Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q1 2015 Earnings Presentation
53 slides from Malayan Banking Bhd's earnings presentation, May 28, 2015
Slide 1: Investor Presentation: Financial Results 1Q FY2015
Humanising Financial Services Investor Presentation Financial Results First Quarter FY2015 ended 31 March 2015 28 May 2015 www.maybank.com 0
Slide 2: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 1 Results: 1st Quar
Slide 3: Group Overview
Group Overview Maybank’s strong 1Q FY2015 performance driven by higher fee income and loans growth Net profit growth of 6.2% YoY to RM1.70 billion, supported by 1 higher fee and fund based income Group loans growth of 8.4% (ann.) within reach of FY2015 2 guidance, supported by growth in regional CFS
Slide 4: Results Overview (1/2)
Results Overview (1/2) Group net profit for 1Q FY2015 grew 6.2% YoY to RM1.70 billion Higher net profit was contributed by: Net profit growth Net operating income growth of 12.5% YoY, with higher income registered across all business of 6.2% YoY, pillars: ROE at 12.8% • Global Banking +11.8% • C
Slide 5: Results Overview (2/2)
Results Overview (2/2) Strong balance sheet growth with stable Group asset quality Supported by: Group loans International loans growth of 11.3%, led by growth in Labuan Offshore at 42.8%, the growth of 8.4% Philippines at 32.5%, Greater China at 15.6% and Indonesia at 5.0% YTD (ann.) Malaysia
Slide 6: 1Q FY2015 Headline Key Performance Indicators
1Q FY2015 Headline Key Performance Indicators Group to focus on picking up momentum in three home markets for coming quarters Annualised YoY Key Performance Maybank Maybank Indicators FY2015 Industry Peer Industry Peer Achievement Achievement Guidance Average Average Average Average (1Q FY2015) (1Q
Slide 7: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 6 Results: 1st Quar
Slide 8: P&L Summary: 1Q FY2015
P&L Summary: 1Q FY2015 Net profit rose 6.2% YoY to RM1.70 billion, led by higher revenue growth of 12.5% More details RM million 1Q FY2015 1Q FY2014 YoY 4Q FY2014 QoQ on s.11 Net fund based income * 3,415.4 3,124.3 9.3% 3,137.5 8.9% s.11 Net fee based income * 1,572.1 1,310.8 19.9% 1,941.0 (19.0)% F
Slide 9: Unaudited Income Statement for Insurance and Takaful Business
Unaudited Income Statement for Insurance and Takaful Business Lower operating profit for 1Q FY2015 due to lower equity gain as a result of higher impairment RM million 1Q FY2015 1Q FY2014 YoY Interest income 236.5 233.2 1.4% Interest expense (8.4) (5.1) 65.7% Net interest income 228.1 228.1 0.0% Net
Slide 10: International & Malaysia Portfolio Mix 1Q FY2015
International & Malaysia Portfolio Mix 1Q FY2015 International contribution to Group revenue and PBT at 34.5% and 29.5% respectively Net Income Profit Before Tax Gross loans* 1Q FY2015 (Jan 15 – Mar 15) Overseas: 6.5% Overseas: Overseas: 34.5% 29.5% 13.2% 40.9% 9.8% 12.5% 3.9% 7.6% RM4.99b 12.4% RM2
Slide 11: Business Segment Performance 1Q FY2015 (1/2)
Business Segment Performance 1Q FY2015 (1/2) Net operating income growth of 12.5% supported by strong growth in Global Banking, CFS and International Banking Net Operating Income 1Q FY2014 +12.5% 1Q FY2015 Global Banking (GB) +11.8% 4,988 4,435 +10.0% +3.0% +12.1% +26.7% +49.1% +6.6% +0.1% 1,963 RM
Slide 12: Business Segment Performance 1Q FY2015 (2/2)
Business Segment Performance 1Q FY2015 (2/2) Stronger net fee based growth of 19.9% driven by CFS Malaysia and Global Banking units Net Fund Based Income 1Q FY2014 +9.3% 1Q FY2015 Global Banking (GB) +7.0% 3,415 3,124 +7.1% +7.7% +3.4% +19.8% -113.3% +21.7% +0.8% RM million 1,371 1,468 994 1,209 385
Slide 13: Net Fee Based Income: 1Q FY2015
Net Fee Based Income: 1Q FY2015 Other operating income grew 26.7% YoY on higher commission, service charges and fees and foreign exchange gain 1Q FY2014 1Q FY2015 +26.7% +19.4% -14.7% +54.8% +122.4% +46.4% +7.0% +19.3% +59.0% 1,561 1,232 937 987 922 785 RM million 423 279 238 190 122 37 54 77 (58) (
