Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — 9M FY2021 Earnings Presentation

50 slides from Malayan Banking Bhd's earnings presentation, Nov 25, 2021

  1. Slide 1: Investor Presentation: Financial Results 3Q and 9M FY2021

    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 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  3. Slide 3: Maybank Group 9M FY2021 Overview

    Maybank Group 9M FY2021 Overview 1  Net operating income of RM19.15 billion, up 3.8% YoY, for 9M FY2021 from:  Net fund based income increase of 15.5% as NIM expanded 23 bps YoY on lower interest expense as Business Group CASA expanded 12.3%, led by growth in Malaysia and Singapore. Group loans gr

  4. Slide 4: Financing Support for Customers

    Financing Support for Customers % of Loans Under Repayment Assistance, Relief and R&R Programmes Malaysia • 30.4% of total CFS loans outstanding (o/s) Against Respective Total Home Market Loans % of Outstanding As at As at is under relief programmes: Loan Balance^ 13/8/21 12/11/21 o Deferred instalm

  5. Slide 5: Digital Solutions and Platforms

    Digital Solutions and Platforms • Introduced Maybank2u Biz App, a mobile-first app where users can seamlessly export and use their financial data to make better cash Key flow decisions and issue custom invoices to their clients directly from the app. launches • Unveiled Cambodia’s first mobile cross

  6. Slide 6: Sustainability Efforts Gaining Traction In-line with Our Commitments

    Sustainability Efforts Gaining Traction In-line with Our Commitments Update as at 30 September 2021 • Joint Lead Managers for the • The first bank in Malaysia to sign a Letter of Intent first Malaysian Development (LOI) to purchase Malaysia Renewable Energy Financial Institution (DFI) Certificates w

  7. Slide 7: Table of Contents

    Table of Contents Executive Summary 2 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  8. Slide 8: P&L Summary: 9M FY2021

    P&L Summary: 9M FY2021 PPOP rises 4.8% YoY as net fund based income grows on lower interest expense and moderate cost growth More 9M 9M 3Q 2Q 3Q details on RM million YoY QoQ YoY FY2021 FY2020 FY2021 FY2021 FY2020 s.24 Net fund based income * 14,220.4 12,313.0 15.5% 4,719.2 4,853.1 (2.8)% 4,128.3 14

  9. Slide 9: Net Fund Based Income: 9M FY2021 YoY Trends (1/2)

    Net Fund Based Income: 9M FY2021 YoY Trends (1/2) Home markets Malaysia and Singapore drive strong CASA growth and loans expansion for Group Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  +4.0%  +2.2%  +11.3%  (9.9)% 324.2 331.5 SGD billion 112.

  10. Slide 10: Net Fund Based Income: 9M FY2021 (2/2)

    Net Fund Based Income: 9M FY2021 (2/2) NIM expands 21 bps YTD (Ann.) on reduced deposit cost, but compresses 11bps QoQ on recognition of PEMULIH modification loss Net Interest Margin (%) QoQ (Ann.) Trend 5 Year Trend 2.31 2.37 2.26 2.05 2.15 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 2.36 2.33 2.31 2.27 2.1

  11. Slide 11: Net Fee Based Income: 9M FY2021 (YoY)

    Net Fee Based Income: 9M FY2021 (YoY) YoY decline on lower investment disposal gains and MTM losses, despite improvement in core fees 9M 9M RM million YoY FY2020 FY2021 Commission, service charges and fees 2,336 2,746  17.5% Investment & trading income 1,959 712  (63.6)% Unrealised gain/ (losses)

  12. Slide 12: Net Fee Based Income: 3Q FY2021 (QoQ)

    Net Fee Based Income: 3Q FY2021 (QoQ) QoQ fee income grew on MTM gains in financial liabilities 3Q 2Q 3Q RM million QoQ YoY FY2021 FY2021 FY2020 Commission, service charges and fees 822 898  (8.6)% 790  4.0% Investment & trading income 146 234  (37.5)% 711  (79.5)% Unrealised gain/ (losses) on f

  13. Slide 13: Overheads: 9M FY2021 (YoY)

    Overheads: 9M FY2021 (YoY) Well contained cost growth resulted in CIR of 44.7% and positive JAWs of 1.3% YoY 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2021 FY2020 FY2021 FY2021 FY2020 Personnel Costs 5,115.3 4,952.5 3.3% 1,682.8 1,709.8 (1.6)% 1,581.5 6.4% Establishment Costs 1,446.5 1,399.0 3.4% 472.

