CAMEL ANALYSIS

COMPONENT YEARS AVERAGE RATING

OF FIVE
2016 2017 2018 2019 2020 YEARS
CAPITAL 19.29 19.38 19.02 19.39 18.68 19.15 1
ADEQUACY
RATIO
ASSET 8.79 8.63 7.07 9.21 7.23 8.18 5
QUALITY
MANAGEMENT 36.53 40.85 37.95 32.81 33.10 36.24 1
EFFICIENCY
EARNINGS 1.29 1.20 1.60 1.57 1.25 1.38 1
CAPABILITY
LIQUIDITY 7.73 6.03 5.90 4.10 5.06 5.76 5
AVERAGE COMPOSITE RATING 2.6 (FAIR)

CAPITAL ADEQUACY RATIO

Based on Table 1, 19.15% of Maybank’s assets are financed by its capital. This shows that
Maybank are on par in terms of its resistibility to loan losses.
ASSET QUALITY
Asset quality is determined by one ratio which is non performing loans divide with loans and
advances. The table shows that the total loans of Maybank is in small amount, which is only
8.18% average in five years.
MANAGEMENT EFFICIENCY
Table 1 show that Maybank is efficient in managing its operating expenses as its ratio is
lower than 60%, which is only 36.24% average in five years. Maybank have managed to
maintain their interest expense or profit rate in relation to customers’ deposits.
EARNINGS CAPABILITY
Based on Table 1, Maybank recorded 1.38% profit rate from its business higher than 1% of
the component composite rating. This might be due to the nature of Maybank that offers a
comprehensive range of products and services that includes commercial banking, investment
banking, Islamic banking, offshore banking, leasing and hire purchase, insurance, factoring,
trustee services, asset management, stock broking, nominee services, venture capital and
Internet banking.
LIQUIDITY
The results show that the ratio of liquid for Maybank is only 5.76%. In other words, for
every RM 1 of total asset in Maybank, there is RM 0.0576 of liquid assets, which is lower
than 19.9% from the component composite ratings. From Table 1, we can see that Maybank
has low capacity to cover unanticipated deposit drain as the average liquidity ratio for five
years of Maybank is only 5.76%. This is means that for every RM 1 of customers’ deposits
taken, Maybank only affords to cover RM 0.0576 of withdrawals made by customers.