Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — 1H 2018 Earnings Presentation

53 slides from Malayan Banking Bhd's earnings presentation, Aug 30, 2018

  1. Slide 1: Investor Presentation: Financial Results 2Q FY2018 and 1H FY2018

    Humanising Financial Services Investor Presentation Financial Results 2Q FY2018 and 1H FY2018 ended 30 June 2018 30 August 2018 www.maybank.com 0

  2. Slide 2: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 1 Financial Results: 2Q FY2018 and 1H FY

  3. Slide 3: Maybank Group 1H FY2018 Overview

    Maybank Group 1H FY2018 Overview Net profit growth of 13.9% YoY to RM3.83 billion supported by rise in PPOP and lower net impairment losses 1 • Growth in net operating income of 3.2% YoY from higher net fee based income of 7.4% YoY on stronger net earned insurance premiums Net Profit improved • Net

  4. Slide 4: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 3 Financial Results: 2Q FY2018 and 1H FY

  5. Slide 5: P&L Summary: 1H FY2018

    P&L Summary: 1H FY2018 PPOP up by 7.3% YoY to RM6.19 billion, with net profit rising by 13.9% YoY on lower net impairment losses More 1H 1H 2Q 1Q 2Q details RM million YoY QoQ YoY on FY2018 FY2017 FY2018 FY2018 FY2017 s.23 Net fund based income * 8,393.1 8,261.4 1.6% 4,155.2 4,237.9 (2.0)% 4,143.5 0

  6. Slide 6: Net Fund Based Income: 1H FY2018 YoY Trends (1/2)

    Net Fund Based Income: 1H FY2018 YoY Trends (1/2) Loans growth across home markets predominantly supported by CASA growth Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  4.6% (Reported)  6.1%  8.9%  6.6%  7.5% (Normalised) IDR trillion SGD billi

  7. Slide 7: Net Fund Based Income: 1H FY2018 (2/2)

    Net Fund Based Income: 1H FY2018 (2/2) NIM compression mainly from increased Group liquidity in 2Q FY2018 Net Interest Margin (%) QoQ Trend 5 Year Trend 2.39 2.39 2.36 2.35 2.33 2.30 2.31 2.31 2.27 2.27 2Q FY2017 3Q FY2017 4Q FY2017 1Q FY2018 2Q FY2018 FY2014 FY2015 FY2016 FY2017 1H FY2018 6

  8. Slide 8: Net Fee Based Income: 1H FY2018

    Net Fee Based Income: 1H FY2018 Net fee based income growth driven by higher net earned insurance premiums RM million 1H FY2017 1H FY2018 YoY Commission, service charges and fees 1,712 1,693  (1.1)% Investment & Trading Income 533 85  (84.1)% Unrealised gain/ (losses) on securities 249 (133)  (>1

  9. Slide 9: Overheads: 1H FY2018

    Overheads: 1H FY2018 Overheads reduced by 1.2% YoY on lower establishment costs and A&G expenses, Group CIR at 46.9% for 1H FY2018 1H 1H 2Q 1Q 2Q RM million YoY QoQ YoY FY2018 FY2017 FY2018 FY2018 FY2017 Personnel Costs 3,141.3 3,049.0 3.0% 1,550.7 1,590.6 (2.5)% 1,545.0 0.4% Establishment Costs 873

  10. Slide 10: Asset Quality

    Asset Quality 1H FY2018 net credit charge off rate of 44 bps with Group GIL ratio at 2.64% Allowances for Losses on Loans Group Gross Impaired Loans (GIL) Ratio Composition Loan loss coverage incl. Regulatory Reserve Jun Mar Dec Sep Jun GIL Ratio Components 2018 2018 2017 2017 2017 Loan loss coverag

