Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — 9M FY2011 Earnings Presentation
42 slides from Malayan Banking Bhd's earnings presentation, May 12, 2011
Slide 1: Financial Results 9 Months FY2011 ended 31 March 2011
FINANCIAL RESULTS 9 Months FY2011 ended 31 March 2011 Conference Call 12 May 2011
Slide 2: Executive Summary
Executive Summary Financial Performance Business Review Country Review i Kim Eng Update Economic Update and Key Takeaways 1
Slide 3: Key Highlights: Financial performance continues to improve
Key Highlights: Financial performance continues to improve ■ 3Q11 PATAMI grew 10.9% YoY and 1.5% QoQ to RM1.14 billion. 9M11 PATAMI grew 13.4% YoY to RM3.30 billion. ■ 9M11 revenue grew 4.7% YoY on the back of 7.6% growth in Net Interest Income and 1.8% growth in Non‐Interest Income. ■ Growth in Net
Slide 4: Key Highlights: Kim Eng now a subsidiary
Key Highlights: Kim Eng now a subsidiary Corporate Developments Recent Industry Recognition Kim Eng is now a 50.2% subsidiary of ■ Forbes Global 2000 Maybank. Initiated MGO for Ranked No. 458; No. 1 in Malaysia remaining shares of Kim Eng. ■ The Asian Banker Dividend Reinvestment Plan well ■ Bes
Slide 5: YTD Key Performance Indicators (KPI) for FY2011
YTD Key Performance Indicators (KPI) for FY2011 Headline KPIs Target 9M11 achievements Return on Equity 14% 15.0% (normalised) Loans and Debt Securities Growth 12% 17.2% Other h targets Target 9M11 achievements h Loans Growth • Malaysia 12% 13.8% • Singapore 5% 19.4% • BII 24% 26.5% Net Interest Mar
Slide 6: Financial Performance
Executive Summary Financial Performance Business Review Co ntr Review Country Re ie Kim Eng Update Economic Update and Key Takeaways 5
Slide 7: 3Q11 PATAMI rose 10.9% YoY to RM1.14 billion
3Q11 PATAMI rose 10.9% YoY to RM1.14 billion Quarter Q RM million QoQ YoY 3Q11 2Q11 3Q10 Change Change Net interest income 1,771.4 1,813.2 ‐2.3% 1,668.0 6.2% Income from Islamic Banking 387.8 392.9 ‐1.3% 1.3% 341.5 13.6% Net income from insurance business* 84.1 41.0 104.9% 101.9 ‐17.5% Non‐interest
Slide 8: 9M11 PATAMI rose 13.4% YoY to RM3.30 billion
9M11 PATAMI rose 13.4% YoY to RM3.30 billion 9 Months RM million YoY 9M11 9M10 Change Net interest income 5,359.2 4,978.7 7.6% Income from Islamic Banking 1 118 9 1,118.9 1 079 0 1,079.0 3 7% 3.7% Net income from insurance business* 211.9 256.3 ‐17.3% Non‐interest income 2,918.0 2,866.5 1.8% Net inc
Slide 9: Gross loans grew 17.1% annualised
Gross loans grew 17.1% annualised Strongg recoveryy in GWB loans ggrowth and almost all segments g recordingg double digit g ggrowth QoQ Annualised RM billion Mar‐11 Dec‐10 Jun‐10 Mar‐10 YoY Growth Growth Growth Community Financial Services 110.3 106.1 101.2 97.9 4.0% 12.0% 12.7% Consumer 85.2 81.2
Slide 10: Group deposits grew faster YoY at 13.4% annualised
Group deposits grew faster YoY at 13.4% annualised Group LDR increased to 89.8% due to stronger loans growth Malaysia Singapore BII Group Annualised Annualised Annualised Annualised RM bil SGD bil Rupiah bil RM bil Growth Growth Growth Growth Savings Deposits 30.5 11.3% 2.8 14.4% 14.7 25.6% 42.9 14.
