Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — Non-Deal Roadshow (August 2023)

47 slides from Malayan Banking Bhd's roadshow presentation, Aug 7, 2023

  1. Slide 1: Investor Presentation

    Disclaimer: The contents of this document/information remain the intellectual property of Maybank and no part of this is to be reproduced or transmitted in any form or by any means, including electronically, photocopying, recording or in any information storage and retrieval system without the permi

  2. Slide 2: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-14 Financial Performance 16-18 Sustainability Highlights 20-25 Appendix: Supporting 1Q FY2023 Financial Performance Updates 27-45

  3. Slide 3: Maybank Investment Case Highlights

    Maybank Investment Case Highlights A Truly Global Leadership Sustainability Leader Leading Superior dividend Regional Bank In Islamic Banking In ASEAN Digital Bank payouts and yields Strong regional footprint 5th Largest Islamic Bank One of the first ASEAN Preferred digital bank in Strong track reco

  4. Slide 4: Global Network Sharpened to Three Archetypes Building on Strong ASEAN Franchise

    Global Network Sharpened to Three Archetypes Building on Strong ASEAN Franchise Our Robust Network Universal Play Malaysia Indonesia Global presence 01 Universal offering; Participation in all segments Singapore Cambodia and core products 2,610 18 Retail branches Countries 38 Focused propositions In

  5. Slide 5: Global Leadership in Islamic Banking

    Global Leadership in Islamic Banking Towards Becoming a Global Islamic Wealth Management (IWM) Leadership Position Solutions Leader Maybank Islamic’s Wealth Management Globally AUM* at RM62.70 billion as at 31 December 2022 5th largest Islamic bank by asset size Focus on IWM leadership across home m

  6. Slide 6: On Track Towards Becoming a Sustainability Leader in ASEAN

    On Track Towards Becoming a Sustainability Leader in ASEAN Sustainability Leader in ASEAN Sustainable Achieved: FY2025: RM38.8bil RM80 bil Designed and implemented a Sustainable Product Framework (SPF) in 2022 to enable Finance greater development of green, social & sustainable products. SPF to be e

  7. Slide 7: Leverage NextGen Technology To Drive Customer-Centric Solutioning

    Leverage NextGen Technology To Drive Customer-Centric Solutioning Maybank Today A Digital Leader Championing Customer-Centricity Preferred Digital Bank Leveraging NextGen To Enable Expansive Digital Ecosystems with Technology Hyper-personalised Solutions 46.6% Maybank Home2u Laid foundation for mobi

  8. Slide 8: Consistently Delivering Superior Shareholder Returns

    Consistently Delivering Superior Shareholder Returns FY2021 Superior Returns Solid track record of high dividend yields and dividend payout ratio 87.8% 91.2% 84.5% 84.6% 77.3% Dividend Consistent Payout Payout Ratio above 87.8% 76.7% Effective Cash 47.1% 57.8% Dividend Payout 38.2% Dividend Paid Out

  9. Slide 9: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-14 Financial Performance 16-18 Sustainability Highlights 20-25 Appendix: Supporting 1Q FY2023 Financial Performance Updates 27-45

  10. Slide 10: 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, preservation of Orchestrating digital ecosystems and integrating environment and exclusion

  11. Slide 11: Building on the M25 Foundation, M25+ Reinforces the Push for Differentiation

    Building on the M25 Foundation, M25+ Reinforces the Push for Differentiation and Focuses on 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, thro

  12. Slide 12: Through 12 Strategic Programmes (SPs)

    …Through 12 Strategic Programmes (SPs) 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-sector collaboration and Agile ways of wo

  13. Slide 13: Investments Will be Made to Accelerate the Development of New Capabilities

    Investments Will be Made to Accelerate the Development of New Capabilities for Long-Term Growth Investment in the next three to five years Planned IT Investments for M25+ Will Bring Us on Par With the Average of Top Regional Banks RM3.5 billion – RM 4.5 billion Tech for Tech Data platforms, Channel

  14. Slide 14: Full Realisation of M25+ Will Holistically Transform Maybank's Performance

    Full Realisation of M25+ Will Holistically Transform Maybank's Performance With Continued Emphasis on BAU Initiatives BAU Initiatives Remain a Priority. Also, Group-wide Focus on Improving Asset Quality Profitability Targets • Non-Retail: Expand RSME and SME+ businesses across universal markets Grou

  15. Slide 15: Improving Customer Experience Through Digital Ecosystems and Agile Delivery

    Improving Customer Experience Through Digital Ecosystems and Agile Delivery; Widening SME Business Coverage Agile Delivery for Better Re-segmentation of SME Seamless and Improved Consumer Efficiency and Productivity Business for Wider Coverage Experience through Digital Ecosystems Faster Mortgage Pr

