Alliance Bank Malaysia Bhd. · MYX:ABMB
Alliance Bank Malaysia Bhd — Alliance Financial Group Berhad — FY2013 Earnings Presentation
32 slides from Alliance Bank Malaysia Bhd's earnings presentation, May 21, 2013
Slide 1: Investor Presentation FY2013 Results
INVESTOR PRESENTATION FY2013 Results 21 May 2013
Slide 2: Contents
Contents 1 Executive Summary 2 Financial Results for 12 Months FY2013 3 Strategic Focus & Priorities
Slide 3: The Alliance Financial Group Today
The Alliance Financial Group Today We have Built a Strong Franchise in Consumer & SME Banking 7.0% growth in net profit of RM538.1 million Build Clear niche in Consumer & SME Banking: Consistent & Sustainable Increasing market share in target Financial segments with faster than industry loan P
Slide 4: Progress against 3-Year Medium Term Targets FY2012–FY2015
Progress: Medium Term Targets We are making good progress against our 3-Year Medium Term Targets FY2012 – FY2015 FY2011 FY2013 Asset Quality … net impaired loans to be better than industry average 1.9% 1.1% Non-Interest Income Ratio … to increase non-interest interest income to 30% of total revenue
Slide 5: Trend: Key Financial Ratios
Trend: Key Financial Ratios Improving Financial Performance, with Key Metrics in the Right Direction Return on Equity Non-Interest Income Ratio 15% 14.0% 13.8% 30% 28.7% 12.8% 28% 27.0% 10.5% 26% 10% 8.6% 24% 22.4% 22.4% 22% 20.8% 5% 20% FY2009 FY2010 FY2011 FY2012 FY2013 FY2009 FY2010 FY2011 FY2012
Slide 6: Summarised Income Statement
Summarised Income Statement Sustainable & Consistent Financial Performance: 7.0% NPAT Growth +5.2% rise in net Change interest income from FY2013 FY2012* 13.4% net loans growth, RM mil RM mil RM mil % but interest margins remain under pressure Net Interest & Islamic Banking +12.6% growth in non-
Slide 7: Summarised Balance Sheet
Summarised Balanced Sheet Net Loans Growth at 13.4% Y-o-Y, Driven By Consumer Lending Change FY2013 FY2012 Balance Sheet RM bil RM bil RM bil % +13.4% y-o-y net loans Total Assets 43.7 39.7 4.0 10.0% growth: above industry - targeting profitable Treasury Assets 12.6 11.5 1.1 9.6% consumer and SME
Slide 8: Key Financial Ratios
Key Financial Ratios Financial Ratios FY2013 FY2012* Change Non-interest income – improving Income Statement: steadily each year with focus on Non-Interest Income Ratio 28.7% 27.0% +1.7% building recurring fee income Cost to Income Ratio 47.9% 47.6% +0.3% Cost to income ratio – rise due to conti
Slide 9: Contents
Contents 1 Executive Summary 2 Financial Results for 12 Months FY2013 3 Strategic Focus & Priorities
Slide 10: Net Income
Net Income Steady growth in net income driven by higher loans growth RM mil Net Income Trend Net Income: Quarterly Trend 1600 RM mil 360 355.0 1400 1,333.0 1,244.3 339.0 340 1200 1,128.7 319.3 319.7 1,054.0 1,064.5 320 313.9 1000 300 800 280 600 260 400 240 200 220 FY2009 FY2010 FY2011 FY2012* FY201
Slide 11: Net Interest Margin
Net Interest Margin Net Interest Margin Continues To Be Under Pressure NIM and Cost of Funds Trend Continuing margin compression due to: NIM COF Run off from repayments of higher yielding loans: 3.0% Co-op loans – down from RM1,023.1 2.8% million as at March 2011 to RM510.8 2.7% 2.7% million a
Slide 12: Non-Interest Income
Non-Interest Income Non-Interest Income Ratio at 28.7%, with growth in recurring fee income Non-Interest Income Trend Non-Interest Income Trend Non-Interest Income NII/ Total Income RM mil RM mil 28.7% 30% 27.0% 120 110.3 400 360.4 25% 22.4% 22.4% 100 20.8% 320.2 88.4 86.9 300 82.4 80.8 20% 80 235.0
Slide 13: Non-Interest Income
Non-Interest Income Recurring investment and fee income Composition of Non- Non-Interest Income Contribution Interest Income FY2013 RM mil Fee Income Investment Income Other Income Forex and Others 400.0 revaluation 13.9% 360.4 gain 350.0 320.2 17.1% 50.0 300.0 18.5 Investment 250.0 235.0 233.2 225.
