Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Maybank Singapore — Investor Day (September 2012)
39 slides from Malayan Banking Bhd's investor day presentation, Sep 3, 2012
Slide 1: Maybank Investor Day – Maybank Singapore
Maybank Investor Day – Maybank Singapore A story of Maybank Singapore 3 Sep 2012
Slide 2: Agenda
Agenda • Overview of Maybank Singapore • Our History • Our Strengths • Our Performance Drivers • Going forward – Regionalization Initiatives 2
Slide 3: Our History of over 50 years
Our History of over 50 years • Started operations since 1960 as a full licensed commercial bank with its first branch opened at South Bridge Road • Expanded footprint from a “coffee–shop” bank to a niche market leader with contemporary branches of unique branch concept and atmospherics • Awarded Qua
Slide 4: Our Strategic Retail Presence
Our Strategic Retail Presence – operate one of the largest networks of branches and ATMs with 27 service locations (22 Branches & 5 Offsite ATMs) Woodlands Yishun Kovan Choa Chu Kang Ang Mo Kio Bukit Timah Jurong East Nex Holland Village Tampines HDB Hub Balestier Clementi Bedok Jurong Point Textile
Slide 5: Core Strengths as a Niche Market Player
Core Strengths as a Niche Market Player– asset size of S$40 billion and staff strength of over 1,400 as of Jun 12 1. Global Wholesale Banking holds traditional strengths in areas of – Construction & Real Estate Property Development – Commerce & Services For every four locally financed vehicles, one
Slide 6: Our contribution to Group & International
Our contribution to Group & International – leading contributor in terms of profit and loan portfolio as of Jun 12 Contribution to International PBT Composition of International Loans Others BII Indonesia Others Singapore 46% BII Indonesia Singapore 59% Contribution to Maybank Group’s PBT BII Indone
Slide 7: Our Beginning from Ground Zero – showing strategic resilience
Our Beginning from Ground Zero – showing strategic resilience amidst volatile market conditions Singapore GDP Growth, % MBS Pre-tax Profits, S$m (RHS) 20 400 15 300 10 200 5 100 0 0 -5 (100) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 7
Slide 8: Our Overarching Vision and Mission
Our Overarching Vision and Mission Group Vision, Mission VALUE CREATION Vision Maybank Singapore Mission Mission Maintain Leadership in specific products & Markets Objectives Compete Effectively with Regional & Global Systems and Process Players in Singapore COLLABORATION CONTROL TIGER Values 8
Slide 9: Our Underlying Formula
Our Underlying Formula – the making of our organization that is more than the sum of our parts Results > People Process Customer Organizational People Innovation Service Excellence Excellence Excellence Excellence Engaged Staff Driven by our passion for Customer Centricity Visionary & Co
Slide 10: Achieving Organizational Excellence
Achieving Organizational Excellence “ Maybank is the first bank in Singapore to achieve all four certifications in Business Excellence - Singapore Quality Class, Singapore Service Class, People Developer and Singapore Innovation Class at an enterprise level. Maybank Singapore is also the first and o
Slide 11: External endorsements
External endorsements @ccas eHiGn TAFEP Exemplar yea CERVICE mployer Award 2010) estan anc AWARE ‘Tripartite AlianceFor eee AE Fer Erlayen cies CENTRA (XSINGAPOR: PEOPLE EXCELLENCE A_W_A_R_D Employer 2011 WINNER Alliance “SA HEALTH /NAWARD. INNOVATION CLASS ensure ' EXCELLENCE IN = sy ee ee -.: 5 PE
Slide 12: Agenda: Our Performance Drivers
Agenda • Our Performance Drivers • sustaining profitability with niche focus 12
Slide 13: Building & Construction growth
Building & Construction - Corresponding growth in our construction portfolio as Singapore renewed and expanded its infrastructure over the years 60 12 50 10 40 8 30 6 20 4 10 2 0 0 -10 -2 2007 2008 2009 2010 2011 2012 Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growt
Slide 14: General Commerce growth in SME market
General Commerce – growth in line with our increasing presence in SME market 70 14 60 12 50 10 40 8 30 6 20 4 10 2 0 0 -10 -2 -20 -4 2007 2008 2009 2010 2011 2012 Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , % 14 Source: Monetary Authority of Singapore, Audit
Slide 15: Trade Finance – driven by structured trade
Trade Finance – driven by structured trade since its inception 5 years ago as we capitalize on Asia’s booming supply chain 3,500 3,000 CAGR: 52% 2,500 2,000 1,500 1,000 500 0 2007 2008 2009 2010 2011 2012 Other Trade Finance Structured Trade & Commodity Finance 15 Source: Monetary Authority of Singa
Slide 16: Car Loans – maintain our leadership
Car Loans - maintain our leadership despite keener competition and a tighter COE supply 30 30 25 25 20 20 15 15 10 10 5 5 0 0 -5 -5 2007 2008 2009 2010 2011 2012* Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , % *Note: Includes GE Money, which was acquired by S
Slide 17: Credit Card Base – customers doubled
Credit Card Base - customers doubled over last 5 years 40 4 30 3 20 2 10 1 0 0 2007 2008 2009 2010 2011 2012 Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , % 17 Source: Monetary Authority of Singapore Includes both main and supplementary cards
Slide 18: Credit Card Loans
Credit Card Loans – increasing card base plus stronger branding & merchant network facilitate our growing market share 40 4 30 3 20 2 10 1 0 0 -10 -1 2007 2008 2009 2010 2011 2012 Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , % 18 Source: Monetary Authority of
Slide 19: Building up scale and capacity
