NAME : JANIREET KAUR

SUBJECT : STRATEGIC MANAGEMENT

CONTACT NO : 012-5206355

MODULE NAME : STRATEGIC MANAGEMENT

CLASS DATE : 20 /21-11-2010

DUE DATE : 23-01-2011

LECTURER NAME : MR. KOK SENG

1. COMPANY BACKGROUND

Malayan Banking Berhad or Maybank was incorporated in Malaysia on 31 May 1960 and
commenced operations on 12 September 1960. On 17 February 1962, Maybank was
listed on the then Kuala Lumpur Stock Exchange (today Bursa Malaysia). Maybank is
today among the top companies by market capitalisation on Bursa Malaysia.

Maybank is Malaysia’s largest financial services group with total assets exceeding
RM330 billion. The Group has an extensive global network of 1,750 offices in 14
countries namely Malaysia, Singapore, Indonesia, Philippines, Brunei Darussalam,
Vietnam, Cambodia, China, United Kingdom, U.S.A., Bahrain, Papua New Guinea,
Pakistan and Uzbekistan.

The Group offers a comprehensive range of financial services and products ranging from
commercial banking, investment banking, Islamic banking, cards issuance, offshore
banking, leasing and hire purchase, insurance, factoring, trustee services, asset
management, stock broking, nominee services, venture capital and Internet banking.
Today, the Maybank Group has over 40,000 employees who serve over 18 million
customers worldwide, with 9.5 million customers in Malaysia alone.

Maybank has been consistently ranked among Malaysia’s most valuable brands. It is also
ranked first among Malaysian banks by Brand Finance in its Global 500 survey and 118th
among the top 1,000 banks in the world by The Banker Magazine.
In 2008, the Bank established an Islamic banking subsidiary, Maybank Islamic, which
today is the leading Islamic financial services provider in Malaysia with 17% of Islamic
financing market share and is set to become a key player internationally.Having occupied
a stable and leading space in the Malaysian financial landscape for 50 years, the Group
is currently on the second wave of a transformation journey to further strengthen its
processes, systems and human resource capabilities. The objective is to offer unparalleled
products and services targeted at customer needs so as to secure greater leadership in
Malaysia and the region.

We focus on capturing growth opportunities in high growth while taking a proactive and
conservative approach to capital management by continuing to establish our presence in
high growth markets. Our strong track record of financial strengths and high credit
ratings allow us to keep our momentum and continue with robust performance even
amidst the current environment.

Profit After Tax >USD1 billion

Total Assets >USD100 billion

Human Capital >40,000 Maybankers Worldwide

Global Network >1,750 Offices in 14 Countries

Customers >18 million

By strengthening our core business and franchise, we gain competitive advantage by

achieving synergies across our diverse group. Domestically we aim to achieve leadership
across key and profitable segments. Internationally we capture value from new
investments and continue to pursue organic expansion by delivering innovation and
superior customer value. We are a top recruiter of talent and view our leadership
pool and talent pipeline as key to realising our aspirations. We constantly seek to enhance
performance management and achieve cost optimisation by focusing on effective IT
operations and enhancing employee productivity.

2. CORPORATE OBJECTIVES

The Company’s corporate objectives are to create and introduce financial protection
solutions for all Malaysian, respecting the needs of the Muslim community and service
quality demands of the whole society.

Maybank Malaysia Berhad to leverage on retail and corporate customer base to market its
products by complementing the Bank’s full range of financial/ banking solution with a
range of family (Life) Takaful and General Takaful products. To access the full Malaysia
market by establishing partnership with financial and other institutions, leveraging on the
quality and stability of the Maybank brand.
To build and innovative Takaful Company in malaysia that will offer international
standards with local characteristics using best practices and building on the Maybank
Group’s global activities.

The Board will continue to ensure good Corporate Governance to provide the requisite
leadership, policy, strategy and internal controls in order to continue to deliver and
sustain Maybank’s value propositions. This benefits our stakeholders while at the same
time ensuring continuing momentum towards reaching the Group’s aspirations to be a
leading regional financial services provider by 2015.

For Maybank, Corporate Governance is not a mere statement of compliance. We aim to

achieve and maintain the highest standards of business integrity, ethics and
professionalism across all of the Group’s activities.

