Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q1 FY2011 Earnings Presentation
37 slides from Malayan Banking Bhd's earnings presentation, Nov 12, 2010
Slide 1: Financial Results 1st Quarter FY2011 Analyst Briefing
FINANCIAL RESULTS 1st Quarter FY2011 ended 30 Sept 2010 Analyst Briefing 12 November 2010
Slide 2: Executive Summary
Executive Summary Financial Performance Adoption of FRS 139 and Basel II B siness Review Business Re ie Country Review Economics and Prospects 1
Slide 3: Key Highlights
Key Highlights ■ PATAMI for f 1Q11 grew 16.6% 16 6% YYoYY and d 12 12.7% 7% QoQ Q Q to t RM1 RM1,028 028 million. illi ■ YoY revenue growth was mainly driven by Corporate Banking (+14.0% ), International Banking (+7.8% ) and Insurance & Takaful (+27.2% ). ■ YoY profit growth mainly came from Communi
Slide 4: YTD Key Performance Indicators (KPI) for FY2011
YTD Key Performance Indicators (KPI) for FY2011 Headline KPIs Target 1Q11 achievements Return on Equity 14% 14.8% (normalised) Loans and Debt Securities Growth 12% 4.6% annualised Other h targets Target 1Q11 achievements h Loans Growth • Malaysia 12% ‐0.1% • Singapore 5% 5.0% • BII 24% 30.0% Net Int
Slide 5: Financial Performance
Executive Summary Financial Performance Adoption of FRS 139 and Basel II B siness Review Business Re ie Country Review Economics and Prospects 4
Slide 6: PATAMI rose to RM1.03 billion or 16.6%
PATAMI rose to RM1.03 billion or 16.6% YoY Y Y QoQ Q Q RM million 1Q11 1Q10 4Q10 Change Change Net interest income 1,774.5 1,627.6 9.0% 1,792.2 ‐1.0% Income from Islamic Banking 338.2 381.6 ‐11.4% 355.7 ‐4.9% Net income from insurance business 86.7 72.0 20.5% 168.5 ‐48.5% Non‐interest income 1,008.2
Slide 7: Normalised PBT for 1Q11 grew 14.1% YoY
Normalised PBT for 1Q11 grew 14.1% YoY RM million 1Q11 1Q10 YoY Profit before tax (PBT) 1,404.3 1,156.2 21.5% Unrealised (Gains)/Losses on derivatives (171.7) (84.5) Forex Realised/MTM (Gains)/Losses (37.8) (29.3) Amortisation on Core Deposits p ((BII)) 20.4 22.9 Normalised PBT 1,215.2 1,065.3 14.1%
Slide 8: Loans grew in tandem with deposits growth
Loans grew in tandem with deposits growth Annualised YoY Loans growth driven by CFS and BII though domestically Deposits p ggrowth growth growth loans were affected by chunky repayments 237.8 Annualised YoY Total 236.9 +1.5% +8.7% RM billion Sep‐10 Jun‐10 Sep‐09 218.8 growth Growth 154.8 ‐1.7% +7.4%
Slide 9: Non-Interest Income including insurance grew 3.1% YoY
Non‐Interest Income including insurance grew 3.1% YoY +3.1% (including insurance) 1,062.1 1,095.0 +1.8% 1,008.2 990.1 +2.4% million RM m 639.7 639 7 624.6 +41.5% +32.8% ‐17 17.2% 2% +97.3% +20.5% 20 5% 138.7 186.1 152.9 104.4 59.1 94.3 86.8 216.3 48.9 72.0 Total non‐ Commission, Foreign Exchange Inv
Slide 10: Overheads contained in line with income growth at 4.4% YoY
Overheads was contained in line with income growth at 4.4% YoY +4.4% YoY +1.3% QoQ 1,556.0 1,536.6 1,490.9 QoQ YoY t * Personnell costs P 12 0% 12.0% 23 1% 23.1% IT Expenses 3.2% ‐10.1% 524.9 Marketing Expenses 64.6% ‐28.0% 569.4 632.5 Admin, general expenses & fees f &bbrokerage k ‐17.0% 17 0% ‐7.8
Slide 11: Maybank Group: Key Ratios
Maybank Group: Key Ratios 1Q11 4Q10 3Q10 2Q10 1Q10 Net Interest Margin 2.75% 2.88% 2.76% 2.77% 2.82% Return on Equity (normalised) 14.8% 14.5% 13.8% 14.3% 13.4% Fee to Income Ratio 32.9% 35.2% 37.5% 38.4% 35.6% Cost to Income 48.5% 46.9% 47.8% 48.1% 48.5% Adj. Cost to Income * 50.0% 45.5% 49.7% 48.8
Slide 12: Adoption of FRS 139 and Basel II
Executive Summary Financial Performance Adoption of FRS 139 and Basel II B siness Review Business Re ie Country Review Economics and Prospects 11
Slide 13: Adoption of full FRS139: minimal impact to shareholders' funds
Adoption of full FRS139: minimal impact to shareholders’ funds ■ Maybank aligns itself with international standards by adopting full FRS 139 with minimal impact to shareholders’ funds. As Effect of Effect of 1 July 2010 previously As restated FRS 139 FRS 4 stated Share Capital 7,078 7,078 Reserves ‐
