Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — Q1 FY2024 Earnings Presentation

48 slides from Malayan Banking Bhd's earnings presentation, May 24, 2024

  1. Slide 1: Investor Presentation: Financial Results First Quarter FY2024

    Disclaimer: The contents of this document/information remain the intellectual property of Maybank and no part of this is to be reproduced or transmitted in any form or by any means, including electronically, photocopying, recording or in any information storage and retrieval system without the permi

  2. Slide 2: Table of Contents

    Table of Contents Executive Summary 2-9 1Q FY2024 Financial Performance 11-17 Appendix: 1. Group Performance 19-36 2. Business/Country Performance 38-46

  3. Slide 3: 1Q FY2024: Net Profit Rose 9.8% YoY to RM2.49 billion

    1Q FY2024: Net Profit Rose 9.8% YoY to RM2.49 billion on Net Operating Income Growth of 19.8% to RM7.58 billion Income growth driven by core fees increase of 17.3% as well as gains in treasury and markets 1Q FY2024 vs 1Q FY2023 Net Operating Net Interest Cost Cost-to- Pre-Provisioning Net Credit Net

  4. Slide 4: Strong Loans Growth Supported by Good Deposit Growth

    1Q FY2024: Strong Loans Growth Supported by Good Deposit Growth Strong loans growth of 11.2% driven Good deposit growth of 8.9% by growth across all home markets supported by CASA increase of 4.3% Healthy LLC and GIL Ratios 31 Mar 2024 vs 31 Mar 2023 31 Mar 2024 vs 31 Mar 2023 As at 31 Mar 2024 Grou

  5. Slide 5: Set to Exceed FY2025 Sustainability Commitment Targets This Year

    Set to Exceed FY2025 Sustainability Commitment Targets This Year While Demonstrating Leadership in Regional Decarbonisation Journey Leading The Decarbonisation Transition Journey Industry-Wide Sustainable Finance 1Q’24 Achievement: RM5.86 bil Maybank appointed as Steering Group Leading JC3 Transitio

  6. Slide 6: M25+ Continues To Make Good Progress Across All Customer Segments

    1Q FY2024: M25+ Continues To Make Good Progress Across All Customer Segments Progress (1Q’23 vs 1Q’24): SP1 Focus Area: MY mid-market growth Supercharge Global Growth in total deals pipeline since May’23 with a dedicated team Total M25+ Committed • Higher revenue for ~300% focused on mid market segm

  7. Slide 7: M25+ Continues To Make Good Progress Across All Customer Segments

    1Q FY2024: M25+ Continues To Make Good Progress Across All Customer Segments Focus Area: Progress (Mar’23 vs Mar’24): SP5 & SP7 • Stronger traction from Islamic wealth beyond +77% GIWM fee income growth from RM36.16 mil to RM64.11 mil Build Global banking propositions (Shariah wealth advisory, Islam

  8. Slide 8: M25+ Progress Across All Sectors In Our Home Markets

    1Q FY2024: M25+ Continues To Make Good Progress Across All Sectors In Our Home Markets Focus Area: Progress (as at Mar’24): • Expand homeownership Increase in loans originated via Home2u (YTD Mar’23: RM2.9 bil vs YTD Mar’24: RM8.6 ecosystem by embedding Home2u >100% bil) Mortgage platform into partn

  9. Slide 9: 2024: Stable Economic and Loans Growth Across Home Markets

    2024: Stable Economic and Loans Growth Across Home Markets Malaysia Singapore Indonesia 2024 Forecast (f) Previous (f) Current (f) (f) Change 2024 Forecast (f) Previous (f) Current (f) (f) Change 2024 Forecast (f) Previous (f) Current (f) (f) Change GDP 4.4% 4.7%  GDP 2.2% 2.4%  GDP 5.1% 5.1% - Sy

  10. Slide 10: FY2024: Focus on Revenue Uplift and AQ Preservation

    FY2024: Focus on Revenue Uplift and AQ Preservation; Drive Stronger M25+ Momentum Leveraging Targeted Investments • Focus on growth opportunities across Group CFS, Group GB and Group Insurance & Takaful within the ASEAN franchise: o Double down on mortgage, RSME and SME+ portfolios across universal

