services. Islamic financing will also be a focus
area. For 2013, Indonesia's GDP growth is expected to be above 6.0% supported by improving
macroeconomics, social developments and infrastructure investments. System loans growth is
expected to come in at 18%-20%.

D. Financial Statements



II. Cite one major marketing problem of the company (comprehensive case
analysis) using this format:
A. Introduction to the Case
Maybank tops the number one bank in Malaysia. It humanizes financial services across Asia.
Maybank is also one of the most growing banks here at our country specifically at my area (Imus
branch). Maybank has a good customer touch point or service but lack of human resource. As a
growing company it needs to improve their strengths and maximize its opportunities for them to
reach their goal. The case study is to identify the strategic issues faced by Maybank as well as to
discover the current strategies used by the Group. Analyzing the present performance and further
improve the performance of the Group need to be done accordingly through application of various
techniques, evaluation and action plan. Based on the result, recommendation will be made to further
enhance the credibility and ability of the Group. Profit is the major focus of why everybody struggles
to make sure their business going well as profit is the important sources of funds. This paper will
measure financial performance of Maybank Bhd and determinant of data by identifying the
profitability performance of Maybank Bhd. It is important to understand the profitability of commercial
bank after considering certain factors that may contribute to the profitability. The research is based
on the performance of Maybank from 2001 to 2010.

B. Time Context (What is the time period of your analysis? Eg. last three
years, next five years?)
After three years, Maybank has learned many lessons about executing a successful CRM
project. One of the most important success factors is executive sponsorship and consistent
governance, which was realized through the CRM Steering Committee. Company leaders
must have the foresight to commit to this kind of CRM journey, says Fadzil. When the
organization has leadership that is prepared to go the distance, the company can fulfill its
CRM vision, as Maybank has.

C. Viewpoint (You are viewing the problem from a role of a marketing
executive, the chief marketing officer, the CEO?)
In my opinion one of the main problems here is the inconsistency of the company which affects their
performance as putting and building relationship to their potential customers. Sometimes it lessens
the number of their clients who open for new accounts aside from that I think the company has a
slow service and lack of human resource specifically in our branch. There are only one teller in our
branch and another one in new accounts.

D. Problem Statement
Maybank is struggling to position their mobile banking service in the continuously changing industry.
The bank already has a mobile application but is evaluating if they should add more features to this
app and how this will affect their clients. Also there are many factors that contribute to bank
profitability. According to Bankers Journal Malaysia, for Malaysian Banks, more than 80% of their
total income is attributed to interest income. Previous studies have also found that interest income
and non-interest income have a positive effect on bank profitability. However besides those banking
characteristics of internal variables, there are some external variable that may affect the banks
profitability performance that cannot be overemphasized like inflation and GDP.

E. Objectives
The main objective of this study is to study the factors attributes to the profitability performance of
Maybank Bhd. comprises of interest income, non-interest income Gross Domestic Product (GDP),
and inflation rate. The study also will determine the profitability performance of bank for 10 years
period. Apart from that, there are few supporting objectives to support the main purpose were listed
below :

To study the relationship between internal variables and bank profitability.

To identify whether bank cost and bank revenues will contribute to
profitability performance of Maybank Bhd.

To determine which factors contribute the most to profitability of Maybank
Bhd.

To analyze the trend of Maybank profitability over 10years and
identify Maybanks strength and weaknesses using certain profitability ratios.

Maybanks mission is to humanize financial services across Asia, by providing access to financial
services to the people at fair terms and pricing, and to be always at the heart of the community.

Undisputed No.1 Retail Financial Services provider in Malaysia by 2015

Leading ASEAN wholesale bank eventually expanding to Middle East, China & India
Undisputed Insurance & Takaful leader in Malaysia & emerging regional player
Truly regional organization with ~40% of pre-tax profit derived from international operations by
2015
Global leader in Islamic Finance

F. Areas of consideration (SWOT)
Strength:
1. Largest bank in Malaysia in terms of number of branches
2. Has a customer base of more than 21 million
3. Has presence in 17 countries across the globe
4. Dividend yield is high when compared to industry and sector averages
5. Return on Assets (ROA) and Return on Equity (ROE) are substantially higher than the industry
and sector averages
6. Has a great customer friendly relationship compare to other banks
7. The highest grossing and number one ranked bank in Malaysia

Weakness:
1. Much of the banking operations are focused in and around Malaysia and Singapore, hence limited
global penetration
2.Much of the revenue comes from retail banking and Islamic banking, less revenue comes from
other offerings
3. Lack of human resource
4. Slow operating service
Opportunities:
1. High opportunity to expand into countries like Laos, once the bank gets the license to operate
2.High opportunity to grow in investment banking in Hong Kong
3.Growth in internet banking will increase the customer base

Threats:
1. Changes in economic policies in South East Asian countries will affect the bank significantly
2.Current macroeconomic scenario across the globe affecting the bank


G. Assumptions
There are 5 hypotheses in this study which are:
Hypothesis 1
H0: There is no significant relationship between inflation rate and bank profitability.
Hypothesis 2
H0: There is no significant relationship between GDP and bank profitability.
Hypothesis 3
H0: There is no significant relationship between Interest Income and bank profitability.
Hypothesis 4
H0: There is significant relationship between Non-Interest Income and bank profitability.

H. Alternative courses of actions (ACA)
Build much innovative techniques in relation to internet banking
Implement a quality management
Send a monthly report to analyze and to determine the banks profitability performance

I. Analysis of each ACA
Conducting strategical ways on how they can access digital banking more easier
Setting up a new structure which will include management and sales responsibilities
Generating financial statements that will identify banking revenues

J. Recommendation
1. New technology is needed in order to stay close with customers to make the transition from a
product-centric bank to a customer-focused organization. Maybank needed a new technology
solution that could strategically leverage the right customer information at the right time. A new CRM
system should provide the following function: Analyze and promote understanding of customer
behavior
Use data to predict and influence customer behavior

Conduct effective communications to improve customer acquisition, cultivation, retention, loyalty
and profitability
Creatively use multiple customer touch points as part of the business strategy, optimizing the
multi-channel, multi-step approach to reach customers

2. Event based marketing can improves the customer experience Maybanks analytical CRM
system includes an event-based engine, scanning significant customer transactions based on pre-
defined business rules and priority. With this structure, the marketing team can contact customers
when they are likely to be ready to make a decision that impacts their financial picture. This
approach also optimizes the time spent on customer contact by branch and call centre personnel.

3. Full campaign automation with channel reduce the waiting time Maybanks can implemented a
new CRM environment includes a full campaign automation process with channel integration,
providing an avenue to create business opportunities using cost-effective database marketing
practices. It also enables a closed-loop marketing process that supports campaign refinement.
Channel integration provides a concrete base to support single-step campaigns, as well as multi-
step, event-triggered, multi-channel communications, offering the fastest, smartest ways to
understand and create meaningful conversations with individual customers.

K. Action Plan
I think to be more effective Maybank must focus more on global penetration as well as maximizing
revenues. They have to be more aggressive in terms of customer behavior and create strategy that
will increase customer relationship and influence potential customers.






III. Appendices: Certification of Completion (Number of hours); Time card or
logbook (original or photocopy) for the whole OJT period.