Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — 9M FY2019 Earnings Presentation

45 slides from Malayan Banking Bhd's earnings presentation, Nov 28, 2019

  1. Slide 1: Investor Presentation: Financial Results 3Q FY2019 and 9M FY2019

    Humanising Financial Services Investor Presentation Financial Results 3Q FY2019 and 9M FY2019 ended 30 September 2019 28 November 2019 www.maybank.com 0

  2. Slide 2: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 1 Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  3. Slide 3: Maybank Group 9M FY2019 Overview

    Maybank Group 9M FY2019 Overview PPOP growth of 5.1% YoY supported by revenue growth and cost discipline 1 • PPOP was supported by revenue growth of 5.3% YoY from expansion in net fee and net fund based income while maintaining cost management 9M FY2019 • Net profit of RM5.75 billion for 9M FY2019 w

  4. Slide 4: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 3 Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  5. Slide 5: P&L Summary: 3Q FY2019 & 9M FY2019

    P&L Summary: 3Q FY2019 & 9M FY2019 Net operating income growth of 10.3% QoQ for 3Q FY2019 and 5.3% YoY for 9M FY2019 More 9M 9M 3Q 2Q 3Q details RM million YoY QoQ YoY on FY2019 FY2018 FY2019 FY2019 FY2018 s.19 Net fund based income * 12,995.9 12,661.3 2.6% 4,522.2 4,166.8 8.5% 4,268.2 6.0% s.7/ 8/1

  6. Slide 6: Net Fund Based Income: 9M FY2019 (1/2)

    Net Fund Based Income: 9M FY2019 (1/2) Strong liquidity supporting targeted loans growth Group-wide Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  +3.4%  +5.3%  (0.1)%  (1.7)% 292.5 308.0 SGD billion IDR trillion 136.1 133.8 RM billion RM billio

  7. Slide 7: Net Fund Based Income: 9M FY2019 (2/2)

    Net Fund Based Income: 9M FY2019 (2/2) NIM improves QoQ as Malaysian deposits fully re-priced post-OPR cut in May and on continued FD release in Indonesia Net Interest Margin (%) QoQ Trend 2.38 5 Year Trend 2.32 2.30 2.30 2.19 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 2.36 2.33 2.31 2.27 2.27 FY2015 FY2016

  8. Slide 8: Net Fee Based Income: 9M FY2019

    Net Fee Based Income: 9M FY2019 Growth of 12.5% driven by net disposal gains in securities and MTM gains on lower bond yields 9M 9M RM million YoY FY2018 FY2019 Commission, service charges and fees 2,575 2,460  (4.5)% Investment & trading income 17 1,478  >100% Unrealised gain/ (losses) on financi

  9. Slide 9: Net Fee Based Income: 3Q FY2019

    Net Fee Based Income: 3Q FY2019 Net fee based income improved QoQ on stronger investment & trading income 3Q 2Q 3Q RM million QoQ YoY FY2019 FY2019 FY2018 Commission, service charges and fees 882 805  9.5% 883  (0.1)% Investment & trading income 834 438  90.3% (68)  (>100)% Unrealised gain/ (los

  10. Slide 10: Overheads: 9M FY2019

    Overheads: 9M FY2019 Positive JAWs QoQ and neutral on a 9M basis, with 9M CIR within guidance of ~47% 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2019 FY2018 FY2019 FY2019 FY2018 Personnel Costs 5,023.6 4,698.5 6.9% 1,680.0 1,656.6 1.4% 1,557.2 7.9% Establishment Costs 1,370.9 1,321.3 3.8% 480.8 448.7 7

  11. Slide 11: Asset Quality

    Asset Quality Annualised net credit charge off rate of 50 bps with Group GIL ratio of 2.67% Allowances for losses on loans Group Gross Impaired Loans (GIL) Ratio Composition Loan loss coverage incl. Regulatory Reserve Sep Jun Mar Dec Sep Loan loss coverage GIL Ratio Components 2019 2019 2019 2018 20

  12. Slide 12: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Stable consumer AQ trends with some AQ weakness in business segments of Singapore and Indonesia Consumer Mortgage Auto Finance Credit Cards 2.73% 2.88% 2.90% 2.61% 2.63% 1.36% 1.34% 1.33% 1.84% 1.86% 1.97% 1.71% 1.27% 1.66% 1.05% 1.53% 1.41% 1.30% 0.

