AMMB Holdings Bhd. · MYX:AMBANK
AMMB Holdings Bhd — H1 FY2009 Earnings Presentation
25 slides from AMMB Holdings Bhd's earnings presentation, Nov 11, 2008
Slide 1: AmBank Group FY2009 1H Results
AmBank Group FY2009 1H Results AMMB Holdings Berhad [Abridged Version] Please contact us for full version 11 November 2008 Cheah Tek Kuang Group Managing Director
Slide 2: Record Profit but Challenges Ahead
Record Profit but Challenges Ahead • Another record profit performance for 1H FY2009 • On track to deliver greater than 30% growth in PATMI for FY2009 (vs FY2008) [Abridged Version] Please contact us for full version • Tough economic & market conditions ahead, stimulus package to kickstart economy •
Slide 3: Delivered Another Record Profit Performance
Delivered Another Record Profit Performance H1 FY09 1 Change 2 Profit Profit after after Tax Tax & & MI MI RM 433.0 mil 71.0 % Profit Profit before before Tax RM 599.3 mil 7.0 % [Abridged Version] Please contact us for full version Tax Return Return on on Equity Equity 11.9% 2.0 % EPS EPS (fully (fu
Slide 4: Developments
Targeted Loans Growth, Improved Asset Quality, Corporate Restructuring • Average loans growth of 11.8% • Average deposits growth of 7.9% with CASA growth of 12.1% Financials [Abridged Version] Please contact us for full version • Asset Quality • Net provisions charge down to 0.3% • Net NPL ratio dow
Slide 5: Improved PATMI Underpinned by Retail & Business Banking
Improved PATMI Underpinned by Retail & Business Banking Profit after Tax & MI H1FY09 vs RM’mil H1FY08 H1FY09 H1FY08 Business Performance Retail Banking Division 228.4 326.8 +43.1% Investment banking performance reflecting weak Business Banking Division equity and capital market [Abridged Version]
Slide 6: Sound Profit, despite Income & Expense Pressures
Sound Profit, despite Income & Expense Pressures H1FY09 vs REPORTED RM’mil H1FY08 H1FY09 H1FY08 Business Performance Income Underlying : 1,620.7 1,529.5 -5.6% Adjusted for one-off’s provisioning policy Expenses 739.2 807.5 +9.3% changes, deferred tax write offs etc Income : PBP 881.6 722.0 -18.1%
Slide 7: Balance Sheet Fundamentals Looking Good
Balance Sheet Fundamentals Looking Good REPORTED RM’mil H1FY09 vs H1FY09 H1FY08 Business Performance H1FY08 Balance Sheet - Lending Gross loans 54,695.1 59,347.1 +8.5% Good net lending growth despite HP [Abridged Version] Please contact us for full version focus being only on profitable Net loans
Slide 8: Higher Returns and Earnings Ratios
Higher Returns and Earnings Ratios H1FY09 vs REPORTED H1FY09 H1FY08 Business Performance H1FY08 Profitability Ratios (annualised) ROE FY 2008 = 11.2% [Abridged Version] Please contact us for full version ROE (post-tax) 9.9% 11.9% +2.0% ROA FY 2008 = 1.00% ROA (post-tax) 0.88% 1.06% +0.2% EPS F
Slide 9: Improving Margins from Focus on Profitable Segments
Improving Margins from Focus on Profitable Segments H1FY09 vs REPORTED H1FY08 H1FY09 H1FY08 Business Performance Efficiency Ratios & Others Cost-Income : Net Interest Margin 1 2.68% 3.04% +0.36% Revenue growth impacted by tough [Abridged Version] Please contact us for full version trading conditio
Slide 10: Deposits Composition Continues to Improve
Deposits Composition Continues to Improve CUSTOMER DEPOSITS BY SOURCES CUSTOMER DEPOSITS BY TYPE Individuals Government Biz enterprises Others FD + NID Savings Current Others CASA 12.8% 13.1% 13.3% composition 2.1 0.8 1.6 Total 45.3b 47.8b 48.9b 15.6 17.2 3.3 4.2 6.1 15.1 3.1 [Abridged Version] Plea
Slide 11: Loans Growth Focusing on Higher Profit Segments
Loans Growth Focusing on Higher Profit Segments GROSS LOAN MOVEMENT (before netting Islamic financing sold to Cagamas) 30.0 S +2.3% Sept 07 Sept 08 25.0 RM263mil NPL’s Note : (dating back from - composition change Oct 06) written-off S /T in Sep 08 vs Sep 07 20.0 in March 2008 [Abridged Version] Ple
Slide 12: Asset Quality Continues to Improve
Asset Quality Continues to Improve Gross NPL by Segments Gross Loans and NPL ratio 70 12% 2.0 Mar 2008 Sep 2008 59.3 1.7 1.6 54.7 60 10% 1.5 1.3 50 1.2 8.4% 8% 40 1.0 6% [Abridged Version] Please contact us for full version 30 5.6% 0.5 0.3 0.3 4% 0.3 20 0.2 10 4.6 2% 0.0 3.3 Retail Banking Business
Slide 13: Stronger Capital Base, Capacity to Grow
