Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — Q1 FY2022 Earnings Presentation
46 slides from Ammb Holdings Bhd's earnings presentation, Aug 30, 2021
Slide 1: Q1FY2022 Results Investor Presentation
Q1FY2022 RESULTS INVESTOR PRESENTATION 30 AUGUST 2021
Slide 2: GCEO Presentation
GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 Q1FY22 Financial snapshot 4 Repayment assistance 6 Loans by stages 7 Outlook for 2021 8 Integrating ESG considerations into our business
Slide 3: Q1FY22 Financial snapshot
Financial Snapshot Q1FY22 Financial snapshot Q1FY22 Financials Good start to FY22, improvement in operating leverage driving PBP growth of 34% and PATMI growth of 6%. Annualised ROE 10% 1,238 Income 13% • Adjusted income up 5% YoY (excluding net modification impact) Q1FY21: 1,092 495 Expenses 8%
Slide 4: Repayment assistance overview
Repayment Assistance Repayment assistance overview Repayment assistance by type of borrowers SME: Repayment assistance by MIA status MIA 2 MIA ≥3 Retail SME Corporate MIA 1 0.20 bil 0.08 bil 32% of total 0.36 bil 2% 1% gross loans 3% 36.5 bil 4.3 bil Total 18% of total Assistance: 18% of total RM11.
Slide 5: Repayment assistance: Retail portfolio
Repayment Assistance Repayment assistance: Retail portfolio Mortgages Auto finance PH RA 15.0 bil PH RA 4.7 bil 0.7 bil 0.2 bil 3.9 bil 0.2 bil 9.0 bil 9.0 bil 1.3 bil 1.2 bil 2.2 bil 6.2 bil 14.4 bil 4.5 bil 0.3 bil 1.5 bil 3.7 bil 1.2 bil 7.7 bil 7.8 bil 0.4 bil 1.9 bil 4.6 bil 0.9 bil Dec'20 Mar'
Slide 6: Loans by stages
Loans Loans by stages Loans by ECL Stages (RM’ bil) Breakdown by Business Segments (%) Stage 1 Stage 2 Stage 3 Stage 1 Targeted BNM 6-month Repayment loan moratorium Assistance WB 107.4 110.6 111.9 114.8 115.6 85% 2% 2% 2% 2% 2% RB 85% 12% 12% BB 84% 13% 13% 13% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 St
Slide 7: Outlook for 2021
Market Outlook Outlook for 2021 GDP Growth Export growth 3.0% to 3.5% 15.0% to 16.0% MALAYSIA Inflation USD/MYR outlook 2.6% to 3.0% 4.15 to 4.18 Loans growth OPR 4.0% to 5.0% 1.75% BANKING SECTOR Asset Quality Liquidity & capital positions Weaker Resilient 7 Q1FY22 Results – Investor Presentation
Slide 8: Integrating ESG considerations into our business
Environmental, Social and Governance (ESG) Integrating ESG considerations into our business 1 Group Sustainability Framework MSCI ESG RATING 2 Group Sustainability Governance 2020 2018 2019 - Group Sustainability Council INSTITUTIONALISING - Group Sustainability Department BBB A AA SUSTAINABILITY -
Slide 9: GCFO Presentation: Financial Overview
GCFO PRESENTATION Jamie Ling 10 - 25 Financial Overview
Slide 10: Q1FY22 Financial overview
Financial Overview Q1FY22 Financial overview 1 Capital, Liquidity and Funding • CET1 at 12.3%, adequate loss absorption capacity. CET1 at 11.3% (without Transitional Arrangements) • Highly liquid (FHC LCR of 198.0%, LDR 101.3%) • NSFR for all banking entities above 100% 2 Q1FY22 Results (QoQ) • Inco
Slide 11: Q1FY22 Performance summary – P&L
Financial Overview Q1FY22 Performance summary – P&L P&L Q4FY21 Q1FY22 QoQ Change Q1FY21 YoY Change (RM’ mil) Total Income 1,129 1,238 10% 1,092 13% Expenses 525 495 6% 539 8% PBP 605 743 23% 554 34% Net Impairment 492 203 59% 50 >100% Exceptional items 4,767 - N/A - N/A (LATMI) / PAT
Slide 12: Q1FY22 Performance summary – balance sheet
Financial Overview Q1FY22 Performance summary – balance sheet Balance Sheet Q4FY21 Q1FY22 YTD Change Q1FY21 YoY Change (RM’ bil) Gross Loans 114.8 115.6 0.7% 107.4 7.6% GIL 1.54% 1.56% 2bps 1.66% 10bps LLC 135.6% 138.0% 240bps 97.0%1 4100bps Customer Deposits 120.5 114.1 5.3% 114.3
