Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — FY2021 Earnings Presentation

55 slides from Malayan Banking Bhd's earnings presentation, Feb 24, 2022

  1. Slide 1: Investor Presentation: Financial Results 4Q and 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 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  3. Slide 3: Maybank Group FY2021 Overview

    Maybank Group FY2021 Overview Net profit of RM8.10 billion from RM6.48 billion a year earlier, on improving regional economies $ Business Income Drivers Improved Net fund based income up 14.6% YoY on 22 bps NIM expansion as interest expense reduced and Group CASA grew 17.2%. Group loans up 5.7% YoY

  4. Slide 4: M25: FY2021 Achievements in Key Strategic Objectives (1/5)

    M25: FY2021 Achievements in Key Strategic Objectives (1/5) HUMANISING FINANCIAL SERVICES Sustainable Top Rated Customer Regional ROE Experience ESG Leader FY2021 M25 Targets Retained MSCI ESG AA rating ROE 9.8% 13-15% +23 NPS CIR 45.3% <45% 95th percentile Retained FTSE4Good EPS 69.7 sen >100 sen In

  5. Slide 5: M25: FY2021 Achievements in Key Strategic Objectives (2/5)

    M25: FY2021 Achievements in Key Strategic Objectives (2/5) Pervasively Digital Market share of mobile and internet banking transaction Digital monetary volume at 56.3% and transactions Accelerating Fast-approval account opening Championing 24% YoY (value) 49.6%, respectively. prospects on process di

  6. Slide 6: M25: FY2021 Achievements in Key Strategic Objectives (3/5)

    M25: FY2021 Achievements in Key Strategic Objectives (3/5) Digital Solutions and Platforms MAE e-wallet (end-Dec’21) SME Digital Financing (end-Dec’21) SME Digital Accounts (end-Dec’21) app installed since approved loans since accounts activated since its launch in Oct’ 20 its launch in Sep’ 20 its

  7. Slide 7: M25: FY2021 Achievements in Key Strategic Objectives (4/5)

    M25: FY2021 Achievements in Key Strategic Objectives (4/5) New Value Drivers Fast and Easy Auto Assistance Achieved greater SME borrowing penetration Growing SME No. of customers Enhance Auto  Developing All Things Auto (ATA) system to financing Insurance create an ecosystem that will benefit custo

  8. Slide 8: M25: FY2021 Achievements in Key Strategic Objectives (5/5)

    M25: FY2021 Achievements in Key Strategic Objectives (5/5) Sustainability  Mobilised  Benefitted Over RM13.6 billion 502,759 in Sustainable Finance. Households across ASEAN. Commitment 1 Commitment 2  Committed  Maybankers spent to purchase Malaysia REC, 1,636,652 hours equivalent to 70% of our

  9. Slide 9: Financing Support for Customers

    Financing Support for Customers • 17.3% of total CFS loans outstanding (o/s) % of Loans Under Repayment Assistance, Relief and R&R Programmes Malaysia is under relief programmes: Against Respective Total Home Market Loans % of Outstanding As at As at o Deferred instalment is 53% Loan Balance^ 12/11/

  10. Slide 10: Table of Contents

    Table of Contents Executive Summary 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  11. Slide 11: P&L Summary: FY2021

    P&L Summary: FY2021 PPOP rises 2.9% YoY as net fund based income grows on lower interest expense and moderate cost growth More 4Q 3Q 4Q details on RM million FY2021 FY2020 YoY QoQ YoY FY2021 FY2021 FY2020 s.28 Net fund based income * 19,089.0 16,650.5 14.6% 4,868.6 4,719.2 3.2% 4,337.5 12.2% s.13/14

  12. Slide 12: Net Fund Based Income: FY2021 YoY Trends (1/2)

    Net Fund Based Income: FY2021 YoY Trends (1/2) Strong CASA growth across all home markets, supporting loans expansion in Malaysia, Singapore and GB Indonesia Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  +5.7%  +4.1%  +8.7%  (3.2)% 326.7 340.1

