Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q1 FY2012 Earnings Presentation
44 slides from Malayan Banking Bhd's earnings presentation, May 24, 2012
Slide 1: Investor Presentation: Financial Results First Quarter FY2012
Investor Presentation Financial Results Fi t Quarter First Q t FY2012 ended d d 31 M March h 2012 24 May 2012 www.maybank.com 0
Slide 2: Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Countryy Review Economic Update and Prospects 1Financial Results: First Quarter ended 31 March 2012
Slide 3: Key Highlights: Sustainable Profit Growth
Key Highlights: Sustainable Profit Growth z Profit continued to grow in 1Q FY2012 z Year on year, revenue grew 27.7% YoY on the back of 14.0% growth in fund based income and 54.5% growth in fee income. z Quarter on quarter, revenue grew 5.4% after normalising for insurance surplus transfer and the n
Slide 4: Key Corporate Developments
Key Corporate Developments z Strengthening of Management z Dato’ Khairussaleh Ramli officially began as President Director/CEO of BII on 6 April 2012. z Appointment of Mohamed Rafique Merican as Group CFO on 1 June 2012 z Appointment of Herminio M. M Famatigan Jr. Jr as new CEO of Maybank Philippine
Slide 5: Key Performance Indicators for 1Q FY12
Key Performance Indicators for 1Q FY12 Target 1Q FY12 * Headline KPIs Return on Equity 15.6% 16.0% Loans and Debt Securities Growth 15.2% 7.0% Other targets Group Loans Growth 16.2% 6.1% • Malaysia 13.6% 9.5% • Singapore 11 4% 11.4% -3.6% 3 6% • Indonesia 20.9% 15.7% Group Deposits Growth 12.3% 8.3%
Slide 6: Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Countryy Review Economic Update and Prospects 5Financial Results: First Quarter ended 31 March 2012
Slide 7: 1Q FY12 PATAMI rose 17.9% YoY to RM1.35 billion
1Q FY12 PATAMI rose 17.9% YoY to RM1.35 billion Quarter 1Q FY12 2Q FP11 QoQ 3Q FY11 YoY 31 Mar 12 31 Dec 11 Change 31 Mar 11 Change Net interest income , 2,020.7 2,152.7 , -6.1% % 1,771.4 , 14.1% % Net Fund based income (Islamic Banking) 375.6 427.0 -12.0% 329.9 13.8% Total net fund based income 2,3
Slide 8: Strong Balance Sheet: Total Assets grew 10.6% annualised
Strong Balance Sheet: Total Assets grew 10.6% annualised, LDR stable at 87.2% Annualised YoY RM billion Mar 12 Dec 11 Mar 11 Growth Growth Cash and short-term funds 44.9 49.1 -34.1% 32.0 40.4% Deposits with financial institutions 12.8 6.5 394.2% 8.5 50.8% Securities purchased under resale agreements
Slide 9: Gross loans grew 6.1% annualised (18.2% YoY)
Gross loans grew 6.1% annualised (18.2% YoY), driven by 11.9% growth in Consumer, 12.7% growth in GWB Malaysia and 15.7% growth in BII Annualised YoY RM billion Mar 12 Dec 11 Mar 11 Growth Growth Community Financial Services 123.2 120.7 8.4% 110.0 12.0% Consumer 97.7 94.9 11.9% 84.8 15.1% Total Mort
Slide 10: Deposits grew 8.3% annualised (22.8% YoY)
Deposits grew 8.3% annualised (22.8% YoY), driven mainly by growth in Singapore of 23.1% (28.0% YoY) Malaysia Singapore BII Group Annualised YoY Annualised YoY Annualised YoY Annualised YoY RM bil SGD bil Rupiah tril RM bil Growth Growth Growth Growth Growth Growth Growth Growth Savings Deposits 33.
