Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — UBS ASEAN Conference 2013

32 slides from Malayan Banking Bhd's conference presentation, Sep 17, 2013

  1. Slide 1: UBS ASEAN Conference

    UBS ASEAN Conference 17 & 18 September 2013, Singapore www.maybank.com

  2. Slide 2: Table of Contents

    Table of Contents Part 1: Overview of 2Q/1H FY2013 Financial Performance 2 Part 2: Strategic Priorities for Maybank Group 15 Appendix and Additional Data Financials 1) Key Group Operating Ratios 20 2) Summary of Maybank Singapore Financial Performance 21 3) Summary of BII Financial Performance 23 4)

  3. Slide 3: Group PATAMI for 1H FY2013 rises 10.4% YoY, on the strength of stronger 2Q results

    Group PATAMI for 1H FY2013 rises 10.4% YoY, on the strength of stronger 2Q results  Double-digit PATAMI growth of 10.4% for 1H FY2013  Group achieves PATAMI of RM3.07 billion, 10.4% YoY  PATAMI grows on the strength of higher net fund based income 8.2% YoY and net fee based income 8.0% YoY.  Ove

  4. Slide 4: Group gains good traction in 2Q FY2013

    Group gains good traction in 2Q FY2013 FY2013 Industry Key Performance Indicators 1Q FY13* 2Q FY13* 1H FY2013* Targets Average^ Headline KPI Return on Equity 15.0% 14.2% 14.7% 14.4% - Other targets Group Loans Growth 12.0% 5.8% 12.3% 9.1% - • Malaysia 12.0% 5.3% 13.4% 9.4% 10.1% • Singapore# 11.0% 6

  5. Slide 5: Net income growth of 8.1% YoY, supported by higher fund based income & fee based income

    Net income growth of 8.1% YoY, supported by higher fund based income & fee based income (RM‟ mil) 1H FY13 1H FY12 YoY 2Q FY13 1Q FY13 QoQ 2Q FY12 Restated* Net interest income 4,775.9 4,504.0 6.0% 2,364.6 2,411.3 (1.9)% 2,292.7 Net Fund based income (Islamic Banking) 982.0 816.9 20.2% 506.7 475.3 6.

  6. Slide 6: International PBT contribution increased to 31.5% from 28% a year earlier

    International PBT contribution increased to 31.5% from 28% a year earlier 1H FY13 Revenue Profit Before Tax Gross loans* International: 5.7% International: 9.8% International: 6.4% 13.6% 8.4% 33.6% 31.5% 6.9% 36.6% RM 9.28b 14.7% RM 4.22b 14.3% 21.8% RM 332.0b 66.4% 63.4% 68.5% 1H FY12 Malaysia Sing

  7. Slide 7: Revenue increased for all business segments YoY

    Revenue increased for all business segments YoY 1HFY12 (restated post-MFRS 10) 1HFY13 +8.1 % 9,283 Global Banking (GB) +6.0% 8,585 Revenue (RM million) +8.6% +7.6% 1.9% +8.7% +1.8% +19.4% 3,532 3,252 2,616 2,569 1,029 1,107 894 911 721 784 840 1,003 Total # Community Financial Corporate Banking Glob

  8. Slide 8: Core fee income segments posted solid YoY growth

    For 1H FY13, core fee income segments (commissions, service charges & fees and investment trading income) posted solid YoY growth Note: Based on restated figures for 1H FY13 post-MFRS 10 application 1H 2012 1H 2013 +5.3% 3,166 3,006 +7.6% 1,830 1,701 +40.6% (120.5%) (29.0%) (23.5%) (315.4%) +6.7% RM

  9. Slide 9: Group's domestic loans improves in the 2Q on stronger corporate, consumer and SME loans growth

    Group‟s domestic loans improves in the 2Q on the back of stronger corporate, consumer and SME loans growth QoQ RM billion 30 Jun 13 31 Dec 12 Annualised 31 Mar 13 30 Jun 12 YoY (Ann.) Community Financial Services 143.1 135.4 11.4% 138.9 12.1% 127.9 11.9% Consumer 114.6 108.3 11.8% 111.4 11.5% 101.0

  10. Slide 10: Loans growth of 12.3% in 2Q FY13 lifts Group's growth for 1H FY13 to 9.1%

    Loans growth of 12.3% in 2Q FY13 lifts Group‟s growth for 1H FY13 to 9.1% led by domestic growth of 9.4% and international growth of 8.4% QoQ 30 Jun 13 31 Dec 12 Annualised 31 Mar 13 (Ann.) 30 Jun 12 YoY International (RM billion) 119.4 114.6 8.4% 116.0 11.7% 108.5 10.0% Singapore (SGD billion) 28.0

