'Public Bank Berhad\r'

' globe rely Berhad The semipublic rely Malaysia was founded in the grade 1966. The logo, in modern geometric design, is conceived from two organize octagons de noning the interior(prenominal) and international connections of the multitude. The interlocking of the two octagons also suggests security, force out and stability. As per the latest reports creation cashbox Malaysia is the bigheartedst interior(prenominal) rim in Malaysia after Malayan Banking Berhad. The open Bank Malaysia, in hurt of its market with child(p)ization, is the largest sens in Malaysia that is non linked with the Goernment.The expansion and hand of the Group argon symbolised by the edges of the octagons pointing outwards at motley directions. Additionally, the graphic formation of the two interlocking octagons also creates an â€Å"eye” of foresight of the organisation. Industry Of in the public eye(predicate) Bank Berhad macrocosm Bank Berhad is an industry attractor in hire se cure financing, home mortg develop financing and moneymaking(prenominal) lending to SMEs in Malaysia. The bank has a strong distri unlession network comprising 248 rise service branches in Malaysia and 109 overseas in Hong Kong, China, Vietnam, Cambodia, Laos and Sri Lanka. populace BankProduct Range Of humans Bank Berhad Public Bank Berhad in one of the leading providers of integrated pecuniary services in Malaysia. It primarily focuses on providing banking and monetary services. The bank is engaged in offering various financial products and services, which includes investment banking, commercial banking, wealth commission products, and Islamic banking services. Target Market Of Public Bank Berhad The whole Malaysian, Hong Kong, China, Vietnam, Cambodia, Laos and Sri Lanka. Aimed at providing customized banking services and products to individual customers in addition to fiddling commerce concerns.Consumer Groups The amount business areas of the Public Bank Group are co nsumer and sell commercial loans. Individuals and families can find a head for the hills of lending solutions to buy residential unit, vehicle or a consumer good. The bank offers home loan, car loan, passenger vehicle hire purchase financing and personalized loan at easy terms and conditions. The small and medium sized enterprises, as well, can find alter procedure here to apply for a commercial loan. Position of The Company In Relation To different Competitors Public Bank Berhad operates in the Commercial banks sector.This digest compares Public Bank Berhad with three otherwise companies: Malayan Banking Berhad (2011 sales of 18. 28 billion Malaysian Ringgits [US$5. 85 billion] of which 25% was Consumer Banking), Cimb Group Holdings Berhad (2010 sales: 16. 06 billion Malaysian Ringgits [US$5. 14 billion] of which 19% was Foreign Banking Ope), and AMMB Holdings Berhad (2011 sales of 5. 83 billion Malaysian Ringgits [US$1. 87 billion] of which 46% was sell Banking). Company | Sales(blns)| P/E| P/B| Mkt Cap(RMm)| Revenue(RM’000,000)| Public Bank Berhad| 10. 345| 13. 1| 3. 10| 45,067. 8| 10,523| Malayan Banking Berhad| 18. 278| 13. 0| 1. 90| 62,592. 67| 18,397| Cimb Group Holdings Berhad| 16. 059| 13. 5| 2. 07| 55,597. 16| 16,635| AMMB Holdings Berhad| 5. 831| 12. 2| 1. 69| 17,904. 26| 6,343| Market Capital Revenue proportionality For Public Bank | 2008| 2009| 2010| Current dimension| 120,700,000,000/34,789,000,000=3. 47| 137,600,000,000/41,835,000,000=3. 29| 156,500,000,000/45,911,000,000=3. 41| Quick proportion| 60,656,000,000/34,789,000,000=1. 97| 67,986,000,000/41,835,000,000=1. 63| 59,269,000,000/45,911,000,000=1. 29| Average age of inventory | unrealizable since PBB is non k nonty in trading.No inventories| out of the question since PBB is not involved in trading. No inventories| Impossible since PBB is not involved in trading. No inventories| Average accruement Period| Impossible since PBB is not involved in trading. No sales hence no receivables| Impossible since PBB is not involved in trading. No sales hence no receivables| Impossible since PBB is not involved in trading. No sales hence no receivables| Average profitment uttermost| Impossible since PBB is not involved in trading. No purchases| Impossible since PBB is not involved in trading. No purchases| Impossible since PBB is not involved in trading.No purchases| Total asset employee disorder| 10,500,307,000/196,163,106,000=0. 054| 9,715,568,000/271,136,154,000=0. 045| 11,035,597,000/226,328,976,000=0. 049| Debt dimension| (185,934,374,000/196,163,106,000)x100=94. 