Alliance Bank Malaysia Bhd. · MYX:ABMB

Alliance Bank Malaysia Bhd — Shareholder Meeting (July 2024)

28 slides from Alliance Bank Malaysia Bhd's shareholder meeting presentation, Jul 31, 2024

  1. Slide 1: 42nd Annual General Meeting

    42nd ANNUAL GENERAL MEETING 31 July 2024 < Title of Presentation > < by> < Date/Status >

  2. Slide 2: Contents

    Contents 1 FY2024 Financial Highlights ▪ ACCELER8 2027: Year Year in in Review Review ▪ Revenue & Profitability ▪ Effective Risk Management ▪ Balance Sheet ▪ Shareholder Value 2 FY2024 Achievements ▪ ACCELER8 2027: Strategic Pillars ▪ Sustainability ▪ Awards 3 Going Forward ▪ ACCELER8 2027: FY2025 P

  3. Slide 3: ACCELER8 2027: FY2024 in Review

    ACCELER8: ACCELER8 2027: FY2024 in review FY2024 in review 5 Multiple partnerships 1 across FY to drive 8 A B Launched new sustainability agenda Refreshed our branding Opened new Won >40 strategic plan: - Bursa CSI-Mah Sing Supply (Oct’23): ‘The Bank for Life’ Saradise, awards in Acceler8 2027 • Ina

  4. Slide 4: Revenue grew 5.2%, crossing RM2 billion mark

    Financial Highlights: Revenue & Revenue grew 5.2%, crossing RM2 billion mark Profitability Revenue Net Interest Margin (NIM) RM mil Net interest income (NII) deposit Non-interest income (NOII) competition Y-o-Y: +5.2% 2.37% 2.30% 2.53% 2.64% 2.48% -16bps 4-year CAGR: +4.6% y-o-y positive impact of O

  5. Slide 5: Cost to income ratio at 48.2%

    Financial Highlights: Revenue & Cost to income ratio at 48.2% Profitability Operating Expenses Investment in people & technology RM mil OPEX CIR RM mil 8% of increase: 9% of collection 19% of agency fees, increase: increase: collective valuation fees & 11% of marketing search fees in agreement; Incr

  6. Slide 6: Net credit cost at 25.8bps; GIL ratio improved to 2.11%

    Financial Highlights: Effective Risk Net credit cost at 25.8bps; GIL ratio improved to 2.11% Management Net credit cost Gross Impaired Loans Basis points RM mil Total GIL ABMB GIL ratio (bps) COVID pandemic Management 2.00% 2.34% 1.85% 2.51% 2.11% overlays provided 67% secured, balance well Lower ne

  7. Slide 7: Total assets grew 16.0% - loans & treasury assets

    Financial Highlights: Balance Sheet Total assets grew 16.0% - loans & treasury assets Total Assets Assets Growth YoY RM bil RM bil +16.0% y-o-y 76.9 66.3 Y-o-Y 61.8 76.9 61.0 60.7 66.3 7.8 Other assets 6.0 14.4 +16.7% Treasury Assets 12.4 54.7 +14.2% Net Loans* 47.9 FY20 FY21 FY22 FY23 FY24 Mar-23 M

  8. Slide 8: Loans growth at 13.6% (>2x faster than industry)

    Financial Highlights: Balance Sheet Loans growth at 13.6% (>2x faster than industry) Gross Loans* Loans Growth YoY RM bil RM bil +13.6% y-o-y 55.7 55.7 Y-o-Y 49.1 49.1 6.3 +13.0% 46.2 43.7 44.1 Corporate 5.5 7.5 +13.8% Commercial 6.5 14.7 +15.8% SME 12.7 Consumer 24.3 27.3 +12.5% FY20 FY21 FY22 FY23

  9. Slide 9: Deposits growth at 12.9%, CASA ratio at 41.6%

    Financial Highlights: Balance Sheet Deposits growth at 12.9%, CASA ratio at 41.6% Customer Deposits Deposits Growth YoY RM mil Customer deposits ABMB CASA ratio RM bil Industry CASA ratio 47.0% 48.9% 41.9% 41.6% 37.4% 32.1% 32.6% 30.6% 31.1% 28.1% Y-o-Y +12.9% 57.4 y-o-y 50.8 3.5 57.4 Other deposits