Slide 14: Group Loans Growth: 31 Mar 2015
Group Loans Growth: 31 Mar 2015 Group loans growth of 8.4% (ann.) led by International loans growth of 11.3% (ann.) 31 Mar 31 Dec YTD % of 31 Mar YoY 2015 2014 Annualised Portfolio 2014 Group Gross Loans¹ 419.0 410.5 8.4% - 366.6 14.3% Malaysia (RM billion) ² 245.9 243.6 3.8% 59% 223.2 10.2% Communi
Slide 15: Malaysia Loans Growth: 31 Mar 2015
Malaysia Loans Growth: 31 Mar 2015 Consumer portfolio grew 9.2% (ann.), driven by strong growth in credit cards, mortgage and auto finance 31 Mar 31 Dec YTD % of 31 Mar RM billion YoY 2015 2014 Annualised Portfolio 2014 Community Financial Services 171.8 168.8 7.2% 70% 154.5 11.2% Consumer 138.9 135
Slide 16: Group Deposit Growth: 31 Mar 2015
Group Deposit Growth: 31 Mar 2015 Group deposit growth of 6.8% (ann.) led by stronger deposit mobilisation in international markets YTD 31 Mar 2015 31 Dec 2014 % of Portfolio 31 Mar 2014 YoY Annualised Group Gross Deposits 447.1 439.6 6.8% - 395.7 13.0% Malaysia (RM billion) 278.6 278.3 0.4% 62% 258
Slide 17: LDR and CASA Ratio: 31 Mar 2015
LDR and CASA Ratio: 31 Mar 2015 Group CASA ratio stable while CASA ratios in Malaysia and Indonesia improved due to higher current account growth Group LDR CASA Malaysia 91.0% 90.6% 90.6% 91.8% 92.2% 87.9% 89.5% 91.5% 86.8% 83.9% 40.0% 39.9% 38.1% 39.9% 41.2% 35.8% 35.7% 34.5% 35.3% 35.4% Mar 14 Jun
Slide 18: Key Operating Ratios
Key Operating Ratios Overall operating ratios expected to remain stable through FY2015 Variance Variance (%) 1Q FY2015 1Q FY2014 4Q FY2014 YoY QoQ Return on Equity 12.8 13.8 (1.0)% (3.1)% 15.9 Net Interest Margin 2.26 2.37 (11 bps) 6 bps 2.20 Fee to Income Ratio 31.5 29.6 1.9% (6.7)% 38.2 Loans-to-D
Slide 19: Overheads: 1Q FY2015
Overheads: 1Q FY2015 Group CIR remained within internal threshold despite overheads growth Group overheads composition (RM’ mil) 1Q FY2015 1Q FY2014 YoY 4Q FY2014 QoQ Personnel Costs 1,419.3 1,237.3 14.7% 1,351.8 5.0% IT Expenses 99.4 105.9 (6.2)% 169.4 (41.4)% Establishment Costs 279.0 255.5 9.2% 2
Slide 20: Asset Quality: Mar 2015
Asset Quality: 31 Mar 2015 Group GIL improved YoY to 1.50%, with loan loss coverage at a comfortable level Allowance for losses on loans Group Impaired Loans Ratio Loan loss coverage Gross Impaired Loans Ratio (%) Allowances for losses on loans Net Impaired Loans Ratio (%) 107.2% 107.7% 95.6% 1.89 9
Slide 21: Asset Quality by Market
Asset Quality by Market Improved credit quality in Malaysia, with uptick in Singapore and Indonesia due to specific accounts Malaysia Singapore BII Group Gross Impaired Loans Ratio (%) Net Impaired Loans Ratio (%) 0.30 3.53 3.49* 2.04 0.29 3.32 3.24 1.85 0.26 2.98 1.77 1.75 1.71 0.24 0.24 0.23 0.21
Slide 22: Capital Adequacy: 31 Mar 2015
Capital Adequacy: 31 Mar 2015 Total capital ratio at 15.35% (assuming 85% dividend reinvestment rate) and CET1 at 11.15% After proposed After proposed After proposed Before dividend, dividend, based on dividend, assuming proposed assuming 85% BNM’s Implementation 85% reinvestment dividend reinvestme
Slide 23: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 22 Results: 1st Qua
Slide 24: Market Outlook
Market Outlook Key trends and developments affecting the banking industry in second quarter Key Indicators Outlook • GDP(f) 4.9% (2014: 6%) • Consumer lending to moderate in 2Q, post-GST • System loan(f) 7-8% • Competition for retail deposits to persist • System deposit(f) 6-7% • Ongoing infrastruct
Slide 25: Maybank Performance Outlook
Maybank Performance Outlook Group performance in second quarter to remain supported by loan and fee income growth Pockets of loan growth opportunities in consumer, 1 SME and corporate segments 2 Continued growth in key international markets Fee income growth supported by better deal 3 pipeline and b
Slide 26: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 25 Results: 1st Qua
