Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — 9MFY2023 Earnings Presentation

42 slides from Ammb Holdings Bhd's earnings presentation, Feb 23, 2023

  1. Slide 1: 9MFY2023 Results Investor Presentation

    9MFY2023 RESULTS INVESTOR PRESENTATION 23 FEBRUARY 2023

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 9MFY23 Financial snapshot 4 Repayment assistance 5 Loans by stages 6 Outlook for 2023

  3. Slide 3: 9MFY23 Financial Snapshot (Reported)

    Financial Snapshot (Reported) 9MFY23 Financial snapshot Improved ROE to 10.1%; 9MFY23 Reported Financials Variance Income benefitting from interest rate rise 3,578 Income  1% • Based on Continuing Operations1, income grew 11% 9MFY22: 3,542 (1,545) • Based on Continuing Operations1, expenses grew 11

  4. Slide 4: Repayment Assistance

    Repayment Assistance Repayment assistance loans Repayment assistance by type of borrowers (RM’ bil) SME: Repayment assistance by MIA status MIA 3 MIA ≥4 MIA 2 0.04 bil 0.04 bil 0.08 bil 3% 4% 7% Retail SME Corporate MIA 1 0.11 bil 10% Total Assistance: RM1.1bil 16% of total gross loans MIA 0 0.87 bi

  5. Slide 5: Loans by Stages

    Loans (Reported) Loans by stages Loans by ECL Stages (RM’ bil)1 Breakdown by Business Segments (%) Stage 1 Stage 1 Stage 2 Stage 3 Jun’21 Dec’21 PEMULIH 89.7% 113.5 113.4 117.1 120.0 120.1 124.4 126.3 87.9% BB 1.6% 1.5% 1.4% 1.4% 1.6% 1.5% 1.6% RB 85.4% 13.2% 14.7% 12.9% 12.7% 11.9% 11.0% 10.2% WB Q

  6. Slide 6: Outlook for 2023

    Market Outlook Outlook for 2023 GDP Growth 4.0% to 5.0% Inflation 3.0% Malaysia Export Growth 5.0% to 10.0% USD/MYR Outlook 4.20 to 4.30 Loans Growth 4.0% to 5.0% Asset Quality Stable Banking OPR 3.00% Sector Liquid & Capital Positions Resilient 6 9MFY23 Results – Investor Presentation

  7. Slide 7: GCFO Presentation: Financial Overview

    GCFO PRESENTATION Jamie Ling 7 - 25 Financial Overview

  8. Slide 8: 9MFY23 Performance Summary – P&L (Reported)

    Financial Overview (Reported) 9MFY23 Performance summary – P&L (Reported) P&L (RM’ mil) Q2FY23 Q3FY23 QoQ Change 9MFY22 9MFY23 YoY Change Total Income 1,185 1,231  4% 3,542 3,578  1% - NII 923 930  1% 2,463 2,717  10% - NOII 262 301  15% 1,079 861  (20%) Expenses (504) (497)  (1%) (1,537) (1,

  9. Slide 9: 9MFY23 Performance Summary – Balance Sheet (Reported)

    Financial Overview (Reported) 9MFY23 Performance summary – Balance Sheet (Reported) Balance Sheet (RM’ bil) Q2FY23 Q3FY23 QoQ Change FY22 9MFY23 YTD Change Gross Loans 124.4 126.3  2% 120.0 126.3  5% GIL 1.52% 1.62%  0.10% 1.40% 1.62%  0.22% LLC1 122.6% 116.7%  (5.9%) 139.2% 116.7%  (22.5%) Cu

  10. Slide 10: P&L – Continuing & Discontinued Operations

    Disposal of AmGen P&L – Continuing & Discontinued Operations Financial Effects post Disposal (Nine-month) 9MFY22 9MFY23 YoY Movement Reported Continuing Ops Discontinued Op Reported Continuing Ops Discontinued Op Continuing Discontinued RM’mil Reported (A) + (B) (A) (B) (A) + (B) (A) (B) Operations