  11. Slide 11: Asset Quality by Line of Business

    Asset Quality by Line of Business QoQ uptick seen in selected segments and markets Consumer Mortgage Auto Finance Credit Cards 2.59% 2.67% 2.22% 2.38% 2.14% 2.30% 1.44% 1.42% 2.37% 1.40% 1.84% 1.83% 1.73% 1.08% 0.98% 1.95% 1.86% 1.75% 1.79% 1.78% 0.83% 0.85% 0.69% 0.67% 0.60% 0.63% 0.61% 0.53% 0.53%

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

    Asset Quality in Singapore (1/2) Our exposure to Hyflux Group Total Exposure as at 30 June 2018 Key Facts:  Circa SGD658.6 million  No debt exposure at Hyflux Ltd (Hyflux) Group  Cc. SGD602.4 million to Tuaspring: level  About 86% of the total exposure is for a term loan for the development of T

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

    Asset Quality in Singapore (2/2) Impairment and Provisioning Rationale for Hyflux Exposure  Based on our conservative credit assessment, we have impaired our collective Tuaspring and TuasOne exposure (previously classified as Stage 2 credit) totalling SGD658.6 million (RM1.95 Maybank billion) as at

  14. Slide 14: Oil & Gas Exposure: 30 June 2018

    Oil & Gas Exposure: 30 June 2018 Maybank Group’s exposure to direct and indirect oil and gas borrowers Direct & Indirect Oil & Gas: Borrowers with O&G related exposure Loan Borrowers’ Status: Oil & Gas 1% 88% comes exposure from 15% supporting Maybank Group 3.86% upstream 33% Malaysia 2.24% Normal S

  15. Slide 15: Liquidity Management: 30 June 2018

    Liquidity Management: 30 June 2018 Maintained well-diversified funding sources and strong liquidity risk indicators Funding Breakdown Borrowings and Liquidity Risk Indicators Capital Instruments by Currency LDR LTF LTFE LCR 145.6% 137.0% 153.3% 144.9% 133.1% FI Deposits, 8% SGD, 8% Equity, 10% JPY,

  16. Slide 16: Strong Capital Position: 30 June 2018

    Strong Capital Position: 30 June 2018 Total capital ratio of 17.78% and fully loaded CET1 capital ratio of 13.16% (assuming 85% dividend reinvestment rate) Before proposed After proposed Regulatory Requirements dividend dividend, assuming 85% reinvestment rate Jan 2019 2018 Onwards 19.38% 18.25% 17.

  17. Slide 17: Dividend

    Dividend Single-tier interim dividend of 25 sen consisting of 15 sen cash portion and 10 sen electable portion Dividend (sen), Payout Ratio (%) and Cash Component (%) 79.9% 78.5% 78.1% 78.5% 76.5% 74.9% 74.7% 76.3% Dividend 71.9% 71.4% Payout Ratio 67% 60% Cash Component 27% 25% 27% 13% 11% 12% 20%

  18. Slide 18: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 17Financial Results: 2Q FY2018 and 1H FY

  19. Slide 19: Market Outlook

    Market Outlook 2018 industry outlook for our home markets Key Indicators Industry Outlook • GDP (f): 4.8% (2018) vs 5.9% (2017) • Loan growth supported by corporate lending pick-up and stable consumer lending. • System loan (f): 4.5% (2018) vs 4.1% (2017) • Deposit rate competition in 2H18 likely to

  20. Slide 20: Maybank Performance Outlook

    Maybank Performance Outlook Group guidance for remaining FY2018 1 Focus on improving NIM trend after taking a cautious strategy on liquidity in 1H 2 Maintain pricing discipline of loans under new MFRS 9 environment 3 Maintain stable liquidity risk indicators ahead of NSFR adoption in 2019 4 Managed

