Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Shareholder Meeting (March 2012)
43 slides from Malayan Banking Bhd's shareholder meeting presentation, Mar 29, 2012
Slide 1: Humanising Financial Services Across Asia
Humanising Financial Services Across Asia 52nd Annual General Meeting Presentation to Shareholders Dato’ Sri Abdul Wahid Omar President and CEO 29 March 2012 www.maybank.com 00
Slide 2: For the 6-month financial period
For the 6-month financial period p z We posted another record profit despite challenging global economic conditions z Exceeded E d d our headline h dli Key Performance Indicators (KPIs) z Consolidated our position as one of the top ASEAN Banks and maintained pole position in Malaysia z Achieved impr
Slide 3: Headline KPIs
Headline KPIs Target Achievement Target Met z Return on Equity 16% 16.2% (ROE) z Loans and Debt 12% 16.3% Securities Growth 22
Slide 4: Presentation to Shareholders
Presentation to Shareholders Financial Performance Strategy Prospects 3Financial Results: 6-Month Financial Period ended 31 December 2011
Slide 5: Profit Attributable to Shareholders
20 0% 20.0% 2.58 b RM2.58 2 58 2 15 b 2.15 billion Profit Attributable to Shareholders 6m FY11 6m FP11 44
Slide 6: Revenue RM7.83b
RM 4 89b 4.89 +16.2% RM 7.83b 7.83 Fund based Income +21 6% +21.6% Revenue RM 2 94b 2.94 ((Net Income)) +32.0% 32.0% Fee based Income 55
Slide 7: Revenue, overheads and allowances
RM7.83 7 83b +21 6% +21.6% Revenue (Net Income) +16 2% +16.2% excluding Kim Eng RM3.94 3 94b +25 7% +25.7% Higher Overhead Expenses +13 8% +13.8% excluding Kim Eng RM0.33 0 33b -13 9% -13.9% Lower Allowances for losses on loans 66
Slide 8: Profit Before Tax
20 1% 20.1% RM3.56 3 56 3.56 b 2.97 b billion Profit Before Tax 6m FY11 6m FP11 77
Slide 9: Stronger PBT growth in our Home Markets
Stronger PBT growth in our Home Markets 22% 2625 2143 RM milllion 38% 67% 33% 569 414 304 R 100 166 203 Malaysia Singapore Indonesia Others 6 FY11 6m 6 FP11 6m 88
Slide 10: PBT contribution from International increased to 27%
PBT contribution from International increased to 27% Others Indonesia International:27% 6% 5% Singapore 16% RM3.56b 73% Malaysia 99
Slide 11: PBT growth across all business pillars
PBT g growth across all business pillars p 18.0% 1,689 6m FY11 6m FP11 7.8% 1 432 1,432 1,250 19.4% 1,160 977 RM million 818 323.1% 386 R 91 Community C i Gl b l Wholesale Global Wh l l IInternational i l IInsurance, Takaful T k f l Financial Services Banking Banking & Asset Management 10 10
Slide 12: Loans growth of 16% driven by International
Loans oa s g growth owt oof 16% 6% d driven ve by International te at o al 16.2% Jun 11 Dec 11 282 8 282.8 261.5 10.0% 170.1 178.6 RM billlion 28.7% 102.2 89.4 R Gross Loans Malaysia International 11 11
Slide 13: Domestic Loans driven by Consumer Segment
Domestic Loans driven by Consumer Segment RM billion Annualised Growth Malaysia 178.6 10.0% Community Financial Services 120 7 120.7 14 4% 14.4% Consumer 94.9 15.9% Mortgage 42.1 18.1% A Auto Fi Finance 2 27.7 12.8% Cards 5.3 17.6% Unit Trust 18.5 16.3% Business Banking / SME 25.8 9.1% Global Wholes
Slide 14: Community Financial Services
Community Financial Services Improving towards becoming the undisputed No.1 Retail Financial Services Provider Domestic Market Market Growth Value Position Share (annualised) (RM billion) Mortgage No 3 No.3 13 2% 13.2% 18 1% 18.1% 42 1 42.1 Auto Finance No 2 No.2 19 4% 19.4% 13 3% 13.3% 27 2 27.2 Ca
Slide 15: Global Wholesale Banking
Global Wholesale Banking g We target to be a regional wholesale banking powerhouse by 2015 z Retained domestic leadership z Grew wholesale deposits through enhanced cash management z Began integrating Maybank Kim Eng, l leveraging i on it its regional i l di distribution t ib ti 14 14
Slide 16: Global Wholesale Banking
Global Wholesale Banking Loans growth driven by Term Loans and STRC & Overdraft Loans grew 1.2% to RM57.7 billion Rising Trade Finance Market Share 23.3% 25.6% 26.4% 27.6 Term Loans +6.1% 26.8 Dec 11 Jun 11 Dec 2010 Jun 2011 Dec 2011 Short Term Revolving 18.9 Credit & +8.8% Asset quality remained st
Slide 17: Maybank Kim Eng