Slide 13: Additional items to highlight
Underlying Additional items to highlight P&L (RM’ mil) Q4FY21 Q1FY22 QoQ Change Q1FY21 YoY Change Income – Reported 1.129 1,238 10% 1,092 13% Net modification (loss)/ unwinding 56 33 (58) Income after adjusted items 1,073 1,205 12% 1,150 5% Expenses – Reported 525 495 6% 539 8% Legal and
Slide 14: Good income growth, driven by NII
Income Good income growth, driven by NII Business Segments Q4FY21 Q1FY22 QoQ Change Q1FY21 YoY Change (RM’ mil) Wholesale Banking 317 344 8% 407 16% Investment Banking 92 100 8% 73 36% Retail Banking 418 422 1% 342 23% Business Banking 113 113 80 41% Group Funding & Others 73 72
Slide 15: Improved operating leverage
PBP & PATMI Improved operating leverage Business Segments Q4FY21 Q1FY22 QoQ Change Q1FY21 YoY Change (RM’ mil) Wholesale Banking 249 278 12% 342 19% Investment Banking 48 59 22% 31 87% Retail Banking 192 218 13% 130 67% Business Banking 77 81 6% 47 74% Group Funding & Others (11) (6)
Slide 16: P&L walk
Group P&L P&L walk NIM NoII % CTI Effective Tax Rate Q1FY22 2.08% 33.9% 40.0% 21.6% Q1FY21 1.59% 43.8% 49.3% 20.1% YoY Growth 17% 12% >100% 13% 8% 34% >100% 7% 16% 5% 3% 6% 44 90 114 59 1 153 16 365 387 Net Interest Non-Interest Net mod Total Tax & RM’ mil Expenses PBP Impairm
Slide 17: Stable NIM
NIM Stable NIM Net Interest Margin (NIM) Movement (QoQ) YoY NIM Q1FY22: Reported: 2.08% ( 49bps) Underlying: 1.99% ( 25bps) Q1FY21: Reported: 1.59% Divisions Funding + Deposits Underlying: 1.74% bps Reported: Underlying: 4.1 6bps 2.3 1.7 8.6 208 1.6 0.8 208 15.0 0.7 0.2 0.2 199 193 Q4FY21 Net
Slide 18: Growth in fee based income offset by lower trading and investment gains
NoII Growth in fee based income offset by lower trading and investment gains YoY Growth 15% 60% 36% 49% 14% 33% 23% 20% >100% 12% 4 6 4 10 22 3 4 479 39 74 420 Corporate & Group Investment Group Wealth Business General Life RM’ mil Transaction Treasury Banking & Other Retail Fund
Slide 19: Disciplined cost management
Expenses Disciplined cost management Business Segments Q4FY21 Q1FY22 QoQ Change Q1FY21 YoY Change (RM’ mil) Wholesale Banking 68 66 3% 66 1% Investment Banking 43 41 7% 42 2% Retail Banking 226 204 10% 212 4% Business Banking 36 31 12% 33 6% Group Funding & Others 84 79 6% 66 19%
Slide 20: Modest loans growth
Loans Modest loans growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers type: ROA1: RoTA1: Fixed rate – 21% Islamic – 32% Retail – 54% 1.01% 1.02% Variable rate –79% Conventional – 68% Non-retail – 46% YTD Growth 1% 1% 2% 4%
Slide 21: Additional overlay in Q1FY22
Asset Quality Additional overlay in Q1FY22 Net Impairment (YoY Movement) Gross Impaired Loans, GIL and LLC Ratios RM’ mil Retail Wholesale Loan Loss Coverage 1 87.2 Business GIL Ratio 135.6% 138.0% 100.5% 114.0% 93.4% 1.70% 1.59% 1.73% 1.54% 1.56% 21.4 1.5 RM’ mil 1,853 10.2 203.2 1,770 1,808 29.2 1
Slide 22: Close watch on asset quality
Asset Quality Close watch on asset quality Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’21 Jun’21 Sector Composition QoQ Change 1% RM’ mil RM’ mil 16% RM’ bil Agriculture 80 78 4% 2% Q1FY22 2.6 Mining and qua
Slide 23: Driving retail deposits to diversify funding
Deposits Driving retail deposits to diversify funding Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry Q1FY22 114.1 5% ≈1 Q1FY22 34.1 5% 1%1 FY21 120.5 7% 6%2 FY21 35.8 24% 21%2 FY20 113.0 6% 2%2
Slide 24: Progressive strengthening of capital
Capital Progressive strengthening of 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% 66.7% 68.8% 65.0% 64.4% 15.4% 15.8% 15.3% 14.5% 13.6% 59.3% 58.4% 58.5% 58.1% 57.9% 11.9% 12.4% 12.3% 11.1% 11.3% 158.8 169.2 170.
