Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — FY2021 Earnings Presentation
48 slides from Ammb Holdings Bhd's earnings presentation, May 31, 2021
Slide 1: FY2021 Results Investor Presentation
FY2021 RESULTS INVESTOR PRESENTATION 31 MAY 2021
Slide 2: GCEO Presentation
GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 FY21 Financial snapshot 4 Effects of corporate actions 5 Repayment assistance 7 Loans by stages 8 Outlook for 2021 9 Focus 8
Slide 3: FY21 Financial snapshot
Financial Snapshot FY21 Financial snapshot FY21 Financials Resolution of legacy matters and one-off goodwill and other impairment charges impacted results 4,552 Income 8% • Sustained income growth FY20: 4,227 2,132 Expenses 1% • Maintained cost discipline FY20: 2,108 2,420 PBP 14% • Positive J
Slide 4: Effects of corporate actions
Post-Settlement Effects of corporate actions Settlement and Private Placement (PP) impact to capital ratios Goodwill by Banking CGUs – post impairment CET 1 (with TA) Total CAR (with TA) Settlement: Net of Banking CGU2 Before Total CET1: -2.5% PP: goodwill (RM’ mil) impairment impairment TCR: -2.2%
Slide 5: Repayment assistance overview
Repayment Assistance Repayment assistance overview Repayment assistance by type of borrowers Corporate: Repayment assistance by Internal Risk Grade Marginal ~ Impaired Retail SME Corporate Substandard 0.06 bil 18% of total 1% 0.40 bil gross loans 11% 20.6 bil 13% of total gross loans 3.6 bil 15.2 bi
Slide 6: Repayment assistance: Retail portfolio
Repayment Assistance Repayment assistance: Retail portfolio Mortgages Auto finance PH RA PH RA 3.9 bil 9.0 bil 0.2 bil 1.3 bil 6.2 bil 1.5 bil 3.7 bil 7.7 bil 1.2 bil 4.7 bil 0.3 bil 0.9 bil Dec'20 Mar'21 Dec'20 Mar'21 MIA ≥3 MIA ≥3 MIA 2 0.11 bil MIA 2 0.04 bil 0.33 bil 2% 0.09 bil 4% MIA 1 5% 0.71
Slide 7: Loans by stages
Loans Loans by stages Loans by ECL Stages (RM’ bil) Breakdown by Business Segments (%) Stage 1 Stage 2 Stage 3 BNM 6-month Targeted Stage 1 loan moratorium Repayment Assistance 100.8 102.0 104.5 107.2 107.4 110.6 111.9 114.8 WB 2% 2% 2% 2% 2% 2% 2% 2% BB 11% 11% 11% 11% 12% 12% 13% 13% 86% RB 85% 82
Slide 8: Outlook for 2021
Market Outlook Outlook for 2021 Malaysia GDP Growth Inflation Export growth USD/MYR outlook 5.5% to 6.0% 3.0% to 3.5% 14.0% - 15.0% 4.06 – 4.10 Banking sector Liquidity & Loans growth Asset Quality OPR capital positions 4.0% to 5.0% Weaker 1.75% Resilient 8 FY2021 Results – Investor Presentation
Slide 9: Focus 8: Key initiatives and progress
Focus 8 Strategy Focus 8: Key initiatives and progress The path to ROE of 10% • RWA management • Sharpen capital allocation Building capital light revenue • FX income grew 24% • ASNBV sales grew 120% in wealth management Sharpening our segment play • Over 200 active users in BizHub SME Marketplace •
Slide 10: GCFO Presentation: Financial Overview
GCFO PRESENTATION Jamie Ling 11 - 26 Financial Overview
Slide 11: Q4FY21 Financial overview
Financial Overview Q4FY21 Financial overview 1 Capital, Liquidity and Funding • CET1 at 11.3%, adequate loss absorption capacity. CET1 at 10.4% (without Transitional Arrangements) • Highly liquid (FHC LCR of 157.5%, LDR 95.2%) • NSFR for all banking entities above 100% 2 Q4FY21 Results (QoQ) • Incom
Slide 12: FY21 Performance summary – P&L
Financial Overview FY21 Performance summary – P&L P&L Q3FY21 Q4FY21 QoQ Change FY20 FY21 YoY Change (RM’ mil) Total Income 1,176 1,129 4% 4,227 4,552 8% Expenses 545 525 4% 2,108 2,132 1% PBP 631 605 4% 2,119 2,420 14% Net Impairment 262 492 88% 336 1,137 >100% Settlement 2,830 2,830
Slide 13: FY21 Performance summary – balance sheet
Financial Overview FY21 Performance summary – balance sheet Balance Sheet Q3FY21 Q4FY21 QoQ Change FY20 FY21 YTD Change (RM’ bil) Gross Loans 111.9 114.8 3% 107.2 114.8 7% GIL 1.73% 1.54% 19bps 1.73% 1.54% 19bps LLC 103.4%1 135.6% >1000bps 93.4%1 135.6% >1000bps Customer Deposits 119.0 1
