Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — 9M FY2018 Earnings Presentation

46 slides from Malayan Banking Bhd's earnings presentation, Nov 29, 2018

  1. Slide 1: Investor Presentation: Financial Results 3Q FY2018 and 9M FY2018

    Humanising Financial Services Investor Presentation Financial Results 3Q FY2018 and 9M FY2018 ended 30 September 2018 29 November 2018 www.maybank.com 0

  2. Slide 2: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 1 Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  3. Slide 3: Overview: Macroeconomic developments in 2018 and impact to Maybank Group

    Overview Macroeconomic developments in 2018 and impact to Maybank Group Initial FY2018 Macroeconomic Current Impact to Maybank Group Guidance events of 2018 Outcome • General  NIM compression due to liquidity buffer As a result, we Election in increase ahead of GE in 1H FY2018 updated our FY2018 Ex

  4. Slide 4: Maybank Group 9M FY2018 Overview

    Maybank Group 9M FY2018 Overview Net profit growth of 7.4% YoY to RM5.79 billion supported by rise in PPOP and lower net impairment losses 1 • Net operating income supported by net fund based income growth of 1.6% YoY but mitigated by lower investment and trading income Net Profit improved • Lower o

  5. Slide 5: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 4 Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  6. Slide 6: P&L Summary: 9M FY2018

    P&L Summary: 9M FY2018 PPOP up by 4.6% YoY to RM9.18 billion More 9M 9M 3Q 2Q 3Q details RM million YoY QoQ YoY on FY2018 FY2017 FY2018 FY2018 FY2017 s.20 Net fund based income * 12,661.3 12,466.4 1.6% 4,268.2 4,155.2 2.7% 4,205.1 1.5% s.8/ 20/22 Net fee based income * 4,667.5 4,724.8 (1.2)% 1,425.6

  7. Slide 7: Net Fund Based Income: 9M FY2018 YoY Trends (1/2)

    Net Fund Based Income: 9M FY2018 YoY Trends (1/2) Continued loans growth in retail franchise and corporate segment across home markets Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  4.5% (Reported)  4.9%  7.1%  8.9%  6.4% (Normalised) SGD billi

  8. Slide 8: Net Fund Based Income: 9M FY2018 (2/2)

    Net Fund Based Income: 9M FY2018 (2/2) Contained YTD NIM compression in spite of liquidity drive in 1H FY2018 Net Interest Margin (%) 5 Year Trend 2.36 2.32 2.31 2.31 2.27 FY2014 FY2015 FY2016 FY2017 9M FY2018 7

  9. Slide 9: Net Fee Based Income: 9M FY2018

    Net Fee Based Income: 9M FY2018 Net earned insurance premiums continues growth momentum, despite lower overall net fee based income RM million 9M FY2017 9M FY2018 YoY Commission, service charges and fees 2,616 2,575  (1.5)% Investment & Trading Income 845 17  (98.0)% Unrealised gain/ (losses) on s

  10. Slide 10: Overheads: 9M FY2018

    Overheads: 9M FY2018 Continued cost management leads to Group CIR of 46.9% 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2018 FY2017 FY2018 FY2018 FY2017 Personnel Costs 4,698.5 4,571.5 2.8% 1,557.2 1,550.7 0.4% 1,522.5 2.3% Establishment Costs 1,321.3 1,421.5 (7.0)% 447.9 416.1 7.6% 479.6 (6.6)% Marketin

  11. Slide 11: Asset Quality

    Asset Quality Stable Group GIL ratio at 2.65% with 9M FY2018 net credit charge off rate of 41 bps Allowances for Losses on Loans Group Gross Impaired Loans (GIL) Ratio Composition Loan loss coverage incl. Regulatory Reserve Sep Jun Mar Dec Sep GIL Ratio Components Loan loss coverage 2018 2018 2018 2

  12. Slide 12: Asset Quality by Line of Business

    Asset Quality by Line of Business Stable QoQ trends across segments and markets Consumer Mortgage Auto Finance Credit Cards 2.38% 2.59% 2.61% 2.37% 2.14% 2.30% 1.44% 1.42% 1.36% 1.75% 1.84% 1.83% 1.84% 1.08% 0.98% 1.73% 1.78% 1.86% 1.79% 0.90% 1.53% 0.83% 0.85% 0.69% 0.67% 0.71% 0.63% 0.61% 0.53% 0.

