Maybank keeps its KPIs for 2021 despite latest MCO, unveils new roadmap

KUALA LUMPUR: Malayan Banking Bhd (Maybank) has kept its key performance indicators (KPIs) this year in tact despite the reimposition of the Movement Control Order (MCO).

Maybank’s KPIs include net credit charge of 70-80 basis points (bps) and return on equity (ROE) of nine per cent.

The country’s largest bank also unveiled its next five-year strategy codenamed M25 to accelerate growth and entrench its position among the leading financial services groups in the region.

Maybank group president and chief executive officer Datuk Abdul Farid Alias said it had factored in the possibilities of another movement restriction, as well as adjusting better to it than before.

“In the announcement of our results earlier, we mentioned that the RM4.6 billion provisions that we made on the loans (in 2020), most of it was done on the basis of macroeconomic variables, which is basically to prepare Maybank to the eventual possibilities that there will be impairment coming into 2021.

“That is why the level of provisions was heightened in 2020 compared to 2019. From that perspective, the MCO that we are seeing right now is consistent with what we have anticipated last year,” he told reporters after Maybank’s 61st annual general meeting today.

“Even during the previous MCO, we have a high percentage of over 70 per cent of the economy open, compared with the first MCO last year of 30 per cent. We are adjusting to this better than before,” Abdul Farid added.

As for its M25, the blueprint follows the completion of the previous Maybank 2020 Plan last year, which was crafted against the backdrop of recent emerging macroeconomic, social and technological trends.

M25 sets out the group’s roadmap and strategy for the next five years up to 2025.

Abdul Farid said Maybank had set its desired long-term outcomes of achieving an ROE of between 13 per cent and 15 per cent, a cost-to-income ratio of below 45 per cent, earnings per share of more than 100 sen and delivering a dividend payout ratio of 40-60 per cent on a net cash basis by 2025.

M25 would be critical in accelerating growth for Maybank in the ‘next normal’ with specific focus on executing outcome driven projects that will make a difference.

“We have set clear targets that will guide us in meeting our strategic priorities under this plan and we will be tracking our progress throughout this journey to ensure we stay on course.

“At the same time, we will continue to explore new ways of working and drive innovation with differentiated products and services, to provide world class customer experience,” he added.

Source: NST