Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — 9MFY2022 Earnings Presentation

45 slides from Ammb Holdings Bhd's earnings presentation, Feb 25, 2022

  1. Slide 1: 9MFY2022 Results Investor Presentation

    9MFY2022 RESULTS INVESTOR PRESENTATION 25 FEBRUARY 2022

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 9MFY22 Financial snapshot 4 Repayment assistance 6 Loans by stages 7 Outlook for 2022

  3. Slide 3: 9MFY22 Financial snapshot

    Financial Snapshot 9MFY22 Financial snapshot 9MFY22 Financials Change Resumption of growth, in line with economic recovery 3,542 Income  3% • Strong growth in Banking revenues, partially offset by Insurance 9MFY21: 3,423 1,537 Expenses  (4%) • Expenses well-managed 9MFY21: 1,608 2,005 PBP  10% •

  4. Slide 4: Repayment assistance overview

    Repayment Assistance Repayment assistance overview Repayment assistance by type of borrowers SME: Repayment assistance by MIA status MIA 1 MIA 2 MIA ≥3 Retail SME Corporate 0.25 bil 0.09 bil 0.02 bil 3% 1% 0% 32% of total gross loans 29% of total gross loans 36.5 bil 33.7 bil 4.3 bil 2.6 bil 1 Total

  5. Slide 5: PHRA1 - Expiry and Rollover

    Repayment Assistance PHRA1 - Expiry and Rollover Total re-enrolment (a): Retail Retail SME (RSME) RM1.91 bil Re-enrollment Re-enrollment  (1.2)  (13.8) 20.4 0.4 2.4 1.6 2 1.1 6.6 0.6 3.8 0.1 0.2 12 Nov 21 18 Feb 22 Mar'22 Jun'22 12 Nov 21 5 Feb 22 Mar'22 Jun'22 (estimated) (estimated) (estimated)

  6. Slide 6: Loans by stages

    Loans Loans by stages Loans by ECL Stages (RM’ bil) Breakdown by Business Segments (%) Stage 1 BNM 6-month Stage 1 Stage 2 Stage 3 blanket loan Targeted Repayment Assistance PEMULIH WB moratorium 86% 107.4 110.6 111.9 114.8 115.6 115.6 119.3 RB 85% 2% 2% 2% 2% 2% 1% 1% BB 84% 12% 12% 13% 13% 13% 15%

  7. Slide 7: Outlook for 2022

    Market Outlook Outlook for 2022 GDP Growth Export growth 5.4% to 6.0% 8.0% to 10.0% MALAYSIA Inflation USD/MYR outlook 2.4% to 2.6% 4.20 to 4.25 Loans growth OPR 4.0% to 5.0% 2.00% to 2.5% (1 or 2 rate hike; +25bps each during H2FY22) BANKING SECTOR Asset Quality Liquidity & capital positions Stable

  8. Slide 8: GCFO Presentation: Financial Overview

    GCFO PRESENTATION Jamie Ling 8 - 24 Financial Overview

  9. Slide 9: Q3FY22 Financial overview

    Financial Overview Q3FY22 Financial overview 1 Capital, Liquidity and Funding • CET1 at 13.0%, adequate loss absorption capacity. CET1 at 11.9% (without Transitional Arrangements) • Highly liquid (FHC LCR of 164.0%, LDR 95.7%) 2 Q3FY22 Results (QoQ) • Income up 6% to RM1,183mil - Reported NII of RM8

  10. Slide 10: 9MFY22 Performance summary – P&L

    Financial Overview 9MFY22 Performance summary – P&L P&L Q2FY22 Q3FY22 QoQ Change 9MFY21 9MFY22 YoY Change (RM’ mil) Total Income 1,121 1,183  6% 3,423 3,542  3% Expenses 514 529  3% 1,608 1,537  (4%) PBP 607 654  8% 1,816 2,005  10% Net Impairment 174 337  94% 645 715  11% PATMI 321 403  26

  11. Slide 11: 9MFY22 Performance summary – balance sheet

    Financial Overview 9MFY22 Performance summary – balance sheet Balance Sheet Q2FY22 Q3FY22 QoQ Change FY21 9MFY22 YTD Change (RM’ bil) Gross Loans 115.6 119.3  3% 114.8 119.3  4% GIL 1.44% 1.35%  (9bps) 1.54% 1.35%  (19bps) LLC1 159.0% 164.4%  540bps 135.6% 164.4%  2880bps Customer Deposits 115

