Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — FY2022 Earnings Presentation
47 slides from Ammb Holdings Bhd's earnings presentation, May 31, 2022
Slide 1: FY2022 Results Investor Presentation
FY2022 RESULTS INVESTOR PRESENTATION 31 MAY 2022
Slide 2: GCEO Presentation
GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 FY22 Financial snapshot 4 Repayment assistance 6 Loans by stages 7 Outlook for 2022 8 Focus 8 9 Digitalisation 10 ESG
Slide 3: FY22 Financial snapshot
Financial Snapshot FY22 Financial snapshot FY22 Financials Variance Core earnings improved significantly 4,665 Income 2% • Consistent income growth FY21: 4,552 2,094 Expenses (2%) • Disciplined cost management FY21: 2,132 2,571 PBP 6% • Positive JAWS of 4%; CTI of 44.9% (FY21: 46.8%) FY21: 2,4
Slide 4: Repayment assistance overview
Repayment Assistance Repayment assistance overview Repayment assistance by type of borrowers1 (RM’ bil) SME: Repayment assistance by MIA status Retail SME Corporate MIA 2 MIA ≥3 MIA 1 0.11 bil 0.03 bil 32% of total 0.13 bil 5% 2% gross loans 30% of total 6% gross loans 36.5 33.7 4.3 2.6 2 Total 18%
Slide 5: PHRA1 - Expiry and Rollover
Repayment Assistance PHRA1 - Expiry and Rollover Total re-enrolment as of Retail (RM’ bil) Retail SME (RSME) (RM’ bil) 13 May 2022 (a) + (b) : Re-enrollment Re-enrollment RM1.88 bil 20.4 2.4 1.5 0.4 8.2 1.1 1.6 6.6 0.5 2 2.8 0.3 1.6 1.2 0.2 12 Nov 21 18 Feb 22 13 May 22 12 Nov 21 5 Feb 22 13 May 22
Slide 6: Loans by stages
Loans Loans by stages Loans by ECL Stages (RM’ bil)1 Breakdown by Business Segments (%) Stage 1 Stage 2 Stage 3 Stage 1 BNM 6-month blanket loan Targeted Repayment PEMULIH moratorium Assistance WB 106.9 110.1 110.7 112.7 113.5 113.4 117.1 120.0 86% 2% 2% 2% 2% 2% 1% 1% 1% BB 86% 12% 12% 13% 13% 13%
Slide 7: Outlook for 2022 - Malaysia banking sector
Market Outlook Outlook for 2022 GDP Growth Export growth 5.6% to 6.0% 8.0% to 10.0% MALAYSIA Inflation USD/MYR outlook 2.8% to 3.0% 4.20 to 4.25 Loans growth OPR 4.0% to 5.0% 2.25% to 2.50% (1 or 2 rate hikes; +25bps each during H2CY22) BANKING SECTOR Asset Quality Liquidity & capital positions Stab
Slide 8: Focus 8: Key initiatives and progress
Focus 8 Strategy Focus 8: Key initiatives and progress AmBank Digital The path to ROE of 10% • AmOnline / Tabung Haji transaction services feature • FY22 ROE = 9.3%; ROTE 9.8% • Online FX feature for SME via AmAccessBiz • Business Efficiency Transformation (BET • eFX for branches & Pareto) Programme
Slide 9: Progress on digitalisation
Digital Progress on digitalisation Digital Platform 68 Open APIs launched & Strategic partnerships 21 Work-In-Progress AmOnline Proxy Accounts • 1.4 mil users • Trust Accounts RETAIL • Avg monthly online transactions 87 mil (1.1x) • CASA hosting • % of AmOnline transactions 83% (FY21: 82%) Axiata, U
Slide 10: ESG – Key Highlights
ESG ESG – Key Highlights Strategy • Board and Group Sustainability Council • Sustainability is part of AmBank Group’s • Sustainability related KPIs strategic imperatives Business • Launched 3 ESG Funds • New opportunities as economy pivots towards low carbon (Positive Change, Climate Tech, Nutrition
Slide 11: GCFO Presentation - Financial Overview
GCFO PRESENTATION Jamie Ling 12 - 27 Financial Overview
Slide 12: Q4FY22 Financial overview
Financial Overview Q4FY22 Financial overview 1 Capital, Liquidity and Funding • Adequate loss absorption capacity • Resumed dividends, 5.0 sen per share, dividend payout ratio of 11% • After proposed dividends, CET1 at 12.20%; without Transitional Arrangements, CET1 at 11.65% • Highly liquid (FHC LC
Slide 13: FY22 Performance summary – P&L
