Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Invest Malaysia 2011
47 slides from Malayan Banking Bhd's conference presentation, Apr 7, 2011
Slide 1: Invest Malaysia 2011
Draft 5 7 April 2011 Malayan Banking Berhad Invest Malaysia 2011 Shangri-La Hotel, Kuala Lumpur 12-13 April 2011
Slide 2: Progress since Invest Malaysia 2010
Progress since Invest Malaysia 2010 Key takeaways from IM 2010 Progress since IM 2010 Maybank is strengthening its position as the Adopted new House of Maybank and expanded senior management leading banking franchise in Malaysia in line team structure from 1 July 2010 to reflect regional focus.
Slide 3: Maybank: In a Position of Strength
Maybank: In a Position of Strength Financial Highlights Strategic Updates Challenges and Key Takeaways Appendix: Financial Performance 1H FY11 ended 31 Dec 2010 2
Slide 4: Maybank: In a position of strength
Maybank: In a position of strength Leadership Position An Emerging Regional Leader ■ No. 1 bank in Malaysia ■ Presence in 8 ASEAN countries (including Kim Eng) Largest Islamic bank by assets ■ 5 International Financial Centres ■ No. 4 in South East Asia ■ Over 1,750 branches and offices in 14 ■ No.
Slide 5: Leading Bank in Malaysia
Leading Bank in Malaysia Total Assets (RM bn): 31 Dec 2010 Loans and Deposits (RM bn): 31 Dec 2010 358 248 228 269 226 177 200 Loans 157 168 Deposits 129 94 88 105 71 70 71 84 45 53 41 42 37 AMMB 22 28 26 32 38 Public CIMB HL Bank Maybank EON Cap RHB Cap Public EON Cap AMMB RHB Cap CIMB HL Bank Mayb
Slide 6: One of the Top Banks in ASEAN
One of the Top 10 Banks in ASEAN Total Assets (RM bn): 31 Dec 2010 Net Loans and Deposits (RM bn): 31 Dec 2010 DBS 676 DBS 362 462 OCBC 547 OCBC 274 339 UOB 510 UOB 250 294 MAYBANK 358 MAYBANK 228 No.4 248 No.4 CIMB 269 CIMB 168 200 Public Bank 226 157 Public Bank 176 128 Total Loans Bangkok Bank 19
Slide 7: Maybank Group's Global Network (including Kim Eng)
Maybank Group’s Global Network (including Kim Eng) Worldwide Presence In 8 ASEAN countries China • Philippines 1 branch (50 branches) 1 rep office Thailand: Kim Eng Hong • Kim Eng (4 branches) Kong (41 branches) London 1 branch 1 branch New York • An Binh Bank 1 branch • Cambodia (118 branches) (9
Slide 8: Financial Highlights
Maybank: In a Position of Strength Financial Highlights Strategic Updates Challenges and Key Takeaways Appendix: Financial Performance 1H FY11 ended 31 Dec 2010 7
Slide 9: 1H11 results on track
1H11 results on track ■ Better Financial Performance ■ PATAMI for 2Q11 grew 9.4% QoQ and 13.3% YoY to RM1.13 billion. 1H11 PATAMI grew 14.8% YoY to RM2.15 billion. ■ Revenue for 1H11 grew 5.1% contributed by revenue growth from Community Financial Services (6.1%), Corporate Banking (11.8%), Singapor
Slide 10: On track to achieve KPI for FY2011
On track to achieve KPI for FY2011 KPI for FY2011 Headline KPIs Target 1H11 achievements Return on Equity 14% 15.0% (normalised) Loans and Debt Securities Growth 12% 12.4% (annualised) Other targets Target 1H11 achievements Loans Growth • Malaysia 12% 8.5% • Singapore 5% 17.8% • BII 24% 27.3% Net In
Slide 11: Growing contribution from International operations
Growing contribution from International operations Gross Loans Gross Revenue Profit Before Tax International: International: International: 34% 5% 33% 6% 27% 3% 10% 8% 11% 14% 20% Dec 2010 16% 1H11 1H11 1H11 RM227.5b RM6.435b RM2.966b 67% 67% 73% Malaysia Singapore Indonesia Others 6% 4% 7% 12% 5% 6
Slide 12: Strategic Updates
Maybank: In a Position of Strength Financial Highlights Strategic Updates Challenges and Key Takeaways Appendix: Financial Performance 1H FY11 ended 31 Dec 2010 11
Slide 13: Transformation Journey reframed to ensure sustainability
Transformation Journey reframed to ensure sustainability To Be A Regional Financial 2015 2010 Services Leader 2008 Beyond Transformation Phase 1 Phase 2 LEAP30 Creates Momentum Converging Aspirations. Active Sectoral CEO-driven agenda – 1st Participation wave target to deliver PBT impact to Groupw
