Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — Q1 2021 Earnings Presentation

47 slides from Malayan Banking Bhd's earnings presentation, May 27, 2021

  1. Slide 1: Investor Presentation: Financial Results 1Q FY2021

    Disclaimer: The contents of this document/information remain the intellectual property of Maybank and no part of this is to be reproduced or transmitted in any form or by any means, including electronically, photocopying, recording or in any information storage and retrieval system without the permi

  2. Slide 2: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  3. Slide 3: Maybank Group 1Q FY2021 Overview

    Maybank Group 1Q FY2021 Overview 1  Net operating income of RM6.83 billion, up 1.5% YoY, for 1Q FY2021 from:  Net fund based income increase of 7.0% as NIM expanded 8 bps YoY on 27.6% Group CASA growth coupled Business Income with full re-pricing from 2020 interest rate cuts driving lower funding

  4. Slide 4: Financing Support for Customers

    Financing Support for Customers % of Loans Under Repayment Assistance, Relief and R&R Programmes Against Respective Total Home Market Loans Malaysia: • May’20: Automatic moratorium (AM) for all individuals and SMEs effective 1 Apr to 30 Sep’20. 71.9% 68.2% • Aug’20: QoQ reduction as some borrowers o

  5. Slide 5: Continued Growth in Digital Solutions and Platforms

    Continued Growth in Digital Solutions and Platforms • Garnered a total of ~1.7 mil unique app installs as of 1Q 2021 Malaysia Solid with a combined app rating of 4.1 out of 5 • MAE always-on awareness campaign and CNY festive traction for • Strong momentum for MAE ewallet signups, growing by 50% QoQ

  6. Slide 6: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  7. Slide 7: P&L Summary: 1Q FY2021

    P&L Summary: 1Q FY2021 Fund based income growth and reduced overheads drove PPOP growth of 5.9% YoY More details 1Q 1Q 4Q on RM million YoY QoQ FY2021 FY2020 FY2020 s.22 Net fund based income * 4,648.2 4,344.5 7.0% 4,337.5 7.2% s.9/22 Net fee based income * 2,176.9 2,379.7 (8.5)% 1,975.2 10.2% s.20/

  8. Slide 8: Net Fund Based Income: 1Q FY2021 YoY Trends (1/2)

    Net Fund Based Income: 1Q FY2021 YoY Trends (1/2) Continued CASA growth across home markets, while Group loans expanded mainly from Malaysia and Singapore Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  +3.1%  +4.9%  +2.1%  (18.3)% 314.3 329.8 12

  9. Slide 9: Net Fund Based Income: 1Q FY2021 (2/2)

    Net Fund Based Income: 1Q FY2021 (2/2) NIM rebounded 16 bps QoQ as deposit costs reduces on continued CASA growth across home markets Net Interest Margin (%) QoQ Trend 2.31 2.23 5 Year Trend 2.15 2.05 1.96 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2.36 2.33 2.31 2.27 2.10 FY2017 FY2018 FY2019 FY2020 1Q FY2

  10. Slide 10: Net Fee Based Income: 1Q FY2021

    Net Fee Based Income: 1Q FY2021 YoY decline on lower investment disposal gains and MTM losses on derivatives, despite improvement in core fees 1Q 4Q 1Q RM million QoQ YoY FY2021 FY2020 FY2020 Commission, service charges and fees 1,026 1,089  (5.8)% 836  22.7% Investment & trading income 333 30  >

  11. Slide 11: Overheads: 1Q FY2021

    Overheads: 1Q FY2021 Continued cost management resulted in CIR of 41.3% and positive JAWs of 5.6% YoY for 1Q FY2021 1Q 1Q 4Q RM million YoY QoQ FY2021 FY2020 FY2020 Personnel Costs 1,722.7 1,727.0 (0.2)% 1,610.7 7.0% Establishment Costs 483.2 458.0 5.5% 493.5 (2.1)% Marketing Expenses 94.8 108.7 (12

