Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — 9MFY2025 Earnings Presentation

38 slides from Ammb Holdings Bhd's earnings presentation, Feb 20, 2025

  1. Slide 1: 9MFY2025 Results Investor Presentation

    9MFY2025 RESULTS (Quarter Ended 31 December 2024) INVESTOR PRESENTATION 20 FEBRUARY 2025

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Jamie Ling 3 9MFY25 Financial Snapshot 4 Loans by Stages 5 Outlook for CY2025

  3. Slide 3: 9MFY25 Financial Snapshot

    Financial Snapshot (Reported) 9MFY25 Financial snapshot Resilient income, NIM expanded 15 bps YoY, lower impairment charges; 9MFY25 Reported Financials Variance ROE at 9.9%; ROA at 1.01%; CET1 at 14.88% • NIM expansion driving NII growth of 8% 3,648 • Strong NoII growth in Wealth Management, Funds,

  4. Slide 4: Portfolio quality stable

    Loans (Reported) Portfolio quality stable Loans by ECL Stages (RM’ bil) Breakdown by Business Segments (%)1 Stage 1 Stage 2 Stage 3 Stage 1 134.1 134.5 137.1 93.55% 130.8 131.3 132.7 129.0 1.7% 1.7% 92.09% 1.7% 1.6% 1.7% 1.7% WB 1.7% 7.6% 8.2% 8.7% 9.9% 9.8% 8.2% RB 90.02% 9.9% BB 89.92% 87.80% 89.4

  5. Slide 5: Outlook for CY2025

    Market Outlook Outlook for CY2025 GDP Growth 4.5% to 5.5% Inflation 2.5% to 3.0% Malaysia Unemployment Rate 3.2% USD/MYR Outlook 4.40 to 4.50 Loans Growth 5.0% to 6.0% Banking Asset Quality Stable Sector OPR 3.00% Liquidity & Capital Positions Resilient CY = Calendar Year 55 9MFY25 Results – Investo

  6. Slide 6: GCFO Presentation

    GCFO PRESENTATION Shafiq Bin Abdul Jabbar 7-21 Financial Overview

  7. Slide 7: Q3FY25 Financial Overview: Margins stable at 1.96% and lower net impairment charge

    Financial Overview (Continuing) Q3FY25 Financial Overview: Margins stable at 1.96% and lower net impairment charge 1 Q3FY25 Results (QoQ) • Income of RM1,241mil (Q2FY25: RM1,228mil), up 1% QoQ - NII grew 1% to RM913mil (Q2FY25: RM901mil), NIM maintained at 1.96% (Q2FY25: 1.96%) - NoII at RM328mil (Q

  8. Slide 8: 9MFY25 Performance Summary – P&L

    Financial Overview (Reported) 9MFY25 Performance Summary – P&L P&L (RM’ mil) Q2FY25 Q3FY25 QoQ Change 9MFY24 9MFY25 YoY Change Total Income 1,228 1,241  1% 3,477 3,648  5% - NII 901 913  1% 2,481 2,675  8% - NOII 327 328 ≈ 996 973  (2%) Expenses (530) (571)  8% (1,522) (1,621)  7% PBP 698 670

  9. Slide 9: 9MFY25 Performance Summary – Balance Sheet

    Financial Overview (Reported) 9MFY25 Performance Summary – Balance Sheet Balance Sheet (RM’ bil) Q2FY25 Q3FY25 QoQ Change FY24 9MFY25 YTD Change Gross Loans 134.5 137.1  2% 134.1 137.1  2% GIL 1.67% 1.67% ≈ 1.67% 1.67% ≈ LLC (include Reg Reserves) 102.1% 101.8%  (0.3%) 109.5% 101.8%  (7.7%) LLC

  10. Slide 10: P&L walk – Strong NII and lower net impairment charge

    Group P&L P&L walk – Strong NII and lower net impairment charge YoY Growth  8%  3%  6%  7%  6%  (69%)  21%  22%  9%  (100%)  7% Discont’d PATMI: (26) 1 Positive growth in 9MFY25 9MFY25 2,675 973 3,648 (1,621) 2,026 (95) 1,931 (444) - 1,487 - 1,487 Contraction in 9MFY25 9MFY24 2,481 945 3,

  11. Slide 11: Good income growth, driven by NII as margins improved

    Income Good income growth, driven by NII as margins improved Business Segments Q2FY25 Q3FY25 QoQ Change 9MFY24 9MFY25 YoY Change (RM’ mil) Wholesale Banking 331 308  (7%) 912 908 ≈ Investment Banking 97 98  1% 263 295  12% Retail Banking 1 361 364  1% 1,104 1,090  (1%) Business Banking1 441 465

  12. Slide 12: Q3FY25 NIM stable at 1.96%

    NIM Q3FY25 NIM stable at 1.96% YoY NIM 9MFY25: Net Interest Margin (NIM) Movement (QoQ) Reported: 1.94% (  15bps ) 9MFY24: Reported: 1.79% Assets 0.3 0.6 0.9 0.6 bps 1.9 2.5 ≈ (6.3) 196 196 3 Q2FY25 Retail Wholesale Investment Business Asset mix Deposits Others Q3FY25 1 1 Banking Banking 2 Banking

