Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — FY2015 Earnings Presentation
47 slides from Ammb Holdings Bhd's earnings presentation, May 22, 2015
Slide 1: FY2015 Results – Investor Presentation
22 May 2015 FY2015 Results – Investor Presentation Datuk Mohamed Azmi Bin Mahmood, Acting Group Managing Director Your Bank. Malaysia’s Bank. AmBank.™ Your Bank. Malaysia’s Bank. AmBank. FY2015 Results – Investor Presentation 1
Slide 2: Agenda
AGENDA 1. EXECUTIVE SUMMARY 2. FINANCIAL PERFORMANCE 3. ASSET QUALITY 4. FUNDING & CAPITAL 5. OUTLOOK & STRATEGIC PRIORITIES 6. DIVISIONAL PERFORMANCE 7. SUPPLEMENTARY INFORMATION - AMBANK GROUP - ECONOMY & INDUSTRY Your Bank. Malaysia’s Bank. AmBank. FY2015 Results – Investor Presentation 2
Slide 3: FY2015 performance highlights
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION FY2015 performance highlights FY2015 financial performance broadly inline with guidance PATMI up 7.6% yoy, ROE of 13.8% Sound asset quality and capital po
Slide 4: Key performance indicators
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Key performance indicators FY2015 FY2015 On Target Aspirations Performance PATMI (RM’mil) Circa 8% 1,918.6 (7.6% yoy) ROE (%) Circa 14% 13.8% ≈ ≤45%; 45.7%
Slide 5: Our FY2015–2017 strategic agenda remain unchanged
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Our FY2015 – 2017 strategic agenda remain unchanged Vision: As Malaysia’s preferred diversified, internationally connected financial solutions group, we take pr
Slide 6: FY2015–2017 strategic agenda: FY2015 progress round-up
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION FY2015 – 2017 strategic agenda: FY2015 progress round-up Focused growth Leverage investments Optimise enablers Retail Banking: Segment initiatives gaining
Slide 7: FY2015–2017 strategic agenda: FY2015 progress round-up (contd.)
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION FY2015 – 2017 strategic agenda: FY2015 progress round-up (contd.) Focused growth Leverage investments Optimise enablers Build scalable “customer service de
Slide 8: FY2015 Results – Mandy Simpson, Chief Financial Officer
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION 22 May 2015 FY2015 Results – Investor Presentation Mandy Simpson, Chief Financial Officer Your Bank. Malaysia’s Bank. AmBank.™ Your Bank. Malaysia’s Bank. AmBan
Slide 9: Key themes of FY2015 results
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Key themes of FY2015 results Net profit was up largely due to divestment gains, underlying impacted by portfolio repositioning and challenging market environm
Slide 10: Higher non-interest income and lower allowances underpinned results
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Higher non-interest income and lower allowances underpinned results Growth 11.7% 21.8% 0.4% 0.2% 0.5% >100% 6.4% 3.0% 9.3% 42.0 % 7.6% 1,9
Slide 11: QoQ balance sheet momentum picking up
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION QoQ balance sheet momentum picking up PATMI & ROE PATMI QoQ growth: 24.6% ROE QoQ growth: 3.3% CTI QoQ change: 2.1% PATMI (RM'mil) ROE 16.0% 15.1% 14.6% 15.1% 1
Slide 12: Underlying reflects repositioning of portfolio and volatile trading activity
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Underlying reflects repositioning of portfolio and volatile trading activity FY2015 FY2015 Q4 vs. Q3FY2015 (Reported) (Underlying) (Underlying) Yoy Yoy qoq grow
Slide 13: Non-II reflects gains from disposal of subsidiaries
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Non-II reflects gains from disposal of subsidiaries Non-interest income movement As % of total income 34% 41% Growth 20.3% 4.3% 5.3% 4.0% 8.2% 25.9%
Slide 14: Margins remained under pressure from portfolio rebalancing
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Margins remained under pressure from portfolio rebalancing NIM and COF (YOY) 4.00% 4.00% 4.00% 4.00% 4.00% SRR MFRS 10 3.13% OPR 2.98% 2.94% 4.00% 4.00% 3.10% 4
Slide 15: Expenses remain contained through continued emphasis on cost discipline
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Expenses remain contained through continued emphasis on cost discipline Expenses growth drivers Banking CTI AmGeneral COR* FY15 44.6% 91.2% FY14 43.5% 94.8% CTI
