10 largest banks in Malaysia ranked
Presently, there are more than 20 commercial banks licensed by the Bank Negara Malaysia (BNM). Followings are the 10 largest banks in Malaysia according to their 2006 net profit. The figures were obtained from the National Union of Bank Employees, NUBE.
Please note that the revenues taken into account are only applicable for their respective Malaysia operation. As such, you will understand why Citibank is not at the top despite being one of the largest banks in the world. Few other foreign banks such as ABN Amro and Bank of America did not even make it to the list even though the profits for their group operation are well in excess of RM20 billion.
1. Maybank (Malayan Banking Berhad)
Maybank was incorporated in 1960 and today it is the largest financial group in the country, and famous for its yellow and black logo color. The bank has been topping the chart of the largest banks in Malaysia for many years despite being surrounded by a number of controversies including the surcharge issues and recently, the major picketing by its front line staff. Maybank also has strong operations overseas through 500 correspondences across many different regions. Jobs in Maybank cover multi facets of fields including finance, sales, business development & marketing and Information technology.
2. Public Bank
Public Bank is another successful local bank in Malaysia. Even though it does not have a strong brand like Maybank, it continues to record impressive financial results. NUBE reported that the Public Bank CEO’s annual income for the year 2006 was an astounding RM5.5 million, the highest among the major banks in this list. That equals to an average salary of RM15,000 per calendar day. From a small branch set up in 1966, the bank, which was founded by Tan Sri Dato’ Sri Dr Teh Hong Piow, has grown into a size of over 13,000 employees today. Public Bank’s services include commercial banking, hire purchase financing, credit cards, investment, share broking, unit trust management and many more.
3. CIMB Bank
Presently the best performing bank in Malaysia, the CIMB group continues to grow by means of portfolio expansion locally and overseas, as well as through mergers and acquisitions. In 2004 alone, CIMB accounted as much as 56% of the total value of mergers and acquisition activities in Malaysia. The success of the CIMB bank is much attributed to its founder and Group Chief Executive, Dato’ Nazir Razak, who received his schooling in England since he was 13. He is the son of Malaysia’s second Prime Minister, Tun Abdul Razak, and the younger brother of Dato’ Seri Najib Razak, the current Deputy Prime Minister of Malaysia. Under Nazir’s leadership, the CIMB staff are pushed to work hard but in the end they are rewarded with fat year end rewards and bonuses. CIMB is on the path of replacing Maybank as the largest bank in Malaysia.
The history of HSBC began in the 19th century when Hong Kong and Shanghai Banking Company Limited was established in Hong Kong to finance the growing trade between China and Europe. The main office was moved by the British to London in anticipation of the Japanese occupation in 1941. HSBC Bank Malaysia, which is now part of the HSBC Group, became the first foreign bank to incorporate their entity in Malaysia in 1994. However, their presence was much longer than that since the original Hong Kong and Shanghai Corporation entered the country some time in 1884, beginning its operation in Penang.
Citibank is a New York based financial institution and for long it has been ranked as the world’s largest bank. You are probably surprised to hear that the bank’s single largest shareholder is a Saudi Arabia citizen by the name of Prince Al-Waleed bin Talal. Al-Waleed is a member of Saudi royal family. Citibank began its operation in Malaysia in 1959 with the opening of their first branch in Jalan Medan Pasar, Kuala Lumpur. It became the first bank from the US to have entered the country. Recently Citibank was ranked 3rd in the 20 World’s Most Profitable Companies in 2007 as listed by CNN Money and Fortune.
6. Hong Leong Bank
The bank began its first operation as Kwong Lee Mortgage and Remittance company, based in Kuching, Sarawak and involved in the financial of the export commodities including peppers, rubber and other agro based products. Despite facing many difficulties during the war and recession periods, the bank survived and listed the company public under the name of Kwong Lee Bank in 1934. The bank went through different ownerships and controls until it was acquired by the Hong Leong Group, a group founded by one of the richest men in Malaysia, Tan Sri Quek Leng Chan. Subsequently, the bank was restructured and renamed Hong Leong Malaysia Berhad, HLBB.
7. Standard Chartered
Standard Chartered is a British bank based in London but having most of its revenue coming from the Asia Pacific operation, mainly the former British colonies, including Malaysia. The Malaysia operation started way back in the 19th century and Standard Chartered is considered one of the earliest banks established in the country. The bank currently employs more than 60,000 people worldwide serving its 3 core businesses, mainly Consumer Banking, Corporate and Institutional Banking, and Treasury. The bank has almost 30 branches operating nationwide.
8. OCBC Bank
OCBC Bank was established in Singapore, and is the first ever bank to operate in the Singapore. It has been operating in Malaysia for more than 70 years, and is based in the Menara OCBC, which is just right next to Masjid Jamek LRT Station, Kuala Lumpur. If Malaysia and Singapore is combined, OCBC will be the largest financial institution around with a combined asset of USD100 billion. OCBC also owns one of the largest insurance groups in Malaysia, the Great Eastern Holdings. As for the worldwide operation, OCBC has an extensive network of almost 400 branches in over 15 countries.
9. UOB Bank
Another Singaporean bank, UOB Malaysia was incorporated in 1993 and later expanded its wing by taking over the operation of Lee Wah Bank Limitied (LWB). The UOB Malaysia bank today is a result of 2 further rounds of merger and acquisition exercises. Presently, the UOB Bank operates throughout Malaysia, in over 40 locations across the country. In 2006, UOB was awarded Best Developed Market Bank in Singapore by Global Finance, Best FIG Borrower in Asia by Euromoney and Best Domestic Bank by Asiamoney.
10. RHB Bank
RHB is a short form of Rashid Hussein Bank, who was recently acquitted from mismanagement charge of the bank’s fund amounting to a few billion ringgits. The RHB was born when Kwong Yik Bank and DCB Bank (Development and Commerce Bank) merged in 1997. Today, the bank is the control of the EPF (Employee Provident Fund) after a recent successful bidding. RHB offers Commercial Banking, Corporate and International Banking services, and currently has more than 200 branch network across the country. To centralize its based hub, RHB built a multi-million complex along Jalan Tun Razak, Kuala Lumpur which now becomes the main head quarter.