Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — H1 FY2025 Earnings Presentation

38 slides from Ammb Holdings Bhd's earnings presentation, Nov 27, 2024

  1. Slide 1: H1FY2025 Results Investor Presentation

    H1FY2025 RESULTS (Quarter Ended 30 September 2024) INVESTOR PRESENTATION 27 NOVEMBER 2024

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Jamie Ling 3 H1FY25 Financial Snapshot 4 Loans by Stages 5 Outlook for CY2024

  3. Slide 3: H1FY25 Financial Snapshot

    Financial Snapshot (Reported) H1FY25 Financial Snapshot H1FY25 PATMI grew 18% YoY, NIM expanded further, much lower impairment; H1FY25 Reported Financials Variance CET1 strengthened further enabling declaration of higher interim dividend • NII up 7%, lifted by NIM expansion of 1.93% (H1FY24: 1.79%)

  4. Slide 4: Portfolio quality stable

    Loans (Reported) Portfolio quality stable Loans by ECL Stages (RM’ bil) Breakdown by Business Segments (%) Stage 1 Stage 2 Stage 3 Stage 1 134.1 132.7 134.5 93.0% 93.7% 129.0 130.8 131.3 1.6% 1.7% 1.7% 1.7% WB 1.7% 1.7% 7.6% 8.2% 91.4% 9.8% 8.2% BB 9.9% 9.9% RB 91.3% 88.8% 88.9% Q1FY24 Q2FY24 Q3FY24

  5. Slide 5: Outlook for CY2024

    Market Outlook Outlook for CY2024 GDP Growth 4.5% to 5.0% Inflation 1.7% to 1.9% Malaysia Unemployment Rate 3.2% USD/MYR Outlook 4.40 to 4.50 Loans Growth 5.0% to 6.0% Asset Quality Stable Banking OPR 3.00% Sector Liquidity & Capital Positions Resilient CY = Calendar Year 55 H1FY25 Results – Investo

  6. Slide 6: GCFO Presentation

    GCFO PRESENTATION Shafiq Bin Abdul Jabbar 7-21 Financial Overview

  7. Slide 7: Q2FY25 Financial Overview: NIM +7bps to 1.96%

    Financial Overview (Continuing) Q2FY25 Financial Overview: NIM +7bps to 1.96%, PBP +6% to RM698m, PATMI RM501m 1 Q2FY25 Results (QoQ) • Income of RM1,228mil (Q1FY25: RM1,179mil), up 4% QoQ - NII grew 5% to RM901mil (Q1FY25: RM861mil), driven by 7bps NIM expansion to 1.96% (Q1FY25: 1.89%) - NoII up 3

  8. Slide 8: H1FY25 Performance Summary – P&L

    Financial Overview (Reported) H1FY25 Performance Summary – P&L P&L (RM’ mil) Q1FY25 Q2FY25 QoQ Change H1FY24 H1FY25 YoY Change Total Income 1,179 1,228  4% 2,326 2,407  3% - NII 861 901  5% 1,654 1,762  7% - NOII 318 327  3% 671 645  (4%) Expenses (521) (530)  2% (1,000) (1,051)  5% PBP 658

  9. Slide 9: H1FY25 Performance Summary – Balance Sheet

    Financial Overview (Reported) H1FY25 Performance Summary – Balance Sheet Balance Sheet (RM’ bil) Q1FY25 Q2FY25 QoQ Change FY24 H1FY25 YTD Change Gross Loans 132.7 134.5  1% 134.1 134.5 ≈ GIL 1.70% 1.67%  (0.03%) 1.67% 1.67% ≈ LLC (include Reg Reserves) 107.6% 102.1%  (5.5%) 109.5% 102.1%  (7.4%)

  10. Slide 10: P&L walk – NII and PATMI momentum continues

    Group P&L P&L walk – NII and PATMI momentum continues YoY Growth  7%  4%  6%  5%  6%  (72%)  21%  20%  22%  (100%)  18% Discont’d PATMI: (26) 147 (51) Positive growth in H1FY25 Contraction in H1FY25 Total Cont’d Discont’d Reported NII NOII Expenses PBP Impairment PBT Tax & Zakat Income PA

  11. Slide 11: Resilient income growth

    Income Resilient income growth Business Segments Q1FY25 Q2FY25 QoQ Change H1FY24 H1FY25 YoY Change (RM’ mil) Wholesale Banking 269 331  23% 592 600  1% - Inclusive of liability management 47 78  66% 11 126  >100% Investment Banking 100 97  (3%) 173 197  14% Retail Banking 475 477 ≈ 960 952  (

  12. Slide 12: NIM uplift by 14bps YoY and 7bps QoQ

    NIM NIM uplift by 14bps YoY and 7bps QoQ YoY NIM H1FY25: Net Interest Margin (NIM) Movement (QoQ) Reported: 1.93% (  14bps ) H1FY24: Reported: 1.79% Assets bps  7bps 2.8 5.9 0.7 (0.2) (1.1) (0.4) (1.4) 196 189 Q1FY25 Retail Wholesale 1 Investment Business Asset mix Deposits Others 2 Q2FY25 Banking