  13. Slide 13: Net Fund Based Income: FY2021 (2/2)

    Net Fund Based Income: FY2021 (2/2) NIM expands 22 bps YoY and 6 bps QoQ on reduced deposit cost Net Interest Margin (%) QoQ (Ann.) Trend 5 Year Trend 2.31 2.37 2.32 2.26 2.15 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 2.36 2.33 2.32 2.27 2.10 FY2017 FY2018 FY2019 FY2020 FY2021 12

  14. Slide 14: Net Fee Based Income: FY2021 (YoY)

    Net Fee Based Income: FY2021 (YoY) YoY decline on lower investment disposal gains and MTM losses, despite improvement in core fees RM million FY2020 FY2021 YoY Commission, service charges and fees 3,374 3,638  7.8% Investment & trading income 1,990 627  (68.5)% Unrealised gain/ (losses) on financi

  15. Slide 15: Net Fee Based Income: 4Q FY2021 (QoQ)

    Net Fee Based Income: 4Q FY2021 (QoQ) QoQ core fees growth was offset mainly by MTM losses and net loss on financial assets at FVTPL disposal 1Q 2Q 3Q 4Q RM million QoQ FY2021 FY2021 FY2021 FY2021 Commission, service charges and fees 1,026 898 822 893  8.6% Investment & trading income 333 234 146 (

  16. Slide 16: Overheads: FY2021 (YoY)

    Overheads: FY2021 (YoY) Well contained cost growth resulted in CIR of 45.3% and positive JAWs of 0.2% YoY 4Q 3Q 4Q RM million FY2021 FY2020 YoY QoQ YoY FY2021 FY2021 FY2020 Personnel Costs 6,808.2 6,563.2 3.7% 1,692.8 1,682.8 0.6% 1,610.7 5.1% Establishment Costs 1,918.5 1,892.5 1.4% 472.0 472.5 (0.

  17. Slide 17: Asset Quality (1/2)

    Asset Quality (1/2) Loan loss coverage moderates QoQ to 113.9% on new corporate loan impairments on balance sheet Allowances for losses on loans FY2021 ECL includes: 137.8% 124.3% • ~RM746 mil in management 122.2% 113.9% 115.9% overlay for loans under Loan loss coverage incl. repayment assistance an

  18. Slide 18: Asset Quality (2/2)

    Asset Quality (2/2) Group GIL reduced YoY to 1.99% on write-offs, repayments and recovery proceeds received Group Gross Impaired Loans (GIL) Ratio Composition GIL Ratio Components Dec 2021 Sep 2021 Jun 2021 Mar 2021 Dec 2020 Non Performing Loans (NPL) 1.28% 1.63% 1.92% 1.98% 2.02% Restructured & Res

  19. Slide 19: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets QoQ trends across segments largely trending downwards Consumer Mortgage Auto Finance Credit Cards 3.56% 3.03% 2.78% 5.98% 2.32% 2.40% 5.85% 5.95% 1.54% 5.46% 5.41% 1.31% 1.09% 1.09% 0.76% 1.97% 1.83% 1.74% 1.73% 1.62% 0.90% 0.86% 0.81% 0.75% 0.57% 0.

  20. Slide 20: Strong Liquidity & Capital Positions: December 2021

    Strong Liquidity & Capital Positions: 31 December 2021 LCR healthy at 136.4%, while Group CET1 capital ratio at 15.40% (assuming 85% reinvestment rate) After proposed dividend, Liquidity Risk Indicators Before proposed dividend assuming 85% reinvestment rate LCR LDR LTF LTFE 18.68% 19.52% 18.83% Gro