79%| (205,420,830,000/217,136,154,000)x100=94. 60%| (212,643,888,000/226,328,976,000)x100=93. 96%| age bet earned| 18,790,015,000/4,562,396,000=4. 12x| 17,068,609,000/3,316,609,000=5. 15x| 19,149,128,000/3,516,111,000=5. 45x| Gross simoleons leeway| (3,948,155,000/10,500,307,000)x100=37. 60%| (4,015,055,000/9,715,568,000)x100=41. 33%| (4,738,265,000/11,035,597,000)x100=42. 4%| Net emolumen t mete| (2,622,660,000/10,500,307,000)x100=24. 98%| (2,551,540,000/9,715,568,000)x100=26. 26%| (3,099,077,000/11,035,597,000)x100=28. 08%| ROA| (2,622,660,000/196,163,106,000)x100=1. 34%| (2,551,540,000/217,136,154,000)x100=1. 18%| (3,099,077,000/226,328,976,000)x100=1. 37%| ROE| (2,622,660,000/10,228,732,000)x100=25. 64%| (2,551,540,000/11,715,324,000)x100=21. 78%| (3,099,077,000/13,685,088,000)x100=22. 65%| Analysis Of Public Bank Performance liquidity dimension Current Ratio = Current assets/ trustworthy liabilities 2008| 2009| 2010| 120,700,000,000/ 34,789,000,000 =3. 7| 137,600,000,000/ 41,835,000,000 =3. 29| 156,500,000,000/ 45,911,000,000 =3. 41| The ratio is in the main used to measure the troupes ability to pay screen its short-term liabilities with its short-term assets. As we seen the party menstruum ratio for these 3 socio- economic classs, at that place are decreases from stratum 2008 to form 2009 but they increase back when bring forth to socio-economi c class 2010. These 3 course of studys accepted ratio is significant higher(prenominal) than the acceptable ratio. The acceptable ratio is 2:1 but for the public bank, the modern ratio are (2008 1 : 3. 47, 2009 1 : 3. 29, 2010 1 : 3. 41).These shows that the Public Bank is not using its resources as in force(p)ly as it could be. Public Bank should abridge its online assets so there are no excessive current assets. Quick Ratio = (current assets-inventories)/current liabilities 2008| 2009| 2010| 60,656,000,000/ 34,789,000,000 =1. 97| 67,986,000,000/ 41,835,000,000 =1. 63| 59,269,000,000/ 45,911,000,000 =1. 29| Quick ratio measures a friendships ability to meet its short-term obligations with its around liquid assets. The higher the spry ratio, the better the cast of the company. From the company 3 forms quick ratio, the quick ratio are (2008 1 : 1. 7, 2009 1 : 1. 63, 2010 1 : 1. 29) These shows that the company quick ratio is slightly higher than the a cceptable ratio that are 1:1. only if the quick ratio for the company are acquiring better socio-economic class to year. The company should reduce its current account to reach the desirable ratio that are 1:1. Activity Ratio Average age of inventory =(Average inventories/Cost of sales)x365 2008| 2009| 2010| N/A| N/A| N/A| Impossible to cypher since Public Bank Berhad is not involved in trading. No physical inventories are involved. Average gathering period = (receivables/sales) x365 2008| 2009| 2010|N/A| N/A| N/A| Impossible to compute since Public Bank Berhad is not involved in trading. No physical inventories are involved. Average payment period =(Payable/Cost of sales)x365 2008| 2009| 2010| N/A| N/A| N/A| Impossible to compute since Public Bank Berhad is not involved in trading. No physical purchases are involved. Total assets turn over= Operating revenue/total assets 2008| 2009| 2010| 10,500,307,000/196,163,106,000 =0. 054| 9,715,568,000/271,136,154,000 =0. 045| 11,035,597,0 00/226,328,976,000 =0. 049| Asset turnover measures a firms efficiency at using its assets in generating sales.The total assets turnover over for the 3 years, there are decrease in year 2009 but increases in year 2010. For each RM1 of assets for the year 2008, Public Bank only manage to commence RM0. 054 of sales. For the year 2009 and 2010, for each RM1 of the assets, Public Bank only generates RM0. 045 and RM0. 049 of sales. The sum up are worsen but there are increases for year 2010. This is because the company name higher arrive at margin, so they would have lower assets turnover. Financial Ratio Debt ratio=(Total liabilities/Total asset)x100% 2008| 2009| 2010| (185,934,374,000/196,163,106,000)x100=94. 9%| (205,420,830,000/217,136,154,000)x100=94. 60%| (212,643,888,000/226,328,976,000)x100=93. 96%| A ratio that indicates what proportion of debt a company has relative to its assets. The measure eats an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. Time use up Earned Ratio=EBIT/Interest 2008| 2009| 2010| 18,790,015,000/4,562,396,000=4. 12x| 17,068,609,000/3,316,609,000=5. 15x| 19,149,128,000/3,516,111,000=5. 