  12. Slide 12: Asset Quality (1/2)

    Asset Quality (1/2) Top-ups in provisioning for existing impaired loans led to loan loss coverage of 122.2% (including Reg. Reserves) Allowances for losses on loans 122.2% 115.9% 106.8% 1Q FY2021 ECL includes: 99.2% Loan loss coverage incl. 89.5% • ~RM200 million in Regulatory Reserve management ove

  13. Slide 13: Asset Quality (2/2)

    Asset Quality (2/2) Group GIL reduced QoQ to 2.20% on write-offs, repayments and recovery proceeds received Group Gross Impaired Loans (GIL) Ratio Composition GIL Ratio Components Mar 2021 Dec 2020 Sep 2020 Jun 2020 Mar 2020 Non Performing Loans (NPL) 1.98% 2.02% 1.93% 2.03% 2.20% Restructured & Res

  14. Slide 14: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets QoQ trends across segments relatively stable, with uptick in Indonesia driven primarily from loan base contraction Consumer Mortgage Auto Finance Credit Cards 3.56% 3.12% 3.11% 7.98% 2.32% 7.16% 2.38% 1.88% 5.85% 2.22% 5.39% 5.46% 1.31% 2.44% 2.35% 1

  15. Slide 15: Strong Liquidity & Capital Positions: March 2021

    Strong Liquidity & Capital Positions: 31 March 2021 Healthy LCR of 138.5%, while Group CET1 capital ratio at 14.18% (assuming 85% reinvestment rate) After final dividend, Liquidity Risk Indicators Before proposed dividend assuming 85% reinvestment rate LCR LDR LTF LTFE 18.68% 18.08% 17.51% 146.6% Gr

  16. Slide 16: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  17. Slide 17: Market Outlook

    Market Outlook 2021 industry outlook for our home markets Key Indicators Outlook • Economic recovery expected to be gradual and uneven • GDP: 5.1% (2021F) vs -5.6% (2020) amid pandemic containment measures that include re- • System loan: 3.8% (2021F) vs 3.4% (2020) imposition of Movement Control Ord

  18. Slide 18: Maybank Performance Outlook

    Maybank Performance Outlook Group guidance for FY2021 Group’s Key Priorities and Guidance • Leverage fee-based income opportunities in wealth management, global markets, investment banking, asset management Income Growth and insurance. • Accelerate product rollouts on our digital platform to increas

  19. Slide 19: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  20. Slide 20: International & Malaysia Portfolio Mix 1Q FY2021

    International & Malaysia Portfolio Mix 1Q FY2021 Net Operating Income Profit Before Tax Gross Loans * 1Q FY2021 (Jan 21 – Mar 21) 3.6% Overseas: 6.0% Overseas: Overseas: 9.4% 7.6% 31.1% 26.3% 22.7% 37.8% 5.6% 15.7% RM6.83 RM3.17 RM534.4 billion billion # 24.6% billion 68.9% 62.2% 73.7% Malaysia Sing

  21. Slide 21: Segmental Performance of Businesses: 1Q FY2021 (1/2)

    Segmental Performance of Businesses: 1Q FY2021 (1/2) Net Operating Income 1Q FY2020 Group Global Banking  +2.4%  +1.5% 1Q FY2021 1Q FY2020: 2,724 1Q FY2021: 2,791 6,724 6,825  +1.4%  (4.4)%  +53.5%  +54.3%  +28.4% 3,447 3,495 RM million 2,401 2,294 298 457 300 386 26 40 Total Group Community

  22. Slide 22: Segmental Performance of Businesses: 1Q FY2021 (2/2)

    Segmental Performance of Businesses: 1Q FY2021 (2/2) Net Fund Based Income 1Q FY2020  +7.0% Group Global Banking  +5.0% 1Q FY2021 1Q FY2020: 1,382 1Q FY2021: 1,452 4,648 4,344  +1.7%  +4.5%  +17.3%  (8.7)%  +0.8% 2,603 2,647 RM million 1,321 1,381 315 318 60 70 1 1 Total Group Community Group

  23. Slide 23: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million 1Q FY2021 1Q FY2020 YoY 4Q FY2020 QoQ Net interest income 318.0 315.5 0.8% 318.0 (0.0)% Net earned premiums 2,529.2 1,944.9 30.0% 2,782.8 (9.1)% Other operating income (883.6) (792.0) 11.6% 72.4 (>100)% Total operating income 1,963.6 1,4

