Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Invest Malaysia 2010
40 slides from Malayan Banking Bhd's conference presentation, Mar 30, 2010
Slide 1: Invest Malaysia 2010
Dato’ Sri Abdul Wahid Omar Invest Malaysia 2010 President & CEO Maybank Shangri-La Hotel, Kuala Lumpur Ridha Wirakusumah 30-31 March 2010 President Director PT Bank Internasional Indonesia Tbk
Slide 2: Introduction
Introduction Recap from Invest Malaysia 2009: L Leading di banking b ki ffranchise hi iin M Malaysia l i with ith market k t leadership l d hi across almost l t all key business sectors. Stronger footing after recent RM6 billion rights ississue e which hich has enabled Maybank to maintain its cr
Slide 3: Leading Banking Franchise; Financial Footing; Regional Presence; Strategy
Leading Banking Franchise Stronger Financial Footing St th i Regional Strengthening R i l Presence P Strategy 2010 and beyond 3
Slide 4: Malaysia's Leading Banking Franchise
Malaysia’s Leading Banking Franchise Total assets: RM331 billion Largest bank in Malaysia Largest market capitalisation of RM52 billion. Largest branch network in 386 branches, 2,800 ATMs, 9 million customers. Malaysia No.1 Internet banking with a dominant market share of 55% Presence in key
Slide 5: Maybank continues to lead…
Maybank continues to lead… Total Assets (RM bn): 31 Dec 2009 Net Loans (RM bn): 31 Dec 2009 Maybank 331 Maybank 195 CIMB 240 CIMB 142 Public Bank 217 Public Bank 135 RHB Cap 115 RHB Cap 67 AMMB 95 AMMB 64 HL Bank 80 HL Bank 35 EON Cap 46 EON Cap 32 Affin 40 Affin 22 Alliance 32 Alliance 20 Deposits
Slide 6: Domestic Market: Leading market position in most sectors
Domestic Market: Leading market position in most sectors Diversified across all financial products and services Within the top 3 in almost all key business sectors Network Consumer Corporate Islamic Deposit Cards Investment Insurance & Banking Asset Mgmt %) 55% Market Share (% New Business Premi
Slide 7: Stronger Financial Footing
Leading Banking Franchise Stronger Financial Footing St th i Regional Strengthening R i l Presence P Strategy 2010 and beyond 7
Slide 8: Strong Performance in 1H 2010
Strong Performance in 1H 2010 Net Income grew 35% YoY PATAMI grew 44% YoY RM 7,500 million 1875.3 Net 6408.2 Income: +35% 21.3% YoY Non-Interest 1,500 4729.9 2,360.1 1306.7 5,000 54.1% Income: +78% YoY 1,327.2 3151.1 3257.1 737.5 Islamic Banking Income: +25% 1,000 2684.7 590.3 2,500 1,142.0 1,218.1
Slide 9: Stable Net Interest Margin and Improving Asset Quality
Stable Net Interest Margin and Improving Asset Quality Increasing Net Interest Income and Improving Group Gross & Net NPL Ratio, Stable Net Interest Margin and Higher Loan Loss Coverage 2.82% 2.77% 5.12% 2.79% 2.87% 4.80% 117.8% 112.9% 2.70% 101.5% 99 2% 100.2% 99.2% 100 2% 99.8% 113.2% 1.68 2.52% 1
Slide 10: Robust loans and business growth
Robust loans and business growth Robust loans growth in key business segments segments, particularly in the consumer segment Housing Loan Growth Cards Growth 1H FY10 YoY 800 Market share: 14% Maybank Industry * RM million 600 Card base 4.4% - 0.2% 400 Billings 12.2% 6.9% Receivables 8.3% % 5.3% % 20
Slide 11: Strengthening Regional Presence
Leading Banking Franchise Stronger Financial Footing St th i Regional Strengthening R i l Presence P Strategy 2010 and beyond 11
Slide 12: Our International Presence
Our International Presence Other Markets Bahrain Pakistan China Papua New Brunei Guinea An Binh Bank Treasury Centres (91 branches). To increase branches to Treasury 150 Centres New York Growth in Vietnam (2 branches) Exploring selected to open 1 additional assets branch. and London Treasury activit
Slide 13: Regional ranking
Regional ranking Total Assets (RM bn): 31 Dec 2009 Net Loans and Deposits (RM bn): 31 Dec 2009 535 SBI 709 SBI 938 DBS 327 DBS 633 437 UOB 249 OCBC 476 279 Maybank 203 UOB 454 231 OCBC 202 ICICI 346 246 Net Loans Maybank 330 No.6 ICICI 194 176 Net Deposits CIMB 240 CIMB 149 179 Public Bank 217 Publi
Slide 14: International: Enhancing Asset and Profit Contribution
