Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q1 FY2009 Earnings Presentation
26 slides from Malayan Banking Bhd's earnings presentation, Nov 11, 2008
Slide 1: Financial Results First Quarter FY2009 Analyst Conference Call
Financial Results First Quarter FY2009 ending 30 Sept 2008 Analyst Conference Call 11 November 2008
Slide 2: 1Q FY09 Highlights
1Q FY09 Highlights Core commercial banking and International Banking franchise remain strong. Business and Investment banking and insurance business continued to be challenging. Financial 16.4% YoY loans growth contributing to 6.8% increase in gross Interest Performance Income. Low costs depos
Slide 3: Financial Performance Highlights
Financial Performance Highlights 1Q FY09 1Q FY08 U 4Q FY08 U RM million Sep '08 Sep '07 YoY Jun '08 QoQ Net interest income 1,265.0 1,311.6 -3.5% 1,351.0 -6.4% Islamic Banking income 282.0 209.6 34.6% 273.1 3.3% Non-interest income 478.7 610.2 -21.5% 1,357.8 -64.7% Net income 2,025.7 2,131.3 -5.0% 2
Slide 4: Revenue by Segment
Revenue by Segment (RM mil) 1QFY09 1QFY08 % Chg Consumer Banking 1,040.3 1,019.4 2.1% Corporate, Business, Investment Banking & Treasury 867.6 816.3 6.3% International 421.9 397.9 6.0% Insurance & Takaful 183.2 187.0 -2.0% Exceptional Items (487.3) (289.2) -68.5% Total Income 2,025.7 2,131.4 -5.0% O
Slide 5: Net Interest Income & Margin
Net Interest Income & Margin RM million 3,500 Net interest income declined by RM46.6 million or -3.6% over that of the corresponding quarter to RM1,265.0 million. 3,000 2,911 2,846 2,500 Interest income movements : • Lower interest income from deposits placed with financial institutions and securiti
Slide 6: Net Interest Margin
Net Interest Margin • Compared to 1Q08, NIM declined 9 bps from 2.59% • Net Interest Margin (NIM) declined by 31 bps to 2.50% QoQ. • NIM would be 2.62% if exclude interest expense on capital securities. % Net Interest Margin and Effective Interest Rates on Loans and Deposits 7.0 6.60 6.53 6.61 6.48
Slide 7: Non-Interest Income
Non-Interest Income • Non interest Income (NII) excluding reversal of FX gain relating to BII acquisition grew 10.1% YoY. 1Q FY09 1Q FY08 YoY 4Q FY08 QoQ Sept 08 Sept 07 Change Jun 08 Change Non Interest Income (Transactional – Customer Franchise) Commission, Service Charges and Fees 397.6 331.9 19.
Slide 8: Operating Expenses
Operating Expenses • Higher personnel cost of 26.1% YoY was due to salary increase and arrears of unionised staff salary. • Growth in expenses excluding one-off costs of salary revision (RM35m personnel cost) and operational expenses would translate into a more sustainable annual growth rate of 14.6
Slide 9: Balance Sheet Changes
Balance Sheet Changes • Balance sheet expanded 13.1% QoQ due to consolidation of BII and loans growth. • Total assets growth excluding BII would be 4.4% QoQ. (RM billion) Sep 08 Jun 08 Change % change Cash and short-term funds 27.4 27.6 (0.2) -0.8% Deposits and placements with FI 6.8 9.0 (2.1) -23.8
Slide 10: Gross Loans Growth
Gross Loans Growth • Gross Loans continued to show strong growth in key product lines. 200 (RM billion) Sep 08 Sep 07 YoY Jun 08 QoQ Growth Growth 180 Domestic 124.6 109.9 13.4% 122.1 2.1% 28.2 Loans (RM billion) 12.2 160 Consumer 58.9 54.9 7.3% 58.0 1.5% 10.8 11.1 Securities 10.4 9.8 5.7% 10.3 0.2%
Slide 11: Customer Deposits Growth
Customer Deposits Growth • Depositor base continue to grow through specific deposits campaigns • Higher shift to CASA deposits. Excluding BII, CASA grew 1.5% QoQ and 12.4% YoY. Customer deposits (RM billion) Composition of customer deposits (%) 15.7% YoY 6.3%YoY exc. BII 100% 100% 9.5% QoQ, 0.6% QoQ
Slide 12: Asset Quality
Asset Quality • Asset quality continues to show significant improvement but could be challenging in coming quarters in light of the current economic environment. • 1QFY09 loan loss provision was higher at RM192.2 million was due to absence of large recoveries and higher General Provisions. However,
Slide 13: Non Performing Loans