  11. Slide 11: Table of Contents

    Table of Contents Executive Summary 2-9 1Q FY2024 Financial Performance 11-17 Appendix: 1. Group Performance 19-36 2. Business/Country Performance 38-46

  12. Slide 12: Net Fund Based Income Improved to RM4.84 billion

    Net Fund Based Income Improved to RM4.84 billion from RM4.80 billion; Strong Group Loans Growth of 11.2% NIM and Net Fund Based Income Key Drivers • Group loans grew 11.2% YoY led by: NIM o 13.6% in IDN 2.19% 2.06% (Ann.) 2.00% o 12.2% in SG Loans growth o 8.2% in MY o Segments across markets includ

  13. Slide 13: Higher NOII of RM2.74 billion Driven by Core Fees and Trading Income

    Higher NOII of RM2.74 billion driven by Improved Core Fees and Better Investment & Trading Income Non-Interest Income Key Drivers • Core fees increased by 17.3% YoY, driven by higher wealth fee, cards and  29.6%  79.2% 1Q’24 vs 4Q’23 1Q’24 vs 1Q’23 advisory fees % change 1Q FY2024 (QoQ) 1Q FY2024

  14. Slide 14: Group Insurance & Takaful PBT Rose 52.5%

    Overall Group Insurance & Takaful Profit Before Tax (PBT) Rose 52.5% Key Drivers Group Insurance & Takaful • 1QFY2024 PBT increased by 52.5% YoY, mainly driven by better underwriting income and higher investment income: PBT (RM billion)  52.5% o Underwriting income - Improved business growth from b

  15. Slide 15: Cost Increase on Higher Personnel, IT Expenses and Revenue-related Fees

    Cost Increase on Higher Personnel, IT Expenses and Revenue-related Fees CIR and Costs Key Drivers 51.9% 48.3% 48.3% • Cost increase of 19.8% YoY due to: o 21.3% increase in personnel costs and provisions for unionised  1.1%  19.8% staff 1Q’24 vs 4Q’23 1Q’24 vs 1Q’23 o 14.1% increase in establishme

  16. Slide 16: Healthy Liquidity Levels

    Healthy Liquidity Levels Liquidity Indicators Key Drivers LCR LDR NSFR Liquidity Position • Healthy Group liquidity ratios with optimal LCR level 145.8% 142.1% 127.2% 118.1% 122.0% 118.4% • Group deposits grew 8.9% YoY as: 91.7% 92.6% 90.7% o IDN grew 13.1% (FD:+18.6% and CASA: +8.0%) o SG grew 9.8%

  17. Slide 17: Improving Group GIL ratio; Management Overlay Maintained

    Improving Group GIL ratio; Management Overlay Maintained Loan ECL, NCC, and LLC Gross Impaired Loans (GIL) Mar 2023 Dec 2023 Mar 2024 P&L ECL  +0.8%  +29.9% (RM billion) 1Q’24 vs 4Q’23 1Q’24 vs 1Q’23 % RM billion % RM billion % RM billion Non Performing Loans 1.25% 7.39 1.00% 6.41 1.07% 7.01 (NPL)

  18. Slide 18: Robust Capital Positions

    Robust Capital Positions Capital Ratios Key Drivers After proposed dividend • Capital ratios remain robust with Group CET1 capital ratio at 14.87% and Group total capital ratio at 18.21%, well above regulatory 18.56% 18.21% requirements Group 16.00% 15.50% • Credit RWA growth of 10.3% YoY was below

  19. Slide 19: Table of Contents

    Table of Contents Executive Summary 2-9 1Q FY2024 Financial Performance 11-17 Appendix: 1. Group Performance 19-36 2. Business/Country Performance 38-46

  20. Slide 20: P&L Summary: 1Q FY2024 (YoY)

    P&L Summary: 1Q FY2024 (YoY) 1Q 1Q 4Q RM million YoY QoQ FY2024 FY2023 FY2023 Net fund based income * 4,839.8 4,796.7 0.9% 4,865.3 (0.5)% Non-interest income * 2,737.5 1,527.6 79.2% 2,111.6 29.6% Net operating income 7,577.3 6,324.3 19.8% 6,976.9 8.6% Overhead expenses (3,657.5) (3,052.2) 19.8% (3,6