  13. Slide 13: Continuing NoII up 4% YoY driven by fee income growth

    NoII Continuing NoII up 4% YoY driven by fee income growth in IB, BB & RB Composition 6% 12% 23% 11% 13% 20% 6% 7% 2% 100% YoY Growth  17%  (42%)  14%  60%  (7%)  10%  32%  67%  (17%)  4%  (100%)  (4%) Positive growth in H1FY25 Contraction in H1FY25 H1FY24 NoII H1FY25 NoII Continuing NoI

  14. Slide 14: Q2FY25 2% positive JAWS leading to CTI of 43.1%

    Expenses Q2FY25 2% positive JAWS leading to CTI of 43.1% Business Segments Q1FY25 Q2FY25 QoQ Change H1FY24 H1FY25 YoY Change (RM’ mil) Wholesale Banking 86 90  5% 174 176  1% Investment Banking 58 60  4% 113 118  4% Retail Banking 287 285  (1%) 569 572  1% Business Banking 93 96  3% 189 188 ≈

  15. Slide 15: Banking PBP up 9% QoQ, 5% YoY

    PBP & PATMI Banking PBP up 9% QoQ, 5% YoY Business Segments Q1FY25 Q2FY25 QoQ Change H1FY24 H1FY25 YoY Change (RM’ mil) Wholesale Banking 183 241  31% 418 424  1% - Inclusive of liability management 47 78  66% 11 126  >100% Investment Banking 42 37  (13%) 59 79  33% Retail Banking 189 191  1%

  16. Slide 16: Flat loans growth in H1FY25, resetting of RB portfolio

    Loans Flat loans growth in H1FY25, resetting of RB portfolio Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: Fixed rate – 20% Islamic – 34% Retail – 55% Variable rate –80% Conventional – 66% Non-retail – 45% Composition 14% 30% 36% 9%

  17. Slide 17: Improved impairment charges in RB and WB

    Asset Quality Improved impairment charges in RB and WB Overlay: Q1FY25: 38.8 Net Impairment (YoY Movement) (RM’mil) Q2FY25: (21.7) Positive P&L impact in H1FY25 Negative P&L impact in H1FY25 Gross Impaired Loans (RM’mil) and Loan Loss Coverage (LLC) Ratios Credit Cost and New Impaired Loans Formatio

  18. Slide 18: Impaired loans stable

    Asset Quality Impaired loans stable Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’24 Jun’24 Sep’24 YTD QoQ Sector Composition Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil RM’ mil Movement Movement

  19. Slide 19: Deposits stable while efforts on improving cost of funds continues

    Deposits Deposits stable while efforts on improving cost of funds continues Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry H1FY25 136.3  (4%) ≈ H1FY25 46.1  (13%)  (1%) FY24 142.4  9%  5%2 FY24 52.8  8%  7%

  20. Slide 20: Capital strength double boosted by H1FY25 profits and FIRB adoption

    Capital Capital strength double boosted by H1FY25 profits and FIRB adoption RWA/Total Assets Capital Adequacy Ratios3 1 Total Assets RWA/Total Assets Peers CET 1 / Tier 1 TCR FIRB2 SA approach FIRB2 67.4% (without TA) 62.7% 63.3% 56.3% 17.92% 18.02% 17.82% 16.30% 16.52% 56.8% 55.3% 55.6% 54.9% RM’ b

  21. Slide 21: H1FY25 Summary

    Summary H1FY25 Summary STRONG CREDIT BALANCE SHEET SHAREHOLDERS’ PERFORMANCE PROFILE STRENGTH RETURN ▪ NIM expanded by ▪ GIL stable at 1.67% ▪ CET1 strengthened to ▪ Declared higher 14bps to 1.93% 15.29% further from interim dividend of ▪ Adequate Loan Loss accretion of H1FY25 10.3 sen per share ▪ S

  22. Slide 22: Thank You

    THANK YOU a So pae PRINCIPLED PROACTIVE ‘APPRECIATIVE COLLABORATIVE EXPERIMENTAL a)

  23. Slide 23: Appendix: P&L – Continuing & Discontinued Operations

    Appendix Appendix: P&L – Continuing & Discontinued Operations Year-on-Year H1FY24 H1FY25 YoY Movement Normalised Normalised Normalised Reported Reported Discontinued RM’mil Cont’d Ops Discont’d Op (B) Cont’d Ops Discont’d Op (B) Reported Continuing (A) + (B) (A) + (B) Operation (A) (A) Operations In

  24. Slide 24: Reported yearly performance

    H1FY25 Results (Reported) Reported yearly performance PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) Total Income: PATMI: ROE: CAGR FY22-FY24:  (0.2%) YoY Growth  18.0% YoY Growth  0.8% YoY Growth  3.5% PATMI ROE Total Income Non-Interest Income % 9.3% 9.8% 10.0% 9.