Slide 14: Asset Quality: More stringent methodology for FRS139
Asset Quality: More stringent methodology for FRS139 The more refined and stringent methodology under FRS139 resulted in higher impaired loan ratio though GP 3 provisioning continues to show improvement Pre‐FRS 139. Post‐FRS 139. 124.52% 125.59% 84.13% 117.79% 120.49% 87.58% 112.87% 113.21% Loan los
Slide 15: Full adoption of Basel II RWCA Framework
Full adoption of Basel II RWCA Framework ■ Maybank’s adoption of Basel II Risk Weighted Capital Adequacy (RWCA) Framework brings it in line with regional peers. ■ Under Basel II, Risk Weighted Assets (RWA) increased due to inclusion of Operational RWA of RM22.0 billion but mitigated by decrease in C
Slide 16: Business Review
Executive Summary Financial Performance Adoption of FRS 139 and Basel II B siness Review Business Re ie Country Review Economics and Prospects 15
Slide 17: Strong performance in CFS and GWB's corporate banking segments
Strong performance in CFS and GWB’s corporate banking segments Global Wholesale Banking (GWB) 4.4% M million) 3,071 1QFY10 3,208 1QFY11 ‐5.2% Revenue (RM 7.8% 1,480 2.2% 14.0% ‐34.2% 891 27.2% 1,403 ‐64.8% 411 961 210 68 45 147 187 240 420 ‐48 ‐136 million) Total Community Corporate Banking Global M
Slide 18: Community Financial Services: Mortgage Loans and Hire Purchase
Community Financial Services: Mortgage Loans and Hire Purchase Growth in mortgage g g loans remains above RM500 million Mortgage Loans: Improving Asset Quality 888.2 7.6% 7.4% 855.3 6.9% 783.2 6.3% 665.8 5.4% 5.0% 556.8 RM million 256.4 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Gro
Slide 19: Community Financial Services: Cards continues to gain market share
Community Financial Services: Cards continues to gain market share Gaining Market Share Card Growth above industry Sep 10 Sep 09 YoY Maybank Industry* Cardbase 16.6% 15.2% Cardbase ‐13.7% ‐21.1% Billings 22.3% 21.5% Billings 18.0% 13.2% Receivables 14.2% 14.2% Receivables 12.9% 12.8% Merchant Sales
Slide 20: GWB gross loans affected by chunky repayments
GWB gross loans affected by chunky repayments GWB gross loans declined by 12.9% annualised due to chunky repayments 6,650 Trade Finance ‐4.5% 6,726 12 729 12,729 Short Term Revolving Credit 12,222 16.6% 20,729 31.4% ‐31 4% T Term L Loan & Overdraft O d ft 22,495 RM million ‐ 5,000 10,000 15,000 20,0
Slide 21: Global Markets performance boosted by trading activities
Global Markets performance boosted by trading activities Credit Rating for Private Debt Securities in Malaysia Growth in Revenue 2.2% 411.4 420.4 AAA 36% A and Below RM million n 33% ‐AA to AA 1Q10 1Q11 3 % 31% Revenue Growth in PBT Group Securities Portfolio grew 33.8% annualised (Total = RM58 RM58
Slide 22: Brokerage activities contributed majority of IB income
Brokerage activities contributed majority of IB income Fee based Income 1Q11 Q Fee based Income Segmentation g Corporate Underwriting / 1QFY11 52.6 Placement Fees Advisory Fees 10% 18% FY10 196.2 Arrangers' Fees FY09 107 3 107.3 8% FY08 198.3 Agency / FY07 97.9 Guarantee Fees Brokerage Fee 1% 53% FY
Slide 23: Etiqa maintains pole position in Life/Family and General
Etiqa maintains pole position in Life/Family and General Market Share: No. 1 in Life/Family (new business) Market Share: No. 1 in General Etiqa 20.9% Etiqa 10.8% ING Insurance 13.2% Allianz General 9.3% Prudential 11.4% Kurnia 7.3% Great Eastern Life 10.9% MSIG 6.3% MAA 5.2% Tokio Marine 5.1% 0.0% 5
Slide 24: Maybank Islamic maintains strong financing growth of 25.8% YoY
Maybank Islamic maintains strong financing growth of 25.8% YoY Income and PBT +12 3% Maybank +12.3% y Islamic financingg (25.8% ( YoY ggrowth)) +9 % YoY 12.8 12.4 +5% QoQ 11.4 +5.6% 483.9 508.0 465.7 +147.8% million +167% YoY +3.1% 5.7 +21.9% +83.3% RM m 55 5.5 57 5.7 +30% QoQ 5.4 3.3 4.4 3.9 2.2 3.