  21. Slide 21: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 20Financial Results: 2Q FY2018 and 1H FY

  22. Slide 22: International & Malaysia Portfolio Mix 1H FY2018

    International & Malaysia Portfolio Mix 1H FY2018 Net Operating Income Profit Before Tax Gross loans* 1H FY2018 (Jan 18 – Jun 18) Overseas: 7.7% Overseas: 11.3% Overseas: 8.6% 38.7% 12.1% 29.9% 41.5% 7.3% 7.1% RM11.67 11.5% RM5.17 RM502.4 billion billion 25.6% billion 18.9% 61.3% 58.5% 70.1% Malaysia

  23. Slide 23: Segmental Performance of Businesses: 1H FY2018 (1/2)

    Segmental Performance of Businesses: 1H FY2018 (1/2) Net Operating Income 1H FY2017  +3.2% Group Global Banking (GB)  +1.3% 1H FY2018 1H FY2017: 4,529 1H FY2018: 4,588 11,314 11,672  +1.1%  +1.9%  +13.8%  (68.3)%  (17.6)% 6,607 6,679 RM million 3,762 3,831 625 712 812 669 143 45 Total Group C

  24. Slide 24: Segmental Performance of Businesses: 1H FY2018 (2/2)

    Segmental Performance of Businesses: 1H FY2018 (2/2) Net Fund Based Income 1H FY2017  +1.6% Group Global Banking (GB)  +2.4% 1H FY2018 1H FY2017: 2,653 1H FY2018: 2,716 8,261 8,393  +0.7%  +1.3%  +15.5%  +>100%  +0.5% 5,062 5,098 RM million 2,508 2,540 148 171 (4) 5 556 559 Total Group Commun

  25. Slide 25: Unaudited Income Statement for Insurance and Takaful Business

    Unaudited Income Statement for Insurance and Takaful Business 1H 1H 2Q 1Q 2Q RM million YoY QoQ YoY FY2018 FY2017 FY2018 FY2018 FY2017 Net interest income 559.0 550.2 1.6% 280.8 278.2 0.9% 299.1 (6.1)% Net earned premiums 3,001.4 2,509.7 19.6% 1,490.0 1,511.4 (1.4)% 1,255.8 18.7% Other operating inc

  26. Slide 26: Net Fee Based Income: QoQ

    Net Fee Based Income: QoQ RM million 1Q FY2018 2Q FY2018 QoQ Commission, service charges and fees 836 857  2.4% Investment & Trading Income 109 (24)  (>100)% Unrealised gain/ (losses) on securities 141 (273)  (>100)% Realised and Unrealised gain/ (losses) on derivatives (59) 117  >100% Foreign E

  27. Slide 27: Group Gross Loans Growth: 30 June 2018

    Group Gross Loans Growth: 30 June 2018 % of 30 Jun 31 Mar 31 Dec YTD 30 Jun QoQ YoY Portfolio 2018 2018 2017 Ann. 2017 Group Gross Loans 502.4 493.4  1.8% 493.8  3.5% 480.1  4.6% Malaysia (RM billion) 57% 290.5 288.9  0.6% 285.5  3.5% 273.8  6.1% Community Financial Services (reported) 72% 209

  28. Slide 28: Malaysia Loans Growth: 30 June 2018

    Malaysia Loans Growth: 30 June 2018 % of 30 Jun 31 Mar 31 Dec YTD 30 Jun RM billion QoQ YoY Portfolio 2018 2018 2017 Ann. 2017 Community Financial Services (reported) 72% 209.0 205.7  1.6% 203.7  5.3% 197.1  6.0% Community Financial Services (rebased)¹ 72% 209.0 205.7  1.6% 203.2  5.7% 197.1 

  29. Slide 29: Group Deposits Growth: 30 June 2018

    Group Deposits Growth: 30 June 2018 % of 30 Jun 31 Mar 31 Dec YTD 30 Jun QoQ YoY Portfolio 2018 2018 2017 Ann. 2017 Group Gross Deposits 539.8 532.1  1.4% 526.6  5.0% 511.7  5.5% Malaysia (RM billion) 62% 335.8 336.4  (0.2)% 317.8  11.3% 304.9  10.1% Savings Deposits 13% 42.8 42.5  0.8% 40.7