Slide 25: Q1FY22 Summary
Summary Q1FY22 Summary Continue to Solid rebound in Q1 support customers Earnings drivers held up, reflecting Group’s strong Increase in loans under RA, franchise maintain credit vigilance Strengthening Improving CTI balance sheet Reinvest cost savings into automation and digitalisation Capital buil
Slide 26: Thank You
THANK YOU
Slide 27: Yearly performance
Q1FY22 Results Yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) PATMI: ROE: Total Income (LATMI) / PATMI ROE (%) Total Income Non-interest Income % YoY Growth 5.9% YoY Growth 2.3% CAGR FY18-FY21: 4.6% YoY Growth 13.3% 44% 10.0% 38% 34%
Slide 28: Non-interest income and (LATMI) / PATMI mix
NoII & PATMI / (LATMI) Non-interest income and (LATMI) / PATMI mix Non-interest Income by Lines of Business (YoY) (LATMI) / PATMI by Lines of Business (YoY) >100% 15% Others 1% Corporate Banking Group 8% 60% Funding & Others >100% Group -17% Others Treasury & Retail Banking 1% Market 35% 1
Slide 29: Impairments
Asset Quality Impairments Net Impairment / (Writebacks) and GIL Ratio Total impairments by category (RM’ mil) Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 QoQ Change YoY Change ECL Stage 1 & 2 / CP – Non defaulted1 31 121 454 310 122 61% >100% ECL Stage 3 / CP – Defaulted 89 265 (98) 131 118 10% 33% I
Slide 30: Loans by sector vs industry
Loans Loans by sector vs industry AmBank Group (RM’ bil) Loans Composition 2% 2% 13% 1% 4% 8% 4% 5% 6% 1% 54% ≈ 100% YTD Growth 5% 5% ≈ 2% 7% 4% 8% 20% 3% 21% 1% 10% 1% Jun'21 115.6 62.0 4.4 9.4 5.7 7.5 2.5 2.8 14.7 1.2 4.1 1.2 0.0 Wholesale, Finance, Mining & Electricity, T
Slide 31: Divisional Performance
Divisional Performance
Slide 32: Wholesale Banking
Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Total Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth: 43% YoY Growth: 41% 269 Total Income RM344 mil 220 2% 159 146 Transaction 111 Banking 19% 14% Transaction Banking 6% Wholesale Banking Q1FY21 Q2FY21 Q3FY21 Q4F
Slide 33: Wholesale Banking
Wholesale Banking Wholesale Banking Income Statement YoY Growth 2% 46% 16% 1% 19% >100% 41% 43% 41% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY22 263 81 344 66 278 74 203 44 159 Q1FY21 257 150 407 66 342 (5) 347 78 269 Q1FY2
Slide 34: 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 30 June 2021(%) 3.6% 3.6% 3.4% DCM (Overall MYR Bonds) 13.2% 4 3.2% 3.0% Islamic Sukuk 9.6% 4 5.0% 4.9% 4.8% 4.3% 3.9% Unit Trust 7.3%
Slide 35: Investment Banking
Investment Banking Investment Banking Income Statement YoY Growth 40% 36% 36% 2% 87% 20% 84% 95% 81% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY22 15 85 100 41 59 (2) 61 13 47 Q1FY21 11 63 73 42 31 (1) 33 7 26 Q1FY22 PAT Q1F
Slide 36: Retail Banking
Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business (LAT) / PAT Trend (RM’ mil) QoQ Growth: >100% Total Income YoY Growth: 86% RM422 mil 86% 40% 2% Others 1% Retail SME Auto 12% 12% 49% Wealth Others 146 7% Retail 7% Auto 133 SME 20% Cards 7% 4% Mortga
