Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Investor Day (April 2021)
30 slides from Malayan Banking Bhd's investor day presentation, Apr 9, 2021
Slide 1: Investor Day 2021: Maybank Group's Five-Year Strategy M25
Dis claimer: The con ten ts of this document/information remain the in tellectual property of M ayban k and n o part of this is to be reproduced or transmitted in an y form or by an y means , in cludin g electronically, photocopyin g, recording or in an y information storage and retrieval s ystem wi
Slide 2: Who We Are
Who We Are OUR CORE VALUES Teamwork Integrity Growth Excellence & Efficiency Relationship Building OUR MISSION Humanising Financial Services Serving our Over 42,000 Maybankers Our strong retail OUR UNIQUE communities in ways who serve the mission, community DIFFERENTIATORS that are simple, fair empo
Slide 3: Our Strategic Journey
Our Strategic Journey The Top ASEAN Community Bank The Leading ASEAN Wholesale Bank Linking Asia The Leading ASEAN Insurer The Global Leader in Islamic Finance The Digital Bank of Choice 2021-2025 2016-2020 Sustainability agenda embedded in long- term strategy to become Bank’s DNA. 2010-2015 Str
Slide 4: Our Regional Strategy Contributed to Our Earnings Growth
Our Regional Strategy Contributed to Our Earnings Growth Net Operating Income PPOP Net Profit 2015-2020: 5-Year CAGR Net Operating Income : 3.1% (3.9%) 2020-2025: 5-Year (f) PPOP : 4.3% (4.7%) ROE : 13-15% 2010-2015: 5-Year CAGR Net Profit : -1.1% (4.6%) CIR : <=45% Net Operating Income : 11.5% * Fi
Slide 5: We Continue to Maintain Strong Capital & Liquidity Positions
We Continue to Maintain Strong Capital & Liquidity Positions… Capital Adequacy Ratio1 RWA Density1 21.50 CET1 (%) AT1 (%) Tier 2 (%) 62.2% 60.4% 18.90 18.68 18.40 17.90 52.2% Maybank’s capital and 16.88 16.80 16.40 15.77 15.69 47.1% 49.4% 50.5% risk-weight assets 13.70 41.2% 41.6% 41.8% 42.9% densit
Slide 6: Enabling Steady Shareholder Rewards & Better Cash Payouts up to FY19
…Enabling Steady Shareholder Rewards & Better Cash Payouts up to FY19 Total dividend payout ratio consistently above 40-60% policy rate Dividend (sen), Payout Ratio, Yield and Cash Component (%) 79.9% 78.5% 78.1% 78.5% 87.8% 91.2% Dividend Payout 76.5% 74.9% 74.7% 71.9% 76.3% 77.3% Ratio 100% 67% 53
Slide 7: Maybank2020: Achievements – The Top ASEAN Community Bank
Maybank2020: Achievements in Key Strategic Objectives The Top ASEAN Community Bank To be a leading retail & commercial financial services provider in ASEAN, leveraging our regional presence, banking expertise and growth opportunities in ASEAN. Consumer adoption rate using Monetary transactions throu
Slide 8: Maybank2020: Achievements – Leading ASEAN Wholesale Bank
Maybank2020: Achievements in Key Strategic Objectives The Leading ASEAN Wholesale Bank Linking Asia To be the trusted ASEAN financial partner that links Asia by leveraging our ASEAN leadership capabilities to deliver client solutions across Asia. Bloomberg League Table Leading Global Banking franchi
Slide 9: Maybank2020: Achievements – The Leading ASEAN Insurer
Maybank2020: Achievements in Key Strategic Objectives The Leading ASEAN Insurer To be a leading ASEAN insurer by leveraging synergies between Maybank’s regional banking footprint and Etiqa’s expertise in Takaful & bancassurance No. 1: Expanded ASEAN footprint from Malaysia and Singapore NPS in Malay
Slide 10: Maybank2020: Achievements – Global Leader in Islamic Finance
Maybank2020: Achievements in Key Strategic Objectives The Global Leader In Islamic Finance To continue delivering innovative client-centric universal financial solutions, building on our global leadership in Islamic Finance NPS in Malaysia: • Largest Islamic Finance Led the development of Islamic Fi
Slide 11: Maybank2020: Achievements – The Digital Bank of Choice
Maybank2020: Achievements in Key Strategic Objectives The Digital Bank of Choice To be the digital bank of choice by putting our customers’ preferences first and transforming to deliver next-generation customer experience. Further enhanced customer experience by building partnerships, digital assets
Slide 12: Maybank Is The Most Valuable Company in Malaysia
Maybank Is The Most Valuable Company in Malaysia Company Market Cap Market Price No. of Shares PE Ratio Rank (Ranking as at 30 March 2021) (RM Bil) (RM) (in Bil) (times) 1 Malayan Banking Bhd 95.88 8.40 11.41 14.57 2 Public Bank Bhd 83.08 4.28 19.41 17.05 3 Petronas Chemicals Group Bhd 64.80 8.10 8.