  10. Slide 10: Liquidity and capital positions remain strong

    Financial Highlights: Balance Sheet Liquidity and capital positions remain strong Liquidity: LCR, LFR & NSFR Capital Position CET 1 Tier 1 Total Capital Liquidity Earnings retention: Coverage +1.09% Business growth: Ratio 162% 162% 155% 157% -2.37% (LCR) 150% 20.3% 19.8% 18.9% 18.7% 4.4% 4.3% 16.8%

  11. Slide 11: Net Profit at RM690 million, ROE of 10.2%

    Financial Highlights: Shareholder Value Net Profit at RM690 million, ROE of 10.2% Net Profit After Tax (NPAT) Return on Equity (ROE) RM mil % Return +1.9% y-o-y 690 10.5% 10.2% 678 9.2% 573 7.3% 424 5.9% 359 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 31-July-2024 42nd ABMB Annual General Meet

  12. Slide 12: Dividend payout at 50%, steady net assets growth

    Financial Highlights: Shareholder Value Dividend payout at 50%, steady net assets growth Dividend and Payout Ratio Net Assets per Share RM mil Total Dividend Paid RM Dividend Payout Ratio Total dividend: 22.3 sen 4-year CAGR: +4.6% 50% 50% 50% 4.63 22% 25% 4.14 4.36 3.87 4.04 341 345 286 93 90 FY20

  13. Slide 13: Total Shareholders Return at 22.8% (YTD 2024)

    Financial Highlights: Shareholder Value Total Shareholders Return at 22.8% (YTD 2024) Total Shareholders Return (TSR) Total Shareholders Return (TSR) % 94.9% 26.2% TSR % 29.6% 68.8% 25.7% 22.8% Dividend Yield % 20.2% 6.6% 3.4% 19.1% 19.5% Capital Gain % 9.5% 5-year TSR 3-year TSR 1-year TSR YTD-2024

  14. Slide 14: Contents

    Contents 1 FY2024 Financial Highlights ▪ ACCELER8 2027: Year in Review ▪ Revenue & Profitability ▪ Effective Risk Management ▪ Balance Sheet ▪ Shareholder Value 2 FY2024 Achievements ▪ ACCELER8 2027: Strategic Pillars ▪ Sustainability ▪ Awards 3 Going Forward ▪ ACCELER8 2027: FY2025 Priorities ▪ Key

  15. Slide 15: ACCELER8 2027

    FY2024 Achievements: ACCELER8 2027 ACCELER8 2027 Vision: The Preferred Banking Partner Mission: Building Alliances to Improve Lives FY27 AMBITIONS Financials Best in class Top • Top quartile ROE (>11%) • Solid ESG Maintain dividend ratio customer employer • Target C:I 45% • Loans growth above indust

  16. Slide 16: Achieved ALL FY24 targets for ACCELER8 strategic pillars (1/2)

    FY2024 Achievements: Achieved ALL FY24 targets for ACCELER8 ACCELER8 2027 strategic pillars (1/2) 1 Continue velocity on SME 3 Broaden consumer business, targeting expansion strategy attractive segments SME* YoY Loan Growth Target: Maintain Consumer YoY Loan Target: Surpass *Based on BNM SME Definit

  17. Slide 17: Achieved ALL FY24 targets for ACCELER8 strategic pillars (2/2)

    FY2024 Achievements: Achieved ALL FY24 targets for ACCELER8 ACCELER8 2027 strategic pillars (2/2) 5 Become regional champion for 7 Accelerate Islamic business, selected economic corridors leveraging unique propositions Regional YoY Growth Target: Surpass FY22 AIS YoY Financing Target: Surpass FY22 (

  18. Slide 18: Loans growth ahead of industry – regained market share

    FY2024 Achievements: Loans growth ahead of industry – regained market share Market Share Regained lost market share Regained consumer market share ABG loan market share (%) Within ABMB loan growth: 13.6% 1 year (2.3x faster than industry). 2.27% 2.25% Industry loan growth: 6% 2.58% 2.14% 2.13% 2.49%

