Analysts Mixed Over Maybank S Group Cfo S Dismissal Internal Inquiry Vs Governance Concerns

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THERE seems to be a mixed view from financial analysts over prospects of Malayan Banking Bhd a.k.a. Maybank following the dismissal of its group chief financial officer (GCFO) Khalijah Ismail.
While Affin Hwang Capital does not expect Bank Negara Malaysia (BNM) to intervene as the matter stemmed solely from an internal process breach as opposed to regulatory violation, TA Securities Research raised red flags over governance standards and potential reputational impact.
Recall that alarm bell rang on Monday (Feb 17) after Maybank in a Bursa Malaysia filing announced 58-year-old Khalijah’s “cessation of office” pursuant to an internal inquiry by the bank.
It further said that the process to identify a new GCFO has commenced and is underway with Maybank Islamic CFO Malique Firdauz Ahmad Sidique assuming the position of acting GCFO in the interim with effect from Feb 17.
“(Maybank’s) management mentioned that this was an isolated case and BNM has been informed accordingly. No regulatory action by BNM will follow after this event,” Affin Hwang Capital associate director Tan Ei Leen wrote in a report following an analyst briefing yesterday (Feb 18).
Bank Negara Malaysia (Image credit: AFP/Getty)“The group has confidence that its controls remain robust and effective to safeguard the interests of all stakeholders.”
However, TA Securities Research voiced investors’ reaction as reflected in a slump in share price of Malaysia’s largest financial group by assets and market capitalisation during yesterday’s early trading session.
Maybank’s shares slipped nearly 2% to an intraday low of RM10.36 – a one-week low – as investors practised caution before paring losses to close 2 sen lower (intraday high) at RM10.54 with 12.64 million shares traded.
“Investors may view this event as a sign of potential governance lapses, financial oversight issues or weaknesses in internal controls,” opined senior analyst Li Hsia Wong in a company update.
“Beyond internal governance concerns, we find that this departure comes at a challenging time for Maybank, especially given the recent regulatory scrutiny it has faced.”
To recap, TA Securities Research said BNM had in in August 2024 imposed a RM4.32 mil administrative monetary penalty (AMP) on Maybank and its Islamic banking arm due to prolonged service disruptions.
Additionally, both entities were recently fined a total of RM1 mil for failing to ensure timely, complete and accurate submission of critical data.
“These incidents could collectively raise Maybank’s reputational risk,” asserted the research house.
“While the bank has reportedly implemented corrective measures – including IT system enhancements, improved validation processes and staff training – this latest event may further erode public and investor confidence.”
Except for lowering Maybank’s G score from 71% to 60% given the heightened governance concerns, TA Securities Research has nevertheless retained both its “buy” call and target price of RM12.15 for Maybank.
For the record, Khalijah who was appointed as GCFO on Oct 1 2021 and has held various roles within the group over the past 30 years there has reportedly stated her desire to contest her “termination”.
In fact, The Edge said the senior executive has contemplated taking legal action against “the bank’s decision to protect her reputation”.
“I strongly disagree with the bank’s decision. No specific reasons were given for my termination other than a claim that the bank has lost trust and confidence in me,” Khalijah pointed out. “I categorically deny any wrongdoing.” – Focus Malaysia

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