Slide 14: New House of Maybank Organisation Structure
New “House of Maybank” Organisation Structure to support aspirations Maybank Group CEO + Support (CFO, CRO,GHC, Legal, Compliance, Communications) Community Global Wholesale Insurance & E ISLAMIC Financial Services Banking Takaful N INSPIRED A Leveraging shared Regaining domestic Being the B distrib
Slide 15: Expanded Group Executive Committee to drive business growth
Expanded Group Executive Committee to drive business growth 14
Slide 16: Five Strategic Objectives to realise Vision
Five Strategic Objectives to realise Vision By 2015 Our Vision To be a Regional Financial Services Leader Our Mission Humanising Financial Services from the Heart of ASEAN Strategic Objectives 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by 2015 2. Leading ASEAN wholesale bank
Slide 17: Humanising Financial Services from the Heart of ASEAN
Humanising Financial Services from the Heart of ASEAN ■ Providing the people with access to financing Most extensive retail (385) and self-service Financial services accessibility terminal (4611) network in Malaysia in rural areas via mobile bus banking and the only bank in 18 rural locations Larges
Slide 18: Progress of Strategic Objectives: Community Financial Services
Progress of Strategic Objectives: Community Financial Services 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by 2015 Strategic Objectives 1. No. 1 Retail Financial Services provider Initiatives 2. Leading ASEAN wholesale bank ■ Community Financial Services: Serving consumers and
Slide 19: Progress of Strategic Objectives: Global Wholesale Banking
Progress of Strategic Objectives: Global Wholesale Banking 2. Leading ASEAN wholesale bank eventually expanding to Middle East, China & India Strategic Objectives 1. No. 1 Retail Financial Services provider Initiatives 2. Leading ASEAN wholesale bank ■ Launched Corporate Client Coverage model suppor
Slide 20: Kim Eng: ASEAN's Established Brokerage Platform
Kim Eng: ASEAN’s Established Brokerage Platform Maybank’s Expanded Presence with Kim Eng Maybank Kim Eng also ASEAN Stockbroking Champion Commercial Banking maintains distribution Brokerage / Investment Banking presence in key Retail Banking Ranking M. Share Ranking M. Share Other Services financial
Slide 21: Progress of Strategic Objectives: Insurance and Takaful
Progress of Strategic Objectives: Insurance and Takaful 3. Domestic Insurance Champion and emerging regional player Strategic Objectives 1. No. 1 Retail Financial Services provider Initiatives 2. Leading ASEAN wholesale bank ■ Completed the General IT System consolidation. 3. Domestic Insurance Cham
Slide 22: Progress of Strategic Objectives: International
Progress of Strategic Objectives: International 4. Truly regional organisation, with ~40% of pre-tax profit derived from international operations by 2015 Strategic Objectives Initiatives 1. No. 1 Retail Financial Services provider ■ Singapore 2. Leading ASEAN wholesale bank ■ Grow SME segment and ex
Slide 23: Progress of Strategic Objectives: Islamic Banking
Progress of Strategic Objectives: Islamic Banking 5. Leading Islamic Bank in ASEAN Strategic Objectives 1. No. 1 Retail Financial Services provider Initiatives 2. Leading ASEAN wholesale bank ■ Deposit drive to improve Financing to Deposit Ratio 3. Domestic Insurance Champion ■ Building the global w
Slide 24: Progress of Transformation Programme: Enterprise Transformation Services
Progress of Transformation Programme: Enterprise Transformation Services Deployment of regional IT platform with priorities set to customer-focused capabilities To deliver best in class service experience and leadership by 2013 ■ Development and finalisation of Enterprise IT Architecture ■ Embarked
Slide 25: Maybank's Strategic Objectives in line with Financial Sector EPPs
