Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — Nomura Investment Forum Asia (NIFA) 2024

35 slides from Malayan Banking Bhd's conference presentation, Jun 6, 2024

  1. Slide 1: Investor Presentation - Nomura Investment Forum Asia 2024

    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 Maybank Investment Case Highlights 2 M25+ Corporate Strategy Updates 3–7 Sustainability Update 8 Financial Performance 10 – 18 Appendix: Supporting 1Q FY2024 Financial Performance Updates 20 - 33

  3. Slide 3: Maybank Investment Case Highlights

    Maybank Investment Case Highlights A Truly Global Leadership Sustainability Leader Leading Superior dividend Regional Bank In Islamic Banking In ASEAN Digital Bank payouts and yields Strong regional footprint 5th Largest Islamic Bank One of the first ASEAN Preferred digital bank in Strong track reco

  4. Slide 4: M25+: Propelling Us From Good to Great

    M25+: Propelling Us From Good to Great Our Purpose: We are a values-driven platform, powered by a bionic workforce that Humanises Financial Services Group Strategic Thrusts ST1 Intensify Customer-centricity ST2 Accelerate Digitalisation and Technology Modernisation ST3 Strengthen Maybank’s Position

  5. Slide 5: 1Q FY2024: M25+ Progress Across All Customer Segments

    1Q FY2024: M25+ Continues To Make Good Progress Across All Customer Segments Progress (1Q’23 vs 1Q’24): SP1 Focus Area: MY mid-market growth Supercharge Global Growth in total deals pipeline since May’23 with a dedicated team Total M25+ Committed • Higher revenue for ~300% focused on mid market segm

  6. Slide 6: 1Q FY2024: M25+ Progress Across All Customer Segments

    1Q FY2024: M25+ Continues To Make Good Progress Across All Customer Segments Focus Area: Progress (Mar’23 vs Mar’24): SP5 & SP7 • Stronger traction from Islamic wealth beyond +77% GIWM fee income growth from RM36.16 mil to RM64.11 mil Build Global banking propositions (Shariah wealth advisory, Islam

  7. Slide 7: 1Q FY2024: M25+ Progress Across All Sectors In Our Home Markets

    1Q FY2024: M25+ Continues To Make Good Progress Across All Sectors In Our Home Markets Focus Area: Progress (as at Mar’24): • Expand homeownership Increase in loans originated via Home2u (YTD Mar’23: RM2.9 bil vs YTD Mar’24: RM8.6 ecosystem by embedding Home2u >100% bil) Mortgage platform into partn

  8. Slide 8: FY2024: Focused Growth with Strategic Cost Prioritisation

    FY2024: Focused Growth with Strategic Cost Prioritisation and Diligent Asset Quality Management to Meet M25+ Targets Key Areas to Drive Income Growth Our Targets Wealth Management including Group CFS Non-Retail, focusing on Islamic Wealth across home markets Small and Medium Enterprises (SMEs) Finan

  9. Slide 9: Set to Exceed FY2025 Sustainability Commitment Targets

    Set to Exceed FY2025 Sustainability Commitment Targets This Year While Demonstrating Leadership in Regional Decarbonisation Journey Advancing Our Commitments Sustainable Finance 1Q’24 Achievement: RM5.86 bil Released transition pathway Launched Financed Emissions First Malaysian bank to FY2024 Targe

  10. Slide 10: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2 M25+ Corporate Strategy Updates 3–6 Sustainability Update 8 Financial Performance 10 – 18 Appendix: Supporting 1Q FY2024 Financial Performance Updates 20 - 33

  11. Slide 11: Strong Financial Performance in 1Q FY2024

    Strong Financial Performance in 1Q FY2024 Profitability Indicators Liquidity Indicators 2024 Guidance Return 10.9% 9.8% 9.6% 10.8% 10.8% 8.1% 11% Liquidity 141.0% 142.0% 136.4% 145.4% 142.1% 127.2% on equity Coverage Ratio Fee to 32.8% 36.1% 29.2% 25.0% 22.0% 29.5% Loan to 92.4% 90.1% 89.5% 91.6% 91

  12. Slide 12: Improving Asset Quality Trends on Strong Loan Loss Coverage; Resilient Capital Positions

    Improving Asset Quality Trends on Strong Loan Loss Coverage; Resilient Capital Positions Asset Quality Indicators Capital Ratios & Dividend Payout Post Dividend (Group level) 131.2% 124.9% 127.3% Loan Loss 106.3% 111.9% 77.3% CET 1 14.58% 14.73% 15.40% 14.78% 15.34% 14.87% Coverage Capital Ratio Loa

  13. Slide 13: Net Fund Based Income Improved; Strong Group Loans Growth of 11.2%

    Net Fund Based Income Improved to RM4.84 billion from RM4.80 billion; Strong Group Loans Growth of 11.2% NIM and Net Fund Based Income Key Drivers • Group loans grew 11.2% YoY led by: NIM o 13.6% in IDN 2.19% 2.06% (Ann.) 2.00% o 12.2% in SG Loans growth o 8.2% in MY o Segments across markets includ

