Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — 9M FY2012 Earnings Presentation
46 slides from Malayan Banking Bhd's earnings presentation, Nov 9, 2012
Slide 1: Investor Presentation: Financial Results 9 Months FY2012
Investor Presentation Financial Results 9 Months FY2012 ended 30 September 2012 9 November 2012 www.maybank.com 0
Slide 2: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects 1Financial Results: 9 Months FY2012 ended 30 September 2012
Slide 3: Key Highlights: Strong PATAMI growth of 18.2% YoY for 9M FY2012
Key Highlights: Strong PATAMI growth of 18.2% YoY for 9M FY2012 Third Quarter Performance Nine Months Performance PATAMI rose 4.4% QoQ to RM1.50 billion PATAMI grew 18.2% YoY to RM4.29 billion, an Despite tighter market conditions, the Group annualised ROE of 16.3%, ahead of target maintained
Slide 4: Stable growth expected for the remainder of FY2012
Stable growth expected for the remainder of FY2012 Return on Equity Net Interest Margin Expected to be in line with Group target Pricing discipline with continued focus on improving funding structure Loans growth Malaysia: Stable QoQ growth on the back Asset Quality of sustained business & con
Slide 5: Key Performance Indicators for 9 months FY12
Key Performance Indicators for 9 months FY12 FY2012 9M FY12* Industry Target Headline KPIs Return on Equity 15.6% 16.3% Loans and Debt Securities 15.2% 9.9% Growth Other targets Group Loans Growth 16.2% 10.4% • Malaysia 13.6% 12.4% 11.2% • Singapore ** 11.4% 2.1% 9.5% • Indonesia** 20.9% 17.3% 21.2%
Slide 6: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects 5Financial Results: 9 Months FY2012 ended 30 September 2012
Slide 7: 3Q FY12 PATAMI rose 4.4% QoQ to RM1.50 billion
3Q FY12 PATAMI rose 4.4% QoQ to RM1.50 billion with an EPS of 19.11 sen Quarter RM million 3Q FY12 2Q FY12 QoQ 1Q FP11 YoY Sep 2012 Jun 2012 Change Sep 2011 Change (Restated) * Net interest income 2,158.9 2,106.3 2.5% 1,873.6 15.2% Net Fund based income (Islamic Banking) 486.1 441.3 10.2% 438.5 10.8
Slide 8: 9M FY12 PATAMI grew 18.2% YoY to RM4.29 billion
9M FY12 PATAMI grew 18.2% YoY to RM4.29 billion, supported by an 14.8% YoY increase in net income Nine Months RM million 9M FY12 9M ended YoY Sep 2012 Sep 2011 Change (Restated) * Net interest income 6,285.9 5,471.8 14.9% Net Fund based income (Islamic Banking) 1,303.0 1,133.9 14.9% Total net fund b
Slide 9: Strong Balance Sheet: Total Assets grew 7.1% annualised
Strong Balance Sheet: Total Assets grew 7.1% annualised to RM476.9 billion 9m FY12 30 Sep 30 Sep 31 Dec 2011 YoY RM billion Annualised 2011 2012 (restated)* Growth Growth (restated)* Cash and short-term funds 44.3 49.1 -12.9% 40.7 8.9% Deposits and placements with financial institutions 7.1 6.5 12.7
Slide 10: Gross loans grew 10.4% annualised
Gross loans grew 10.4% annualised (11.4% YoY), led by a 12.6% growth in Community Financial Services and 12.4% growth in Global Wholesale Banking 9m FY12 30 Sep 30 Jun QoQ 31 Dec 30 Sep YoY RM billion Annualised 2012 2012 Growth 2011 2011 Growth Growth Community Financial Services 132.1 127.9 3.2% 1
Slide 11: Group LDR rose to 90%, within target of 85-90%
Group LDR rose to 90%, within target of 85-90%, due to chunky deposits but offset by improved liquidity in Singapore and BII Malaysia Singapore BII Group Annualised YoY Annualised YoY Annualised YoY Annualised YoY RM bil SGD bil Rp tril RM bil Growth Growth Growth Growth Growth Growth Growth Growth
