Sudden removal of finance chief raises governance concerns at ...

KUALA LUMPUR (Feb 18): The sudden departure of Malayan Banking Bhd’s (KL:MAYBANK) chief financial officer raises concerns about governance standards at the country’s biggest lender by assets, analysts flagged.

Shares of the bank also known as Maybank slipped nearly 2% to an intraday low of RM10.36, a one-week low, as investors maintained caution following announcement of the immediate removal of Khalijah Ismail from her position on Monday.

The bank’s management offered little details on the issue and the stock may still experience a knee-jerk reaction, said Hong Leong Investment Bank’s Chan Jit Hoong, who attended an analyst briefing. While Maybank is still a “buy” call, a short-term overhang on the stock could not be ruled out, he said.

On Monday, Maybank announced that Khalijah had left the group with immediate effect following an internal inquiry. The bank is currently searching for a replacement and has named Malique Firdaus Ahmad Sidique from its Islamic banking arm as acting finance chief in the meantime.

Khalijah was removed from her position due to non-compliance with internal requirements and processes, according to several analysts who attended the briefing. The bank’s management also insisted that there was no falsification of financial accounts, and all statements remain true and fair.

The internal inquiry was not triggered by any law enforcement agency and remains an isolated incident. Bank Negara Malaysia, which regulates the banking sector, was informed and controls are in place to safeguard shareholders' interests.

Khalijah’s departure comes at a challenging time for Maybank amid heightened regulatory scrutiny following recent fines, said TA Securities.

“These incidents could collectively raise Maybank’s reputational risk,” the house said. While the bank has reportedly implemented corrective measures, the latest episode may “further erode public and investor confidence,” it added.

Maybank and its Islamic Banking unit, along with other banks, was fined in Jan 2025 nearly RM1 million for late, incomplete and inaccurate submissions of critical data. In Aug 2024, the central bank imposed RM4.32 million in administrative penalties on Maybank for prolonged service disruptions.