Slide 14: Additional items to highlight
Underlying Additional items to highlight P&L (RM’ mil) FY19 FY20 YoY Change FY21 YoY Change Income – Reported 3,922 4,227 8% 4,552 8% Foreclosed properties disposal gain 22 - - - - Net modification (loss)/ unwinding - - - 41 - Income after adjusted items 3,900 4,227 8% 4,511 7% Expenses – Re
Slide 15: Consistent income growth
Income Consistent income growth Business Segments Q3FY21 Q4FY21 QoQ Change FY20 FY21 YoY Change (RM’ mil) Wholesale Banking 387 317 18% 1,237 1,509 22% Investment Banking 86 94 8% 306 346 13% Retail Banking 437 418 4% 1,466 1,598 9% Business Banking 104 113 9% 366 390 6% Group Fundin
Slide 16: Broad-based PBP growth
PBP & PATMI Broad-based PBP growth Business Segments Q3FY21 Q4FY21 QoQ Change FY20 FY21 YoY Change (RM’ mil) Wholesale Banking 308 249 19% 934 1,227 31% Investment Banking 38 49 28% 119 165 39% Retail Banking 226 192 15% 601 733 22% Business Banking 69 77 12% 221 251 14% Group Fundin
Slide 17: P&L walk
Group P&L P&L walk NIM NoII % CTI Effective Tax Rate FY21 1.90% 35.5% 46.8% -6.5% FY20 1.94% 34.4% 49.9% 18.3% YoY 4% 11% 8% 1% 14% 100% >100% 31% >100% 2% >100% Growth 164 41 120 24 4,788 1,341 801 962 (3,826) 2,830 101 1,937 2 Non- Goodwill Net Interest Net Mod Total (LATMI) / *On
Slide 18: Margin recovery in 2HFY21
NIM Margin recovery in 2HFY21 Net Interest Margin (NIM) Movement (YoY) QoQ NIM Q4FY21: Divisions Funding + Deposits Reported: 2.08% ( 5bps) bps Underlying: 1.93% ( 4bps) Q3FY21: 0.2 Reported: 2.03% 15.2 0.1 Underlying: 1.97% 1.0 2.7 9.7 Reported: Underlying: 16.3 4bps 7bps 3.0 194 12.3 190 187
Slide 19: Strong trading, investment banking, wealth management and insurance performance
NoII Strong trading, investment banking, wealth management and insurance performance YoY Growth 25% 29% 13% 48% 12% 5% 9% >100% >100% 11% Q1FY21: 478.5 Q2FY21: 414.9 54 Q3FY21: 397.3 Q4FY21: 326.4 21 40 44 4 34 18 66 1,617 40 1,453 Corporate & Group Investment Group Wealth Busine
Slide 20: CTI improved YoY, positive JAWS of +7%
Expenses CTI improved YoY, positive JAWS of +7% Business Segments Q3FY21 Q4FY21 QoQ Change FY20 FY21 YoY Change (RM’ mil) Wholesale Banking 79 68 14% 303 282 7% Investment Banking 48 45 7% 187 181 3% Retail Banking 212 226 7% 865 865 Business Banking 35 36 2% 145 139 5% Group Fundi
Slide 21: Continued growth in Retail and SME loans, above market growth
Loans Continued growth in Retail and SME loans, above market growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers type: ROA1: RoTA1: Fixed rate – 21% Islamic – 32% Retail – 54% -2.24% -2.27% Variable rate –79% Conventional – 68% Non-retail
Slide 22: Overlay macro provisions as additional buffers
Asset Quality Overlay macro provisions as additional buffers Net Impairment (YoY Movement) Gross Impaired Loans, GIL and LLC Ratios RM’ mil 578.2 1,136.7 Retail Wholesale Loan Loss Coverage 1 Business GIL Ratio Q1FY21: 49.9 135.6% Q2FY21: 332.5 100.5% 114.0% 79.7% 93.4% Q3FY21: 262.1 416.6 Q4FY21: 4
Slide 23: Close monitoring of asset quality
Asset Quality Close monitoring of asset quality Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’20 Mar’21 Sector Composition YTD Growth 3% 1% RM’mil RM’ mil RM’ bil Agriculture 85 80 4% 6% FY21 2.7 Mining and qu
Slide 24: Deposits grew in line with loans, CASA up 24% YoY
Deposits Deposits grew in line with loans, CASA up 24% YoY Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry FY21 120.5 7% 6%1 FY21 35.8 24% 21%1 FY20 113.0 6% 2%2 FY20 28.8 16% 10%2 FY19 106.9 12%
Slide 25: Strengthening measures taken on capital
Capital Strengthening measures taken on capital RWA/Total Assets FHC Capital Adequacy Ratios3 RM’ bil Total Assets RWA/Total Assets Peers 1 CET 1 / Tier 1 Total CAR Post Private 72.2% 2 Placement 72.2% 65.0%2 64.4% 2 66.7% 2 15.4% 15.8% 15.2% 13.6% 14.5% 59.5% 59.3% 58.4% 58.5% 58.1% 11.9% 12.4% 12.
