Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — FY2022 Earnings Presentation

52 slides from Malayan Banking Bhd's earnings presentation, Feb 27, 2023

  1. Slide 1: Investor Presentation: Full Year FY2022 Financial Results

    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 Executive Summary 2-13 Full Year FY2022 Financial Performance 15-21 Appendix: 1. Group Performance 23-40 2. Business/Country Performance 42-50

  3. Slide 3: FY2022: Posted RM8.23 billion Net Profit, from RM8.10 billion in FY2021

    FY2022: Posted RM8.23 billion Net Profit, from RM8.10 billion in FY2021 Income growth driven by expansion in NIM and loans as well as MTM gains from financial liabilities and foreign exchange gains; net profit grew 1.7% YoY FY2022 vs FY2021 Net Operating Net Interest Cost Cost-to- Pre-Provisioning N

  4. Slide 4: FY2022: Strong Loans Growth & Liquidity Position; Better Asset Quality

    FY2022: Strong Loans Growth & Liquidity Position; Better Asset Quality Good loans growth momentum Strong liquidity position; Maintained provision levels supported by deposits growth CASA ratio remained above and overlays despite low new pre-pandemic levels impaired loan formation 31 Dec 2022 vs 31 D

  5. Slide 5: FY2022: Rewarding Shareholders with Good Returns; Solid Capital Levels

    FY2022: Rewarding Shareholders with Good Returns; Solid Capital Levels Maintained strong shareholder returns Robust capital position As at 31 Dec 2022 As at 31 Dec 2022 87.8% 91.2% 84.5% 84.6% Dividend 77.3% Payout Ratio 100% 88% Cash Component 53% 34% 63% Dividend Yield Group CET1 Total of Total Di

  6. Slide 6: FY2022: Commendable Islamic Banking Growth; Poised for Global Leadership Positioning

    FY2022: Commendable Islamic Banking Growth; Poised for Global Leadership Positioning Commendable Growth in Group Islamic Banking Towards Becoming a Global Islamic Wealth Management (IWM) Solutions Leader 31 Dec 2022 vs 31 Dec 2021 Focus on leadership in core markets, through unique Total Profit Fina

  7. Slide 7: FY2022: Delivering on Financial Targets

    FY2022: Delivering on Financial Targets 2022 Targets 2022 NIM >5 bps 7 bps Normalised CIR: 45.5% Excluding CA adjustments CIR 45% - 46% 46.4% and one-off cards giftpoints expenses NCC 40 bps - 50 bps 40 bps ROE 9.5% - 10% 10.0% Dividend 40% - 60% 84.6% Payout 6

  8. Slide 8: FY2022: Key Corporate Updates

    FY2022: Key Corporate Updates Innovate to Drive Greater Financial Inclusivity and Differentiated CX First to Market Products Solutions for The Underserved • ATM Cash-out on mobile app for • Extended SME Digital Financing Solutions for withdrawing cash without a physical card Microenterprises • Mayba

  9. Slide 9: M25+: Sustainable Growth and Greater Focus on Customer Centricity

    M25+:Sustainable Growth and Greater Focus on Customer Centricity Further Inculcating Agile Culture Building Ecosystems, Driving Growth and Enhancing CX Transformation • Set up of Maybank Group Transformation Office and Forging Strategic Collaboration to Expand E2E Digital Ecosystem: M25+ Steering Co

  10. Slide 10: M25+: Clear Roadmap Based on MVP Approach To Build NextGen Technology

    M25+:Clear Roadmap Based on MVP Approach To Build NextGen Technology Maybank Scale A technology Leader Optimise beyond enterprise Harmonise with Data and Hyper Automation across by linking and the region Lay Foundations expanding Platforms 2025 for Tech-for-Tech and 2024 M-CONNECT 3.0 adopt API-firs

  11. Slide 11: M25+: Built Foundation with Two Emerging Technology Platforms

    M25+: Built Foundation For Enabling Business Growth Under M25+ with Two Emerging Technology Platforms Laid foundation for Maybank’s API Built flagship data science & visualisation & APP Platform: M-CONNECT platform: Maybank INSIGHTS Aims to accelerate our transformation and regionalisation This plat

  12. Slide 12: FY2022: Commendable Progress Towards Sustainability Leadership in ASEAN

    FY2022: Commendable Progress Towards Sustainability Leadership in ASEAN Exceeded Annual Sustainability Targets Raising The Bar on FY2025 Sustainability Targets Sustainable Achieved: FY2025: RM34.4 bil RM50 bil RM50 bil RM80 bil 1 mil households 2 mil households Finance FY2022(t):RM9 bil Mobilising S

