Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — FY2020 Earnings Presentation

52 slides from Malayan Banking Bhd's earnings presentation, Feb 25, 2021

  1. Slide 1: Investor Presentation: Financial Results 4Q and FY2020

    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 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

  3. Slide 3: Maybank Group FY2020 Overview

    Maybank Group FY2020 Overview 1  Net operating income of RM24.76 billion for FY2020, was a result of:  Lower net fund based income of 4.9% as NIM compressed 17bps YoY on steep interest rate cuts across home markets and Day-1 net modification loss absorbed. Group loans remained flat on reduced busi

  4. Slide 4: Maybank2020: FY2020 Achievements in Key Strategic Objectives

    Maybank2020: FY2020 Achievements in Key Strategic Objectives 1 • Unveiled SME Digital Financing, the first end-to-end digital financing for SMEs in Malaysia with 10-minute The Top ASEAN approval TAT, leveraging on machine learning and a fully-digital application process Community Bank • Launched Sam

  5. Slide 5: Supporting Our Stakeholders Through The Pandemic

    Supporting Our Stakeholders Through The Pandemic • Our business continuity processes were activated even before COVID-19 was declared a pandemic. CUSTOMERS EMPLOYEES • Provided financial relief and support to affected We seek to keep our employees connected, engaged and productive, while customers a

  6. Slide 6: 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

  7. Slide 7: Continued Growth in Digital Solutions and Platforms

    Continued Growth in Digital Solutions and Platforms • Garnered >100k unique users within 4 days of launch • Collaboration with ShopeePay for the 11:11 Launch of on 8 Oct, and received a 4.5 star rating on Appstore supersale, as well as Shopee and Lazada for the MAE by • Features intuitive UI/UX, sea

  8. Slide 8: Table of Contents

    Table of Contents Executive Summary 2 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

  9. Slide 9: P&L Summary: FY2020

    P&L Summary: FY2020 PPOP growth of 2.6% YoY on double-digit fee based income expansion and controlled overheads More 4Q 3Q 4Q details on RM million FY2020 FY2019 YoY QoQ YoY FY2020 FY2020 FY2019 s.26 Net fund based income * 16,650.5 17,514.8 (4.9)% 4,337.5 4,128.3 5.1% 4,518.9 (4.0)% s.11/ 12/26 Net

  10. Slide 10: Net Fund Based Income: FY2020 YoY Trends (1/2)

    Net Fund Based Income: FY2020 YoY Trends (1/2) Group deposits grew on CASA growth across home markets, while Group loans remained muted on economic contractions Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  +0.0%  +4.0%  (1.9)%  (14.8)% 314.1 3

  11. Slide 11: Net Fund Based Income: FY2020 (2/2)

    Net Fund Based Income: FY2020 (2/2) NIM compressed 17 bps YoY on steep interest rate cuts and net mod loss impact; rebounds 10 bps QoQ in 4Q’20 Net Interest Margin (%) QoQ Trend 2.29 2.23 5 Year Trend 2.15 2.05 1.96 4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 Rate cuts in 2020: 2.36  125bps OPR cut 2.33  3

  12. Slide 12: Net Fee Based Income: FY2020 (YoY)

    Net Fee Based Income: FY2020 (YoY) Growth driven by MTM derivatives revaluation gains and realised gains on securities’ disposal RM million FY2019 FY2020 YoY Commission, service charges and fees 3,431 3,374  (1.7)% Investment & trading income 1,685 1,990  18.0% Unrealised gain/ (losses) on financi

  13. Slide 13: Net Fee Based Income: 4Q FY2020 (QoQ)

    Net Fee Based Income: 4Q FY2020 (QoQ) QoQ growth from higher commission, service charges and fees and unrealised MTM gains on securities 1Q 2Q 3Q 4Q RM million QoQ FY2020 FY2020 FY2020 FY2020 Commission, service charges and fees 820 693 771 1,089  41.3% Investment & trading income 769 479 711 30 

  14. Slide 14: Overheads: FY2020 (YoY)

    Overheads: FY2020 (YoY) Cost discipline yielded CIR of 45.4% and positive JAWs of 2.8% for FY2020 4Q 3Q 4Q RM million FY2020 FY2019 YoY QoQ YoY FY2020 FY2020 FY2019 Personnel Costs 6,563.2 6,625.0 (0.9)% 1,610.7 1,581.5 1.8% 1,601.5 0.6% Establishment Costs 1,892.5 1,905.7 (0.7)% 493.5 482.5 2.3% 53

