Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Maybank — Shareholder Meeting (April 2015)
25 slides from Malayan Banking Bhd's shareholder meeting presentation, Apr 7, 2015
Slide 1: 55th Annual General Meeting
Humanising Financial Services Humanising Financial Services SKELETON DRAFT 55th Annual General Meeting Presentation to Shareholders by Datuk Abdul Farid Alias, President & CEO 7 April 2015 00
Slide 2: We are always guided by our Vision and Mission
We are always guided by our Vision and Mission Vision: To be a regional financial services leader Financial Performance for 2014 International initiatives and achievements Outlook and targets for 2015 Mission: Humanising Financial Services Improving customer experience across the region
Slide 3: Despite a challenging 2014, Maybank stayed focused and continued to deliver value
Despite a challenging 2014, Maybank stayed focused and continued to deliver value from its strong franchise 22
Slide 4: Summary Financial Performance for 2014
Summary Financial Performance for 2014 Net Fund Based Income Increased fund based income through Group loans growth RM12.6b, +5.9% of 13.4% while managing margin compression of 12 bps … Net Fee Based Income … but lower fee based income due to slower capital RM5.9b, -10.7% market activity and lower f
Slide 5: Financial Performance for 2014
Financial Performance for 2014 Revenue (Net Income) grew for all our key businesses Community Financial Services: +2.7% Global Banking: +2.0% International Banking: +6.5% Insurance and Takaful: +13.5% Offset by: For Global Banking, lower income from Investment Banking (-1.4%) and Global Ma
Slide 6: Group deposit growth of 11.1% within target of 10-12%
Group deposit growth of 11.1% within target of 10-12%, contributed by: Malaysia deposits growth of 7.4% Singapore double digit deposit growth of 16.5% Liquidity position: Group Loan to Deposit ratio at 91.8% (Malaysia: 89.5%, Singapore: 88.4% and Indonesia: 92.7% - bank level) Net interest mar
Slide 7: Asset Quality
Asset Quality Group Gross Impaired Loans (GIL) ratio rose 4 bp to 1.52% attributed to specific impairments in Malaysia and Indonesia Malaysia GIL rose 16 bp to 1.85% due to provisioning done for specific legacy business banking accounts. We are comfortable with our asset quality ratios against
Slide 8: Return on Equity
Return on Equity • Return on Equity (ROE) of 13.8% for 2014 was within the 13.0%-14.0% target range. • Target ROE was revised from 15% to 13.0%-14.0% mid-year after subdued capital market activity and slower lending activities in Malaysia and Indonesia in 1H 2014. 77
Slide 9: Building Strength Through Our International Operations
Building Strength Through Our International Operations • We had standout business performances in 2014 from Singapore and International operations, headed by Datuk Lim Hong Tat and Pollie Sim respectively. • We achieved better synergies through our regional framework and recorded higher revenues fro
Slide 10: Singapore Loans and Deposits
Singapore Maybank Singapore loans growth of … balanced by higher deposits growth 13.4% exceeded industry and … of 16.5%, also exceeding industry. 19.6% 16.5% 13.7% 13.8% 13.4% 8.5% Deposits 9.2% 7.1% growth growth Loans Dec 13 Dec 14 Dec 13 Dec 14 Industry Growth Maybank Singapore Growth • Business
Slide 11: Regional Private Wealth
Regional Private Wealth • Maybank’s Regional Private Wealth business for High Net Worth customers is centred in Singapore. • For the first full year of Private Wealth operations, we achieved breakeven performance in Malaysia and Singapore Total Assets Under New-to-bank Asset Management RM4 billion (
Slide 12: International
International • International PBT contribution (excluding Singapore and Indonesia) increased by 32.8% YoY. • International providing cross-border solutions and capturing trade flow between the ASEAN region and China • We secured a banking license in Myanmar and opened a representative office Myanmar
Slide 13: Indonesia
Indonesia • Setback for Indonesia as BII’s net profit fell 55% to Rp 699 trillion mainly due to higher loan loss provisions for specific corporate accounts affected by adverse market conditions. • To arrest asset quality deterioration, credit approval procedures were tightened resulting in Global Ba
Slide 14: Outlook for 2015
Outlook for 2015 Volatility in commodity and currency markets. Impact dependant on how long volatility lasts Mixed bag of opportunities and some challenges ahead in the markets we operate in. Our vision to be a truly ASEAN financial services group would benefit from: Malaysia taking over the
Slide 15: Market Outlook for 2015 Malaysia
Market Outlook for 2015 Malaysia Key Indicators Outlook • GDP (f): 4.5% (2014: 6%) • Consumer lending expected to • System loan growth (f): 7-8% moderate • System deposit growth: (f) 6-7% • Top line for banks to be challenging with subdued capital markets and soft • OPR: 3.25% (2014: 3.25%) loan dem
Slide 16: Market Outlook for 2015 Singapore
Market Outlook for 2015 Singapore Key Indicators Outlook • GDP (f): 2.5% (2014: 2.9%) • Government expected to maintain property cooling measures to prevent • System Loan growth (f): 8%-9% speculative activity • System Deposit growth (f): 5%-6% • Asset quality to remain stable • USD/SGD (f): 1.35 (2
Slide 17: Market Outlook for 2015 Indonesia
Market Outlook for 2015 Indonesia Key Indicators Outlook • GDP (f): 5.5% (2014: 5.02%) • Government infrastructure spending likely to increase, supporting loan • System Loan growth (f): 15% growth in 2H FY2015 • System Deposit growth (f): 15% • Funding to remain tight, leading to • Reference Rate (f
Slide 18: Group Strategic Priorities for 2015
Group Strategic Priorities for 2015 1. Strengthen the Group’s revenue growth 2. Continue focus on productivity Group-wide 3. Deploy capital efficient strategy 4. Continue with international market performance 5. Solidify our position in ASEAN for AEC opportunities e.g. Qualified ASEAN bank 1717 17
Slide 19: Focus on productivity Group-wide; Capital efficient strategy
Focus on productivity Group-wide • Continue with Strategic Cost Management Programme to manage our overheads growth in a comfortable range against income growth • Focus on IT expenses, marketing expenses and general and administrative expenses. • Drive productivity improvements, measured by profitab
Slide 20: Customers
Improving customer experience across the region “Humanising Financial Services” means that … Our customers and communities are the focus of our operations We are a market leader due to our Customers customers’ continued support and belief in us Our customers are our most important asset 1919
Slide 21: Group Customer Experience Management
Group Customer Experience Management In 2014, we undertook a reorganisation to realign with our regionalisation agenda to transform: Group Service Quality Group Customer Experience Management Management This means going beyond Service Quality measures and instead focuses on ‘how’ we can improve
Slide 22: Maybank is now more solution-focused
Maybank is now more solution-focused Maybank has transformed from being more product-focused to one that is more solution-focused. Product-focused Solution-focused Clients active across ASEAN have spurred us to transform from a Malaysian commercial bank to a regional financial services group. Ma
Slide 23: Better customer experience through technology
Better customer experience through technology We are the largest online banking provider in the Malaysian market and we are fully committed to being a digital lifestyle banking site, giving customers the convenience they seek of being able to bank with us anytime. We are constantly seeking ways
Slide 24: Our targets for 2015
Our targets for 2015 are: Return on Equity 13% - 14% Group Loans Growth 9% - 10% • Malaysia 8% - 9% • Singapore 8% - 9% • Indonesia 13% - 15% Group Deposits Growth 9% - 10% 2323
Slide 25: Thank You
THANK YOU Humanising Financial Services 2424