Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q1 FY2014 Earnings Presentation
53 slides from Malayan Banking Bhd's earnings presentation, May 29, 2014
Slide 1: Investor Presentation: Financial Results 1Q FY2014
Humanising Financial Services Across Asia Investor Presentation Financial Results First Quarter FY2014 ended 31 March 2014 29 May 2014 www.maybank.com 0
Slide 2: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 1 Result
Slide 3: Overview: Broader trends in the Malaysian market
Overview Broader trends in the Malaysian market 1 Stable YoY economic growth but softer QoQ trends 2 Moderating consumer spend trend continues 3 But mitigated by some pick up in external demand and trade QoQ loans growth in Malaysia moderated, 4 more apparent in non-household segments Contracting de
Slide 4: Overview (1/2)
Overview (1/2) Group net profit for 1Q FY2014 rose 6.3% YoY to RM1.60 billion Contributed by: Net income growth at 2.4% YoY, supported by higher growth in fund- Net Profit growth of 6.3% YoY, based income of 7.6% but offset by slower fee income growth ROE at 13.8% Marginal growth in overheads
Slide 5: Overview (2/2)
Overview (2/2) Lower YoY GIL but slight uptick QoQ due to specific accounts Due to: Uptick in provisioning for Malaysia but GIL of 1.77% lower than Group GIL lower YoY, but QoQ rise 2.21% a year ago related to specific accounts Rise in Indonesia GIL to 2.98% from 1.96% a year ago was attributa
Slide 6: FY2014 Group Targets
FY2014 Group Targets Group will focus on picking up momentum in coming quarters Key Performance FY2014 Maybank Maybank Industry Peer Indicators Targets Achievement Achievement Average Average (1Q FY14)* (YoY) (YoY) (YoY) Headline KPI Return on Equity* 15.0% 13.8% - - - Other targets Group Loans Grow
Slide 7: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 6 Result
Slide 8: 1Q FY2014 P&L Summary
1Q FY2014 P&L Summary Net Profit increased 6.3% YoY, led by higher net fund based income and managed overheads growth RM million 1Q FY14 1Q FY13 YoY 4Q FY13 QoQ Net interest income 2,392.8 2,427.4 (1.4)% 2,383.5 0.4% Net Fund based income (Islamic Banking) 731.5 475.3 53.9% 705.4 3.7% Net Fund Based
Slide 9: Overseas & Domestic Portfolio Mix 1Q FY2014
Overseas & Domestic Portfolio Mix 1Q FY2014 Overseas PBT contribution grew to 32%, from 31% in the corresponding period in 2013 Net Income Profit Before Tax Gross loans* 1Q FY14 (Jan 14 – Mar 14) Overseas: Overseas: Overseas: 35.2% 7.7% 31.9% 15.1% 38.7% 7.8% 12.2% 8.1% 4.0% RM4.44b 12.8% RM2.21b 15
Slide 10: Business Segment Performance 1Q FY2014 (1/2)
Business Segment Performance 1Q FY2014 (1/2) Net income rose 2.4% YoY driven by growth in international banking and CFS 2.4% 1Q FY2013 1Q FY2014 4,333 4,435 Global Banking (GB) -11.1% Net Income (RM million) 2.6% -0.1% -1.9% -36.4% 5.4% -6.3% 1,740 1,785 1,320 1,391 553 552 427 419 395 251 356 333 T
Slide 11: Business Segment Performance 1Q FY2014 (2/2)
Business Segment Performance 1Q FY2014 (2/2) Group registered higher net fund based income of 7.6% due to growth in international banking and CFS Net Fund Based Income rose 7.6% 7.6% 1Q FY2013 1Q FY2014 3,124 2,903 Global Banking (GB) -3.8% 2.4% -3.7% 4.2% -28.8% 5.0% 1.1% RM million 1,339 1,371 947
Slide 12: Fee based Income 1Q FY2014 (1/2)
Fee based Income 1Q FY2014 (1/2) Core fee income down 9.7% YoY due to lower investment and trading income 1Q FY2013 1Q FY2014 -9.7% 1,364 1,232 302.3% -8.7% -38.8% -12.1% -53.5% 102.3% -46.6% 860 785 455 RM million 279 228 144 57 79 77 -86 -97 37 -78 2 Total non-interest Commission, Investment & Unr
Slide 13: Fee based Income 1Q FY2014 (2/2)
Fee based Income 1Q FY2014 (2/2) Core fee income down 7.2% QoQ due to lower commission, service charges and fees -7.2% 4Q FY2013 1Q FY2014 1,327 1,232 -19.0% 65.8% -1.6% 13.2% -57.8% -98.9% -8.9% 969 785 RM million 279 202 228 185 168 87 84 77 -98 -97 37 2 Total non-interest Commission, Investment &
Slide 14: Group Loans Growth: Mar 2014
Group Loans Growth: 31 Mar 2014 First quarter loans growth was higher 13.9% YoY but recorded YTD annualised growth of 5.3% % of 31 Mar 14 31 Dec 13 Annualised 31 Mar 13 YoY Portfolio Group Gross Loans * 366.6 361.8 5.3% - 322.0 13.9% Malaysia (RM billion)** 223.2 223.6 (0.7)% 61% 202.4 10.3% Communi
Slide 15: Malaysia Loans Growth: Mar 2014
Malaysia Loans Growth: 31 Mar 2014 In Malaysia, consumer portfolio grew 9.6% on a YTD annualised basis, while non-consumer segments slowed % of RM billion 31 Mar 14 31 Dec 13 Annualised 31 Mar 13 YoY Portfolio Community Financial Services 154.5 151.9 6.9% 69% 138.9 11.3% Consumer 124.9 121.9¹ 9.6% 8
