Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — 9MFY2021 Earnings Presentation
46 slides from Ammb Holdings Bhd's earnings presentation, Mar 1, 2021
Slide 1: 9MFY2021 Results Investor Presentation
9MFY2021 RESULTS INVESTOR PRESENTATION 1 MARCH 2021
Slide 2: GCEO Presentation
GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 9MFY21 Financial Snapshot 4 Outlook for 2021 5 Repayment Assistance 6 Loans by Stages
Slide 3: 9MFY21 Financial snapshot
Financial Snapshot 9MFY21 Financial snapshot 9MFY21 Financials Resilient performance; resolved legacy matters 3,423 Income 6% • Steady income growth 9MY20: 3,238 1,608 Expenses • Keeping a tight rein on expenses 9MY20: 1,607 1,816 PBP 11% • Maintained positive JAWS, CTI of 47.0% Profitabilit
Slide 4: Outlook for 2021
Market Outlook Outlook for 2021 Malaysia GDP Growth Inflation Export growth USD/MYR outlook 5.2% to 5.9% 1.9% to 2.1% 4.0% to 5.0% 3.96 – 4.00 Banking sector Liquidity & Loans growth Asset Quality OPR capital positions 4.0% to 5.0% Weaker 1.50% to 1.75% Resilient 4 9MFY2021 Results – Investor Presen
Slide 5: Repayment assistance – Overview and Retail portfolio
Repayment Assistance Repayment assistance – Overview and Retail portfolio Overview Repayment assistance by type of borrowers Repayment assistance Repayment assistance Corporate (@6 Feb 21) 3.6 bil 17% RM20.6bil loans outstanding (18% of total gross loans) Total SME assistance: 3.8 bil RM20.6bil H1FY
Slide 6: Loans by stages
Loans Loans by stages Loans by ECL Stages (RM’ bil) Breakdown by Business Segments (%) Stage 1 Stage 2 Stage 3 Stage 1 BNM 6-month Targeted loan moratorium Repayment Assistance 100.8 102.0 104.5 107.2 107.4 110.6 111.9 WB 2% 2% 2% 2% 2% 2% 2% BB 11% 11% 11% 11% 12% 12% 13% 87% RB 84% 83% Q1FY20 Q2FY
Slide 7: GCFO Presentation – Financial Overview
GCFO PRESENTATION Jamie Ling 8 - 24 Financial Overview
Slide 8: Q3FY21 Financial overview
Financial Overview Q3FY21 Financial overview 1 Capital • CET1 strengthened further to 13.5% (+108bps YTD) • Adequate loss absorption capacity • Provision of RM2.83bil for the Global Settlement in Q4FY21 (proforma – 2.5% impact to capital) 2 Liquidity & Funding • Highly liquid (FHC LCR of 155.8%, LDR
Slide 9: 9MFY21 Performance summary – P&L
Financial Overview 9MFY21 Performance summary – P&L P&L Q3FY21 Q2FY21 QoQ Change 9MFY21 9MFY20 YoY Change (RM’ mil) Total Income 1,176 1,155 2% 3,423 3,238 6% Expenses 545 524 4% 1,608 1,607 PBP 631 631 1,816 1,631 11% Net Impairment 262 333 21% 645 134 >100% PATMI 264 237 11%
Slide 10: 9MFY21 Performance summary – balance sheet
Financial Overview 9MFY21 Performance summary – balance sheet Balance Sheet Q3FY21 Q2FY21 QoQ Change 9MFY21 FY20 YTD Change (RM’ bil) Gross Loans 111.9 110.6 1% 111.9 107.2 4% GIL 1.73% 1.57% 16bps 1.73% 1.73% LLC 103.4%1 99.9% 350bps 103.4%1 93.4%1 996bps Customer Deposits 119.0 114.8
Slide 11: Additional items to highlight
Underlying Additional items to highlight P&L (RM’ mil) Q3FY21 Q2FY21 QoQ Change 9MFY21 9MFY20 YoY Change Income – Reported 1,176 1,155 2% 3,423 3,238 6% Net modification (loss)/ unwinding 19 23 (15) - - Income after adjusted item 1,157 1,132 2% 3,438 3,238 6% Expenses - Reported 545 524 4%
Slide 12: Sustained income growth
