Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Invest Malaysia 2014
48 slides from Malayan Banking Bhd's conference presentation, Jun 9, 2014
Slide 1: Humanising Financial Services Across Asia
Humanising Financial Services Across Asia Invest Malaysia 2014 Mandarin Oriental, Kuala Lumpur 9-10 June 2014 www.maybank.com 0
Slide 2: Invest Malaysia 2014
Invest Malaysia 2014 Maybank: A Leading Malaysian Bank Maybank: Becoming a Regional Financial Services Leader Shareholder Return and Performance FY2014 Strategic Priorities Appendix: 1Q FY2014 Financial Results 1
Slide 3: Maybank maintains its leadership position domestically
Maybank maintains its leadership position domestically We are the most valuable company listed on Bursa Malaysia Leadership Position Emerging Regional Leader ■ Presence in 10 ASEAN countries ■ No. 1 bank in Malaysia: Conventional and Islamic ■ 5 International Financial Centres ■ One of the Top 5 ban
Slide 4: Largest Financial Services Group in Malaysia
Largest Financial Services Group in Malaysia Maybank is the leading provider of consumer, SME and corporate banking services, as well as insurance and takaful products Segment Business Community International Insurance and Global Banking Financial Services Banking Takaful PBT * FY13 % of 32.1% 34.6%
Slide 5: Maybank's Success is Anchored on Five Strategic Objectives
Maybank’s Success is Anchored on Five Strategic Objectives We continue to make progress in our key business pillars Strategic Objective 1: Undisputed No. 1 Retail Financial Services provider in Malaysia by 2015 Strategic Objective 2: Leading ASEAN wholesale bank eventually expanding to Middle East,
Slide 6: Market Leadership in Malaysia (1/4)
Market Leadership in Malaysia (1/4) Maybank maintains a strong position in the retail segment Maybank remains the market leader in 1Q 2014 Q1’14 MBB Q4’11 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 vs Rank^ Q1’13 Deposits Total Deposits 17.4% 17.1% 16.8% 17.7% 17.7% 18.5% 18.2% 1 Total Core Retail Deposits
Slide 7: Market Leadership in Malaysia (2/4)
Market Leadership in Malaysia (2/4) Global Banking continues to participate in notable deals Top deals secured across the region for FY2013 Notable deals secured in the 1Q FY2014 NOTABLE DEALS COMPLETED FROM JAN – DEC 2013 Malaysia Malaysia Malaysia Malaysia Singapore Malaysia Malaysia Malaysia Sapu
Slide 8: Market Leadership in Malaysia (3/4)
Market Leadership in Malaysia (3/4) Top two player in M&A, equity and debt capital markets Maybank Investment Bank (Malaysia): Industry Position & Market Share FY2013 Industry Market Share Total Value Deals/ Issues Rank by (%) (RM bil) (Number) Value Merger & Acquisitions1 2 20.7% 12.83 16 Equity Ca
Slide 9: Market Leadership in Malaysia (4/4)
Market Leadership in Malaysia (4/4) Insurance and takaful as well as Islamic portfolios chart steady growth General Insurance and Takaful Market Share Maybank Islamic Market Share (Malaysia) 35.0% Etiqa Ins. & Tak. 12.4% 30.6% 30.7% 28.9% 30.0% 28.1% 26.2% 26.8% Allianz Insurance 11.0% 25.0% AmGener
Slide 10: Investment to Uphold Malaysia's Domestic Demand Growth
Investment to Uphold Malaysia’s Domestic Demand Growth Selective growth in Maybank’s business banking and corporate loans on the back of ETP related investments Pemandu set to target RM26.6 billion Potential areas for growth: ETP investments in 2014 Malaysia: Realised and Targeted Annual Investments
Slide 11: Invest Malaysia 2014
Invest Malaysia 2014 Maybank: A Leading Malaysian Bank Maybank: Becoming a Regional Financial Services Leader Shareholder Return and Performance FY2014 Strategic Priorities Appendix: 1Q FY2014 Financial Results 10
Slide 12: Malaysia is a key driver for growth in ASEAN
Malaysia is a key driver for growth in ASEAN As the largest listed financial institution in Malaysia with a strong network in ASEAN, Maybank is well positioned Malaysia is the 3rd best emerging market in the world, behind 1 China and South Korea Malaysia ranked 6th globally as the world’s most condu