  16. Slide 16: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-14 Financial Performance 16-18 Sustainability Highlights 20-25 Appendix: Supporting 1Q FY2023 Financial Performance Updates 27-45

  17. Slide 17: Strong Financial Performance Amidst Challenging Environment

    Strong Financial Performance Amidst Challenging Environment Profitability Indicators Liquidity Indicators 2023 Guidance Return 11.4% 10.9% 9.8% 10.0% 10.7% 8.1% 10.5% -11% Liquidity 132.4% 141.0% 142.0% 136.4% 145.4% 145.8% on equity Coverage Ratio Fee to 27.6% 29.2% 32.8% 25.0% 25.1% 24.2% Loan to

  18. Slide 18: Improving Asset Quality Trends; Strong and Consistent Capital Positions

    Improving Asset Quality Trends on Strengthening Loan Loss Coverage; Strong and Consistent Capital Positions Asset Quality Indicators Capital Ratios Post Dividend (Group level) 131.2% 133.5% Loan Loss 106.3% 111.9% 83.6% 77.3% CET 1 14.51% 14.58% 14.73% 15.40% 14.78% 15.09% Coverage Capital Ratio Loa

  19. Slide 19: Maybank's FY2023 Priorities

    FY2023 Priorities: Focus on Revenue and AQ Management; Targeted Investments • Focus on growth opportunities across consumer and business segments within ASEAN franchise: o Double down on CFS franchise business i.e.: mortgage, RSME and SME+ across universal Moderating Economic Income markets Outlook

  20. Slide 20: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-14 Financial Performance 16-18 Sustainability Highlights 20-25 Appendix: Supporting 1Q FY2023 Financial Performance Updates 27-45

  21. Slide 21: Maybank's Established Sustainability Frameworks, Policies & Guides

    Maybank’s Established Sustainability Frameworks, Policies & Guides Are Aimed At Driving Clear ESG Integration and Furthering Our Solutioning Sustainable Product Framework Sustainability Linked Products (SLP) Guidelines Objective • Guide development of themed Green, Social and Sustainable Products Ob

  22. Slide 22: High/Sensitive ESG Sector Papers and RACs Undergo Frequent Reviews

    Our High /Sensitive ESG Sector Papers and RACs Undergo Frequent Reviews to Incorporate Latest Developments and Evolving ESG Trends 2020 Announced our No Deforestation, Peat and/or Exploitation (“NDPE”) stance which applies to all relevant sectors, including but not limited to palm oil, forestry and

  23. Slide 23: First Bank in Malaysia to Establish Financed Emissions Baseline

    First Bank in Malaysia to Establish Financed Emissions Baseline; Now Acting On Findings to Decarbonise Our Portfolio Together With Clients Further steps are also being put in place to support our capability 96% of 25.8 • Monitor government policies building journey towards net zero: million tCO₂e fo

  24. Slide 24: Consistent Groupwide Client Engagement Strategy for Transition Finance

    Consistent Groupwide Client Engagement Strategy To Identify Transition Finance Opportunities Based on Clients’ Transition Profile PROVIDE DECARBO- EXIT DIVERSIFY DECARBONISE OFFSET NISATION SOLUTION Exiting an activity Growing organically, Investing and implementing Compensating for emissions Helpin

  25. Slide 25: Active and Leading Industry Player in Supporting Regulatory Requirements

    We Are Also An Active and Leading Industry Player in Supporting the Implementation of Regulatory Requirements and Industry Firsts Climate Change and Principle-based Taxonomy (CCPT) • Introduced in 2021, Maybank was one of the pilot FIs to start classifying loans and investment assets according to CC

  26. Slide 26: Reduced 41.1% of Our Own Scope 1 and 2 Emissions

    Meanwhile, We Have Reduced 41.1% of Our Own Scope 1 and 2 Emissions, Well On Our Way To Carbon Neutrality by 2030 *Total Baseline 2019 Emissions Total emissions: 131,291 tCO2 ▼ Planned reduction 100% ▼~17% Modernisation of A/C and energy management ▲ Actual reduction as To include all premises with

  27. Slide 27: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-14 Financial Performance 16-18 Sustainability Highlights 20-25 Appendix: Supporting 1Q FY2023 Financial Performance Updates 27-45