International: Enhancing Asset and Profit Contribution Key Markets IIndonesia d i Senior management team in BII in place. Continue building scale and scope for Seeing turnaround of profitability Singapore and Indonesia which already Recorded annualised loans growth of 23% to Dec 09 have infr
Slide 15: International: Assets and profits contribution
International: Assets and profits contribution International targeted to contribute 40% of loans and profits by 2015 As at 31 December 2009 1H 10 11.1 Others: 5% International Loans PBT ational 14.6 Indonesia: 7% Singapore: 15% (RM b) (RM m) 27% 759 Indonesia: 5% 3% Interna 2 33 Singapore: 21% Oth O
Slide 16: Singapore: Financial Performance & Business Drivers
Singapore: Financial Performance & Business Drivers Financial Data 1H10 1H09 YoY growth Loan Loss Provision Income Statement (S$ m) 60 50.7 Total Profit/(Loss) Before Tax 170.7 98.6 73.2% 50 42.4 SGD million Loans & Deposits (S$ m) 40 31.3 Total Loans 17,027 15,967 6.6% 30 24.4 Total Deposits 20,237
Slide 17: BII: Consolidated Income Statement
BII : Consolidated Income Statement Income Statement Jul - Dec 09 Oct - Dec 08 Rp billion (Rp1000 = RM0.36) Contribution Contribution Interest Income 2,993 1,654 Interest Expenses -1402 -992 Net Interest Income 1,591 662 N IInterest Non t t Income I 960 466 Gross Operating Income 2,551 1,128 Operati
Slide 18: Pakistan: MCB Bank
Pakistan: MCB Bank Net Income grew 30% YoY 45,000 Net ■ Completed 20% stake purchase in 41,157 Income: +30% August 2008. 40,000 5,553 Non-Fund ■ Represented by 2 members to the based 35,000 31,614 Board I Income: 6% -6% R million 30,000 ■ Management has focused on asset 5,908 portfolio and cost cont
Slide 19: Vietnam: An Binh Bank
Vietnam: An Binh Bank ■ Completed initial 15% stake in Sept 2008 Net Income grew 166% YoY and additional 5% stake in Dec 2009. 900 Net ■ Appointed 1 member to the Supervisory Income: +166% 778.2 Committee and 1 to Board of Directors. 800 Non-Fund ■ Seconded a Chief Risk Officer 700 87.9 based ■ Incr
Slide 20: Bank Internasional Indonesia (BII)
Bank Internasional Indonesia (BII) 20
Slide 21: Indonesia is the Most Profitable Market in Asia
Indonesia is the Most Profitable Market in Asia • These conditions Th diti are unlikely lik l tto di dissipate i t soon • Assuming a doubling of bank assets by 2015, Indonesian banks will have a future earnings of US$5.0billion which implies a future sector market capitalization of US$65billion (aga
Slide 22: Our Aspirations: Top 5 Banks by 2015
Our Aspirations 5 x 5 x 5 Top 5 Banks T B k b by Leading in 5 By 2015 Assets & Areas Returns In line with Maybank’s aspiration to be One of SEA & South Asia Top 5 Banks by 2015 22
Slide 23: Rationale to be in the areas we choose (1/2)
Rationale to be in the areas we choose (1/2) 1. Leading banker for transportation industry • One of the banks that own motorcycle financing companies, both 2 wheelers and 4 wheelers • One of the banks that lend to shipping industry • Have a good base for airline business by partnering with Lion Air
Slide 24: Rationale to be in the areas we choose (2/2)
Rationale to be in the areas we choose (2/2) 4. Corporate: No. 1 in Structured Trade Financing & Resource Based Industry • Lucrative business given limited players in the market, very structured (minimize credit risk), short tenor and self liquidating • Indonesia is a resource based (commodity) coun
Slide 25: Leverage Synergy Opportunities With Maybank
Leverage Synergy Opportunities With Maybank Nascent syariah banking operations 5 branches, USD35 million loans Syariah Define business model and alignment with Bank Maybank Indocorp Banking IInvestment t t Replicate Maybank-IB in Indonesia Banking Create a p program g to allow Singapore g p
Slide 26: BII among peers – as of Dec 2009
BII among peers – as of Dec 2009 Total Assets (Rp. Tn) Total Deposits (Rp. Tn) Total Loan (Rp. Tn) Mandiri 375 BRI 255 BRI 206 BRI 318 BCA 245 Mandiri 178 BCA 283 Mandiri 230 BCA 123 BNI 227 BNI 189 BNI 120 CIMB Niaga 107 CIMB Niaga 86 CIMB Niaga 82 Danamon 97 Danamon 68 Danamon 60 Panin 76 Panin 56
Slide 27: Assets Growth
Assets Growth In I IDR billion billi Industry: 7% Industry: y 60,966 16% 12% Industry: 17% 3% 56,867 56,833 4% 55,972 55,016 54,556 53,040 Dec-06 Dec-07 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 27
