Best bank
Public Bank Best equities house
CIMB
Best debt house
CIMB
Best M&A house
CIMB
Public Bank wins the award for best bank in Malaysia for a third straight year and in the past 12 months its performance has improved yet again. Although revenues in fiscal 2003 increased 13.8%, a drop in the costs meant that the bank?s operating profit jumped 72.6%. The balance sheet also remains strong, with non-performing loans reduced further to just 2% and shareholders? funds at M$8.7 billion ($2.3 billion).
Public Bank dominates the consumer market and this has protected it from the fallout as a result of the imposition of capital controls. As the economy has recovered, so has the bank?s loan portfolio, as its asset base has increased to M$64.6 billion. Returns on assets are a respectable 2.3% and net interest margin 3.8%. Public Bank is also one of Malaysia?s best-capitalized banks, with a core capital ratio of 17.6%.
Commerce International Merchant Bankers (CIMB) dominates domestic investment banking and this year has made a clean sweep of the investment banking awards. A subsidiary of financial services group Commerce Asset-Holding, CIMB tops all three league tables.
In domestic equities, CIMB just beat ECM Libra for top spot, raising $755 million from 19 issues, including a $349 million IPO for Caely Holdings and a $162 million IPO for Protasco.
In bonds, CIMB beat opposition from Deutsche Bank, ING and Morgan Stanley to finish at the top of the league table. Of the 10 largest bond deals, CIMB participated in seven, including the top four, raising $486 million for Malakoff Berhad, $426 million for SKS Power and $300 million for Bumiputra Commerce Bank. Such is its penetration of the local market that CIMB is able to launch and close large deals alone. It is however equally at home working alongside international competition.
In M&A, the bank advised on 11 deals worth $388 million. Examples include the $220 million acquisition of SKS Power by Malakoff, the $90 million asset sale by RB Land to Econstates and the $75 million sale of KIC Oil and Gas to PDZ Holdings.