  12. Slide 12: Additional items to highlight

    Underlying Additional items to highlight P&L (RM’ mil) Q2FY22 Q3FY22 QoQ Change 9MFY21 9MFY22 YoY Change Income – Reported 1,121 1,183  6% 3,423 3,542  3% Net modification loss/ (unwinding) (a) (34) (48) 15 (115) Income after adjusted items 1,087 1,135  4% 3,438 3,427  Expenses 514 529  3% 1,60

  13. Slide 13: QoQ and YoY income growth driven by Banking revenues

    Income QoQ and YoY income growth driven by Banking revenues Business Segments Q2FY22 Q3FY22 QoQ Change 9MFY21 9MFY22 YoY Change (RM’ mil) Wholesale Banking 324 345  6% 1,104 983  (11%) Investment Banking 92 88  (4%) 247 279  13% Retail Banking 413 426  3% 1,180 1,264  7% Business Banking 126 1

  14. Slide 14: Improved operating leverage, CTI 43.4%

    PBP & PATMI Improved operating leverage, CTI 43.4% (47.0% a year ago) Business Segments Q2FY22 Q3FY22 QoQ Change 9MFY21 9MFY22 YoY Change (RM’ mil) Wholesale Banking 262 281  7% 900 794  (12%) Investment Banking 47 44  (6%) 115 150  31% Retail Banking 207 209  1% 540 636  18% Business Banking

  15. Slide 15: P&L walk

    Group P&L P&L walk NIM NoII % CTI Effective Tax Rate 9MFY22 2.06% 30.5% 43.4% 8.6% 9MFY21 1.85% 37.7% 47.0% 18.1% YoY Growth  9%  (16%)  >100%  3%  (4%)  10%  11%  10%  (47%)  23%  (28%)  28% 100 25 201 71 130 70 212 866 1,111 Net Interest Non-Interest Net mod Total Tax & RM’ mil Expense

  16. Slide 16: Progressive margin growth QoQ and YoY

    NIM Progressive margin growth QoQ and YoY YoY NIM Net Interest Margin (NIM) Movement (QoQ) 9MFY22: Reported: 2.06% ( 21bps) Underlying: 1.96% ( 10bps) 9MFY21: Reported: 1.85% Divisions Funding + Deposits Underlying: 1.86% Reported: bps Underlying: 12.1  6bps  2bps 1.1 4.2 0.0 3.2 0.1 209 203 9.0

  17. Slide 17: Non-interest income

    NoII Lower GTM trading gains and Insurance income, partially offset by higher Corporate and Investment Banking income YoY Growth  28%  (59%)  11%  (5%)  1%  (3%)  (23%)  (3%)  (27%)  (16%) 22 23 1 4 3 149 99 1 2 1,291 1,079 Corporate & Group Investment Group Wealth Business General Life RM

  18. Slide 18: Cost well-managed

    Expenses Cost well-managed Business Segments Q2FY22 Q3FY22 QoQ Change 9MFY21 9MFY22 YoY Change (RM’ mil) Wholesale Banking 62 64  4% 203 189  (7%) Investment Banking 45 44  (2%) 133 129  (3%) Retail Banking 207 217  5% 639 628  (2%) Business Banking 35 38  8% 113 108  (5%) Group Funding & Ot

  19. Slide 19: Broad-based loans growth

    Loans Broad-based loans growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers type: ROA1: RoTA1: Fixed rate – 21% Islamic – 33% Retail – 55% 0.93% 0.94% Variable rate –79% Conventional – 67% Non-retail – 45% YTD Growth  1%  6%  (4%)  5%

  20. Slide 20: Additional provisions for O&G sector

    Asset Quality Additional provisions for O&G sector Net Impairment (YoY Movement) Overlay: Gross Impaired Loans, GIL and LLC Ratios Q1FY22: 87.2 Q2FY22: 67.6 Retail Wholesale Loan Loss Coverage 1 RM’ mil Q3FY22: 44.9 Business GIL Ratio 100.5% 114.0% 93.4% 135.6% 103.4% 164.4% 1.70% 1.59% 1.73% 1.54%

  21. Slide 21: Maintaining surveillance on sector exposure

    Asset Quality Maintaining surveillance on sector exposure Impaired Loans by Sector Loans by Internal Risk Grade Mar’21 Dec’21 Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Sector Composition YTD Change 8% RM’ mil RM’ mil 4% RM’ bil Agriculture 80 10 1%  (88%) O&G Bond