  13. Slide 13: Strong Liquidity & Capital Positions: 30 September 2019

    Strong Liquidity & Capital Positions: 30 September 2019 Total capital ratio of 18.07% and CET 1 capital ratio of 14.44%, after proposed full cash interim dividend payout Liquidity Risk Indicators Before proposed After proposed dividend full cash dividend 19.02% 18.80% 18.07% LDR LTF LTFE LCR Group 1

  14. Slide 14: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 13Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  15. Slide 15: Market Outlook

    Market Outlook FY2019 Industry outlook for our home markets Key Indicators Industry Outlook • Growth supported by monetary and fiscal • GDP: 4.5% (2019F) vs 4.7% (2018) stimulus to domestic demand such as BNM’s • System loan: 3%-4% (2019F) vs 5.6% (2018) OPR & SRR cuts; additional infrastructure • O

  16. Slide 16: Maybank Performance Outlook

    Maybank Performance Outlook Group guidance for FY2019 1 Income Growth  Expand revenue streams through cross business collaborations  Measured balance sheet expansion in line with economic growth of home markets and Group’s conservative risk posture  Group ROE guidance of 10.0% to 10.5%, on slower

  17. Slide 17: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 16Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  18. Slide 18: International & Malaysia Portfolio Mix 9M FY2019

    International & Malaysia Portfolio Mix 9M FY2019 Net Operating Income Profit Before Tax Gross loans* 9M FY2019 (Jan 19 – Sep 19) Overseas: 7.2% Overseas: 6.0% 7.0% Overseas: 8.4% 37.7% 12.1% 13.8% 0.8% 40.9% 7.5% RM18.25 RM7.75 RM525.0 18.4% billion billion 25.0% billion 62.3% 59.1% 86.2% Malaysia S

  19. Slide 19: Segmental Performance of Businesses: 9M FY2019 (1/2)

    Segmental Performance of Businesses: 9M FY2019 (1/2) Net Operating Income 9M FY2018  +5.3% Group Global Banking  +7.4% 9M FY2019 9M FY2018: 6,753 9M FY2019: 7,253 17,329 18,248  +1.6%  +10.3%  (16.9)%  +>100%  +29.6% 10,051 10,207 RM million 5,717 6,308 980 814 56 130 1,050 1,361 Total Group

  20. Slide 20: Segmental Performance of Businesses: 9M FY2019 (2/2)

    Segmental Performance of Businesses: 9M FY2019 (2/2) Net Fund Based Income 9M FY2018  +2.6% Group Global Banking  +0.2% 9M FY2019 9M FY2018: 4,094 9M FY2019: 4,102 12,661 12,996  +0.6%  +1.3%  (18.2)%  +31.5%  +12.7% 7,657 7,701 RM million 3,844 3,893 242 11 854 962 198 8 Total Group Communit

  21. Slide 21: Unaudited Income Statement for Insurance and Takaful Business

    Unaudited Income Statement for Insurance and Takaful Business 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2019 FY2018 FY2019 FY2019 FY2018 Net interest income 961.8 853.8 12.6% 327.4 322.0 1.7% 294.8 11.1% Net earned premiums 4,999.5 4,431.4 12.8% 1,749.1 1,623.8 7.7% 1,430.0 22.3% Other operating incom

