Maybank

Maybank’s share price performance for the first quarter of 2017 began on a strong note, registering an upside gain of 8.78%. The expansion was on par with the performance of the Bursa Malaysia Finance Index (BM Finance Index) of 8.88%, while surpassing the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) of 5.99%. The uptrend was primarily buoyed by the Group’s resilient financial performance in the last quarter of FY2016 which came in line with expectations, coupled with our final dividend declaration in late February 2017.

The gains in the second quarter continued with Maybank’s share price increasing 7.96% against the rise seen in the BM Finance Index and FBM KLCI of 7.07% and 1.36% respectively, mainly attributed by foreign fund inflows into Malaysian equities. The improved sentiment was spurred by robust economic growth of 5.6% for 1Q FY2017, better corporate earnings and investor perception of an undervalued ringgit.

In the third quarter, concerns over the US-North Korea geopolitical tension dampened general investor sentiment, causing a slowdown in buying interest. This affected the indices and Maybank, which slid 1.04% against the decline seen in the BM Finance Index of 1.95% and the FBM KLCI of 0.46%.

For the final quarter of 2017, Maybank’s share price improved by 2.83% on the back of positive market sentiment boosted by firmer oil prices and the strengthening of the ringgit against the US dollar. The FBM KLCI and BM Finance Index also rebounded by 2.35% and 2.56% respectively.

Maybank's share price closed 2017 at RM9.80, recording a significant increase of 19.51% YoY, ahead of the growth seen in both the FBM KLCI of 9.45% and BM Finance Index of 17.23%.

Maybank Share Price and Volume Performance in 2017

Relative Performance of Maybank Share Price vs Benchmark Indices

Share-Related Key Figures

Total Shareholder Return

Long-Term Total Shareholder Return

Maybank’s share price gain of 7.38% during the first quarter of 2016 surpassed gains made by both the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) and the Bursa Malaysia Finance Index (BM Finance Index) of 1.48% and 4.29% respectively. The increase in share price was partly contributed by the Group’s higher FY2015 net profit announced in late February 2016 and the final dividend declaration.

Although hitting an all-year high of RM9.17 on 15 April, Maybank’s share price performance came under pressure in the second and third quarters of 2016 due to internal and external factors. Internally, Maybank undertook a proactive management of asset quality at the start of FY2016 due to the overall weaker operating environment. This entailed restructuring and rescheduling (R&R) borrowers’ facilities to match their weaker cashflows to their repayment abilities. Under Bank Negara Malaysia’s ‘Classification and Impairment Provisions for Loans/Financing’ guideline, R&R accounts need to be impaired and can only return to performing status after six months of continuous good conduct. These impairments resulted in an increase of Maybank’s credit costs for 1H FY2016. This was partly the reason Maybank’s share price declined 9.76% and 7.86% in the second and third quarters respectively.

Externally, softness in our prices, volatility in currency markets and increased uncertainty in global geopolitics resulted in the local benchmark and the finance index ending lower. For the second quarter, the FBM KLCI declined 3.70% while the BM Finance Index slid 3.80%. The downtrend continued into the third quarter, albeit at a much slower pace. The FBM KLCI was marginally lower by 0.09% while the BM Finance Index shed 0.35%.

In the final quarter of 2016, Maybank’s share price performance rebounded by 9.33% on the back of normalising credit costs by the Group for its 9M FY2016 financial performance. The BM Finance Index also saw a rebound by 1.59%. However, the local benchmark ended lower by 0.65% in 4Q on lingering geopolitical uncertainties and in anticipation of a rate hike in the US by the Federal Reserve.

Maybank closed 2016 lower by 2.38% at RM8.20, slightly ahead of the FBM KLCI’s decline of 3.00% but behind the gain of 1.58% seen in the BM Finance Index.

Maybank Share Price and Volume Performance in 2016

Relative Performance of Maybank Share Price vs Benchmark Indices

Share-Related Key Figures

Total Shareholder Return

Maybank’s Historical Share Price Performance and Key Events

Long-Term Total Shareholder Return

Maybank’s share price movement for the first quarter of 2015 lagged both the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) and the Bursa Malaysia Finance Index (BM Finance Index), raising 1.74% compared to a gain of 3.95% and 3.38% for the FBM KLCI and BM Finance Index respectively due to concern in the delay of debt repayment by 1MDB, which was eventually repaid in February.

The share price rose to a year high of RM9.55 on 7 and 8 April while the FBM KLCI and BM Finance Index both hit their year high on 21 April at 1,862.80 and 16,530.88 respectively. However, the global equities selldown, triggered by prolonged crude oil price weakness and the weakening Ringgit, caused the market to decline in the second quarter with Maybank losing 2.04% against sharper declines by the FBM KLCI and BM Finance Index at 6.78% and 4.94% respectively.

