Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — H1 2012 Earnings Presentation
46 slides from Malayan Banking Bhd's earnings presentation, Aug 16, 2012
Slide 1: Investor Presentation: Financial Results First Half FY2012
Investor Presentation Financial Results First Half FY2012 ended 30 June 2012 16 August 2012 www.maybank.com 0
Slide 2: Agenda: Executive Summary
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects 1Financial Results: First Half FY2012 ended 30 June 2012
Slide 3: Key Highlights: Continued Profit Growth
Key Highlights: Continued Profit Growth Continued revenue and profit growth for 1H FY12 Revenue grew 18.0% YoY to RM8.2 billion due to 22.3% growth in fee-based income while fund based income rose 15.2% PATAMI grew 21.2% YoY to RM2.78 billion; 2Q FY12 PATAMI grew 24.5% YoY to RM1.44 billion
Slide 4: Key Performance Indicators for 1H FY12
Key Performance Indicators for 1H FY12 FY2012 1H FY12 * Target Headline KPIs Return on Equity 15.6% 16.1% Loans and Debt Securities Growth 15.2% 13.8% Other targets Group Loans Growth 16.2% 15.0% • Malaysia 13.6% 15.8% • Singapore ** 11.4% 4.9% • Indonesia** 20.9% 18.8% Group Deposits Growth 12.3% 1
Slide 5: Agenda: Financial Performance
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects 4Financial Results: First Half FY2012 ended 30 June 2012
Slide 6: 2Q FY12 PATAMI rose 6.7% QoQ to RM1.44 billion
2Q FY12 PATAMI rose 6.7% QoQ to RM1.44 billion with an EPS of 18.64 sen Quarter RM million 2Q FY12 1Q FY12 QoQ 4Q FY11 YoY Jun 2012 Mar 2012 Change Jun 2011 Change Net interest income 2,106.3 2,020.7 4.2% 1,826.7 15.3% Net Fund based income (Islamic Banking) 441.2 375.6 17.5% 365.4 20.8% Total net f
Slide 7: 1H FY12 PATAMI grew 21.2% YoY to RM2.78 billion
1H FY12 PATAMI grew 21.2% YoY to RM 2.78 billion, supported by an 18.0% YoY increase in net income Half Year RM million 1H FY12 2H FY11 YoY Jun 2012 Jun 2011 Change Net interest income 4,127.0 3,598.2 14.7% Net Fund based income (Islamic Banking) 816.9 695.4 17.5% Total net fund based income 4,943.9
Slide 8: Strong Balance Sheet: Total Assets grew 17.4% annualised
Strong Balance Sheet: Total Assets grew 17.4% annualised, LDR improved to 86.9% 30 Jun 31 Dec 2011 Annualised 1 Jul 2011 YoY RM billion 2012 (restated)* Growth (restated)* Growth Cash and short-term funds 60.3 49.1 45.9% 38.8 55.5% Deposits with financial institutions 8.6 6.5 66.9% 10.3 -16.3% Secur
Slide 9: Gross loans grew 15.0% annualised
Gross loans grew 15.0% annualised (16.2% YoY), led by a 15.8% growth in domestic markets and 12.3% growth in international markets 1H FY12 30 Jun 31 Mar QoQ 31 Dec 30 Jun YoY RM billion Annualised 2012 2012 Growth 2011 2011 Growth Growth Community Financial Services 127.9 123.2 3.8% 120.7 12.0% 112.
Slide 10: Deposits grew 16.9% annualised
Deposits grew 16.9% annualised (20.7% YoY), driven mainly by growth in Malaysia of 19.6% (22.5% YoY) Malaysia Singapore BII Group Annualised YoY SGD Annualised YoY Annualised YoY Annualised YoY RM bil Rp tril RM bil Growth Growth bil Growth Growth Growth Growth Growth Growth Savings Deposits 35.0 12
Slide 11: Asset Quality continues to improve
Asset Quality continues to improve with net charge off rate for 1H FY12 at 28bps Allowance for losses on loans Impaired Loans Ratio +229.7% YoY 4.60% 4.67% 395.3 4.20% +317.9% 3.67% YoY 3.34% 3.23% +1.8 % 2.84% 230.3 QoQ 2.99% 2.83% 2.44% 2.74% 195.9 199.4 2.00% 2.39% 2.25% 2.18% 1.86% 119.9 98.7 1.