Slide 13: Leading Regional Financial Services Group
Leading Regional Financial Services Group Largest Banking Network In Malaysia Strong Financial & Leadership Positions within ASEAN & Present in all 10 ASEAN Countries 2,626 51 Total Assets (USD bil)¹ Loans and Deposits (USD bil)¹ retail branches investment banking 286 DBS 492 DBS worldwide branches
Slide 14: Banks in Our Home Markets Have Seen ROEs Decline
Over the Past Decade (Prior to COVID-19 Pandemic), Banks in Our Home Markets Have Seen ROEs Decline… …with Maybank’s ROE declining at a relatively slower gradient and remaining above its reducing cost of equity ( <9% since 2018¹) ROE (%) of Malaysia Banks ROE (%) of Singapore Banks 14.5 27.1 12.1 13
Slide 15: Operating Context
Operating Context Against these emerging macroeconomic and social trends, our next five year strategy was designed… Humanising Financial Services
Slide 16: Our Operating Context (1/2)
Our Operating Context (1/2) Global Economic Policy Uncertainty Index 1 Decreasing industry ROE trajectory 2 We have seen 30.00 heightened uncertainty in the global economy in 25.00 the past five years, 20.00 impacting the banking 15.00 sector ROEs. Exacerbating this 10.00 environment is the 5.00 rec
Slide 17: Our Operating Context (2/2)
Our Operating Context (2/2) Tech Investment in ASEAN Stayed Resilient at USD5.6 bn Mobile Banking App Users Jumped the Most in Investment trends in 1H20, more than Double the Amount in 2H19 1 Vietnam, Philippines & Indonesia 2 continue to show increasing spend on digitalisation efforts across ASEAN,
Slide 18: M25: Refreshing our mission and anchoring our strategy on three priorities
M25 Refreshing our mission and anchoring our strategy on three priorities Humanising Financial Services
Slide 19: Humanising Financial Services
Humanising Financial Services Our purpose has been refreshed to reflect long-term priorities and a new operating landscape HUMANISING FINANCIAL SERVICES Being at the heart of the community, For our stakeholders: To create the following impact: we will: • Make financial services simple, Customers Emp
Slide 20: Maybank's Next Five-year Strategy: M25
Maybank’s Next Five-year Strategy: M25 Anchored on our purpose of Humanising Financial Services 19
Slide 21: Group Strategic Priorities: Pervasively Digital
Group Strategic Priorities Pervasively Digital • Pervasively Digital represents our digital efforts to strengthen and deliver more value to the stakeholders, guided by the Core principles of Experience, Trust and Resilience. The Core Principles guide.. .. Our Focus Areas… … which is enabled by: • Wo
Slide 22: Group Strategic Priorities: New Value Drivers
Group Strategic Priorities New Value Drivers • New Value Drivers go beyond the current business-as-usual (BAU) and represent new business growth opportunities covering SME, wealth, trade, ESG and digital. These are transformative initiatives meant to help us grow over the long-term and sustainably b
Slide 23: Group Strategic Priorities: Sustainability
Group Strategic Priorities Sustainability • We aim to drive the change for a better world and partner clients to achieve sustainable growth. • Our sustainability agenda is predicated on three key pillars: enabling responsible transition to a low carbon economy, empowering our communities and leading
Slide 24: Business Strategic Thrusts: Group Community Financial Services
Business Strategic Thrusts Preferred ASEAN Bank – Group Community Financial Services Group Community Financial Services aspires to be the “Most Preferred Community Bank” through: AIM HOW? OUTCOME Attain • Strengthen our position in home markets; create a digital eco-system and marketplace – Grow ≥3x
Slide 25: Business Strategic Thrusts: Group Global Banking
Business Strategic Thrusts Preferred ASEAN Bank – Group Global Banking Group Global Banking aspires to be the “Valued ASEAN Banking Partner Globally’ through: AIM KEY ENABLERS STRATEGIC INITIATIVES OUTCOME BUSINESS MODEL SHIFTS • Client segment diversification for optimal risk-return profile >50% fi
Slide 26: Business Strategic Thrusts: Global Leader in Islamic Finance
Business Strategic Thrusts Global Leader in Islamic Finance Group Islamic Banking aspires to be a Global Leader in Islamic Finance through Financial Resilience, Global Prominence and Thought Leadership in Sustainable Finance, Product Innovation and Shariah through: EXPANDED BUSINESS MODEL WHY? HOW?
Slide 27: Business Strategic Thrusts: Leading ASEAN Insurer
Business Strategic Thrusts Leading ASEAN Insurer Etiqa aspires to be “A Leading ASEAN Insurer” in line with its purpose of “We Want To Make The World A Better Place” by putting the interests of our customers & communities first and providing protection & wellness offerings to as many people as possi
Slide 28: M25 Targeted Outcomes: Drivers behind ROE uplift
M25 Targeted Outcomes Drivers behind ROE uplift To improve a BAU potential ROE of around ~11.5% by 2025, we have identified New Profit Drivers (NPD) that will bring us closer towards achieving our aspirational ROE of between 13%-15% by 2025. • Digital: Continuously enhance STP capabilities, drive cu
Slide 29: M25 Targeted Outcomes: Desired Long-Term Outcomes
M25 Targeted Outcomes Desired Long-Term Outcomes Build top-notch experience for our • Mobilise RM50 billion in Sustainable customers via digital and hybrid services Finance by 2025. 13-15% <=45% by leveraging data analytics: Return on Cost to income • Improve the lives of 1 million equity ratio hous
Slide 30: Malayan Banking Berhad
MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Disc laimer: This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the i
Malayan Banking Berhad (Maybank) — Investor Day (April 2021) on 6ix