  14. Slide 14: Higher NOII of RM2.74 billion Driven by Improved Core Fees

    Higher NOII of RM2.74 billion driven by Improved Core Fees and Better Investment & Trading Income Non-Interest Income Key Drivers • Core fees increased by 17.3% YoY, driven by higher wealth fee, cards and  29.6%  79.2% 1Q’24 vs 4Q’23 1Q’24 vs 1Q’23 advisory fees % change 1Q FY2024 (QoQ) 1Q FY2024

  15. Slide 15: Overall Group Insurance & Takaful PBT Rose 52.5%

    Overall Group Insurance & Takaful Profit Before Tax (PBT) Rose 52.5% Key Drivers Group Insurance & Takaful • 1QFY2024 PBT increased by 52.5% YoY, mainly driven by better underwriting income and higher investment income: PBT (RM billion)  52.5% o Underwriting income - Improved business growth from b

  16. Slide 16: Cost Increase on Higher Personnel, IT Expenses and Revenue-related Fees

    Cost Increase on Higher Personnel, IT Expenses and Revenue-related Fees CIR and Costs Key Drivers 51.9% 48.3% 48.3% • Cost increase of 19.8% YoY due to: o 21.3% increase in personnel costs and provisions for unionised  1.1%  19.8% staff 1Q’24 vs 4Q’23 1Q’24 vs 1Q’23 o 14.1% increase in establishme

  17. Slide 17: Healthy Liquidity Levels

    Healthy Liquidity Levels Liquidity Indicators Key Drivers LCR LDR NSFR Liquidity Position • Healthy Group liquidity ratios with optimal LCR level 145.8% 142.1% 127.2% 118.1% 122.0% 118.4% • Group deposits grew 8.9% YoY as: 91.7% 92.6% 90.7% o IDN grew 13.1% (FD:+18.6% and CASA: +8.0%) o SG grew 9.8%

  18. Slide 18: Improving Group GIL ratio; Management Overlay Maintained

    Improving Group GIL ratio; Management Overlay Maintained Loan ECL, NCC, and LLC Gross Impaired Loans (GIL) Mar 2023 Dec 2023 Mar 2024 P&L ECL  +0.8%  +29.9% (RM billion) 1Q’24 vs 4Q’23 1Q’24 vs 1Q’23 % RM billion % RM billion % RM billion Non Performing Loans 1.25% 7.39 1.00% 6.41 1.07% 7.01 (NPL)

  19. Slide 19: Robust Capital Positions

    Robust Capital Positions Capital Ratios Key Drivers After proposed dividend • Capital ratios remain robust with Group CET1 capital ratio at 14.87% and Group total capital ratio at 18.21%, well above regulatory 18.56% 18.21% requirements Group 16.00% 15.50% • Credit RWA growth of 10.3% YoY was below

  20. Slide 20: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2 M25+ Corporate Strategy Updates 3–6 Sustainability Update 8 Financial Performance 10 – 18 Appendix: Supporting 1Q FY2024 Financial Performance Updates 20 - 33

  21. Slide 21: P&L Summary: 1Q FY2024

    P&L Summary: 1Q FY2024 1Q 1Q 4Q RM million YoY QoQ FY2024 FY2023 FY2023 Net fund based income * 4,839.8 4,796.7 0.9% 4,865.3 (0.5)% Non-interest income * 2,737.5 1,527.6 79.2% 2,111.6 29.6% Net operating income 7,577.3 6,324.3 19.8% 6,976.9 8.6% Overhead expenses (3,657.5) (3,052.2) 19.8% (3,619.0)

  22. Slide 22: Segmental Performance of Businesses: 1Q FY2024 (1/2)

    Segmental Performance of Businesses: 1Q FY2024 (1/2) Net Operating Income Group Global Banking  +26.1% 1Q FY2023 1Q FY2024  +19.8% 1Q FY2023: 2,107 1Q FY2024: 2,657 7,577 6,324  +12.4%  +25.1%  +34.2%  +3.6%  +61.7% 4,415 3,929 RM million 2,237 1,788 294 395 263 426 24 25 Total Group Communit

  23. Slide 23: Segmental Performance of Businesses: 1Q FY2024 (2/2)

    Segmental Performance of Businesses: 1Q FY2024 (2/2) Net Fund Based Income 1Q FY2023 1Q FY2024 Group Global Banking  (1.9)% 1Q FY2023: 1,317 1Q FY2024: 1,292  +0.9%  +9.6%  (4.4)%  +5.0%  +38.8% RM million  +1.4% 4,797 4,840 3,065 3,358 1,239 1,185 431 77 106 1 1 411 Total Group Community Gro

  24. Slide 24: Group Non-Interest Income: 1Q FY2024

    Group Non-Interest Income: 1Q FY2024 1Q 1Q 4Q NOII (RM million) YoY QoQ FY2024 FY2023 FY2023 Commission, service charges and fees 1,086 926  17.3% 1,110  (2.1)% Commission 385 341  12.9% 358  7.3% Service charges and fees 544 432  25.9% 621  (12.3)% Underwriting fees 24 26  (8.8)% 11  >100%