  30. Slide 30: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 93.8% 94.0% 93.4% 92.5% 92.8% 90.9% 90.7% 91.2% 87.0% 87.8% 36.8% 36.8% 37.3% 35.3% 35.1% 40.4% 39.5% 40.2% 37.3% 37.3% 35.1% 35.0% 35.4% 33.5% 33.2% 37.6% 36.6% 37.1% 34.5% 34.3% Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Jun 17 Sep 17 Dec 17 Mar

  31. Slide 31: Key Operating Ratios

    Key Operating Ratios 1H 1H 2Q 1Q 2Q % YoY QoQ YoY FY2018 FY2017 FY2018 FY2018 FY2017 Return on Equity 10.8 9.7 1.1% 11.1 10.5 0.6% 9.6 1.5% Net Interest Margin 2.33 2.41 (8) bps 2.27 2.39 (12) bps 2.39 (12) bps Fee to Income Ratio 28.1 27.0 1.1% 28.9 27.3 1.6% 28.4 0.5% Loans-to-Deposit Ratio 1 92.8

  32. Slide 32: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 31Financial Results: 2Q FY2018 and 1H FY

  33. Slide 33: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Mar-18 Market Market share Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 vs position Jun-18 Loans Total consumer (Household) 17.5% 17.5% 17.6% 17.6% 17.6% # 2 Auto (Purchase of transport vehicles) 25.7% 26.1% 26.5% 26.7% 27.1% # 2 Total mortga

  34. Slide 34: Community Financial Services: Overview of Malaysia Portfolio

    Community Financial Services: Overview of Malaysia Portfolio Total CFS loans on an upward trend of 6.0% YoY and 5.3% Individual customer TFA grew 4.2% YoY to RM307.9 billion YTD annualised. driven by HNW & Affluent Banking customer TFA  +6.0% YoY  +4.2% YoY  +5.3% YTD Ann.  +3.8% YTD Ann. 295.6

  35. Slide 35: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 34Financial Results: 2Q FY2018 and 1H FY

  36. Slide 36: Global Banking: Overview of Malaysia Corporate Banking Portfolio

    Global Banking: Overview of Malaysia Corporate Banking Portfolio Total GB loans increased 4.6% YoY to RM81.6 billion Trade Finance market share 24.7% 24.5% 24.4% RM billion 23.5% 22.8% 43.2  +11.3 % YoY Term Loan 42.0 38.8 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 27.4 Short Term Note: Market share of tot

  37. Slide 37: Global Banking: Overview of Group Securities and Global Markets Portfolio

    Global Banking: Overview of Group Securities and Global Markets Portfolio Group Securities Portfolio¹ grew 15.9 % YoY Group Securities Portfolio¹: 36.8% Foreign Securities as at June 2018 1H FY2017 1H FY2018 Others Others (NIDs, BA, etc) Government (NIDs, BA, etc) Government 6.4% Securities 5.3% Sec

  38. Slide 38: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 1H FY2018 Total Income Breakdown by Country Total Income for Maybank Kim Eng Hong Kong Others  +13.8% YoY 3% 4% Philippines 4% 711.5 Indonesia 4% 625.1 Malaysia RM711.5 39% RM million Thailand million 17% 1H FY2017 1H FY2018 Singapore 2

  39. Slide 39: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 38Financial Results: 2Q FY2018 and 1H FY

  40. Slide 40: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary 1H 1H SGD million YoY FY2018 FY2017 Net fund based income 371.09 334.08 11.1% Net fee based income 201.40 161.56 24.7% Net income 572.49 495.64 15.5% Overhead expenses (211.47) (185.55) 14.0% Operating profit 361.02 310.09 16.4% Profit before taxation 176.67 150.60 17.