Maybank’s Strategic Objectives in line with Financial Sector EPPs ■ Banks to benefit through potential loan base of RM1.29 trillion based on RM1.4 trillion investment requirement under the ETP (2011-2020), of which 92% is targeted to come from the private sector (8% from public sector) Strategic Obj
Slide 26: Maybank's Strategic Objectives in line with Financial Sector EPPs
Maybank’s Strategic Objectives in line with Financial Sector EPPs Strategic Objectives Entry Point Projects (EPPs) Opportunities for Maybank 3. Domestic EPP 5: Insuring most, if not all, of Etiqa Insurance our population Insurance for foreign workers, agriculture EPP 8: Accelerating and sustaining p
Slide 27: Challenges and Key Takeaways
Maybank: In a Position of Strength Financial Highlights Strategic Updates Challenges and Key Takeaways Appendix: Financial Performance 1H FY11 ended 31 Dec 2010 26
Slide 28: Macro Challenges
Macro Challenges Inflationary pressure in Malaysia and Indonesia could impact consumer sentiment. Rising household debt poses greater risk on the banking system. Further tightening measures by central banks to curb consumer loans growth. Central banks could impose greater capital requirement
Slide 29: Key Takeaways
Key Takeaways Maybank is making good progress towards achieving its strategic objectives by 2015, with ROE target of 18% by then. Group transformation initiatives under the New House of Maybank is gaining traction demonstrated by growth in key business areas. Kim Eng will contribute towards ac
Slide 30: DRP for Interim Dividend FY11: 18 sen electable portion
DRP for Interim Dividend FY11: 18 sen electable portion High Dividend Payout Ratio Capital Adequacy ■ Dividend Reinvestment Plan (DRP) for Final Dividend FY10 was a success with 89% reinvestment rate. 14.04% 14.21% ■ Interim dividend payout of 28 sen (21 sen net) 13.66% subject to DRP ■ Net dividend
Slide 31: Appendix: Financial Performance
Appendix Financial Performance 1H FY11 ended 31 Dec 2010 Market share, ranking and annual growth 31 Group Revenue and PATAMI 33 PBT by sector 34 Loans growth by country 35 NIM, Cost-to-Income Ratio, Asset quality 36 CFS: Mortgage and auto finance 37 CFS: Cards and SME 38 Insurance 39
Slide 32: Domestic Market: Leading market position (Consumer)
Domestic Market: Leading market position Market Share: Dec 10 (Dec 08) Growth (YoY) Industry Ranking 1 Loans Domestic Total loans 17% (18%) 11% Domestic Total Deposits 15% (15%) 8% 1 Consumer loans 17% (16%) 14% 2 Consumer Mortgage 13% (14%) 10% 3 HP Loans 18% (16%) 14% 2 Unit trust 69% (73%) 32% 1
Slide 33: Domestic Market: Leading market position (Islamic, Investment Banking)
Domestic Market: Leading market position Market Share: Dec 10 (Dec 08) Growth (YoY) Industry Ranking Islamic Islamic Financing 24% (22%) 26% 1 Islamic Deposits 21% (16%) 33% 1 Debt Markets 29% 1 Investment Banking M&A 16% Not applicable 3 Equity & Rights Offerings 7% 2 Equity Brokerage 8% 3 Business
Slide 34: Sustained profit growth: PATAMI for 1H11 rose 14.8% YoY
Sustained profit growth: PATAMI for 1H11 rose 14.8% YoY Revenue (RM million) 1H11 Revenue Composition +22.4% YoY +5.1% YoY 12,871.7 Income from Islamic 10,519.0 Banking 11% 6,125.2 6,435.8 Net interest Net income income from 56% Insurance 2% FY09 FY10 1H10 1H11 PATAMI (RM million) Non interest +43.3
Slide 35: Strong performance in CFS, GWB's Corporate and International Banking
Strong performance in CFS, GWB’s Corporate and International Banking Group PBT by business sector (RM billion) 1H10 1H11 16.0% Global Wholesale Banking (GWB) 2,966.4 2,556.2 54.0% 13.9% -6.7% -39.3% 16.0% -48.0% 1,431.8 929.6 658.9 818.1 706.5 705.5 439.1 385.7 101.4 175.4 61.6 91.2 Total Community
Slide 36: Robust loans growth in home markets
Robust loans growth in 3 home markets Group (RM billion) Malaysia (RM billion) 11.7% YoY 11.0% YoY 12.5% annualised 8.5% annualised 228.7 152.2 215.2 146.0 204.7 195.4 137.1 131.0 Jun 09 Dec 09 Jun 10 Dec 10 Jun 09 Dec 09 Jun 10 Dec 10 Singapore (SGD billion) Indonesia (BII) (Rupiah trillion) 12.1%
