Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — Non-Deal Roadshow (February 2023)

35 slides from Malayan Banking Bhd's roadshow presentation, Feb 9, 2023

  1. Slide 1: Investor Presentation: Non-Deal Roadshow in Singapore

    Disclaimer: The contents of this document/information remain the intellectual property of Maybank and no part of this is to be reproduced or transmitted in any form or by any means, including electronically, photocopying, recording or in any information storage and retrieval system without the permi

  2. Slide 2: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-15 9MFY2022 Financial Performance 17-20 Appendix: Supporting Financial Performance Updates 22-33

  3. Slide 3: Maybank Investment Case Highlights

    Maybank Investment Case Highlights A Truly Global Leadership Sustainability Leader Leading Superior dividend Regional Bank In Islamic Banking In ASEAN Digital Bank payouts and yields Strong regional footprint 5th Largest Islamic Bank One of the first ASEAN Preferred digital bank in Strong track reco

  4. Slide 4: Global Network Sharpened to Three Archetypes Building on Strong ASEAN Franchise

    Global Network Sharpened to Three Archetypes Building on Strong ASEAN Franchise Our Robust Network Universal Play Malaysia Indonesia Global presence 01 Universal offering; Participation in all segments Singapore Cambodia and core products 2,610 18 Retail branches Countries 38 Focused propositions In

  5. Slide 5: Global Leadership in Islamic Banking

    Global Leadership in Islamic Banking Leadership Position Global Islamic Wealth Management (IWM) solutions leader Globally 5th largest Islamic bank by asset size Leadership in core IWM leadership by Leadership as a Ranked 5th in Global Sukuk capturing part of the $1.5 gateway, enabled markets, throug

  6. Slide 6: On Track Towards Becoming a Sustainability Leader in ASEAN

    On Track Towards Becoming a Sustainability Leader in ASEAN Sustainability Leader in ASEAN Sustainable FY2025 target: Achieved: Finance RM50 bil ~RM29 bil FY2022(t):RM9 bil Designed and implemented our own Sustainable Product Framework to enable greater 9MFY2022 RM14.9bil development of green, social

  7. Slide 7: Leading Digital Innovator

    Leading Digital Innovator FY2021 Preferred Digital Bank Expanding Digital Ecosystems to Grow Beyond Just Financial Services 54.0% Maybank Home2u Home Buyers Home Ownership Journey mobile banking Future state transaction volume in Malaysia Existing Discover Application Broadening Value added Property

  8. Slide 8: Consistently Delivering Superior Shareholder Returns

    Consistently Delivering Superior Shareholder Returns FY2021 Superior Returns Solid track record of high dividend yields and dividend payout ratio Consistent Payout 87.8% 91.2% above 78.5% 77.3% 84.5% Dividend Payout Policy of 7.4 7.0 40% – 60% 5.6 6.0 6.1 One of the Highest Dividend Yields in the Re

  9. Slide 9: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-15 9MFY2022 Financial Performance 17-20 Appendix: Supporting Financial Performance Updates 22-33

  10. Slide 10: Maybank's New M25+ Growth Strategy is Anchored on a Greater and Deeper Purpose

    Maybank’s New M25+ Growth Strategy is Anchored on a Greater and Deeper Purpose Digital eco-system Global players players Niched local players Infusing the principles of ethical banking (fairness, inclusivity, Orchestrating digital ecosystems and integrating preservation of environment and exclusion

  11. Slide 11: Building on the M25 Foundation, M25+ Across Five Strategic Thrusts

    Building on the M25 Foundation, M25+ Will Reinforce the Push for Differentiation and Focus Across Five Strategic Thrusts Refined Strategic Thrusts M25 M25+ 1 Continuous improvement Full agile and iterative Minimum Viable Product Intensify Customer Centricity approach to meet customer (MVP) approach,

  12. Slide 12: Formulation of 12 Strategic Programmes to Propel Us Forward

    …Resulting in a Formulation of 12 Strategic Programmes to Propel Us Forward PMO Institutionalise Group-wide Programme Management Office Go beyond rigorous progress tracking, managing interdependencies and problem resolution to ensure full infusion of ethical banking, regional integration, cross-sect

  13. Slide 13: We remain steadfast in pursuing BAU initiatives while executing M25+

    We remain steadfast in pursuing BAU initiatives while executing M25+ Key Businesses/Countries Existing BAU initiatives to deliver results in near-term • Non-Retail: Expand RSME and SME+ businesses across universal markets • Retail: Boosts mortgage and auto Group Community • Expand regional wealth ma