Slide 11: Asset Quality continues to improve
Asset Quality continues to improve with Gross and Net Impaired Loan ratio declining to 2.44% and 1.57% respectively Allowance for losses on loans Net Impaired Loan Ratio 4.60% +171.3% YoY 4.67% ‐14.9% 14.9% QoQ 4 20% 4.20% 3.67% 230.3 3.35% 2.99% 3.23% 195.9 2.74% 2.39% 2.84% 2.83% 2.25% 2.18% 2.44%
Slide 12: Group Fee-Based Income increased 55% YoY to RM1.65 billion
Group Fee-Based Income increased 55% YoY to RM1.65 billion*. Excluding Kim Eng it increased 37% YoY. +51.6% 1 408 1,408 3Q FY11 ended 31 Mar 11 +25.6% 1Q FY12 ended 31 Mar 12 929 787 RM million 626 +238.8 ‐95.4% +99.3% +105.7% + 3.7% +175.3% 362 149 182 159 109 84 87 44 24 53 58 1 Total Non‐Interest
Slide 13: Overheads grew 28.4% YoY due to Kim Eng consolidation
Overheads grew 28.4% YoY due to Kim Eng consolidation & higher personnel costs. Excluding Kim Eng, overheads grew 18.4% YoY. Personnel costs IT Expenses Marketing Expenses Admin general expenses and establishment costs Admin, +28.4% YoY ‐2.9% QoQ 2,054.0 1,994.8 With KE Without KE 1Q FY12 QoQ YoY Yo
Slide 14: Capital Adequacy remains stable
Capital Adequacy remains stable and initiatives to optimise RWA will continue Adjusted for dividend payment and reinvestment made under the Based on 88.5%^ Based on 88.5%^ Dividend Reinvestment Plan (DRP) reinvestment rate reinvestment rate 15.20% 16.29% Group 14.16% 14.12% 14.71% 15.35% 11.80% 11.6
Slide 15: Maybank Group: Key Ratios
Maybank Group: Key Ratios 1Q FY12 FP11 FY11 FY10 FY09 Net Interest Margin 2.37% 2.53% 2.56% 2.80% 2.72% Return on Equity 16%** 16 2%** 16.2% 15 2% 15.2% 14 5% 14.5% 12 8% 12.8% Fee to Income Ratio 40.8% 37.6% 36.6% 33.4% 33.0% Cost to Income # 48.7% 49.8% 49.6% 47.3% 52.8% Loan-to-Deposit Loan to De
Slide 16: Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Countryy Review Economic Update and Prospects Financial Results: First Quarter ended 31 March 2012 15
Slide 17: Revenue and PBT growth across most sectors
Revenue and PBT growth across most sectors Revenue (RM million) +27.7% 3Q FY11 Global Wholesale Banking (GWB) +61.7% ended 31 Mar 2011 4 051 4,051 1Q FY12 3,172 +1.6% ended 31 Mar 2012 +40.9% +23.9% +331.1% +29.1% +15.9% 1,589 , 1,614 , 1 308 1,308 1,013 330 465 373 462 335 78 167 194 Total Communit
Slide 18: Revenue grew due to higher fee-based income
Revenue grew due to higher fee-based income mainly from GWB and International Net Fund Based Income rose 14.0% 3Q FY11 ended 31 Mar 2011 +14.0% Global Wholesale Banking (GWB) +19.8% 1Q FY12 RM milllion 2,396 , ended 31 Mar 2012 2,101 +2.5% 1,190 1,221 +40.8% -16.1% +542.4% +20.8% +14.5% 690 832 213
Slide 19: Increasing contribution from international operations
Increasing contribution from international operations R Revenue P fi Before Profit B f T Tax Gross loans 1Q FY2012 * Including Islamic loans sold to Cagamas (Jan 12 – Mar 12) and excludes unwinding of interest 5.0% 6.5% International: 6.2% International: International: 37% 27% 36% 6.8% 8.3% 15.5% 15
Slide 20: Community Financial Services: Mortgage grew 12.5% annualised
Community Financial Services: Mortgage grew 12.5% annualised with improving asset quality Continued growth despite intense competition Asset quality continued to improve +16.8% YoY * +12.5% annualised 3.9% 42.1 43 4 43.4 3.1% 37.2 2.8% 5.7 6.1 2.2% M billion 4.7 1.9% 37 3 37.3 RM 32.5 36.4 Mar 11 De
Slide 21: Community Financial Services: Auto Finance business
Community Financial Services: Auto Finance* business improved in volume and market share Auto Finance* grew 12.9% annualised in March 12 Asset quality remained stable with increasing market share +12.3% YoY 20.5% 3.0% 20.0% 2.5% +12.9% annualised 27 2 27.2 28 0 28.0 19.5% 18 8% 18.8% 19 9% 19.9% % 2
Slide 22: Community Financial Services: Cards continued to grow
Community Financial Services: Cards continued to grow ahead of industry Cards d Market k Share h Cards performance f outperforming f industry Mar 12 Mar 11 YoY Maybank Industry* Cardbase 18.1% 17.0% Cardbase 2.5% -3.4% Billings 24.7% 22.8% Billings 21.0% 11.6% Receivables 15.4% 14.5% Receivables 13.