  41. Slide 41: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Consumer and business deposits each account for 50% of deposits  +8.9% YoY  +11.6% YoY 41.9 47.0 40.6 46.2 Consumer - 38.5 Other 42.1 3.2 Time Deposits 3.5 2.3 (Consumer) 3.4 2.1 15.8 16.5 Consumer 1.9 Consumer

  42. Slide 42: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 41Financial Results: 2Q FY2018 and 1H FY

  43. Slide 43: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary 1H 1H 2Q 1Q IDR billion YoY QoQ FY2018 FY2017 FY2018 FY2018 Net Fund Based income 3,932 3,836 2.5% 2,041 1,890 8.0% Net Fee Based income 1,022 1,457 (29.8)% 495 528 (6.2)% Net income 4,954 5,292 (6.4)% 2,536 2,418 4.9% Overhead expenses (2,988) (3,064) (2.5)% (1,480) (

  44. Slide 44: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown 30 Jun 31 Mar 30 Jun Key Operating Ratios Jun 18 Dec 17 Jun 17 YoY IDR Trillion QoQ YoY 2018 2018 2017 Profitability & Efficiency CFS 97.0 94.9 2.2% 92.7 4.6% Return on Assets 1.49% 1.48%

  45. Slide 45: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 44Financial Results: 2Q FY2018 and 1H FY

  46. Slide 46: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM171.1 billion 1H 1H RM million YoY Jun 17 FY2018 FY2017 Jun 18 Total Income 2,797.6 2,170.8 28.9% 12% Profit Before Tax 45.0 8% 1,184.5 1,267.6 (6.6)% 3% 40.1 37.2 3

  47. Slide 47: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 33.6% 33.6% 33.8% 33.6% 33.2% Key Products Jun 18 Jun 17 Automobile Financing 44.9% 44.7% 31.2% 30.4% 30.4% 29.7% Home 27.2% 28.1% 29.6% Term financing 31.9% 29.6% Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Financi

  48. Slide 48: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Gross Premium Life / Family (New Business) Market Share Single Premium  >100% 1H FY2017 AIA Ins. & Tak. 21.9% Regular Premium  7.4% 1H FY2018 Prudential Ins. & Tak. 13.9% Credit Premium  58.5% No. 4 in Life/Family GE Ins. & Tak. 13.0% (New Business) Gro

  49. Slide 49: Maybank Philippines: Performance Overview

    Maybank Philippines: Performance Overview Key Highlights Revenue and PBT  Revenue increased by 2.1% YoY, led by higher net interest income (NII).  +2.1% YoY  Increase in NII contributed by higher interest income from term loans. 2,837.7 2,898.0  PBT decreased by 25.9% YoY mainly due to higher ov

  50. Slide 50: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 4 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 35 4. Maybank Singapore 39 5. Maybank Indonesia 42 6. Other segments 45 7. Affiliates 50 49Financial Results: 2Q FY2018 and 1H FY

  51. Slide 51: An Binh Bank: Performance Overview

    An Binh Bank: Performance Overview Key Highlights Revenue and PBT  Revenue increased by 20.0% YoY, mainly due to higher fee based income.  +20.0% YoY  PBT increased by VND321.2b YoY, mainly contributed by 1,502.7 higher revenue. 1,252.0  Gross loans reduced by 0.8% YTD annualised mainly due to a

  52. Slide 52: MCB Bank: Performance Overview

    MCB Bank: Performance Overview Key Highlights Revenue and PBT  Revenue increased by 5.0% YoY, led by higher net interest  5.0% YoY income (NII).  PBT decreased by 11.2% YoY, mainly attributed to higher 31.9 30.4 overhead expenses.  (11.2)% YoY  Gross loans increased by 22.5% YTD annualised, mai

  53. Slide 53: Malayan Banking Berhad Contact and Disclaimer

    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 Dato’ Amirul Feisal Wan Zahir Group Chief Financial Officer Contact: (6)03-2074 7703 Email: feisal.zahir@

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