Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — H1 2024 Earnings Presentation
39 slides from Ammb Holdings Bhd's earnings presentation, Nov 22, 2023
Slide 1: H1FY2024 Results Investor Presentation
H1FY2024 RESULTS (30 SEPTEMBER 2023) INVESTOR PRESENTATION 22 NOVEMBER 2023
Slide 2: GCEO Presentation
GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 H1FY24 Financial snapshot 4 Retail PHRA 5 Loans by stages 6 Outlook for CY2024
Slide 3: H1FY24 Financial Snapshot (Reported)
Financial Snapshot (Reported) H1FY24 Financial snapshot Stronger Q2 PATMI; Positive operating leverage; Strengthening H1FY24 Reported Financials Variance CET1; Interim dividend of 6.0 sen • NoII grew 24% from higher fees, trading gains and investment income 2,326 Income ≈ • Partially offset by 7% re
Slide 4: Retail Banking (RB) PHRA loans
Payment Holiday and Repayment Assistance (PHRA) loans under 6 or 12 months observation period Retail Banking (RB) PHRA loans Total Retail Banking loans and PHRA by staging (RM’ bil) A) Mortgage loans and PHRA by staging (RM’ bil) Of which, PHRA balance1 Of which, PHRA balance1 73.3 74.0 46.0 46.9 1.
Slide 5: Loans by stages
Loans (Reported) Loans by stages Loans by ECL Stages (RM’ bil) Breakdown by Business Segments1 (%) Stage 1 Stage 1 Stage 2 Stage 3 91.5% 91.5% 130.2 129.0 130.8 RB 88.9% 124.4 126.3 120.1 1.5% 1.7% 1.7% BB 1.5% 1.6% 9.7% 9.9% WB 88.6% 1.6% 9.9% 87.0% 11.0% 10.2% 11.9% 87.2% Q1FY23 Q2FY23 Q3FY23 Q4FY
Slide 6: Outlook for CY2024
Market Outlook Outlook for CY2024 GDP Growth 4.0% to 5.0% Inflation 2.5% to 3.5% Malaysia Unemployment Rate 3.4% USD/MYR Outlook 4.40 to 4.50 Loans Growth 4.0% to 5.0% Asset Quality Stable Banking OPR 3.00% Sector Liquid & Capital Positions Resilient CY = Calendar Year 6 H1FY24 Results – Investor Pr
Slide 7: GCFO Presentation: Financial Overview
GCFO PRESENTATION Jamie Ling 7 - 23 Financial Overview
Slide 8: Q2FY24 Financial overview
Financial Overview Q2FY24 Financial overview 1 Capital, Liquidity and Funding • Declared interim dividend of 6.0 sen per share, interim dividend payout ratio of 23% • CET1 at 12.91%, TCR at 16.56%. Without TA, CET1 at 12.66%, TCR at 16.38% • Highly liquid (FHC LCR of 162.5%, LDR 96.7%) 2 Q2FY24 Repo
Slide 9: H1FY24 Performance summary – P&L
Financial Overview (Reported) H1FY24 Performance summary – P&L P&L (RM’ mil) Q1FY24 Q2FY24 QoQ Change H1FY231 H1FY24 YoY Change Total Income 1,202 1,124 (7%) 2,329 2,326 ≈ - NII 809 846 5% 1,787 1,654 (7%) - NOII 393 278 (29%) 542 671 24% MFRS 17 restatement impact - - (17) - Expenses (508
Slide 10: H1FY24 Performance summary – Balance Sheet
Financial Overview (Reported) H1FY24 Performance summary – Balance Sheet Balance Sheet (RM’ bil) Q1FY24 Q2FY24 QoQ Change FY23 H1FY24 YTD Change Gross Loans 129.0 130.8 1% 130.2 130.8 ≈ GIL 1.66% 1.65% (0.01%) 1.46% 1.65% 0.20% LLC (include Reg Reserves) 115.6% 109.2% (6.4%) 127.7% 109.2%
Slide 11: P&L walk
Group P&L P&L walk YoY Growth (5%) 36% 3% 6% 2% 32% (3%) (3%) (3%) >100% 1% Positive growth in H1FY24 Contraction in H1FY24 Continuing Total Tax and Cont’d Discont’d Reported NII NOII Expenses PBP Impairment PBT Operations Income Zakat PATMI PATMI PATMI H1FY24 1,654 620 2,274 (
Slide 12: Stable income growth YoY
Income Stable income growth YoY Business Segments Q1FY24 Q2FY24 QoQ Change H1FY231 H1FY24 YoY Change (RM’ mil) Wholesale Banking 334 247 (26%) 546 580 6% Investment Banking 91 82 (10%) 149 173 16% Retail Banking 465 495 6% 926 960 4% Business Banking 269 286 6% 500 555 11% Group Fund
Slide 13: NIM compression moderating
NIM NIM compression moderating YoY NIM H1FY24: Net Interest Margin (NIM) Movement (QoQ) Reported: 1.79% ( (38bps) ) H1FY23: Reported: 2.17% Divisions Funding + Deposits Reported: 6bps bps 0.9 6.1 0.7 1.5 (1.6) (0.1) 182 (0.6) 176 Q1FY24 Retail Wholesale Banking Investment Banking Business Asset