  13. Slide 13: Continuing NoII up 3% YoY driven by strong performance

    NoII Continuing NoII up 3% YoY driven by strong performance from BB, Wealth, IB & Insurance Composition 6% 12% 31% 10% 7% 20% 6% 6% 2% 100% YoY Growth  (10%)  (46%)  11%  51%  (5%)  9%  23%  >100%  (3%)  3%  (100%)  (2%) Positive growth in 9MFY25 Contraction in 9MFY25 9MFY24 NoII 9MFY25

  14. Slide 14: Expenses increase due to higher compensation related accruals

    Expenses Expenses increase due to higher compensation related accruals Business Segments Q2FY25 Q3FY25 QoQ Change 9MFY24 9MFY25 YoY Change (RM’ mil) Wholesale Banking 90 93  3% 261 270  3% Investment Banking 60 64  6% 170 181  7% Retail Banking1 240 242  1% 713 724  1% Business Banking 1 141 1

  15. Slide 15: Continuing PBP up 6% YoY

    PBP & PATMI Continuing PBP up 6% YoY Business Segments Q2FY25 Q3FY25 QoQ Change 9MFY24 9MFY25 YoY Change (RM’ mil) Wholesale Banking 241 214  (11%) 651 638  (2%) Investment Banking 37 34  (7%) 93 113  22% Retail Banking 1 121 122  1% 391 366  (6%) Business Banking 1 300 319  6% 756 909  20%

  16. Slide 16: BB leading lending growth

    Loans BB leading lending growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: Fixed rate – 20% Islamic – 35% Retail – 50% Variable rate –80% Conventional – 65% Non-retail – 50% Composition 14% 35% 36% 9% 2% 3% 1% 100% YTD Growth ≈ 

  17. Slide 17: Asset Quality: Lower net credit cost

    Asset Quality Lower net credit cost from provision reversals in WB and from forward looking Overlay: provision reversals Q1FY25: 38.8 Q2FY25: (21.7) Net Impairment (YoY Movement) (RM’mil) Q3FY25: (5.4) Positive P&L impact in 9MFY25 Negative P&L impact in 9MFY25 Gross Impaired Loans (RM’mil) and Loan

  18. Slide 18: Impaired loans stable YTD

    Asset Quality Impaired loans stable YTD Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’24 Sep’24 Dec’24 YTD QoQ Sector Composition Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil RM’ mil Movement Move

  19. Slide 19: Liability management to improve margins

    Deposits Liability management to improve margins Deposits1 (RM’ bil) CASA (RM’ bil) and CASA Composition (%)1 Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry 9MFY25 138.4  (3%)  2%2 9MFY25 44.6  (15%)  3%2 FY24 142.4  9%  5%3 FY24 52.8  8%  7%3 FY23 130.3  6%  5%

  20. Slide 20: FIRB CET1 ratio at 14.88%

    Capital FIRB CET1 ratio at 14.88% RWA/Total Assets Capital Adequacy Ratios3 1 Total Assets RWA/Total Assets Peers CET 1 / Tier 1 TCR FIRB2 SA approach FIRB2 67.4% (without TA) 62.7% 63.3% 57.4% 17.92% 17.82% 18.02% 17.62% 16.30% 16.52% 56.8% 55.3% 55.1% 54.9% RM’ bil 15.15% 15.07% 15.29% 14.88% 13.0

  21. Slide 21: 9MFY25 Summary

    Summary 9MFY25 Summary RESILIENT PERFORMANCE CREDIT PROFILE • Resilient income, strong profit formation • Loan Loss Coverage* at 101.8% • Stable NIM • Overlays of RM514 mil • 10% ROE and ROA of 1.01% • Gross NPL stable * Including Regulatory Reserves OPERATING LEVERAGE BALANCE SHEET STRENGTH • Expen

  22. Slide 22: Thank You

    THANK YOU a So pae PRINCIPLED PROACTIVE ‘APPRECIATIVE COLLABORATIVE EXPERIMENTAL a)

  23. Slide 23: P&L – Continuing & Discontinued Operations

    Appendix P&L – Continuing & Discontinued Operations Year-on-Year (YoY) 9MFY24 9MFY25 YoY Movement Continuing Discontinued Continuing Discontinued Reported Reported Continuing Discontinued RM’mil Operations Operation Operations Operation Reported (A) + (B) (A) + (B) Operations Operation (A) (B) (A) (

  24. Slide 24: Reported yearly performance

    9MFY25 Results (Reported) Reported yearly performance PATMI (RM’mil) & ROE (%) Total Income (RM’mil) and Non-interest Income (%) Total Income: PATMI: ROE: CAGR FY22-FY24:  (0.2%) YoY Growth  6.9% YoY Growth  (0.1%) YoY Growth  4.9% PATMI ROE Total Income Non-Interest Income % 9.8% 10.0% 10.0% 9.