  13. Slide 13: FY2023: Moderating Economic Outlook; Slowing Interest Rate Hike Cycle

    FY2023: Moderating Economic Outlook; Slowing Interest Rate Hike Cycle Malaysia Singapore Indonesia 2022 2023 (f) 2022 2023 (f) 2022 2023 (f) GDP 8.7% 4.0% GDP 3.6% 1.7% GDP 5.3% 5.0% System loan 5.7% 4.8% System loan (2.1)%* 1.0%* System loan 11.0% 9.5% OPR 2.75% 2.75% - 3.00% 3M SIBOR 4.25% 4.80% R

  14. Slide 14: FY2023: Focus on Revenue and AQ Management; Targeted Investments

    FY2023: 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 markets o Deepening account planning across segments,

  15. Slide 15: Table of Contents

    Table of Contents Executive Summary 2-13 Full Year FY2022 Financial Performance 15-21 Appendix: 1. Group Performance 23-40 2. Business/Country Performance 42-50

  16. Slide 16: Net Fund Based Income Driven by Loan Growth and Better NIM

    Net Fund Based Income Driven by Loan Growth and Better NIM NIM and Net Fund Based Income Key Drivers • Group loans grew 6.0% YoY led by: 2.42% 2.39% 2.39% o 6.7% in MY: 6.8% in Mortgage, 9.0% in NIM 2.32% 2.32% Auto, 19.9% in Credit Cards, 9.1% in (Ann.) SME and 6.8% in BB o 5.8% in IDN: 22.6% in Au

  17. Slide 17: Higher NOII on MTM and Foreign Exchange Gains

    Higher NOII on MTM and Foreign Exchange Gains Non-Interest Income Key Drivers  (25.1)%  10.8%  +9.0% YoY • Treasury & markets income growth of 75.3% YoY mainly driven by: 4Q’22 vs 3Q’22 4Q’22 vs 4Q’21 6.93 o higher MTM gain on financial liabilities of >100% to RM3.55 billion 6.36 0.23 o foreign e

  18. Slide 18: Cost Increase on Higher Personnel and One-Off Expenses

    Cost Increase on Higher Personnel and One-Off Expenses CIR and Costs Key Drivers 45.3% 46.4% 46.9% 45.8% 49.4%  +0.4%  +15.3%  +11.2% YoY 4Q’22 vs 3Q’22 4Q’22 vs 4Q’21 12.81 11.52 • Cost increase of 11.2% YoY mainly driven by: 3.39 3.41 2.57 o +10.2% increase in personnel costs led by collective

  19. Slide 19: Healthy Liquidity Levels

    Healthy Liquidity Levels Liquidity Indicators Key Drivers LCR LDR NSFR • Healthy Group liquidity ratios with NSFR and LCR levels Liquidity Position above regulatory requirements 136.4% 144.2% 145.4% 117.0% 118.1% 107.9% • Group gross deposits grew 3.5% YoY supported by: 89.5% 91.6% 91.6% o 5.4% incr

  20. Slide 20: Loans Under Relief Continue To Expire with Minimal AQ Slippage

    Loans Under Relief Continue To Expire with Minimal AQ Slippage % of Loans Under Repayment Assistance, Relief and R&R Programmes Against Respective Total Home Market Loans Malaysia Singapore Indonesia % of Outstanding Loan % of Outstanding Loan % of Outstanding Loan 31/10/22 31/01/23 31/10/22 31/01/2

  21. Slide 21: Lower ECL Trends as AQ Remains Stable; Maintaining MOA

    Lower ECL Trends as AQ Remains Stable; Maintaining MOA ECL, NCC, and LLC Gross Impaired Loans P&L ECL Dec 2021 Sep 2022 Dec 2022 (RM billion)  (48.5)%  +96.3%  (17.6)% YoY % RM billion % RM billion % RM billion 4Q’22 vs 3Q’22 4Q’22 vs 4Q’21 Non Performing Loans 1.28% 7.07 1.27% 7.43 1.22% 7.14 (N

  22. Slide 22: Robust Capital Positions

    Robust Capital Positions Capital Ratios Key Drivers Before proposed After proposed dividend dividend • Capital ratios remain robust post proposed dividend, above regulatory requirements 19.52% 19.08% 18.83% • Credit RWA growth well below loans growth, ensuring optimal capital 18.20% utilisation Grou