  21. Slide 21: Dividend: FY2021

    Dividend: FY2021 Second interim dividend of 30 sen per share, of which 7.5 sen is electable under the Dividend Reinvestment Plan Dividend Policy 40% - 60% 79.9% 78.5% 78.1% 78.5% 87.8% 91.2% 84.5% Dividend 76.5% 74.9% 74.7% 71.9% 76.3% 77.3% Payout Ratio 100% 67% 53% 63% 27% 20% 25% 19% 27% 34% 13%

  22. Slide 22: Table of Contents

    Table of Contents Executive Summary 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  23. Slide 23: Market Outlook

    Market Outlook 2022 industry outlook for our home markets KEY INDICATORS OUTLOOK 2022 (f) 2021 • Economic recovery expected to be firmer and broad-based on resumption of > GDP 6.0% 3.1% business activities. Macro policy remains pro-growth with OPR expected to stay at > System loan 4.9% 4.5% record-l

  24. Slide 24: Maybank Performance Outlook

    Maybank Performance Outlook Group’s Key Priorities and Guidance for FY2022 • Leverage fee-based income opportunities in wealth management, global markets, investment banking, asset Income management and insurance. Growth • Accelerate product rollouts on our digital platform to increase market penetr

  25. Slide 25: M25 Targeted Outcomes

    M25 Targeted Outcomes Aspirational Long-Term Outcomes FY2021 Annual FY2021 FY2022 Annual M25 Financial Guidance Achievements Guidance Targets: ~9% 9.8% 9.5% - 10% 13-15% Return on equity Return on equity Return on equity Return on equity 45-46% 45.3% 45%-46% ≤45% Cost to income ratio Cost to income

  26. Slide 26: Table of Contents

    Table of Contents Executive Summary 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  27. Slide 27: International & Malaysia Portfolio Mix FY2021

    International & Malaysia Portfolio Mix FY2021 Net Operating Income Profit Before Tax Gross Loans * FY2021 (Jan 21 – Dec 21) 4.4% Overseas: 5.8% Overseas: Overseas: 10.4% 16.0% 7.8% 32.3% 20.4% 38.6% 5.5% 16.1% RM25.45 RM10.89 RM553.8 billion billion # 25.3% billion 67.7% 61.4% 79.6% Malaysia Singapo

  28. Slide 28: Segmental Performance of Businesses: FY2021 (1/2)

    Segmental Performance of Businesses: FY2021 (1/2) Net Operating Income Group Global Banking  (5.5)% FY2020 FY2021  +2.8% FY2020: 10,419 FY2021: 9,848 24,763 25,448  +8.8%  (6.6)%  +1.8%  (16.7)%  (3.7)% 12,914 14,053 RM million 8,747 8,173 1,528 1,555 1,982 1,908 144 120 Total Group Community

  29. Slide 29: Segmental Performance of Businesses: FY2021 (2/2)

    Segmental Performance of Businesses: FY2021 (2/2) Net Fund Based Income Group Global Banking  +6.3% FY2020 FY2021  +14.6% FY2020: 5,655 FY2021: 6,011 19,089 16,651  +9.8%  +5.4%  +25.7%  +4.9%  +9.2% RM million 9,900 10,866 5,409 5,703 243 306 1,260 1,376 2 2 Total Group Community Group Corpo

  30. Slide 30: P&L Summary: QoQ

    P&L Summary: QoQ 4Q 3Q 2Q 1Q RM million FY2021 FY2021 FY2021 FY2021 Net fund based income 4,868.6 4,719.2 4,853.1 4,648.2 Net fee based income 1,431.1 1,430.8 1,320.7 2,176.9 Net operating income 6,299.6 6,149.9 6,173.7 6,825.1 Overhead expenses (2,954.8) (2,821.3) (2,920.8) (2,821.7) Personnel Cost

  31. Slide 31: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million FY2021 FY2020 YoY 4Q FY2021 3Q FY2021 2Q FY2021 1Q FY2021 QoQ Net interest income 1,375.9 1,260.4 9.2% 362.8 357.5 337.7 318.0 1.5% Net earned premiums 8,846.8 9,458.9 (6.5)% 2,167.6 1,983.4 2,166.5 2,529.2 9.3% Other operating income (5