  14. Slide 14: Invest RM3.5 bil - RM4.5 bil to Accelerate Development of New Capabilities

    In the Next Three to Five Years, We Will Invest RM3.5 bil - RM4.5 bil to Accelerate the Development of New Capabilities for Long-Term Growth Planned IT Investment for M25+ Will Bring Us on Par With One-off investment the Average of Top Regional Banks RM3.5 bil – RM 4.5 bil Tech for Tech Group IT spe

  15. Slide 15: Increased Investment to Drive Success of Reinforcing Business Growth

    Increased Investment in Next Three to Five Years to Drive Success of Reinforcing Business Growth with Digital and Technological Capabilities Cost to Income Ratio (CIR) projection for Maybank Group (%) Target ROE 45.4 45.3 45.1 45.0 11%-12% Short-term increase in CIR due to upfront investments by 202

  16. Slide 16: Full Realisation of M25+ Will Holistically Transform Maybank's Performance

    Full Realisation of M25+ Will Holistically Transform Maybank's Performance FY21 FY25 GROWTH PERFORMANCE PROFITABILITY FY25 FY21 9.8% 11-12% ROE ROE target 2.3% 2-3x Top-line CAGR 17-21' Top-line CAGR 21-25' 45.3% ~45% CIR CIR 25% ~32% Fee Income Percent Fee Income Percent NON-FINANCIAL METRICS -4% ~

  17. Slide 17: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-15 9MFY2022 Financial Performance 17-20 Appendix: Supporting Financial Performance Updates 22-33

  18. Slide 18: Strong 9MFY2022 Performance on Better Operating Environment

    Strong 9MFY2022 Performance on Better Operating Environment Net Fund Based Income Net fund based income grew as NIM rose 8 bps on higher interest rates while RM15.37b, +8.1% Group loans grew 8.2%, led by strong performance across all home markets Net Fee Based Income Net fee based income increased o

  19. Slide 19: Net Fund Based Income: 9M FY2022 (1/2)

    Net Fund Based Income: 9M FY2022 (YoY) (1/2) Robust loan growth across all home markets Group Gross Loans  +8.2% YoY Malaysia Singapore Indonesia  +7.9% YoY  +4.0% YoY  +13.1% YoY 331.5 357.5 542.8 587.1 84.5 78.9 +7.1% 114.8 RM billion 101.5 SGD billion IDR trillion 42.9 44.6 RM billion +8.1% 4

  20. Slide 20: Net Fund Based Income: 9M FY2022 (2/2)

    Net Fund Based Income: 9M FY2022 (2/2) Group deposits grew supported by CASA growth in Malaysia and Indonesia; NIM expands 7 bps YTD (Ann.) on improved yields given rising rate environment Group Deposits Malaysia Singapore Indonesia  +4.9% YoY  +8.7% YoY  (3.4)% YoY  +5.0% YoY 609.6 639.4 88.5 C

  21. Slide 21: Asset Quality

    Asset Quality Loan loss coverage stood at 122.3% as ann. net credit charge off of 45 bps tracks FY22 guidance of 40 bps to 50 bps Allowances for losses on loans 137.8% 133.3% 131.5% 113.9% 110.9% Loan loss coverage incl. Regulatory Reserve 127.0% 122.3% 122.3% 111.9% 106.4% Loan loss coverage P&L EC

  22. Slide 22: Table of Contents

    Table of Contents Maybank Investment Case Highlights 2-7 M25+ Corporate Strategy Update 9-15 9MFY2022 Financial Performance 17-20 Appendix: Supporting Financial Performance Updates 22-33

  23. Slide 23: P&L Summary: 9M FY2022

    P&L Summary: 9M FY2022 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2022 FY2021 FY2022 FY2022 FY2021 Net fund based income * 15,373.6 14,220.4 8.1% 5,296.8 5,183.0 2.2% 4,719.2 12.2% Net fee based income * 5,344.4 4,928.4 8.4% 2,117.1 1,651.8 28.2% 1,430.8 48.0% Net operating income 20,718.0 19,148.8 8.2

  24. Slide 24: Net Fee Based Income: 9M FY2022 (YoY)

    Net Fee Based Income: 9M FY2022 (YoY) 9M 9M Other Group’s Operating Income (RM mil) YoY Total Net Fee Based Income FY2022 FY2021  8.4% YoY Commission, service charges and fees 2,511 2,746  (8.5)% Commission 919 1,023  (10.2)% 5,344 Service charges and fees 1,082 1,140  (5.1)% 4,928 (50.3)% YoY 2