Maybank Kim Eng Revenue of RM510.8m with Revenue for Malaysia Malaysia contributing 41% increased 35% YoY million 322 8 322.8 RM m Hong Others Kong Malaysia 13% 2% 41% Indonesia 3% 214.9 214.0 million RM510.8m RM m Thailand 28% Singapore g p FY10 FY11 6m FP11 13% 16 16
Slide 18: League Table
League g Table Maybank IB’s (Malaysia) Industry Position & Market Share (July – December 2011) Total Industry Rank Deals / Market Maybank y IB Value b Value by V l I Issues Sh Share (RM bil.) M&A1 2 27.5 29 34.6% Equity & Rights Offerings1 2 0.8 4 15.9% Debt Markets - 1 2 9.6 62 27.1% Malaysia Domes
Slide 19: Notable Deals
Notable Deals (J l – December (July D b 2011) Investment Banking / Equity Capital Market Corporate Finance RM2,662,000,000 RM392,300,000 RM710,300,000 SGD600,000,000 RM4,060,000,000 IPO IPO IPO Reverse Takeover Privatisation Bumi Armada Berhad Eversendai Pavilion P ili R Reall E Estate t t Weiye W i
Slide 20: Islamic Banking sustained strong financing and profit growth
Islamic Banking sustained strong financing and profit growth Maybank Islamic z Profit Before Tax fi financing i g rose 32% to t RM567 RM567m 21% 52 4 52.4 47.2 z Islamic Finance to Total Domestic Loans RM billlion rose to 28.5% in Dec 2011 from 26.1% a year ago Jun 2011 Dec 2011 19 19
Slide 21: Insurance gaining market share
Insurance gaining market share No. 2 in Life/Family Combined Gross Premium (New Business) rose 20% 3000 2Q FY11 Prudential 15 1% 15.1% 20 2% 20.2% 2Q FP11 2500 Etiqa 14.8% 2000 20 5% 20.5% million Great Eastern 14.6% 1500 19.8% RM m No. 1 in General 1000 Etiqa 12.7% 500 0 Allianz 9.2% Combined Total
Slide 22: Singapore PBT boosted by fee income
Singapore PBT boosted by fee income Revenue and PBT rose 16.4% Loans growth outpaced industry and 10.4% YoY respectively Maybank b k 28 6% 28.6% 25.4% Industry 24.2% 16.4% 11.4% 384.6 14.8% 330.4 10.4% 8.6% SGD miillion 197.5 218.1 Jun 2010 Jun 2011 Dec 2011 Good Asset Quality (Net NPL) 0.25% 0.26%
Slide 23: BII: 25% PBT growth, 31% annualised loans growth
BII: 25% PBT growth, 31% annualised loans growth Revenue and PBT rose 12% Loan Composition: and 25% respectively SMEC is largest segment 12% SSyariah ariah 1% Subsidiaries 6,332 Corporate 6% 5,645 , 26% IDR billion Consumer 25% Rp67.2t 31% +31.2% 31.2% 790 985 FY10 FY11 FY10 FY11 SMEC 36% Revenue Pr
Slide 24: BII: continued branch expansion, improving asset quality
BII: continued branch expansion, improving asset quality Continued branch Asset Quality: Net NPL improving and ATM expansion 1 70% 1.70% 1152 1017 1.20% 952 1.10% 787 Dec 2010 Jun 2011 Dec 2011 Pressure on Net Interest Margin 327 344 351 255 5.87% 5.43% 5.22% Dec 09 Dec 10 Jun 11 Dec 11 Branches ATM
Slide 25: Robust Capital Adequacy
Robust Capital Adequacy Core Equity Ratio is comfortable to meet Bank Negara requirements 4.71% 4.71% 4.72% Risk Weigted Capital Ratio 2.42% 2.42% 2.42% Core Capital Ratio Core Equity 8.53% 9.13% 9.23% Ratio Fully electable Assuming 85% Full electable portion paid in cash reinvestment rate portion r
Slide 26: Presentation to Shareholders
Presentation to Shareholders Financial Performance Strategy Prospects 25
Slide 27: House of Maybank began delivering game-changing difference in customer experience
6 House of Maybank began delivering game-changing diff difference iin customer experience i Maybank Group CEO + Support Islamic Finance Enab blement Community Global Insurance & Financial Wholesale Takaful International Services Banking Expansion Enterprise Transformation Services 26 26 26
Slide 28: Humanising Financial Services Across Asia
Humanising Financial Services Across Asia ■ Providing customers with convenient access to financing z Consistent, C i t t iintegrated t t d and dhholistic li ti fi financial i l services i z New locations and new products z New initiatives to add to customer appeal z Regional R i l client li t cover
Slide 29: Humanising Financial Services Across Asia
Humanising Financial Services Across Asia ■ Being at the heart of community User friendly facilities for physically challenged customers Maybankers participating i g in group-wide id volunteerism l t i Ramps to ease access Automated sliding lidi g doors d 28 28
Slide 30: IT Transformation Programme: 5 year international roadmap