Slide 12: Asset Quality continues to improve
Asset Quality continues to improve with Net Impaired Loan Ratio at 1.22% from 2.18% in September 2011 and charge off rate of 23bps is well within guidance Allowance for losses on loans Impaired Loans Ratio Net Impaired Loan Ratio Gross impaired loan ratio +120.7% YoY 4.67% 482.7 4.60% 4.20% -11.4% 3
Slide 13: Group Fee-based Income increased 14.8% YoY to RM4.78 billion
Group Fee-based Income increased 14.8% YoY to RM4.78 billion* +21.5% 4,068 9 months ended 30 Sep 2011 9 months FY12 ended 30 Sep 2012 3,348 +14.5% 2,633 2,300 +62.9% +84.8% +25.3% -9.8% -42.6% +72.0% 645 607 367 522 515 348 321 314 283 213 -101 -15 RM million Total non- Commission, Investment & Unre
Slide 14: Improved cost to income ratio of 48.2% for 9M 2012
Improved cost to income ratio of 48.2% for 9M 2012 from 50.2% a year ago 3Q FY 12 9 months FY12 Admin, general expenses, fees & brokerage & establishment costs Overhead Expenses Marketing Expenses QoQ YoY YoY Personnel costs 1.7% 16.4% 19.3% IT Expenses IT Expenses 2.6% 2.3% -2.9% Personnel costs +1
Slide 15: Capital Adequacy remained strong
Capital Adequacy remained strong with DRP and the private placement of Maybank shares completed in October 2012 Adjusted for dividend payment and reinvestment made under Based on 88.19% Proforma after the Dividend Reinvestment Plan (DRP) reinvestment rate^ equity issuance+ 16.71% 16.29% 15.50% 15.39
Slide 16: Maybank Group: Key Ratios
Maybank Group: Key Ratios 9M FY12 3Q FY12 1H FY12 2Q FY12 1Q FY12 FP11 FY11 Net Interest Margin 2.41% 2.42% 2.40% 2.42% 2.38% 2.53% 2.56% Return on Equity** 16.3% 17.1% 16.1% 16.4% 16.0% 16.2% 15.2% Fee to Income Ratio 38.7% 36.0% 40.0% 39.2% 40.8% 37.6% 36.6% Cost to Income # 48.2% 48.9% 47.8% 46.9
Slide 17: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects 16 Financial Results: 9 Months FY2012 ended 30 September 2012
Slide 18: Revenue and PBT growth across most sectors
Revenue and PBT growth across most sectors +14.8% Global Wholesale Banking (GWB) +29.7% 9 Months ended 30 Sep 2011 9 Months ended 30 Sep 2012 12,372 10,774 Revenue (RM million) +2.8% +39.3% +6.6% +57.6% +21.7% -17.5% 4,977 3,915 4,842 3,216 1,546 1,228 1,110 1,309 634 1,000 903 745 Total Community C
Slide 19: Revenue grew due to higher net fund based and fee-based income
Revenue grew due to higher net fund based and fee-based income Net Fund Based Income rose 14.9% 9 Months ended 30 Sep 2011 Global Wholesale Banking (GWB) +13.7% 9 Months ended 30 Sep 2012 +14.9% 7,589 6,606 +3.4% +39.0% -15.0% -8.2% +22.3% +29.8% RM million 3,768 3,645 2,603 2,128 726 1,009 528 61 4
Slide 20: Increasing revenue and PBT contribution from international operations
Increasing revenue and PBT contribution from international operations 9M FY2012 Revenue Profit Before Tax Gross loans* (Jan 12 – Sep 12) International: 5.0% International: 8.0% International: 6.4% 36% 30% 36% 8.1% 16.0% 7.0% 15.0% 21.1% RM304.8b RM12.37b RM5.95b 15.0% 64.0% 64.4% 70.0% Malaysia Sing
Slide 21: Mortgage grew 15.2% annualised with increased market share
Mortgage grew 15.2% annualised with increased market share and asset quality improvement Continued growth despite intense competition Asset quality continued to improve +16.4% YoY +15.2% annualised 2.8% 45.2 46.9 2.2% 42.1 43.4 1.9% 40.3 6.6 7.1 1.6% 5.3 5.7 6.1 RM billion 1.3% 35.0 36.4 37.3 38.6 3