Income Sustained income growth Business Segments Q3FY21 Q2FY21 QoQ Change 9MFY21 9MFY20 YoY Change (RM’ mil) Wholesale Banking 387 398 3% 1,192 953 25% Investment Banking 86 91 5% 253 224 13% Retail Banking 437 401 9% 1,180 1,112 6% Business Banking 104 93 12% 277 271 2% Group Fundin
Slide 13: Good PBP growth
PBP & PATMI Good PBP growth Business Segments Q3FY21 Q2FY21 QoQ Change 9MFY21 9MFY20 YoY Change (RM’ mil) Wholesale Banking 308 329 6% 979 733 34% Investment Banking 38 46 17% 116 86 35% Retail Banking 226 185 22% 540 472 15% Business Banking 69 58 18% 174 160 9% Group Funding & Othe
Slide 14: P&L walk
Group P&L P&L walk NIM NoII % CTI Effective Tax Rate 9MFY21 1.85% 37.7% 47.0% 18.1% 9MFY20 1.93% 36.1% 49.6% 20.6% YoY Growth 4% 10% 6% 11% >100% 22% 31% 19% 2% 21% 123 78 15 1 1,093 26% 97 2 866 19% 511 74% 81% Net Interest Non-Interest Total RM’ mil Net mod loss Expenses PBP
Slide 15: NIM continued to improve QoQ
NIM NIM continued to improve QoQ Net Interest Margin (NIM) Movement (QoQ) YoY NIM 9MFY21: Reported: 1.85% ( 8bps) Underlying: 1.86% ( 7bps) Divisions Funding + Deposits 9MFY20: 1.93% bps Reported: Underlying: 5.4 11bps 6.2 12bps 3.9 1.3 6.0 0.2 2.1 3.3 203 6.4 197 192 186 Q2FY21 Net Q2FY21 Ret
Slide 16: Moderating trading and investment income QoQ
NoII Moderating trading and investment income QoQ YoY Growth 26% 40% 12% 43% 14% 4% 8% >100% 92% 10% Q1FY21: 478.5 Q2FY21: 414.9 29 Q3FY21: 397.3 30 17 28 3 24 17 75 1,291 31 1,168 Corporate & Investment Group Group Treasury Wealth Business General Life RM’ mil Transaction Bankin
Slide 17: Costs well-managed
Expenses Costs well-managed Business Segments Q3FY21 Q2FY21 QoQ Change 9MFY21 9MFY20 YoY Change (RM’ mil) Wholesale Banking 79 69 15% 213 220 3% Investment Banking 48 45 7% 136 138 1% Retail Banking 212 216 2% 639 640 Business Banking 35 34 2% 103 110 7% Group Funding & Others 90 7
Slide 18: Consistent loans growth underpinned by Retail and SME loans
Loans Consistent loans growth underpinned by Retail and SME loans Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers type: ROA1: RoTA1: Fixed rate – 21% Islamic – 30% Retail – 55% 0.77% 0.78% Variable rate –79% Conventional – 70% Non-retail – 4
Slide 19: Credit cost remained elevated
Asset Quality Credit cost remained elevated Net Impairment (YoY Movement) Gross Impaired Loans, GIL and LLC Ratios Retail Wholesale Loan Loss Coverage 1 RM’ mil Q1FY21: 49.9 Business GIL Ratio Q2FY21: 332.5 114.0% 100.5% 93.4% 105.2% 103.4% Q3FY21: 262.1 79.7% 525.8 1.86% 1.70% 1.73% 1.71% 1.73% 274
Slide 20: Remain watchful on asset quality
Asset Quality Remain watchful on asset quality Impaired Loans by Sector Loans by Internal Risk Grade Dec’20 Mar’20 Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Sector Composition YTD Growth 3% 1% RM’ mil RM’mil RM’ bil Agriculture 82 4% 85 3% Mining and quarrying 37
Slide 21: Customer deposits trending higher
Deposits Customer deposits trending higher Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry 9MFY21 119.0 5% 4%1 9MFY21 33.5 16% 15%1 FY20 113.0 6% 2%2 FY20 28.8 16% 10%2 FY19 106.9 12% 5%2 FY19 2
Slide 22: Sound capital and liquidity positions
Capital Sound capital and liquidity positions RWA/Total Assets Capital Adequacy Ratios3 RM’ bil CET 1 Tier 1 Total CAR Total Assets RWA/Total Assets Peers 1 2 72.2% 72.2% FHC 2 2 2 65.0% 64.4% 65.3% 16.3% 16.4% 15.4% 15.8% 59.5% 59.3% 12.5% 13.6% 58.4% 58.5% 57.7% 12.4% 5 13.5% 5 172.5 11.6% 11.1% 5