Financial Overview FY22 Performance summary – P&L P&L (RM’ mil) Q3FY22 Q4FY22 QoQ Change FY21 FY22 YoY Change Total Income 1,183 1,123 (5%) 4,552 4,665 2% Expenses 529 557 5% 2,132 2,094 (2%) PBP 654 566 (14%) 2,420 2,571 6% Net Impairment 337 51 (85%) 1,137 766 (33%) - Of which, all
Slide 14: FY22 Performance summary – balance sheet
Financial Overview FY22 Performance summary – balance sheet Balance Sheet Q3FY22 Q4FY22 QoQ Change FY21 FY22 YTD Change (RM’ bil) Gross Loans1 117.1 120.0 2% 112.7 120.0 6% GIL1 1.37% 1.40% ≈ 1.57% 1.40% (0.2%) LLC1,2 146.1% 139.2% (6.9%) 124.1% 139.2% 15.1% Customer Deposits 124.7 122.6
Slide 15: Consistent income growth
Income Consistent income growth Business Segments Q3FY22 Q4FY22 QoQ Change FY21 FY22 YoY Change (RM’ mil) Wholesale Banking 345 304 (12%) 1,393 1,286 (8%) Investment Banking 88 81 (8%) 339 361 6% Retail Banking 426 409 (4%) 1,598 1,673 5% Business Banking 144 147 2% 506 558 10% Group
Slide 16: Positive JAWS, Profit Before Provision up 6%
PBP & PATMI Positive JAWS, Profit Before Provision up 6% (Banking +10%) Business Segments Q3FY22 Q4FY22 QoQ Change FY21 FY22 YoY Change (RM’ mil) Wholesale Banking 281 239 (15%) 1,124 1,032 (8%) Investment Banking 44 34 (23%) 163 185 13% Retail Banking 209 198 (5%) 733 833 14% Business B
Slide 17: P&L walk
Group P&L P&L walk NIM NoII % CTI Effective Tax Rate FY22 2.05% 29.8% 44.9% 11.5% FY21 1.90% 35.5% 46.8% -6.5% YoY 8% (14%) >100% 2% (1%) 5% (33%) 38% (8%) 48% (19%) 56% Growth 371 19 22 4,788 242 17 97 227 1,503 (3,826) One-off Net Interest Non-Interest Net mod Total RM’ mil
Slide 18: Margin improvement driven by lower cost of funds
NIM Margin improvement driven by lower cost of funds QoQ NIM Net Interest Margin (NIM) Movement (YoY) Q4FY22: Reported: 2.00% ( (9bps)) Underlying: 1.94% ( (2bps)) Q3FY22: Reported: 2.09% Divisions Funding + Deposits Underlying: 1.96% Reported: bps 15bps Underlying: 8.9 4.7 9bps 3.5 2.1 2.9 0.
Slide 19: Lower investment and trading income with increased risk aversion
NoII Lower investment and trading income with increased risk aversion YoY Growth 29% (62%) 4% (16%) 6% (4%) (16%) (9%) >100% (14%) 29 Q1FY22: 419.7 11 9 Q2FY22: 321.4 Q3FY22: 337.7 177 22 4 Q4FY22: 311.0 1,617 12 80 4 1,390 Corporate & Group Investment Group Wealth Business Gener
Slide 20: Disciplined cost management, CTI 44.9%
Expenses Disciplined cost management, CTI 44.9% Business Segments Q3FY22 Q4FY22 QoQ Change FY21 FY22 YoY Change (RM’ mil) Wholesale Banking 64 65 1% 268 254 (5%) Investment Banking 44 47 8% 176 176 ≈ Retail Banking 217 212 (3%) 865 840 (3%) Business Banking 38 45 19% 152 153 1% Group F
Slide 21: Broad-based loans growth
Loans Broad-based loans growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: ROA1: RoTA1: Fixed rate – 20% Islamic – 33% Retail – 55% 0.94% 0.95% Variable rate –80% Conventional – 67% Non-retail – 45% YTD Growth 11% 4% 1% 8%
Slide 22: Additional O&G provisions offset against overlay
Asset Quality Additional O&G provisions offset against overlay Overlays: Net Impairment (YoY Movement) Q1FY22: 87.2 Gross Impaired Loans, GIL and LLC Ratios Q2FY22: 67.6 Retail Wholesale Loan Loss Coverage2 Q3FY22: 44.9 Business GIL Ratio 1 1 RM’ mil Q4FY22: (551.5) 114.0% 124.1% 139.2% 100.5% 93.4%
Slide 23: Vigilant monitoring of sector exposure
Asset Quality Vigilant monitoring of sector exposure Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’21 Mar’22 Loans outstanding Bonds & Loans outstanding Sector Composition YTD Change RM’ mil RM’ mil 9% Agricultu
Slide 24: Improved CASA mix 35.2% (FY21: 29.7%)
Deposits Improved CASA mix 35.2% (FY21: 29.7%) Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry FY22 122.6 2% 6%1 FY22 43.1 21% 6%1 FY21 120.5 7% 6%2 FY21 35.8 24% 21%2 FY20 113.0 6% 2%2 FY20 28.