Slide 14: Operating Expenses
Operating Expenses Cost-to-income Ratio remains stable at 47.9% Operating expenses trend Composition of operating expenses RM mil % Operating expenses CIR 900 60 FY2013 FY2012 AE, AE, 53.0% PE, ME, 8.5% 52.1% ME, 8.2% 3.5% PE, 800 65.3% 48.3% 47.6% 47.9% 3.5% 63.6% 50 700 639.3 591.8 600 559.4 554.6
Slide 15: Gross Loans Growth
Gross Loans Growth Net Loans Growth Accelerated to 13.4% Y-o-Y, Driven By Consumer Lending Net Loans Growth Trend Loans Composition by Business Segments RM bil 19.8% 20% Consumer SME Wholesale 33 13.4% 10.6% 11.8% 100% 30 10% 23.0% 22.7% 23.7% 24.2% 22.9% 5.7% 27.8 80% 27 24.5 21.4% 20.5% 21.3% 21.9
Slide 16: Loans Growth: Residential & Commercial
Loans Growth: Residential & Commercial Residential Properties expanded 18.9% Y-o-Y, above industry loans growth Loans Growth for Residential Property Loans Growth for Commercial Property RM bil +RM1.8 b; RM bil +RM0.4 b; 32.9% +18.9% 40% 40% +11.0% 14 18.9% 5 12.4% 20% 17.9% 8.8% 12.2% 11.0% 20% 12
Slide 17: Loans Growth: SME & Motor Vehicles
Loans Growth: SME & Motor Vehicles Lending for SMEs expanded 10.3% y-o-y; Resumed growth in Hire Purchase Loans Growth for SME Loans Growth for Transport Vehicles RM mil 1,190.2 RM bil +RM0.6b; 1200 +10.3% 8 20% 14.4% 7 8.9% 10.3% 1000 +RM176.1 m; 10% 907.6 5.0% 6.0 +31.3% 6 1.9% 5.5 800 737.9 0% 70
Slide 18: Composition of Loans Portfolio
Composition of Loans Portfolio Well Diversified & Secured Loans Portfolio Loans Composition by Economic Purposes FY2013 FY2012 Purchase of Purchase of residential residential Others property property Purchase of 7.2% Others 41.1% 39.0% transport 8.1% Purchase of vehicles transport 2.6% vehicles 2.2%
Slide 19: Continued Improvement in Asset Quality
Asset Quality Continued Improvement In Asset Quality – Net Impaired Loans Ratio Down to 1.1% Gross Impaired Loans Net Impaired Loans RM mil 875.1 (%) 1.8 806.3 775.5 1.5 1.4 1.4 629.2 1.3 579.2 1.2 1.2 1.1 FY2009 FY2010 FY2011* FY2012* FY2013 1QFY12* 2QFY12* 3QFY12* 4QFY12* 1QFY13 2QFY13 3QFY13 4QFY
Slide 20: Impairment Provisions
Impairment Provisions Net write back in provisions due to recoveries, despite double digit loans growth Net Write-back of Impairment Provision Loan Loss Coverage RM mil 25.0 87.7% 25 24.1 86.6% 86.4% 83.8% 20 82.5% 15 10 FY2012 1QFY13 2QFY13 3QFY13 4QFY13 RM’000 FY2013 FY2012 5 Individual assessment
Slide 21: Balance Sheet Management
Balance Sheet Management Effective Utilisation of Balance Sheet: Net loans constitute 63.6% of total assets Total Assets Trend Composition of Total Assets Net Loans Treasury Assets Other Assets FY2013 FY2012* RM bil Other Assets 50 Other Assets 9.3% 43.7 7.6% 45 39.7 Investment Investment 3.3 40 36.