  13. Slide 13: Oil & Gas Exposure: September 2018

    Oil & Gas Exposure: 30 September 2018 Maybank Group’s exposure to direct and indirect oil and gas borrowers Direct & Indirect Oil & Gas: Borrowers with O&G related exposure Borrowers’ Status: Loan Oil & Gas 1% 89% comes exposure from 15% midstream Maybank Group 3.75% 32% Malaysia 2.17% Normal Singap

  14. Slide 14: Liquidity Management: September 2018

    Liquidity Management: 30 September 2018 Normalisation of Group LCR trend post-liquidity drive in 1H FY2018 Funding Breakdown Borrowings and Liquidity Risk Indicators Capital Instruments by Currency LDR LTF LTFE LCR 137.0% 153.3% 144.9% 133.1% 130.5% FI Deposits, 7% HKD, Equity, 10% 8% JPY, SGD, IDR,

  15. Slide 15: Strong Capital Position: September 2018

    Strong Capital Position: 30 September 2018 Total capital ratio of 17.62% and CET1 capital ratio of 13.59% (assuming 85% dividend reinvestment rate) Before proposed After proposed Regulatory Requirements dividend dividend, assuming 85% reinvestment rate Jan 2019 2018 Onwards 19.38% 18.09% 17.62% Mini

  16. Slide 16: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 15Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  17. Slide 17: Market Outlook

    Market Outlook 2018 industry outlook for our home markets Key Indicators Industry Outlook • Budget 2019 announced fiscal reforms and revenue • GDP (f): 4.7% (2018) vs 5.9% (2017) enhancing measures geared towards affordable • System loan (f): 5.3% (2018) vs 4.1% (2017) housing, supporting SMEs and t

  18. Slide 18: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 17Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  19. Slide 19: International & Malaysia Portfolio Mix 9M FY2018

    International & Malaysia Portfolio Mix 9M FY2018 Net Operating Income Profit Before Tax Gross loans* 9M FY2018 (Jan 18 – Sep 18) Overseas: 7.7% Overseas: 10.9% Overseas: 8.6% 38.5% 29.3% 6.9% 41.8% 7.4% 12.3% RM17.33 11.5% RM7.81 RM507.7 billion billion billion 18.5% 70.7% 25.8% 58.2% 61.5% Malaysia

  20. Slide 20: Segmental Performance of Businesses: 9M FY2018 (1/2)

    Segmental Performance of Businesses: 9M FY2018 (1/2) Net Operating Income 9M FY2017  +0.8% Group Global Banking  (2.0)% 9M FY2018 9M FY2017: 6,892 9M FY2018: 6,753 17,191 17,329  (0.2)%  (1.4)%  +7.0%  (68.6)%  (9.3)% 10,067 10,051 RM million 5,798 5,717 916 980 1,157 1,050 177 56 Total Group

  21. Slide 21: Segmental Performance of Businesses: 9M FY2018 (2/2)

    Segmental Performance of Businesses: 9M FY2018 (2/2) Net Fund Based Income 9M FY2017  +1.6% Group Global Banking  +2.5% 9M FY2018 9M FY2017: 3,992 9M FY2018: 4,094 12,466 12,661  +5.4%  +4.4%  (0.1)%  +2.0%  (>100)% 7,668 7,657 RM million 3,767 3,844 229 242 (4) 8 818 854 Total Group Communit

  22. Slide 22: Unaudited Income Statement for Insurance and Takaful Business

    Unaudited Income Statement for Insurance and Takaful Business 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2018 FY2017 FY2018 FY2018 FY2017 Net interest income 853.8 810.8 5.3% 294.8 280.8 5.0% 260.6 13.1% Net earned premiums 4,431.4 3,817.1 16.1% 1,430.0 1,490.0 (4.0)% 1,307.4 9.4% Other operating incom

