Maybankers get early bonus after record profit

According to CIMB Research, Maybank

KUALA LUMPUR: Employees of Malayan Banking Bhd (Maybank) are getting an early reward following the bank’s record performance for 2017.

Apart from the normal payout from the bonus pool, non-executives such as clerks and security guards will receive a one-off payment of up to RM1,750 each.

The bonuses will be credited to all eligible Maybankers today.

“Yes, even earlier than last year,” president and CEO Datuk Abdul Farid Alias said in a memo to his staff.

Sources said that bankers whose remuneration is based on performance are likely to get good payouts after the bank’s sterling performance in 2017.

“The bonus will be staggered for those getting payouts of more than 12 months,” said a source.

Maybank typically rewards its employees, or Maybankers as they call themselves, based on a composite calculation of their individual performance, their sector’s achievement and the group’s financial results.

The group’s bonus pool is based on the bank’s return on equity (ROE) and the size of it is based on ROE achievement level and profit before tax at the group level.

“We have achieved the highest ever profit before tax amidst the challenging economic climate,” Farid said.

Annual pre-tax profit at Maybank topped the RM10bil mark for the first time in the financial year ended Dec 31, 2017 (FY17). Net operating income rose 4.9% to RM23.bil, while ROE stood at 10.9%.

These results, Farid said, showed a strong franchise, resilient balance sheet, sound management of risks and improved efficiency across the bank’s network.

Maybank is one of the top five banks in Asia with about RM650bil in total assets, with over 2,400 branches in 20 countries and employing 45,000 employees.

At its closing price of RM10.44 today, Maybank has a market value of RM113bil.