The third quarter saw an even sharper market decline with losses of 6.35%, 5.02% and 9.84% for Maybank, the FBM KLCI and the BM Finance Index respectively due to similar sentiment seen in 2Q coupled with uncertainty over the start of US Federal Reserve’s interest rate hike. Maybank’s share price was at RM8.19 when the market fell to the year low on 24 August with the FBM KLCI at 1,532.14 and the BM Finance Index at 13,675.61, down 13.01% and 12.92% from the end of 2014.

The market recovered slightly in the fourth quarter, with the FBM KLCI and BM Finance Index rising 4.41% and 1.76% respectively but Maybank’s share price remained sluggish, declining to its year low of RM8.18 on 18 November and 15 December, down 10.80% from the end of 2014, and traded sideways within the RM8.20 to RM8.50 in the final two months of the year. Maybank closed the year at RM8.40, which was 8.40% lower than the previous year while the FBM KLCI and BM Finance Index declined 3.90% and 9.84% respectively.

Maybank Share Price and Volume Performance in 2015

Relative Performance of Maybank Share Price vs Benchmark Indices

Share-Related Key Figures

Total Shareholder Return

Maybank’s Historical Share Price Performance and Key Events

Long-Term Total Shareholder Return

• Maybank’s share price movement for the first two quarters of 2014 was in line with the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) and the Bursa Malaysia Finance Index (BM Finance Index), declining 2.62% in the first quarter followed a 1.55% gain in the second quarter.
• However, after the FBM KLCI hit its all-time high of 1,892.6 on 8 July, it began to decline on the back of falling global oil prices. Maybank’s share price held up for another two months to hit its peak of the year at RM10.16 on 4 September before it also succumbed to concerns over softer corporate earnings, lower ringgit, falling oil prices and weak economic outlook given Malaysia is an oil exporting country. This in turn weakened external sentiment and raised on-going concerns of Malaysia’s fiscal challenges and vulnerability to foreign fund outflows.
• Although for the third quarter Maybank still managed to record a 1.32% gain, the downtrend that began in September accelerated in the fourth quarter of the year as oil prices continued to plunge to below USD60. On 16 December 2014, Maybank’s share price, FBM KLCI Index and the KL Financial Index all hit their 52-week low of RM8.29, 1,673.94 points and 14,857.75 points before rebounding at the year end to close at RM9.17, 1,761.25 points and 15,704.35 points respectively.
• At the close of 2014, Maybank’s share price was 7.7% lower than at the end of last year while the FBM KLCI and BM Financial Index also recorded a losses of 5.7% and 7.4% respectively.

Maybank Share Price and Volume Performance in 2014

Relative Performance of Maybank Share Price vs Benchmark Indices

Total Shareholder Return

• Total Shareholder Return (TSR) is the measure of our enhancement of shareholder value that measures total return arising from capital gains (share price increase) and dividends.
• Despite the weaker equity market for 2014, which saw Maybank shares registering a greater decline than the benchmark indices, Maybank outperformed both indices with a TSR of -2.49% which was 0.13% better than the FBMKLCI and 1.33% higher than the BM Finance Index.

Maybank Long Term Share Price and Volume Performance

Share Related Key Figures

• In 2013, Maybank’s share price movement largely moved in tandem with the FBMKLCI Index. Maybank’s share price hit a high of RM10.74 on 24 July 2013, driven by sustained buying interests in the second quarter of 2013. Meanwhile, the Malaysian stock market ended 2013 on a positive note, with the FBMKLCI Index reaching its high of 1872.52 points on 30 December 2013.
• Maybank’s share price rose 10.1% from RM9.03 on 2 January 2013 to RM9.94 on 31 December 2013. This was in line with the full-year increase seen in both the FBMKLCI Index (11.5%) and KL Finance Index (11.2%).
• The local bourse’s performance was lacklustre for the first quarter of 2013, as investors took a cautious stance and pared down their stock holdings while buyers stayed on the sidelines in anticipation of the 13th Malaysian General Election (GE). The FBMKLCI Index hit a low of 1613.33 points on 20 February 2013, a day after Maybank slipped to its lowest price of RM8.84 for 2013.
• Although market conditions remained challenging for the region moving into the second half of 2013, local market sentiment improved as investment spending and corporate activity picked up on the back of greater visibility post GE.

Total Shareholder Return (TSR)

• TSR is the measure of our enhancement of shareholder value that measures total return arising from capital gains (share price increase) and dividends.
• Maybank recorded a TSR of 14.30% for 2013 compared to 14.11% for the FBM KLCI and 15.09% for the Bursa Malaysia Finance Index

Maybank Share Price versus Benchmark

Maybank Share Price and Volume Performance