Slide 25: Adequate capital
Capital Adequate capital RWA/Total Assets FHC Capital Adequacy Ratios3 RM’ bil Total Assets RWA/Total Assets 1 Peers 2 CET 1 / Tier 1 Total CAR 72.2% 65.0% 64.4% 66.7% 67.4% 15.43% 15.80% 15.32% 15.18% 14.48% 59.3% 58.4% 58.5% 58.1% 56.8% 13.65% 14.14% 11.89% 12.44% 11.65% 11.33% 12.20% 158.8 169.2
Slide 26: FY22 Summary
Summary FY22 Summary Improving operating Operating leverage environment • Loans growth momentum • Maintained cost discipline • Expect market volatility • Making investments Credit profile Firmer foundation • Mora loans significantly lower • Resumed dividends • Higher provision coverage for O&G • Div
Slide 27: Thank You
THANK YOU
Slide 28: Yearly performance
FY22 Results Yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) (LATMI) / PATMI ROE (%) PATMI: ROE: Total Income: Total Income Non-interest Income % YoY Growth >100% YoY Growth 29.5% CAGR FY18-FY22: 4.1% 8.8% YoY Growth 2.5% 7.0% 7.4% 9.3
Slide 29: Non-interest income and PATMI mix
NoII & PATMI / (LATMI) Non-interest income and PATMI mix Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY) >100% 29% Others 1% Corporate and Transaction Banking 9% (62%) >100% >100% Group Group Treasury (38%) & Market Funding Others 8% & Others (15%) 1% 26
Slide 30: Impairments
Asset Quality Impairments Net Impairment / (Writebacks) and GIL Ratio Total impairments by category (RM’ mil) Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 QoQ Change FY21 FY22 YoY Change ECL Stage 1 & 2 / CP – Non defaulted 31 121 454 310 122 124 (56) (561) (>100%) 916 (371) (>100%) E
Slide 31: Loans by sector vs industry
Loans Loans by sector vs industry AmBank Group (RM’ bil) Loans Composition 2% 2% 13% 1% 4% 9% 4% 5% 5% 1% 54% ≈ 100% YTD Growth (7%) (10%) 9% (3%) (8%) 18% 40% 18% (11%) 38% 6% (3%) 6% Mar'22 120.0 65.1 15.9 4.4 10.5 5.5 6.6 2.4 2.1 1.2 4.8 1.4 0.0 Wholesale, Finance, Minin
Slide 32: Divisional Performance
Divisional Performance
Slide 33: Wholesale Banking
Wholesale Banking Wholesale Banking QoQ Growth: (>100%) Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) YoY Growth: (94%) FY21: 666 FY22: 37 Total Income (8%) RM1,286 mil 248 200 125 143 127 4% 93 22 Transaction Banking Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22
Slide 34: Wholesale Banking
Wholesale Banking Wholesale Banking Income Statement YoY Growth 4% (38%) (8%) (5%) (8%) >100% (98%) (>100%) (94%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY22 1,047 239 1,286 254 1,032 1,013 19 (18) 37 FY21 1,006 386 1,393 26
Slide 35: 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 March 2022 4.1% DCM (Overall MYR Bonds) 15.9% 3 3.6% 3.6% 3.4% 3.2% 3.2% Islamic Sukuk 14.4% 3 5.0% 4.9% 4.8% 4.3% 4.5% 4.0% Unit Tr
Slide 36: Investment Banking
Investment Banking Investment Banking Income Statement YoY Growth 24% 4% 6% ≈ 13% (>100%) 17% 20% 17% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY22 58 303 361 176 185 (11) 196 42 154 FY21 47 292 339 176 163 (4) 167 35 132 FY22 P
Slide 37: Retail Banking
Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business (LAT) / PAT Trend (RM’ mil) QoQ Growth: (27%) Total Income YoY Growth: >100% 5% RM1,673 mil 14% 17% (8%) Others 3% Auto Retail SME 10% 12% (15%) FY21: 151 FY22: 515 COOP & Wealth ASB 7% Financing Re
Slide 38: Cards in circulation
Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth: (32%) YoY Growth: (21%) Merchant volume (RM'mil) QoQ Growth: ≈ YoY Growth: 25% Merchants in force ('000) QoQ Growth: 1% YoY Growth: 1% 35 35 35 35 35 35 35 35 FY21: 5,999 FY22: 4,741 FY21: 8,940 FY22: 11,146 1
Slide 39: Retail Banking
Retail Banking Retail Banking Income Statement YoY Growth 7% (5%) 5% (3%) 14% (70%) >100% >100% >100% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY22 1,417 256 1,673 840 833 158 676 161 515 FY21 1,328 270 1,598 865 733 534 199 48
Slide 40: Business Banking
Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) YTD Growth: 8% QoQ Growth: 21% YoY Growth: 23% Non-trade Trade 18,736 18,070 17,278 17,329 17,374 16,497 16,626 15,867 4,945 5,172 4,231 4,725 4,676 4,675 4,191 4,257 FY21: 225 FY22: 278 12,395 12,553 12,653 12,699 13,
Slide 41: Business Banking
Business Banking Business Banking Income Statement YoY Growth 15% (4%) 10% 1% 14% (27%) 23% 22% 23% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY22 443 116 558 153 405 44 361 83 278 FY21 386 120 507 152 355 61 293 68 225 FY22 PA
Slide 42: Islamic Banking
Islamic Banking Islamic Banking Income Statement YoY Growth 11% (4%) 19% 1% 89% >100% 47% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ FY22 1,032 285 747 507 240 52 188 FY21 927 297 630 503 127 (1) 128 FY22 PATZ FY21 PATZ Positive growth in FY22 Contraction in FY22
Slide 43: General Insurance
General Insurance General Insurance Loss Ratio and Combined Ratio PBT and PAT (RM’ mil) Loss Ratio Combined Ratio 92% 92% 93% 90% 89% YoY PBT Growth: (18%) YoY PAT Growth: (19%) PBT PAT 282 57% 58% 60% 56% 55% 260 262 242 FY18 FY19 FY20 FY21 FY22 214 Gross Premium Mix and Growth (RM’ mil) YoY GW
Slide 44: Insurance and Group Funding & Others
Insurance & Others Insurance and Group Funding & Others Income Statement – Insurance (General, Life & Takaful) YoY Growth (13%) (10%) (17%) 35% (17%) (9%) (18%) RM'mil Total Income Expenses PBP Impairment PBT Tax PAT FY22 571 319 252 (2) 253 26 227 FY21 660 357 303 (3) 305 29 276 Incom
Slide 45: Shareholding structure
Corporate Structure Shareholding structure 21.6%1 AmCorp 11.8% EPF 9.6% PNB 8.8%2 Others 48.2% Based on ROD dated 31 March 2022 AMMB Holdings Berhad Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful 100% AMAB Holdings Sdn Bhd 100% AmBank (M) Berhad 51% AmGen
Slide 46: Credit ratings, target price and recommendations
Ratings & Target Price Credit ratings, target price and recommendations Credit Ratings FY22 Ratings AMMB AmBank (M) AmBank Islamic AmInvestment RAM LT: AA3, ST: P1 LT: AA3, ST: P1 LT: AA3, ST: P1 LT: AA3, ST: P1 Outlook: Stable Outlook: Stable Outlook: Stable Outlook: Stable S&P LT: BBB+, ST: A-2 Ou
Slide 47: 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 Q4FY22 vs Q3FY22 YoY /