  11. Slide 11: Group deposit growth of 14.6% with international deposits growing at 18.2%

    Group deposit growth of 14.6% with international deposits growing at 18.2% and domestic deposits at 12.7%, maintaining our No. 1 market share position domestically QoQ 30 Jun 13 31 Dec 12 Annualised 31 Mar 13 30 Jun 12 YoY (Ann.) Group Gross Deposits 372.5 347.2 14.6% 355.4 19.3% 340.3 9.5% Malaysia

  12. Slide 12: Group Loan to Deposit ratio eased and CASA ratio improved

    Group Loan to Deposit ratio (LDR) eased from end Dec 2012 and Group CASA ratio improved from 33.1% (end June 2012) to 34.2% (end June 2013) Group CASA LDR Malaysia 87.5% 86.9% 89.6% 89.0% 87.5% 86.3% 86.6% 82.6% 85.9% 81.6% 33.6% 33.1% 35.1% 34.9% 34.2% 38.4% 37.2% 40.7% 40.5% 38.8% Dec 11 Jun 12 De

  13. Slide 13: Gross Impaired Loans improves from 2.00% to 1.86%

    Gross Impaired Loans (GIL) improves from 2.00% as at end of June 2012 to 1.86% as at end of June 2013 Allowance for losses on loans Group Impaired Loans Ratio Loans loss coverage Allowance for losses on loans Net Impaired Loan Ratio Gross impaired loan ratio 4.67% 4.20% 94.5 104.2 104.7 105.6 99.0 1

  14. Slide 14: Robust capital ratios under Basel 3

    Robust capital ratios under Basel 3 Before Assuming 85% Based on BNM‟s proposed reinvestment Implementation dividend rate Guideline* 14.76% 14.51% 14.46% 15.85% Group 12.15% 11.90% 11.85% 12.44% 10.32% 10.07% 10.02% 10.22% Jun 13 Jun 13 Jun 13 Dec 12 CET 1 Capital Ratio Tier 1 Capital Ratio Total Ca

  15. Slide 15: Table of Contents

    Table of Contents Part 1: Overview of 2Q/1H FY2013 Financial Performance 2 Part 2: Strategic Priorities for Maybank Group 15 Appendix and Additional Data Financials 1) Key Group Operating Ratios 20 2) Summary of Maybank Singapore Financial Performance 21 3) Summary of BII Financial Performance 23 4)

  16. Slide 16: Third Largest Bank in ASEAN with an Expanding Regional Model

    Third Largest Bank in ASEAN* with an Expanding Regional Model PHILIPPINES SINGAPORE INDONESIA CAMBODIA THAILAND MYANMAR MALAYSIA VIETNAM MARKET TOTAL BRUNEI LAOS BANK CAP ASSETS 12 Sept 13 30 Jun 13 (USD bil) (USD bil) 1 DBS 31.5 304 2 OCBC 27.4 247 3 MAYBANK 26.8 169 4 UOB 25.6 216 5 BCA 22.0 46 6

  17. Slide 17: Continue to Focus on Growth Strategies in Home Markets

    Continue to Focus on Growth Strategies in Home Markets Malaysia • Continue to maintain our strong brand and leadership position in the domestic market. • Expected to continue with ETP investment momentum in medium to long term • Largest network domestically and emerging regional leader with presence

  18. Slide 18: And Expand Focus in Other Parts of the Region

    … And Expand Focus in Other Parts of the Region Hong Kong and Greater China • Capture opportunities in trade financing and corporate banking business within the region. • Leverage on regional network to capture the cross border transactional banking market. Indochina • Facilitate economic growth in

  19. Slide 19: Proactive Risk Management Strategy for the Group

    Proactive Risk Management Strategy for the Group 2H FY2013 Outlook Proactive Risk Management Strategy „Stable‟ on the back of  Focus on targeted customer segments/portfolios, guided by supportive economic appropriate risk appetite and Responsible Financial Guidelines environment (interest rate,  R

  20. Slide 20: Table of Contents

    Table of Contents Part 1: Overview of 2Q/1H FY2013 Financial Performance 2 Part 2: Strategic Priorities for Maybank Group 15 Appendix and Additional Data Financials 1) Key Group Operating Ratios 20 2) Summary of Maybank Singapore Financial Performance 21 3) Summary of BII Financial Performance 23 4)

  21. Slide 21: 1. Key Group Operating Ratios

    1. Key Group Operating Ratios (%) 1H FY13 1H FY12 Variance 2Q FY13 1Q FY13 Variance 2Q FY12 Return on Equity 14.4 16.0 (1.6)% 14.7 14.2 0.5% 16.4 Net Interest Margin (post-MFRS 10) 2.45 2.48 (3 bps) 2.42 2.47 (3 bps) 2.49 Net Interest Margin (pre-MFRS 10) 2.34 2.37 (3 bps) 2.32 2.37 (5 bps) 2.42 Fee

