Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — 1H FY2021 Earnings Presentation

49 slides from Malayan Banking Bhd's earnings presentation, Aug 26, 2021

  1. Slide 1: Investor Presentation: Financial Results 2Q and 1H FY2021

    Dis claimer: The con ten ts of this document/information remain the in tellectual property of M ayban k and n o part of this is to be reproduced or transmitted in an y form or by an y means , in cludin g electronically, photocopyin g, recording or in an y information storage and retrieval s ystem wi

  2. Slide 2: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  3. Slide 3: Maybank Group 1H FY2021 Overview

    Maybank Group 1H FY2021 Overview 1  Net operating income of RM13.0 billion, up 5.1% YoY, for 1H FY2021 from:  Net fund based income increase of 16.1% as NIM expanded 25 bps YoY on lower interest expense as Business Group CASA expanded 19.0%, led by growth in all home markets. Group loans grew 4.1%

  4. Slide 4: Financing Support for Customers

    Financing Support for Customers % of Loans Under Repayment Assistance, Relief and R&R Programmes Malaysia • 26.7% of total CFS loans outstanding (o/s) Against Respective Total Home Market Loans % of Outstanding As at As at is under relief programmes: Loan Balanc e^ 10/5/21 13/8/21 o Deferred instalm

  5. Slide 5: Continued Growth in Digital Solutions and Platforms

    Continued Growth in Digital Solutions and Platforms • Total of 2.7 mil app installs YTD 30 Jun 2021 (1Q 2021: 1.7 mil). Malaysia Solid • MAE e-wallet sign ups grew by 9% QoQ in 2Q 2021 driven by • MAE “Not A Maybank User” campaign drove NTB sign ups strong activation and usage campaigns. during the

  6. Slide 6: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  7. Slide 7: P&L Summary: 1H FY2021

    P&L Summary: 1H FY2021 PPOP up 7.9% YoY on the back of fund based income increase due to lower interest expense and contained cost growth More 1H 1H 2Q 1Q 2Q RM million YoY QoQ YoY details on FY2021 FY2020 FY2021 FY2021 FY2020 s.23 Net fund based income * 9,501.3 8,184.7 16.1% 4,853.1 4,648.2 4.4% 3

  8. Slide 8: Net Fund Based Income: 1H FY2021 YoY Trends (1/2)

    Net Fund Based Income: 1H FY2021 YoY Trends (1/2) Strong CASA growth across home markets; while Group loans growth driven out of Malaysia and Singapore Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  +4.1%  +4.7%  +8.7%  (15.0)% 316.1 330.9 119.5

  9. Slide 9: Net Fund Based Income: 1H FY2021 (2/2)

    Net Fund Based Income: 1H FY2021 (2/2) NIM expands 24bps YTD (Ann.) and 6bps QoQ as continued CASA growth across home markets reduced deposit cost Net Interest Margin (%) QoQ Trend 5 Year Trend 2.37 2.15 2.31 1.96 2.05 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 2.36 2.34 2.33 2.27 2.10 FY2017 FY2018 FY2019

  10. Slide 10: Net Fee Based Income: 1H FY2021 (YoY)

    Net Fee Based Income: 1H FY2021 (YoY) YoY decline on lower investment disposal gains and MTM losses, despite improvement in core fees 1H 1H RM million YoY FY2020 FY2021 Commission, service charges and fees 1,546 1,924  24.4% Investment & trading income 1,248 566  (54.6)% Unrealised gain/ (losses)

  11. Slide 11: Net Fee Based Income: 2Q FY2021 (QoQ)

    Net Fee Based Income: 2Q FY2021 (QoQ) QoQ fee income impacted by lower core fees on reduced mobility and MTM losses in financial liabilities 2Q 1Q 2Q RM million QoQ YoY FY2021 FY2021 FY2020 Commission, service charges and fees 898 1,026  (12.4)% 711  26.4% Investment & trading income 234 333  (29

  12. Slide 12: Overheads: 1H FY2021 (YoY)

    Overheads: 1H FY2021 (YoY) Continued cost management resulted in CIR of 44.2% and positive JAWs of 3.4% YoY 1H 1H 2Q 1Q 2Q RM million YoY QoQ YoY FY2021 FY2020 FY2021 FY2021 FY2020 Personnel Costs 3,432.5 3,371.0 1.8% 1,709.8 1,722.7 (0.7)% 1,644.0 4.0% Establishment Costs 974.0 916.4 6.3% 490.9 483

