Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — 9MFY2024 Earnings Presentation
39 slides from Ammb Holdings Bhd's earnings presentation, Feb 26, 2024
Slide 1: 9MFY2024 Results Investor Presentation
9MFY2024 RESULTS (31 DECEMBER 2023) INVESTOR PRESENTATION 26 FEBRUARY 2024
Slide 2: GCEO Presentation
GCEO PRESENTATION Jamie Ling 3 9MFY24 Financial snapshot 4 Retail PHRA 5 Loans by stages 6 Outlook for CY2024 7 Financial Overview
Slide 3: 9MFY24 Financial Snapshot (Reported)
Financial Snapshot (Reported) 9MFY24 Financial snapshot Q3FY24 PATMI lifted by tax credit offset by one-off charges; ROE at 9MFY24 Reported Financials Variance 10%; CET1 strengthened further • Income resilient despite margin compression 3,477 • NII fell 9% due to higher funding cost, NIM at 1.79% (9
Slide 4: Retail Banking PHRA loans
Payment Holiday and Repayment Assistance (PHRA) loans under 12 months of observation post PHRA programmes Retail Banking (RB) PHRA loans Total RB loans and PHRA by staging (RM’ bil) A) Mortgage loans and PHRA by staging (RM’ bil) 74.0 74.3 Of which, PHRA balance 47.4 Of which, PHRA balance 46.9 1.4,
Slide 5: Loans by stages
Loans (Reported) Loans by stages Loans by ECL Stages (RM’ bil) Breakdown by Business Segments1 (%) Stage 1 Stage 1 Stage 2 Stage 3 91.5% 91.9% RB 89.9% 130.2 129.0 130.8 131.3 124.4 126.3 BB 120.1 1.5% 1.7% 1.7% 1.6% 88.9% 1.5% 1.6% WB 86.9% 1.6% 9.7% 9.9% 9.9% 9.8% 11.0% 10.2% 11.9% 87.0% Q1FY23 Q2
Slide 6: Outlook for CY2024
Market Outlook Outlook for CY2024 GDP Growth 4.0% to 5.0% Inflation 2.5% to 3.5% Malaysia Unemployment Rate 3.2% USD/MYR Outlook 4.50 to 4.60 Loans Growth 4.0% to 5.0% Asset Quality Stable Banking OPR 3.00% Sector Liquid & Capital Positions Resilient CY = Calendar Year 6 9MFY24 Results – Investor Pr
Slide 7: Q3FY24 Financial overview
Financial Overview Q3FY24 Financial overview 1 Capital, Liquidity and Funding • CET1 at 13.75%, TCR at 16.86%. Without TA, CET1 at 13.38%, TCR at 16.64% • Highly liquid (FHC LCR of 183.7%, LDR 96.6%) 2 Q3FY24 Reported Results (QoQ) • Income of RM1,151mil, up 2% QoQ - NII of RM827mil, fell 2%. Report
Slide 8: Breakdown of Q3FY24 One-off charges and Tax Credit
Financial Overview Breakdown of Q3FY24 One-off charges and Tax Credit RM’mil RM’mil Total tax credit granted1 772 Tax credit recognised in FY22 (234) Remaining tax credit 538 One-off charges in Q3FY24: Credit impairment overlays2 (328) Provision for restructuring expenses (80) Intangible assets impa
Slide 9: 9MFY24 Performance summary – P&L
Financial Overview (Reported) 9MFY24 Performance summary – P&L P&L (RM’ mil) Q2FY24 Q3FY24 QoQ Change 9MFY231 9MFY24 YoY Change Total Income 1,124 1,151 2% 3,552 3,477 (2%) - NII 846 827 (2%) 2,717 2,481 (9%) - NOII 278 325 17% 835 996 19% MFRS 17 restatement impact - - (26) - Expenses (
Slide 10: 9MFY24 Performance summary – Balance Sheet
Financial Overview (Reported) 9MFY24 Performance summary – Balance Sheet Balance Sheet (RM’ bil) Q2FY24 Q3FY24 QoQ Change FY23 9MFY24 YTD Change Gross Loans 130.8 131.3 ≈ 130.2 131.3 1% GIL 1.65% 1.60% (0.05%) 1.46% 1.60% 0.14% LLC (include Reg Reserves) 109.2% 112.3% 3.1% 127.7% 112.3% (1
Slide 11: P&L walk
Group P&L P&L walk YoY Growth (7%) 26% ≈ 5% (4%) 2% (5%) (6%) (5%) >100% 9% Positive growth in 9MFY24 Contraction in 9MFY24 Normalised One-off Continuing Total Discont’d Reported NII NOII Expenses PBP Impairment PBT Tax & Zakat Cont’d charges & Operations Income PATMI PATMI PATMI
Slide 12: Resilient income growth
Income Resilient income growth Business Segments Q2FY24 Q3FY24 QoQ Change 9MFY231 9MFY24 YoY Change (RM’ mil) Wholesale Banking 247 311 26% 841 891 6% Investment Banking 82 90 10% 238 263 10% Retail Banking 495 479 (3%) 1,424 1,439 1% Business Banking 286 296 4% 779 851 9% Group Fund