Slide 22: Customer Deposits
Customer Deposits 11.9% Growth in Customer Deposits, with CASA ratio at 33.6% Steady growth in CASA deposits of 11.6% to RM12.1 billion RM bil CASA trend 40 Customer Deposits Trend DD SA FD NID, MMD, SD RM bil 36.0 40 35 36.0 32.2 6.8 32.2 30 28.4 5.8 30 28.4 25.6 4.2 25.6 25 23.6 23.6 3.0 1.6 20 17
Slide 23: Customer Deposits
Customer Deposits Strong liquidity position with Loans to Deposits Ratio at 78.4% (%) Deposits Composition by Customer Type Loans to Deposit Ratio Trend 95 90.6 Domestic Others 90 financial 8.3% Institutions 85 6.7% 80 78.8 77.7 78.4 Govt. & 76.4 statutory Individuals 75 bodies 45.0% 4.1% Business 7
Slide 24: Enhance Shareholder Value
Enhance Shareholder Value Return on Equity stood at 13.8%, with Earnings per Share registering consistent y-o-y growth RM mil Profit Before Tax RM mil Net Profit After Tax 800 714.0 600 538.1 674.6 503.1 600 553.1 409.2 400 408.9 301.5 400 303.3 228.9 200 200 0 0 FY2009 FY2010 FY2011 FY2012* FY2013
Slide 25: Enhanced Shareholder Value
Enhanced Shareholder Value FY13: Progressively raising Dividend Payout in line with policy of paying up to 50% of Net Earnings Dividend Yield (%) Dividend Per Share (Sen) % sen 20 1st interim 2nd interim 4 3.70 3.77 3.42 16.60 3 15 13.30 2.22 2.21 10.00 2 10 7.70 7.00 6.25 6.40 1 5 3.70 3.75 5.10 5.
Slide 26: Effective Capital Management
Effective Capital Management Basel III: Capital Adequacy Ratios by Legal Entities CET 1 Tier 1 Capital Total Capital Risk Weighted Capital Ratio Legal Entities Capital Ratio Ratio Ratio AFG 10.62% 12.06% 14.77% 16.18% ABMB 11.51% 12.90% 12.90% 15.40% 15.13% 14.65% 14.77% AIS 12.32% 12.32% 13.11% AIB
Slide 27: Contents
Contents 1 Executive Summary 3 Financial Results for 12 Months FY2013 2 Strategic Focus & Priorities
Slide 28: FY2013 Business Focus
FY2013 Business Focus Aspirations How We Achieve Aspirations Implemented in FY2013 Re-organised Business Banking for To Build Generate recurring revenue accelerated SME growth “Consistent & from existing or new business, Re-commenced Hire Purchase Sustainable within our risk appetite business Fi
Slide 29: Gaining Market Recognition and Winning Banking Awards
Gaining Market Recognition and Winning Banking Awards Financial Insights VISA Malaysia Bank Malaysia’s 100 Innovation Award Awards 2012 Leading Graduate “Excellence in SME Highest Payment Volume Employers 2012 Banking” 2012 Growth for Visa Platinum 76th Place Card Enterprise & IT Architecture Global
Slide 30: Franchise Building: Launched Business Initiatives
Franchise Building: Launched Business Initiatives Visa Infinite My Business Platinum Card AirAsia Big Rewards eAlliance Share Mobile Trader Launch of Bangsar Baru branch CGC Signing Ceremony 29
Slide 31: FY2014 Priorities
FY2014 Priorities FY2014 Strategic initiatives aligned with Group’s Medium Term Targets FY2012 – FY2015 of Delivering Consistent and Sustainable Financial Performance FY2014 Expectations Our Priorities GDP growth of 5.5% Continue building on our strengths OPR to remain unchanged at 3.0% and ni
Slide 32: Thank You
THANK YOU Disclaimer: This presentation has been prepared by Alliance Financial Group Berhad (the “Company”) for information purposes only and does not purport to contain all the information that may be required to evaluate the Company or its financial position. No representation or warranty, expres
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