  14. Slide 14: Asset Quality (1/2)

    Asset Quality (1/2) Loan loss coverage climbs to 137.8% on provisioning top-ups for new and existing impaired loans, and additional overlays Allowances for losses on loans 9M FY2021 ECL includes: 137.8% • ~RM987 mil in management 122.2% 124.3% 115.9% overlay for loans under 106.8% repayment assistan

  15. Slide 15: Asset Quality (2/2)

    Asset Quality (2/2) Group GIL reduced QoQ to 1.93% on write-offs, repayments and recovery proceeds received Group Gross Impaired Loans (GIL) Ratio Composition GIL Ratio Components Sep 2021 Jun 2021 Mar 2021 Dec 2020 Sep 2020 Non Performing Loans (NPL) 1.63% 1.92% 1.98% 2.02% 1.93% Restructured & Res

  16. Slide 16: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets QoQ trends across segments largely stable, with uptick seen in some of Indonesia’s business segments Consumer Mortgage Auto Finance Credit Cards 3.56% 2.78% 3.03% 2.22% 3.11% 2.32% 7.16% 5.85% 5.98% 5.95% 1.54% 2.35% 5.46% 1.31% 1.09% 1.09% 1.97% 1.8

  17. Slide 17: Strong Liquidity & Capital Positions: September 2021

    Strong Liquidity & Capital Positions: 30 September 2021 LCR healthy at 138.1%, while Group CET1 capital ratio at 14.24% (assuming 85% reinvestment rate) After proposed dividend, Liquidity Risk Indicators Before proposed dividend assuming 85% reinvestment rate LCR LDR LTF LTFE 18.68% 18.66% 18.21% 14

  18. Slide 18: Table of Contents

    Table of Contents Executive Summary 2 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  19. Slide 19: Market Outlook

    Market Outlook 2021 industry outlook for our home markets Key Indicators Outlook • GDP: 3.8% (2021F) vs -5.6% (2020) • Growth is expected to improve as the economy opens up • System loan: 3.8% (2021F) vs 3.4% (2020) and mobility is restored, with prospects of pent up demand/spending in 4Q2021. • OPR

  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: M25 Targeted Outcomes

    M25 Targeted Outcomes Aspirational Long-Term Outcomes 9M FY2021 FY2021 Annual M25 Financial Achievements Guidance Targets: 9.8% ~9% 13-15% Return on equity Return on equity Return on equity 44.7% 45-46% ≤45% Cost to income ratio Cost to income ratio Cost to income ratio 52.3 sen >100 sen Earnings pe

  22. Slide 22: Table of Contents

    Table of Contents Executive Summary 2 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  23. Slide 23: International & Malaysia Portfolio Mix 9M FY2021

    International & Malaysia Portfolio Mix 9M FY2021 Net Operating Income Profit Before Tax Gross Loans * 9M FY2021 (Jan 21 – Sep 21) 2.4% Overseas: 5.8% Overseas: Overseas: 15.6% 8.0% 32.0% 10.3% 18.0% 38.8% 5.5% 15.9% RM19.15 RM8.17 RM542.8 billion billion # 25.3% billion 68.0% 61.2% 82.0% Malaysia Si

  24. Slide 24: Segmental Performance of Businesses: 9M FY2021 (1/2)

    Segmental Performance of Businesses: 9M FY2021 (1/2) Net Operating Income 9M FY2020  +3.8% Group Global Banking  (5.2)% 9M FY2021 9M FY2020: 7,775 9M FY2021: 7,367 18,451 19,149  +8.6%  (7.2)%  +5.9%  +14.9%  +4.1% RM million 9,594 10,420 6,659 6,178 1,031 1,092 1,328 1,383 85 98 Total Group