Slide 13: NIM marginally lower as deposits repriced, asset yields stable
NIM NIM marginally lower as deposits repriced, asset yields stable YoY NIM 9MFY24: Net Interest Margin (NIM) Movement (QoQ) Reported: 1.79% ( (37bps) ) 9MFY23: Reported: 2.16% Divisions Funding + Deposits bps Reported: (3bps) 2.0 0.0 0.8 (3.6) 0.5 182 (1.3) (1.5) 179 Q2FY24 Retail Wholesale Bank
Slide 14: Strong performance from GTM, Investment Banking and Insurance
NoII Strong performance from GTM, Investment Banking and Insurance Composition 3% 4% 24% 22% 7% 14% 12% 5% 6% 1% 2% 100% YoY Growth (6%) 4% >100% 15% 17% 4% 7% 29% 12% >100% 9% 26% (41%) 19% Positive growth in 9MFY24 Contraction in 9MFY24 9MFY23 NoII 9MFY24 NoII Continuin
Slide 15: Slight increase in expenses and CTI
Expenses Slight increase in expenses and CTI Business Segments Q2FY24 Q3FY24 QoQ Change 9MFY23 9MFY24 YoY Change (RM’ mil) Wholesale Banking 78 80 2% 210 234 11% Investment Banking 55 54 (2%) 152 162 6% Retail Banking 272 285 5% 762 831 9% Business Banking 90 86 (5%) 232 257 11% Grou
Slide 16: Banking PBP up 5% QoQ
PBP & PAT Banking PBP up 5% QoQ Business Segments Q2FY24 Q3FY24 QoQ Change 9MFY231 9MFY24 YoY Change (RM’ mil) Wholesale Banking 168 231 37% 631 657 4% Investment Banking 27 36 34% 86 101 17% Retail Banking 223 193 (13%) 662 608 (8%) Business Banking 196 210 7% 547 594 8% Group Fundi
Slide 17: Good loans growth in BB and RB offset by large WB repayment
Loans Good loans growth achieved in BB and RB offset by large loan repayment in WB Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: Fixed rate – 21% Islamic – 35% Retail – 57% Variable rate –79% Conventional – 65% Non-retail – 43% YTD
Slide 18: Loan loss reserve (excluding Reg Reserve) 110.7%
Asset Quality Loan loss reserve (excluding Reg Reserve) 110.7% Overlay: Q1FY24: (99.6) Net Impairment (YoY Movement) (RM’mil) Q2FY24: (47.6) Q3FY24: (8.4) Positive P&L impact in 9MFY24 Negative P&L impact in 9MFY24 Gross Impaired Loans (RM’mil) and Loan Loss Coverage (LLC) Ratios Credit Cost and New
Slide 19: Vigilant monitoring of sector exposures
Asset Quality Vigilant monitoring of sector exposures Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’23 Sep’23 Dec’23 YTD QoQ Sector Composition Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil RM’ mil
Slide 20: 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 9MFY24 135.9 4% 2%1 9MFY24 45.8 (6%) 5%1 FY23 130.3 6% 5%2 FY23 48.8 13% (2%)2 FY22 122.6 2% 5%2 FY22 43.1 21% 6%2 Non-
Slide 21: Capital position strengthened further
Capital Capital position strengthened further RWA/Total Assets FHC Capital Adequacy Ratios2 RM’ bil CET 1 / Tier 1 Total CAR Total Assets RWA/Total Assets Peers 1 66.7% 67.4% 16.64% 16.86% 62.7% 63.6% 15.80% 15.18% 15.47% 15.32% 15.65% 14.14% 14.48% 58.1% 56.8% 54.9% 55.2% 12.44% 13.38% 12.51% 13.75
Slide 22: 9MFY24 Summary
Summary 9MFY24 Summary RESILIENT CREDIT PROFILE PERFORMANCE • Resilient income in spite of • Loan Loss Coverage (LLC) margin compression 110.7% • RM135mil tax credit net of • GIL stable at 1.60% one-off charges contributed to Q3FY24 PATMI, up 16% • PHRA book balances QoQ significantly lower • ROE at
Slide 23: Appendix: P&L – Continuing & Discontinued Operations
Appendix Appendix: P&L – Continuing & Discontinued Operations Financial Effects post Disposal (Year-on-Year) 9MFY23 9MFY24 YoY Movement Normalised Normalised Normalised Reported Reported Discontinued RM’mil Cont’d Ops Discont’d Op (B) Cont’d Ops Discont’d Op (B) Reported Continuing (A) + (B) (A) + (
Slide 24: Thank You
THANK YOU
Slide 25: Reported yearly performance
9MFY24 Results (Reported) Reported yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%)1 Total Income (RM’ mil) and Non-interest Income (%)1 Total Income: PATMI: ROE: CAGR FY21-FY23: 1.7% YoY Growth 8.6% YoY Growth 0.1% YoY Growth (2.1%) 9.3% 9.8% 9.9% 10.0% Total Income Non-Interest Incom