  23. Slide 23: Net Fee Based Income: QoQ

    Net Fee Based Income: QoQ RM million 2Q FY2018 3Q FY2018 QoQ Commission, service charges and fees 857 883  3.0% Investment & Trading Income (24) (68)  >100% Unrealised gain/ (losses) on securities (273) 461  (>100)% Realised and Unrealised gain/ (losses) on derivatives 117 (64)  (>100)% Foreign

  24. Slide 24: Group Gross Loans Growth: September 2018

    Group Gross Loans Growth: 30 September 2018 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2018 2018 2018 2017 Ann. 2017 Group Gross Loans 507.7 502.4  1.1% 493.4 493.8  3.7% 485.9  4.5% Malaysia (RM billion) 58% 292.5 290.5  0.7% 288.9 285.5  3.2% 278.7  4.9% Community Financia

  25. Slide 25: Malaysia Loans Growth: September 2018

    Malaysia Loans Growth: 30 September 2018 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep RM billion QoQ YoY Portfolio 2018 2018 2018 2017 Ann. 2017 Community Financial Services (reported) 73% 212.4 209.0  1.6% 205.7 203.7  5.7% 199.8  6.3% Community Financial Services (rebased)¹ 73% 212.4 209.0  1.6

  26. Slide 26: Group Deposits Growth: September 2018

    Group Deposits Growth: 30 September 2018 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2018 2018 2018 2017 Ann. 2017 Group Gross Deposits 536.6 539.8  (0.6)% 532.1 526.6  2.5% 517.2  3.8% Malaysia (RM billion) 62% 331.3 335.8  (1.3)% 336.4 317.8  5.7% 310.4  6.7% Savings Deposi

  27. Slide 27: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 94.0% 93.4% 92.5% 92.8% 94.4% 90.7% 91.2% 87.0% 87.8% 89.5% 36.8% 37.3% 35.3% 35.1% 35.1% 39.5% 40.2% 37.3% 37.3% 37.9% 35.0% 35.4% 33.5% 33.2% 33.2% 36.6% 37.1% 34.5% 34.3% 34.9% Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Sep 17 Dec 17 Mar 18 Jun

  28. Slide 28: Key Operating Ratios

    Key Operating Ratios 9M 9M 3Q 2Q 3Q % YoY QoQ YoY FY2018 FY2017 FY2018 FY2018 FY2017 Return on Equity 10.8 10.3 0.5% 11.0 11.1 (0.1)% 11.6 (0.6)% Net Interest Margin 2.32 2.39 (7) bps 2.30 2.27 3 bps 2.35 (5) bps Fee to Income Ratio 26.9 27.5 (0.6)% 25.0 28.6 (3.6)% 28.6 (3.6)% Loans-to-Deposit Rati

  29. Slide 29: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 28Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  30. Slide 30: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Jun-18 Market Market share Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 vs position Sep-18 Loans Total consumer (Household) 17.5% 17.6% 17.6% 17.6% 17.7% 2 Auto (Purchase of transport vehicles) 26.1% 26.5% 26.7% 27.1% 27.3% 2 Total mortgage *

  31. Slide 31: Community Financial Services: Overview of Malaysia Portfolio

    Community Financial Services: Overview of Malaysia Portfolio Total CFS loans on an upward trend of 6.3% YoY and 5.7% Individual customer TFA grew 4.5% YoY to RM311.5 billion YTD annualised. driven by HNW & Affluent Banking customer TFA  +6.3% YoY  +4.5% YoY  +5.7% YTD Ann.  +4.1% YTD Ann. 298.0

  32. Slide 32: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 31Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  33. Slide 33: Global Banking: Overview of Malaysia Corporate Banking Portfolio

    Global Banking: Overview of Malaysia Corporate Banking Portfolio Total GB loans increased 1.3% YoY to RM80.1 billion Trade Finance market share 24.5% 24.4% RM billion 23.5% 22.8% 44.7 22.4%  +14.5% YoY Term Loan 42.0 39.1 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Short Term 24.9  (12.7)% YoY Note: Market