Slide 22: Auto Finance business improved in volume and market share
Auto Finance business improved in volume and market share Auto Finance* grew 13.6% annualised in Sep 2012 Asset quality remained stable with increasing market share +14.8% YoY 20.4% 19.9% 20.2% +13.6% annualised 19.4% 29.1 29.9 19.0% 27.2 28.0 26.1 RM billion 0.6% 0.6% 0.5% 0.5% 0.5% Sep 11 Dec 11 M
Slide 23: Cards continued to gain market share
Cards continued to gain market share Cards Market Share Cards performance outperformed industry Sep 12 Sep 11 YoY Maybank Industry* Cardbase 18.4% 17.7% Cardbase 1.9% -2.1% Billings 25.7% 23.7% Billings 17.8% 8.6% Receivables 15.2% 15.0% Receivables 4.8% 3.5% Merchant Sales 32.3% 28.6% M erchant Sal
Slide 24: Business Banking and SME: Expanding loans and deposits base
Business Banking and SME: Expanding loans and deposits base, improving asset quality Loans grew 9.0% annualised in Sep 2012 Deposits growth at 7.9% on annualised basis +12.3% YoY +13.4% YoY +7.9% annualised +9.0% annualised 27.6 51.5 53.2 53.7 26.9 50.7 25.8 25.5 47.3 24.6 RM billion RM billion Sep
Slide 25: GWB: Loans grew moderately at 4.0% YoY
GWB: Loans grew moderately at 4.0% YoY, driven mainly by Term Loans while major recoveries improved the gross impaired loan ratio Total GWB loans increased by 4.0% YoY Maintaining a strong position in terms of Trade Finance to RM60.2 billion. Market Share3. RM billion 35.3 26.9% +21.5% 26.7% 26.6% T
Slide 26: Global Markets: 7.2% revenue growth
Global Markets: 7.2% revenue growth supported mainly by 21.0% YoY increase in Non-Interest Income PBT and Revenue grew 2% and 7% YoY respectively. Credit Rating for Private Debt Securities in Malaysia as at September 2012. +2.1% Non-Interest Income +7.2% Net Interest Income 1,539 1,571 1,890 SA (Gov
Slide 27: Maybank Kim Eng: Total Income for Malaysia grew 54% YoY
Maybank Kim Eng*: Total Income for Malaysia grew 54% YoY 9M FY2012 Total Income (RM mil) Total Income for Malaysia rose 54% YoY Malaysia, +54.0% YoY Others, 468.4, 45% 55.7, 5% 468.1 34.2 4.8 Indonesia, RM million 25.5, 3% 304.2 Other 1,040.2 14.1 income Philippines, 19.4 Fund based 80.6, 8% 429.1 F
Slide 28: Maybank Kim Eng: Maintains leading position in Malaysia
Maybank Kim Eng: Maintains leading position in Malaysia, ranking Top 3 across all league tables 9M FY2012 Maybank IB’s (Malaysia) Industry Position & Recent Notable Deals Market Share San Miguel Corp’s Acquisition of Esso Malaysia Berhad EXPORT IMPORT BANK OF MALAYSIA Industry Total Deals Sime Darby
Slide 29: Group Islamic Banking: PBT grew by 43.8% YoY
Group Islamic Banking: PBT grew by 43.8% YoY to RM1.1 billion Group Islamic Banking Income and PBT* Market Share Aug 12 Aug 11 9M FY12 9M ended YoY AITAB 29.9% 32.6% RM million ** Sep 2012 Sep 2011 Growth Mortgage 20.3% 19.4% Term financing 24.4% 23.5% Fund based income 1,303.0 1,133.9 14.9% Fee bas
Slide 30: Etiqa: No. 1 Position in Life/Family, General Insurance and Takaful
Etiqa: No. 1 Position in Life/Family (new business), General Insurance and Takaful Business Premium Loss Ratio Single Premium +196.1% 9M FY12 3Q12 89.5% MAT Regular Premium +3.8% 1Q 9MFP11 3Q11FY11 84.9% 75.1% 78.4% Motor Credit Premium +33.3% 74.8% 75.0% Group Premium -27.7% 64.6% Overall 64.1% 61.