Slide 16: Retail Banking: Targeted growth, continue to build customer franchise
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Retail Banking: Targeted growth, continue to build customer franchise Key financials: Performance highlights: Cus Dep 5.8% Customer deposits driven by segme
Slide 17: Wholesale Banking: Re-prioritising coverage by segment & sector
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Wholesale Banking: Re-prioritising coverage by segment & sector Key financials: Performance highlights: AUM 9.3% Loans & deposits growth momentum picked up,
Slide 18: General Insurance: stronger investment income & improved claims
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION General Insurance: stronger investment income & improved claims Key financials: Performance highlights: 3.6% Higher profits underpinned by improved claims 9
Slide 19: Group's asset quality stable
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Group’s asset quality stable Asset quality indicators QoQ Gross Impaired Loans ratio AmBank Group (LLCoverage) AmBank Gp RB WB 10.4% 129.3% 127.4% # 131.5% MFRS
Slide 20: Loan movements reflect realignment of portfolios and segments
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Loan movements reflect realignment of portfolios and segments Gross Loan / Financing movement 10.9% 6.2% 15.3% 6.5% 18.0% 2.2% 79.2% 1.6% Re-ali
Slide 21: Targeted loans focus
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Targeted loans focus Mar-15 YoY AmBank Group Loans by purpose Mar’15 growth Composition Purchase of transport 23.8 -13.9% 27.2% Loans by Sector Mar-15 vehicles
Slide 22: Auto Finance: clear focus on de-risking portfolio
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Auto Finance: clear focus on de-risking portfolio Risk Grade (% of new business) Risk Grade % of New Business 9% 3% 0% Gradual expansion of new exposure to mo
Slide 23: Diversified funding profile, stable CASA composition
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Diversified funding profile, stable CASA composition Customer deposits driven by individuals & term Stable CASA composition funding YoY growth CAGR FY10-14: 17.
Slide 24: Capital within internal targeted range
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Capital within internal targeted range Capital adequacy ratio: Aggregated Banking Capital adequacy ratio (CAR): Legal Entities Entities -------------------- Af
Slide 25: Outlook
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Outlook Malaysia Banking Forecast 2015 GDP growth slower at 4.7% Monetary policy will remain prudent to support the reflecting economic growth and address f
Slide 26: Summary
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Summary FY2015 – 17 strategic agenda remains unchanged Focused Growth Leverage Investment Optimise Enablers 1 2 3 4 Leverage Deliver on strategic Continue
Slide 27: Divisional Performance
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION DIVISIONAL PERFORMANCE Your Bank. Malaysia’s Bank. AmBank. FY2015 Results – Investor Presentation 27
Slide 28: Retail Banking
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Retail Banking Aspirations Re-orient to higher value segments, extract value from core mass • PAT reflects margin compression and loans contraction in line with
Slide 29: Wholesale Banking
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Wholesale Banking Coverage: Maximising franchise value through holistic coverage & cross sell – full understanding of customer Aspirations needs, distinguishing
Slide 30: General Insurance
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION General Insurance Aspirations Together we help make Malaysia a safer place with great insurance solutions • Higher profits from investment income (gain on dispo
Slide 31: Islamic Banking
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Islamic Banking Aspirations To be the Islamic Bank of Choice • Strong double-digit financing and customer deposits growth. Financing driven by Wholesale Banking
Slide 32: Group Operating Segments
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Group Operating Segments • Income includes one-off divestment gain of AmLife and AmFamily businesses of RM462 mil and gain on disposal of AmFraser Securites Pte