  25. Slide 25: Segmental Performance of Businesses: 9M FY2021 (2/2)

    Segmental Performance of Businesses: 9M FY2021 (2/2) Net Fund Based Income 9M FY2020  +15.5% Group Global Banking  +6.2% 9M FY2021 9M FY2020: 4,216 9M FY2021: 4,477 14,220 12,313  +9.0%  +5.4%  +24.6%  (4.1)%  +7.5% 8,046 RM million 7,379 4,035 4,253 179 942 1,013 223 2 2 Total Group Communit

  26. Slide 26: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million 9M FY2021 9M FY2020 YoY 3Q FY2021 2Q FY2021 QoQ 3Q FY2020 YoY Net interest income 1,013.2 942.3 7.5% 357.5 337.7 5.8% 310.8 15.0% Net earned premiums 6,679.2 6,676.1 0.0% 1,983.4 2,166.5 (8.5)% 2,990.3 (33.7)% Other operating income (517

  27. Slide 27: Group Gross Loans Growth: September 2021

    Group Gross Loans Growth: 30 September 2021 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2021 2021 2021 2020 Ann. 2020 Group Gross Loans 542.8 541.5  0.2% 534.4 523.7  4.8% 521.8  4.0% Malaysia (RM billion) 61% 331.5 330.9  0.2% 329.8 326.7  1.9% 324.2  2.2% Community Financia

  28. Slide 28: Malaysia Loans Growth: September 2021

    Malaysia Loans Growth: 30 September 2021 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep RM billion QoQ YoY Portfolio 2021 2021 2021 2020 Ann. 2020 Community Financial Services (reported) 76% 252.3 250.4  0.8% 248.8 247.0  2.9% 243.2  3.8% Community Financial Services (rebased)¹ 76% 252.3 250.4  0.8

  29. Slide 29: Group Deposits Growth: September 2021

    Group Deposits Growth: 30 September 2021 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2021 2021 2021 2020 Ann. 2020 Group Gross Deposits 609.6 605.0  0.8% 599.6 580.2  6.8% 593.2  2.8% Malaysia (RM billion) 63% 382.7 372.2  2.8% 370.3 355.7  10.1% 367.8  4.1% Savings Deposits

  30. Slide 30: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 90.1% 89.0% 89.3% 87.8% 88.9% 88.7% 92.5% 89.7% 89.7% 87.4% 42.1% 46.0% 44.5% 45.4% 42.8% 42.7% 50.2% 42.0% 47.1% 46.8% 49.0% 49.3% 41.1% 39.1% 39.6% 42.3% 41.7% 43.6% 44.8% 44.0% Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Sep 20 Dec 20 Mar 21 Jun

  31. Slide 31: 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% HKD, 6% SGD, CNH, 6% 542.8 Equity, 11% JPY, 7% 521.8 523.7 IDR, 5% 11% 423.3 THB, 4% Borrowings, 5%

  32. Slide 32: Specific Loan Exposure as at September 2021

    Specific Loan Exposure as at 30 September 2021 Oil & Gas Exposures for Non-Retail Borrowers Real Estate Exposure to Non-Retail Malaysian Borrowers Maybank Group Malaysia Singapore Indonesia Others 2.63% 1.68% 0.73% 0.04% 0.18% High Rise Others, 35.1% Residential, Special 28.6% Borrowers’ Normal Watc

  33. Slide 33: Key Operating Ratios

    Key Operating Ratios % 9M FY2021 9M FY2020 YoY 3Q FY2021 2Q FY2021 QoQ 3Q FY2020 YoY Return on Equity 4 9.8 8.2 1.6% 8.2 9.4 (1.2)% 9.7 (1.5)% Net Interest Margin 4 (bps) 2.31 2.08 23 bps 2.26 2.37 (11) bps 2.05 21 bps Fee to Income Ratio 25.7 33.3 (7.6)% 23.3 21.4 1.9% 32.1 (8.8)% Loans-to-Deposit

  34. Slide 34: Table of Contents

    Table of Contents Executive Summary 2 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  35. Slide 35: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Market share Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Loans Total consumer (Household) 18.1% 18.1% 18.2% 18.2% 18.1% Auto (Hire Purchase + Block Discounting + Floor Stocking) 30.4% 30.4% 30.4% 30.3% 30.4% Total mortgage * 14.4% 14.5% 14.6