  13. Slide 13: Asset Quality (1/2)

    Asset Quality (1/2) Top-ups in provisioning for new and existing impaired loans resulted in loan loss coverage of 124.3% (including Reg. Reserves) Allowances for losses on loans 1H FY2021 ECL includes: 122.2% 124.3% 115.9% 106.8% • ~RM440 mil in 99.2% management overlay Loan loss coverage incl. for

  14. Slide 14: Asset Quality (2/2)

    Asset Quality (2/2) Group GIL reduced QoQ to 2.18% on write-offs, repayments and recovery proceeds received Group Gross Impaired Loans (GIL) Ratio Composition GIL Ratio Components Jun 2021 Mar 2021 Dec 2020 Sep 2020 Jun 2020 Non Performing Loans (NPL) 1.92% 1.98% 2.02% 1.93% 2.03% Restructured & Res

  15. Slide 15: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets QoQ trends across segments relatively stable, with some uptick in Indonesia’s business segments Consumer Mortgage Auto Finance Credit Cards 3.56% 7.98% 3.11% 3.12% 2.78% 2.38% 2.32% 7.16% 5.98% 5.46% 5.85% 2.22% 1.54% 2.44% 1.31% 2.35% 1.97% 1.74% 1.

  16. Slide 16: Strong Liquidity & Capital Positions: June 2021

    Strong Liquidity & Capital Positions: 30 June 2021 LCR healthy at 137.2%, while Group CET1 capital ratio at 14.20% (assuming 85% reinvestment rate) After proposed dividend, Liquidity Risk Indicators Before proposed dividend assuming 85% reinvestment rate LCR LDR LTF LTFE 18.68% 17.86% 17.42% 146.6%

  17. Slide 17: Dividend: 1H FY2021

    Dividend: 1H FY2021 Single-tier first interim dividend of 28 sen per share, of which 14 sen is electable under the Dividend Reinvestment Plan Dividend (sen), Payout Ratio (%) and Cash Component (%) 79.9% 78.5% 78.1% 78.5% 87.8% 91.2% Dividend 76.5% 74.9% 74.7% 71.9% 76.3% 77.3% 75.2% Payout Ratio 10

  18. Slide 18: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  19. Slide 19: Market Outlook

    Market Outlook 2021 industry outlook for our home markets Key Indicators Outlook • Growth affected by tighter containment measures since • GDP: 4.2% (2021F) vs -5.6% (2020) May’21 amid surge in infections, cushioned by global • System loan: 3.8% (2021F) vs 3.4% (2020) economic recovery; additional e

  20. Slide 20: Maybank Performance Outlook

    Maybank Performance Outlook Group guidance for FY2021 Group’s Key Priorities and Guidance • Leverage fee-based income opportunities in wealth management, global markets, investment banking, asset management Income Growth and insurance. • Accelerate product rollouts on our digital platform to increas

  21. Slide 21: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  22. Slide 22: International & Malaysia Portfolio Mix 1H FY2021

    International & Malaysia Portfolio Mix 1H FY2021 Net Operating Income Profit Before Tax # Gross Loans * 1H FY2021 (Jan 21 – Jun 21) 2.0% Overseas: 5.8% Overseas: Overseas: 9.9% 17.7% 7.3% 31.3% 19.7% 38.4% 5.4% 15.6% RM13.00 RM5.90 RM541.5 billion billion 25.7% billion 68.7% 61.6% 80.3% Malaysia Sin

  23. Slide 23: Segmental Performance of Businesses: 1H FY2021 (1/2)

    Segmental Performance of Businesses: 1H FY2021 (1/2) Net Operating Income 1H FY2020  +5.1% Group Global Banking  (3.8)% 1H FY2021 1H FY2020: 5,212 1H FY2021: 5,015 12,373 12,999  +11.8%  (8.5)%  +28.4%  +29.8%  +6.9% 6,319 7,067 RM million 4,542 4,154 618 794 860 919 52 67 Total Group Communi

  24. Slide 24: Segmental Performance of Businesses: 1H FY2021 (2/2)

    Segmental Performance of Businesses: 1H FY2021 (2/2) Net Fund Based Income 1H FY2020  +16.1% Group Global Banking  +7.7% 1H FY2021 1H FY2020: 2,765 1H FY2021: 2,978 9,501 8,185  +11.5%  +7.1%  +21.9%  (8.7)%  +3.8% 4,879 5,440 RM million 2,648 2,836 632 656 116 141 1 1 Total Group Community G