  22. Slide 22: Exposure to Oil & Gas and Real Estate Sectors: 30 September 2019

    Exposure to Oil & Gas and Real Estate Sectors: 30 September 2019 Group Exposure to Direct & Indirect Oil & Gas Borrowers Real Estate Exposure to Non-Retail Malaysian Borrowers Maybank Group Malaysia Singapore Indonesia Others High Rise Others, 32.2% 2.92% 1.78% 0.82% 0.09% 0.23% Residential, 28.7% N

  23. Slide 23: Group Gross Loans Growth: 30 September 2019

    Group Gross Loans Growth: 30 September 2019 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2019 2019 2019 2018 Ann. 2018 Group Gross Loans 525.0 525.6  (0.1)% 516.9 517.3  2.0% 507.7  3.4% Malaysia (RM billion) 59% 308.0 302.9  1.7% 299.4 299.3  3.9% 292.5  5.3% Community Financ

  24. Slide 24: Malaysia Loans Growth: 30 September 2019

    Malaysia Loans Growth: 30 September 2019 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep RM billion QoQ YoY Portfolio 2019 2019 2019 2018 Ann. 2018 Community Financial Services (reported) 73% 226.4 222.5  1.7% 218.3 216.0  6.4% 212.4  6.6% Community Financial Services (rebased)¹ 73% 226.4 222.5  1.7

  25. Slide 25: Group Deposits Growth: 30 September 2019

    Group Deposits Growth: 30 September 2019 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2019 2019 2019 2018 Ann. 2018 Group Gross Deposits 566.2 560.9  0.9% 557.6 556.3  2.4% 536.6  5.5% Malaysia (RM billion) 63% 356.1 351.2  1.4% 343.9 343.8  4.8% 331.3  7.5% Savings Deposits 1

  26. Slide 26: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 94.4% 92.7% 92.4% 93.4% 92.5% 89.1% 87.6% 87.6% 86.9% 87.1% 35.1% 35.9% 34.9% 34.5% 34.6% 37.9% 38.7% 37.5% 37.5% 37.5% 33.2% 33.6% 32.4% 32.6% 32.5% 34.9% 34.9% 34.0% 33.8% 34.0% Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Sep 18 Dec 18 Mar 19 Jun

  27. Slide 27: RWA Optimisation and Funding Management

    RWA Optimisation and Funding Management Group Gross Loans & Group RWA Funding Breakdown Borrowings and Capital Instruments Operational RWA Market RWA by Currency Credit RWA Gross Loans 525.0 517.3 507.7 384.5 FI Deposits, 7% 380.2 HKD, 9% 374.6 Equity, 11% IDR, 41.2 42.7 CNY, 6% 41.8 JPY, 9% 9% SGD,

  28. Slide 28: Key Operating Ratios

    Key Operating Ratios 9M 9M 3Q 2Q 3Q % YoY QoQ YoY FY2019 FY2018 FY2019 FY2019 FY2018 Return on Equity 10.1 10.8 (0.7)% 10.5 10.2 0.3% 11.0 (0.5)% Net Interest Margin 2.27 2.32 (5) bps 2.32 2.19 13 bps 2.30 2 bps Fee to Income Ratio 28.8 26.9 1.9% 30.4 29.3 1.1% 25.0 5.4% Loans-to-Deposit Ratio 1 92.

  29. Slide 29: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 28Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  30. Slide 30: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Sep-19 Market share Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 vs Jun-19 Loans Total consumer (Household) 17.7% 17.7% 17.8% 17.5% 17.6% Auto (Hire Purchase + Block Discounting + Floor Stocking) 28.0% 28.4% 28.7% 29.0% 29.3% Total mortgage *

  31. Slide 31: Community Financial Services: Overview of Malaysia Portfolio

    Community Financial Services: Overview of Malaysia Portfolio Total CFS loans on an upward trend of 6.6% YoY and 6.4% Total CFS deposits increased by 1.1% YoY, due to reduction YTD annualised. in high cost deposits, mitigated by CASA growth of 4.5%  +1.1% YoY  +6.6% YoY  (0.4)% YTD Ann.  +6.4% YT