  15. Slide 15: Asset Quality (1/2)

    Asset Quality (1/2) Proactive recognition of provisioning from MEV adjustments and overlays for vulnerable accounts Allowances for losses on loans 115.9% 106.8% FY2020 ECL includes: 99.2% 90.8% 89.5% • ~RM950 million additional Loan loss coverage incl. provisioning on MEV adjustments Regulatory Rese

  16. Slide 16: Asset Quality (2/2)

    Asset Quality (2/2) QoQ decline in GIL for Group and Home Markets on slower formation of newly impaired loans Group Gross Impaired Loans (GIL) Ratio Composition GIL Ratio Components Dec 2020 Sep 2020 Jun 2020 Mar 2020 Dec 2019 Non Performing Loans (NPL) 2.02% 1.93% 2.03% 2.20% 2.20% Restructured & R

  17. Slide 17: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Business lines saw QoQ improvement across home markets; slight QoQ uptick in Malaysia consumer lines Consumer Mortgage Auto Finance Credit Cards 3.12% 3.11% 7.98% 7.16% MBI GIL normalised to 5.39% 2.32% 2.38% 1.88% include IFRS 9 impact 4.70% 1.77% 2

  18. Slide 18: Exposure to Oil & Gas and Real Estate Sectors

    Exposure to Oil & Gas and Real Estate Sectors: 31 December 2020 QoQ reduction in Group’s Oil & Gas and Malaysia Real Estate exposure Group Exposure to Direct & Indirect Oil & Gas Borrowers Real Estate Exposure to Maybank Group Malaysia Singapore Indonesia Others Non-Retail Malaysian Borrowers 2.48%

  19. Slide 19: Strong Liquidity & Capital Positions: 31 December 2020

    Strong Liquidity & Capital Positions: 31 December 2020 Robust LCR of 142%, while Group CET1 capital ratio at 14.73% (assuming 85% reinvestment rate) After proposed dividend, Liquidity Risk Indicators Before proposed dividend assuming 85% reinvestment rate LCR LDR LTF LTFE 19.39% 18.68% 18.10% Group

  20. Slide 20: Dividend: FY2020

    Dividend: FY2020 Single-tier final dividend of 38.5 sen per share, of which 21 sen is electable under the Dividend Reinvestment Plan Dividend (sen), Payout Ratio (%) and Cash Component (%) Dividend 79.9% 78.5% 78.1% 78.5% 87.8% 91.2% 76.5% 74.9% 74.7% 71.9% 76.3% 77.3% Payout Ratio 100% 67% 53% 27%

  21. Slide 21: Table of Contents

    Table of Contents Executive Summary 2 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

  22. Slide 22: 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

  23. Slide 23: Maybank Performance Outlook

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

  24. Slide 24: Table of Contents

    Table of Contents Executive Summary 2 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

  25. Slide 25: International & Malaysia Portfolio Mix FY2020

    International & Malaysia Portfolio Mix FY2020 Net Operating Income Profit Before Tax Gross Loans * FY2020 (Jan 20 – Dec 20) 7.7% 1.9% Overseas: 6.2% Overseas: Overseas: 7.2% 34.5% 11.1% 16.3% 6.7% 37.2% 5.9% RM24.76 RM8.66 RM523.7 17.2% 24.1% billion billion billion 65.5% 62.8% 83.7% Malaysia Singap

  26. Slide 26: Segmental Performance of Businesses: FY2020 (1/2)

    Segmental Performance of Businesses: FY2020 (1/2) Net Operating Income Group Global Banking  +8.4% FY2019 FY2020  +0.1% FY2019: 9,611 FY2020: 10,419 24,741 24,763  (6.4)%  +4.9%  +33.5%  +14.8%  +3.0% 13,792 12,914 RM million 8,341 8,747 1,144 1,528 1,923 1,982 125 144 Total Group Community G