  23. Slide 23: Table of Contents

    Table of Contents Executive Summary 2-13 Full Year FY2022 Financial Performance 15-21 Appendix: 1. Group Performance 23-40 2. Business/Country Performance 42-50

  24. Slide 24: P&L Summary: FY2022

    P&L Summary: FY2022 4Q 3Q 2Q 1Q 4Q RM million FY2022 FY2021 YoY QoQ YoY FY2022 FY2022 FY2022 FY2022 FY2021 Net fund based income * 20,685.1 19,089.0 8.4% 5,311.5 5,296.8 0.3% 5,183.0 4,893.9 4,868.6 9.1% Non-interest income* 6,930.0 6,359.4 9.0% 1,585.6 2,117.1 (25.1)% 1,651.8 1,575.5 1,431.1 10.8%

  25. Slide 25: Segmental Performance of Businesses: FY2022 (1/2)

    Segmental Performance of Businesses: FY2022 (1/2) Net Operating Income Group Global Banking  +3.7% FY2021 FY2022  +8.5% FY2021: 9,848 FY2022: 10,216 27,615 25,448  +16.5%  +9.1%  (23.3)%  (13.7)%  (14.7)% 16,369 14,053 RM million 8,173 8,919 1,555 1,193 1,908 1,628 120 103 Total Group Communi

  26. Slide 26: Segmental Performance of Businesses: FY2022 (2/2)

    Segmental Performance of Businesses: FY2022 (2/2) Net Fund Based Income Group Global Banking  +3.4% FY2021 FY2022  +8.4% FY2021: 6,011 FY2022: 6,217 20,685 19,089  +18.9%  +3.3%  +5.6%  +22.8%  +9.1% 12,915 10,866 RM million 5,703 5,891 306 323 2 3 1,376 1,502 Total Group Community Group Corp

  27. Slide 27: Non-Interest Income: FY2022

    Non-Interest Income: FY2022 4Q 3Q 2Q 1Q 4Q NOII (RM million) FY2022 FY2021 YoY QoQ YoY FY2022 FY2022 FY2022 FY2022 FY2021 Commission, service charges and fees 3,766 4,031  (6.6)% 911 950  (4.2)% 979 927 1,022  (10.9)% Commission 1,369 1,496  (8.4)% 343 343  0.1% 355 329 364  (5.8)% Service cha

  28. Slide 28: International & Malaysia Portfolio Mix FY2022

    International & Malaysia Portfolio Mix FY2022 Net Operating Income Profit Before Tax Gross Loans * 0.5% FY2022 5.5% 6.0% 7.5% (Jan 22 – Dec 22) 9.5% 5.3% 13.9% Overseas: 16.6% RM27.62 Overseas: RM12.15 Overseas: RM587.1 25.2% 31.6% billion 20.4% billion 38.0% billion 62.0% 68.4% 79.6% Malaysia Singa

  29. Slide 29: Group Gross Loans Growth: 31 December 2022

    Group Gross Loans Growth: 31 December 2022 % of Portfolio 31 Dec 2022 30 Sep 2022 QoQ 30 Jun 2022 31 Mar 2022 31 Dec 2021 YoY Group Gross Loans 587.1 587.1  0.0% 575.3 562.0 553.8  6.0% Malaysia (RM billion) 62% 362.9 357.5  1.5% 349.5 345.9 340.1  6.7% Community Financial Services (reported) 77

  30. Slide 30: Malaysia Loans Growth: 31 December 2022

    Malaysia Loans Growth: 31 December 2022 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec RM billion % of Portfolio QoQ YoY 2022 2022 2022 2022 2021 Community Financial Services (reported) 77% 278.4 272.8  2.0% 267.6 263.0 259.7  7.2% Community Financial Services (rebased)¹ 77% 278.4 272.8  2.0% 267.6 263.0 259

  31. Slide 31: Singapore Loans Growth: 31 December 2022

    Singapore Loans Growth: 31 December 2022 SGD billion % of Portfolio 31 Dec 2022 30 Sep 2022 QoQ 30 Jun 2022 31 Mar 2022 31 Dec 2021 YoY Community Financial Services 57% 24.6 24.8  (0.8)% 24.9 25.0 24.6  0.3% Consumer 41% 17.9 18.1  (1.3)% 18.4 18.6 18.2  (1.8)% Housing Loan 29% 12.6 12.7  (1.1)