Slide 33: Supplementary Information: AmBank Group
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION SUPPLEMENTARY INFORMATION AMBANK GROUP Your Bank. Malaysia’s Bank. AmBank. FY2015 Results – Investor Presentation 33
Slide 34: Diversifying funding sources and maturity profile
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Diversifying funding sources and maturity profile Funding diversity underpinned by Fixed deposits: RM73.4 billion LDR1 of 83.8% CASA: RM18.7 billion (strong ret
Slide 35: ANZ & AmBank Group Partnership
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION ANZ & AmBank Group Partnership Partnership with ANZ ANZ diversified footprints in Asia Value proposition • Seconding ANZ staff into key roles • Providing techni
Slide 36: AmGeneral: Leveraging strategic partnership with global insurance partner
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION AmGeneral: Leveraging strategic partnership with global insurance partner Partnership with IAG IAG diversified footprints in Asia Value proposition • Involved i
Slide 37: Multiple distribution channels aligned to demographics
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Multiple distribution channels aligned to demographics Nationwide Branch Network Branches ATM RBC Perlis 1 4 Perlis Kedah 5 28 Kedah Pulau Pinang 14 48 1 Kelant
Slide 38: Solid shareholding structure & franchise value
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Solid shareholding structure & franchise value As at 31 Mar 2015 23.8%1 AmCorp 13.0% EPF 15.1% Others 51.9% AMMB Holdings Berhad Life Assurance & Retail Banking
Slide 39: Banking sector share price movement / target price and recommendations
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Banking sector share price movement / target price and recommendations Banking Sector Share Price Movement Upgraded ratings Ratings FY2007 FY2015 HLBK 109.7% Am
Slide 40: Supplementary Information: Economy & Industry
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION SUPPLEMENTARY INFORMATION ECONOMY & INDUSTRY Your Bank. Malaysia’s Bank. AmBank. FY2015 Results – Investor Presentation 40
Slide 41: Malaysian economy is on a steady growth trajectory
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Malaysian economy is on a steady growth trajectory Upward pressure on inflation remains, Moderating growth unemployment rates stable 5% 30% 4% 25% 3% 2.8% 20% 2
Slide 42: Well-contained risks despite increase in household indebtedness
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Well-contained risks despite increase in household indebtedness Higher household debt, but retail impaired loans Gradual slowdown in the household debt growth r
Slide 43: Capital remains sound in the banking sector, loans growth moderating
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Capital remains sound in the banking sector, loans growth moderating Capital levels above BNM’s Basel 3 guidelines Capital activities supported by debt issuance
Slide 44: ETP: Propelling Malaysia towards becoming a high-income, developed nation by 2020
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION ETP: Propelling Malaysia towards becoming a high-income, developed nation by 2020 ETP Overview Achievement of 12 NKEAs in 2013 and 2014 2020 Target KPI Scoring*
Slide 45: Malaysia remains an attractive investment destination
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Malaysia remains an attractive investment destination GDP per capita, 2014 (USD) Real GDP growth Unemployment (%) Inflation (%) 2014 2015F Philippines 7.1% Indo
Slide 46: Glossary / Disclaimer of warranty and limitation of liability
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY Glossary / Disclaimer of warranty and limitation of liability SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION Reported Performance Reported performance refers to the financial performance as reported in the a
Slide 47: Disclaimer and investor relations contact
EXECUTIVE FINANCIAL FUNDING & OUTLOOK & DIVISIONAL SUPPLEMENTARY ASSET QUALITY Glossary / Disclaimer of warranty and limitation of liability SUMMARY PERFORMANCE CAPITAL STRATEGY PERFORMANCE INFORMATION The material in this presentation is general background information about AmBank Group’s activitie