Stronger Capital Base, Capacity to Grow Capital adequacy ratio – AMMB Holdings Capital base – AMMB Holdings Risk- 14.1% • Improved capital RM'b 30 September 07 30 September 08 13.3% adequacy ratio weighted • BASEL II Tier 1 Capital 7.34 8.37 capital ratio operational RWA impact of RM4.4bil Less: 8.9
Slide 14: Economic and Market Conditions are Getting Tougher
Economic and Market Conditions are Getting Tougher Real GDP forecast for 2009 at circa 3% Æ Rebound expected during late 2010 Inflation may ease to circa 3% for 2009 [Abridged Version] Please contact us for full version Æ Consumers adjust to higher costs of living Æ Subject to falling commodity
Slide 15: Government's Expansionary Policy to Stimulate Economy
Government’s Expansionary Policy to Stimulate Economy Boost Ignite Spur Consumer Spending Business Growth Large/Social Projects [Abridged Version] Please contact us for full version 3% optional reduction in RM1.5b : grants, loans, RM1.4b : low-cost employees’ EPF equity to attract investors ho
Slide 16: Financials on Track to Deliver >30% Growth in PATMI for FY2009
1 Financials on Track to Deliver >30% Growth in PATMI for FY2009 (vs FY2008) Expected Financial Outcome Divisional Performances Produce superior revenue growth : Retail Banking 4 – 5% revenue growth for • On track to achieve PAT target driven by lower provisions business segments [Abridged Version
Slide 17: Key Financial Statistics
Key Financial Statistics as at 30 September 2008 RM’000 FY2008 H1 FY09 Share Capital 2,722,970 2,722,970 Reserves 4,446,623 4,678,224 [Abridged Version] Please contact us for full version Shareholders’ Equity 7,169,593 7,401,194 Less: Intangible Assets (1,801,985) (1,812,600) NTA 5,367,608 5,588,594
Slide 18: Shareholding Structure
Shareholding Structure as at 30 September 2008 AmcorpGroup ANZ Funds Employees Provident Public Bhd Pty Ltd Fund Board 17.63% 19.17% 11.76% 51.44% [Abridged Version] Please contact us for full version AMMB Holdings Bhd 100% AMFB Holdings Bhd 100% 100% 70%* AmBank (M) AmInvestment AmAssurance Berhad
Slide 19: Key Group Information Highlight: ANZ Strategic Partnership
Key Group Information Highlight : ANZ Strategic Partnership ANZ is the only Australian bank to have been in the Asian region for over 38 years, with strategic banking partnerships across 7 countries • AmBank is ANZ’s single largest investment in Asia, with a total investment of US$696 million • This
Slide 20: Key Group Information Highlight: Delivery Channels
Key Group Information Highlight : Delivery Channels Key Objectives 12 branches Expand Footprint 24 branches Improve Sales Productivity Improve Operations Efficiency 15 branches Stabilize and improve & service level 20 branches 16 branches 24 branches [Abridged Version] Please contact us for
Slide 21: Ratings
Ratings AmBank (M) Berhad Rating Agency Long-Term Short-Term Date RAM A1 P1 Jan 08 Instrument : [Abridged Version] Please contact us for full version - RM200mil subordinated tier-2 bonds A2 Jan 08 - RM575mil exchangeable bonds A2 Jan 08 - RM2.0bil MTN programme A2 Jan 08 Moody’s Baa2 P-3 Jan 08 Inst
Slide 22: Ratings
Ratings AmInvestment Bank Berhad Rating Agency Long-Term Short-Term Date RAM AA3 P1 Mar 08 Instrument : [Abridged Version] Please contact us for full version - Up to RM1.0bil long-term NID’s AA3 Mar 08 - Up to RM460mil redeemable unsecured A1 Mar 08 subordinated bonds - RM200mil subordinated tier-2
Slide 23: Glossary
Glossary Reported Performance Reported performance refers to the financial performance as reported in the Audited Financial Statements and disclosed to the market. One Offs One offs comprise those impacts on financial performance that arise from changes to; [Abridged Version] Please contact us for f
Slide 24: Disclaimer of Warranty and Limitation of Liability
Disclaimer of Warranty and Limitation of Liability The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad or “AHB” or its affiliates do not make any representation or warranty, express or implied, as to the adequacy, accuracy, completeness or fairness of
Slide 25: [Abridged Version] Please contact us for full version
The material in this presentation is general background information about AmBank Group’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is [Abridged Version] Please contact us for full version not intended to be rel
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