  27. Slide 27: Segmental Performance of Businesses: FY2020 (2/2)

    Segmental Performance of Businesses: FY2020 (2/2) Net Fund Based Income  (4.9)% Group Global Banking  +2.4% FY2019 FY2020 FY2019: 5,522 FY2020: 5,655 17,515 16,651  (4.9)%  +2.8%  (6.4)%  +>100%  (2.1)% 10,408 9,900 RM million 5,261 5,409 1,287 1,260 260 243 1 2 Total Group Community Group Co

  28. Slide 28: P&L Summary: QoQ

    P&L Summary: QoQ 4Q 3Q 2Q 1Q RM million FY2020 FY2020 FY2020 FY2020 Net fund based income 4,337.5 4,128.3 3,840.3 4,344.5 Net fee based income 1,975.2 1,949.5 1,808.3 2,379.7 Net operating income 6,312.7 6,077.8 5,648.5 6,724.2 Overhead expenses (2,892.4) (2,704.4) (2,706.3) (2,942.0) Personnel Cost

  29. Slide 29: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million FY2020 FY2019 YoY 4Q FY2020 3Q FY2020 2Q FY2020 1Q FY2020 QoQ Net interest income 1,260.1 1,286.2 (2.0)% 318.0 310.7 315.9 315.4 2.4% Net earned premiums 9,458.9 6,760.6 39.9% 2,782.8 2,990.3 1,740.9 1,944.9 (6.9)% Other operating income

  30. Slide 30: Group Gross Loans Growth: 31 December 2020

    Group Gross Loans Growth: 31 December 2020 % of 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec QoQ YoY Portfolio 2020 2020 2020 2020 2019 Group Gross Loans 523.7 521.8  0.4% 520.2 518.4 523.5  0.0% Malaysia (RM billion) 62% 326.7 324.2  0.8% 316.1 314.3 314.1  4.0% Community Financial Services (reported) 76

  31. Slide 31: Malaysia Loans Growth: 31 December 2020

    Malaysia Loans Growth: 31 December 2020 % of 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec RM billion QoQ YoY Portfolio 2020 2020 2020 2020 2019 Community Financial Services (reported) 76% 247.0 243.2  1.6% 234.6 231.7 231.3  6.8% Community Financial Services (rebased)¹ 76% 247.0 243.2  1.6% 234.6 231.7 231

  32. Slide 32: Group Deposits Growth: 31 December 2020

    Group Deposits Growth: 31 December 2020 % of 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec QoQ YoY Portfolio 2020 2020 2020 2020 2019 Group Gross Deposits 580.2 593.2  (2.2)% 573.3 543.8 565.3  2.6% Malaysia (RM billion) 61% 355.7 367.8  (3.3)% 355.4 336.7 351.5  1.2% Savings Deposits 16% 56.8 56.0  1.4%

  33. Slide 33: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 95.2% 93.9% 92.5% 92.4% 90.6% 90.0% 89.4% 88.7% 87.8% 90.1% 42.1% 42.8% 38.4% 40.2% 35.5% 44.3% 47.1% 46.8% 39.6% 43.6% 39.1% 38.7% 37.3% 35.1% 33.2% 39.7% 42.3% 41.7% 38.2% 34.9% Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Dec 19 Mar 20 Jun 20 Sep

  34. Slide 34: 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, 5% 523.5 521.8 523.7 Equity, 11% JPY, HKD, IDR, 6% 12% 7% THB, 3% 403.6 AUD, 2% 380.4 384.6 SGD, 2% 43

  35. Slide 35: Key Operating Ratios

    Key Operating Ratios 4Q 3Q 2Q 1Q 4Q % FY2020 FY2019 YoY QoQ YoY FY2020 FY2020 FY2020 FY2020 FY2019 Return on Equity 4 8.1 10.9 (2.8)% 7.7 9.7 (2.0)% 4.7 10.6 13.0 (5.3)% Net Interest Margin 4 (bps) 2.10 2.27 (17) bps 2.15 2.05 10 bps 1.96 2.23 2.29 (14) bps Fee to Income Ratio 32.8 29.2 3.6% 31.3 32

  36. Slide 36: Table of Contents

    Table of Contents Executive Summary 2 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

  37. Slide 37: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Market share Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Loans Total consumer (Household) 17.7% 17.8% 17.9% 18.1% 18.1% Auto (Hire Purchase + Block Discounting + Floor Stocking) 29.6% 29.7% 30.3% 30.4% 30.4% Total mortgage * 14.0% 14.2% 14.3

  38. Slide 38: Community Financial Services: Overview of Malaysia Portfolio

    Community Financial Services: Overview of Malaysia Portfolio Total CFS loans on an upward trend of 6.8% YoY and Total CFS deposits increased by 9.5% YoY driven by CASA 1.6% QoQ growth of 22.6%  +6.8% YoY  +9.5% YoY  +1.6% QoQ  +1.9% QoQ 231.3 243.2 247.0 204.3 219.6 223.8 44.4 46.8 47.8 66.3 69.

