MAYBANK Quarterly Loss

Wow, surprising loss of more than RM1 bil for Maybank this quarter. Their yearly EPS took a hit and fell all the way to 12 sens only. They also announced an 8 sen dividend compared to 20 sens last year which is less than half. Although it is expected they take a hit from the PT Bank Internasional deal, I wasn't expecting a loss though. Today's closing price was RM6.52 without change. Current PER would be 54x and dividend yield of 1.2%.

I guess the rumours of their management being booted out due to poor financial results was very true after all. It is a very poor result. Classic example of "Price is what you pay, value is what you get". Do remember that Maybank and YTLPOWER acquire these assets roughly the same time, but YTLPOWER at that time got the better deal according to this article in the local newspaper.

Although their operational revenue has increased about 10%, their cost after consolidating their new Indon ventures ballooned up to 30% more according to their annual report. It will take some tough banking to bring it back to it's feet as they hope for the world economic recovery to propel them out of the loss pit back into it's former glory.

If their impairment of RM1.6 bil and an additional RM111 mil for Pakistan operations isn't recorded, Maybank would have registered a profit mimicking last quarter's result of about RM500mil or so. Give or take several generous percentage.

Heh, looking forward to tomorrows market reaction if it hasn't been already factored in. Since Maybank is one of the largest components of the new KLCI index, it will affect the index even more.