Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Shareholder Meeting (April 2017)
22 slides from Malayan Banking Bhd's shareholder meeting presentation, Apr 6, 2017
Slide 1: 57th Annual General Meeting Presentation to Shareholders
57th Annual General Meeting Presentation to Shareholders by Datuk Abdul Farid Alias, Group President & CEO 6 April 2017 00
Slide 2: 2016 was filled with political and financial market uncertainty
2016 was filled with political and financial market uncertainty… “...which in turn, affected investor sentiment and global economic growth.” Politics Financial Markets 11
Slide 3: FY2016 achievements against revised guidance
Against this backdrop, Maybank lowered its guidance for key performance indicators in late 2016. Our FY2016 achievements are as follows: FY2016 Revised Key Performance Indicators FY2016 Achievement Guidance Return on Equity 10.5% - 11.0% 10.6% Group Loans Growth 2.0% - 3.0% 5.7% Malaysia 4.0%
Slide 4: How we managed the headwinds of 2016
In short, we managed the headwinds of 2016 by: • Focusing on selective asset growth across our portfolios and markets • Proactively managing asset quality for specific portfolios exhibiting weakness • Driving income growth while reining in cost growth • Managing our talent pool and improving product
Slide 5: Continued focus on Humanising Financial Services
And we continued focusing on Humanising Financial Services… “…as we aim to be at the heart of the community by building and supporting those around us, through good and tough times. This is done by…” 1 2 Providing convenient Prioritising customer access to financing in both experience using next phy
Slide 6: Our combined efforts supported our FY2016 performance
Our combined efforts supported our FY2016 performance Net Fund Based Income Net fund based income was driven by an expansion in RM15.3b, +5.2% gross loans of 5.7%… Net Fee Based Income … while net fee based income was supported by higher RM7.0b, +4.0% investment and trading income and net earned ins
Slide 7: Global Banking revenue growth drivers
Revenue growth drivers include: Higher net fund based income, arising from strong loans growth in Global Banking across all home markets and stable growth in Community Financial Services Global Banking Malaysia Singapore Indonesia +7.5% +7.2% +24.6% 78.8 16.8 18.0 27.4 73.3 22.0 SGD billion IDR tr
Slide 8: Net interest margin and CASA growth
Strong net interest margin management with full year NIM at 2.27%, achieved through disciplined loan pricing and strong CASA growth across home markets CASA Malaysia Singapore Indonesia +6.7% +34.4% +10.0% 114.2 121.9 41.8 46.0 12.5 SGD billion IDR trillion 9.3 RM billion Dec 15 Dec 16 Dec 15 Dec
Slide 9: Cost growth well-contained at low single-digit
Cost growth well-contained at low single-digit We recorded a positive JAWs position of 2.0% in FY2016, as income growth was ahead of cost growth Our disciplined cost management throughout the year resulted in our Cost to Income Ratio improving to 47.3%, the lowest it has been in recent years Gro
Slide 10: Record high pre-provisioning operating profit achieved
Record high pre-provisioning operating profit (PPOP) achieved The Group’s strong revenue growth, coupled with disciplined cost management resulted in us recording our highest ever PPOP of RM11.7 billion 11.69 10.95 9.61 9.42 8.54 RM billion 2012 2013 2014 2015 2016 99
Slide 11: Net impairment losses increased to RM3.0 billion
However, our net impairment losses increased to RM3.0 billion from RM2.0 billion a year ago… … as we provided Group GIL Ratio Composition 70% of the net GIL Ratio Components Dec Mar Jun Sep Dec impairment losses in 2015 2016 2016 2016 2016 1H FY2016… Non Performing Loans (NPL) 1.15% 1.39% 1.32% 1.35
Slide 12: Asset quality weakness from Business and Corporate Banking
Asset quality weakness was mainly from Business and Corporate Banking… Retail SME Business Banking Corporate Banking 2.08 2.53 2.47 Malaysia 2.00 10.00 9.59 11.25 10.60 11.92 1.85 1.96 1.96 1.92 1.47 1.75 1.70 2.34 2.42 2.03 2.24 Singapore 1.16 1.31 1.43 1.45 1.74 1.69 1.21 1.89 0.64 0.41 1.65 1.66
Slide 13: Asset quality for consumer segments remained stable
…while asset quality for consumer segments remained stable Mortgage Auto Finance Credit Cards 0.58 0.60 0.61 0.57 0.52 0.53 0.55 0.79 0.85 0.80 0.79 Malaysia 0.55 0.49 0.51 0.72 0.47 0.47 0.33 0.34 0.29 0.38 0.32 2.66 2.45 2.32 2.13 2.26 Singapore 0.44 0.45 0.42 1.51 1.10 1.02 2.46 2.56 0.90 0.95 1.
Slide 14: We maintained discipline on capital utilisation
We maintained discipline on capital utilisation Group credit risk weighted assets Retained robust capital (RWA) growth of 0.7% was minimal vs positions in view of Group gross loan growth of 5.7% impending full Basel III and MFRS9 adoptions Group Gross Loans Group Credit RWA 19.29% +5.7% +0.7% 17
Slide 15: We continued delivering value to shareholders
We continued delivering value to shareholders… …by creating economic profit for shareholders, as our return on equity of 10.6% was above the average cost of equity for Malaysian banks Cost of Equity for Malaysian Banks 9.6% 9.4% 9.5% 9.4% 7.9% 8.1% 7.5% 6.8% Maybank Public CIMB RHB AMMB Hong Leong A
Slide 16: EPS and ROE growth affected by higher capital requirements
However, our earnings per share and ROE growths have been affected by higher capital requirements ahead of full Basel III implementation and impending MFRS 9 adoption YoY Growth (%) Earnings Per Share Growth -2.16 -2.86 -5.82 Earnings Growth 2.50 1.78 -1.36 Average No of Ordinary 4.77 Shares Growth
Slide 17: Other key 2016 highlights: digital solution rollouts
Other key 2016 highlights include our digital solution rollouts… MaybankHeart A first-of-its-kind social fundraising platform for NGOs MaybankPay or charitable organisations. E-Money Malaysia’s first A digital option mobile wallet for presenting payment platform. cash gifts during “Digital Bank of t
Slide 18: Strengthening of our leadership bench
…and the strengthening of our leadership bench “As part of the organisation’s succession planning and ongoing efforts to create a diversely skilled C-suite, we undertook a rotation of three Group EXCO members effective 1 July 2016…” DATO’ AMIRUL FEISAL WAN ZAHIR Group Chief Financial Officer DATO’ M
Slide 19: Our focus and targets for 2017
Our focus in 2017 will be: • Expand fee income stream Drive income growth • Drive Group wide cross selling initiatives • Sharpen margin & segment focus • Manage NIM compression • Maintain positive JAWs across business Improve productivity segments Proactively managing asset • Proactively monitor ass
Slide 20: Special Thanks
Special Thanks We extend our deepest gratitude and appreciation to Tan Sri Dato’ Megat Zaharuddin, who has stepped down as Chairman and member of the Board of Directors of the Maybank Group on 31 March 2017… …He was a significant influence in shaping our success to date through his direction, wise c
Slide 21: Thank You
THANK YOU Humanising Financial Services 2020
Slide 22: Malayan Banking Berhad contact and investor relations
Humanising Financial Services 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 Dato’ Amirul Feisal Wan Zahir Group Chief Financial Officer Contact: (6)03-2074 7703 Email: feisal.zahir@
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