  32. Slide 32: Indonesia Loans Growth: 31 December 2022

    Indonesia Loans Growth: 31 December 2022 (Based on MBI’s reporting) % of IDR trillion 31 Dec 2022 30 Sep 2022 QoQ 30 Jun 2022 31 Mar 2022 31 Dec 2021 YoY Portfolio Community Financial Services 62.3% 67.2 65.8  2.1% 64.7 64.3 63.8  5.2% CFS Retail 36.2% 39.0 37.7  3.3% 36.0 35.0 34.3  13.6% Auto

  33. Slide 33: Group Deposits Growth: 31 December 2022

    Group Deposits Growth: 31 December 2022 % of Portfolio 31 Dec 2022 30 Sep 2022 QoQ 30 Jun 2022 31 Mar 2022 31 Dec 2021 YoY Group Gross Deposits 639.4 639.4  (0.0)% 637.1 632.5 617.7  3.5% Total CASA 261.7 280.1  (6.6)% 297.8 292.1 290.8  (10.0)% Malaysia (RM billion) 65% 413.2 416.0  (0.7)% 406

  34. Slide 34: LDR and CASA Ratio

    LDR and CASA Ratio Malaysia Group LDR CASA CASA (without IA) NSFR LCR 143.2% 144.2% 145.4% 136.4% 136.9% 118.5% 120.6% 117.0% 118.1% 87.5% 87.7% 86.6% 86.6% 88.5% 107.9% 89.5% 88.7% 90.2% 91.6% 91.6% 49.3% 48.3% 50.2% 46.2% 46.7% 43.8% 46.7% 45.1% 47.1% 40.9% 43.2% 42.5% 43.0% 43.2% 42.5% 44.3% 41.7

  35. Slide 35: RWA Optimisation and Funding Management

    RWA Optimisation and Funding Management Group Gross Loans & Group RWA Funding Breakdown Operational RWA Market RWA Credit RWA Gross Loans Borrowings and Capital Instruments by Currency 587.1 587.1 FI Deposits, 6% 553.8 SGD, 9% IDR, Equity, 10% CNH, 5% 424.5 JPY, 9% 404.5 408.6 9% HKD, 4% 46.7 THB, 3

  36. Slide 36: Asset Quality

    Asset Quality Allowances for losses on loans GIL Ratio Composition P&L ECL 4Q 1Q 2Q 3Q 4Q Dec Mar Jun Sep Dec FY2021 FY2022 (RM million) FY2021 FY2022 FY2022 FY2022 FY2022 2021 2022 2022 2022 2022 Stage 1, net (320) (166) (52) 329 (205) (590) (94) Non Performing Loans 1.28% 1.59% 1.41% 1.27% 1.22% (

  37. Slide 37: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Consumer Mortgage Auto Finance Credit Cards 5.41% 5.18% 5.30% 5.17% 5.25% 0.76% 0.69% 0.73% 0.69% 0.67% 2.40% 1.85% 1.66% 1.52% 1.61% 1.73% 1.76% 1.46% 1.34% 0.37% 0.35% 0.31% 0.34% 0.32% 1.21% 0.64% 0.58% 0.58% 0.58% 0.51% 0.20% 0.20% 0.58% 0.23% 0.

  38. Slide 38: Specific Asset Exposures as at 31 December 2022

    Specific Asset Exposures as at 31 December 2022 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 24.6% High Rise Residential RM29.2 billion 16.2% Landed Residential Malaysia 2.2

  39. Slide 39: Dividend: FY2022

    Dividend: FY2022 Full cash second interim dividend of 30 sen per share, bringing total dividend to 58.0 sen per share for FY2022 Dividend Policy 40% - 60% 79.9% 78.5% 78.1% 78.5% 87.8% 91.2% 84.5% 84.6% 76.5% 74.9% 74.7% 71.9% 76.3% 77.3% Dividend Payout Ratio 100% 88% 67% 53% 63% 27% 20% 25% 19% 27

  40. Slide 40: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million FY2022 FY2021 YoY 4QFY2022 3QFY2022 2QFY2022 1QFY2022 QoQ Net interest income 1,501.5 1,375.9 9.1% 409.8 383.1 359.9 348.7 7.0% Net earned premiums 8,977.6 8,846.8 1.5% 2,094.1 2,259.0 2,268.5 2,356.1 (7.3)% Other operating income (1,326