Slide 25: Country Review
Executive Summary Financial Performance Adoption of FRS 139 and Basel II B siness Review Business Re ie Country Review Economics and Prospects 24
Slide 26: Singapore: PBT improved 3.6% on higher income and lower provision
Singapore: PBT improved 3.6% on higher income and lower provision Revenue and PBT rose 5.2% and 9.4% YoY respectively Diversified Loan Portfolio +6 6% YoY +6.6% +5.2% +5.0% annualised 150.4 158.2 17.54 17.75 16.65 Others +3.6% 4.4 4.6 4.2 SGD milllion Car Loans 81.2 84 1 84.1 Revenue 3.3 33 3.3 33 3
Slide 27: Bank Internasional Indonesia: Income Statement
Bank Internasional Indonesia I Income St Statement t t Rp Billion Jul 10-Sept 10 Jul 09-Sept 09 Interest income 1 688 1,688 1 474 1,474 Interest expense (739) (721) Net interest income 949 753 Non-interest Non interest income 512 439 Gross Operating income 1,461 1,192 Operating expenses (excluding p
Slide 28: Bank Internasional Indonesia: Revenue and PBT
Bank Internasional Indonesia Revenue and PBT +22 6% +22.6% Net Interest Margin 1,461 Revenue 1,192 PBT 6.85% 6.62% h billion 6.15% 6.10% 6.09% 5.90% 6.05% Rupiah +16.7 5.91% 72 84 1Q10 1Q11 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 YoY Gross Loans: Composition (Rp trillion) and growth Loan‐to‐Deposit
Slide 29: Bank Internasional Indonesia: Branches and Asset Quality
Bank Internasional Indonesia Branches and ATM Asset Q Qualityy 893 Branches PSAK 50 & 55 844 787 806 ATM + CDM 740 745 743 748 4.74% 3.46% 3.50% 3.52% 3.20% 430 2 79% 2.79% 2.88% 370 2.39% 260 274 295 249 252 255 255 255 2.79% ` 2.00% 1.85% 1.87% 1.92% 1.87% 1.97% 1.56% Dec‐ Mar‐ Jun‐ SSep‐ Dec‐ Mar
Slide 30: Bank Internasional Indonesia: WOM Finance
Bank Internasional Indonesia: WOM Finance Revenue and PBT Monthlyy Sales Volume +26.0% Thousands of units 450 407 70.0 63.8 61.0 400 56.9 60.0 55.7 54.2 323 52.8 51.1 350 50.0 45.6 44.5 on 300 42 1 42.1 Rupiah Billio 40.9 40.0 36.1 36.8 250 Total Revenue 200 30.0 Profit Before Tax 150 +68.6% 20.0 10
Slide 31: MCB Bank: Financial Highlights
MCB Bank: Financial Highlights Revenue and PBT +11 5% +11.5% 10.9 9.8 +20.3 7.2 PKR billion 60 6.0 YTD YTD Revenue Key Ratios Sept 10 Sept 09 PBT ROA 3.2% 3.5% ROE 26 0% 26.0% 28 3% 28.3% 1Q10 1Q11 Cost to Income Ratio 56.1% 51.4% Loans and Deposits Loan-Deposit Ratio 58.5% 69.9% +16.6% % NPL Ratio
Slide 32: Economics and Prospects
Executive Summary Financial Performance Adoption of FRS 139 and Basel II B siness Review Business Re ie Country Review Economics and Prospects 31
Slide 33: Malaysia: Economic Rebound
Malaysia: Economic Rebound 2010 GDP revised upward p to 7.5%;; 6.1% in 2011 Inflation expected to rise to 1.7% in 2010 (2011: 2.5%) 150 Quarterly GDP and annual growth rate 12 14 CPI and components (% YoY) 25 20 140 9 12 Transport (RHS) 15 6 10 130 10 3 8 5 120 0 0 6 110 (5) (3) Food & Non-Alcoholic
Slide 34: Malaysia: Banking Sector
Malaysia: Banking Sector Total Loans grew 11 11.9% 9% YoY for Sep 2010 Total Deposits p ggrew 8.9% YoY for Sep p 2010 910 18% Total Deposits Total Deposits YoY Growth 860 16% 1150 25.0% 14% 1100 810 20.0% 12% 1050 on RM billio 760 RM billion n 1000 15.0% 10% 710 950 8% 10.0% Total Loans 900 660 Tota
Slide 35: Economic Transformation Plan (ETP): Banks to benefit
Economic Transformation Plan (ETP): Banks to benefit ■ Banks to benefit from the filtering down of a larger domestic economic activity base ■ 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 pr
Slide 36: Prospects
Prospects ■ Banking sector prospects remain positive, supported by improved consumer and business sentiment on the back of sustained economic growth, forecast at 7.5% in 2010 and 6.1% in 2011. ■ Competition in the financial services industry is intensifying, driven by strong domestic players, new en
Slide 37: Thank You
Thank You Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the information that may be required to evaluate the Company or its financial position. No representation or warranty, express or impl
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