Slide 23: 9MFY21 Summary
9MFY21 Summary 9MFY21 – Navigating through Post-BNM mora period well Strong underlying businesses Revenues and PBP remaining resilient Continue to support customers Further targeted repayment assistance support to borrowers Building balance sheet buffers Net provisions to remain elevated in Q4FY21 w
Slide 24: Global Settlement
Global Settlement Global Settlement Resolved legacy matters Focus on strategy execution Sufficient CET 1 capacity without equity raising Final dividends cancelled Supplement with Tier 2 capital raising Highly liquid Contingency plans in place Financial resilience Liquidity bolstered and capital posi
Slide 25: Thank You
THANK YOU
Slide 26: Yearly performance
9MFY21 Results Yearly performance PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) PATMI: ROE: Total Income Total Income Non-interest Income % PATMI ROE (%) CAGR FY17-FY20: 0.4% CAGR FY17-FY20: 0.4% CAGR FY17-FY20: 3.9% YoY Growth 20.8% YoY Growth 2.1% YoY Growt
Slide 27: Non-interest income and PATMI mix
NoII & PATMI Non-interest income and PATMI mix Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY) 26% Corporate Banking 7% 8% >100% Group Retail Funding Banking 31% 15% Group & Others Insurance Treasury 35% Wholesale 40% -43% & Banking Market 27% 20% Insurance
Slide 28: Impairments
Asset Quality Impairments Net Impairment / (Writebacks) and GIL Ratio Total impairments by category (RM’ mil) Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 QoQ Change 9MFY20 9MFY21 YoY Change ECL Stage 1 & 2 / CP – Non defaulted1 (128) (38) (29) 116 31 121 454 >100% (195) 605 >100% ECL Stage
Slide 29: Loans by sector vs industry
Loans Loans by sector vs industry AmBank Group (RM’ bil) Loans Composition 3% 2% 12% 1% 4% 7% 4% 5% 7% 1% 54% ≈ 100% YTD Growth 8% 3% 2% 38% 2% 4% 16% 9% 3% 1% 7% 18% 4% Dec'20 111.9 60.5 2.7 4.8 8.0 4.1 5.5 7.9 0.9 2.6 13.7 1.2 - Wholesale, Finance, Mining & Electricity, T
Slide 30: Divisional Performance
Divisional Performance
Slide 31: Wholesale Banking
Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Total Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth: 51% YoY Growth: 4% Total Income RM1,192 mil 9MFY20: 611 9MFY21: 636 259 269 13% 220 188 Transaction 164 161 146 Banking 16% 2% Transaction Wholesale Banking Ba
Slide 32: Wholesale Banking
Wholesale Banking Wholesale Banking Income Statement YoY Growth 30% 14% 25% 3% 34% >100% 4% 3% 4% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY21 841 351 1,192 213 979 158 821 186 636 9MFY20 645 308 953 220 733 (58) 790 179 61
Slide 33: Investment Banking
Investment Banking Investment Banking League Table Market Share of Value and Volume Traded on Bursa (KLSE)1 Market Share1 As At Trading Value Trading Volume Rank2 31 Dec 2020(%) 3.8% DCM (Overall MYR Bonds) 10.7% 4 3.6% 3.6% 3.4% 3.2% Islamic Sukuk 12.2% 4 5.5% 5.0% Unit Trust 8.1% 5 4.9% 4.8% St
Slide 34: Investment Banking
Investment Banking Investment Banking Income Statement YoY Growth 15% 12% 13% 1% 35% 9% 32% 32% 31% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY21 34 219 253 136 116 (7) 123 26 97 9MFY20 29 195 224 138 86 (7) 93 20 74 9MFY21
Slide 35: Retail Banking
Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth: 66% Total Income YoY Growth: 8% RM1,180 mil 23% Others 35% 1% 13% 9MFY20: 249 9MFY21: 267 Retail SME 11% Auto 14% 43% Wealth Others 146 8% Retail 7% SME Auto Cards 7% 2