Slide 11: Asset quality: Net Impaired Loan Ratio continues to improve to 2.39%
Asset quality: Net Impaired Loan Ratio continues to improve to 2.39% Pre‐FRS 139 Post‐FRS 139 131.8% 137.4% 120.5% 124.5% 125.6% 112.9% 113.2% 117.8% Loan loss coverage 87.6% 84.1% 84.6% 86.9% Gross Impaired Loan Ratio 4.63% 4.70% Net Impaired Loan 4.20% Ratio 3.46% 3.50% 3.66% 3.27% 3 07% 3.07% 2.8
Slide 12: Non-Interest Income grew 3.0% YoY including Islamic and Insurance
Non‐Interest Income grew 3.0% YoY including Islamic and Insurance +3.0% YoY +7.3% 1,856.4 1,730.5 ‐28.5% +12.7% +65.8% ‐27.2% +109.7 ‐17.3% ‐12.2% 350 5 350.5 382.0 388 1 388.1 333.4 256.3 307.9 338.9 201.2 196.3 277.4 168.0 211.9 142.9 80.1 Commission, Investment & Other income Fee income from Net
Slide 13: Overheads: 9M11 grew 7.8% YoY but 3Q11 declined 4.9% QoQ
Overheads: 9M11 grew 7.8% YoY but 3Q11 declined 4.9% QoQ Overheads O erheads declined 4.9% 4 9% QoQ due d e +7 8% YoY +7.8% to lower IT expenses, and Admin. 4,690.1 and General expenses 3Q11 9M11 Overhead Expenses 4,350.9 YoY QoQ YoY Personnel Costs 16.3% 2.9% 16.5% 1,461.5 IT Expenses 1.7% ‐5.6% ‐6
Slide 14: Maybank Group: Key Ratios
Maybank Group: Key Ratios 9M11 9M10 3Q11 2Q11 1Q11 4Q10 3Q10 2Q10 Net Interest Margin 2.63%@ 2.77% 2.57% 2.70% 2.69% 2.88% 2.76% 2.77% Return on Equity (normalised) 15.0% 14.9% 16.0% 13.9% 14.8% 14.5% 16.1% 14.3% Fee to Income Ratio 34 3% 34.3% 34 9% 34.9% 33 8% 33.8% 33 5% 33.5% 31 7% 31.7% 35 2% 3
Slide 15: Net interest margin for 9M11: 2.76% on normalised basis
Net interest margin for 9M11: 2.76% on normalised basis Net interest margin: 9M11 2.80% 2.75% 0.03% 2.70% 0.10% 2.65% 2.76% 2.73% 2.60% 2.63% 2 55% 2.55% As reported FRS139 Normalised after Forex Normalised after adjustments FRS139 forex adjustments * *Adjustments for Effective Interest Rate, Unwind
Slide 16: Capital Adequacy improved after capital raising
Capital Adequacy improved after capital raising Capitall Adequacy d improved d on proforma f b basis after f Kim Eng acquisition and d SGD1 billion b ll sub‐debt bd b Group Bank 14.12% 14.47% 13.19% 13.30% 11.60% 11.01% 31 Mar 11 31 Mar 11 31 Mar 11 31 Mar 11 Before Kim Eng acquisition After Kim Eng
Slide 17: Business Review
Executive Summary Financial Performance Business Review Co ntr Review Country Re ie Kim Eng Update Economic Update and Key Takeaways 16
Slide 18: Strong performance in CFS and GWB's corporate banking
Strong performance in CFS and GWB’s corporate banking 4.7% Domestic Global Wholesale Banking (GWB) 9,607.92 9M10 9M11 Revenue ((RM million) 9,180.5 1.1% 21.0% 20.7% 23.0% 10.8% ‐5.7% 4,574.3 4 574 3 4,525.1 3,152.8 2,844.5 924.5 1,184.7 764.2 981.9 222.2 180.6 490.2 462.1 Total Community Corporate B
Slide 19: Community Financial Services: Mortgage Loans and Hire Purchase
Community Financial Services: Mortgage Loans and Hire Purchase Mortgage g g Loans: Growth continue to surpass p RM900 million Mortgage Loans: Improving Asset Quality in 3Q11 Post FRS139 7.4% 6.9% 966.3 971.2 6.3% 855.3 888.2 783.2 5.4% 5.0% 665.8 4.5% 556.8 3.9% RM million 1Q10 2Q10 3Q10 4Q10 1Q11 2
Slide 20: Community Financial Services: Cards continues to gain market share
Community Financial Services: Cards continues to gain market share Cards Market Share Cards performance outperforming industry Mar 11 Mar 10 YoY Maybank Industry* Cardbase 16.7% 16.3% Cardbase ‐10.1% ‐12.3% Billings 22.3% 21.8% Billings 17.9% 14.4% Receivables 14.5% 14.2% Receivables 15.6% 13.5% Mer
Slide 21: Business Banking and SME