  25. Slide 25: (Impairments) / Recoveries

    Asset Quality (Impairments) / Recoveries Net (Impairments) / Recoveries and GIL Ratio Total impairments by category (RM’ mil) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 QoQ Change H1FY24 H1FY25 YoY Change ECL Stage 1 & 2 – Non defaulted1 (31) 98 (39) 188 25 4  (84%) 67 28  (57%) ECL Stage 3 – Defau

  26. Slide 26: Divisional Performance

    Divisional Performance PRINCIPLED PROACTIVE APPRECIATIVE COLLABORATIVE aie

  27. Slide 27: Wholesale Banking

    Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth:  61% YoY Growth:  1% Total Income RM600 mil  1% FY24: 755 H1FY25: 424 262  (2%) 233 Transaction 188 Banking  (15%) 167 167 162 18% Transaction Banking Corporate 3% Bank

  28. Slide 28: Wholesale Banking

    Wholesale Banking Wholesale Banking Income Statement YoY Growth  14%  (30%)  1%  1%  1%  3%  2%  5%  1% Net Interest Non-Interest Impairment RM' mil Total Income Expenses PBP PBT Tax & Zakat PAT Income Income write-back H1FY25 485 115 600 (176) 424 127 550 (127) 424 H1FY24 427 164 592 (174)

  29. Slide 29: Investment Banking

    Investment Banking Investment Banking League Table PAT Trend (RM’ mil) Market Share1 As At QoQ Growth:  (14%) Rank2 30 Sept 2024 YoY Growth :  50% DCM 13.1% 3 (Overall MYR Bonds) FY24: 86 H1FY25: 69 37 Islamic Sukuk 9.7% 4 32 27 Unit Trust 7.4% 5 26 18 Stockbroking3 7.0% 7 14 M&A3 41.8% 2 Fun

  30. Slide 30: Investment Banking

    Investment Banking Investment Banking Income Statement YoY Growth  12%  14%  14%  4%  33%  >100%  45%  27%  50% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income H1FY25 28 169 197 (118) 79 7 86 (17) 69 H1FY24 25 148 173 (113) 59 0 59 (1

  31. Slide 31: Retail Banking

    Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth :  22% Total Income  (1%) YoY Growth :  40% RM 952 mil  (49%)  (9%)  (6%) FY24: 94 H1FY25: 194 Others 4% Mortgage 107 Retail SME 97 101 11% 8% 87  50%  (18%) Wealth Auto Fin

  32. Slide 32: Cards in circulation

    Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth:  (18%) Merchant volume (RM'mil) QoQ Growth:  24% YoY Growth:  37% YoY Growth:  58% Merchants in force ('000) QoQ Growth:  (11%) YoY Growth:  (9%) FY24: 8,162 H1FY25: 5,857 FY24: 17,418 H1FY25: 10,778 3,222 34 34 3

  33. Slide 33: Retail Banking

    Retail Banking Retail Banking Income Statement YoY Growth (3%)  15% (1%)  1% (3%)  (40%)  41%  44%  40% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income H1FY25 799 153 952 (572) 380 (125) 254 (61) 194 H1FY24 827 133 960 (569) 391 (210)

  34. Slide 34: Business Banking

    Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth:  5% QoQ Growth:  (49%) Non-trade Trade YoY Growth:  17% YoY Growth:  56% 40,796 38,111 38,700 34,971 36,093 33,219 10,999 10,647 10,422 10,127 10,177 9,265 FY24: 506 H1FY25: 296 197 27,464 28,278 29,797 23,95

  35. Slide 35: Business Banking

    Business Banking Business Banking Income Statement YoY Growth  16%  14%  16% ≈  24%  (43%)  56%  56%  56% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income H1FY25 492 150 642 (188) 454 (66) 387 (91) 296 H1FY24 423 132 555 (189) 366 (117)

  36. Slide 36: AmBank (M) entity level

    AmBank (M) entity level AmBank (M) Income Statement YoY Growth  5%  (6%)  2%  6% ≈  (81%)  16%  21%  15% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY25 1,181 354 1,535 (672) 863 (29) 834 (200) 634 H1FY24 1,127 377 1,504 (637) 867 (148)

  37. Slide 37: AmBank Islamic entity level

    AmBank Islamic entity level AmBank Islamic Income Statement YoY Growth  10%  5%  9%  4%  13%  (42%)  23%  26%  23% Net Financing Non-Financing RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ Income Income H1FY25 558 73 631 (248) 383 (32) 351 (82) 269 H1FY24 509 70 579 (239

  38. Slide 38: Glossary & Disclaimer

    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 Q2FY25 vs Q1FY25 YoY gr

AMMB Holdings Berhad — H1 FY2025 Earnings Presentation on 6ix