Slide 14: Strong Treasury & Markets, Investment Banking and Insurance performance
NoII Strong Treasury & Markets, Investment Banking and Insurance performance Composition 1% 4% 22% 21% 8% 4% 10% 13% 5% 6% 4% 2% 100% YoY Growth (47%) 6% >100% 15% 10% (6%) 17% 12% 85% 5% >100% 69% 36% (41%) 24% Positive growth in H1FY24 Contraction in H1FY24 H1FY23 NoI
Slide 15: Positive JAWs, Reported CTI 43.0%
Expenses Positive JAWs, Reported CTI 43.0% Business Segments Q1FY24 Q2FY24 QoQ Change H1FY23 H1FY24 YoY Change (RM’ mil) Wholesale Banking 75 78 4% 138 154 11% Investment Banking 52 55 5% 98 108 10% Retail Banking 274 272 (1%) 508 546 7% Business Banking 81 90 11% 154 171 11% Group F
Slide 16: Positive operating leverage
PBP & PAT Positive operating leverage Business Segments Q1FY24 Q2FY24 QoQ Change H1FY231 H1FY24 YoY Change (RM’ mil) Wholesale Banking 259 168 (35%) 408 427 5% Investment Banking 38 27 (30%) 51 65 27% Retail Banking 191 223 17% 417 414 (1%) Business Banking 188 196 4% 346 384 11% Gro
Slide 17: Flat loans growth
Loans Flat loans growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: ROA: RoTA: Fixed rate – 21% Islamic – 35% Retail – 55% 0.89% 0.89% Variable rate –79% Conventional – 65% Non-retail – 45% YTD Growth (7%) 1% 3% 5% 5%
Slide 18: Higher impairment charges in BB and RB
Asset Quality Higher impairment charges in BB and RB Overlay: Q1FY24: (99.6) Net Impairment (YoY Movement) (RM’mil) Q2FY24: (47.5) Positive P&L impact in H1FY24 Negative P&L impact in H1FY24 Gross Impaired Loans (RM’mil) and Loan Loss Coverage (LLC) Ratios Credit Cost and New Impaired Loans Formatio
Slide 19: Vigilant monitoring of sector exposures
Asset Quality Vigilant monitoring of sector exposures Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’23 Jun’23 Sep’23 YTD QoQ Sector Composition Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil RM’ mil
Slide 20: Highly liquid
Deposits Highly liquid Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry H1FY24 135.3 4% 1%1 H1FY24 43.5 (11%) 1%1 FY23 130.3 6% 5%2 FY23 48.8 13% (2%)2 FY22 122.6 2% 5%2 FY22 43.1 21% 6%2 Non
Slide 21: Stronger capital position, interim dividend payout ratio of 23%
Capital Stronger capital position, interim dividend payout ratio of 23% RWA/Total Assets FHC Capital Adequacy Ratios2 RM’ bil CET 1 / Tier 1 Total CAR Total Assets RWA/Total Assets Peers 1 66.7% 67.4% 16.38% 16.56% 62.7% 63.6% 15.80% 15.18% 15.47% 15.32% 15.65% 14.14% 14.48% 58.1% 56.8% 54.9% 55.2%
Slide 22: H1FY24 Summary
Summary H1FY24 Summary SOLID OPERATING CREDIT PROFILE PROJECTS FOUNDATION LEVERAGE • Improved capital • Partial NPL write- • Reviewing • FIRB ratios, AMMB Group offs against existing capitalised software rating upgraded overlays and and technology assessing additional assets as part of the • Divestm
Slide 23: Appendix: P&L – Continuing & Discontinued Operations
Appendix Appendix: P&L – Continuing & Discontinued Operations Financial Effects post Disposal (Year-on-Year) H1FY23 H1FY24 YoY Movement Reported Cont’d Ops Discont’d Op Reported Cont’d Ops Discont’d Op Continuing Discontinued RM’mil Reported (A) + (B) (A) (B) (A) + (B) (A) (B) Operations Operation I
Slide 24: Thank You
THANK YOU
Slide 25: Reported yearly performance
H1FY24 Results (Reported) Reported yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%)1 Total Income (RM’ mil) and Non-interest Income (%)1 Total Income: PATMI: ROE: CAGR FY21-FY23: 1.7% YoY Growth 1.3% YoY Growth (0.6%) YoY Growth ≈ Total Income Non-Interest Income % 9.3% 9.8% 9.9% 9.3% 36
Slide 26: (Impairments) / Recoveries