Slide 37: Resilient NIM and improving asset quality
Resilient NIM and improving asset quality Net Interest Margin Asset Quality 6.45% 6.58% 6.16% Pre-FRS 139 Post-FRS 139 5.95% 120.5% 124.5% 125.6% 131.8% 3.07% 2.89% 2.83% 2.83% 2.76% 2.70% 2.70% 2.69% 1.85% 87.6% 84.1% 84.6% 1.74% 1.68% 1.51% 2.83% 2.99% 2.74% 1.36% 1.22% 1.20% 1.00% 3Q10 4Q10 1Q11
Slide 38: Consumer Loans: Mortgage and Auto Finance
Consumer Loans: Mortgage and Auto Finance Mortgage Loans: Recording Consistent Growth Auto Loans: Consistent Growth 10.0% YoY 13.7% YoY 9.4% annualised 13.5% annualised 36.2 24.3 34.6 22.8 21.4 32.9 Dec 09 Jun 10 Dec10 Dec 09 Jun 10 Dec10 Total Mortgage (RM billion) Auto Loans (RM billion) Mortgage
Slide 39: Cards and SME
Cards and SME Cards growth: Maybank vs Industry Business Banking and SME (RM billion) 5.3% YoY Merchant Sales (%) 12.9% Industry 11.6% 3.2% annualised Maybank 24.9 Receivables (%) 15.1% 24.5 13.3% 23.7 Billings (%) 13.6% 17.5% -21.2% Cardbase (%) -16.8% -30% -20% -10% 0% 10% 20% Dec 09 Jun 10 Dec 10
Slide 40: Insurance: Etiqa maintains strong overall position
Insurance: Etiqa maintains strong overall position Combined Gross Premium Overall Loss Ratio Lower Than Industry Industry 51.3% (Maybank) vs 60.8% (Industry) 60.8% Combined Gross Premium +9.7% +2.7% 9.5% Regular Premium Fire 17.4% 16.1% 25.6% 14.3% +23.5% 11.1% Credit Premium 1H10 75.8% 78.0% Single
Slide 41: Singapore: Stronger growth in business loans
Singapore: Stronger growth in business loans Strategy Diversified Loan Portfolio +12.1% YoY +17.8% annualised ■ Shift towards corporate loan growth 19.01 17.53 Others 17.03 ■ Broaden customer base: Key driver 4.4 5.7 4.2 from cards Car loans SGD billion 3.3 3.3 3.3 ■ Improve interest margin on credi
Slide 42: Indonesia: Bank Internasional Indonesia
Indonesia: Bank Internasional Indonesia Ongoing / Near term Medium Term long term Achievements - Target 2011 - 2012/13 initiatives Long term, Delivering on innovative, relationship positioning culture, Loans growth of - Communication positioning 27% - New products e.g. mobile build SME risk manageme
Slide 43: Indonesia: Bank Internasional Indonesia
Indonesia: Bank Internasional Indonesia Revenue and PBT (Rp billion) for full FY10 (as reported by BII) Net Interest Margin + 17% 5,773 4,934 6.10% 5.89% 5,634 Revenue 5.55% PBT + 2.093% 790 860 Without PSAK 39 790 50/55 FY08 FY09 FY10 YTDDec09 YTDDec10* * Full implementation of PSAK 50/55 (equivale
Slide 44: Pakistan: MCB Bank
Pakistan: MCB Bank ■ PBT grew 13% YoY to PKR26.5 billion despite a weakening macroeconomic environment. It contributed Revenue and PBT RM57.1 million to 1H11 Group profit. +15.9% ■ Loans rose slightly by 0.5% in 2010 to 254.6 billion. 39.6 34.2 +13.5% ■ Maintained conservative lending approach due t
Slide 45: Vietnam: An Binh Bank
Vietnam: An Binh Bank Revenue and PBT ■ PBT grew 53.6% in FY10 to VND638.2 billion. Contributed RM10.6 million to +56.6% 1,321.9 1H11 Group profit. +53.6% VND billion ■ Loans grew 55.4% to VND20.0 billion. 843.9 638.2 ■ Increased branches from 86 to 95 during 415.5 Revenue 2010. Currently, there are
Slide 46: Maybank Islamic maintains strong financing growth of 23.5% annualised
Maybank Islamic maintains strong financing growth of 23.5% annualised Income and PBT (in million) Maybank Islamic financing (23.5% annualised growth) 101.5 Total Gross Financing of RM38.7 billion as at Dec 10 +20.6% 65.5 429.9 13.7 586.5 12.4 220.3 239.6 377.2 11.6 11.7 +9.9% +46.4% +26.5% 6.8 5.8 +
Slide 47: Thank You
Thank You MALAYAN BANKING BERHAD Khairussaleh Ramli Hazimi Kassim Raja Indra Putra Raja Ismail 14th Floor, Menara Maybank Chief Financial Officer Head, Strategy and Corporate Finance Head, Investor Relations 100, Jalan Tun Perak Contact: (6)03-2074 4288 Contact: (6)03-2074 8101 Contact: (6)03-2074 8
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