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Dear Shareholders,
In FY2011, our commitment to enhancing shareholder value by focusing on growth areas and delivering strong financial results made Maybank Malaysia’s largest market- capitalised company. Our total shareholder returns continued to sustain double digit growth, recording 28.1% for the year.
We took full advantage of healthy economic conditions in the areas where we operate to capitalise on a range of opportunities. This once again enabled us to post a record net profit attributable to shareholders of RM4.45 billion, with over 90% coming from our three home markets of Malaysia, Singapore and Indonesia, where national GDP grew 5-8%. Assets climbed to RM412 billion, 22.4% up on the previous year; and we were heartened by an increase in our fee income ratio from 33.4% to 36.6%.
But to create shareholder value is not just about delivering financial returns. The new Group organisation we put in place on 1 July 2010 picked up momentum to strengthen capabilities for sustained performance longer term, driven by our mission to humanise financial services across Asia. This is being further reinforced by a newly-launched initiative to refresh the Maybank brand, which unites our people regionwide and clarifies to all our stakeholders how we are differentiated.
Our mission rests on the belief that the benefits of banking should be available to all, and that everyone deserves good advice and a fair deal. Underlying our mission is a pledge made by every member of staff: to Serve From Your HEART – which means serving our customers with Humility, Efficiency, Appreciation, Respect, and Trust. During the year, we received many accolades from various quarters for the way we care for our customers. Our challenge now is to ensure the standards we have set for ourselves get implemented more uniformly across all our operations throughout Asia.
We also have a vital role to play in the community, and in 2010 we ended our first half century of existence with a variety of events that involved us with many diverse communities. Looking forward, to enable us to prosper all the communities we touch, we have set up the Maybank Foundation. The foundation will cover all aspects of human well-being – from social and medical welfare and community development to heritage preservation and environment conservation. The goal of the foundation is to do nothing less than transform lives, and underlying all its activities is the principle of sustainability.
A commitment to unity and community is fundamental to the way we operate, and appropriately, to symbolise the unity of all Malaysians, a 1Malaysia sculpture now stands in the grounds of our Kuala Lumpur headquarters to commemorate our Golden Anniversary in 2010.
We continue to build our capital base to sustain our growth in line with the new Basel III regulations. In this connection, we are grateful to our shareholders for the confidence in us you displayed through your very high participation in our two dividend reinvestment plans (DRP), of 89% and 91% respectively. We will continue the DRP for a while to further strengthen our capital base. Given the robust results achieved in FY2011, we are proposing a final gross dividend of 32 sen per share, which would translate to a dividend payout ratio for the year of 75%.
Starting the second half-century of our journey, we further demonstrated our intent to become a regional financial services leader and to humanise financial services by acquiring Kim Eng Holdings in May 2011. This will greatly enhance our regional investment banking reach and capabilities, as part of improving further our regional wholesale banking franchise.
We will of course be mindful of the economic uncertainties that have appeared on the horizon in big markets such as Europe, Japan and the USA. Nevertheless, we remain in the world’s region of growth and we expect the strong foundations we have laid in Southeast Asia to enable us to continue to grasp opportunities.
Once again, I would like to thank all our stakeholders for your support in our shared quest to create value for the benefit of all.
TAN SRI DATO’ MEGAT ZAHARUDDIN MEGAT MOHD NOR
Chairman