  25. Slide 25: Overheads: 9M FY2022 (YoY)

    Overheads: 9M FY2022 (YoY) 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2022 FY2021 FY2022 FY2022 FY2021 Personnel Costs 5,466.9 5,115.3 6.9% 1,948.2 1,777.5 9.6% 1,682.8 15.8% Establishment Costs 1,547.4 1,446.5 7.0% 550.3 534.0 3.1% 472.5 16.5% Marketing Expenses 444.4 283.0 57.0% 226.1 111.4 102.9% 81

  26. Slide 26: International & Malaysia Portfolio Mix 9M FY2022

    International & Malaysia Portfolio Mix 9M FY2022 Net Operating Income Profit Before Tax Gross Loans * 9M FY2022 (Jan 22 – Sep 22) Overseas: 5.4% Overseas: 6.4% Overseas: 7.7% 32.3% 9.5% 25.2% 18.8% 39.1% 5.9% 17.4% RM20.72 RM8.85 RM587.1 billion billion# 25.5% billion 67.7% 60.9% 75.0% Malaysia Sing

  27. Slide 27: Asset Quality

    Asset Quality Group Gross Impaired Loans (GIL) Ratio Composition GIL Ratio Components Sep 2022 Jun 2022 Mar 2022 Dec 2021 Sep 2021 Non Performing Loans (NPL) 1.27% 1.41% 1.59% 1.28% 1.63% Restructured & Rescheduled (R&R) 0.07% 0.04% 0.04% 0.05% 0.05% Performing Loans Impaired Due to 0.36% 0.36% 0.32

  28. Slide 28: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Consumer Mortgage Auto Finance Credit Cards 5.95% 5.41% 5.30% 3.03% 5.18% 5.17% 2.40% 1.85% 1.66% 1.52% 1.09% 0.76% 0.73% 1.62% 1.73% 1.76% 0.69% 0.67% 1.46% 1.34% 0.75% 0.64% 0.56% 0.58% 0.58% 0.58% 0.37% 0.35% 0.34% 0.27% 0.31% 0.55% 0.47% 0.23% 0.

  29. Slide 29: Improving Relief Loan Trends As Economic Activity Normalises

    Improving Relief Loan Trends As Economic Activity Normalises % of Loans Under Repayment Assistance, Relief and R&R Programmes Against Respective Total Home Market Loans % of Outstanding Loan Balance^ 31/07/22 31/10/22 % of Outstanding Loan Balance^ 31/07/22 31/10/22 % of Outstanding Loan Balance^ 31

  30. Slide 30: Strong Liquidity & Capital Positions: September 2022

    Strong Liquidity & Capital Positions: 30 September 2022 After proposed dividend, Liquidity Risk Indicators Before proposed dividend assuming 85% reinvestment rate LCR LDR NSFR 19.52% 17.77% 17.15% Group 16.81% 15.15% 14.53% 138.1% 136.4% 143.2% 136.9% 144.2% 16.09% 14.47% 13.84% Dec 21 Sep 22 Sep 22

  31. Slide 31: Loans Portfolio Overview: Maybank Singapore and Maybank Indonesia

    Loans Portfolio Overview: Maybank Singapore and Maybank Indonesia Maybank Singapore Loan Portfolio Breakdown Maybank Indonesia Loan Portfolio Breakdown % of 30 Sep 31 Dec YTD 30 Sep % of 30 Sep 30 Jun 30 Sep SGD Billion YoY IDR Trillion QoQ YoY Portfolio 2022 2021 Ann. 2021 Portfolio 2022 2022 2021

  32. Slide 32: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing1 grew to RM236.5 billion +10% Sep 21 RM million 9M FY2022 9M FY2021 YoY 71.9 Sep 22 65.2 +11% Total Income 5,666.6 4,942.3 14.7% +16% 53.0 48.9 47.6 Profit Before Tax 3,529.2 3

  33. Slide 33: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Net Adjusted Premium/Contribution Life & Family (New Business) Market Share (Malaysia) Single Premium (13.9)% Regular Premium (4.4)% 19.3% 19.1% 19.6% 19.3% Credit Premium 38.1% 16.7% 17.9% 16.5% 16.8% No. 3 in Life/Family Group Premium 10.8% 10.9% (New

  34. Slide 34: We Continue to Maintain Leadership Position in Digital Banking

    We Continue to Maintain Leadership Position in Digital Banking As at end-Sep’ 22 SME Digital Financing approved loans since RM2.70 bil its launch in Sep’20 Mobile Banking Internet Banking 3-month Active Users Market Share 54.0% * Market Share 49.5% * 8.1 mil users * SME Digital Accounts accounts act

  35. Slide 35: Malayan Banking Berhad

    MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the in

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