  39. Slide 39: Table of Contents

    Table of Contents Executive Summary 2 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

  40. Slide 40: 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 3.8% Group Securities Portfolio¹ grew 11.6% YoY YoY to RM79.6 billion RM billion  +11.6% YoY 48.4 Term Loan 49.3  +3.6% YoY 215.2 214.1 204.1 192.8 7.3 7.4 46.7

  41. Slide 41: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio FY2020 Total Income Breakdown by Country FY2020 Fee-based Income for Malaysia Other Fee HongKong Others Income Arranger's Fees 3% 4% 15% 23% Advisory Fee Thailand 4% 12% Philippines Agency/Guarantee Fees Underwriting & 1% RM1,528.1 Place

  42. Slide 42: Table of Contents

    Table of Contents Executive Summary 2 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

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

    Maybank Singapore: P&L Summary SGD million FY2020 FY2019 YoY 4Q FY2020 3Q FY2020 QoQ Net fund based income 555.17 761.13 (27.1)% 125.54 116.40 7.9% Net fee based income 421.57 376.39 12.0% 131.27 100.38 30.8% Net income 976.74 1,137.52 (14.1)% 256.81 216.78 18.5% Overhead expenses (465.69) (454.76)

  44. Slide 44: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Consumer deposits increased to 50.7% of total deposits % of 31 Dec 30 Sep 31 Dec SGD Billion QoQ YoY  +6.9% YoY Portfolio 2020 2020 2019 48.3 52.5 51.6 Consumer - Time CFS 58% 22.6 21.9 3.3% 22.1 2.2% Deposits Co

  45. Slide 45: Table of Contents

    Table of Contents Executive Summary 2 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

  46. Slide 46: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary 4Q 3Q IDR billion FY2020 FY2019 YoY QoQ FY2020 FY2020 Net Fund Based income 7,260 8,168 (11.1)% 1,647 1,677 (1.8)% Net Fee Based income 2,379 2,587 (8.0)% 650 546 18.9% Net income 9,639 10,755 (10.4)% 2,297 2,223 3.3% Overhead expenses (5,713) (6,397) (10.7)% (1,295) (

  47. Slide 47: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown % of 31 Dec 30 Sep 31 Dec Key Operating Ratio Dec-20 Sep-20 Dec-19 YoY IDR Trillion QoQ YoY Portfolio 2020 2020 2019 Profitability & Efficiency CFS 67% 70.8 73.9 (4.1)% 90.5 (21.7)% Retur

  48. Slide 48: Table of Contents

    Table of Contents Executive Summary 2 4Q & Full Year FY2020 Financial Performance 8 Prospects & Outlook 21 Appendix: 1. Financial Performance 24 2. Community Financial Services 36 3. Global Banking 39 4. Maybank Singapore 42 5. Maybank Indonesia 45 6. Other Segments 48

  49. Slide 49: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM206.7 billion 14% Dec-19 RM million FY2020 FY2019 YoY Dec-20 61.5 54.2 8% Total Income 5,357.1 5,103.0 5.0% 14% 45.7 41.7 42.2 Profit Before Tax 2,328.2 3,800.4 (38.7

  50. Slide 50: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 31.1% 30.9% 30.7% 30.8% 30.8% Key Products Dec 20 Dec 19 28.9% Automobile Financing 48.5% 47.7% 27.8% 27.6% 27.9% 27.0% Home 26.9% 26.3% Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Term financing 27.4% 28.6% Financi

  51. Slide 51: 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  11.2% 21.5% 20.7% 19.3% 19.2% Credit Premium FY2019  (24.3)% 13.6% 13.8% 16.9% 18.0% No. 4 in Life/Family Group Premium FY2020

  52. Slide 52: 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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