  22. Slide 22: Highly liquid

    Deposits Highly liquid Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry 9MFY22 124.7  3%  4%1 9MFY22 37.4  5%  5%1 FY21 120.5  7%  6%2 FY21 35.8  24%  21%2 FY20 113.0  6%  2%2 FY20 28.8  16%  10%2 Retail

  23. Slide 23: Strong capital and liquidity position

    Capital Strong capital and liquidity position RWA/Total Assets FHC Capital Adequacy Ratios3 RM’ bil Total Assets RWA/Total Assets1 Peers 2 CET 1 / Tier 1 Total CAR 72.2% 65.0% 64.4% 66.7% 63.6% 15.8% 16.0% 15.4% 15.4% 13.6% 14.1% 14.5% 59.3% 58.4% 58.5% 57.2% 58.1% 11.9% 12.4% 11.9% 13.0% 11.1% 10.4

  24. Slide 24: 9MFY22 Summary

    Summary 9MFY22 Summary Income momentum improving Post MCO Adequate provisions Additional overlay provisions for O&G exposures Cost efficiency Maintaining positive JAWS Strong balance sheet position Capital build on track 24 9MFY22 Results – Investor Presentation

  25. Slide 25: Thank You

    THANK YOU

  26. Slide 26: Yearly performance

    9MFY22 Results Yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) (LATMI) / PATMI ROE (%) PATMI: ROE: Total Income Total Income Non-interest Income % YoY Growth  28.2% YoY Growth  3.2% CAGR FY18-FY21:  4.6% YoY Growth  3.5% 8.8% 9.2% 7.0% 7.

  27. Slide 27: Non-interest income and PATMI mix

    NoII & PATMI / (LATMI) Non-interest income and PATMI mix Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY)  (27%)  28%  98%  (21%) Others 1% Corporate Banking Group 9% 1 Funding  (59%) Insurance & Others 9%  (27%) 0%  (39%) Group Treasury & Market Others  4%  (

  28. Slide 28: Impairments

    Asset Quality Impairments Net Impairment / (Writebacks) and GIL Ratio Total impairments by category (RM’ mil) Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 QoQ Change 9MFY21 9MFY22 YoY Change ECL Stage 1 & 2 / CP – Non defaulted 31 121 454 310 122 124 (56)  (>100%) 606 190  (69%) ECL Stage 3 /

  29. Slide 29: Loans by sector vs industry

    Loans Loans by sector vs industry AmBank Group (RM’ bil) Loans Composition 2% 2% 13% 1% 4% 8% 5% 4% 6% 1% 54% ≈ 100% YTD Growth  (3%)  (9%)  3%  (3%)  (11%)  12%  26%  13%  (8%)  22%  4%  (15%)  4% Dec'21 119.3 64.2 4.2 10.0 5.4 7.1 2.6 2.7 15.1 1.2 5.6 1.2 0.0 Wholesale, Finance, Minin

  30. Slide 30: Divisional Performance

    Divisional Performance

  31. Slide 31: Wholesale Banking

    Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Total Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth:  (83%) YoY Growth:  (49%) Total Income 9MFY21: 573 9MFY22: 292 RM983 mil 248  1% 200 Transaction 143 125 127 Banking 17% 93  12% 22 Transaction Banking Wholesale 6

  32. Slide 32: Wholesale Banking

    Wholesale Banking Wholesale Banking Income Statement YoY Growth  1%  (39%)  (11%)  (7%)  (12%)  >100%  (51%)  (56%)  (49%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY22 780 203 983 189 794 427 366 74 292 9MFY21 773 331 1,104 203 900

  33. Slide 33: Investment Banking

    Investment Banking Investment Banking League Table Market Share of Value and Volume Traded on Bursa (KLSE)1 Market Share1 As At Trading Value Trading Volume Rank2 31 December 2021(%) 3.6% 3.6% 3.4% DCM (Overall MYR Bonds) 11.8% 4 3.2% 3.2% Islamic Sukuk 10.3% 4 5.0% 4.9% 4.8% 4.3% 4.0% Unit Trust

  34. Slide 34: Investment Banking

    Investment Banking Investment Banking Income Statement YoY Growth  27%  11%  13%  (3%)  31%  >100%  36%  41%  34% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY22 43 236 279 129 150 (10) 160 35 125 9MFY21 34 213 247 133 115 (4) 118 25 9