Slide 27: Community Financial Services (1/4)
Community Financial Services (1/4) Advancing our domestic market share in retail CASA deposits and holding steady in consumer loans *Refers to housing and shophouse loan **Credit cards market share refer to Receivables for commercial banks ^Based on latest available data 26
Slide 28: Community Financial Services (2/4)
Community Financial Services (2/4) Growth in HNW and Affluent customer segments on the back of continued consumer loans growth HNW & Affluent Customer TFA grew 11.8% YoY with Consumer loans grew 9.2% (ann.) to RM138.9 billion higher product cross sell ratio 150.4 153.5 138.9 145.3 135.7 141.6 131.3
Slide 29: Community Financial Services (3/4)
Community Financial Services (3/4) Sustained deposit growth of 8.4% (ann.), from Consumer, SME and BB portfolios CFS deposits grew 8.4%* (ann.) for 1Q FY2015 driven Consumer deposits grew 8.6% (ann.) by Consumer, SME and BB deposit growth 190.0 119.4 186.6 116.9 178.7 186.1* 114.1 174.2 112.4 169.6
Slide 30: Community Financial Services (4/4)
Community Financial Services (4/4) Strong credit asset quality with continued improvement in CFS GIL 4,800CFS GIL improved QoQ to 1.9% in 1Q 2015 from Consumer GIL held steady while Retail SME/BB improved QoQ 2.0% in 4Q 2014 3,658 3,457 3,334 3,600 2,872 2,813 2,400 2.2% 2.0% 1.9% 1.9% 1.8% 1,200 -
Slide 31: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 30 Results: 1st Qua
Slide 32: Global Banking (1/4)
Global Banking (1/4) Corporate banking loans lower by 3.9% (ann.) for 1Q FY2015 Total GB loans decreased by 3.9% (ann.) to RM74.1 billion Trade Finance market share ¹ but grew 8.0% YoY 25.8% 25.5% 25.4% RM billion -3.6% 24.8% 34.7 24.6% YoY Term Loan 35.0 36.0 Mar'14 Jun'14 Sep'14 Dec'14 Mar'15 37.1
Slide 33: Global Banking (2/4)
Global Banking (2/4) Revenue growth for Global Markets’ business regionally was 3.9% YoY PBT and Revenue grew by 0.7% and 3.9% YoY respectively Group Securities Portfolio grew 1.5% YoY Net interest income +1.5% YoY Non-interest income +0.7% +3.9% 102.3 107.8 104.6 103.8 101.0 687.8 10.6 11.8 9.2 10.
Slide 34: Global Banking (3/4)
Global Banking (3/4) Notable deals completed from January to March 2015 Malaysia Singapore Malaysia Malaysia Turkey Malaysia Pacific Andes Resources KT Kira Sertifikalari Varlik Gamuda Berhad Sapurakencana TMC Sdn Bhd PETRONAS Capital Ltd PETRONAS Global Sukuk Ltd Dev’t Kiralama A.Ş. USD 2.32 billio
Slide 35: Global Banking (4/4)
Global Banking (4/4) Maybank Kim Eng’s PBT increased 53.7% YoY to RM55.5 million for 1Q FY2015 1Q FY2015 Total Income (RM’Mil) Total Income for Maybank Kim Eng increased by 26.7% YoY Hong Kong, Others, RM15.9 (5%) RM14.6 (5%) +26.7% YoY Philippines, RM14.5 (5%) Malaysia, Total RM88.4 (28%) Indonesia
Slide 36: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 35 Results: 1st Qua
Slide 37: Maybank Singapore (1/3)
Maybank Singapore (1/3) First quarter PBT of S$93.75 million on lower fee-based income (SGD mil) 1Q FY2015 1Q FY2014 YoY Net Fund Based income 132.00 116.76 13.1% Net Fee Based income 60.61 83.39 (27.3)% Net income 192.62 200.16 (3.8)% Overhead expenses 87.72 81.05 8.2% Operating profit 104.90 119.1
Slide 38: Maybank Singapore (2/3)
Maybank Singapore (2/3) Loans lower by 1.1% YTD, but strong YoY growth of 11.6% spurred by consumer lending Diversified Loan Portfolio As at 31 March 2015, total loans were lower by +11.6% YoY 1.1% (ann.), due to slower corporate lending. -1.1% ann. However, consumer lending continued to show 31.3
Slide 39: Maybank Singapore (3/3)
Maybank Singapore (3/3) Stable deposit base QoQ, and outpaced industry growth on a YoY basis Consumer deposits account for 58% of deposit base CASA growth of 11.4% YoY +17.1% YoY - 3.9% ann. 33.5 39.6 39.2 Time Consumer - Time Deposits Deposits 24.8 29.7 29.6 15.4 17.6 17.9 Consumer CASA SGD billion