  28. Slide 28: Net Fund Based Income Impacted by NIM Compression

    Net Fund Based Income Impacted by NIM Compression Arising From Higher Funding Cost NIM and Net Fund Based Income Key Drivers • Group loans grew 5.3% YoY led by: o 5.1% in MY: 6.9% in Mortgage, 9.4% in Auto, 18.2% in NIM 2.39% 2.35% Credit Cards, 8.8% in SME and 6.6% in BB 2.32% (12-mth o 7.2% in IDN

  29. Slide 29: Higher NOII from Gains on Derivatives, Foreign Exchange and Investment

    Higher NOII from Gains on Derivatives, Foreign Exchange and Investment & Trading Income Non-Interest Income Key Drivers  (3.7)%  +12.4% • Treasury & markets income growth of 35.4% YoY mainly driven by: 1Q’23 vs 4Q’22 1Q’23 vs 1Q’22* o realised & unrealised derivative gains of RM0.32 billion compar

  30. Slide 30: Cost Increases on Personnel, IT and Revenue-Related Expenses

    Cost Increases on Personnel, IT and Revenue-Related Expenses CIR and Costs Key Drivers 49.4% 48.3% 43.7%  (10.4)%  +11.8% 1Q’23 vs 4Q’22 1Q’23 vs 1Q’22* • Cost increase of 11.8% YoY mainly driven by: 3.41 o +9.9% increase in personnel costs, which includes collective 3.05 2.73 0.63 agreement adjus

  31. Slide 31: Healthy Liquidity Levels

    Healthy Liquidity Levels Liquidity Indicators Key Drivers • Healthy Group liquidity ratios with NSFR and LCR levels LCR LDR NSFR Liquidity Position above regulatory requirements 143.2% 145.4% 145.8% 118.5% 118.1% 118.1% • Group gross deposits grew 3.0% YoY supported by: 88.7% 91.6% 90.7% o 5.2% incr

  32. Slide 32: Malaysia's Loans Under Relief Reduces to 0.9% of Outstanding Balances

    Malaysia’s Loans Under Relief Reduces to 0.9% of Outstanding Balances; Continued Reduction in Other Home Markets With Minimal AQ Slippages % of Loans Under Repayment Assistance, Relief and R&R Programmes Against Respective Total Home Market Loans Malaysia Singapore Indonesia % of Outstanding Loan %

  33. Slide 33: Improving AQ; Maintaining MOA of RM1.7 billion

    Improving AQ; Maintaining MOA of RM1.7 billion Loan ECL, NCC, and LLC Gross Impaired Loans (GIL) P&L ECL Mar 2022 Dec 2022 Mar 2023 (RM billion)  +16.6%  (18.8)% 1Q’23 vs 4Q’22 1Q’23 vs 1Q’22 % RM billion % RM billion % RM billion Non Performing Loans 1.59% 8.95 1.22% 7.14 1.25% 7.39 (NPL) 0.44 0.

  34. Slide 34: Robust Capital Positions

    Robust Capital Positions Capital Ratios Key Drivers Post dividend • Capital ratios remain robust with Group CET1 capital ratio at 15.09% and Group total capital ratio at 18.48%, well above regulatory requirements 18.20% 18.48% • Credit RWA growth of 2.7% YoY remains below Group gross loans growth of

  35. Slide 35: Overall Business and Financial Impact from the Adoption of MFRS 17

    Overall Business and Financial Impact from the Adoption of MFRS 17 Maybank is in compliance with MFRS 17 requirements for Business Perspective 1QFY2023 reporting. As Etiqa has opted to use the various approaches to transition allowed under MFRS 17, the • Not expected to have a notable impact on pric

  36. Slide 36: P&L Summary: 1Q FY2023 (YoY)

    P&L Summary: 1Q FY2023 (YoY) 1Q 4Q 1Q RM million FY2022 YoY FY2022 QoQ FY2023 (Restated) (Not Restated) Net fund based income * 4,796.7 4,893.9 (2.0)% 5,311.5 (9.7)% Non-interest income * 1,527.6 1,358.8 12.4% 1,585.6 (3.7)% Net operating income 6,324.3 6,252.7 1.1% 6,897.1 (8.3)% Overhead expenses

  37. Slide 37: International & Malaysia Portfolio Mix 1Q FY2023

    International & Malaysia Portfolio Mix 1Q FY2023 Net Operating Income Profit Before Tax Gross Loans * 1Q FY2023 5.4% 7.2% 7.4% (Jan 23 – Mar 23) 10.6% 5.5% 19.3% Overseas: 17.2% RM6.32 Overseas: RM3.06 Overseas: RM591.7 33.2% 26.5% 38.4% 25.5% billion billion# billion 61.6% 66.8% 73.5% Malaysia Sing