IT Transformation Programme: 5 year international roadmap House of Maybank Enterprise Implementation Launched Architecture Roadmap July 2010 October 2010 December 2010 Year 1 Projects Roll out of Branch subsequent and d Programme P Directors Front End releases Full IT April p 2011 Replacement i.e. R
Slide 31: Strengthening Management
Strengthening Management Appointed Chief Strategy & Transformation Officer and Assigning Group CFO to lead BII 30 30
Slide 32: Building the Brand
Building g the Brand z New Corporate Identity: Maybank Kim Eng z BII rebranding in progress z Inculcating our Brand Personality: Empathetic Collaborative Empathetic, Collaborative, Courageous, Courageous Genuine and Creative z Changing Mayban to Maybank globally 31 31
Slide 33: Four key priorities for FY2012
Four key y priorities p for FY2012 to support our objectives 1 Create and Embed Right Risk Culture 2 Significantly raise Customer Service quality 3 Drive Greater Efficiency & Effectiveness 4 Create a truly Regional Financial Services group 32 32
Slide 34: In 2012 we will:
In 2012 we will: z Introduce regional support infrastructure z Realise synergies from regional distribution networks with regionwide consistency in systems z Optimise p costs and resources across the Group p z Increase funding capabilities in our overseas markets z Open p branches in Beijing j g and
Slide 35: Presentation to Shareholders
Presentation to Shareholders Financial Performance Strategy Prospects 34
Slide 36: Malaysia: Sustained growth for 2012
Malaysia: Sustained growth for 2012 GDP growth forecast to Inflation expected to moderate to 4.0% 4 0% in 2012 decline to 2.7% 2 7% in 2012 7.2% 3.2% 5.1% 2.7% 4.0% 1.7% 0.6% -1.6% 2009 2010 2011 2012 2009 2010 2011 2012 Forecast Forecast Real GDP growth Consumer Price Index (CPI) 35 35
Slide 37: Malaysia: Sustained growth for 2012
Malaysia: Sustained growth for 2012 Ringgit/USD: Forecast OPR to remain unchanged RM2 95 by end 2012 RM2.95 at 3% until end of 2012 2.90 4.5 4% OPR 4.0 3.10 SRR 3.5 3 30 3.30 3.0 2.5 3% 3.50 2.0 3.70 15 1.5 1.0 3.90 0.5 Jul-09 Jul-10 Jul-11 Jan-09 Jan-10 Jan-11 Jan-12 Jul-09 Jul-10 Jul-11 Jan-09 Jan
Slide 38: Healthy Banking Sector
Healthy Banking Sector Loans expected to grow 10.5% Deposits expected grow 10.3% in 2012 from 13.6% 13 6% in 2011 in 2012 from 14.3% 14 3% in 2011 Total Loans Total Deposits Total Loans YoY Growth Total Deposits YoY Growth 25% 1,000 16% 1250 14% 20% 900 1150 12% 800 15% RM biillion RM biillion 10% 1
Slide 39: Sound Banking Sector
Sound Banking Sector Capital Adequacy expected Asset Quality: Net Impaired to remain strong at 14.7% 14 7% Loans ratio expected to for 2012 stabilise at 1.85% 16 2.5% 14.9% 15 2.3% 14 2.1% 13 1 9% 1.9% 12 1.7% 1.83% 11 1.5% n-10 p-10 Decc-10 Marr-11 n-11 p-11 Decc-11 Dec-07 Jun-08 Dec-08 Jun-09 Dec-
Slide 40: Prospects
Prospects p z Reasonable easo able business bus ess growth g owt in 2012 0 z Malaysia: Economic Transformation Program (ETP) projects and relatively low interest rates (OPR at 3% throughout 2012) in Malaysia z Indonesia: Strong domestic demand and a relatively under-penetrated banking sector. z Si S
Slide 41: Prospects
Prospects p z Regionalisation eg o al sat o initiatives: t at ves: bu building ld g a ttruly uly regional eg o al organisation and governance structure across all functions by y building g physical p y infrastructure,, such as IT,, and in delivering value in areas such investment banking, global who
Slide 42: Key Performance Indicators
Key Performance Indicators Headline KPIs Target z Return on Equity 15.6% (ROE) z Loans and Debt 15.2% Securities Growth Other KPIs z Group Loans Growth 16.2% z Malaysia 13 6% 13.6% z Singapore 11.4% z Bank Internasional Indonesia 20 9% 20.9% z Group Deposits Growth 11.6% 41 41
Slide 43: Thank you for your trust in us
Thank you for your trust in us Total Assets RM451 billion 52Years Profit After Tax RM2 6 billion (6 months) RM2.6 of Growth Human Capital 45 000 Maybankers 45,000 Worldwide Global Network 2 200 Offices 2,200 in 17 Countries Customers 22 million Customers Shareholders 60 000 Shareholders 60,000 Publi
Malayan Banking Berhad (Maybank) — Shareholder Meeting (March 2012) on 6ix