Slide 12: Group Fee-based Income increased 22.3% YoY
Group Fee-based Income increased 22.3% YoY to RM3.29 billion*. Excluding Kim Eng it increased 17.3% YoY. +29.5% 2H FY11 ended Jun 2011 1H FY12 ended Jun 2012 2,752 +24.3% 2,126 1,790 1,440 RM million +223.8% +186.7% -11.5% +7.5% -40.2% +110.3% 486 430 430 284 278 257 (68) 182 195 135 86 59 Total non
Slide 13: Improved operating efficiency, lower cost to income ratio of 47.8%
Improved operating efficiency resulted in lower cost to income ratio of 47.8% 2Q FY12 1H FY12 Overhead Expenses QoQ (exc. YoY (exc. Kim YoY (exc. QoQ YoY YoY Kim Eng) Eng) Kim Eng) Personnel costs 4.7% 13.4% 4.0% 9.5% 20.9% 15.0% IT Expenses 0.9% -18.4% 1.6% -21.2% -5.4% -10.2% Marketing Expenses 14
Slide 14: RWCR strengthened to 15.49%
RWCR strengthened to 15.49% from 15.35% in 1Q FY12 Adjusted for dividend payment and reinvestment made under Full electable Assuming 85% Full electable the Dividend Reinvestment Plan (DRP) portion paid reinvestment rate portion in cash reinvested 15.20% 16.29% 14.71% 15.35% 15.57% 14.99% 15.49% 11.6
Slide 15: Gross interim dividend of 32 sen per share
The Group will declare a gross interim dividend of 32 sen per share less 25% tax Consistently rewarding shareholders with dividend in excess of policy of 40-60% Dividend Payout Ratio. The Board declared gross interim dividend of 32 sen per share less 25% tax which will consist of 4 sen cash port
Slide 16: Maybank Group: Key Ratios
Maybank Group: Key Ratios 1H FY12 2Q FY12 1Q FY12 FP11 FY11 Net Interest Margin 2.37% 2.42% 2.38% 2.53% 2.56% Return on Equity** 16.1% 16.4% 16.0% 16.2% 15.2% Fee to Income Ratio 40.0% 39.2% 40.8% 37.6% 36.6% Cost to Income # 47.8% 46.9% 48.7% 49.8% 49.6% Loan-to-Deposit Ratio 86.9% 86.9% 87.2% 87.5
Slide 17: Agenda: Business Sector Review
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects Financial Results: First Half FY2012 ended 30 June 2012 16
Slide 18: Revenue and PBT growth across most sectors
Revenue and PBT growth across most sectors +18.0% 2H FY11 ended 30 June 2011 8,238 1H FY12 ended 30 June 2012 Global Wholesale Banking (GWB) +48.6% Revenue (RM million) 6,984 +0.4% +50.1% +18.3% +113.6% +26.1% -21.9% 3,252 3,240 2,569 2,038 1,029 756 894 685 338 721 630 492 Total Community Corporate
Slide 19: Revenue grew due to higher fund based and fee-based income
Revenue grew due to higher net fund based and fee-based income Net Fund Based Income rose 15.2% 2H FY11 ended 30 June 2011 +15.2% 1H FY12 ended 30 June 2012 4,944 Global Wholesale Banking (GWB) +14.7% RM million 4,294 +6.1% +22.8% 2,458 +45.1% -15.3% -14.8% +0.2% 2,317 1,689 1,376 440 638 366 310 81
Slide 20: Increasing revenue, PBT and loans from international operations
Increasing revenue, PBT and loan contribution from international operations Revenue Profit Before Tax Gross loans* 1H FY2012 (Jan 12 – Jun 12) 6.6% International: 5.6% International: 7.8% International: 36% 28% 7.1% 36% 8.3% 15.5% 12.6% RM8.24b RM3.92b 21.3% RM304.0b* 14.4% 64.4% 63.8% 72.5% Malaysi
Slide 21: Community Financial Services: Mortgage grew 14.9% annualised
Community Financial Services: Mortgage grew 14.9% annualised with improving asset quality Continued growth despite intense competition Asset quality continued to improve +17.2% YoY * +14.9% annualised 3.1% 2.8% 38.6 42.1 43.4 45.2 2.2% 1.9% 5.7 6.1 6.6 1.6% RM billion 5.0 33.6 36.4 37.3 38.6 Jun 11
Slide 22: Community Financial Services: Auto Finance improved in volume and share
Community Financial Services: Auto Finance* business improved in volume and market share Auto Finance* grew 14.1% annualised in Jun 12 Asset quality remained stable with increasing market share +14.2% YoY 20.5% 2.0% +14.1% annualised 20.0% 20.2% 1.5% 27.2 28.0 29.1 19.5% 18.8% 19.0% 19.9% 25.5 19.0%
Slide 23: Community Financial Services: Cards gain market share