  11. Slide 11: Continuing Operations – YoY Income and Core PAT Growth, Improved CTI

    P&L – Continuing Operations Continuing Operations – YoY Income and Core PAT Growth, Improved CTI Continuing Operations - Total Income (RM’mil) & CTI CTI 47.5% 44.6% 44.6% 44.9% 39.3% 43.7% 42.0% 47.9% 44.3% 40.6% 40.4% 45.5% 41.6% 41.6% 11% 12% 11% 7% 5% 7% 6% 5% 8% 3,454 3,126 -2% 2,898 -7% -7% 23%

  12. Slide 12: Q3FY23 Financial Overview

    Financial Overview (Continuing) Q3FY23 Financial overview 1 Capital, Liquidity and Funding • Capital build on track • CET1 at 12.73%; without Transitional Arrangements, CET1 at 12.30% • Sector liquidity tightening (FHC LCR of 141.0%, LDR 101.6%) 2 Q3FY23 Results (QoQ) • Income of RM1,231mil, 5% grow

  13. Slide 13: Income Benefited from OPR Increase

    Income (Continuing) Income benefited from OPR increase Business Segments Q2FY23 Q3FY23 QoQ Change 9MFY22 9MFY23 YoY Change (RM’ mil) Wholesale Banking 388 395  2% 983 1,114  13% Investment Banking 75 89  19% 270 238  (12%) Retail Banking 480 498  4% 1,264 1,424  13% Business Banking 170 180 

  14. Slide 14: Maintained Operating Leverage, PBP up 10%

    PBP & PAT (Continuing) Maintained operating leverage, PBP up 10% Business Segments Q2FY23 Q3FY23 QoQ Change 9MFY22 9MFY23 YoY Change (RM’ mil) Wholesale Banking 325 328  1% 794 925  16% Investment Banking 27 38  41% 141 96  (31%) Retail Banking 251 274  9% 636 755  19% Business Banking 117 129

  15. Slide 15: P&L Walk

    Group P&L (Continuing) P&L walk YoY Growth  16%  3%  (54%)  11%  11%  10%  (58%)  54%  >100%  29% 411 367 24 62 306 138 1,326 1,030 Net Interest Non-Interest RM’ mil Net Mod Impact Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income 9MFY23 2,621 780 53 3,454 1,438 2,016

  16. Slide 16: NIM Benefited from OPR Rise

    NIM (Reported) NIM benefited from OPR rise YoY NIM 9MFY23: Net Interest Margin (NIM) Movement (QoQ) Reported: 2.16% ( 10bps) Underlying: 2.11% ( 15bps) 9MFY22: Reported: 2.06% Divisions Funding + Deposits Underlying: 1.96% Reported: Underlying:  1bps bps 3.3  2bps 9.4 4.1 4.9 0.9 213 212 1.4 208

  17. Slide 17: Non-Interest Income (Continuing)

    NoII (Continuing) Lower fees earned from Investment Banking and Wealth Management, offset by stronger trading and Business Banking fee income YoY Growth  4%  13%  30% (3%)  (35%)  (23%)  (30%)  4%  19%  25%  (1%)  >100%  3% Composition 5% 9% 17% 14% 4% 8% 8% 5% 10% 14% 4% 2% 100% 31 11

  18. Slide 18: Neutral JAWS

    Expenses (Continuing) Neutral JAWS Business Segments Q2FY23 Q3FY23 QoQ Change 9MFY22 9MFY23 YoY Change (RM’ mil) Wholesale Banking 63 67  7% 189 190 ≈ Investment Banking 47 50  6% 129 142  10% Retail Banking 229 224  (2%) 628 669  6% Business Banking 53 51  (4%) 108 150  40% Group Funding & O

  19. Slide 19: Broad-based Loans Growth

    Loans (Reported) Broad-based loans growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: ROA1: RoTA1: Fixed rate – 21% Islamic – 35% Retail – 55% 0.92% 0.93% Variable rate –79% Conventional – 65% Non-retail – 45% YTD Growth  4%  6%

  20. Slide 20: Watchful of Retail Credit Exposures

    Asset Quality (Reported) Watchful of Retail credit exposures Net Impairment (YoY Movement) Overlay (PL): RM’ mil Q1FY23: 30.0 Q2FY23: 0.6 145.5 Q3FY23: (4.5) 0.1 14.1 199.7 113.2 238.4 714.6 714.5 26.2 56.1 514.7 99.7 3.5 416.1 276.7 302.9 9MFY22 AmGen 9MFY22 Overlay 9MFY22 ECL ECL Individual Recove