  35. Slide 35: Retail Banking

    Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business (LAT) / PAT Trend (RM’ mil) QoQ Growth:  (22%) Total Income YoY Growth:  58% RM1,264 mil  3%  23%  (9%) Others 3% Auto 9MFY21: 267 9MFY22: 423 Retail SME 10% 12%  (4%) 162 Wealth 146 Others 8% 7% 135 Retail

  36. Slide 36: Retail Banking

    Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth:  12% YoY Growth:  (12%) Merchant volume (RM'mil) QoQ Growth:  51% YoY Growth:  22% Merchants in force ('000) QoQ Growth: ≈ YoY Growth: ≈ 9MFY21: 4,310 9MFY22: 3,783 35 35 35 35 35 35 35 1,853 1,689 1,456 9MFY21: 6,4

  37. Slide 37: Retail Banking

    Retail Banking Retail Banking Income Statement YoY Growth  9% (2%)  7%  (2%)  18%  (57%)  58%  55%  58% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY22 1,069 195 1,264 628 636 81 555 132 423 9MFY21 982 197 1,180 639 540 188 352 85 267

  38. Slide 38: Business Banking

    Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) YTD Growth:  5% QoQ Growth:  >100% YoY Growth:  4% Non-trade Trade 18,070 17,278 17,329 17,374 16,497 16,626 15,867 4,945 9MFY21: 172 9MFY22: 178 4,231 4,725 4,676 4,675 4,191 4,257 12,240 12,395 12,553 12,653 12,699 13,1

  39. Slide 39: Business Banking

    Business Banking Business Banking Income Statement YoY Growth  18%  (3%)  13%  (5%)  20%  >100%  3%  2%  4% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY22 326 86 412 108 304 73 230 52 178 9MFY21 277 88 366 113 253 29 223 51 172 9MFY22

  40. Slide 40: Islamic Banking

    Islamic Banking Islamic Banking Income Statement YoY Growth  15%  (4%)  24%  51%  (17%)  >100%  (31%) RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ 9MFY22 778 213 565 419 146 33 112 9MFY21 676 222 454 278 176 13 163 9MFY22 PATZ 9MFY21 PATZ Positive growth in 9MFY22 Contrac

  41. Slide 41: General Insurance

    General Insurance General Insurance Loss Ratio and Combined Ratio PBT and PAT (RM’ mil) Loss Ratio Combined Ratio 92% 92% 93% 94% 91% 89% YoY PBT Growth:  (26%) YoY PAT Growth:  (28%) PBT PAT 282 57% 58% 60% 56% 57% 55% 260 262 242 FY18 FY19 FY20 FY21 9MFY21 9MFY22 222 Gross Premium Mix and Growth

  42. Slide 42: Insurance and Group Funding & Others

    Insurance & Others Insurance and Group Funding & Others Income Statement – Insurance (General, Life & Takaful) YoY Growth  (20%)  (18%)  (23%)  >100%  (23%)  (19%)  (24%) RM'mil Total Income Expenses PBP Impairment PBT Tax PAT 9MFY22 432 237 196 0 196 29 166 9MFY21 544 289 254 (1) 255 36 218

  43. Slide 43: Shareholding structure

    Corporate Structure Shareholding structure 21.6%1 AmCorp 11.8% EPF 9.3% PNB 8.8%2 Others 48.5% Based on ROD dated 31 December 2021 AMMB Holdings Berhad Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful 100% AMAB Holdings Sdn Bhd 100% AmBank (M) Berhad 51% Am

  44. Slide 44: Credit ratings, target price and recommendations

    Ratings & Target Price Credit ratings, target price and recommendations Credit Ratings 9MFY22 Ratings AMMB AmBank (M) AmBank Islamic AmInvestment RAM LT: AA3, ST: P1 LT: AA3, ST: P1 LT: AA3, ST: P1 LT: AA3, ST: P1 Outlook: Stable Outlook: Stable Outlook: Stable Outlook: Stable S&P LT: BBB+, ST: A-2

  45. Slide 45: Glossary & Disclaimer

    Glossary & Disclaimer Glossary & Disclaimer of warranty and limitation of liability Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market Growth Definition QoQ growth refers to Q3FY22 vs Q2FY22 YoY gr

AMMB Holdings Berhad — 9MFY2022 Earnings Presentation on 6ix