Building up scale and capacity - domestic loan driven model funded largely with customer deposits over past decade S$ millions 30,000 Loans 25,000 Deposits Loan portfolio increased By 5 folds over last decade 20,000 15,000 10,000 5,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20
Slide 20: Credit Management
Credit Management - Proactive account management to ensure our asset quality Non Performing Loan Ratio, % 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2007 2008 2009 2010 2011 Major QFBs Maybank Singapore 20 Source: Audited Financials
Slide 21: Customer Deposits
Customer Deposits – integrated deposit collection & customer acquisition strategy Deposits from Non-bank Customers, % Change 35 7 30 6 25 5 20 4 15 3 10 2 5 1 0 0 2007 2008 2009 2010 2011 2012 Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , % 21 Source: Monetary
Slide 22: Funding Liquidity
Funding Liquidity - strong deposit growth improved our funding position Loan-to-Deposit Ratio, % 100 80 60 40 20 0 2007 2008 2009 2010 2011 2012 Industry Major QFBs Maybank Singapore 22 Source: Ministry of Trade & Industry, Audited Financials
Slide 23: Cost Management
Cost Management – streamline processes & optimize resource usage as we expand our business Cost-to-Income Ratio, % 55 50 45 40 35 2007 2008 2009 2010 2011 Major QFBs Maybank Singapore 23 Source: Audited Financials
Slide 24: Revenue Diversification
Revenue Diversification – loan driven model augmented by diversifying into new fee income streams S$ millions 800 Net Interest Income Non-Interest Income 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 24
Slide 25: Non-interest income Growth
Non-interest income Growth –driven by core operating business S$ millions 250 Composition, 2011 Non- Operating 200 Income CAGR: 23% Credit Related Fees Other Fee Income 150 Trade Related 100 Commission Treasury & Investment 50 Income Wealth Management 0 2006 2011 Non-Interest Income 25
Slide 26: Agenda: Service excellence & innovation
Agenda • Our Performance Drivers • Service excellence & innovation changes 26
Slide 27: Service Excellence Culture
Service Excellence Culture – benchmark against industry practices to promote continuous service excellence culture % of Excellent Service Award (EXSA) 2009 Excellent Service Award 2010 2011 Inspire service staff Develop service models Create service champions Recognize efforts Professional
Slide 28: Service Innovation – banking convenience and options
Service Innovation – bringing banking convenience and offering more options to customers Unique branch concepts and atmospherics that resonate with the needs of customer segments served in the neighbourhood and developments in the location Interactive Kiosk at Maybank@Clementi “Garden City” which re
Slide 29: Service Innovation – urban and heartland areas
Service Innovation - Serving customers and communities in urban and heartland areas Joint bill payment services Partner with QFB through D-Pay (direct pay) Banks to share ATM at AXS stations network Investment in Branch Re-engineering The Branches have undergone many changes: Concept Branches “Kalei
Slide 30: Key Product Innovations over last 3 Years
Key Product Innovations over last 3 Years FIRST to launch a “Privilege Plus Savings” with higher savings rates and free personal accident insurance coverage for customers aged 50 years and above. FIRST to launch “Pocket Me Giro” with S$5m to reward customers when making GIRO payments FIRST to
Slide 31: Agenda: Human Capital
Agenda • Our Performance Drivers • Human Capital 31
Slide 32: Integrated CSR efforts
Integrated CSR efforts - another intangible of “heart ware” » FAMILY BEYOND KINSHIP to include the community @ Maybank M.A.G.1.C. (MAKING A GREAT IMPACT ON OUR COMMUNITY) ANTING 2010 aN Get to School Transport Grant Project > INVOLVEMENT IN CSR INCREASED SIGNIFICANTLY @) Maybank INDUCTION COOKERS 20
Slide 33: Asian Banking & Finance Retail Banking Awards 2012
Asian Banking & Finance Retail Banking Awards 2012: Website of the Year - Singapore & Employer Award of the Year - Gold Award Arts Supporter Award Banking & Payments Asia Trailblazer Awards 2012 - Special Commendation for Service Excellence in Customer Experience. Excellence Award (Corporate Partner
Slide 34: Agenda: Going forward – Regionalization Initiatives
Agenda • Going forward – Regionalization Initiatives 34
Slide 35: Strategic Plan – long term sustainable growth
Strategic Plan – achieving long term sustainable growth deployment 1. Building Skills for Higher Competency Business Excellence Framework Flexible Business Strategies • Investment in Human Capital to & Approach in response to build up competency as well as market without losing focus commitment on L
Slide 36: Group Strategic Objectives
Group Strategic Objectives – a common regional aspiration By 2015 Our Vision To be a Regional Financial Services Leader Our Mission Humanising Financial Services Across Asia 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by Strategic Objectives 2015 2. Leading ASEAN wholesale ban
Slide 37: Regional Initiatives
Regional Initiatives – build on our organizational capabilities to achieve value creation, innovation and strategic resilience for sustainable growth Optimize business synergies within Group with overall client coverage focus Global Markets Position Singapore as the Derivative Risk Centre for Global
Slide 38: Our Triple-One Aspiration
Our Triple-One Aspiration USD 1 Billion SGD 1 Billion RM 1 Billion MBB (Past) 2005 2006 2008 2010 2011 2012(p) Future 38
Slide 39: Thank You
THANK YOU