  21. Slide 21: Vigilant Monitoring of Sector Exposures

    Asset Quality Vigilant monitoring of sector exposures Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’22 Dec’22 Sector Composition Movement Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil 2% Agricultur

  22. Slide 22: Consistent Retail Deposit Growth, CASA Mix 32.2%

    Deposits (Reported) Consistent Retail deposit growth, CASA mix 32.2% Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) CASA Trend YTD Growth Industry Customer Deposits Trend YTD Growth Industry  1%  3%1 9MFY23 40.0  (7%) ≈1 9MFY23 124.3  2%  5%2 FY22 43.1  21%  6%2 FY22 122.6 FY21 12

  23. Slide 23: Capital Build on Track

    Capital (Reported) Capital build on track RWA/Total Assets FHC Capital Adequacy Ratios3 RM’ bil 1 2 Total Assets RWA/Total Assets Peers CET 1 / Tier 1 Total CAR 65.0% 64.4% 66.7% 67.4% 65.4% 15.80% 15.78% 15.98% 15.43% 15.18% 15.32% 14.48% 14.14% 58.4% 58.5% 58.1% 56.8% 55.9% 11.89% 12.44% 11.65% 12

  24. Slide 24: 9MFY23 Summary

    Summary 9MFY23 Summary STRONG CREDIT PROFILE PERFORMANCE • Improved ROE to 10.1% • GIL uptick in RB as expected • Deposit competition • Net credit cost guidance unchanged OPERATING BALANCE SHEET LEVERAGE STRENGTH • Neutral JAWS • Solid foundation • On-going digitalisation • Capital build on track in

  25. Slide 25: Thank You

    THANK YOU

  26. Slide 26: Reported Yearly Performance

    9MFY23 Results (Reported) Reported yearly performance PATMI / (LATMI) (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) PATMI / (LATMI) ROE (%) PATMI: ROE: Total Income Non-interest Income % Total Income: YoY Growth  17.7% YoY Growth  0.9% CAGR FY19-FY22:  5.9% 8.8% YoY Growt

  27. Slide 27: (Impairments) / Writebacks

    Asset Quality (Continuing) (Impairments) / Writebacks Net (Impairments) / Writebacks and GIL Ratio Total impairments by category (RM’ mil) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 QoQ Change 9MFY22 9MFY23 YoY Change ECL Stage 1 & 2 / CP – Non defaulted (122) (124) 56 561 6 19 (55)  >100% (1

  28. Slide 28: Loans by Sector vs Industry

    Loans (Reported) Loans by sector vs industry AmBank Group (RM’ bil) Loans 2% 2% 12% 1% 3% 9% 4% 6% 6% 1% 54% ≈ 100% Composition YTD  28% 1%  (6%)  18%  (1%)  4%  5%  31%  12%  5%  5%  (76%)  5% Growth Dec'22 126.3 68.3 15.0 4.3 10.9 7.2 7.4 3.0 2.2 1.4 5.1 1.5 0.0 Wholesale, Finance, Mi

  29. Slide 29: Divisional Performance

    Divisional Performance

  30. Slide 30: Wholesale Banking

    Wholesale Banking (Reported) Wholesale Banking QoQ Growth:  18% Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) YoY Growth:  >100% 9MFY22: 292 9MFY23: 751 Total Income 288 RM1,114 mil  13% 227 237  49% 143 127 22 Transaction Banking 22% Q1FY22 Q2FY22 Q3FY22 Q4FY22

  31. Slide 31: Wholesale Banking

    Wholesale Banking (Reported) Wholesale Banking Income Statement YoY Growth  12%  20%  13% ≈  16%  (>100%)  >100%  >100%  >100% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY23 870 244 1,114 (190) 925 47 972 (220) 751 9MFY22 780 203 983 (