Business Banking and SME Loans grew 1.4% annualised Deposits grew 27.6% annualised +1 4% ann. +1.4% ann +27 6% ann +27.6% ann. +0.1% QoQ +8.4% QoQ 70.2 24.8 25.1 25.1 64.7 58.1 58.9 24.2 RM billion RM billion Jun 10 Sep 10 Dec 10 Mar 11 Jun 10 Sep 10 Dec 10 Mar 11 SME loans market share recovering B
Slide 22: Global Wholesale Banking: Loans growth improved to 17.7% annualised
Global Wholesale Banking: Loans growth improved to 17.7% annualised Total GWB loans ((RM billion)) Recoveryy in Trade Finance Market Share 24.1% 8,327 23.4% Trade Finance 22.9% 7,288 +19 0% +19.0% 22 8% 22.8% 23 4% 23.4% 22.6% 22.8% 22.5% 22.5% 23.0% 22.6% 22.4% 22.2% Short Term 13,677 +9.0% 9 0% Ma
Slide 23: Global Markets: Revenue growth supported by non interest income
Global Markets: Revenue growth supported by non interest income Growth in Revenue Credit Rating for Private Debt Securities in Malaysia +20 7% +20.7% 1.184.7 981.9 A and 659.5 below, 538 3 538.3 36 9% 36.9% AAA, 35.9% 443.6 525.2 ‐AA to AA, 27 2% 27.2% 9M10 9M11 Net interest income Non interest inco
Slide 24: Brokerage activities contributed majority of IB income
Brokerage activities contributed majority of IB income Fee based Income 9M11 Fee based Income Segmentation g Agency / 9M11 208.7 Guarantee fees 1% FY10 196.2 Underwriting/ Arrangers' Placement fees FY09 107 7 107.7 fees 20% 22% Corporate FY08 198.3 Miscellaneous advisory fees fee income 7% FY07 3% P
Slide 25: Maybank Islamic maintains strong financing growth of 31.9% annualised
Maybank Islamic maintains strong financing growth of 31.9% annualised Islamic Banking Income and PBT** Maybank Islamic financing (31.9% annualised growth) +49.0% Total Gross Financing = RM43.0 billion as at Mar 11 1035.8 130.9 +25.0% +64.1% million 695.1 631.9 87 8 87.8 14.7 RM m 385.0 904.9 279.3 1
Slide 26: Etiqa: No. 1 Position in Life/Family and General Business
Etiqa: No. 1 Position in Life/Family (new business) and General Business Combined Gross Premium Overall Loss Ratio Lower Than Industry Industry Combined 57.1% (Etiqa) vs 60.3% (Industry) 60 3% 60.3% Gross Premium ‐3.1% 20.0% 13.0% 9.6% Regular Premium +1.7% Fire 17.4% 16.1% 26.1% Credit Premium +2.8
Slide 27: Country Review
Executive Summary Financial Performance Business Review Co ntr Review Country Re ie Kim Eng Update Economic Update and Key Takeaways 26
Slide 28: Revenue and PBT by geography
Revenue and PBT by geography Gross Revenue Profit Before Tax 5% 7% International: International: 4% 33% 25% 16% 14% 14% 3Q11 3Q11 3Q11 RM9.608b 67% RM4.542b 75% 12% Malaysia Singapore Indonesia Others 5% 10% 15% 5% 15% 12% 3Q10 3Q10 3Q10 RM9.181b RM4.011b 17% 69% 70% International: International: 31
Slide 29: Singapore: PBT improved 13.0% on higher fee income and lower provision
Singapore: PBT improved 13.0% on higher fee income and lower provision Revenue and PBT rose 8.5% and 13% YoY respectively Diversified Loan Portfolio +16% YoY 8.5% +19.3% annualised 13% 20.1 497.1 17.3 17.5 458.0 5.7 Others 102.8 158.0 4.4 4.2 SGD million 253 9 253.9 286.8 33 3.3 Car Loans 3.3 3.3 SG
Slide 30: Bank Internasional Indonesia
Bank Internasional Indonesia Income Statement Ju 10-Mar Jul 0 a 11 Ju 09 Jul 09-Mar a 10 0 YoY o Ja 11-Mar Jan a 11 Ja 10-Mar Jan 0 a 10 0 YoY o R Billi Rp Billion Contribution Contribution % Change Contribution Contribution % Change Interest income 5,406 4,482 20.6% 1,930 1,489 29.6% Interest expen
Slide 31: Bank Internasional Indonesia
