Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Shareholder Meeting (April 2016)
19 slides from Malayan Banking Bhd's shareholder meeting presentation, Apr 7, 2016
Slide 1: 56th Annual General Meeting: Humanising Financial Services
Humanising Financial Services 56th Annual General Meeting Presentation to Shareholders by Datuk Abdul Farid Alias, Group President & CEO 7 April 2016 00
Slide 2: Group Strategic Priorities for FY2015
Group Strategic Priorities for FY2015 To strengthen the Group’s revenue growth To continue focus on productivity Group-wide To deploy a capital efficient strategy To continue with international market performance To solidify our position in ASEAN for AEC opportunities e.g. Qualified ASEAN
Slide 3: Significant Change in Market Environment in 2015
Significant Change in Market Environment in 2015 Declining oil prices, weakening ringgit, higher market volatility and rising credit default swap spreads Brent Crude Oil (USD) MYR/USD 75 0.29 70 0.28 65 0.27 60 0.26 55 0.25 50 45 0.24 40 0.23 35 0.22 Sep 15 Jan 15 Jun 15 Aug 15 Feb 15 Jul 15 May 1
Slide 4: Changing Risk Posture
Changing Risk Posture We mobilised our balance sheet management initiatives in 2H 2015 through: More selective asset growth Growing our liquidity position Proactive management of asset quality Continued focus on productivity Maintaining strong capital position We also revised our guidance
Slide 5: Our Performance in 2015
Our Performance in 2015 As a result of our proactive balance sheet management, we were able to meet most of our revised KPI targets for FY2015: FY2015 FY2015 Key Performance Indicators Guidance Achievement Return on Equity 12.0% - 13.0% 12.2% Group Loans Growth 8.0% - 9.0% 12.0% • Malaysia 6.0% - 7.
Slide 6: Summary Financial Performance for FY2015
Summary Financial Performance for FY2015 Net Fund Based Income Net fund based income rose as Group loans grew 12.0% and net RM14.5b, +15.3% interest margin remained stable at 2.31% … Net Fee Based Income … while net fee based income increased due to higher net earned RM6.7b, +13.2% premiums, forex g
Slide 7: Growing While Maintaining NIM
Growing While Maintaining NIM Higher net fund based income of 15.3% due to: ● Group loans growth of 12.0% ● Stable net interest margin (NIM) led by retail franchise growth of 2.31% through repricing of in home markets: loans CFS Malaysia +8.2% YoY Group NIM (%) CFS Singapore +36.6%* YoY CFS
Slide 8: Conservative Management of Liquidity
Conservative Management of Liquidity Group deposit growth of 12.8% ahead of loan growth of 12.0% led to improved Group Loan to Deposit ratio (LDR) of 91.5% Group Liquidity Coverage Ratio of 148% as at end-2015 Group Gross Deposits Group LDR 91.8% 92.2% 94.2% 95.3% 91.5% +12.8% 495.8 439.6 RM bil
Slide 9: Productivity Drive via SCMP
Productivity Drive via SCMP Cost Income Ratio (CIR) of 48.2% with positive JAW position as income growth of 14.6% outpaced overheads growth of 12.9% Managing discretionary spend as part of SCMP initiatives Continuously maintained CIR below 50% over the last five years Group CIR (%) 49.9 48.9 4
Slide 10: Asset Quality
Asset Quality Group Gross Impaired Loans (GIL) ratio rose to 1.86% attributed to specific accounts in Malaysia and international markets GIL Ratio Group Malaysia Singapore Indonesia 4.15% 3.24% 1.86% 1.85% 1.76% 1.52% 0.45% 0.23% Dec 14 Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 Dec 14 Dec 15 99
Slide 11: Asset Quality for Malaysia
Asset Quality for Malaysia Consumer Mortgage Auto Finance Credit Cards 1.2% 1.3% 1.0% 0.8% 0.7% 0.6% 0.5% 0.5% 0.5% Dec 14 Dec 15 Industry Dec 14 Dec 15 Industry Dec 14 Dec 15 Industry Business SME Business Banking Corporate Banking 2.4% 2.4% 10.3% 10.0% 2.0% 1.4% 1.5% 2.0% 2.0% Dec 14 Dec 15 Indust
Slide 12: Strong Capital While Growing Responsibly
Strong Capital While Growing Responsibly Managed Risk Weighted Assets growth Total capital ratio of of 5.8% vs loan growth of 12.0% 17.49% and CET1 capital ratio of 12.53% (after Group Gross Loans Total Group RWA proposed dividend and assuming 85% dividend reinvestment rate) +12.0% +5.8% 459.8 3
Slide 13: Maybank's Awards & Recognition
Maybank’s Awards & Recognition Group Awards Customer Experience The Banker Magazine CFS Malaysia • Bank of the Year Customer Experience in Financial Services (CXFS) Asia Awards 2015 • Winner: Best Use of Social Media Maybank Indonesia Markplus WOW Service Excellence Award 2015 • The Best Champion fo
Slide 14: Priorities for 2016
Priorities for 2016 Remain focused on selective asset growth in line with capital position Manage liquidity effectively through high-quality liquid assets Improve productivity and manage discretionary spend Downside risks include further global macroeconomic headwinds Credit cost expected
Slide 15: 5-Year Transformation Journey concluded in FY2015
5-Year Transformation Journey concluded in FY2015 1 Undisputed No. 1 Retail Financial Service provider in Malaysia by 2015 Market share leader in Unit Trust, Total Deposits, Retail CASA and Internet Banking (subscriber base) Leading ASEAN wholesale bank, eventually expanding further into 2 the Mid
Slide 16: Maybank2020 Strategy: The Next 5 Years in ASEAN
Maybank2020 Strategy: The Next 5 Years in ASEAN 1 ASEAN population, with 660 million people, swelling middle class, growing SMEs 2 The AEC is expected to drive further intra- & inter-regional trade activities, including capital raising and transactions 3 Significant upside for Insurance penetration
Slide 17: Strategic Objectives of Maybank2020
Strategic Objectives of Maybank2020 1 The Top ASEAN Community Bank By leveraging on our regional presence, banking expertise and ASEAN growth opportunities 2 The Leading ASEAN Wholesale Bank Linking Asia By leveraging on our ASEAN leadership capabilities to deliver client solutions across Asia 3
Slide 18: Looking Ahead
Looking Ahead We remain resolved in managing challenges Road ahead won’t be easy, but we always look to do the “right things right” Commitment to making the next five-year transformation journey an impactful one 1717
Slide 19: Malayan Banking Berhad
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’ Mohamed Rafique Merican Group Chief Financial Officer Contact: (6)03-2074 7878 Email: rafique@mayba
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