Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — H1FY2022 Earnings Presentation
44 slides from Ammb Holdings Bhd's earnings presentation, Nov 26, 2021
Slide 1: H1FY2022 Results Investor Presentation
H1FY2022 RESULTS INVESTOR PRESENTATION 26 NOVEMBER 2021
Slide 2: GCEO Presentation
GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 H1FY22 Financial snapshot 4 Repayment assistance 5 Loans by stages 6 Outlook for 2021
Slide 3: H1FY22 Financial snapshot
Financial Snapshot H1FY22 Financial snapshot H1FY22 Financials Making good progress, strong PBP growth with PHRA impairment charges moderating 2,359 • Banking business revenue grew 11%, offset by weaker insurance Income 5% H1FY21: 2,247 business revenue 1,008 Expenses 5% • Driving cost efficienc
Slide 4: Repayment assistance overview
Repayment Assistance Repayment assistance overview Repayment assistance by type of borrowers SME: Repayment assistance by MIA status MIA 1 MIA 2 MIA ≥3 Retail SME Corporate 0.17 bil 0.13 bil 0.05 bil 32% of total 2% 1% 0% gross loans 29% of total gross loans 36.5 bil 33.7 bil 4.3 bil 2.6 bil 1 18% o
Slide 5: Loans by stages
Loans Loans by stages Loans by ECL Stages (RM’ bil) Breakdown by Business Segments (%) Stage 1 BNM 6-month Stage 1 Stage 2 Stage 3 blanket loan Targeted Repayment Assistance PEMULIH WB moratorium 107.4 110.6 111.9 114.8 115.6 115.6 RB 2% 2% 2% 2% 2% 1% BB 84% 12% 12% 13% 13% 13% 15% 83% 82% Q1FY21 Q
Slide 6: Outlook for 2021
Market Outlook Outlook for 2021 GDP Growth Export growth 3.5% to 4.0% 22.0% to 23.0% MALAYSIA Inflation USD/MYR outlook 2.6% to 2.8% 4.15 to 4.20 Loans growth OPR 3.0% to 4.0% 1.75% BANKING SECTOR Asset Quality Liquidity & capital positions Stable Resilient 6 H1FY22 Results – Investor Presentation
Slide 7: GCFO Presentation – Financial Overview
GCFO PRESENTATION Jamie Ling 8 - 24 Financial Overview
Slide 8: Q2FY22 Financial overview
Financial Overview Q2FY22 Financial overview 1 Capital, Liquidity and Funding • CET1 at 12.7%, adequate loss absorption capacity. CET1 at 11.6% (without Transitional Arrangements) • Highly liquid (FHC LCR of 180.9%, LDR 99.7%) 2 Q2FY22 Results (QoQ) • Income down 9% to RM1,121mil - Reported NII of R
Slide 9: H1FY22 Performance summary – P&L
Financial Overview H1FY22 Performance summary – P&L P&L Q1FY22 Q2FY22 QoQ Change H1FY21 H1FY22 YoY Change (RM’ mil) Total Income 1,238 1,121 9% 2,247 2,359 5% Expenses 495 514 4% 1,062 1,008 5% PBP 743 607 18% 1,185 1,351 14% Net Impairment 203 174 14% 382 377 1% PATMI 387 321 17%
Slide 10: H1FY22 Performance summary – balance sheet
Financial Overview H1FY22 Performance summary – balance sheet Balance Sheet Q1FY22 Q2FY22 QoQ Change FY21 H1FY22 YTD Change (RM’ bil) Gross Loans 115.6 115.6 ≈ 114.8 115.6 1% GIL 1.56% 1.44% 12bps 1.54% 1.44% 10bps LLC 138.0% 159.0%1 2100bps 135.6% 159.0%1 2340bps Customer Deposits 114.1 1
Slide 11: Additional items to highlight
