Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q4 2008 Earnings Presentation
30 slides from Malayan Banking Bhd's earnings presentation, Aug 28, 2008
Slide 1: Financial Results Fourth Quarter FY2008 Analyst Briefing
Financial Results Fourth Quarter FY2008 Analyst Briefing 28 August 2008 1 V1
Slide 2: Scorecard - Summary
Scorecard - Summary Prior to provision for non-refundable deposit, pre-tax and net profit showed a Financial slight improvement of 0.3% and 1.2% respectively. Performance However, with the provision for non-refundable deposit, the pre-tax and net profit declined by -6.4% and -7.9% respectively.
Slide 3: Financial Performance Highlights (With allowance for non-refundable deposit)
Financial Performance Highlights (With allowance for non-refundable deposit) U 4Q FY08 3Q FY08 4Q FY07 U U FY08 FY07 YoY RM million Jun'08 Mar'08 Jun'07 QoQ YoY 5,427 5,133 5.7% Net interest income 1,351 1,350 1,299 0.1% 4.0% 965 858 12.5% Islamic Banking income 273 268 196 2.0% 39.6% 3,239 2,863 13
Slide 4: Financial Performance Highlights (without allowance for non-refundable deposit)
Financial Performance Highlights (without allowance for non-refundable deposit) U 4Q FY08 3Q FY08 4Q FY07 U U FY08 FY07 YoY RM million Jun'08 Mar'08 Jun'07 QoQ YoY 5,427 5,133 5.7% Net interest income 1,351 1,350 1,299 0.1% 4.0% 965 858 12.5% Islamic Banking income 273 268 196 2.0% 39.6% 3,046 2,863
Slide 5: Net Income growth
Net Income growth +6.6% RM million Growth • Overall net income grew by 9,437 6.6% YoY. 10,000 8,854 12.5% • Income from Islamic Net Income 965 Banking operations grew 858 8,000 by 12.5%YoY driven by strong demand for Islamic 3,046 6.4% auto financing and 2,863 securities financing. 6,000 Islamic Ban
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin • Net interest income for FY08 grew RM294 m or 5.7% YoY in line with higher average interest-earning assets. • The net interest margin declined marginally by 2 bps to 2.71%. • Quarterly net interest margin steadily improved to 2.81% in Q408 from 2.59% in Q108 primarily
Slide 7: Non-Interest Income
Non-Interest Income FY08 FY07 YoY 4Q FY08 3Q FY08 4Q FY07 QoQ % RM million Jun 08 Mar 08 Jun 07 % Non Interest Income (Transactional – Customer Franchise) 769.05 669.54 14.9% Commissions 239.81 170.78 181.85 31.9% 721.27 592.20 21.8% Service charges and fees 202.19 169.90 140.19 44.2% 110.95 93.57 1
Slide 8: Operating Profit, Pre-Tax Profit and Net Profit
Operating Profit, Pre-Tax Profit and Net Profit • Operating profit for FY08 grew by RM117m or 2.3% at the back of 6.6% YoY growth in net income and higher YoY expenses growth of 12.3%. • Profit before tax showed a modest growth of 0.3% resulting from higher general provision. • Correspondingly, the
Slide 9: Overhead Expenses
Overhead Expenses Overhead expenses rose by RM466.4 million or 12.3% outpacing the revenue growth resulting in cost to income ratio (CI) RM million of 45.1% (41.6% excluding Insurance claims). 12.3% Growth Higher operating expenses were due to : 4,255 Increased IT expenses. 4,000 3,789 459 I
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights (RM billion) Jun 08 Jun 07 Growth Cash and short-term funds 27.6 37.6 -26.6% • Total assets for the group increased by 4.9% with Deposits and placements with FI 9.0 17.3 -48.0% improved assets mix. Securities Portfolio 36.6 33.7 8.5% Loans, advances and financing 164.8 140.9
Slide 11: Loans Growth
Loans Growth • Total gross loans grew by 16.1% (RM billion) Jun 08 Jun 07 Growth YoY, whilst domestic operations loans grew by 12.1%YoY. Domestic Operations 122.1 108.9 12.1% • Loans in the Consumer segment of which: Consumer 58.0 53.3 8.8% grew 8.8% YoY, with strong Securities 10.3 9.3 10.7% growth
Slide 12: Customer Deposits Growth
Customer Deposits Growth Customer Deposits • Total customer deposits grew by 14.3% YoY. 14.3% Overall Deposits Growth RM million 200 187.1 • Total Low cost deposit, consisting of Overall CASA Growth savings and demand deposits continued 163.7 15.9% 38.6 to record strong growth of 15.9% YoY. 150 30.9
Slide 13: Segmental Reporting - Segmental Business Results
Segmental Reporting Profit before Tax by Business Segment Business/ Corporate 42% Segmental Business Results • Commercial banking, which is the mainstay of the Group’s business show a strong performance contributing to 92% of total PBT. Non commercial banking business contributed to only 8% of the G
Slide 14: Consumer Banking
Consumer Banking Revenue & PBT • Challenging market environment due to competition and RM million slowing demand. 5,000 FY07 +11.7% • Revenue grew by 11 % and PBT grew by 13.9%. FY08 4,000 • Overall growth in domestic consumer lending 8.8% YoY. 3,000 • Auto Finance grew 28.3%. +13.9% • Credit card r
Slide 15: Business & Corporate Banking