  21. Slide 21: Segmental Performance of Businesses: 1Q FY2024 (1/2)

    Segmental Performance of Businesses: 1Q FY2024 (1/2) Net Operating Income Group Global Banking  +26.1% 1Q FY2023 1Q FY2024  +19.8% 1Q FY2023: 2,107 1Q FY2024: 2,657 7,577 6,324  +12.4%  +25.1%  +34.2%  +3.6%  +61.7% 4,415 3,929 RM million 2,237 1,788 294 395 263 426 24 25 Total Group Communit

  22. Slide 22: Segmental Performance of Businesses: 1Q FY2024 (2/2)

    Segmental Performance of Businesses: 1Q FY2024 (2/2) Net Fund Based Income 1Q FY2023 1Q FY2024 Group Global Banking  (1.9)% 1Q FY2023: 1,317 1Q FY2024: 1,292  +0.9%  +9.6%  (4.4)%  +5.0%  +38.8% RM million  +1.4% 4,797 4,840 3,065 3,358 1,239 1,185 431 77 106 1 1 411 Total Group Community Gro

  23. Slide 23: Group Non-Interest Income: 1Q FY2024

    Group Non-Interest Income: 1Q FY2024 1Q 1Q 4Q NOII (RM million) YoY QoQ FY2024 FY2023 FY2023 Commission, service charges and fees 1,086 926  17.3% 1,110  (2.1)% Commission 385 341  12.9% 358  7.3% Service charges and fees 544 432  25.9% 621  (12.3)% Underwriting fees 24 26  (8.8)% 11  >100%

  24. Slide 24: International & Malaysia Portfolio Mix 1Q FY2024

    International & Malaysia Portfolio Mix 1Q FY2024 Net Operating Income Profit Before Tax Gross Loans* 5.5% 1Q FY2024 6.0% 7.5% 0.9% (Jan 24 – Mar 24) 8.9% 5.7% 24.6% Overseas: RM7.58 Overseas: RM3.44 Overseas: RM657.8 34.2% 19.3% 40.2% 27.0% billion 31.0% billion billion 59.8% 65.8% 69.0% Malaysia Si

  25. Slide 25: Group Gross Loans Growth: March 2024

    Group Gross Loans Growth: 31 March 2024 % of 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Portfolio Group Gross Loans 657.8 640.8  2.7%  10.7% 591.7  11.2% Malaysia (RM billion) 60% 393.6 387.2  1.7%  6.6% 363.7  8.2% Community Financial Services 77% 303.8 298.3  1.8%  7.4% 279

  26. Slide 26: Malaysia Loans Growth: March 2024

    Malaysia Loans Growth: 31 March 2024 RM billion % of Portfolio 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Community Financial Services (reported) 77% 303.8 298.3  1.8%  7.4% 279.7  8.6% Community Financial Services (rebased) 77% 303.8 298.2  1.9%  7.4% 279.7  8.6% Consumer 61%

  27. Slide 27: Singapore Loans Growth: March 2024

    Singapore Loans Growth: 31 March 2024 SGD billion % of Portfolio 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Community Financial Services 51% 25.3 25.1  1.1%  4.4% 24.3  4.1% Consumer 36% 17.4 17.3  1.1%  4.3% 17.6  (0.8)% Housing Loan 25% 12.2 12.0  1.6%  6.5% 12.4  (0.9)% A

  28. Slide 28: Indonesia Loans Growth: March 2024

    Indonesia Loans Growth: 31 March 2024 (Based on MBI’s reporting) IDR trillion % of Portfolio 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Community Financial Services 62.0% 75.9 74.3  2.1%  8.5% 67.9  11.7% CFS Retail 35.9% 44.0 43.5  1.1%  4.5% 40.1  9.6% Auto Loan 19.3% 23.5 23