Slide 26: (Impairments) / Recoveries
Asset Quality (Impairments) / Recoveries Net (Impairments) / Recoveries and GIL Ratio Total impairments by category (RM’ mil) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 QoQ Change 9MFY23 9MFY24 YoY Change ECL Stage 1 & 2 / CP – Non defaulted1 6 19 (55) 17 (31) 98 (39) >100% (31) 27 (>100%)
Slide 27: Divisional Performance
Divisional Performance
Slide 28: Wholesale Banking
Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth: 7% YoY Growth: 18% Total Income RM891 mil 6% FY23: 671 9MFY24: 626 16% 237 209 200 188 168 Transaction 152 142 Banking 19% Corporate 12% Transaction Banking Bankin
Slide 29: Wholesale Banking
Wholesale Banking Wholesale Banking Income Statement YoY Growth (10%) 67% 6% 11% 4% >100% 19% 20% 18% Net Interest Non-Interest Impairment RM' mil Total Income Expenses PBP PBT Tax & Zakat PAT Income Income write-back 9MFY24 602 290 891 (234) 657 149 806 (181) 626 9MFY23 668 173 84
Slide 30: Investment Banking
Investment Banking Investment Banking League Table PAT Trend (RM’ mil) Market Share1 As At QoQ Growth: 33% Rank2 31 December 2023 YoY Growth : 13% DCM 13.1% 4 (Overall MYR Bonds) FY23: 91 9MFY24: 78 Islamic Sukuk 10.5% 4 Unit Trust 7.4% 5 28 29 28 23 22 Stockbroking3 6.9% 5 21 18 M&A3 18.4%
Slide 31: Investment Banking
Investment Banking Investment Banking Income Statement YoY Growth (2%) 13% 10% 6% 17% 37% 17% 35% 13% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income 9MFY24 38 225 263 (162) 101 (0) 100 (23) 78 9MFY23 38 200 238 (152) 86 (1)
Slide 32: Retail Banking
Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth: (45%) Total Income 1% YoY Growth : (33%) RM 1,439 mil >100% (44%) (11%) Others Mortgage 8% 11% (17%) FY23: 409 9MFY24: 215 Retail SME 8% 10% Retail SME Auto Financi
Slide 33: Retail Banking: Cards in circulation
Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth: 1% Merchant volume (RM'mil) QoQ Growth: 13% YoY Growth: 8% YoY Growth: 41% Merchants in force ('000) QoQ Growth: 3% YoY Growth: 2% FY23: 5,791 9MFY24: 5,570 FY23: 15,367 9MFY24: 12,413 1,844 1,838 1,860 1,87
Slide 34: Retail Banking
Retail Banking Retail Banking Income Statement YoY Growth ≈ 8% 1% 9% (8%) 34% (33%) (34%) (33%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income 9MFY24 1,241 197 1,439 (831) 608 (327) 281 (66) 215 9MFY23 1,242 182 1,424 (762) 662
Slide 35: Business Banking
Business Banking (Reported) Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth: 3% QoQ Growth: 2% YoY Growth: 13% YoY Growth: 12% Non-trade Trade 34,512 34,972 36,094 31,483 32,142 31,998 33,220 FY23: 477 9MFY24: 353 10,163 10,127 10,177 9,615 9,298 9,265 9,452 22,527 22,7
Slide 36: Business Banking
Business Banking Business Banking Income Statement YoY Growth 8% 15% 9% 11% 8% (2%) 12% 10% 12% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income 9MFY24 647 204 851 (257) 594 (131) 463 (110) 353 9MFY23 601 178 779 (232) 547 (13
Slide 37: AmBank (M) entity level
AmBank (M) entity level AmBank (M) Income Statement YoY (6%) 27% 1% (5%) 6% 33% 2% 1% 2% 19% Growth One-off Net Interest Non-Interest Normalised Reported RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat charges & Income Income PAT PAT Tax credit1 9MFY24 1,683 603 2,28
Slide 38: AmBank Islamic entity level
AmBank Islamic entity level AmBank Islamic Income Statement YoY Growth (9%) 34% (5%) 49% (24%) (36%) (21%) (24%) (20%) (36%) Net Financing Non-Financing Normalised One-off Reported RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat Income Income PATZ charges1 PATZ 9MFY2
Slide 39: 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 Q3FY24 vs Q2FY24 YoY gr
AMMB Holdings Berhad — 9MFY2024 Earnings Presentation on 6ix