  25. Slide 25: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million 1H FY2021 1H FY2020 YoY 2Q FY2021 1Q FY2021 QoQ 2Q FY2020 YoY Net interest income 655.7 631.5 3.8% 337.7 318.0 6.2% 316.0 6.9% Net earned premiums 4,695.8 3,685.8 27.4% 2,166.5 2,529.2 (14.3)% 1,740.9 24.5% Other operating income (667.3)

  26. Slide 26: Group Gross Loans Growth: June 2021

    Group Gross Loans Growth: 30 June 2021 % of 30 Jun 31 Mar 31 Dec YTD 30 Jun QoQ YoY Portfolio 2021 2021 2020 Ann. 2020 Group Gross Loans 541.5 534.4  1.3% 523.7  6.8% 520.2  4.1% Malaysia (RM billion) 61% 330.9 329.8  0.3% 326.7  2.5% 316.1  4.7% Community Financial Services (reported) 76% 250

  27. Slide 27: Malaysia Loans Growth: June 2021

    Malaysia Loans Growth: 30 June 2021 % of 30 Jun 31 Mar 31 Dec YTD 30 Jun RM billion QoQ YoY Portfolio 2021 2021 2020 Ann. 2020 Community Financial Services (reported) 76% 250.4 248.8  0.6% 247.0  2.8% 234.6  6.7% Community Financial Services (rebased)¹ 76% 250.4 248.8  0.6% 247.0  2.8% 234.6 

  28. Slide 28: Group Deposits Growth: June 2021

    Group Deposits Growth: 30 June 2021 % of 30 Jun 31 Mar 31 Dec YTD 30 Jun QoQ YoY Portfolio 2021 2021 2020 Ann. 2020 Group Gross Deposits 605.0 599.6  0.9% 580.2  8.5% 573.3  5.5% Malaysia (RM billion) 61% 372.2 370.3  0.5% 355.7  9.3% 355.4  4.7% Savings Deposits 18% 64.9 62.5  3.7% 56.8  28

  29. Slide 29: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 90.6% 90.1% 89.4% 88.7% 92.5% 89.7% 89.7% 87.8% 89.0% 89.3% 44.5% 45.4% 40.2% 42.8% 42.1% 50.2% 42.0% 47.1% 46.8% 49.0% 41.1% 44.3% 39.1% 39.6% 37.3% 42.3% 41.7% 43.6% 44.8% 39.7% Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Jun 20 Sep 20 Dec 20 Mar

  30. Slide 30: RWA Optimisation and Funding Management

    RWA Optimisation and Funding Management Group Gross Loans & Group RWA Funding Breakdown Borrowings and Capital Instruments Operational RWA Market RWA by Currency Credit RWA Gross Loans FI Deposits, 5% SGD, 6% HKD, IDR, 5% 541.5 Equity, 11% 10% 520.2 523.7 JPY, CNH, 5% 11% 427.3 THB, 3% Borrowings, 5

  31. Slide 31: Exposure to Oil & Gas and Real Estate Sectors: June 2021

    Exposure to Oil & Gas and Real Estate Sectors: 30 June 2021 Group Exposure to Direct & Indirect Oil & Gas Borrowers Real Estate Exposure to Maybank Group Malaysia Singapore Indonesia Others Non-Retail Malaysian Borrowers 2.60% 1.75% 0.61% 0.04% 0.20% High Rise Residential, Note: Others, 35.9% 28.1%

  32. Slide 32: Key Operating Ratios

    Key Operating Ratios % 1H FY2021 1H FY2020 YoY 2Q FY2021 1Q FY2021 QoQ 2Q FY2020 YoY Return on Equity 4 10.5 7.5 3.0% 9.4 11.7 (2.3)% 4.7 4.7% Net Interest Margin 4 (bps) 2.34 2.09 25 bps 2.37 2.31 6 bps 1.95 42 bps Fee to Income Ratio 26.9 33.8 (6.9)% 21.4 31.9 (10.5)% 32.0 (10.6)% Loans-to-Deposit

