Ammb Holdings Bhd. · MYX:AMBANK
Ammb Holdings Bhd — Q1 FY2024 Earnings Presentation
39 slides from Ammb Holdings Bhd's earnings presentation, Aug 21, 2023
Slide 1: Q1FY2024 Results Investor Presentation
Q1FY2024 RESULTS (30 JUNE 2023) INVESTOR PRESENTATION 21 AUGUST 2023
Slide 2: GCEO Presentation
GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 Q1FY24 Financial snapshot 4 Retail Banking PHRA 5 Loans by stages 6 Outlook for 2023
Slide 3: Q1FY24 Financial Snapshot (Reported)
Financial Snapshot (Reported) Q1FY24 Financial snapshot Q1FY24 Reported Financials Variance Strong PBP growth offset by higher impairment charges • Higher funding costs; NIM 1.76% (Q1FY23: 2.12%) 1,202 • Partially offset by stronger fee income, trading and Income 4% Q1FY23: 1,153 investment income
Slide 4: Retail Banking (RB) PHRA loans
Payment Holiday and Repayment Assistance (PHRA) loans under 6 or 12 months observation period Retail Banking (RB) PHRA loans Total Retail Banking loans and PHRA by staging (RM’ bil) A) Mortgage loans and PHRA by staging (RM’ bil) Of which, PHRA balance2 Of which, PHRA balance2 72.4 73.3 45.4 46.0 1.
Slide 5: Loans by stages
Loans (Reported) Loans by stages Loans by ECL Stages (RM’ bil) Breakdown by Business Segments1 (%) Stage 1 Stage 2 Stage 3 Stage 1 91.6% 91.5% 130.2 129.0 88.6% 124.4 126.3 RB 120.1 1.5% 1.7% BB 1.5% 1.6% WB 88.7% 87.2% 1.6% 9.7% 9.9% 11.0% 10.2% 11.9% 87.7% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 88.8%
Slide 6: Outlook for 2023
Market Outlook Outlook for 2023 GDP Growth 4.0% to 4.3% Inflation 2.7% to 3.2% Malaysia Unemployment Rate 3.5% USD/MYR Outlook 4.50 to 4.60 Loans Growth 4.0% to 5.0% Asset Quality Stable Banking OPR 3.00% Sector Liquid & Capital Positions Resilient 6 Q1FY24 Results – Investor Presentation
Slide 7: GCFO Presentation
GCFO PRESENTATION Jamie Ling 7- 24 Financial Overview
Slide 8: Q1FY24 Financial Overview
Financial Overview Q1FY24 Financial overview 1 Capital, Liquidity and Funding • CET1 at 12.88%, TCR at 16.52%. Without TA, CET1 at 12.59%, TCR at 16.33% • Highly liquid (FHC LCR of 170.0%, LDR 99.0%) 2 Q1FY24 Reported Results (QoQ) • Income of RM1,202mil, up 4% QoQ - NII of RM809mil, down 2%. Report
Slide 9: Q1FY24 Performance summary – P&L
Financial Overview (Reported) Q1FY24 Performance summary – P&L P&L (RM’ mil) Q4FY231 Q1FY24 QoQ Change Q1FY231 Q1FY24 YoY Change Total Income 1,152 1,202 4% 1,153 1,202 4% - NII 824 809 (2%) 863 809 (6%) - NOII 3281 393 20% 2891 393 36% MFRS 17 restatement impact (8) - N/A (9) - N/A Expe
Slide 10: Q1FY24 Performance summary – Balance Sheet
Financial Overview (Reported) Q1FY24 Performance summary – Balance Sheet Balance Sheet (RM’ bil) Mar’23 June’23 YTD Change June’22 June’23 YoY Change Gross Loans 130.2 129.0 (1%) 120.1 129.0 7% GIL 1.46% 1.66% 0.20% 1.55% 1.66% 0.11% LLC (with Reg Reserves) 127.7% 115.6% (12.1%) 123.3% 115
Slide 11: Group P&L walk
Group P&L P&L walk YoY Growth (3%) 68% 11% 8% 14% >100% (10%) (12%) (9%) 9% (8%) Positive growth in Q1FY24 Contraction in Q1FY24 Total Tax and Cont’d Discont’d Reported NII NOII Expenses PBP Impairment PBT Income Zakat PATMI PATMI PATMI Q1FY24 809 342 1,151 (508) 643 (190) 453
Slide 12: Good Income Growth led by NOII
Income Good Income Growth led by NOII Business Segments Q4FY231 Q1FY24 QoQ Change Q1FY231 Q1FY24 YoY Change (RM’ mil) Wholesale Banking 282 334 18% 250 334 34% Investment Banking 84 91 8% 75 91 21% Retail Banking 454 465 2% 446 465 4% Business Banking 280 269 (4%) 237 269 13% Group F
Slide 13: NIM compression moderating QoQ
NIM NIM compression moderating QoQ YoY NIM Q1FY24: Net Interest Margin (NIM) Movement (QoQ) Reported: 1.76% ( (36bps) ) Q1FY23: Reported: 2.12% Divisions Funding + Deposits Reported: (8bps) bps 3.6 0.2 (3.0) (0.1) (0.5) (6.3) (2.8) 184 176 Q4FY23 Retail Wholesale Banking Investment Banking Busin