Underlying Additional items to highlight P&L (RM’ mil) Q1FY22 Q2FY22 QoQ Change H1FY21 H1FY22 YoY Change Income – Reported 1,238 1,121 9% 2,247 2,359 5% Net modification (loss)/ unwinding 33 34 (35) 67 Income after adjusted items 1,205 1,087 10% 2,282 2,292 Expenses – Reported 495 514 4% 1
Slide 12: YoY income growth driven by NII growth
Income YoY income growth driven by NII growth Business Segments Q1FY22 Q2FY22 QoQ Change H1FY21 H1FY22 YoY Change (RM’ mil) Wholesale Banking 342 351 3% 805 693 14% Investment Banking 100 92 8% 163 191 18% Retail Banking 424 413 2% 743 837 13% Business Banking 113 99 12% 173 212 22%
Slide 13: Improved operating leverage, CTI 42.7%
PBP & PATMI Improved operating leverage, CTI 42.7% (47.3% a year ago) Business Segments Q1FY22 Q2FY22 QoQ Change H1FY21 H1FY22 YoY Change (RM’ mil) Wholesale Banking 280 289 3% 682 570 16% Investment Banking 59 47 20% 77 106 38% Retail Banking 220 207 6% 315 426 35% Business Banking 81 6
Slide 14: P&L walk
Group P&L P&L walk NIM NoII % CTI Effective Tax Rate H1FY22 2.05% 31.4% 42.7% 21.8% H1FY21 1.76% 39.8% 47.3% 15.8% YoY Growth 12% 17% >100% 5% 5% 14% 1% 21% 67% 13% 27% 17% 163 54 5 101 19 85 152 602 708 Net Interest Non-Interest Net mod Total Tax & RM’ mil Expenses PBP Impai
Slide 15: Improved margins YoY, with QoQ margins largely stable
NIM Improved margins YoY, with QoQ margins largely stable Net Interest Margin (NIM) Movement (QoQ) YoY NIM H1FY22: Reported: 2.05% ( 29bps) Underlying: 1.96% ( 16bps) H1FY21: Reported: 1.76% Divisions Funding + Deposits Underlying: 1.80% bps Underlying: Reported: 5bps 5bps 2.6 1.5 0.2 1.3 3.0
Slide 16: Lower trading gains and insurance income, higher IB and wealth income
NoII Lower GTM trading gains and Insurance income, offset partially by higher Investment Banking and Wealth Management income YoY Growth 13% 60% 15% 6% 7% 27% 54% 18% 17% 8 3 0 3 22 11 1 112 87 893 741 Corporate & Group Investment Group Wealth Business General Life RM’ mil Transa
Slide 17: Managing cost tightly
Expenses Managing cost tightly Business Segments Q1FY22 Q2FY22 QoQ Change H1FY21 H1FY22 YoY Change (RM’ mil) Wholesale Banking 62 62 123 124 Investment Banking 41 45 10% 86 85 1% Retail Banking 204 207 1% 428 411 4% Business Banking 31 32 1% 68 63 7% Group Funding & Others 83 89 7%
Slide 18: Modest loans growth
Loans Modest loans growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers type: ROA1: RoTA1: Fixed rate – 20% Islamic – 33% Retail – 55% 0.91% 0.92% Variable rate –80% Conventional – 67% Non-retail – 45% YTD Growth 1% 4% 3% 3% 4%
Slide 19: Net impairment charges marginally lower YoY
Asset Quality Net impairment charges marginally lower YoY Net Impairment (YoY Movement) Gross Impaired Loans, GIL and LLC Ratios RM’ mil Overlay: Retail Wholesale Loan Loss Coverage 1 Q1FY22: 87.2 Business GIL Ratio Q2FY22: 67.6 114.0% 135.6% 159.0% 100.5% 93.4% 99.9% 214.8 154.9 1.70% 1.73% 1.59% 1
Slide 20: Maintaining surveillance on sector exposure
Asset Quality Maintaining surveillance on sector exposure Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’21 Sep’21 Sector Composition YTD Change 1% RM’ mil RM’ mil 17% RM’ bil Agriculture 80 11 1% 87% H1FY22 2.