Slide 23: Business Banking and SME: Deposits grew 6.8% annualised
Business Banking and SME: Deposits grew at 6.8% annualised Loans decline in 1Q due to repayments ‐ 4.4% ann. Deposits growth at 6.8% on annualised basis +6.8% ann. 25.3 24.7 24.6 25.8 25.5 50.7 51.5 47.3 39 9 39.9 41.2 RM billion RM billion Mar 11 Jun 11* Sep 11* Dec 11* Mar 12 Mar 11 Jun 11* Sep 11
Slide 24: Global Wholesale Banking: Loans growth driven by Term Loans
Global Wholesale Banking: Loans growth driven by Term Loans Total GWB loans* increased by 2.6% to Strong position in terms of RM57.6 billion between December 2011 Trade Finance Market Share and March 2012. Mar '12 Dec '11 Sep '11 RM billion 28.4 Term Loans 25.9 +9.5% 27.7 26.6 Gross Impaired Loans R
Slide 25: Global Markets: Revenue growth supported by non interest income
Global Markets: Revenue growth supported by non interest income PBT and dRRevenue grew 17% and d 24% YoY Y Y respectively i l Credit Rating for Private Debt Securities in Malaysia Profit Before +16.7% Non‐Interest Income +23.9% Not Rated, Tax Net Interest Income 462 33% 408 373 Commercial AAA, 36% P
Slide 26: Maybank Kim Eng total income of RM340.1 million
Maybank Kim Eng* reported a total income of RM340.1 million with Malaysia contributing 40% of the total income Total Income (RM mil.): RM340.1 mil Total Income for Malaysia rose 77% YoY and 73% QoQ 160.0 Malaysia, 6.4 Others, 7.6, 140.0 2% 135 3 40% 135.3, 120.0 Indonesia, RM million 8.7, 3% 100.0 O
Slide 27: Maybank Kim Eng strong position with notable deals
Maybank Kim Eng has maintained a strong position with several notable deals 1Q FY2012 Maybank IB’s (Malaysia) Industry Position & Recent Notable Deals Market Share Industry Total Deals / Market Rank by Value Issues Share Value (RM bil) M&A1 1 6.2 9 14.3% Equity & Rights 1 0.5 3 30.7% Off i 1 Offerin
Slide 28: Group Islamic Banking sustained profit growth
Group Islamic Banking business sustained profit growth Group Islamic Banking Income and PBT* Maybank Islamic: Total Gross Financing grew 5% annualised to RM53.0 billion YoY RM million 1Q FY12 3Q FY11 Growth ‐4% Fundd bbasedd iincome F 375.66 375 329.99 13.9% 329 13 9% 16.6 16.4 Fee based income 159.
Slide 29: Etiqa: No. 1 Position in Life/Family and General Business
Etiqa: No. 1 Position in Life/Family (new business) and General Business Loss Ratio 53.0% Combined Gross Premium +38.1% 65.1% 56.5% 60.0% 55.2% Overall Group Premium -2.8% Credit Premium +4.1% Jan-Mar 2012 30.7% 33.4% Regular Jan- Mar 2011 +3.4% Fire Premium 19.8% 20.0% 19.7% Single Premium +248.6%
Slide 30: Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Countryy Review Economic Update and Prospects Financial Results: First Quarter ended 31 March 2012 29
Slide 31: Singapore: 1Q PBT up 7% to S$96m
Singapore: 1Q PBT up 7% to S$96m on improved fund and fee based income, partly offset by higher provision and overheads Revenue and PBT rose 8% and 7% YoY respectively Diversified Loan Portfolio ‐3.8% annualised 20.1 24.6 24.3 1Q FY12 1Q FY11 YoY SGD million Mar 12 Mar 11 Growth 0.8 1.2 1.3 Other (C
Slide 32: BII: Net Profit growth by 78% YoY
BII: Net Profit growth by 78% YoY Income Statement Rp Billion Rp. Q1 2012 Q1 2011 % Net Interest Income 1,167 975 20% Non Interest Income 628 586 7% Gross Operating Income 1,796 1,561 15% Operating Expenses (excl. provision) (1,247) (1,060) 18% Total Operating Income 549 501 9% Provisions (220) (347
Slide 33: BII: PBT grew 76% on 23% consolidated loans growth
BII: PBT grew 76% on the back of 23% consolidated loans growth Revenue and PBT (Rp billion) Net Interest Margin +15.1% 1,796 5.67% 1,561 , 5.43% 5.51% 5.28% Revenue +75.9% PBT 5.22% 380 216 Mar-11 Mar-12 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Loan composition (Rp trillion) Loan‐to‐Deposit Ratio (Bank on