  24. Slide 24: Group Gross Loans Growth: March 2021

    Group Gross Loans Growth: 31 March 2021 % of 31 Mar 31 Dec YTD 31 Mar QoQ YoY Portfolio 2021 2020 Annualised 2020 Group Gross Loans 534.4 523.7  2.0%  8.1% 518.4  3.1% Malaysia (RM billion) 62% 329.8 326.7  0.9%  3.7% 314.3  4.9% Community Financial Services (reported) 76% 248.8 247.0  0.7% 

  25. Slide 25: Malaysia Loans Growth: March 2021

    Malaysia Loans Growth: 31 March 2021 % of 31 Mar 31 Dec YTD 31 Mar RM billion QoQ YoY Portfolio 2021 2020 Annualised 2020 Community Financial Services (reported) 76% 248.8 247.0  0.7%  3.0% 231.7  7.4% Community Financial Services (rebased)¹ 76% 248.8 247.0  0.7%  3.0% 231.7  7.4% Consumer 61%

  26. Slide 26: Group Deposits Growth: March 2021

    Group Deposits Growth: 31 March 2021 31 Mar 31 Dec YTD 31 Mar % of Portfolio QoQ YoY 2021 2020 Annualised 2020 Group Gross Deposits 599.6 580.2  3.4%  13.4% 543.8  10.3% Malaysia (RM billion) 62% 370.3 355.7  4.1%  16.5% 336.7  10.0% Savings Deposits 17% 62.5 56.8  10.0%  40.1% 48.8  28.1%

  27. Slide 27: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 95.2% 93.9% 92.5% 90.6% 90.1% 89.4% 88.7% 89.7% 87.8% 89.0% 42.8% 44.5% 40.2% 42.1% 38.4% 49.0% 41.1% 44.3% 47.1% 46.8% 39.6% 43.6% 39.1% 37.3% 35.1% 43.6% 39.7% 42.3% 41.7% 38.2% Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Mar 20 Jun 20 Sep 20 Dec

  28. Slide 28: RWA Optimisation and Funding Management

    RWA Optimisation and Funding Management Group Gross Loans & Group RWA Funding Breakdown Borrowings and Capital Instruments Operational RWA Market RWA by Currency Credit RWA Gross Loans FI Deposits, 6% JPY, HKD, IDR, 5% Equity, 11% 534.4 11% 7% CNH, 4% 518.4 523.7 THB, 3% RM, SGD, 2% 411.5 Borrowings

  29. Slide 29: Exposure to Oil & Gas and Real Estate Sectors: March 2021

    Exposure to Oil & Gas and Real Estate Sectors: 31 March 2021 Group Exposure to Direct & Indirect Oil & Gas Borrowers Real Estate Exposure to Maybank Group Malaysia Singapore Indonesia Others Non-Retail Malaysian Borrowers 2.45% 1.64% 0.55% 0.04% 0.22% High Rise Residential, Note: Others, 34.7% 29.5%

  30. Slide 30: Key Operating Ratios

    Key Operating Ratios % 1Q FY2021 1Q FY2020 YoY 4Q FY2020 QoQ Return on Equity 4 11.7 10.6 1.1% 7.7 4.0% Net Interest Margin 4 (bps) 2.31 2.23 8 bps 2.15 16 bps Fee to Income Ratio 31.9 35.4 (3.5)% 31.3 0.6% Loans-to-Deposit Ratio 1 89.0 95.2 (6.2)% 90.1 (1.1)% Cost to Income Ratio 2 41.3 43.7 (2.4)%

  31. Slide 31: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  32. Slide 32: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Market share Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Loans Total consumer (Household) 17.8% 17.9% 18.1% 18.1% 18.2% Auto (Hire Purchase + Block Discounting + Floor Stocking) 29.7% 30.3% 30.4% 30.4% 30.4% Total mortgage * 14.2% 14.3% 14.4