Slide 40: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 39 Results: 1st Qua
Slide 41: Bank Internasional Indonesia (1/4)
Bank Internasional Indonesia (1/4) Net profit rose 33% YoY on the back of higher net fee based income and net fund based income (IDR bil) 1Q FY2015 1Q FY2014 YoY 4Q FY2014 QoQ Net Fund Based income 1,586 1,447 10% 1,603 (1)% Net Fee Based income 621 493 26% 420 48% Net income 2,207 1,940 14% 2,022 9
Slide 42: Bank Internasional Indonesia (2/4)
Bank Internasional Indonesia (2/4) Loans and deposit growth (ann.) increased by 5.2% and 10.0% respectively Loans composition (Consolidated) Net Interest Margin (Consolidated) IDR Trillion 6.2% YoY 5.2% ann. 102.0 101.3 106.3 107.6 35.8 36.7 41.5 42.1 4.94% 4.76% 4.85% 4.73% 35.3 36.1 40.8 41.6 30.9
Slide 43: Bank Internasional Indonesia (3/4)
Bank Internasional Indonesia (3/4) BII Finance’s PBT increased 39.7% YoY Revenue and Profit Before Tax Consumer Financing IDR billion IDR billion 220 27.5% YoY 173 3,794 39.7% YoY 103 74 2,975 Mar-14 Mar-15 Mar-14 Mar-15 Revenue Profit Before Tax Asset Quality Unit Financing (unit) 2.5% YoY 3.7% YoY
Slide 44: Bank Internasional Indonesia (4/4)
Bank Internasional Indonesia (4/4) WOM Finance revenue increased 17.5%; asset quality remained healthy Revenue and Profit Before Tax Consumer Financing IDR billion IDR billion 416 20.7% YoY 354 4,443 3,681 12 1 Mar-14 Mar-15 Mar-14 Mar-15 Revenue Profit Before Tax Asset Quality Unit Financing (‘000
Slide 45: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 44 Results: 1st Qua
Slide 46: Islamic Banking (1/2)
Islamic Banking (1/2) Higher Group Islamic Banking PBT of 8.5% for 1Q FY2015 on increased fund- and fee-based income Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew by 30% (annualised) to RM116.8 billion S25% Dec-14 Mar-15 S30% S14% RM million 1Q FY2015 1Q FY2
Slide 47: Islamic Banking (2/2)
Islamic Banking (2/2) Maybank Islamic Malaysia’s financing market share strengthened to 33.0% from 30.7% a year ago Maybank Islamic Market Share (Malaysia) Market Share by Product 35.0% 32.7% 33.0% 31.6% Mar-15 Mar-14 30.6% 30.7% 31.1% 30.0% Automobile financing 40.7% 35.8% Home Financing 26.1% 23.5
Slide 48: Insurance and Takaful
Insurance and Takaful Gross premiums for combined life/family and general increased 7.3% YoY for 1Q FY2015 Gross Premium Life / Family (New Business) Market Share Single Premium -61.1% AIA Ins. & Tak. 17.8% Regular Premium +17.2% 1Q FY15 GE Ins. & Tak. 14.7% Credit Premium No. 4 in Life/Family +9.3%
Slide 49: Maybank Philippines
Maybank Philippines Revenue growth of 20.5% in line with expansion activities in market Key Highlights Revenue and PBT Revenue improved 20.5% YoY due to higher net +20.5% YoY interest income and non-interest income. 1,127.4 Gross loans grew 8.1% (ann.) driven by an increase in 935.9 Revenue PESO
Slide 50: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 31 3. Maybank Singapore 36 4. Bank Internasional Indonesia 40 5. Other segments 45 6. Affiliates 50 Financial 49 Results: 1st Qua
Slide 51: An Binh Bank
An Binh Bank Revenue grew 32.7% YoY attributed to higher fee income Key Highlights Revenue and PBT +32.7% YoY Revenue grew 32.7% primarily due to higher fee income. 493.2 However, higher provisioning resulted in PBT declining 371.7 Revenue 16.4% YoY for 1Q FY2015. VND Bil -16.4% YoY PBT Gross
Slide 52: MCB Bank
MCB Bank Improved PBT on the back of higher income and lower provisions Key Highlights Revenue and PBT PBT increased by 39.5% YoY mainly due to higher non- +33.3% YoY interest income and lower provisioning YoY. 17.2 +39.5% YoY Gross loans contracted slightly by 0.5% (ann.) due to 12.9 Revenue 12
Slide 53: Malayan Banking Berhad contact details
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 Mohamed Rafique Merican Group Chief Financial Officer Contact: (6)03-2074 7878 Email: rafique@maybank.com
Malayan Banking Berhad (Maybank) — Q1 2015 Earnings Presentation on 6ix