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With EPS Growth And More, Malayan Banking Berhad (KLSE:MAYBANK) Makes An Interesting Case

Simply Wall St · 10/05 00:39

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.

In contrast to all that, many investors prefer to focus on companies like Malayan Banking Berhad (KLSE:MAYBANK), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Malayan Banking Berhad with the means to add long-term value to shareholders.

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Malayan Banking Berhad's Earnings Per Share Are Growing

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Malayan Banking Berhad managed to grow EPS by 11% per year, over three years. That's a good rate of growth, if it can be sustained.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. It's noted that Malayan Banking Berhad's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. While we note Malayan Banking Berhad achieved similar EBIT margins to last year, revenue grew by a solid 5.7% to RM28b. That's progress.

The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.

earnings-and-revenue-history
KLSE:MAYBANK Earnings and Revenue History October 5th 2025

Check out our latest analysis for Malayan Banking Berhad

The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Malayan Banking Berhad's future EPS 100% free.

Are Malayan Banking Berhad Insiders Aligned With All Shareholders?

Since Malayan Banking Berhad has a market capitalisation of RM121b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. We note that their impressive stake in the company is worth RM460m. We note that this amounts to 0.4% of the company, which may be small owing to the sheer size of Malayan Banking Berhad but it's still worth mentioning. This still shows shareholders there is a degree of alignment between management and themselves.

Should You Add Malayan Banking Berhad To Your Watchlist?

As previously touched on, Malayan Banking Berhad is a growing business, which is encouraging. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. These two factors are a huge highlight for the company which should be a strong contender your watchlists. It is worth noting though that we have found 1 warning sign for Malayan Banking Berhad that you need to take into consideration.

Although Malayan Banking Berhad certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Malaysian companies that not only boast of strong growth but have strong insider backing.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.