Slide 13: Benchmarking Against Regional Banks
Benchmarking Against Regional Banks Maybank is a Top 4 ASEAN banking group in terms of assets but third in terms of market capitalisation Total Assets (USD bil): 31 Mar 2014 Loans and Deposits (USD bil): 31 Mar 2014 PATAMI (USD mil): 4 Quarters to 31 Mar 2014 Market Capitalisation (USD bil): 30 May
Slide 14: ASEAN Footprint
ASEAN Footprint Maybank is present in all ten ASEAN countries, making it a truly ASEAN franchise TOTAL PHILIPPINES SINGAPORE INDONESIA CAMBODIA MARKET CAP ASSETS THAILAND MYANMAR MALAYSIA VIETNAM BRUNEI @ @ LAOS BANK 30 May 14 31 Mar 14 (USD Bil) (USD Bil) 1 DBS 32.95 333 2 UOB 28.38 235 3 Maybank 2
Slide 15: Maybank's International PBT has continued to grow yearly
Maybank’s International PBT has continued to grow yearly International PBT accounted for 30.3% of Group PBT for FY2013 PBT Contribution by Market 30.2% 30.3% Total International 23.3% 24.2% 23.8% (ASEAN & Others) 22.2% 24.7% ASEAN ex- Malaysia 20.2% 19.1% 20.6% 8.0% 5.2% 5.6% Others 3.1% 3.2% FY2010
Slide 16: Maybank has made strides in its regional initiatives
Maybank has made strides in its regional initiatives Our regional platforms and products are aimed at enhancing our customer experience Implemented regional electronic platforms for Cash Management and Trade Finance. Global Banking Rolled out straight through processing of the Global Treasury Ri
Slide 17: Invest Malaysia 2014
Invest Malaysia 2014 Maybank: A Leading Malaysian Bank Maybank: Becoming a Regional Financial Services Leader Shareholder Return and Performance FY2014 Strategic Priorities Appendix: 1Q FY2014 Financial Results 16
Slide 18: Delivering on Shareholder Return
Delivering on Shareholder Return Maybank has seen a steady rise in earnings and through prudent cost management Summary of Analysts' Recommendations as at 30 May 2014 FY2013 PATAMI of RM6.55 Analysts' Target Price RM10.99 Net Profit (RM mil) billion was 4.5% ahead of Consensus: Coverage 25 analysts
Slide 19: Long Term Dividend Yield of Regional Banks
Long Term Dividend Yield of Regional Banks Maybank provides superior dividend yield amongst most regional banks Annual Dividend Yield 2007-2013 2013 Bangkok Bank Kasikorn Bank 2012 Siam Commercial Bank Rakyat 2011 BCA 2010 Mandiri OCBC 2009 UOB DBS 2008 CIMB 2007 Public Bank Maybank 0 2 4 6 8 10 12
Slide 20: Key Operating Ratios: ROE, NIM, Loan to Deposit and Cost to Income
Key Operating Ratios: ROE, NIM, Loan to Deposit ratio and Cost to Income ratio Maintaining good performance amidst challenging environment Return on Equity E (%) Net Interest Margin (%) 17.6 2.80 2.80 16.0 15.2 14.5 14.5 15.2 15.1 2.70 13.8 15.0 2.72 target 2.56 2.53 2.48 2.43 2.37 2.33 3.1 target F
Slide 21: Key Operating Ratios: NIL, Loan Loss Coverage and Capital Ratios
Key Operating Ratios: NIL, Loan Loss Coverage and Capital Ratios Improving asset quality and strong capital adequacy Net NPL / Net Impaired Loans Ratio (%) Loan Loss Coverage (%) 3.00 105.6 107.5 107.2 101.1 2.25 124.5 82.3 86.9 1.90 80.3 112.9 1.86 1.09 0.99 0.95 1.60 1.22 FY07 FY08 FY09 FY10 FY11
Slide 22: Loans and Deposits: Growth and Market Share
Loans and Deposits: Growth and Market Share Double digit loans and deposits growth and sustainable market share Group Loans and Deposits Growth 26.4 23.9 20.1 Loans Growth 25.1 16.9 Deposits Growth 13.6 12.9 14.0 13.9 11.4 19.4 14.3 11.3 13.1 14.0 10.5 10.3 7.2 FY07 FY08 FY09 FY10 FY11 PF11 FY12 FY1
Slide 23: Invest Malaysia 2014
Invest Malaysia 2014 Maybank: A Leading Malaysian Bank Maybank: Becoming a Regional Financial Services Leader Shareholder Return and Performance FY2014 Strategic Priorities Appendix: 1Q FY2014 Financial Results 22
Slide 24: Maybank Group Management Team
Maybank Group Management Team Embedding business and functional capabilities across the region Country Head, Malaysia Datuk Abdul Farid Alias Country Head, Indonesia Taswin Zakaria* Country Head, Singapore Datuk Lim Hong Tat 23