Our Vision: To be a Regional Financial Services Leader

Our Mission: Humanising Financial Services from the Heart of ASEAN

3. EXTERNAL ANALYSIS

Team work

We work together as a team based on mutual respect and dignity.

Integrity

We are honest, professional and ethical in all our dealings.

Growth

We are passionate about constant improvement and innovation.

Relationship Building

We continusly build long term and mutual benefical partnership.

Excellence & Efficiency

We are committed to delivering outstanding performance and superior service.

Corporate Responsibility
The Group has over the years placed a priority on being a responsible corporate citizen
through various activities, initiatives and programmes, with the primary objective of
making a difference in the community, environment and human capital development. As
a responsible organisation, we embrace industry best practices in corporate governance
by promoting a culture of excellence, transparency, integrity and accountability in our
daily operations.

4. INTERNAL ANALYSIS

Responsibility

The Board acknowledges its overall responsibility for maintaining sound internal control
systems to safeguard the shareholders’ interest and the Group’s assets. It is of the view
that the internal control framework is designed to manage the Group’s risks within an
acceptable risk profile, rather than eliminate the risk of failure to achieve the policies,
goals and objectives of the Group. It can therefore only provide reasonable rather than
absolute assurance of effectiveness against material misstatement of management and
financial information or against financial losses and fraud.

The Board has in place an on-going process for identifying, evaluating, monitoring and
managing significant risks that may affect the achievement of business objectives. The
process which has been instituted throughout the Group is updated and reviewed from
time to time to suit the changes in the business environment and this on-going process
has been in place for the whole financial year under review.

Control Structure

The key processes that the Directors have established in reviewing the adequacy and
integrity of the system of internal controls.

Risk Management Framework

• The Board has established an organisation structure with clearly defined lines of
responsibility, limits of authority and accountability aligned to business and operations
requirements which support the maintenance of a strong control environment. It has
extended the responsibilities of the Audit Committee to include the assessment of internal
controls, through the Internal Audit (“IA”) function.
• The Board has also delegated the responsibility of reviewing the effectiveness of risk
management to the Risk Management Committee. The effectiveness of the risk
management system is monitored and evaluated by the Group Risk Management
function, on an on-going basis.
Internal Audit Function

• The Internal Audit function includes undertaking regular reviews of the Group’s
operations and their systems of internal control by performing regular reviews of the
business processes to examine and evaluate the adequacy and efficiency of financial and
operating controls and highlights significant risks and non compliance impacting the
Group. Where applicable, they provide recommendations to improve on the effectiveness
of risk management, control and governance process. Management will follow up and
review the status of actions on recommendations made by the internal and external
auditors. Audits are carried out on units that are identified premised on a risk based
approach, in cognisance with the Group’s objectives and policies in the context of its
evolving business and regulatory environment, taking into consideration input of the
senior management and the Board.

5. SWOT ANALYSIS

Malayan Banking Berhad, SWOT Analysis Company profile is the essential source for
top- level Company data information. Malayan Banking Berhad- SWOT Analysis
examines the Company’s key business structure and operations, and provides summary
analysis of its key revenue lines and strategy.

This Company report forms part of GlobalData’s ‘Profile on Demand’ service, covering
over 50,000 of the world’s leading companies. Once purchased, GlobalData’s highly
qualified team of Company analysis will comprehensively research and author a full
financial and strategic analysis of Malayan Banking Berhad including a detailed SWOT
analysis, and deliver this direct within two business days.

6. APPROPRIATENESS OF ITS STRATEGY / STRATEGIES

Leading Domestic Position.

Maybank is the number one bank in terms of reach, assets, loans, profit and market
capitalsiation, as well as being the leader in the fast-growing Islamic banking market. We
operate the most extensive branch and ATM network, and have the largest customer base.
Maybank is one of Malaysia’s most valuable brand names and enjoys strong shareholder
support and customer loyalty.

Geographic Diversification.
With a pan-Asia platform and a comprehensive portfolio of products and services,
Maybank is well diversified across geography and business units.

Growth oriented.
We are establishing our presence in high growth markets to capture growth opportunities
while taking a proactive and conservative approach to capital management.

Diversified operations.
By strengthening our core business and franchise, we gain competitive advantage by
achieving synergies across our diverse group.
Domestically we aim to achieve leadership across key and profitable segments.
Internationally we capture value from new investments and continue to pursue organic
expansion by delivering innovation and superior customer value.