Slide 21: Driving retail deposits, with improved CASA ratio
Deposits Driving retail deposits, with improved CASA ratio Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry H1FY22 115.9 4% 2%1 H1FY22 35.6 ≈ 3%1 FY21 120.5 7% 6%2 FY21 35.8 24% 21%2 FY20 113.0 6%
Slide 22: Capital build progressing well, highly liquid
Capital Capital build progressing well, highly liquid RWA/Total Assets FHC Capital Adequacy Ratios3 RM’ bil Total Assets RWA/Total Assets1 Peers 2 CET 1 / Tier 1 Total CAR 72.2% 70.3% 65.0% 64.4% 66.7% 15.4% 15.8% 15.6% 13.6% 14.5% 59.3% 58.4% 58.5% 58.1% 57.7% 11.9% 12.4% 12.7% 11.1% 11.3% 158.8 16
Slide 23: H1FY22 Summary
Summary H1FY22 Summary Moderating PHRA Economic recovery in sight provisions Easing of movement control order Watchful on oil & gas sector CTI improved further Capital build on track Stepping up investments in H2 Deferring dividends until year end 23 H1FY22 Results – Investor Presentation
Slide 24: Thank You
THANK YOU
Slide 25: Yearly performance
H1FY22 Results Yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) (LATMI) / PATMI ROE (%) PATMI: ROE: Total Income Total Income Non-interest Income % YoY Growth 17.6% YoY Growth 2.7% CAGR FY18-FY21: 4.6% 8.8% 9.0% YoY Growth 5.0% 7.0% 7.
Slide 26: Non-interest income and PATMI mix
NoII & PATMI / (LATMI) Non-interest income and (LATMI) / PATMI mix Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY) 18% 13% 49% Others 1% Corporate Banking Group 9% 60% Funding 18% & Others Group Treasury -20% Others & Market Retail Banking 37% 23% 1% 10%
Slide 27: Impairments
Asset Quality Impairments Net Impairment / (Writebacks) and GIL Ratio Total impairments by category (RM’ mil) Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 QoQ Change H1FY21 H1FY22 YoY Change ECL Stage 1 & 2 / CP – Non defaulted 31 121 454 310 122 124 2% 151 246 62% ECL Stage 3 / CP – Defaulted 89 2
Slide 28: Loans by sector vs industry
Loans Loans by sector vs industry AmBank Group (RM’ bil) Loans Composition 2% 2% 13% 1% 4% 8% 4% 5% 6% 1% 54% ≈ 100% YTD Growth 1% 10% 2% 18% 9% 4% 4% 15% 7% 21% 2% 13% 1% Sep'21 115.6 62.6 4.3 9.3 5.5 7.2 2.6 2.6 14.9 1.0 4.3 1.2 0.0 Wholesale, Finance, Mining & Electricit
Slide 29: Divisional Performance
Divisional Performance
Slide 30: Wholesale Banking
Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Total Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth: 12% YoY Growth: 29% Total Income H1FY21: 424 H1FY22: 302 RM693 mil 274 ≈ 225 150 161 Transaction 141 Banking 115 19% 11% Transaction Banking 8% Wholesale Q1FY21
Slide 31: Wholesale Banking
Wholesale Banking Wholesale Banking Income Statement YoY Growth 1% 42% 14% ≈ 16% 36% 30% 32% 29% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY22 550 143 693 124 570 185 385 83 302 H1FY21 557 248 805 123 682 136 546 123 424 H1FY2
Slide 32: Investment Banking
Investment Banking Investment Banking League Table Market Share of Value and Volume Traded on Bursa (KLSE)1 Market Share1 As At Trading Value Trading Volume Rank2 30 September 2021(%) 3.6% 3.6% 3.4% DCM (Overall MYR Bonds) 11.7% 4 3.2% 3.0% Islamic Sukuk 8.9% 4 5.0% 4.9% 4.8% 4.3% 3.9% Unit Trust
Slide 33: Investment Banking
Investment Banking Investment Banking Income Statement YoY Growth 33% 15% 18% 1% 38% >100% 46% 53% 44% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY22 29 163 191 85 106 (9) 115 25 90 H1FY21 22 141 163 86 77 (2) 79 17 62 H1FY22