45x| Ensuring interest payments to debt holders and preventing bankruptcy depends mainly on a companys ability to sustain earnings.However, a high ratio can indicate that a company has an inapplicable lack of debt or is paying down too a good deal debt with earnings that could be used for other projects. The rationale is that a company would yield great perishs by investing its earnings into other projects and acceptation at a lower cost of capital than what it is currently paying to meet its debt obligations. Analysis : The company have a high time interest earned ratio in this few year and the ratio keep increase. This suggests that this company is less weighed down(p) by debt expense and the company has no fuss in settling its interest expenses in the future.Profitabi lity Ratio Gross Profit Margin=Gross profit margin/Net sales 2008| 2009| 2010| (3,948,155,000/10,500,307,000)x100=37. 60%| (4,015,055,000/9,715,568,000)x100=41. 33%| (4,738,265,000/11,035,597,000)x100=42. 94%| The take in margin is not an slender estimate of the companys pricing strategy but it does give a good indication of financial health. Without an comme il faut gross margin, a company will be unable to pay its operating and other expenses and soma for the future. Net Profit Margin=(Earning to common stockholders/sales)x100% 2008| 2009| 2010| (2,622,660,000/10,500,307,000)x100=24. 98%| (2,551,540,000/9,715,568,000)x100=26. 6%| (3,099,077,000/11,035,597,000)x100=28. 08%| Net profit margin is the ratio of net profit to revenues a company’s pricing strategy and operating efficiency. authorise On Assets=(Earning to common stockholders/total assets)x100% 2008| 2009| 2010| (2,622,660,000/196,163,106,000)x100=1. 34%| (2,551,540,000/217,136,154,000)x100=1. 18%| (3,099,077,0 00/226,328,976,000)x100=1. 37%| Return on assets is an indicator of how profitable a company is relative to its total asset, the ratio measures how efficient management is at using its assets to generate earning. Return On Equity=(Earning to common stockholders/total uprightness)x100% 2008| 2009| 2010| 2,622,660,000/10,228,732,000)x100=25. 64%| (2,551,540,000/11,715,324,000)x100=21. 78%| (3,099,077,000/13,685,088,000)x100=22. 65%| Return on equity measures a corporations profitability by revealing how much profit a company generates with the money shareholders have invested. Analysis : Public Bank Berhad have a rattling high net profit margin and the profit increase from 24. 98% in year 2008 to 26. 26% in year 2009. When in year 2010, it rise to 28. 08% again. It’s mean this company generate 24. 98% in year 2008, 26. 26% in year 2009 and 28. 08% in year 2010 for every RM100 sales. Furthermore, the return on assets are in the high rate.In the year 2008, the ROA is 1. 34% and it decreased to 1. 18% in the year 2009. However, in year 2010 the ROA increases to 1. 37%. It’s because of Public Bank has expanded its self â€service impart such as Automated Teller Machines, go over Deposit Machines and Cash Deposit Terminals to 1,400 machines to serve its large customer base. The ROE for this company in year 2008 is 25. 64%. However it drops to 21. 78% in the year 2009. The ROE increases again in the year 2010 to 22. 65%. It’s mean this company is more qualified of generating cash internally. For the example, Public Bank Berhad is able to pay its shareholders the return he interest of 25. 64% in the year 2008. Conclusion The Overall of our research approximately Public Bank Berhad have a very good murder. The Public Bank group should search to tap all growth opportunities arising from the improving economic and business environment, with the aim of delivering superior shareholder shelter over the long-term. Retail consum er and commercial banking should remain the core focus of the Group. In consumer financing, the group should continue to kick upstairs home mortgages, passenger vehicle hire purchase financing and personal financing. RecommendationOverall all our research closely Public Bank Berhad and its competitors, Public Bank Berhad was performance very well in this 3 years. especially when come to the year 2010, the profit before impose increases by 23. 0%. The Group’s gross loans, advances and financing recorded strong growth of 13. 8% in 2010, with the Group’s domestic lending business growing 15. 6% during the year. However, Gross stricken loans ratio drop by 0. 03%. The financial epidemic in late 2008 and 2009 that threatened to push the ball-shaped economy into a deep recession was generally contained through the concerted efforts of the world’s major government and central banks.\r\n'