  32. Slide 32: Group Gross Loans Growth: December 2021

    Group Gross Loans Growth: 31 December 2021 % of 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec QoQ YoY Portfolio 2021 2021 2021 2021 2020 Group Gross Loans 553.8 542.8  2.0% 541.5 534.4 523.7  5.7% Malaysia (RM billion) 61% 340.1 331.5  2.6% 330.9 329.8 326.7  4.1% Community Financial Services (reported) 76

  33. Slide 33: Malaysia Loans Growth: December 2021

    Malaysia Loans Growth: 31 December 2021 % of 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec RM billion QoQ YoY Portfolio 2021 2021 2021 2021 2020 Community Financial Services (reported) 76% 259.7 252.3  2.9% 250.4 248.8 247.0  5.1% Community Financial Services (rebased)¹ 76% 259.7 252.3  2.9% 250.4 248.8 247

  34. Slide 34: Group Deposits Growth: December 2021

    Group Deposits Growth: 31 December 2021 % of 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec QoQ YoY Portfolio 2021 2021 2021 2021 2020 Group Gross Deposits 617.7 609.6  1.3% 605.0 599.6 580.2  6.5% Malaysia (RM billion) 63% 391.9 382.7  2.4% 372.2 370.3 355.7  10.2% Savings Deposits 17% 67.4 67.1  0.4% 64.

  35. Slide 35: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 90.1% 89.0% 89.3% 88.9% 89.5% 92.5% 89.7% 89.7% 87.4% 87.5% 42.8% 47.1% 45.4% 46.0% 44.5% 43.2% 50.2% 42.0% 42.7% 46.8% 49.0% 49.3% 49.3% 41.1% 39.6% 41.7% 43.6% 44.8% 44.0% 43.2% Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Dec 20 Mar 21 Jun 21 Sep

  36. Slide 36: 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% 553.8 IDR, 6% 542.8 CNH, Equity, 11% 523.7 JPY, 7% SGD, 5% 12% CNY, 5% 423.3 404.5 Borrowin

  37. Slide 37: Specific Loan Exposure as at December 2021

    Specific Loan Exposure as at 31 December 2021 Oil & Gas Exposures for Non-Retail Borrowers Real Estate Exposure to Non-Retail Malaysian Borrowers Maybank Group Malaysia Singapore Indonesia Others 2.52% 1.70% 0.61% 0.03% 0.18% High Rise Residential, Special Others, 37.2% Normal Watchlist GIL 28.4% Bo

  38. Slide 38: Key Operating Ratios

    Key Operating Ratios 4Q 3Q 2Q 1Q 4Q % FY2021 FY2020 YoY QoQ YoY FY2021 FY2021 FY2021 FY2021 FY2020 Return on Equity 4 9.8 8.1 1.7% 10.0 8.2 1.8% 9.4 11.7 7.7 2.3% Net Interest Margin 4 (bps) 2.32 2.10 22 bps 2.32 2.26 6 bps 2.37 2.31 2.15 17 bps Fee to Income Ratio 25.0 32.8 (7.8)% 22.7 23.3 (0.6)%

  39. Slide 39: Table of Contents

    Table of Contents Executive Summary 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  40. Slide 40: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Market share Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Loans Total consumer (Household) 18.1% 18.2% 18.2% 18.1% 18.2% Auto (Hire Purchase + Block Discounting + Floor Stocking) 30.4% 30.4% 30.3% 30.4% 30.6% Total mortgage * 14.5% 14.6% 14.6

  41. Slide 41: Community Financial Services: 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 5.1% YoY and 2.9% QoQ Total Financial Assets grew 6.1% YoY to RM396.5 billion contributed by investments growth of 28.8%  +5.1% YoY  +2.9%

  42. Slide 42: Table of Contents

    Table of Contents Executive Summary 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  43. Slide 43: Global Banking: Malaysia Corporate Banking and Group Securities Portfolio

    Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio Total Corporate Banking loans in Malaysia increased 1.0% Group Securities Portfolio¹ grew 4.0% YoY YoY to RM80.4 billion RM billion  +4.0% YoY 48.3 222.0 223.9 Term Loan 48.2 (0.2)% YoY 215.2 217.5 8.0 209.0 9.7 9

  44. Slide 44: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio FY2021 Total Income Breakdown by Country FY2021 Fee-based Income for Malaysia Others Underwriting & Hong Kong 6% Placement Fees 4% 8% Arrangers' Phillipines Advisory Fees Fees 1% 7% 15% Indonesia Agency/ 4% Guarantee Fees Malaysia 4% Tha

  45. Slide 45: Table of Contents

    Table of Contents Executive Summary 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  46. Slide 46: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million FY2021 FY2020 YoY 4Q FY2021 3Q FY2021 QoQ Net fund based income 642.38 555.17 15.7% 174.08 167.22 4.1% Net fee based income 268.44 421.57 (36.3)% 72.16 70.30 2.6% Net income 910.82 976.74 (6.7)% 246.24 237.52 3.7% Overhead expenses (480.57) (465.94) 3.1% (1

  47. Slide 47: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Business deposits remained core contributor at 52.3% of total deposits % of 31-Dec 30-Sep 31-Dec  (6.9)% YoY SGD Billion QoQ YoY Portfolio 2021 2021 2020 51.6 49.5 48.0 Consumer - Time Deposits CFS 58% 24.6 24.2

  48. Slide 48: Table of Contents

    Table of Contents Executive Summary 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  49. Slide 49: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary IDR billion FY2021 FY2020 YoY 4Q FY2021 3Q FY2021 QoQ Net Fund Based income 7,117 7,260 (2.0)% 1,768 1,890 (6.5)% Net Fee Based income 2,090 2,379 (12.1)% 616 522 18.0% Net income 9,208 9,639 (4.5)% 2,384 2,413 (1.2)% Overhead expenses (5,475) (5,713) (4.2)% (1,212) (1

  50. Slide 50: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown % of 31 Dec 30 Sep 31 Dec Key Operating Ratio Dec-21 Sep-21 Dec-20 YoY IDR Trillion QoQ YoY Portfolio 2021 2021 2020 Profitability & Efficiency CFS 65.6% 66.8 65.2 2.4% 70.8 (5.6)% Return

  51. Slide 51: Table of Contents

    Table of Contents Executive Summary 2-8 4Q & Full Year FY2021 Financial Performance 10-20 Prospects & Outlook 22-24 Appendix: 1. Financial Performance 26-37 2. Community Financial Services 39-40 3. Global Banking 42-43 4. Maybank Singapore 45-46 5. Maybank Indonesia 48-49 6. Other Segments 51-53

  52. Slide 52: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM220.6 billion 9% Dec 20 67.1 RM million FY2021 FY2020 YoY Dec 21 61.5 8% 7% Total Income 6,684.1 5,357.1 24.8% 49.4 44.7 45.7 41.7 (2)% Profit Before Tax 4,429.7 2,3

  53. Slide 53: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 30.8% 30.7% 30.7% 30.3% 30.4% Key Products Dec 21 Dec 20 Automobile Financing 48.4% 48.5% 27.4% 27.4% 27.4% 27.2% Home 27.1% 26.9% 27.0% Dec 20 Mar 21 Jun 21 Sep 21 Dec 21 Term Financing 21.6% 27.4% Financi

  54. Slide 54: 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  11.4% 20.7% 19.3% 19.2% 19.7% Credit Premium  4.4% 13.8% 16.9% 18.0% 15.5% No. 4 in Life/Family Group Premium 13.1% (New Busi

  55. Slide 55: 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

Malayan Banking Berhad (Maybank) — FY2021 Earnings Presentation on 6ix