Slide 31: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects 30 Financial Results: 9 Months FY2012 ended 30 September 2012
Slide 32: Singapore: 9M PBT rose 2.8% YoY to SGD307m
Singapore: 9M PBT rose 2.8% YoY to SGD307m driven by higher fund based income, lower net provision and marked-to-market gain Revenue and PBT rose 0.1% and 2.8% YoY respectively Diversified Loan Portfolio 2.1% annualised 9M 9M 24.2 24.6 24.9 Other (Consumer) YoY 1.1 1.2 SGD million FY12 FY11 1.5 Grow
Slide 33: BII: PATAMI grew strongly by 66% YoY
BII: PATAMI grew strongly by 66% YoY, NIM has improved and continuing efficiencies in Operating Expenses Consolidated Income Statement* Growth In IDR Billion Sep-11 Sep-12 YoY Interest Income 5,864 6,956 19% Interest Expenses (2,778) (3,012) 8% Net Interest Income 3,086 3,944 28% Non Interest Income
Slide 34: BII: Strong loans growth of 22% YoY
BII: Strong loans growth of 22% YoY accompanied by improved asset quality Loans composition (IDR trillion) Net Interest Margin (YTD) +22.4% YoY +17.3% ann. 5.89% 5.88% 73.5 75.9 67.2 69.8 62.0 (38%) 26.9 (35%) 5.51% (40%) 25.4 25.8 (37%) 26.6 (36%) 24.5 19.9 (27%) 21.1 (28%) 5.53% 14.7 (24%) 16.7 (2
Slide 35: BII: Branches and touch points expansion on track
BII: Branches and touch points expansion on track PATAMI Branches and ATM 922 822 1,218 1,237 1,152 1,190 725 1,088 669 1,009 1,017 634 893 952 485 469 461 337 344 346 351 368 375 389 295 327 -41 2004 2005 2006 2007 2008 2009 2010 2011 9 months 2012 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 J
Slide 36: WOM Finance: Asset quality improving but sales affected
WOM Finance: Asset quality improving but sales affected by new regulations Revenue and PBT (IDR billion) Unit Financing (000 unit) Stand alone -1.1% Consolidated -7.5% 1,198 1,185 424 392 in IDR Billion 374 311 -505% 50 58 9 0 23 (37) YTD Sep 11 YTD Sep 12 New Used Refinancing Total Total Revenue Pr
Slide 37: An Binh Bank: Improved profitability
An Binh Bank: Improved profitability Revenue and PBT Revenue rose 4.6% VND1,329.6 bil for the nine +4.6% months ending September 2012. However, overheads 1,329.6 1,270.9 increased by 32% to VND747.8 bil as a result of higher staff costs (+VND47.9 bil). PBT rose 63.9% to VND540.1 bil, attributabl
Slide 38: MCB Bank: PBT rose 6.7% YoY
MCB Bank: PBT rose 6.7% YoY PBT rose by 6.7% or PKR1.6 bil to PKR25.9 bil for Revenue and PBT the first nine months of the year. The improved +5.6% result was supported by increase in revenue by 36.4 38.5 PKR2.1 bil, despite the higher overheads incurred +6.7% by PKR0.5 bil. 25.9 PKR Billion 24.3
Slide 39: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects 38 Financial Results: 9 Months FY2012 ended 30 September 2012
Slide 40: Malaysia: Sustained economic growth for 2012-2013
Malaysia: Sustained economic growth for 2012-2013 Real GDP Growth: 5% in 2012 and 4.8% in 2013 as resilient Inflation: Moderate at 1.7% in 2012 and 2.7% in 2013 (2011: domestic demand counters soft external demand 3.2%) amid gradual subsidy rationalisation 2Q12 GDP: CPI and components (% YoY) Quarte
Slide 41: Malaysia: Banking sector to remain healthy
Malaysia: Banking sector to remain healthy Total Loans grew 11.9% YoY in Sep12 (Maybank Domestic:12.7%) Total Deposits grew 11.4% YoY (Maybank Domestic: 11.8%) 1,200 Total Loans Total Loans YoY Growth 20% 1,400 Total Deposits Total Deposits YoY Growth 25% Household YoY Growth Business YoY Growth 1,1
Slide 42: Singapore: Economy to grow below trend in 2012 and 2013
Singapore: Economy to grow below trend in 2012 and 2013 on weak external conditions Singapore‟s GDP growth for 2012 could come in at the lower half of the Real GDP growth for 2012 expected to be 1.5%–2.5% official forecast 1.5-2.5% after total output rose by a disappointing 1.5% (2011: 4.9% ) y-o-
Slide 43: Indonesia: Domestic demand supporting growth
Indonesia: Domestic demand supporting growth ■ GDP growth was sustained at above 6% in 1H 2012 (6.3% YoY), on (y-y) Real GDP growth: Improving growth the back of consumer spending (5.0% YoY), public consumption 8.00% (6.5% YoY) and investment (11.2% YoY). 7.00% ■ IDR remains under pressure due to vo
Slide 44: Prospects
Prospects The recession in the Eurozone, and slowing growth in China, is adversely affecting the Asian Newly Industrialised Economies (“NIEs” – Hong Kong, Singapore, South Korea and Taiwan). However, the ASEAN 5, comprising of Indonesia, Malaysia, Philippines, Thailand and Vietnam, is expected to
Slide 45: Prospects (cont.)
Prospects (cont.) Regionalisation continues to be a major theme for the Group. We are in the process of building a truely regional organisation with good governance and IT infrastructure to anchor widening business capability in global wholesale banking, investment banking, credit cards, treasury
Slide 46: Malayan Banking Berhad contact and investor relations
MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Investor Relations Contact Mohamed Rafique Merican Group Chief Financial Officer Contact: (6)03-2074 7878 Email: rafique@maybank.com.my Narita Naziree Head, Group
Malayan Banking Berhad (Maybank) — 9M FY2012 Earnings Presentation on 6ix