  34. Slide 34: Global Banking: Overview of Group Securities and Global Markets Portfolio

    Global Banking: Overview of Group Securities and Global Markets Portfolio Group Securities Portfolio¹ grew 11.7 % YoY Group Securities Portfolio¹: 37.2% Foreign Securities as at September 2018 9M FY2018 Others (NIDs, BA, etc) PDS – 3.9% Government Foreign Securities  +11.7 % 14.3% - Domestic 27.7%

  35. Slide 35: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 9M FY2018 Total Income Breakdown by Country Total Income for Maybank Kim Eng Hong Kong Others  +7.0% YoY Philippines 3% 4% 3% Indonesia 980.0 4% 915.6 Malaysia RM980.0 38% RM million Thailand million 17% 9M FY2017 9M FY2018 Singapore 31

  36. Slide 36: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 35Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  37. Slide 37: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary 9M 9M SGD million YoY FY2018 FY2017 Net fund based income 554.83 508.67 9.1% Net fee based income 290.11 243.48 19.2% Net income 844.94 752.15 12.3% Overhead expenses (318.22) (287.08) 10.8% Operating profit 526.72 465.07 13.3% Profit before taxation 289.36 234.30 23.5

  38. Slide 38: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Consumer deposits increased composition to 52% of total  +7.1% YoY deposits  +1.7% YoY 39.1 40.6 41.9 Other 44.2 46.2 44.9 3.1 (Consumer) Consumer - 3.5 3.5 2.0 2.1 2.4 Car Loan Time Deposits Consumer 15.0 15.8

  39. Slide 39: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 38Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  40. Slide 40: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary 9M 9M 3Q 2Q IDR billion YoY QoQ FY2018 FY2017 FY2018 FY2018 Net Fund Based income 6,040 5,727 5.5% 2,108 2,041 3.3% Net Fee Based income 1,511 2,142 (29.4)% 489 495 (1.3)% Net income 7,551 7,868 (4.0)% 2,597 2,536 2.4% Overhead expenses (4,482) (4,494) (0.3)% (1,494) (

  41. Slide 41: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown 30 Sep 30 Jun 30 Sep Key Operating Ratios Sep 18 Dec 17 Sep 17 YoY IDR Trillion QoQ YoY 2018 2018 2017 Profitability & Efficiency CFS 100.1 97.0 3.2% 93.6 7.0% Return On Assets 1.59% 1.48

  42. Slide 42: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 16 Appendix: 1. Financial Performance 18 2. Community Financial Services 29 3. Global Banking 32 4. Maybank Singapore 36 5. Maybank Indonesia 39 6. Other segments 42 41Financial Results: 3Q FY2018 and 9M FY2018 ended 30 Sep

  43. Slide 43: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM171.7 billion 9M 9M Sep 17 RM million YoY FY2018 FY2017 Sep 18  12% Total Income 3,793.5 3,470.1 9.3% 46.2  10% Profit Before Tax 3% 41.2 2,031.3 1,967.0 3.3% 37.9 

  44. Slide 44: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 33.6% 33.8% 33.6% 33.2% 32.6% Key Products Sep 18 Sep 17 Automobile Financing 45.0% 44.9% 31.2% 30.4% 30.4% 30.4% Home 27.0% 27.9% 29.7% Term financing 31.8% 29.6% Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Financi

  45. Slide 45: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Gross Premium Life / Family (New Business) Market Share Single Premium  98.8% AIA Ins. & Tak. 21.4% 9M FY2017 Regular Premium  6.2% Prudential Ins. & Tak. 13.7% Credit Premium  44.9% 9M FY2018 No. 4 in Life/Family Group Premium  12.8% GE Ins. & Tak. 13

  46. Slide 46: Malayan Banking Berhad Investor Relations Contact

    Humanising Financial Services MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Investor Relations Contact Dato’ Amirul Feisal Wan Zahir Group Chief Financial Officer Contact: (6)03-2074 7703 Email: feisal.zahir@

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