Slide 36: Cards in circulation
Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth: 27% Merchant volume (RM'mil) QoQ Growth: 3% YoY Growth: 16% YoY Growth: 72% Merchants in force ('000) QoQ Growth: ≈ YoY Growth: 2% 9MY20: 2,499 37 36 9MFY21: 4,310 36 35 35 35 35 1,853 9MFY20: 7,620 9MFY21:
Slide 37: Retail Banking
Retail Banking Retail Banking Income Statement YoY Growth 6% 6% 6% 15% 30% 8% 8% 8% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY21 982 197 1,180 639 540 188 352 85 267 9MFY20 926 186 1,112 640 472 145 327 78 249 9MFY21 PAT 9M
Slide 38: Distribution Channels
Retail Banking Distribution Channels Regional Branches ATM CRM2 Offices Perlis 1 3 1 Kedah 6 19 6 Pulau Pinang 14 43 15 2 Perak 18 40 21 2 Selangor 36 175 42 2 Kuala Lumpur 23 78 25 3 Putrajaya 1 4 2 Negeri Sembilan 7 39 8 1 Melaka 6 26 8 1 Johor 21 72 30 1 Pahang 8 20 12 1 Population Density Tereng
Slide 39: Business Banking
Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) YTD Growth: 8% QoQ Growth: 19% YoY Growth: 44% Non-trade Trade 11,898 12,160 11,248 11,420 10,850 10,069 10,425 2,569 2,537 2,640 2,647 9MFY20: 76 9MFY21: 109 2,527 2,585 2,462 9,330 9,623 8,264 8,607 8,774 7,607 7,898
Slide 40: Business Banking
Business Banking Business Banking Income Statement YoY Growth 2% 4% 2% 7% 9% 48% 45% 48% 44% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY21 210 67 277 103 174 32 142 33 109 9MFY20 206 65 271 110 160 62 98 22 76 9MFY21 PAT 9MF
Slide 41: Islamic Banking
Islamic Banking Islamic Banking Income Statement YoY Growth 2% 2% 4% >100% 52% 84% 43% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ 9MFY21 676 222 454 278 176 13 163 9MFY20 664 227 436 71 365 81 285 9MFY21 PATZ 9MFY20 PATZ Positive growth in 9MFY21 Contraction in 9
Slide 42: General Insurance
General Insurance General Insurance Loss Ratio and Combined Ratio PBT and PAT (RM’ mil) Loss Ratio Combined Ratio 97% 94% 92% 92% 93% 92% YoY PBT Growth: 6% YoY PAT Growth: 2% PBT PAT 282 63% 57% 58% 60% 59% 57% 260 242 237 FY17 FY18 FY19 FY20 9MFY20 9MFY21 222 192 Gross Premium Mix and Growth (
Slide 43: Insurance and Group Funding & Others
Insurance & Others Insurance and Group Funding & Others Income Statement – Insurance (General, Life & Takaful) YoY Growth 10% 13% 6% 67% 6% 22% 12% RM'mil Total Income Expenses PBP Impairment PBT Tax PAT 9MFY21 544 289 254 (1) 255 36 218 9MFY20 496 257 239 (2) 241 47 194 Income Stateme
Slide 44: Shareholding structure
Corporate Structure Shareholding structure 23.8%1 AmCorp 13.0% EPF 10.9% PNB 9.3%2 Others 43.0% As at 31 December 2020 AMMB Holdings Berhad Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful 100% AMAB Holdings Sdn Bhd 100% AmBank (M) Berhad 51% AmGeneral Hold
Slide 45: Credit ratings, target price and recommendations
Ratings & Target Price Credit ratings, target price and recommendations Credit Ratings 9MFY21 Ratings AMMB AmBank (M) AmBank Islamic AmInvestment RAM LT: AA2, ST: P1 LT: AA2, ST: P1 LT: AA2, ST: P1 LT: AA2, ST: P1 Outlook: Stable Outlook: Stable Outlook: Stable Outlook: Stable S&P LT: BBB+, ST: A-2
Slide 46: 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 Q3FY21 vs Q2FY21 YoY gr
AMMB Holdings Berhad — 9MFY2021 Earnings Presentation on 6ix