  33. Slide 33: Community Financial Services: Overview of Malaysia Portfolio

    Community Financial Services: Overview of Malaysia Portfolio Total CFS loans on an upward trend of 7.4% YoY and Total CFS deposits increased by 11.6% YoY driven by CASA 0.7% QoQ growth of 25.1%  +7.4% YoY  +11.6% YoY  +0.7% QoQ  +2.4% QoQ 231.7 247.0 248.8 205.3 223.8 229.2 43.8 47.8 48.7 69.0 6

  34. Slide 34: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  35. Slide 35: Global Banking: Malaysia Corporate Banking and Securities Portfolio

    Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio Total Corporate Banking loans in Malaysia decreased 2.6% Group Securities Portfolio¹ grew 14.8% YoY YoY to RM80.3 billion RM billion  +14.8% YoY 47.8 Term Loan 48.4 (0.8%) YoY 214.1 217.5 215.2 204.1 8.0 189.5 7.3

  36. Slide 36: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 1Q FY2021 Total Income Breakdown by Country 1Q FY2021 Fee-based Income for Malaysia Others Arranger's Fees HongKong 4% 14% 4% Other Fee Underwriting & Income Placements Fees 31% 0% Thailand 17% Malaysia RM457.4 48% million Philippines 1%

  37. Slide 37: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  38. Slide 38: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 1Q FY2021 1Q FY2020 YoY 4Q FY2020 QoQ Net fund based income 142.95 170.40 (16.1)% 125.54 13.9% Net fee based income 95.75 104.46 (8.3)% 131.27 (27.1)% Net income 238.70 274.86 (13.2)% 256.81 (7.1)% Overhead expenses (115.28) (121.16) (4.9)% (117.51) (1.9)%

  39. Slide 39: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Business deposits higher at 50.4% of total deposits % of 31 Mar 31 Dec 31 Mar SGD Billion QoQ YoY  +9.6% YoY Portfolio 2021 2020 2020 47.2 51.6 51.8 Consumer - Time CFS 58% 23.3 22.6 3.0% 21.9 6.5% Deposits Consu

  40. Slide 40: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  41. Slide 41: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary IDR billion 1Q FY2021 1Q FY2020 YoY 4Q FY2020 QoQ Net Fund Based income 1,748 2,024 (13.7)% 1,647 6.1% Net Fee Based income 453 598 (24.2)% 650 (30.2)% Net income 2,201 2,622 (16.1)% 2,297 (4.2)% Overhead expenses (1,421) (1,604) (11.4)% (1,295) 9.7% Personnel (655) (6

  42. Slide 42: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown % of 31 Mar 31 Dec 31 Mar Key Operating Ratio Mar-21 Dec-20 Mar-20 YoY IDR Trillion QoQ YoY Portfolio 2021 2020 2020 Profitability & Efficiency CFS 67.4% 68.6 70.8 (3.0)% 87.4 (21.5)% Ret

  43. Slide 43: Table of Contents

    Table of Contents Executive Summary 2 1Q FY2021 Financial Performance 6 Prospects & Outlook 16 Appendix: 1. Financial Performance 19 2. Community Financial Services 31 3. Global Banking 34 4. Maybank Singapore 37 5. Maybank Indonesia 40 6. Other Segments 43

  44. Slide 44: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM209.6 billion 12% Mar-20 RM million 1Q FY2021 1Q FY2020 YoY 63.1 Mar-21 56.1 9% Total Income 1,677.3 1,348.9 24.3% 14% 45.8 42.3 42.0 Profit Before Tax 1,317.9 608.7

  45. Slide 45: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 30.9% 30.7% 30.8% 30.8% 30.7% Key Products Mar 21 Mar 20 Automobile Financing 48.3% 48.0% 28.9% 27.6% 27.9% 27.0% 27.4% Home 26.7% 26.8% Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Term financing 27.2% 28.2% Financi

  46. Slide 46: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Net Adjusted Premium/Contribution Life & Family (New Business) Market Share (Malaysia) Single Premium  >100% Regular Premium  22.7% 21.5% 20.3% 19.1% 19.4% Credit Premium  (23.0)% 16.7% 13.1% 14.2% 18.3% No. 4 in Life/Family Group Premium  10.0% 14.4%

  47. Slide 47: Malayan Banking Berhad contact details

    MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the in

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