Non Performing Loans Declining trend in Gross NPLs in latest quarter have generally flattened. Domestic RM m Overseas RM m 9,000 900 8,000 800 7,000 700 6,000 600 5,000 500 4,000 400 3,000 300 2,000 200 1,000 100 - - Mar 08 Mar 08 Jun 07 Sep 07 Dec 07 Jun 08 Sep 08 Jun 07 Jun 08 Sep 07 Dec 07 Sep 08
Slide 14: Maybank Group: Key Ratios
Maybank Group: Key Ratios 1Q FY09 1Q FY08 Sep 08 Sep 07 ● Net Interest Margin 2.50% 2.59% 2.62% if excluding capital securities funding ● Net Return on Equity 11.7% 18.7% ● Fee to Income Ratio 23.6% 28.6% ● Fee to Income Ratio (exc.reversal of forex gain) 30.3% 28.6% ● Cost to Income 60.0% 47.3% Dis
Slide 15: New Organisation
New Organisation Pres ident / Group CEO Dato’ Sri Abdul Wahid Omar Head Consumer Banking - Lim Hong Tat Head ™ Insurance & Takaful/ Asset Mgmt CEO Mayban Fortis Holdings Bhd Dato’ Aminuddin Md Desa — Acting CEO Maybank Islamic Bhd Ibrahim Hassan — Head Corporate Banking Tracy Ong Head ™ Business Ban
Slide 16: Update on Leap 30
Update on Leap 30 • Set-up of Transformation Office/ PMO 10 dialogue sessions with CEO covering all regions and Singapore to communicate on Maybank’s Transformation Blueprint Governance and soft infrastructure for the Transformation Office/ PMO have been established. 1 week Boot Camp training
Slide 17: Update on Leap 30
Update on Leap 30 • Transformation Initiative progress Detailed planning for each initiative is underway – 15 initiative charters have been signed by initiative sponsors. PMO will create an overall implementation master plan based on each detailed initiative plan. Communication plan is being d
Slide 18: Take Aways & Prospects
Take Aways & Prospects Core commercial banking franchise remains resilient, despite challenging market environment. Strong contribution from International Business in line with international expansion strategy. Investment Banking and Insurance businesses continue to be challenging. Continued str
Slide 19: Thank You
THANK YOU 19
Slide 20: Appendices
APPENDICIES 20
Slide 21: Consumer Banking
Consumer Banking (RM mil) 1QFY08 1QFY09 % Chg Net Interest Income 724.1 739.2 2.1% Fee & Commission Income 295.3 301.1 2.0% Sources of Total Revenue 1,019.4 1,040.3 2.1% Commissions and Fees Others Remittances • Total Revenue improved by 2.1% in 1QFY09. 10% 27% Unit Trust Com • Non interest income m
Slide 22: Corporate & Business Banking
Corporate & Business Banking (RM mil) 1QFY08 1QFY09 % Chg Net Interest Income 606.5 595.5 -1.8% Fee & Commission Income 209.8 272.1 29.7% Total Revenue 816.3 867.6 6.3% • Total Revenue improved by 6.2% in 1QFY09. • Loans to Corporates grew by 7.9% and SMEs contracted -4.0%. In total grew by 2.6%. •
Slide 23: International
International (RM mil) 1QFY08 1QFY09 % Chg Net Interest Income 275.2 296.2 7.6% Fee & Commission Income 122.7 125.7 2.4% Total Income 397.9 421.9 6.0% • Total revenue improved by 6.0% in 1QFY09. • International Loans growth excluding BII grew by 25.2% YoY. 1QFY08 1QFY09 • Singapore continue to contr
Slide 24: Insurance & Takaful
Insurance & Takaful Premium Contribution by Channel (RM mil) 1QFY08 1QFY09 % Chg Net Interest Income 22.8 23.6 3.5% ADC Life/Family Fee & Commission Income 164.2 159.6 -2.8% 15% Enterprise 2% Total Income 187.0 183.2 -2.0% Overheads 120.2 167.8 39.6% Banca- Maybank Profit before Tax 66.8 15.4 -76.9%
Slide 25: BII Financial Highlights
BII Financial Highlights Income Statement 3Q08 3Q07 2Q08 in billion Rupiah Sep 08 Sep 07 YoY Jun 08 QoQ Interest Income 4,289 4,164 3% 1,396 6% Interest Expense (2,193) (2,301) -5% (707) 12% Net Interest Income 2,096 1,863 13% 689 0% Non Interest Income 935 904 3% 300 16% Gain/Loss on Marketable Sec
Slide 26: MCB Financial Highlights
MCB Financial Highlights Income Statement YTD YTD PKR million Sep-08 Sep-07 YoY Net Interest Income 20,320 17,939 13.3% Non-Fund Based Income 4,501 5,075 -11.3% Total Income 24,821 23,014 7.9% Overhead (6,319) (5,060) 24.9% Operating Profit 18,502 17,954 3.1% Non-Operating Expenses (2,207) (1,573) 4
Malayan Banking Berhad (Maybank) — Q1 FY2009 Earnings Presentation on 6ix