  36. Slide 36: 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 3.8% YoY and 0.8% QoQ Total Financial Assets grew 6.0% YoY to RM388.7 billion contributed by investments growth of 30.6%  +3.8% YoY  +2.9%

  37. Slide 37: Table of Contents

    Table of Contents Executive Summary 2 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  38. Slide 38: 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 2.3% Group Securities Portfolio¹ grew 3.7% YoY YoY to RM78.9 billion RM billion  +3.7% YoY 48.2 217.5 222.0 Term Loan 48.4 (2.1)% YoY 214.1 215.2 209.0 7.4 8.0 9

  39. Slide 39: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 9M FY2021 Total Income Breakdown by Country 9M FY2021 Fee-based Income for Malaysia Underwriting& Hong Kong Others Placement Fees Arrangers' Fees 4% 6% Advisory Fees 8% 10% Phillipines 5% 1% Agency/ Malaysia Indonesia Guarantee Fees 39%

  40. Slide 40: Table of Contents

    Table of Contents Executive Summary 2 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  41. Slide 41: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 9M FY2021 9M FY2020 YoY 3Q FY2021 2Q FY2021 QoQ Net fund based income 468.30 429.63 9.0% 167.22 158.13 5.7% Net fee based income 196.28 290.31 (32.4)% 70.30 30.23 132.6% Net income 664.57 719.94 (7.7)% 237.52 188.35 26.1% Overhead expenses (346.77) (348.43)

  42. Slide 42: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Business deposits higher at 52.4% of total deposits % of 30-Sep 31-Dec YTD 30-Sep  (5.7)% YoY SGD Billion YoY Portfolio 2021 2020 Ann. 2020 52.5 49.5 51.6 Consumer - Time CFS 56% 24.2 22.6 9.4% 21.9 10.7% Deposit

  43. Slide 43: Table of Contents

    Table of Contents Executive Summary 2 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  44. Slide 44: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary IDR billion 9M FY2021 9M FY2020 YoY 3Q FY2021 2Q FY2021 QoQ Net Fund Based income 5,349 5,613 (4.7)% 1,890 1,711 10.5% Net Fee Based income 1,474 1,730 (14.8)% 522 498 4.8% Net income 6,823 7,343 (7.1)% 2,413 2,210 9.2% Overhead expenses (4,263) (4,417) (3.5)% (1,411)

  45. Slide 45: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown % of 30 Sep 30 Jun 30 Sep Key Operating Ratio Sep-21 Dec-20 Sep-20 YoY IDR Trillion QoQ YoY Portfolio 2021 2021 2020 Profitability & Efficiency CFS 66.0% 65.2 65.8 (0.8)% 73.7 (11.5)% Ret

  46. Slide 46: Table of Contents

    Table of Contents Executive Summary 2 3Q & 9M FY2021 Financial Performance 7 Prospects & Outlook 18 Appendix: 1. Financial Performance 22 2. Community Financial Services 34 3. Global Banking 37 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other Segments 46

  47. Slide 47: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM212.0 billion 9% Sep 20 RM million 9M FY2021 9M FY2020 YoY 65.2 Sep 21 59.7 6% Total Income 4,942.3 3,815.6 29.5% 4% 47.6 44.9 42.3 Profit Before Tax 3,094.0 1,865.0

  48. Slide 48: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 30.8% 30.8% 30.7% 30.7% 30.3% Key Products Sep 21 Sep 20 Automobile Financing 48.2% 48.6% 28.9% 27.4% 27.4% 27.4% Home 26.2% 26.9% 27.0% Sep 20 Dec 20 Mar 21 Jun 21 Sep 21 Term Financing 27.5% 28.0% Financi

  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  (15.0%) Regular Premium  15.9% 21.4% 19.3% 19.1% 19.6% Credit Premium  2.9% 13.1% 16.7% 17.9% 16.5% No. 4 in Life/Family (New Business) Group Premium

  50. Slide 50: 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 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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