Bank Internasional Indonesia Group Revenue and PBT (Rp billion) for 1Q11 (as reported in BII) Net Interest Margin +21.7% 1,561 1,283 1,244 6.26% 5.89% 5 67% 5.67% 305 ‐29.2% 228 216 YTD Mar'10 YTD Mar'10 proforma YTD Mar'11 Revenue PBT *YTD Mar’10 proforma (after adoption IFRS) Mar-10 Dec-10 Mar-11
Slide 32: Bank Internasional Indonesia
Bank Internasional Indonesia Branches and ATM Asset Quality Branches 3.52% 3.09% ATM + CDM 2.79% 2.88% 2.57% 952 994 844 893 745 743 748 787 806 1.92% 1.87% 1.97% 252 255 255 255 260 274 295 327 337 1.74% 1.40% 09 09 09 09 10 10 10 10 11 Mar 10 Mar-10 Jun 10 Jun-10 Sep 10 Sep-10 Dec 10 Dec-10 Mar 11
Slide 33: Bank Internasional Indonesia: WOM Finance
Bank Internasional Indonesia: WOM Finance Revenue and PBT (Rp billion) Unit Financing (In 000 unit) +14.5% 400 380 160 143 332 Rupiah Billion 350 140 128 120 115 300 106 250 100 80 200 60 150 37 40 100 ‐85.7% 13 49 20 50 7 0 0 New Used Total YTD Mar 10 YTD Mar 11 YTD Mar 10 YTD Mar 11 Revenue Profit
Slide 34: MCB Bank: Financial Highlights
MCB Bank: Financial Highlights Revenue and PBT Loans and Deposits +28.1% +18.1% 11.8 462.3 391.5 9.2 +24.8% 80 8.0 +7.0% 6.4 242.2 259.1 PKR Billion PKR Billion Loans Revenue Deposits PBT 1Q10 1Q11 1Q10 1Q11 Key Ratios 1Q10 1Q11 ROA 1.28% 1.31% ROE 13.76% 16.25% CIR 31.6% 33.5% LDR 61.86% 56.04% NPL
Slide 35: Kim Eng Update
Executive Summary Financial Performance Business Review Co ntr Review Country Re ie Kim Eng Update Economic Update and Key Takeaways 34
Slide 36: Kim Eng now a 50.2% subsidiary of Maybank
Kim Eng now a 50.2% subsidiary of Maybank z 44.6% stake acquired from Ronald Ooi and Yuanta 1 Maybank z Acquired 5.6% stake in Kim Eng from market in January 2011 Shareholding in Kim Eng and MGO z Maybank now owns 50.2% of Kim Eng z MGO at S$3.10 $ per share. Offer document to be despatched within 1
Slide 37: Economic Update and Key Takeaways
Executive Summary Financial Performance Business Review Country Review Kim Eng Update Economic Update and Key Takeaways 36
Slide 38: Malaysia: Sustained growth for 2011
Malaysia: Sustained growth for 2011 Growth to be sustained at 5.5% in 2011 (2010: 7.2%) Inflation expected to rise to 3.0% in 2011 (2010: 1.7%) 150 Quarterly GDP and annual growth rate 12 CPI and components (% YoY) Quarterly GDP and annual growth rate 14 25 9 20 140 12 Transport (RHS) 15 6 10 130 10
Slide 39: Malaysia: Banking Sector
Malaysia: Banking Sector Total Loans grew 13.2% YoY for Mar 2011 Total Deposits grew 9.7% YoY for Mar 2011 Total Loans Total Loans YoY Growth 1200 25% 18% Total Deposits Total Deposits YoY Growth Household YoY Growth Business YoY Growth 1150 910 16% 1100 20% 860 14% billion billion 1050 810 12% 15%
Slide 40: Macro Challenges
Macro Challenges Inflationary pressure in Malaysia, Singapore and Indonesia could impact consumer sentiment. Rising household debt poses greater risk on the banking system. Further F th tightening ti ht i measures by b central t l banks b k tto curb b consumer lloans growth. Central banks co
Slide 41: Key Takeaways
Key Takeaways ■ Financial and operational performance continues to improve ■ Improving loans growth ■ Consumer loans growth rising despite initial measures to cool rising household debt. ■ Growth in corporate loans gaining traction due to Economic Transformation Programme (ETP). ■ Continued strong l
Slide 42: Thank You
Thank You Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the information that may be required to evaluate the Company or its financial position. No representation or warranty, express or impl
Malayan Banking Berhad — 9M FY2011 Earnings Presentation on 6ix