Community Financial Services: Cards continued to gain market share Cards Market Share Cards performance outperforming industry Jun 12 Jun 11 YoY Maybank Industry* Cardbase 18.3% 17.6% Cardbase 1.0% -2.9% Billings 25.2% 23.2% Billings 19.5% 10.1% Receivables 15.1% 14.9% Receivables 6.2% 5.1% Merchant
Slide 24: Business Banking and SME: Expanding loans and deposits
Business Banking and SME: Expanding loans and deposits base Loans grew 8.2% annualised in Jun 2012 Deposits growth at 10.0% on annualised basis +8.2% ann. +10.0% ann. 26.9 50.7 51.5 53.2 24.7 24.6 25.8 25.5 47.3 41.2 RM billion RM billion Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Jun 11 Sep 11 Dec 11 Mar 1
Slide 25: GWB: Loans Growth driven by Term Loans
GWB: Loans Growth driven by 28.0% YoY increase in Term Loans Total GWB loans# increased by 10.5% YoY to Strong position in terms of Trade Finance Market Share RM62.0 billion 28% 26.9% RM billion 27% 26.4% 25.7% 25.8% 32.5 26% 24.7% Term Loan 25.9 +28.0% 25% 25.4 YoY 24% 23% Jun '11 Sep '11 Dec '11 M
Slide 26: Global Markets growth supported by Non-Interest Income
Global Markets growth supported by a 38.3% YoY increase in Non-Interest Income PBT and Revenue grew 10% and 17% YoY respectively Credit Rating for Private Debt Securities in Malaysia Non-interest income +10.3% +17.3% Net interest income Comm. 1057 1,261 958 Papers 1,075 1% 518 Not Rated 538 30% AAA
Slide 27: Maybank Kim Eng total income of RM758.4 million
Maybank Kim Eng* reported a total income of RM758.4 million with Malaysia contributing 50% of the total income 1H FY2012 Total Income (RM mil) Total Income for Malaysia rose 122% YoY and 82% compared to 6m FP11 Malaysia, Others, 450.0 Other income 382.8, 50% 19.2, 3% 400.0 3.3 Fund based Hong Kong,
Slide 28: Maybank Kim Eng notable deals in Malaysia
Maybank Kim Eng has made big strides with several notable deals, putting it in a leading position in Malaysia 1H FY2012 Maybank IB’s (Malaysia) Industry Position & Recent Notable Deals Market Share Industry Total Deals Market Rank by Value / Share PETRON OIL & GAS INTERNATIONAL Value (RM bil) Issues
Slide 29: Group Islamic Banking grew PBT by 50.9%
Group Islamic Banking business grew PBT by 50.9% YoY to RM715.5 million Group Islamic Banking Income and PBT* Market Share YoY Jun 2012 Jun 2011 RM million 1H 2Q FY12 FY12 2H FY11 4Q FY11 Growth AITAB ** 30.4% 33.7% Fund based income 816.9 695.4 17.5% Fee based income 284.8 135.4 110.3% Mortgage 20.
Slide 30: Etiqa: No. 1 in Life/Family and General Business
Etiqa: No. 1 Position in Life/Family (new business) and General Business Loss Ratio Industry Source: Loss ratio for Malaysia’s Conventional business only with rolling 12 Months (Apr11-Mar12). Total Assets (RM billion) Life/Family (New Business) Market Share Etiqa Ins. & Tak. 14.0% No. 1 in +5.5% YoY
Slide 31: Agenda: Country Review
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects Financial Results: First Half FY2012 ended 30 June 2012 30
Slide 32: Singapore: 1H PBT rose 7.2% YoY
Singapore: 1H PBT rose 7.2% YoY to SGD190m driven by higher fund and fee based income and lower net provision Revenue and PBT rose 4% and 7% YoY respectively Diversified Loan Portfolio 4.1% annualised 2H 1H 22.0 24.6 25.1 Other (Consumer) 1H 6M 2H YoY 1.0 1.2 1.4 SGD million FY12 FY12 FP11 FY11 FY11
Slide 33: BII: PATAMI grew 61% YoY
BII : PATAMI grew strongly by 61% YoY with improving NIM and continuing efficiencies in operating expenses Consolidated Income Statement* 1H FY11 1H FY12 Growth IDR billion Jun 11 Jun 12 YoY Interest Income 3,685 4,556 24% Interest Expenses (1,740) (1,979) 14% Net Interest Income 1,945 2,577 32% Non
Slide 34: BII: Strong loans growth of 24% YoY
BII: Strong loans growth of 24% YoY accompanied by improved asset quality Loans composition (IDR trillion) Net Interest Margin 73.5 69.8 67.2 5.89% 62.0 4.3 59.5 4.2 4.4 0.4 0.4 4.5 0.4 22.2 4.6 0.4 0.4 21.0 21.6 20.1 5.51% 19.1 5.43% 16.4 17.1 19.5 11.0 14.3 5.28% 5.22% 24.4 22.8 25.0 26.6 27.1 Jun
Slide 35: BII: Branches and touch points expansion on track
