E/F/28. Dissertation. Comparative Performance Analysis of Leading Malaysian Banks

After 97 financial crisis, Malaysian economic trends to regional and global. Banking industry was also affected by this trend. Malaysia started restructuring its rickety banks into a few sturdy, competitive ones. The bank consolidation started from year 2000, the number of Malaysian banking institutions has now come down to 10 anchor banking groups. Many banks face failure. This thesis is concerned with the operational performance of the leading banks (with emphasized in Malayan Banking BHD, RHB Bank, Public Bank, Southern Bank BHD and Bumiputra-commerce Bank BHD). Through this study, the scopes of research will include two ways to analyze the performance of the five leading banks and compare them in two methods. The two methods are traditional measure methods which include Return on Assets (ROA), Return on Equity (ROE), and Earning per share (EPS), payout ratio, and value-based methods which include Economic Value Added (EVA) and Market Value Added (MVA). This study will be mainly based on the annual reports of these banks. In an overall view, the five leading banks performances are normally good in trend. This is judged by looking at the ratio analysis and the indicators of Economic Value Added and Market Value Added. Finally, there are also a number of recommendations in the project. Recommendation is suggested for the bank investors how to improve shareholder value and how the banks obtain more market share.