Slide 14: Strong Trading, Investment Banking and Insurance performance
NoII Strong Trading, Investment Banking and Insurance performance Composition 3% 3% 30% 18% 6% 3% 9% 13% 5% 5% 3% 2% 100% YoY Growth >100% (10%) >100% 15% 1% (51%) 16% 25% 90% (4%) >100% 82% 68% (40%) 36% Positive growth in Q1FY24 Contraction in Q1FY24 Q1FY23 NoII Q1FY24
Slide 15: Disciplined cost management, Reported CTI 42.2%
Expenses Disciplined cost management, Reported CTI 42.2% Business Segments Q4FY23 Q1FY24 QoQ Change Q1FY23 Q1FY24 YoY Change (RM’ mil) Wholesale Banking 85 75 (11%) 67 75 11% Investment Banking 56 52 (5%) 47 52 13% Retail Banking 277 274 (1%) 244 274 12% Business Banking 90 81 (10%) 72
Slide 16: Positive operating leverage, Reported PBP up 14%
PBP & PAT Positive operating leverage, Reported PBP up 14% Business Segments Q4FY231 Q1FY24 QoQ Change Q1FY231 Q1FY24 YoY Change (RM’ mil) Wholesale Banking 197 259 31% 182 259 42% Investment Banking 28 38 35% 28 38 36% Retail Banking 177 191 8% 202 191 (5%) Business Banking 190 188 (1
Slide 17: Lower customer activities in WB and BB, offset by growth in RB
Loans Lower customer activities in WB and BB, offset by consistent growth in RB Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: ROA: RoTA: Fixed rate – 21% Islamic – 35% Retail – 55% 0.83% 0.83% Variable rate –79% Conventional – 65% N
Slide 18: Higher impairment charges in BB and RB
Asset Quality Higher impairment charges in BB and RB Net Impairment (YoY Movement) (RM’mil) Positive P&L impact in Q1FY24 Negative P&L impact in Q1FY24 Gross Impaired Loans (RM’mil) and Loan Loss Coverage (LLC) Ratios Credit Cost and New Impaired Loans Formation AmBank Group FY21 FY22 FY23 Q1FY234 Q
Slide 19: Vigilant monitoring of sector exposures
Asset Quality Vigilant monitoring of sector exposures Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired June’22 Mar’23 June’23 YTD YoY Sector Composition Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil RM’ m
Slide 20: Stable deposit level, FD surge amid high interest rates
Deposits Stable deposit level, FD surge amid high interest rate environment Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) CASA Trend YTD Growth Industry Customer Deposits Trend YTD Growth Industry Q1FY24 130.3 ≈ ≈1 Q1FY24 39.6 (19%) ≈1 FY23 130.3 6% 5%2 FY23 48.8 13% (2%)2 FY2
Slide 21: Capital ratios continue to improve
Capital Capital ratios continue to improve RWA/Total Assets FHC Capital Adequacy Ratios2 RM’ bil 1 CET 1 / Tier 1 Total CAR Total Assets RWA/Total Assets Peers 66.7% 67.4% 62.7% 63.2% 16.33% 16.52% 15.80% 15.18% 15.47% 15.32% 15.65% 14.14% 14.48% 58.1% 54.9% 55.1% 55.1% 12.44% 11.65% 12.10% 12.59% 1
Slide 22: Q1FY24 Summary
Summary Q1FY24 Summary RESILIENT OPERATING BALANCE SHEET CREDIT PROFILE PERFORMANCE LEVERAGE STRENGTH • Moderating NIM • Maintained cost • GIL uptick in RB and • Improving capital compression discipline BB ratios • Resumption of • On-going • Overlays c/fwd at • Solid foundation digitalisation market
Slide 23: Appendix: P&L – Continuing & Discontinued Operations
Appendix Appendix: P&L – Continuing & Discontinued Operations Financial Effects post Disposal (Year-on-Year) Q1FY23 Q1FY24 YoY Movement Reported Cont’d Ops Discont’d Op Reported Cont’d Ops Discont’d Op Continuing Discontinued RM’mil Reported (A) + (B) (A) (B) (A) + (B) (A) (B) Operations Operation I
Slide 24: Thank You
THANK YOU
Slide 25: Reported yearly performance
Q1FY24 Results (Reported) Reported yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%)1 Total Income (RM’ mil) and Non-interest Income (%)1 Total Income: PATMI: ROE: CAGR FY21-FY23: 1.7% YoY Growth (7.8%) YoY Growth (1.5%) YoY Growth 4.3% Total Income Non-Interest Income % 9.3% 9.8% 9.8%
Slide 26: (Impairments) / Recoveries