  38. Slide 38: Group Gross Loans Growth: 31 March 2023

    Group Gross Loans Growth: 31 March 2023 31 Dec 31 Mar % of 31 Mar YTD 2022 QoQ 2022 YoY Portfolio 2023 Annualised (Restated) (Not Restated) Group Gross Loans 591.7 586.9  0.8%  3.3% 562.0  5.3% Malaysia (RM billion) 61% 363.7 362.9  0.2%  0.8% 345.9  5.1% Community Financial Services 77% 279.7

  39. Slide 39: Malaysia Loans Growth: 31 March 2023

    Malaysia Loans Growth: 31 March 2023 RM billion % of Portfolio 31 Mar 2023 31 Dec 2022 QoQ YTD Annualised 31 Mar 2022 YoY Community Financial Services (reported) 77% 279.7 278.4  0.5%  1.9% 263.0  6.4% Community Financial Services (rebased)¹ 77% 279.7 278.2  0.5%  2.1% 263.0  6.4% Consumer 61%

  40. Slide 40: Singapore Loans Growth: 31 March 2023

    Singapore Loans Growth: 31 March 2023 SGD billion % of Portfolio 31 Mar 2023 31 Dec 2022 QoQ 31 Mar 2022 YoY Community Financial Services 56% 24.3 24.6  (1.2)% 25.0  (2.7)% Consumer 40% 17.6 17.9  (1.4)% 18.6  (5.1)% Housing Loan 28% 12.4 12.6  (1.5)% 13.0  (5.1)% Auto Loan 5% 2.3 2.3  2.9% 2

  41. Slide 41: Indonesia Loans Growth: 31 March 2023

    Indonesia Loans Growth: 31 March 2023 (Based on MBI’s reporting) % of IDR trillion 31 Mar 2023 31 Dec 2022 QoQ 31 Mar 2022 YoY Portfolio Community Financial Services 63.4% 67.9 67.2  1.1% 64.3  5.7% CFS Retail 37.4% 40.1 39.0  2.9% 35.0  14.6% Auto Loan 19.2% 20.5 19.5  5.6% 16.3  26.1% Mortga

  42. Slide 42: Group Deposits Growth: 31 March 2023

    Group Deposits Growth: 31 March 2023 % of Portfolio 31 Mar 2023 31 Dec 2022 QoQ YTD Annualised 31 Mar 2022 YoY Group Gross Deposits 651.3 639.4  1.9%  7.4% 632.5  3.0% Total CASA 254.5 261.7  (2.7)%  (10.9)% 292.1  (12.9)% Malaysia (RM billion) 64% 418.2 413.2  1.2%  4.9% 397.7  5.2% Total

  43. Slide 43: LDR and CASA Ratio

    LDR and CASA Ratio Malaysia Group LDR CASA CASA (without IA) NSFR LCR 143.2% 144.2% 145.4% 145.8% 136.9% 118.5% 120.6% 117.0% 118.1% 118.1% 87.7% 86.6% 86.6% 88.5% 87.6% 90.2% 91.6% 91.6% 90.7% 88.7% 48.3% 50.2% 46.7% 45.1% 44.1% 46.2% 46.7% 43.8% 40.9% 39.1% 42.5% 44.3% 41.7% 42.5% 43.0% 40.5% 37.8

  44. Slide 44: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Consumer GIL Ratios Mortgage Auto Finance Credit Cards 5.30% 5.25% 5.58% 0.88% 5.18% 5.17% 0.69% 0.73% 0.69% 0.67% 1.85% 1.66% 1.52% 1.61% 1.49% 1.76% 1.46% 1.34% 0.35% 0.31% 0.34% 0.32% 0.36% 1.21% 1.29% 0.58% 0.58% 0.58% 0.51% 0.51% 0.47% 0.58% 0.6

  45. Slide 45: Specific Asset Exposures as at 31 March 2023

    Specific Asset Exposures as at 31 March 2023 Oil & Gas Loan and Fixed Income Securities Exposures Real Estate Loan Exposure to Non-Retail Borrowers to Non-Retail Malaysian Borrowers Country Exposure Borrowers’ Status 22.4% High Rise Residential RM28.4 billion 17.7% Landed Residential Malaysia 2.26%

  46. Slide 46: Rising Opportunities in Renewable Energy & Decarbonisation Financing in 2023

    Rising Opportunities in Renewable Energy & Decarbonisation Financing in 2023 Achievement as of Mar’23 (RM’ mil) Completed Sector FY23 Target (RM’ mil) Conventional Islamic Total RM3.65 billion Group Global Banking (“GGB”) 12,325 1,308 1,748 3,056 in Renewable/ Decarbonising deals Group Community Fin

  47. Slide 47: 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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