Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Investor Day (October 2022)
19 slides from Malayan Banking Bhd's investor day presentation, Oct 27, 2022
Slide 1: Investor Day 2022: From Good to Great
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Slide 2: The M25 Strategy Rolled Out In 2021 Has Guided Us to Maintain Our Position
The M25 Strategy Rolled Out In 2021 Has Guided Us to Maintain Our Position Despite the Challenges Posed by the Pandemic and External Headwinds Selected Achievements (1H 2022) Top Rated Customer Experience 2020 1H 2022 ROE 8.1% 9.3% Sustainable Regional GIL 2.23% 1.81% ROE ESG Leader SUSTAINABILITY H
Slide 3: We Have Refined Our Strategy to be Agile to Drive Sustainable Returns
We Have Refined Our Strategy to be Agile to Drive Sustainable Returns in an Uncertain World Due to the Pandemic and Global Socio-economic Challenges… World Uncertainty Index Return on Equity (ROE) % 60,000 Increasing Covid-19 12.2 Covid-19 trend Pandemic US 50,000 11.5 Presidential European election
Slide 4: Premised on Key Macrotrends Requiring Our Response
… Premised on Key Macrotrends Requiring Our Response 1 2 3 4 5 Global New Digital War Changing Customer Agility needed in Sustainability Economies for Talent Preferences volatile market • Increased • Big tech • Talent mix change • More customers • Increase market preferences of companies with embedd
Slide 5: Maybank's New M25+ Growth Strategy is Anchored on a Greater and Deeper Purpose
Maybank’s New M25+ Growth Strategy is Anchored on a Greater and Deeper Purpose Digital eco-system Global players players Niched local players Infusing the principles of ethical banking (fairness, inclusivity, Orchestrating digital ecosystems and integrating preservation of environment and exclusion
Slide 6: Building on the M25 Foundation, M25+ Will Reinforce Differentiation and Focus
Building on the M25 Foundation, M25+ Will Reinforce the Push for Differentiation and Focus Across Five Strategic Thrusts Refined Strategic Thrusts M25 M25+ 1 Continuous improvement Full agile and iterative Minimum Viable Product Intensify Customer Centricity approach to meet customer (MVP) approach,
Slide 7: Resulting in a Formulation of 12 Strategic Programmes to Propel Us Forward
…Resulting in a Formulation of 12 Strategic Programmes to Propel Us Forward PMO Institutionalise Group-wide Programme Management Office Go beyond rigorous progress tracking, managing interdependencies and problem resolution to ensure full infusion of ethical banking, regional integration, cross-sect
Slide 8: Strategic Programmes SP1-SP3 (1/2)
(1/2) PMO Institutionalise Group-wide Programme Management Office Go beyond rigorous progress tracking, managing interdependencies and problem resolution to ensure full infusion of ethical principles, regional integration, cross-sector collaboration and Agile ways of working SP1 Reshape wholesale SP
Slide 9: Strategic Programmes SP7-SP9 (2/2)
(2/2) PMO Institutionalise Group-wide Programme Management Office (con’t) Go beyond rigorous progress tracking, managing interdependencies and problem resolution to ensure full infusion of ethical principles, regional integration, cross-sector collaboration and Agile ways of working SP7 Uplift Indon
Slide 10: M25+ Sharpens Our Focus By Defining Our Group Portfolio in Three Archetypes
M25+ Sharpens Our Focus By Defining Our Group Portfolio in Three Archetypes Universal Play Focused Play Strategic Footprint Universal offering; Focused propositions; Serves strategic imperatives; Participation in all segments and Opportunistic on key segments Lean setup to connect customers, core pr
Slide 11: In the Next Three to Five Years, We Will Invest RM3.5 - 4.5 bil
In the Next Three to Five Years, We Will Invest RM3.5 - 4.5 bil to Accelerate the Development of New Capabilities for Long-Term Growth Total investment 24% One-off over multiple years RM3.5 - 100% 53% 4.5 bil Investment 23% Total Tech for Tech Tech for Business People and other investments • Data pl
Slide 12: We Will Leverage Enterprise Platforms and Emerging Tech Platforms
We Will Leverage Enterprise Platforms and Emerging Tech Platforms to Deliver M25+ Strategic Programmes M25+ TECHNOLOGY ENABLEMENT EMERGING TECH AI Data Big data DevOps Automation Distributed Enterprise Platforms API RPA Bots Chatbot Cloud Event Driven Science Micro-services ENTERPRISE PLATFORMS REGI
Slide 13: A Series of Key Tech for Tech Initiatives are Planned to Deliver M25+
A Series of Key Tech for Tech Initiatives are Planned to Deliver M25+ Channel/Customer STP and API Cloud and Automated • End-to-end STP with API and micro service layer enabling integration with ecosystems within and Infrastructure Enablement and beyond banking Integration • Transition to cloud via
Slide 14: Planned IT Investment Will Bring Us on Par With Top Regional Banks
The Planned IT Investment for M25+ Will Bring Us on Par With the Average of Top Regional Banks Group IT spend1 as % of revenue vs. peers, 2018-2021 5.2-7.4% Target to be >5% in 2025 1.5-3.3% 5.2% 2.5% 1.5% Local players2 Regional players3 Notes: 1. Includes expenses paid for communications, data pro
Slide 15: Two Years to Market Traction, Three To Five Years to Steady State Realisation
Two Years to Market Traction, Three To Five Years to Steady State Realisation Horizon 1 Horizon 2 Horizon 3 Q4 2022 – Q4 2023 Q1 2024 – Q4 2024 2025 and beyond All Strategic Programmes launched Market traction and recognition of Full value of Strategic (sequential approach within each) new Maybank D
Slide 16: Increased Investment in Next Three to Five Years to Drive Business Growth
Increased Investment in Next Three to Five Years to Drive Success of Reinforcing Business Growth with Digital and Technological Capabilities Cost to Income Ratio (CIR) projection for Maybank Group (%) Target ROE 45.4 45.3 45.1 ~45 Short-term increase in CIR due to upfront investments 11%-12% 2020 20
Slide 17: We Have Embarked on a Journey to Re-wire Our DNA and Apply Agile Ways
We Have Embarked on a Journey to Re-wire Our DNA and Apply Agile Ways of Working for the Success of M25+ and Beyond We will tighten integration across sectors and geographies to The nature of teams collaborate and create synergies We want to inculcate a "fail fast" mindset; The ways of working short
Slide 18: Full Realisation of M25+ Will Holistically Transform Maybank's Performance
Full Realisation of M25+ Will Holistically Transform Maybank's Performance FY21 FY25 GROWTH PERFORMANCE PROFITABILITY FY25 FY21 9.8% 11-12% ROE ROE target 2.3% 2-3x Top-line CAGR 17-21' Top-line CAGR 21-25' 45.3% ~45% CIR CIR 25% ~32% Fee Income Percent Fee Income Percent NON-FINANCIAL METRICS -4% ~
Slide 19: Malayan Banking Berhad
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 purport to contain all the in
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