  19. Slide 19: Accelerated Progress towards Our Sustainability Topline Goals

    FY2024 Achievements: Sustainability Accelerated Progress towards Our Sustainability Topline Goals 1 Grow RM15.0 billion in new sustainable banking business by FY2027 Achievement: Cumulative RM12.6 billion in new sustainable banking business in FY2024 Developed the Bank’s Rolled out the SME Partnered

  20. Slide 20: Accelerated Progress towards Our Sustainability Topline Goals

    FY2024 Achievements: Sustainability Accelerated Progress towards Our Sustainability Topline Goals Reduce the Bank’s greenhouse gas (GHG) emissions footprint 3 Achievement: 18.3% reduction in Scope 1 and Scope 2 GHG emissions against FY2020 baseline Continued execution of the GHG emissions reduction

  21. Slide 21: 42 Awards in Malaysia and Across the Region

    42 Awards in Malaysia and Across the Region SME BEST BEST BEST PARTNERSHIP DSME BANK SME BANK VIRTUAL OF THE YEAR IN MALAYSIA IN MALAYSIA CREDIT CARD QORUS SME BANKING AWARDS ALPHA SOUTHEAST ASIA THE ASIAN BANKER, RETAIL BANKER INTERNATIONAL, THE THE DIGITAL BANKER DIGITAL BANKER, THE ASIAN BANKER B

  22. Slide 22: Contents

    Contents 1 FY2024 Financial Highlights ▪ ACCELER8 2027: Year in Review ▪ Revenue & Profitability ▪ Effective Risk Management ▪ Balance Sheet ▪ Shareholder Value 2 FY2024 Achievements ▪ ACCELER8 2027: Strategic Pillars ▪ Sustainability ▪ Awards 3 Going Forward ▪ ACCELER8 2027: FY2025 Priorities ▪ Key

  23. Slide 23: FY25 Acceler8 2027 Key Success Metrics

    Going Forward: ACCELER8 2027: FY25 Acceler8 2027 Key Success Metrics FY2025 Priorities 1 Continue acquisition 2 Intensify focus on 3 Continue to drive momentum deepening relationship incremental Islamic with target customer franchise growth segments • Improve customer targeting • Focus on target seg

  24. Slide 24: Refining ACCELER8 2027

    Going Forward: Refining ACCELER8 2027 ACCELER8 2027: FY2025 Priorities Vision: The Preferred Banking Partner Mission: Building Alliances to Improve Lives FY27 AMBITIONS Financials Best in class Top • Top quartile ROE (>11%) • Loans growth above industry (8-10%) Solid ESG customer employer • Target C

  25. Slide 25: Our new office: Menara Alliance Bank

    Going Forward: Our new office: Menara Alliance Bank Key Updates • Menara Alliance Bank: ⁻ 24 floors of office space ⁻ Retail branch on Ground and First Floors of a 2-storey retail podium • Background: - CapSquare HQ: renting for 28 years • Why relocate?: - Certainty and continuity of having head off

  26. Slide 26: Outlook & Concluding Remarks

    Going Forward: Concluding Remarks Outlook & Concluding Remarks ▪ Cautiously optimistic outlook: With uncertainty in external environment, we will need to stay vigilant and agile. Business ▪ Will continue building on momentum - expecting loans growth above industry growth (guidance: 8% to 10%) and fo

  27. Slide 27: Thank You

    THANK YOU Video of “Alliance Bank FY24 Highlights” Play Video https://youtube/CHrw2YVM6pQ Disclaimer: This presentation has been prepared by Alliance Bank Malaysia Berhad (the “Company”) for information purposes only and does not purport to contain all the information that may be required to evaluat

  28. Slide 28: Alliance Bank – The Bank for Life

    A ALLIANCE BANK THE BANK FOR LIFE”

Alliance Bank Malaysia Berhad — Shareholder Meeting (July 2024) on 6ix