Business & Corporate Banking Revenue & PBT • Revenue grew 8.2% and PBT grew 11.4% against FY07 the backdrop of robust loans growth and RM million +8.2% FY08 increasing business activity. 2500 • Overall loans grew by 15.3%, Corporate loans +11.4% 2000 grew by 11.2% and SME lending grew by 21.2%. 1500
Slide 16: International
International • Overall, PBT from International rose 18%. Profit Before Tax (RM m) Gross Loans (RM m) Singapore contributing yoy % % Contrib. Loans FY08 FY07 to Inter. Jun 08 Jun 07 64% of PBT. change PBT Growth • International Loans Singapore 560.3 419.4 33.6% 63.7% 36,977 28,042 31.9% growth grew
Slide 17: Singapore Operations
Singapore Operations Continued strong growth due to robust consumer demand and growth in non-interest income. Loan by segment Other Consumer Manufacturing YoY 4% FY 08 FY 07 3% Building & S$'m change Car Loans Construction 19% 18% Consumer: 48% Fund Based Income 351 289 21% Corporate: 52% Non-Intere
Slide 18: Asset Quality
Asset Quality % Gross and Net NPL Ratio • Asset quality continued to improve throughout the year. • Net NPL declined to 1.92% as at 5.55% 5.31% 5.12% 4.80% June 2008 from 3.03% a year earlier. Gross NPL Ratio • Gross Reserve coverage now 3.03% 3.76% 2.84% 2.69% reached 99.2%. 2.43% Net NPL Ratio • S
Slide 19: Gross NPL
Gross NPL Gross NPLs have been trending downwards in the past quarters except for consumption credit. Corporate Consumer 14 12 12 10 10 8 8 Percentage Percentage 6 6 4 4 2 2 0 May-08 Jun-07 Nov-07 Jan-08 Mar-08 Jun-08 Aug-07 Jul-07 Sep-07 Oct-07 Dec-07 Feb-08 Apr-08 0 Aug-07 Jun-07 Jul-07 Apr-08 Jun
Slide 20: Dividend and Capital
Dividend and Capital • Subject to Bank Negara approval, on a longer term basis, 12% Core Capital Ratio Maybank intends to maintain its long term dividend payout ratio of 60%. 10% Target • Final dividend rate of 20 sen raised the full year payout to 8% 60.4%. 10.88% 10.26% 6% 9.13% 8.83% 8.72% • Long
Slide 21: Key take aways from today..
Key take aways from today.. Core commercial banking franchise remains robust, despite challenging market environment. Financial performances were sustained as compared to the previous financial year. Higher loans growth at 16.1%, higher growth in CASA deposits at 15.9%, mitigating the marginal d
Slide 22: Performance Improvement Programme
Performance Improvement Programme 22
Slide 23: My First 100 Days
MY FIRST 100 DAYS Accomplishments Impressions • Transaction completion in Pakistan Leading domestic bank with outstanding and Vietnam, and managing reach and long-standing customer developments regarding our relationships Indonesian transaction Emerging regional footprint on par with • Strengthening
Slide 24: Our Aspirations: To be a leading regional financial services group
OUR ASPIRATIONS By 2015… 1 Top 5 in South/Southeast Asia by size AND performance – Size defined by asset and market cap – Performance defined by CIR, ROE and TSR 2 Undisputed leadership in Malaysia, across To be a leading regional financial all high margin/profitable products/segments services group
Slide 25: Three Strategic Thrusts
THREE STRATEGIC THRUSTS Strategic thrusts Key components 1 Undisputed • Establish differentiated multi-specialist model and well-executed leadership in business strategies: Malaysia across – #1 in Consumer, SME and Corporate Banking businesses all attractive – Top 2, full-fledged Investment Bank (in
Slide 26: Transformation Journey
TRANSFORMATION JOURNEY Horizon 2 Horizon 1 Expand footprint and capture new Strategic Secure leadership and outperform markets thrusts • Capture tactical revenue growth and Secure cost reduction opportunities • Continue to develop commercial and Malaysia operational excellence leadership • Implement
Slide 27: LEAP to Deliver
LEAP 30 TO DELIVER HORIZON 1 Secure undisputed leadership in Malaysia and L Lead strengthen regional presence E Execute Ensure timely execution of identified initiatives Achieve 100% of financial and service quality A Achieve targets P Progress Progress as a Group and as individuals 30 Deliver 30 in
Slide 28: LEAP 30: Two Waves
LEAP 30: TWO WAVES Wave 1 (Sep 2008 – Dec 2009) Wave 2 (Jan 2010 – Dec 2011) • 9 business initiatives • 8 business initiatives • 5 enabling initiatives • 1 enabling initiative • 6 talent initiatives • 1 talent initiative A total of 20 initiatives will be The remaining 10 initiatives launched in Wave
Slide 29: Upcoming 2008 Milestones
UPCOMING 2008 MILESTONES Next steps Due date • Internal launch and communication of August/September revised strategy and performance improvement program (LEAP 30) • Revisions of management team and September/October structure • All wave 1 initiatives kicked off and September/December moved into ful
Slide 30: Thank You
THANK YOU 30
Malayan Banking Berhad (Maybank) — Q4 2008 Earnings Presentation on 6ix