Slide 34: Retail Banking
Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business (LAT) / PAT Trend (RM’ mil) QoQ Growth: 21% Total Income YoY Growth: 37% RM837 mil 4% 38% 8% Others 3% Auto Retail SME H1FY21: 217 H1FY22: 297 10% 12% 6% Wealth Others 7% 7% Auto 162 Retail SME 7% 19%
Slide 35: Retail Banking
Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth: 1% Merchant volume (RM'mil) QoQ Growth: 2% YoY Growth: 10% YoY Growth: 3% Merchants in force ('000) QoQ Growth: 2% YoY Growth: 1% H1FY21: 2,457 H1FY22: 2,372 35 35 35 35 35 35 1,853 1,689 H1FY21: 4,066 H1FY2
Slide 36: Retail Banking
Retail Banking Retail Banking Income Statement YoY Growth 15% 3% 13% 4% 35% 33% 36% 33% 37% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY22 713 124 837 411 426 38 389 92 297 H1FY21 622 121 743 428 315 28 286 69 217 H1FY22 PAT
Slide 37: Business Banking
Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) YTD Growth: 3% QoQ Growth: 64% YoY Growth: 5% Non-trade Trade 12,586 12,697 13,001 11,898 12,160 11,420 H1FY21: 74 H1FY22: 70 2,730 2,632 2,709 2,569 2,537 2,647 9,623 9,856 10,065 10,292 8,774 9,330 Q1FY21 Q2FY21 Q3FY
Slide 38: Business Banking
Business Banking Business Banking Income Statement YoY Growth 27% 7% 22% 7% 41% >100% 7% 16% 5% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY22 169 43 212 63 149 59 90 20 70 H1FY21 132 41 173 68 105 8 97 23 74 H1FY22 PAT H1FY2
Slide 39: Islamic Banking
Islamic Banking Islamic Banking Income Statement YoY Growth 20% 4% 32% 15% 56% >100% 23% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ H1FY22 506 142 364 184 180 39 141 H1FY21 423 148 275 160 115 1 114 H1FY22 PATZ H1FY21 PATZ Positive growth in H1FY22 Contraction in
Slide 40: General Insurance
General Insurance General Insurance Loss Ratio and Combined Ratio PBT and PAT (RM’ mil) Loss Ratio Combined Ratio 92% 93% 96% 92% 91% 87% YoY PBT Growth: 25% YoY PAT Growth: 27% PBT PAT 282 57% 58% 60% 56% 56% 55% 260 262 242 FY18 FY19 FY20 FY21 H1FY21 H1FY22 Gross Premium Mix and Growth (RM’ mi
Slide 41: Insurance and Group Funding & Others
Insurance & Others Insurance and Group Funding & Others Income Statement – Insurance (General, Life & Takaful) YoY Growth 21% 26% 16% >100% 17% 14% 17% RM'mil Total Income Expenses PBP Impairment PBT Tax PAT H1FY22 315 154 161 1 160 23 137 H1FY21 401 208 193 (1) 193 27 166 Income State
Slide 42: Shareholding structure AMMB Holdings Berhad
Corporate Structure Shareholding structure 21.6%1 AmCorp 11.8% EPF 9.7% PNB 8.8%2 Others 48.1% As at 30 September 2021 AMMB Holdings Berhad Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful 100% AMAB Holdings Sdn Bhd 100% AmBank (M) Berhad 51% AmGeneral Hold
Slide 43: Credit ratings, target price and recommendations
Ratings & Target Price Credit ratings, target price and recommendations Credit Ratings H1FY22 Ratings AMMB AmBank (M) AmBank Islamic AmInvestment RAM LT: AA3, ST: P1 LT: AA3, ST: P1 LT: AA3, ST: P1 LT: AA3, ST: P1 Outlook: Stable Outlook: Stable Outlook: Stable Outlook: Stable S&P LT: BBB+, ST: A-2
Slide 44: 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 Q2FY22 vs Q1FY22 YoY gr
AMMB Holdings Berhad — H1FY2022 Earnings Presentation on 6ix