The comparative study on financial performance between Citibank Berhad and Standard Chartered Bank Malaysia Berhad / Che Muhamad Azli Che Ab Hadi

• Main Author: Che Ab Hadi, Che Muhamad Azli
• Format: Student Project
• Language: English
• Published: Faculty of Business and Management 2010
• Subjects: HG Finance; Financial management. Business finance. Corporation finance; Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure
• Online Access: http://ir.uitm.edu.my/id/eprint/24813/1/PPb_CHE%20MUHAMAD%20AZLI%20CHE%20AB%20HADI%20M%20BM%2010_5.pdf; http://ir.uitm.edu.my/id/eprint/24813/
• Institution: Universiti Teknologi Mara

This case study was conducted to evaluate the financial performance of both International banks that are operating in Malaysia, Citibank Berhad and Standard Chartered Bank Malaysia Berhad which come from a same banking sector. But, there is a different from their operation in running the business. For completion of this report, secondary data and other approaches such as common sizing, financial ratios and gap analysis has been use as a data collection. The data is taken from external sources such as journal, internet, and newspaper. The study examines four type of ratios include (1) common size, (2) liquidity, (3) capital structure and solvency, (4) Return on Investment The main focus of this study is to compare financial performance measurement used by Citibank Berhad and Standard Chartered Bank Malaysia Berhad with the theory of the ratios based on financial statement analysis written by K.R. Subramanyam and John J. Wild in order to measure a bank’s performance. From the analysis, for current ratio the Standard Chartered Bank has higher current ratio in 2006, 2007 and 2008 than Citibank because it has more liquid assets and able to pay off its short-term debt. For quick ratio the Citibank has more liquid assets that can cover its liabilities. Citibank also shows a stable quick ratio from year 2006 until 2009. For total debt to asset the Standard Chartered Bank has more risk that it should take on their assets. For total debt to equity the Standard Chartered Bank need more in financing of assets is due to investors putting in money into the company than Citibank that has the lower ratios. For return on equity the Citibank Berhad is more efficient management in utilizing it equity base compared to Standard Chartered Bank. Lastly, for return on asset Citibank Berhad is more efficient in management of utilizing the assets ratio and better return to investment in the year 2006, 2007 and 2009 compared to Standard Chartered Bank which only very efficient in 2008. Result from the financial analysis done provide that Citibank Berhad which is centered in America is more strong financial position and earned lower profit rather than the standard Chartered Bank Malaysia Berhad which is centered in Britain. Separate comparisons from their operation for both bank on this case study also showed significant performance different in every ratio category.