PETALING JAYA: Malayan Banking Bhd (Maybank) is confident of retaining its current account savings account (Casa) business amid the increasingly competitive environment and changing market conditions.
According to its group president and CEO, Datuk Seri Abdul Farid Alias, the bank has been receiving a bigger share of Casa growth in the country in the last two years. Its Casa ratio stood at 47.1% at the end of financial year 2021 (FY21).
“Our Casa ratio has moved up so much and that is because of the market environment that we are facing, the level of interest rates and the movement control order,” he told the media at a virtual briefing following Maybank’s 62nd AGM yesterday.
As interest rates start to turn around, not only in ringgit but in other currencies as well, Farid expects this trend to change and reverse.
“Nonetheless, we will continue to do what we’ve been doing up to this point as the bigger-than-our-fair-share of Casa growth that we have been seeing up to this point doesn’t come to us by itself but it’s through the various efforts in the branches and the digital side, dealing with non-retail customers, all of that combined has resulted in the growth of our Casa.”
Even as the market turns around, he believes the bank will be able to utilise the different initiatives to attract and retain its Casa advantage.
During the briefing, Maybank disclosed that it is on track to meet the goals set out under its five-year plan, dubbed M25, and will continue to accelerate efforts to unlock greater value for all its stakeholders. This will be achieved by enhancing its digital capabilities, discovering more new value drivers for business growth as well as championing sustainable practices.
Maybank chairman Tan Sri Zamzamzairani Mohd Isa pointed out it delivered a commendable financial performance in 2021, with a 24.9% year-on-year growth in net profit to RM8.1 billion, supported by its resilience and robust financial strength.
In 2021, the bank also reported a higher dividend payout amounting to 58 sen per share, which translated into a dividend yield of 7%, one of the highest among banks in the region.
Zamzamraini commented that as its key market moves towards the endemic stage in the Covid-19 situation, the expectation is that there would be greater economic recovery across the region – boosted by enhanced vaccination rollouts and the easing of border control restrictions.
“These are positive signs and we believe it puts us in the driving seat to ensure we achieve our M25 goals,” he said.
On this matter, Farid explained that the group’s focus on building the three strategic priorities has enabled it to stay ahead of the curve, and continue serving the community, especially during the outbreak of the pandemic.
“Our expertise to operate as a digital bank, in addition to our role as a traditional bank, demonstrates our strength to provide cutting-edge solutions for our customers,“ he said.
Over the last year, the president and CEO said, Maybank has designed its own lifestyle applications, introducing digital financing solutions in Malaysia in the retail and non-retail segments for products such as mortgage, personal and small and medium enterprise financing.
It has also allowed the “know-your-customer” processes to be undertaken digitally in its other markets such as Singapore, Indonesia and the Philippines, among others.
Farid said that while Maybank will continue to develop digital products and services for customers, it will also use the capability to drive sustainable banking practices to support its communities.