  29. Slide 29: Group Deposits Growth: March 2024

    Group Deposits Growth: 31 March 2024 % of Portfolio 31 Mar 2024 31 Dec 2023 QoQ YTD Annualised 31 Mar 2023 YoY Group Gross Deposits 709.0 696.8  1.7%  7.0% 651.3  8.9% Total CASA 265.4 257.3  3.1%  12.5% 254.5  4.3% Total Fixed Deposits 328.0 321.0  2.2%  8.7% 303.4  8.1% Malaysia (RM billi

  30. Slide 30: LDR and CASA Ratio

    LDR and CASA Ratio Malaysia Group LDR CASA CASA (without IA) NSFR LCR 145.8% 140.7% 142.1% 137.4% 127.2% 91.7% 118.1% 117.6% 122.0% 89.9% 90.0% 89.3% 116.8% 87.6% 118.4% 92.3% 93.0% 91.7% 92.6% 90.7% 44.1% 43.8% 45.4% 39.1% 37.3% 42.7% 43.5% 37.7% 38.6% 36.9% 35.6% 34.2% 35.3% 33.7% 38.7% 38.3% 40.2

  31. Slide 31: RWA Optimisation and Funding Management

    RWA Optimisation and Funding Management Group Gross Loans & Group RWA Funding Breakdown Operational RWA Market RWA Credit RWA Gross Loans Borrowings and Capital 657.8 Instruments by Currency 640.8 FI Deposits, 6% 591.7 456.0* Equity, 10% 440.9* USD, 36% IDR, 5% 412.3 51.0 50.3 Repo, 4% SGD, 2% 47.2

  32. Slide 32: Asset Quality

    Asset Quality Allowances for losses on loans GIL Ratio Composition P&L ECL Mar Jun Sep Dec Mar 1Q FY2023 2Q FY2023 3Q FY2023 4Q FY2023 1Q FY2024 (RM million) 2023 2023 2023 2023 2024 Stage 1, net (87) (73) (66) 59 72 Non Performing Loans 1.25% 1.15% 1.06% 1.00% 1.07% (NPL) Stage 2, net 407 132 (68)

  33. Slide 33: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Consumer GIL Ratios Mortgage Auto Finance Credit Cards 1.02% 0.99% 0.92% 5.58% 5.41% 5.30% 0.88% 0.82% 5.05% 4.99% 1.49% 0.63% 1.32% 0.51% 1.22% 1.09% 1.14% 0.44% 0.47% 1.29% 0.52% 0.52% 0.58% 0.36% 1.24% 1.17% 0.51% 0.51% 1.02% 1.01% 0.64% 0.65% 0.5

  34. Slide 34: Specific Asset Exposures as at 31 March 2024

    Specific Asset Exposures as at 31 March 2024 Oil & Gas Loan and Fixed Income Securities Exposures Real Estate Loan Exposure to Non-Retail Borrowers to Non-Retail Malaysian Borrowers Country Exposure Borrowers’ Status 22.7% High Rise Residential RM27.9 billion 17.3% Landed Residential Malaysia 2.09%

  35. Slide 35: Overall Business and Financial Impact From Basel III Reform

    Overall Business and Financial Impact From Basel III Reform Implementation Approach and Impact: Business Perspective • May have impact on pricing and business product strategies, especially arising • Basel III Reform encompasses changes to credit, market, from capital floor requirement, CVA and Mark

  36. Slide 36: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million 1Q FY2024 1Q FY2023 YoY 4Q FY2023 QoQ Net interest income 431.3 410.7  5.0% 436.4  (1.2)% Insurance/takaful service result 128.0 (69.4)  (>100)% 207.1  (38.2)% Other operating income 584.1 328.7  77.7% 224.3  >100% Total operating

  37. Slide 37: Key Operating Ratios

    Key Operating Ratios % 1Q FY2024 1Q FY2023 YoY 4Q FY2023 QoQ 3 Return on Equity 10.8 10.8 0.0% 11.0 (0.2)% 3 Net Interest Margin (bps) 2.00 2.19 (19) bps 2.06 (6) bps Fee to Income Ratio 36.1 24.2 11.9% 30.3 5.8% Loans-to-Deposit Ratio 1 92.6 90.7 1.9% 91.7 0.9% Cost to Income Ratio 48.3 48.3 0.0% 5