  25. Slide 25: International & Malaysia Portfolio Mix 1Q FY2024

    International & Malaysia Portfolio Mix 1Q FY2024 Net Operating Income Profit Before Tax Gross Loans* 5.5% 1Q FY2024 6.0% 7.5% 0.9% (Jan 24 – Mar 24) 8.9% 5.7% 24.6% Overseas: RM7.58 Overseas: RM3.44 Overseas: RM657.8 34.2% 19.3% 40.2% 27.0% billion 31.0% billion billion 59.8% 65.8% 69.0% Malaysia Si

  26. Slide 26: Group Gross Loans Growth: March 2024

    Group Gross Loans Growth: 31 March 2024 % of 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Portfolio Group Gross Loans 657.8 640.8  2.7%  10.7% 591.7  11.2% Malaysia (RM billion) 60% 393.6 387.2  1.7%  6.6% 363.7  8.2% Community Financial Services 77% 303.8 298.3  1.8%  7.4% 279

  27. Slide 27: Malaysia Loans Growth: March 2024

    Malaysia Loans Growth: 31 March 2024 RM billion % of Portfolio 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Community Financial Services (reported) 77% 303.8 298.3  1.8%  7.4% 279.7  8.6% Community Financial Services (rebased) 77% 303.8 298.2  1.9%  7.4% 279.7  8.6% Consumer 61%

  28. Slide 28: Singapore Loans Growth: March 2024

    Singapore Loans Growth: 31 March 2024 SGD billion % of Portfolio 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Community Financial Services 51% 25.3 25.1  1.1%  4.4% 24.3  4.1% Consumer 36% 17.4 17.3  1.1%  4.3% 17.6  (0.8)% Housing Loan 25% 12.2 12.0  1.6%  6.5% 12.4  (0.9)% A

  29. Slide 29: Indonesia Loans Growth: March 2024

    Indonesia Loans Growth: 31 March 2024 (Based on MBI’s reporting) IDR trillion % of Portfolio 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Community Financial Services 62.0% 75.9 74.3  2.1%  8.5% 67.9  11.7% CFS Retail 35.9% 44.0 43.5  1.1%  4.5% 40.1  9.6% Auto Loan 19.3% 23.5 23

  30. Slide 30: Group Deposits Growth: March 2024

    Group Deposits Growth: 31 March 2024 % of Portfolio 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Group Gross Deposits 709.0 696.8  1.7%  7.0% 651.3  8.9% Total CASA 265.4 257.3  3.1%  12.5% 254.5  4.3% Total Fixed Deposits 328.0 321.0  2.2%  8.7% 303.4  8.1% Malaysia (RM billi

  31. Slide 31: LDR and CASA Ratio

    LDR and CASA Ratio Malaysia Group LDR CASA CASA (without IA) NSFR LCR 145.8% 140.7% 142.1% 137.4% 127.2% 91.7% 118.1% 117.6% 122.0% 89.9% 90.0% 89.3% 116.8% 87.6% 118.4% 92.3% 93.0% 91.7% 92.6% 90.7% 44.1% 43.8% 45.4% 39.1% 37.3% 42.7% 43.5% 37.7% 38.6% 36.9% 35.6% 34.2% 35.3% 33.7% 38.7% 38.3% 40.2

  32. Slide 32: RWA Optimisation and Funding Management

    RWA Optimisation and Funding Management Group Gross Loans & Group RWA Funding Breakdown Operational RWA Market RWA Credit RWA Gross Loans Borrowings and Capital 657.8 Instruments by Currency 640.8 FI Deposits, 6% 591.7 456.0* Equity, 10% 440.9* USD, 36% IDR, 5% 412.3 51.0 50.3 Repo, 4% SGD, 2% 47.2

  33. Slide 33: Asset Quality

    Asset Quality Allowances for losses on loans GIL Ratio Composition P&L ECL Mar Jun Sep Dec Mar 1Q FY2023 2Q FY2023 3Q FY2023 4Q FY2023 1Q FY2024 (RM million) 2023 2023 2023 2023 2024 Stage 1, net (87) (73) (66) 59 72 Non Performing Loans 1.25% 1.15% 1.06% 1.00% 1.07% (NPL) Stage 2, net 407 132 (68)

  34. Slide 34: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Consumer GIL Ratios Mortgage Auto Finance Credit Cards 1.02% 0.99% 0.92% 5.58% 5.41% 5.30% 0.88% 0.82% 5.05% 4.99% 1.49% 0.63% 1.32% 0.51% 1.22% 1.09% 1.14% 0.44% 0.47% 1.29% 0.52% 0.52% 0.58% 0.36% 1.24% 1.17% 0.51% 0.51% 1.02% 1.01% 0.64% 0.65% 0.5

  35. Slide 35: Malayan Banking Berhad

    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

Malayan Banking Berhad (Maybank) — Nomura Investment Forum Asia (NIFA) 2024 on 6ix