Focused on talent management

We are a top recruiter of talent and we see our leadership pool and talent pipeline as key
to realising our aspirations.

Our Dividends
Maybank has a long-term dividend policy of a 40-60% dividend payout ratio based on
reported net profit attributable to shareholders. Find out more about our dividends

7. SUCCESS OF THE COMPANY IN ACHIEVING ITS CORPORATE

OBJECTIVES

Since our establishment in 1960, the Maybank Group has come a long way. In 1994,
Maybank became the first financial institution in the country to exceed the RM1 billion
profit mark. To date, we have more than four million deposit accounts and more than half
a million loan accounts. Through constant product innovation and visionary leadership,
we are now the largest financial services group in Malaysia. And the awards confirm our
achievements.
Maybank Group Awards
2010
Prime Minister's CSR Awards
Outstanding Work in Community & Social Welfare (Honourable Mention)
Outstanding Work in Workplace Practices (Honourable Mention)
Global Finance Magazine
Best Trade Finance Provider - Malaysia
Malaysian Business-CIMA Enterprise Governance Awards
Overall - Second Runner-up
CSR Category - First Runner-up
Malaysia Institute of Human Resource Management
HR Excellence Category (Gold Award)
o HR Innovation Category (Silver Award)
Malaysian Rating Corporation Berhad
o Top Lead Managers Award
(Jan-Jun 2010)
– No. 1 by Issue Count
– No. 1 by Issue Value
Asiamoney Private Banking Poll
o Best Domestic Private Banking in Malaysia
o Overall Best Domestic Private Bank in Malaysia
(Asset under management of US$1 million - US$5 million)
o Overall Best Private Bank in Malaysia
(Asset under management of US$5.01 million – US$25 million)
Credit Guarantee Corporation Malaysia
o Top SMI Supporter Award
o Best Financial Partner Award
Reader's Digest Trusted Brands Awards
o Bank Category - Gold Award
o Credit Card Issuing Bank - Gold Award
Association of Accredited Advertising Agents Malaysia / Malaysia's Most Valuable
Brands. Putra Brand
Awards 2010.
o Finance Gold Award : Maybank
8. YOUR ASSESSMENT OF FUTURE DIRECTIONS AND A REVIEW OF
THE STRATEGY / STRATEGIES

Maybank’s Corporate Responsibility (CR) initiatives are integrated into the Group’s
business model. Maybank is committed to being a responsible corporate citizen,
delivering a sustainable future for the ASEAN region. This is consistent with our vision
to become a leading regional company and our mission of humanising financial services
from the heart of ASEAN.

In achieving this goal, we anchor our Corporate Responsibility(CR) activities in four key
pillars of Community, Environment, Workplace and Marketplace.. This is better known
as ‘TIGER’.

Our 5-year aspirations:-

1. Undisputed No.1 Retail Financial Services provider in Malaysia by 2015.

2. Leading ASEAN wholesale bank eventually expanding further into Middle East, China
& India.
3. Domestic Insurance Champion and emerging regional player
4. Truly regional organisation, with ˜40% of pre-tax profit derived from international
operations by 2015
5. Largest Islamic bank in ASEAN

For Maybank, Sustainability means conducting our business in a way that enhances our
performance both today and over the long-term, contributing to the socioeconomic
development of the countries in which we operate. We continue to conserve the
environment, enrich the livelihood of the community, care for the development and
wellbeing of our employees and contribute to good governance. Eventually, we believe
that building a Sustainable Corporate Responsibility (CR) framework that fully integrates
with our business model will drive shareholder value and brand affinity.

At Maybank, we're guided by our Core Values of Teamwork, Integrity, Growth,

Excellence & efficiency and Relationship building. As an integral part of our daily
efforts, these values guide us in our pursuit for growth and excellence.

Any aspiration can come true with the right opportunity. At Maybank, we set our sights
on selecting the brightest minds to be part of our team. The search is on for inspired
individuals who are ready to go the distance with one of the leading financial institutions
in Malaysia. We offer you opportunities for growth and excellence to achieve a mutually
beneficial partnership and winning edge.

9. YOUR RECOMMENDATIONS (WITH JUSTIFICATIONS) TO THE

COMPANY

As a responsible organisation, we embrace industry best practices in corporate

governance by promoting a culture of excellence, transparency, integrity and
accountability in our daily operations.