  41. Slide 41: Key Operating Ratios

    Key Operating Ratios 4Q 3Q 2Q 1Q 4Q % FY2022 FY2021 YoY QoQ YoY FY2022 FY2022 FY2022 FY2022 FY2021 4 Return on Equity 10.0 9.8 0.2% 10.5 10.4 0.1% 9.0 9.4 10.0 0.5% 4 Net Interest Margin (bps) 2.39 2.32 7 bps 2.39 2.42 (3) bps 2.41 2.34 2.32 7 bps Fee to Income Ratio 25.1 25.0 0.1% 23.0 28.6 (5.6)%

  42. Slide 42: Table of Contents

    Table of Contents Executive Summary 2-13 Full Year FY2022 Financial Performance 15-21 Appendix: 1. Group Performance 23-40 2. Business/Country Performance 42-50

  43. Slide 43: Market Share Overview for Community Financial Services Malaysia

    Market Share Overview for Community Financial Services Malaysia Market share Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Loans Total consumer 18.6% 18.6% 18.6% 18.7% 18.7% Auto (Retail Hire Purchase) 30.2% 30.3% 30.3% 30.4% 30.4% Total mortgage * 14.7% 14.7% 14.7% 14.7% 14.8% Credit cards ** 20.3% 20.7% 21.0

  44. Slide 44: We Continue to Maintain a Leadership Position in Digital Banking

    We Continue to Maintain a Leadership Position in Digital Banking As at Dec’ 22 As at end-Dec’ 22 in Malaysia SME Digital Financing approved loans since RM2.93 bil its launch in Sep’20 SME Digital Accounts accounts activated since Mobile Banking Internet Banking 3-month Active Users 164,554 its launc

  45. Slide 45: Overview: Group Wealth Management & Group Securities Portfolios

    Overview: Group Wealth Management & Group Securities Portfolios Group Wealth Management Group Securities Portfolio Total Financial Assets grew 5.5% YoY to RM420.3 billion contributed by Group Securities Portfolio¹ grew 3.3% YoY investments growth of 4.4% and loan growth of 8.0%  +3.3% YoY  +5.5% Y

  46. Slide 46: Overview of Group Investment Banking Portfolio

    Overview of Group Investment Banking Portfolio FY2022 Total Income Breakdown by Country FY2022 Non-Interest Income for Malaysia Vietnam Hong Kong Underwriting& 7% Arrangers' Fees 3% Placement Fees 11% 14% Phillipines 1% Advisory Fees Malaysia 7% Indonesia 38% Agency/ 6% Guarantee Fees RM1,193.4 6% T

  47. Slide 47: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing1 grew to RM244.0 billion +10% Dec 21 Dec 22 RM million FY2022 FY2021 YoY 74.1 +13% 67.1 +10% Total Income 7,756.9 6,684.1 16.0% 54.1 50.3 49.4 44.7 0% Profit Before Tax 4,785.5

  48. Slide 48: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Key Products (Malaysia) 30.4% 30.4% 29.9% 29.8% 29.6% 48.3% 25.8% 26.7% Automobile Term Financing Home Financing 27.8% 28.0% 27.8% 27.2% 27.5% Dec 22 Dec 22 Dec 22 Dec 21 Mar 22 Jun 22 Sep 22 Dec-22 Dec 21: 48.4% Dec 21: 26.0

  49. Slide 49: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Net Adjusted Premium/Contribution Life & Family (New Business) Market Share (Malaysia) Single Premium  (41.8)% 19.3% 19.2% 19.7% 18.7% Regular Premium  (3.0)% Credit Premium  29.3% 16.9% 10.8% 18.0% 15.5% 12.0% 17.6% No. 3 10.9% 12.2% in Life/Family Gro

  50. Slide 50: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary 4Q 3Q SGD million FY2022 FY2021 YoY QoQ FY2022 FY2022 Net fund based income 808.16 642.38 25.8% 225.51 206.03 9.5% Non-interest income 406.75 268.44 51.5% 76.59 123.65 (38.1)% Net income 1,214.91 910.82 33.4% 302.11 329.69 (8.4)% Overhead expenses (511.48) (480.57) 6.4

  51. Slide 51: Maybank Indonesia: P&L Summary and Financial Ratios

    Maybank Indonesia: P&L Summary and Financial Ratios 4Q 3Q IDR billion FY2022 FY2021* YoY QoQ Key Operating Ratios Dec 22 Sep 22 Dec 21* YoY FY2022 FY2022 Net Fund Based income 7,209 7,117 1.3% 1,888 1,843 2.4% Profitability &Efficiency Non-Interest income 1,760 2,090 (15.8)% 439 450 (2.3)% ROA 1.25%

  52. Slide 52: Malayan Banking Berhad contact details and disclaimer

    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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