Asset Quality (Impairments) / Recoveries Net (Impairments) / Recoveries and GIL Ratio Total impairments by category (RM’ mil) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 QoQ Change YoY Change ECL Stage 1 & 2 / CP – Non defaulted1 6 19 (55) 17 (31) >100% >100% ECL Stage 3 / CP – Defaulted (125) (155) (167
Slide 27: Divisional Performance
Divisional Performance
Slide 28: Wholesale Banking
Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth: 67% YoY Growth: 56% Total Income RM334 mil 34% FY23: 671 43% 237 209 Transaction 168 Banking 152 142 16% 27% Transaction Wholesale Banking Banking Coverage 3% 24%
Slide 29: Wholesale Banking
Wholesale Banking Wholesale Banking Income Statement YoY Growth (5%) >100% 34% 11% 42% >100% 58% 66% 56% Net Interest Non-Interest RM' mil Total Income Expenses PBP Recoveries PBT Tax Expenses PAT Income Income Q1FY24 208 126 334 (75) 259 49 308 (70) 237 Q1FY23 219 31 250 (67) 182
Slide 30: Investment Banking
Investment Banking Investment Banking League Table PAT Trend (RM’ mil) Market Share1 As At QoQ Growth: 31% Rank2 30 June 2023 YoY Growth : 27% DCM 15.3% 4 (Overall MYR Bonds) Islamic Sukuk 12.0% 4 FY23: 91 Unit Trust 7.8% 5 28 29 Stockbroking3 7.0% 5 23 22 18 M&A3 24.2% 1 Fund Raising3 4.5%
Slide 31: Investment Banking
Investment Banking Investment Banking Income Statement YoY Growth (5%) 27% 21% 13% 36% >100% 34% 65% 27% Net Interest Non-Interest (Impairment) / RM' mil Total Income Expenses PBP PBT Tax Expenses PAT Income Income Recoveries Q1FY24 12 78 91 (52) 38 (0) 38 (9) 29 Q1FY23 13 62 75 (4
Slide 32: Retail Banking
Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth: (46%) Total Income 4% YoY Growth : (61%) RM 465 mil >100% (47%) (8%) Others Mortgage 8% 11% Retail SME FY23: 409 8% (15%) 3% Auto Financing Retail SME Wealth 10% Pe
Slide 33: Retail Banking: cards and wealth
Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth: 3% Merchant volume (RM'mil) QoQ Growth: (1%) YoY Growth: (3%) YoY Growth: 42% Merchants in force ('000) QoQ Growth: (1%) YoY Growth: (4%) 35 34 34 34 34 FY23: 1,899 FY23: 15,367 563 539 3,945 524 3,870 3,708
Slide 34: Retail Banking
Retail Banking Retail Banking Income Statement YoY Growth 7% (9%) 4% 12% (5%) >100% (61%) (61%) (61%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax Expenses PAT Income Income Q1FY24 406 59 465 (274) 191 (127) 64 (15) 49 Q1FY23 381 65 446 (244) 202 (38)
Slide 35: Business Banking
Business Banking (Reported) Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth: (4%) QoQ Growth: (65%) Non-trade Trade YoY Growth: 6% YoY Growth: (52%) 34,512 33,220 31,483 32,142 31,998 10,163 9,265 9,452 9,615 9,298 1 FY23 : 477 22,031 22,527 22,701 24,349 23,954 163 Q1F
Slide 36: Business Banking
Business Banking Business Banking Income Statement YoY Growth 13% 15% 13% 13% 14% >100% (52%) (52%) (52%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax Expenses PAT Income Income Q1FY24 206 63 269 (81) 188 (114) 75 (17) 57 Q1FY23 183 55 237 (72) 166
Slide 37: AmBank (M) entity level
AmBank (M) entity level AmBank (M) Income Statement YoY Growth (3%) 49% 8% (3%) 17% >100% (23%) (23%) (23%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY24 551 210 761 (330) 431 (152) 279 (60) 218 Q1FY23 566 141 707 (339) 368
Slide 38: AmBank Islamic entity level
AmBank Islamic entity level AmBank Islamic Income Statement YoY Growth (1%) >100% 10% 52% (7%) (38%) 7% 9% 7% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ Income Income Q1FY24 249 46 295 (118) 177 (38) 139 (32) 107 Q1FY23 251 17 268 (7
Slide 39: Glossary & Disclaimer
Glossary & Disclaimer Glossary & Disclaimer of warranty and limitation of liability Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market Growth Definition QoQ growth refers to Q1FY24 vs Q4FY23 YoY gr
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