  38. Slide 38: Table of Contents

    Table of Contents Executive Summary 2-9 1Q FY2024 Financial Performance 11-17 Appendix: 1. Group Performance 19-36 2. Business/Country Performance 38-46

  39. Slide 39: Market Share Overview for Community Financial Services Malaysia

    Market Share Overview for Community Financial Services Malaysia Market share Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Loans Total consumer 18.7% 18.6% 18.7% 18.9% 19.0% Auto (Retail Hire Purchase) 30.2% 30.2% 30.1% 30.1% 29.8% Total mortgage * 14.8% 14.9% 15.1% 15.3% 15.5% Credit cards ** 21.0% 21.2% 21.6

  40. Slide 40: Leadership in Mobile & Internet Banking with Digital Payments Growth

    We maintained our leadership position in Mobile & Internet Banking with strong growth in digital payments As at Mar’ 24 As at Mar’ 24 As at end- Mar’ 24 in Malaysia SME Digital Financing approved loans since Mobile Banking Internet Banking RM4.04 bil its launch in Sep’20 3-month Active Users Market

  41. Slide 41: Overview: Group Wealth Management & Group Securities Portfolios

    Overview: Group Wealth Management & Group Securities Portfolios Group Wealth Management Group Securities Portfolio Total Financial Assets grew 10.3% YoY to RM480.0 billion contributed by Group Securities Portfolio¹ grew 12.7% YoY investments growth of 15.7% and loans growth of 12.6%  +12.7% YoY  +

  42. Slide 42: Overview of Group Investment Banking Portfolio

    Overview of Group Investment Banking1 Portfolio 1Q 2024 Total Income Breakdown by Country 1Q 2024 Non-Interest Income for Malaysia Arranger and upfront fees Hong Kong Vietnam 21.0% Phillipines 2.0% 8.6% 0.6% Others 11.1% Indonesia 6.8% Underwriting commission Malaysia 0.1% 42.6% Placement and relate

  43. Slide 43: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance1 Maybank Islamic: Total Gross Financing2 grew to RM272.9 billion +18.3% Mar-23 Mar-24 RM million 1Q FY2024 1Q FY2023 YoY +7.9% +3.4% Total Income 2,104.3 1,778.6 18.3% 89.9 51.6 76.0 +11.8% Profit Before Tax 819.3

  44. Slide 44: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share1 Market Share by Key Products (Malaysia)1 30.0% 30.1% 29.5% 29.4% 29.3% 46.3% 26.9% 28.1% Automobile Home Term Financing Financing Financing 27.1% 27.0% Mar-24 Mar-24 Mar-24 26.7% 26.1% 26.0% Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23: 48.1%

  45. Slide 45: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Life Insurance & Family Takaful (New Business) Market Net Adjusted Premium/Contribution Share (Malaysia) Single Premium  >100% 19.4% 20.0% 18.5% 19.2% Regular Premium  30.0% Credit Premium  49.2% 18.3% 15.5% 17.6% 18.5% No. 3 11.0% 12.2% 12.5% 12.1% in

  46. Slide 46: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 1Q FY2024 1Q FY2023 YoY 4Q FY2023 QoQ Net fund based income 160.80 204.14 (21.2)% 179.02 (10.2)% Non-interest income 143.62 69.83 >100% 86.17 66.7% Net income 304.42 273.97 11.1% 265.19 14.8% Overhead expenses (141.85) (124.95) 13.5% (155.93) (9.0)% Operati

  47. Slide 47: Maybank Indonesia: P&L Summary and Financial Ratios

    Maybank Indonesia: P&L Summary and Financial Ratios 1Q 1Q 4Q IDR billion YoY QoQ Key Operating Ratios Mar 24 Dec 23 Mar 23 YoY FY2024 FY2023 FY2023 Net Fund Based income 1,753 1,807 (3.0)% 1,825 (4.0)% Profitability & Efficiency Non-Interest income 370 574 (35.5)% 604 (38.7)% ROA (0.60)% 1.41% 1.86%

  48. Slide 48: Malayan Banking Berhad Contact Details and Disclaimer

    MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the in

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