BII: Branches and touch points expansion on track Branches and ATM Capital Adequacy : consolidated (credit, operational & market risk) 1,218 1,152 1,190 13.06% 1,088 952 1,009 1,017 844 893 12.71% 12.56% 12.46% 12.33% 327 337 344 346 351 368 375 274 295 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Jun-11 Sep-
Slide 36: WOM Finance: Asset quality improving
WOM Finance : Overall consolidated asset quality is improving. However total industry is expected to feel the impact of new regulations. Revenue and PBT (IDR billion) Unit Financing (000 unit) stand alone +1.2% Consolidated 268 270 778 787 238 217 -90% 52 29 4 -40 YTD Jun'11 YTD Jun'12 New Used Tota
Slide 37: An Binh Bank: PBT rose 15% YoY
An Binh Bank: PBT rose 15% YoY PBT increased by VND44.7 bil or 15% to VND352.3 bil for the 1H FY2012 mainly contributed by higher net interest income Revenue and PBT (+VND40.4 bil) and non-interest income (+VND15.2 bil). It is further supported by lower provisioning by VND87.7 bil. +7% However, ov
Slide 38: MCB Bank: PBT rose 7.3% YoY
MCB Bank: PBT rose 7.3% YoY PBT increased by PKR1,195.8 mil or 7.3% against Revenue and PBT corresponding period, mainly contributed by increase in non-interest income (“NOII”) by -0.3% PKR1,220.5 mil and lower provisioning by 26,454.0 26,366.8 PKR2,038.8 mil. Higher NOII is mainly due to the +7.3
Slide 39: Agenda: Economic Update and Prospects
Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects Financial Results: First Half FY2012 ended 30 June 2012 38
Slide 40: Malaysia: Sustained Economic Growth for 2012
Malaysia: Sustained Economic Growth for 2012 Around 5% growth in 2012, thanks to resilient 5.1% expansion in 1H Inflation expected to moderate to 2% in 2012 (2011: 3.2%) 2012 (2011: 5.1%) amid robust domestic demand 2Q12 GDP: +5.4% YoY CPI and components (% YoY) Quarterly GDP and annual growth rate
Slide 41: Malaysia: Banking Sector to Remain Healthy
Malaysia: Banking Sector to Remain Healthy Total Loans grew 12.6% YoY in June 12 (Maybank Domestic:13.3%) Total Deposits grew 12.6% YoY (Maybank Domestic: 22.5%) 1,200 Total Loans Total Loans YoY Growth 20% 1,400 25% Household YoY Growth Business YoY Growth Total Deposits Total Deposits YoY Growth 1
Slide 42: Singapore: External Headwinds to Challenge Growth in H2 2012
Singapore: External Headwinds to Challenge Growth in H2 2012 Singapore’s official economic growth forecast for 2012 revised to 1.5%- Real GDP growth for 2012 expected to be 1.5% – 2.5% 2.5% from 1%-3% previously following a weaker-than-expected GDP (2011: 4.9% ) growth of 1.7% in H1 2012. 80 25
Slide 43: Indonesia: Domestic Demand Supporting Growth
Indonesia: Domestic Demand Supporting Growth ■ GDP growth was sustained at above 6% in H1 2012 (6.3% YoY), on (y-y) Real GDP growth: Improving growth the back of consumer spending (5% YoY), public consumption (6.5% 8.00% YoY) and investment (11.2% YoY). 7.00% ■ IDR remains under pressure due to vola
Slide 44: Other key priorities for 2H FY2012
Other key priorities for 2H FY2012 Maybank is fully ready for the transitional arrangements that come into effect on 1 January 2013 1. Basel 3 Group Capital Plan is in place to prepare to meet Basel 3 requirements in line with the transitional arrangements Maybank DRP programme to continue as
Slide 45: Prospects
Prospects In 2012, global GDP growth is forecast at 3% (2011 est.3.8%) with slower growth for Eurozone, US and China. The economies of the three home markets of Malaysia, Singapore and Indonesia, where Maybank Group operates in, are expected to have GDP growth of 5.0%, 3.0% and 6.2% respectively (
Slide 46: Malayan Banking Berhad Investor Relations Contact
MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Investor Relations Contact Mohamed Rafique Merican Group Chief Financial Officer Contact: (6)03-2074 7878 Email: rafique@maybank.com.my Narita Naziree Head, Group
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