Asset Quality (Impairments) / Recoveries Net (Impairments) / Recoveries and GIL Ratio Total impairments by category (RM’ mil) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 QoQ Change H1FY23 H1FY24 YoY Change ECL Stage 1 & 2 / CP – Non defaulted1 6 19 (55) 17 (31) 98 >100% 24 67 >100% ECL Stage 3 / C
Slide 27: Divisional Performance
Divisional Performance
Slide 28: Wholesale Banking
Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth: (21%) YoY Growth: 18% Total Income 6% FY23: 671 H1FY24: 425 RM580 mil 27% 237 209 188 168 152 142 Transaction Banking 19% Corporate 16% Transaction Banking Banking
Slide 29: Wholesale Banking Income Statement
Wholesale Banking Wholesale Banking Income Statement YoY Growth (8%) 70% 6% 11% 5% >100% 19% 22% 18% Net Interest Non-Interest RM' mil Total Income Expenses PBP Recoveries PBT Tax Expenses PAT Income Income H1FY24 412 168 580 (154) 427 124 550 (125) 425 H1FY23 447 99 546 (138) 408
Slide 30: Investment Banking
Investment Banking Investment Banking League Table PAT Trend (RM’ mil) Market Share1 As At QoQ Growth: (28%) Rank2 30 September 2023 YoY Growth : 23% DCM 15.0% 4 (Overall MYR Bonds) Islamic Sukuk 12.3% 4 FY23: 91 H1FY24: 50 Unit Trust 7.5% 5 28 29 Stockbroking3 7.2% 5 23 22 21 18 M&A3 19.9%
Slide 31: Investment Banking Income Statement
Investment Banking Investment Banking Income Statement YoY Growth (4%) 20% 16% 10% 27% >100% 29% 53% 23% Net Interest Non-Interest Recoveries / RM' mil Total Income Expenses PBP PBT Tax Expenses PAT Income Income (Impairment) H1FY24 25 148 173 (108) 65 0 65 (15) 50 H1FY23 26 123 14
Slide 32: Retail Banking
Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth: >100% Total Income 4% YoY Growth : (21%) RM 960 mil >100% (44%) (9%) Others Mortgage 8% 11% Retail SME FY23: 409 8% (18%) H1FY24: 156 11% Retail SME Auto Financing
Slide 33: Cards in circulation
Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth: 35% Merchant volume (RM'mil) QoQ Growth: 6% YoY Growth: ≈ YoY Growth: 56% Merchants in force ('000) QoQ Growth: 1% YoY Growth: (1%) 35 34 34 34 34 34 FY23: 1,899 H1FY24: 1,269 730 FY23: 15,367 H1FY24: 7,844 3,
Slide 34: Retail Banking Income Statement
Retail Banking Retail Banking Income Statement YoY Growth 3% 9% 4% 7% (1%) 32% (21%) (23%) (21%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax Expenses PAT Income Income H1FY24 827 133 960 (546) 414 (210) 204 (48) 156 H1FY23 804 122 926 (508) 417 (159
Slide 35: Business Banking
Business Banking (Reported) Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth: 5% QoQ Growth: >100% Non-trade Trade YoY Growth: 9% YoY Growth: (18%) 34,512 34,972 32,142 31,998 33,220 31,483 FY23: 477 H1FY24: 204 10,163 9,265 10,127 9,452 9,615 9,298 22,031 22,527 22,701
Slide 36: Business Banking Income Statement
Business Banking Business Banking Income Statement YoY Growth 10% 15% 11% 11% 11% >100% (18%) (18%) (18%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax Expenses PAT Income Income H1FY24 423 132 555 (171) 384 (117) 267 (63) 204 H1FY23 385 114 500 (15
Slide 37: AmBank (M) entity level
AmBank (M) entity level AmBank (M) Income Statement YoY Growth (4%) 26% 2% (6%) 8% 84% ≈ 2% (1%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax Expenses PAT Income Income H1FY24 1,127 377 1,504 (637) 867 (148) 719 (166) 553 H1FY23 1,177 299 1,476 (676)
Slide 38: AmBank Islamic entity level
AmBank Islamic entity level AmBank Islamic Income Statement YoY Growth (6%) 48% (2%) 49% (21%) (25%) (20%) (20%) (20%) Net Financing Non-Financing RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ Income Income H1FY24 509 70 579 (239) 340 (55) 285 (65) 219 H1FY23 54
Slide 39: 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 growth refers to Q2FY24 vs Q1FY24 YoY gr