  32. Slide 32: Investment Banking

    Investment Banking (Reported) Investment Banking League Table Market Share of Value and Volume Traded on Bursa (KLSE)1 Market Share1 As At Rank2 31 December 2022 Trading Value Trading Volume DCM 4.1% 4.0% 11.2% 4 3.6% (Overall MYR Bonds) 3.2% 3.2% 5.3% Islamic Sukuk 10.5% 4 4.8% 4.3% 4.5% 4.0% Uni

  33. Slide 33: Investment Banking

    Investment Banking (Reported) Investment Banking Income Statement YoY Growth  14%  (15%)  (12%)  10%  (31%)  >100%  (36%)  (41%)  (35%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY23 38 200 238 (142) 96 (1) 96 (19) 77 9MFY22 33 236 27

  34. Slide 34: Retail Banking

    Retail Banking (Reported) Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) Total Income QoQ Growth:  46%  13% YoY Growth :  (8%) RM 1,424 mil  38%  10%  3% Others 9MFY22: 423 9MFY23: 389 4% Auto Retail SME 12% 9%  (28%) 162 Wealth COOP & 4% 146 144

  35. Slide 35: Retail Banking: Cards in Circulation

    Retail Banking (Reported) Retail Banking Wealth Sales^ (RM’ mil) Merchant Volume QoQ Growth:  25% Merchant volume (RM'mil) QoQ Growth:  (4%) YoY Growth:  47% YoY Growth:  6% Merchants in force ('000) QoQ Growth:  (1%) YoY Growth:  (3%) 9MFY22: 3,796 9MFY23: 4,041 35 35 35 35 35 34 34 1,728 9MF

  36. Slide 36: Retail Banking

    Retail Banking (Reported) Retail Banking Income Statement YoY Growth  16% (6%)  13%  6%  19%  >100% (8%)  (7%)  (8%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY23 1,242 182 1,424 (669) 755 (244) 511 (122) 389 9MFY22 1,069 194 1,264 (

  37. Slide 37: Business Banking

    Business Banking (Reported) Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth:  4% QoQ Growth:  (74%) YoY Growth:  11% YoY Growth:  (5%) Non-trade Trade 20,068 18,736 19,053 19,336 18,070 17,329 17,374 5,200 5,172 5,300 5,249 4,676 4,675 4,945 9MFY22: 178 9MFY23: 169 13,564 1

  38. Slide 38: Business Banking

    Business Banking (Reported) Business Banking Income Statement YoY Growth  22%  25%  23%  40%  17%  81%  (3%)  4%  (5%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY23 399 107 506 (150) 356 (133) 223 (54) 169 9MFY22 326 86 412 (108) 304

  39. Slide 39: Islamic Banking

    Islamic Banking (Reported) Islamic Banking Income Statement YoY Growth  18%  13%  20%  (66%)  >100%  >100% > 100% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ 9MFY23 918 (241) 677 (141) 536 (124) 412 9MFY22 778 (213) 565 (419) 146 (33) 112 9MFY23 PAT 9MFY22 PAT Positive g

  40. Slide 40: AmBank (M)

    AmBank (M) entity level AmBank (M) Income Statement YoY Growth  11%  8%  10%  9%  11%  (47%)  34%  >100%  7% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income 9MFY23 1,790 475 2,265 (1,030) 1,235 (163) 1,072 (243) 829 9MFY22 1,616 441 2,057 (94

  41. Slide 41: Appendix: Continuing Operations - P&L by Quarters

    P&L – Continuing Operations Appendix: Continuing Operations - P&L by Quarters FY21 FY22 FY23 YoY Movement FY21 – FY23 YoY Movement Q3FY22 Q3FY23 9MFY22 9MFY23 9M 9M 9M RM’mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 VS VS vs vs FY21 FY22 FY23 Q3FY21 Q3FY22 9MFY21 9MFY22 NII 576 706 746 775 786 769 815 781 8

  42. Slide 42: Glossary & Disclaimer of Warranty and Limitation of Liability

    Glossary & Disclaimer Glossary & Disclaimer of warranty and limitation of liability Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market Growth Definition QoQ growth refers to Q3FY23 vs Q2FY23 YoY gr

AMMB Holdings Berhad — 9MFY2023 Earnings Presentation on 6ix