  33. Slide 33: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  34. Slide 34: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Market share Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Loans Total consumer (Household) 17.9% 18.1% 18.1% 18.2% 18.2% Auto (Hire Purchase + Block Discounting + Floor Stocking) 30.3% 30.4% 30.4% 30.4% 30.3% Total mortgage * 14.3% 14.4% 14.5

  35. Slide 35: Community Financial Services: Overview of Malaysia and Group Wealth Management Portfolio

    Community Financial Services: Overview of Malaysia and Group Wealth Management Portfolio CFS Malaysia Group Wealth Management Total loans on an upward trend of 6.7% YoY and 0.6% QoQ Total Financial Assets grew 7.6% YoY to RM387.8 billion contributed by investments growth of 37.5%  +6.7% YoY  +2.8%

  36. Slide 36: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  37. Slide 37: Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio

    Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio Total Corporate Banking loans in Malaysia decreased 0.8% Group Securities Portfolio¹ grew 2.4% YoY YoY to RM80.3 billion RM billion  +2.4% YoY 47.7 Term Loan 214.1 215.2 217.5 209.0 48.4 (1.7%) YoY 204.1 7.3 7.4 8

  38. Slide 38: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 1H FY2021 Total Income Breakdown by Country 1H FY2021 Fee-based Income for Malaysia Underwriting & Other Fee Income Hong Kong Others Placement Fees 5% Phillipines 4% 5% 2% Advisory Fees Arrangers' 1% 2% Fees Indonesia Agency/ 8% 4% Guara

  39. Slide 39: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  40. Slide 40: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 1H FY2021 1H FY2020 YoY 2Q FY2021 1Q FY2021 QoQ Net fund based income 301.08 313.24 (3.9)% 158.13 142.95 10.6% Net fee based income 125.98 189.92 (33.7)% 30.23 95.75 (68.4)% Net income 427.06 503.16 (15.1)% 188.35 238.70 (21.1)% Overhead expenses (232.57) (

  41. Slide 41: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Business deposits higher at 50.8% of total deposits % of 30-Jun 31-Dec YTD 30-Jun SGD Billion YoY  +3.7% YoY Portfolio 2021 2020 Ann. 2020 48.8 51.6 50.6 Consumer - Time CFS 58% 24.0 22.6 11.9% 21.8 10.2% Deposit

  42. Slide 42: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  43. Slide 43: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary IDR billion 1H FY2021 1H FY2020 YoY 2Q FY2021 1Q FY2021 QoQ Net Fund Based income 3,459 3,936 (12.1)% 1,711 1,748 (2.1)% Net Fee Based income 952 1,184 (19.6)% 498 453 10.0% Net income 4,410 5,119 (13.8)% 2,210 2,201 0.4% Overhead expenses (2,851) (3,036) (6.1)% (1,430

  44. Slide 44: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown % of 30 Jun 31 Mar 30 Jun Key Operating Ratio Jun-21 Dec-20 Jun-20 YoY IDR Trillion QoQ YoY Portfolio 2021 2021 2020 Profitability & Efficiency CFS 66.6% 65.8 68.6 (4.2)% 79.7 (17.5)% Ret

  45. Slide 45: Table of Contents

    Table of Contents Executive Summary 2 2Q & 1H FY2021 Financial Performance 6 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 33 3. Global Banking 36 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other Segments 45

  46. Slide 46: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM211.1 billion 12% Jun 20 RM million 1H FY2021 1H FY2020 YoY 64.2 Jun 21 57.4 7% Total Income 3,408.6 2,399.2 42.1% 12% 46.4 42.6 43.2 Profit Before Tax 2,343.6 861.6

  47. Slide 47: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 30.7% 30.8% 30.8% 30.7% 30.7% Key Products Jun 21 Jun 20 Automobile Financing 48.2% 48.6% 28.9% 27.9% 27.0% 27.4% 27.4% Home 26.6% 26.8% Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Term Financing 27.3% 28.2% Financi

  48. Slide 48: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Net Adjusted Premium/Contribution Life & Family (New Business) Market Share (Malaysia) Single Premium 84.8% Regular Premium 25.1% 21.9% 18.6% 19.5% 19.1% Credit Premium  6.5% 13.0% 16.5% 17.2% 18.3% No. 4 in Life/Family Group Premium  21.2% 13.9% 13.8%

  49. Slide 49: Malayan Banking Berhad contact details

    MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Disc laimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the i

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