Slide 26: FY22 Agenda
FY22 Agenda FY22 Agenda Strengthening balance sheet Accelerating capital build Post COVID-19 debt rehabilitation Significant overlays taken, maintain credit vigilance (MCO3.0) Maintain higher liquidity buffers MCO3.0 contingency plans in place Cost efficiency Continuous adoption of automation 26 FY2
Slide 27: Thank You
THANK YOU
Slide 28: Yearly performance
FY21 Results Yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) Total Income (LATMI) / PATMI ROE (%) Total Income Non-interest Income % CAGR FY17-FY21: 4.9% YoY Growth 7.7% 39% 38% 36% 8.8% 34% 34% 8.5% 7.0% 7.4% 1,325 1,132 1,505 1,341 FY17
Slide 29: Non-interest income and (LATMI) / PATMI mix
NoII & PATMI / (LATMI) Non-interest income and (LATMI) / PATMI mix Non-interest Income by Lines of Business (YoY) (LATMI) / PATMI by Lines of Business (YoY) 25% Retail Banking 52% Wholesale Banking 3% Investment Banking 38% Business Banking 15% 2 Insurance 53% Group Funding & Others >1
Slide 30: Impairments
Asset Quality Impairments Net Impairment / (Writebacks) and GIL Ratio Total impairments by category (RM’ mil) Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 QoQ Change FY20 FY21 YoY Change ECL Stage 1 & 2 / CP – Non defaulted1 (128) (38) (29) 116 31 121 454 310 32% (79) 915 >100% ECL St
Slide 31: Loans by sector vs industry
Loans Loans by sector vs industry AmBank Group (RM’ bil) Loans Composition 2% 2% 13% 1% 4% 8% 4% 4% 7% 1% 54% ≈ 100% YTD Growth 10% 18% 10% 43% 3% 17% 26% 21% 5% 10% 9% 3% 7% Mar'21 114.8 61.6 14.6 4.7 9.0 4.8 7.7 2.7 2.9 1.2 4.5 1.0 0.0 Wholesale, Finance, Mining & Electri
Slide 32: Divisional Performance
Divisional Performance
Slide 33: Wholesale Banking
Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Total Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth: 49% YoY Growth: 3% Total Income RM1,509 mil FY20: 772 FY21: 747 259 269 13% 220 188 Transaction 164 161 146 Banking 17% 111 3% Transaction Wholesale Banking Ba
Slide 34: Wholesale Banking
Wholesale Banking Wholesale Banking Income Statement YoY Growth 29% 7% 22% 7% 31% >100% 2% 3% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY21 1,096 414 1,509 282 1,228 257 971 223 747 FY20 850 387 1,237 303 934 (60) 994 222 772
Slide 35: Investment Banking
Investment Banking Investment Banking League Table Market Share of Value and Volume Traded on Bursa (KLSE)1 Market Share1 As At Trading Value Trading Volume Rank2 31 Mar 2021(%) 3.6% 3.6% 3.4% DCM (Overall MYR Bonds) 11.9% 4 3.2% 2.9% Islamic Sukuk 10.5% 4 5.0% 4.9% 4.8% 4.3% 4.0% Unit Trust 8.2%
Slide 36: Investment Banking
Investment Banking Investment Banking Income Statement YoY Growth 17% 13% 13% 3% 39% 23% 38% 40% 38% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY21 47 299 346 181 165 (7) 172 37 136 FY20 40 265 306 187 119 (6) 125 26 98 FY21 PA
Slide 37: Retail Banking
Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business (LAT) / PAT Trend (RM’ mil) QoQ Growth: >100% Total Income YoY Growth: 52% RM1,598 mil 20% 35% 12% Others Retail SME 1% FY21: 151 Auto FY20: 315 11% 146 14% 48% Wealth Others 92 8% Retail 86 7% Auto S
Slide 38: Retail Banking
Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth: 9% Merchant volume (RM'mil) QoQ Growth: 8% YoY Growth: 10% YoY Growth: 74% Merchants in force ('000) QoQ Growth: 1% YoY Growth: 1% FY20: 3,453 FY21: 6,002 37 36 36 35 35 35 35 35 1,853 1,692 FY20: 9,943 FY21
Slide 39: Retail Banking
Retail Banking Retail Banking Income Statement YoY Growth 9% 11% 9% 22% >100% 52% 52% 52% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY21 1,328 270 1,598 865 733 534 199 48 151 FY20 1,223 243 1,466 865 601 187 414 99 315 FY21 PA
Slide 40: Distribution Channels
Retail Banking Distribution Channels Regional Branches ATM CRM2 Offices Perlis 1 3 1 Kedah 6 19 6 Pulau Pinang 14 43 15 2 Perak 18 40 21 2 Selangor 36 174 42 2 Kuala Lumpur 23 77 27 3 Putrajaya 1 4 2 Negeri Sembilan 7 39 8 1 Melaka 6 26 8 1 Johor 21 75 30 1 Pahang 8 20 12 1 Population Density Tereng
Slide 41: Business Banking
Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) YTD Growth: 12% QoQ Growth: YoY Growth: 15% Non-trade Trade 12,586 11,898 12,160 11,248 11,420 10,850 10,069 10,425 2,730 2,569 2,537 2,640 2,647 FY20: 126 FY21: 144 2,527 2,585 2,462 9,330 9,623 9,856 8,264 8,607 8,
Slide 42: Business Banking
Business Banking Business Banking Income Statement YoY Growth 7% 5% 6% 5% 14% 10% 15% 16% 15% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY21 297 93 390 139 251 63 189 44 144 FY20 277 89 366 145 221 57 164 38 126 FY21 PAT FY20 P
Slide 43: Islamic Banking
Islamic Banking Islamic Banking Income Statement YoY Growth 2% 4% 5% >100% 72% >100% 64% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ FY21 927 297 630 503 127 (1) 128 FY20 909 309 600 155 445 93 352 FY21 PATZ FY20 PATZ Positive growth in FY21 Contraction in FY21 Ba
Slide 44: General Insurance
General Insurance General Insurance Loss Ratio and Combined Ratio PBT and PAT (RM’ mil) Loss Ratio Combined Ratio 97% 92% 92% 93% 91% YoY PBT Growth: 1% PBT PAT YoY PAT Growth: 2% 282 63% 57% 58% 60% 56% 260 262 242 FY17 FY18 FY19 FY20 FY21 192 Gross Premium Mix and Growth (RM’ mil) YoY GWP Grow
Slide 45: Insurance and Group Funding & Others
Insurance & Others Insurance and Group Funding & Others Income Statement – Insurance (General, Life & Takaful) YoY Growth 13% 5% 23% 35% 22% 9% 27% RM'mil Total Income Expenses PBP Impairment PBT Tax PAT FY21 660 357 303 (3) 305 29 276 FY20 584 338 246 (4) 250 32 218 Income Statement –
Slide 46: Shareholding structure
Corporate Structure Shareholding structure 23.8%1 AmCorp 13.0% EPF 10.7% PNB 9.2%2 Others 43.3% As at 31 March 2021 AMMB Holdings Berhad Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful 100% AMAB Holdings Sdn Bhd 100% AmBank (M) Berhad 51% AmGeneral Holding
Slide 47: Credit ratings, target price and recommendations
Ratings & Target Price Credit ratings, target price and recommendations Credit Ratings FY21 Ratings AMMB AmBank (M) AmBank Islamic AmInvestment RAM LT: AA3, ST: P1 LT: AA3, ST: P1 LT: AA3, ST: P1 LT: AA3, ST: P1 Outlook: Stable Outlook: Stable Outlook: Stable Outlook: Stable S&P LT: BBB+, ST: A-2 Ou
Slide 48: 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 Q4FY21 vs Q3FY21 YoY /