  22. Slide 22: 2. Summary of Maybank Singapore Financial Performance (1/2)

    2. Summary of Maybank Singapore Financial Performance (1/2) SGD‟ mil 1H FY2013 1H FY2012* YoY (%) 1Q FY13 QoQ (%) Net Fund Based income 208.11 208.66 -0.3% 102.4 -3.1% Net Fee Based income 125.28 129.64 -3.4% 52.5 -27.8% Net income 333.39 338.3 -1.5% 154.9 -13.2% Overhead expenses 144.55 142.50 1.4%

  23. Slide 23: 2. Summary of Maybank Singapore Financial Performance (2/2)

    2. Summary of Maybank Singapore Financial Performance (2/2) Diversified Loan Portfolio 5.9%  Loans portfolio reached S$27.9b as of Jun 2013, 11% annualised YoY growth as corporate loan expanded at a faster 25.1 27.2 27.9 Other (Consumer) pace. 1.4 1.5 1.7 3.2 3.1 2.9 Car Loan  Business loans came

  24. Slide 24: 3. Summary of BII Financial Performance (1/2)

    3. Summary of BII Financial Performance (1/2) IDR‟ bil 2Q 2013 1Q 2012 QoQ 1H 2013 1H 2012 YoY Net Fund Based income 1,430.0 1,380.0 4.0% 2,810.0 2,577.0 9.0% Net Fee Based income 528.0 638.0 (17.0)% 1,166.0 1,111.0 5.0% Net income 1,958.0 2,018.0 (3.0)% 3,976.0 3,688.0 8.0% Overhead expenses (1,363

  25. Slide 25: 3. Summary of BII Financial Performance (2/2)

    3. Summary of BII Financial Performance (2/2) Loans composition (IDR trillion) (Consolidated) Net Interest Margin (Consolidated) Loans growth of 16% YoY and LDR improved to 91.52% 85.1 NIM decreased to 5.34% 80.9 79.7 73.5 28.3 29.3 31.1 37% 5.89% 26.7 5.73% 5.32% 5.34% 23.5 27.1 27.6 30.2 36% 23.3

  26. Slide 26: 4. Asset Quality by Market

    4. Asset Quality by Market Malaysia Singapore Indonesia (BII) NIL GIL 0.62 2.2% 2.89 0.53 0.53 2.1% 2.2% 2.0% 0.46 1.8% 0.45 2.23 0.44 2.21 2.10 2.19 2.00 2.01 1.3% 0.33 0.32 0.32 0.32 1.59 0.31 1.1% 1.1% 1.1% 1.49 1.48 0.29 1.0% 1.28 1.33 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Mar 12 Jun 12 Sep

  27. Slide 27: 5. Group Securities Portfolio

    5. Group Securities Portfolio Global Markets‟ PBT and Revenue contracted by 7.6% and Group Securities Portfolio grew 32.2% YoY 0.4% YoY respectively* +32.2% YoY -0.4% -7.6% 93.9 86.1 517 595 593 80.4 8.6 RM million 478 71.0 71.1 6.3 7.4 Others 260 235 5.2 5.0 37.7 37.6 PDS 28.7 29.3 33.9 Govt. Secur

  28. Slide 28: Table of Contents

    Table of Contents Part 1: Overview of 2Q/1H FY2013 Financial Performance 2 Part 2: Strategic Priorities for Maybank Group 15 Appendix and Additional Data Financials 1) Key Group Operating Ratios 20 2) Summary of Maybank Singapore Financial Performance 21 3) Summary of BII Financial Performance 23 4)

  29. Slide 29: 1. Regional Banking Position

    1. Regional Banking Position Total Assets (USD bil): 30 June 2013 Loans and Deposits (USD bil): 30 June 2013 DBS 304 DBS 205 187 OCBC 247 UOB 149 136 UOB 216 OCBC 139 125 Maybank 169 No. 4 Maybank 117 No. 4 105 CIMB 115 CIMB 81 70 Public 92 Public 76 66 Siam Commercial 78 Siam Commercial 56 54 Mandi

  30. Slide 30: 2. Malaysian Consumer Banking Market Share

    2. Malaysian Consumer Banking Market Share Dec-11 Dec-12 Mar-13 Jun-13 MBB Rank Loans Total Consumer/Household 16.4% 17.0% 17.1% 17.1% 2 Auto (Purchase of transport vehicles) 19.2% 20.2% 20.3% 20.5% 2 Total Mortgage* 13.2% 13.4% 13.3% 13.3% 2 Credit Cards # 15.3% 15.2% 15.3% 15.4% 2 Unit Trust 63.9%

  31. Slide 31: 3. Domestic League Tables and Corporate Deals

    3. Domestic League Tables and Corporate Deals Malaysia League Table – Mergers & Acquisitions NOTABLE DEALS COMPLETED FROM MAR – JUN 2013 2013 2012 2011 Indonesia Ranking Market Market Market Advisor Advisor Advisor Share Share Share 1 CIMB 41.6% Maybank 34.3% CIMB 36.8% Goldman Sachs 2 Maybank 38.4%

  32. Slide 32: 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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