  32. Slide 32: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 31Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  33. Slide 33: Global Banking: Malaysia Corporate Banking and Group Securities Portfolio

    Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio Total Corporate Banking loans in Malaysia increased 2.0% Group Securities Portfolio¹ grew 13.1% YoY YoY to RM81.7 billion RM billion  +13.1% YoY 45.1 Term Loan 45.1  +0.9% YoY 44.7 202.4 194.9 7.9 178.0 186.5 8.4

  34. Slide 34: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 9M FY2019 Total Income Breakdown by Country 9M FY2019 Fee-based Income for Malaysia Hong Kong Others Arranger Fees 5% 4% 24% Underwriting & Philippines Placement Fees 2% 11% Indonesia 5% Malaysia 42% Advisory Fees Thailand RM814.3 9% 15%

  35. Slide 35: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 34Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  36. Slide 36: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 9M FY2019 9M FY2018 YoY Net fund based income 576.88 555.33 3.9% Net fee based income 280.69 289.57 (3.1%) Net income 857.58 844.90 1.5% Overhead expenses (351.26) (318.19) 10.4% Operating profit 506.32 526.71 (3.9%) (Loss)/ Profit before taxation (26.68) 2

  37. Slide 37: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Consumer deposits’ composition rose to 55% of total deposits % of 30 Sep 31 Dec YTD 30 Sep SGD Billion YoY  +6.0% YoY Portfolio 2019 2018 Ann. 2018 CFS 54% 22.7 22.6 0.7% 22.5 1.0% 44.9 46.2 47.6 Consumer - Consu

  38. Slide 38: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 37Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  39. Slide 39: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary 9M 9M 3Q 2Q IDR billion YoY QoQ FY2019 FY2018 FY2019 FY2019 Net Fund Based income 6,125 6,040 1.4% 2,101 1,987 5.7% Net Fee Based income 1,862 1,511 23.2% 695 652 6.7% Net income 7,988 7,551 5.8% 2,797 2,639 6.0% Overhead expenses (4,856) (4,482) 8.4% (1,673) (1,598) 4

  40. Slide 40: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown % of 30 Sep 30 Jun 30 Sep Key Operating Ratio Sep-19 Dec-18 Sep-18 YoY IDR Trillion QoQ YoY Portfolio 2019 2019 2018 Profitability & Efficiency CFS 73% 94.4 97.6 (3.3)% 100.1 (5.7)% Retur

  41. Slide 41: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 14 Appendix: 1. Financial Performance 17 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 35 5. Maybank Indonesia 38 6. Other Segments 41 40Financial Results: 3Q FY2019 and 9M FY2019 ended 30 Sep

  42. Slide 42: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM188.8 billion RM million 9M FY2019 9M FY2018 YoY Sep-18 12% Sep-19 Total Income 3,848.2 3,793.5 1.4% 51.9 10% 7% 46.2 Profit Before Tax 2,517.9 2,031.3 24.0% 41.8 37.

  43. Slide 43: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 31.0% 31.0% 31.2% 30.7% 30.9% Key Products Sep 19 Sep 18 Automobile Financing 47.1% 45.0% 28.8% 28.7% 28.4% 28.3% Home 26.3% 27.0% 27.8% Term financing 28.4% 31.8% Sep 18 Dec 18 Mar 19 Jun 19 Sep-19 Financi

  44. Slide 44: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Net Adjusted Premium/ Contribution Life / Family (New Business) Market Share (Malaysia) Single Premium  27.5% 20.9% 21.8% 21.4% 19.3% Regular Premium  8.7% No. 4 in 13.7% 13.4% Life/Family Credit Premium  2.5% 9M FY19 15.3% 14.5% 16.7% (New Business) Gr

  45. Slide 45: Malayan Banking Berhad contact details and disclaimer

    Humanising Financial Services MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not

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