Slide 25: FY2014 Group Strategic Priorities
FY2014 Group Strategic Priorities The Group continues to expand on its platform to regionalise its operations 1 2 Productivity & 3 Business 4 Regionalisation Yield Effectiveness Portfolio Leadership in Transition to a Optimise product Optimise capital in profitable regional matrix lines ever
Slide 26: Invest Malaysia 2014
Invest Malaysia 2014 Maybank: A Leading Malaysian Bank Maybank: Becoming a Regional Financial Services Leader Shareholder Return and Performance FY2014 Strategic Priorities Appendix: 1Q FY2014 Financial Results 25
Slide 27: Overview
Overview Broader trends in the Malaysian market 1 Stable YoY economic growth but softer QoQ trends 2 Moderating consumer spend trend continues 3 But mitigated by some pick up in external demand and trade QoQ loans growth in Malaysia moderated, 4 more apparent in non-household segments Contracting de
Slide 28: Overview (1/2)
Overview (1/2) Group net profit for 1Q FY2014 rose 6.3% YoY to RM1.60 billion Contributed by: Net income growth at 2.4% YoY, supported by higher growth in fund- Net Profit growth of 6.3% YoY, based income of 7.6% but offset by slower fee income growth ROE at 13.8% Marginal growth in overheads
Slide 29: Overview (2/2)
Overview (2/2) Lower YoY GIL but slight uptick QoQ due to specific accounts Due to: Uptick in provisioning for Malaysia but GIL of 1.77% lower than Group GIL lower YoY, but QoQ rise 2.21% a year ago related to specific accounts Rise in Indonesia GIL to 2.98% from 1.96% a year ago was attributa
Slide 30: FY2014 Group Targets
FY2014 Group Targets Group will focus on picking up momentum in coming quarters Key Performance FY2014 Maybank Maybank Industry Peer Indicators Targets Achievement Achievement Average Average (1Q FY14)* (YoY) (YoY) (YoY) Headline KPI Return on Equity* 15.0% 13.8% - - - Other targets Group Loans Grow
Slide 31: 1Q FY2014 P&L Summary
1Q FY2014 P&L Summary Net Profit increased 6.3% YoY, led by higher net fund based income and managed overheads growth RM million 1Q FY14 1Q FY13 YoY 4Q FY13 QoQ Net interest income 2,392.8 2,427.4 (1.4)% 2,383.5 0.4% Net Fund based income (Islamic Banking) 731.5 475.3 53.9% 705.4 3.7% Net Fund Based
Slide 32: Overseas & Domestic Portfolio Mix 1Q FY2014
Overseas & Domestic Portfolio Mix 1Q FY2014 Overseas PBT contribution grew to 32%, from 31% in the corresponding period in 2013 Net Income Profit Before Tax Gross loans* 1Q FY14 (Jan 14 – Mar 14) Overseas: 7.7% Overseas: 15.1% Overseas: 7.8% 35.2% 31.9% 38.7% 8.1% 12.2% 4.0% RM4.44b 12.8% RM2.21b 22
Slide 33: Business Segment Performance 1Q FY2014 (1/2)
Business Segment Performance 1Q FY2014 (1/2) Net income rose 2.4% YoY driven by growth in international banking and CFS 2.4% 1Q FY2013 1Q FY2014 4,333 4,435 Global Banking (GB) -11.1% Net Income (RM million) 2.6% -0.1% -1.9% -36.4% 5.4% -6.3% 1,740 1,785 1,320 1,391 553 552 427 419 395 251 356 333 T
Slide 34: Business Segment Performance 1Q FY2014 (2/2)
Business Segment Performance 1Q FY2014 (2/2) Group registered higher net fund based income of 7.6% due to growth in international banking and CFS Net Fund Based Income rose 7.6% 7.6% 1Q FY2013 1Q FY2014 3,124 2,903 Global Banking (GB) -3.8% 2.4% -3.7% 4.2% -28.8% 5.0% 1.1% RM million 1,339 1,371 947
Slide 35: Fee based Income 1Q FY2014 (1/2)
Fee based Income 1Q FY2014 (1/2) Core fee income down 9.7% YoY due to lower investment and trading income 1Q FY2013 1Q FY2014 -9.7% 1,364 1,232 302.3% -8.7% -38.8% -12.1% -53.5% 102.3% -46.6% 860 785 455 RM million 279 228 144 57 79 77 -86 -97 37 -78 2 Total non-interest Commission, Investment & Unr
Slide 36: Fee based Income 1Q FY2014 (2/2)
Fee based Income 1Q FY2014 (2/2) Core fee income down 7.2% QoQ due to lower commission, service charges and fees -7.2% 4Q FY2013 1Q FY2014 1,327 1,232 -19.0% 65.8% -1.6% 13.2% -57.8% -98.9% -8.9% 969 785 RM million 279 202 228 185 168 87 84 77 -98 -97 37 2 Total non-interest Commission, Investment &
Slide 37: Group Loans Growth: 31 Mar 2014