Slide 37: Retail Banking: Wealth sales, merchant volume, cards
Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth: 29% Merchant volume (RM'mil) QoQ Growth: 11% YoY Growth: 37% YoY Growth: 19% Merchants in force ('000) QoQ Growth: 1% YoY Growth: 35 35 35 35 35 1,853 1,689 1,456 1,192 2,420 2,532 2,342 2,261 1,001 1,646 Q1
Slide 38: Retail Banking
Retail Banking Retail Banking Income Statement YoY Growth 22% 29% 23% 4% 67% 17% 87% 87% 87% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY22 357 65 422 204 218 42 175 42 133 Q1FY21 291 51 342 212 130 36 94 23 71 Q1FY22 PAT Q1F
Slide 39: Business Banking
Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) YTD Growth: 1% QoQ Growth: 47% YoY Growth: 70% Non-trade Trade 12,586 12,697 11,898 12,160 11,420 2,730 2,632 2,569 2,537 2,647 9,330 9,623 9,856 10,065 8,774 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Customer Deposits (RM’ m
Slide 40: Business Banking
Business Banking Business Banking Income Statement YoY Growth 43% 33% 41% 6% 74% >100% 63% 43% 70% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY22 89 24 113 31 81 16 65 13 52 Q1FY21 62 18 80 33 47 7 40 9 31 Q1FY22 PAT Q1FY21 P
Slide 41: Islamic Banking
Islamic Banking Islamic Banking Income Statement YoY Growth 31% 1% 50% >100% 2% 1% 2% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ Q1FY22 260 72 187 93 94 21 73 Q1FY21 198 73 124 32 92 20 72 Q1FY22 PATZ Q1FY21 PATZ Positive growth in Q1FY22 Contraction in Q1FY22 Ba
Slide 42: General Insurance
General Insurance General Insurance Loss Ratio and Combined Ratio PBT and PAT (RM’ mil) Loss Ratio Combined Ratio 100% 92% 92% 93% 91% YoY PBT Growth: 3% 84% PBT PAT YoY PAT Growth: 3% 35% 35% 33% 46% 35% 30% 282 57% 58% 60% 56% 54% 54% 260 262 242 FY18 FY19 FY20 FY21 Q1FY21 Q1FY22 Gross Premium
Slide 43: Insurance and Group Funding & Others
Insurance & Others Insurance and Group Funding & Others Income Statement – Insurance (General, Life & Takaful) YoY Growth 18% 39% 5% >100% 7% 49% 2% RM'mil Total Income Expenses PBP Impairment PBT Tax PAT Q1FY22 187 74 114 (0) 114 16 98 Q1FY21 229 120 109 2 107 11 96 Income Statement –
Slide 44: Shareholding structure
Corporate Structure Shareholding structure 21.6%1 AmCorp 11.8% EPF 9.7% PNB 8.3%2 Others 48.6% As at 30 June 2021 AMMB Holdings Berhad Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful 100% AMAB Holdings Sdn Bhd 100% AmBank (M) Berhad 51% AmGeneral Holdings
Slide 45: Credit ratings, target price and recommendations
Ratings & Target Price Credit ratings, target price and recommendations Credit Ratings Q1FY22 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
Slide 46: 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/YTD growth refers to Q1FY22 vs Q4FY21 Yo
AMMB Holdings Berhad — Q1 FY2022 Earnings Presentation on 6ix