  25. Slide 25: (Impairments) / Recoveries

    Asset Quality (Impairments) / Recoveries Net (Impairments) / Recoveries and GIL Ratio Total impairments by category (RM’ mil) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 QoQ Change 9MFY24 9MFY25 YoY Change ECL Stage 1 & 2 – Non defaulted (32) 18 5 57 (33) 15 (3)  (>100%) (9) (21)  >100% ECL S

  26. Slide 26: Divisional Performance

    Divisional Performance PRINCIPLED PROACTIVE APPRECIATIVE COLLABORATIVE aie

  27. Slide 27: Wholesale Banking

    Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth:  (33%) YoY Growth:  2% Total Income ≈ FY24: 755 9MFY25: 600 RM908 mil 262  (4%) 233 188 167 167 176 162 Transaction  (15%) Banking 18% Transaction Banking Corporate 4% B

  28. Slide 28: Wholesale Banking

    Wholesale Banking Wholesale Banking Income Statement YoY Growth  17%  (38%) ≈≈  3%  (2%)  41%  4%  9%  2% Net Interest Non-Interest Impairment RM' mil Total Income Expenses PBP PBT Tax & Zakat PAT Income Income write-back 9MFY25 732 176 908 (270) 638 140 778 (178) 600 9MFY24 628 284 912 (261

  29. Slide 29: Investment Banking

    Investment Banking Investment Banking League Table PAT Trend (RM’ mil) Market Share1 As At QoQ Growth:  (16%) Rank2 31 Dec 2024 YoY Growth :  33% DCM 13.0% 3 FY24: 86 9MFY25: 96 (Overall MYR Bonds) Islamic Sukuk 10.8% 4 37 32 Unit Trust 7.1% 5 27 26 27 Stockbroking3 7.1% 6 18 14 M&A3 37.3% 1

  30. Slide 30: Investment Banking

    Investment Banking Investment Banking Income Statement YoY Growth  12%  12%  12%  7%  22%  >100%  32%  29%  33% Net Interest Non-Interest Impairment RM' mil Total Income Expenses PBP PBT Tax & Zakat PAT Income Income write-back/(charge) 9MFY25 42 253 295 (181) 113 9 122 (26) 96 9MFY24 38 22

  31. Slide 31: Retail Banking

    Retail Banking Retail Banking1 Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) Total Income  (1%) QoQ Growth :  24% RM 1,090 mil YoY Growth :  >100%  (78%)  (4%)  43% Others FY24: 4 9MFY25: 182 Wealth 2% Mortgage 10% 14% Personal Cards Financing 5% 5% Auto Auto Fi

  32. Slide 32: Cards in circulation

    Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth:  (22%) Merchant volume (RM'mil) QoQ Growth:  5% YoY Growth:  37% YoY Growth:  42% Merchants in force ('000) QoQ Growth:  (1%) YoY Growth:  (12%) 35 36 35 34 34 FY24: 8,162 9MFY25: 7,914 31 31 3,222 FY24: 17,418 9M

  33. Slide 33: Retail Banking

    Retail Banking Retail Banking 1 Income Statement YoY Growth (5%)  22% (1%)  1% (6%)  (74%)  >100%  (>100%)  >100% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income 9MFY25 925 165 1,090 (724) 366 (127) 239 (57) 182 9MFY24 969 136 1,104 (

  34. Slide 34: Business Banking

    Business Banking Business Banking1 Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth:  4% QoQ Growth:  52% YoY Growth:  15% YoY Growth:  57% Non-trade Trade 45,858 47,530 43,326 43,946 40,073 41,252 38,387 11,789 10,428 11,005 10,652 10,135 10,183 9,273 FY24: 595 9MFY25: 603 32,674 33,518 34,

  35. Slide 35: Business Banking

    Business Banking Business Banking1 Income Statement YoY Growth  13%  11%  13%  (1%)  20%  (53%)  57%  57%  57% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income 9MFY25 1,038 296 1,334 (425) 909 (118) 791 (188) 603 9MFY24 920 266 1,186 (

  36. Slide 36: AmBank (M)

    AmBank (M) entity level AmBank (M) Income Statement YoY Growth  6%  (7%)  3%  7% ≈  (65%)  13%  19%  (5%) Net Interest Non-Interest One-off charges Reported RM' mil Total Income Expenses PBP Impairment PBT Tax Income Income & Tax Credit1 PAT 9MFY25 1,787 559 2,346 (1,042) 1,304 (75) 1,229 (2

  37. Slide 37: AmBank Islamic

    AmBank Islamic entity level AmBank Islamic Income Statement YoY Growth  10% ≈  9%  6%  12%  (73%)  30%  36%  58% Net Financing Non-Financing Reported RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat One-off charges 1 Income Income PATZ 9MFY25 851 98 950 (378) 572 (24) 548 (128) -

  38. Slide 38: Glossary & Disclaimer of warranty and limitation of liability

    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 Q3FY25 vs Q2FY25 YoY gr

AMMB Holdings Berhad — 9MFY2025 Earnings Presentation on 6ix