Slide 34: BII: Branches and touch points expansion on track
BII: Branches and touch points expansion on track Branches and ATM A Asset Quality Q li 1,190 4.95% 1,152 1,017 1,088 4.15% 4.03% 1,009 952 844 893 806 3.54% 2.27% 2.88% 2.08% 368 2.75% 327 337 344 346 351 260 274 295 1.11% 1.25% Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Mar 11
Slide 35: WOM: 5.5% growth in revenue
WOM : 5.5% growth in revenue, whilst PBT impacted by provisions arising from 2011 portfolio Revenue and d PBT ((Rp billion) billi ) Unit Financing +5.5% (In 000 unit) 381 402 142 128 115 116 DR Billion ‐414.3% 26 in ID 13 7 (22) New Used Total YTD Mar'11 YTD Mar'12 M 11 Mar‐11 M 12 Mar‐12 Total Reve
Slide 36: An Binh Bank: Financial Highlights
An Binh Bank: Financial Highlights PBT increased by VND30.0 VND30 0 bil or 20% largely due to higher net interest income of VND91.5 bil. Revenue and PBT The increase is mitigated by the drop in non- +22% interest income of VND12.3 bil, higher overheads 433.3 off VND28.0 VND28 0 bil and d higher hi
Slide 37: MCB Bank: Financial Highlights
MCB Bank: Financial Highlights PBT iincreased db by PKR847 PKR847.33 mil il or 11% against i Revenue and PBT corresponding period, mainly contributed by increase in non-interest income (NOII) of +2% PKR463.1 mil and lower provisioning by PKR1.1 13,223.5 12,978.9 bil Hi bil. Higher h NOII iis contr
Slide 38: Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Countryy Review Economic Update and Prospects Financial Results: First Quarter ended 31 March 2012 37
Slide 39: Malaysia: Sustained Economic Growth for 2012
Malaysia: Sustained Economic Growth for 2012 Growth to be moderate at 4 4.0% 0% ‐ 5.0% 5 0% in 2012 (2011: 5.1%) 5 1%) Inflation expected to moderate to 2 2.7% 7% in 2012 (2011: 3 3.2%) 2%) Q411 GDP: 160 +5.2% YoY 12 14 CPI and components (% YoY) 25 Quarterly GDP and annual growth rate Mar ‘12 CPI:
Slide 40: Malaysia: Banking Sector to Remain Healthy
Malaysia: Banking Sector to Remain Healthy Total Loans grew 12.2% YoY for 1Q12 (Maybank Domestic: 13.8% YoY) Total Deposits grew 13.7% YoY (Maybank Domestic 21.2%) Total Loans Total Loans YoY Growth Total Deposits Total Deposits YoY Growth 1250 25% Household YoY Growth Business YoY Growth 1,050 18%
Slide 41: Singapore: Growth has stabilised but inflation remains a concern
Singapore: Growth has stabilised but inflation remains a concern Singapore s economy remains on track to expand by 1‐3% in 2012, Singapore’s 2012 but R l GDP growth Real th ffor 2012 expected t d tto b be 1% – 3% renewed problems in the Eurozone and a persistent slowdown in (2011: 4.9% ) China’s m
Slide 42: Indonesia: Moderating but Respectable Growth for 2012
Indonesia: Moderating but Respectable Growth for 2012 ■ Q1 2012 GDP growth around 6.31%, lower than the growth in Q4 Real GDP Growth: Slowing growth 2011 at 6.49%. Slowing growth in Q1 2012 mainly come from (y-y) slowing growth of exports (7.81% in Q1 2012 compared to 7.91% 8.00% in Q4 2011) and inv
Slide 43: Prospects
Prospects Global GDP growth is forecast at 3% in 2012 (2011 est.3.8%) The Eurozone, US and China expected to record slower economic growth in 2012. Group expects to see reasonable business growth in 2012 – Malaysia: Economic Transformation Program (ETP) projects and relatively low interest rates
Slide 44: Malayan Banking Berhad Investor Relations Contact
MALAYAN BANKING BERHAD 14th Floor Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Investor Relations Contact Ronnie Royston Fernandiz Head Finance & Treasury Operations Head, Contact: (6)03-2074 8963 Email: ronnie@maybank.com.my Narita Na
Malayan Banking Berhad (Maybank) — Q1 FY2012 Earnings Presentation on 6ix