Group Loans Growth: 31 Mar 2014 First quarter loans growth was higher 13.9% YoY but recorded YTD annualised growth of 5.3% % of 31 Mar 14 31 Dec 13 Annualised 31 Mar 13 YoY Portfolio Group Gross Loans * 366.6 361.8 5.3% - 322.0 13.9% Malaysia (RM billion)** 223.2 223.6 (0.7)% 61% 202.4 10.3% Communi
Slide 38: Malaysia Loans Growth: 31 Mar 2014
Malaysia Loans Growth: 31 Mar 2014 In Malaysia, consumer portfolio grew 9.6% on a YTD annualised basis, while non-consumer segments slowed % of RM billion 31 Mar 14 31 Dec 13 Annualised 31 Mar 13 YoY Portfolio Community Financial Services 154.5 151.9 6.9% 69% 138.9 11.3% Consumer 124.9 121.9¹ 9.6% 8
Slide 39: Group Deposit Growth: 31 Mar 2014
Group Deposit Growth: 31 Mar 2014 Annualised group deposit growth was flat due largely to a contraction in current account and fixed deposits 31 Mar 14 31 Dec 13 Annualised % of Portfolio 31 Mar 13 YoY Group Gross Deposits 395.7 395.6 0.0% - 355.4 11.3% Malaysia (RM billion) 258.2 259.1 (1.5)% 65% 2
Slide 40: LDR and CASA Ratio: 31 Mar 2014
LDR and CASA Ratio: 31 Mar 2014 Group LDR at 91.0% due to tighter liquidity, but CASA ratio is stable in Malaysia and Singapore offset by some contraction in Indonesia Group Malaysia LDR CASA 89.0% 87.5% 88.2% 89.9% 91.0% 86.6% 85.9% 86.6% 87.8% 87.9% 34.9% 34.2% 36.1% 36.1% 35.8% 40.5% 38.8% 40.7%
Slide 41: Key Operating Ratios
Key Operating Ratios Group’s operating ratios within guidance set for FY2014 Variance Variance (%) 1Q FY14 1Q FY13 4Q 2013 YoY QoQ Return on Equity 13.8 14.2 (0.4)% (2.1)% 15.9 Net Interest Margin 2.37 2.49 (12 bps) (1 bps) 2.38 Fee to Income Ratio 29.6 33.0 (3.4)% (4.5)% 34.1 Loans-to-Deposit Ratio
Slide 42: Overheads 1Q FY2014
Overheads 1Q FY2014 Group CIR improved with lower spending on IT and marketing related expenses Group overheads composition YoY (RM’ mil) 1Q FY2014 1Q FY2013 4Q FY2013 QoQ Personnel costs 1,237.3 1,221.5 1.3% 1,208.6 2.4% IT Expenses 105.9 142.5 (25.7)% 148.3 (28.6)% Marketing Expenses 135.3 162.8 (
Slide 43: Asset Quality: 31 Mar 2014
Asset Quality: 31 Mar 2014 GIL improved YoY to 1.52%, but recorded a rise since end-Dec position Allowance for losses on loans Group Impaired Loans Ratio Allowances for losses on loans Loan loss coverage Gross Impaired Loans Ratio Net Impaired Loan Ratio 107.5% 107.2% 103.5% 106.3% 3.23 2.84 99.0% 4
Slide 44: Asset Quality by Market
Asset Quality by Market Credit quality in Malaysia and Singapore showed YoY improvement, while Indonesia saw an uptick in impaired loans Malaysia Singapore BII Group GIL NIL 0.45 2.21 2.19 0.42 0.43 0.42 2.15 2.00 2.98 2.81 1.77 1.69 2.53 2.46 0.29 0.30 0.29 0.29 1.48 0.28 2.18 1.35 2.15 1.29 1.29 0
Slide 45: Capital Adequacy: 31 March 2014
Capital Adequacy: 31 March 2014 Total capital ratio at 15.11% (assuming 85% dividend reinvestment rate) and CET1 at 10.76% After proposed After proposed After proposed Before dividend, dividend, based on dividend, assuming proposed assuming 85% BNM’s Implementation 85% reinvestment dividend reinvest
Slide 46: Market Outlook
Market Outlook Key trends and developments that will affect the banking industry in 2014 Outlook Key Trends and Developments • Improved export flow, also • Domestic demand to moderate due to slower because of lower base effect in growth in consumer spending 1H 2013, when exports shrank. A • Firmer e
Slide 47: Maybank Performance Outlook
Maybank Performance Outlook Loan and deposit growth to improve in second quarter Pockets of loan growth opportunities for 2Q in consumer, 1 SME and corporate segments 2 More robust deposit gathering in 2Q Improved fee income growth on the back of better deal 3 Pipeline but brokerage & loan related f
Slide 48: Malayan Banking Berhad Investor Relations Contact
Humanising Financial Services Across Asia 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 Mohamed Rafique Merican Group Chief Financial Officer Contact: (6)03-2074 7878 Email: rafique
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