Slide 28: Improvement in Key Drivers
Improvement in Key Drivers In IDR billion NII Gross Operating 4,779 3,100 7% Income 13% 4,446 2 756 2,756 Dec-08 Dec-09 Dec/08 Dec/09 Overhead Cost Total Operating Income 3% 3,049 Before Provision 2,963 1 729 1,729 17% 1,483 Dec-08 Dec-09 D /08 Dec/08 D /09 Dec/09 28
Slide 29: WOM: Improvement in Risk Area
WOM: Improvement in Risk Area Provision P i i expense (monthly) ( thl ) for f WOM portfolio tf li All the work is paying off at the bottom line in BII (Rp. Billion) Monthly Profit (Net Profit, Rp. billion) 10.17 9.98 76 8.54 8 37 8.37 8 23 8.16 8.23 8 16 65 58 56 5.79 51 45 40 3.04 35 1.16 1.21 31 2
Slide 30: WOM: Volume and Returns
WOM: Volume and Returns WOM is regaining market share Turnaround to positive returns M hl Sales Monthly S l Volume V l (# units) i ) ROA & ROE (%) 42,107 40,891 38,358 36 051 36,051 36 773 36,773 35,663 32.4% 31,109 18.0% 29,933 7.5% 8.9% 27,032 2.4% 0.6% 24,346 25,257 22,066 2007 2008 2009 2010 F -
Slide 31: Summary and Prospects
Summary and Prospects Indonesian macroeconomic outlook is positive on the back of infrastructure development, recovery in consumer spending, domestic investment and FDI, as well as stab stable e IDR 2009 was a year of consolidation in Bii, 2010-11 will be concentration on strengthening g g the i
Slide 32: Strategy 2010 and beyond
Leading Banking Franchise Stronger Financial Footing St th i Regional Strengthening R i l Presence P Strategy 2010 and beyond 32
Slide 33: Strategy 2010 and beyond
Strategy 2010 and beyond Focus on 3 key y business p pillars: Community Financial Services Wholesale Banking Insurance & Takaful Supported by strong Enterprise Transformation Services, covering Operations and IT 33
Slide 34: Community Financial Services
Community Financial Services Bringing Maybank closer to the community, ‘Closer to You’. Our aspiration is to be a central part of a growing community, engaging them for a mutually sustainable future. Reposition customer value proposition around convenience and Repositoning serving the needs of the
Slide 35: Wholesale Banking
Enhance Wholesale Banking Credit & Innovative Product Realising R li i the th potential t ti l off our C Corporate, t B Business i , IInvestment t tBBanking ki and d Gl Global b lMMarkets k t aims i to become a truly wholesale bank. Relationship Become a trusted advisor and nurturing proactive rel
Slide 36: Insurance
Insurance Humanising Insurance and Takaful for our customers – making insurance accessible to all, ensuring care for the community. Transforming T f i ththe Lif Life A Agency fforce and dbbuilding ildi a T Top-3 3 agency player l iin M Malaysia. l i Strategy Strengthening the Bancassurance distr
Slide 37: Capital Management & DRP
Capital Management & DRP Proposed DRP process flow Capital Ratios and Dividend Policy Strong profit generation together with RM6bil Escrow rights issue in 2009 improved capital adequacy Account Step 5 Step 4 Cash to be paid to the ratios to : Maybank to transfer the respective Shareholders in fund
Slide 38: Other issues
Other issues Ready R d tto complyl by b nextt fi financial i l year. Adoption Ad ti subject bj t tto B Bank kNNegara FRS 139 approval. Impact expected to be positive Maybank has adopted: Foundation Internal Rating Base (FRIB) for credit risk Internal Model Approach pp ((IMA)) for market ri
Slide 39: Key Take Aways
Key Take Aways Maybank is strengthening its position as the leading banking f franchise hi ini Malaysia M l i in i line li with ith our transformation t f ti programme. Current capital position, strong profit generation capability and Dividend Reinvestment Plan will strengthen our capital positi
Slide 40: Thank You
Thank You MALAYAN BANKING BERHAD Khairussaleh Ramli Hazimi Kassim Raja Indra Putra Raja Ismail 14th Floor, Menara Maybank Chief Financial Officer Head, Strategy and Corporate Finance Head, Investor Relations 100 Jalan Tun Perak 100, (6)03-2074 Contact: (6)03 2074 4288 (6)03-2074 Contact: (6)03 2074
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