Slide 16: Group Deposit Growth: Mar 2014
Group Deposit Growth: 31 Mar 2014 Annualised group deposit growth was flat due largely to a contraction in current account and fixed deposits 31 Mar 14 31 Dec 13 Annualised % of Portfolio 31 Mar 13 YoY Group Gross Deposits 395.7 395.6 0.0% - 355.4 11.3% Malaysia (RM billion) 258.2 259.1 (1.5)% 65% 2
Slide 17: LDR and CASA Ratio: Mar 2014
LDR and CASA Ratio: 31 Mar 2014 Group LDR at 91.0% due to tighter liquidity, but CASA ratio is stable in Malaysia and Singapore offset by some contraction in Indonesia Group Malaysia LDR CASA 89.0% 87.5% 88.2% 89.9% 91.0% 86.6% 85.9% 86.6% 87.8% 87.9% 34.9% 34.2% 36.1% 36.1% 35.8% 40.5% 38.8% 40.7%
Slide 18: Key Operating Ratios
Key Operating Ratios Group’s operating ratios within guidance set for FY2014 Variance Variance (%) 1Q FY14 1Q FY13 4Q 2013 YoY QoQ Return on Equity 13.8 14.2 (0.4)% (2.1)% 15.9 Net Interest Margin 2.37 2.49 (12 bps) (1 bps) 2.38 Fee to Income Ratio 29.6 33.0 (3.4)% (4.5)% 34.1 Loans-to-Deposit Ratio
Slide 19: Overheads 1Q FY2014
Overheads 1Q FY2014 Group CIR improved with lower spending on IT and marketing related expenses Group overheads composition YoY (RM’ mil) 1Q FY2014 1Q FY2013 4Q FY2013 QoQ Personnel costs 1,237.3 1,221.5 1.3% 1,208.6 2.4% IT Expenses 105.9 142.5 (25.7)% 148.3 (28.6)% Marketing Expenses 135.3 162.8 (
Slide 20: Asset Quality: Mar 2014
Asset Quality: 31 Mar 2014 GIL improved YoY to 1.52%, but recorded a rise since end-Dec position Allowance for losses on loans Group Impaired Loans Ratio Allowances for losses on loans Loan loss coverage Gross Impaired Loans Ratio Net Impaired Loan Ratio 107.5% 107.2% 103.5% 106.3% 3.23 2.84 99.0% 4
Slide 21: Asset Quality by Market
Asset Quality by Market Credit quality in Malaysia and Singapore showed YoY improvement, while Indonesia saw an uptick in impaired loans Malaysia Singapore BII Group GIL NIL 0.45 2.21 2.19 0.42 0.43 0.42 2.15 2.00 2.98 2.81 1.77 1.69 2.53 2.46 1.48 0.29 0.30 0.29 0.29 0.28 2.18 2.15 1.29 1.35 1.29 0
Slide 22: Capital Adequacy: Mar 2014
Capital Adequacy: 31 Mar 2014 Total capital ratio at 15.11% (assuming 85% dividend reinvestment rate) and CET1 at 10.76% After proposed After proposed After proposed Before dividend, dividend, based on dividend, assuming proposed assuming 85% BNM’s Implementation 85% reinvestment dividend reinvestme
Slide 23: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 22 Resul
Slide 24: Market Outlook
Market Outlook Key trends and developments that will affect the banking industry in 2014 Outlook Key Trends and Developments • Improved export flow, also • Domestic demand to moderate due to slower because of lower base effect in growth in consumer spending 1H 2013, when exports shrank. A • Firmer e
Slide 25: Maybank Performance Outlook
Maybank Performance Outlook Loan and deposit growth to improve in second quarter Pockets of loan growth opportunities for 2Q in consumer, 1 SME and corporate segments 2 More robust deposit gathering in 2Q Improved fee income growth on the back of better deal 3 Pipeline but brokerage & loan related f
Slide 26: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 25 Resul
Slide 27: Community Financial Services (1/5)
Community Financial Services (1/5) Stronger growth in HNW and Affluent customer segments with the segment-led model HNW & Affluent Customer TFA grew 13.4% YoY with higher product cross sell ratio 137.3 Continued refinement of segment led model and 140.0 6.50 133.5 customer focused strategy have show
Slide 28: Community Financial Services (2/5)
Community Financial Services (2/5) Loan expanded by RM15.7 billion or 11.3% YoY Overall loans growth for CFS grew by 11.3% YoY to Consumer loans grew 12.1% YoY despite more intense RM154.5 billion competition and softer consumer market sentiments 130 17.2 17.2 17.2 154.5 124.9 151.9 17.1 17.1 17.1 1
Slide 29: Community Financial Services (3/5)
Community Financial Services (3/5) CFS deposit grew by 7.6% YoY due to growth in consumer as well as retail SME and business banking deposits Overall deposit growth for CFS grew by 7.6% YoY to Consumer Deposit grew higher by 9.4% YoY RM169.6 billion 172.9 130.0 19.0 19.0 19. 168.2 169.6 18.7 120.0 1
Slide 30: Community Financial Services (4/5)
Community Financial Services (4/5) Stronger Credit Asset Quality with continued decline in GIL GIL improved with reduction from 2.3% to 1.9% Consumer GIL rate declined from 0.7% to 0.5%, the despite a more difficult collection and recovery lowest in the industry environment in 1Q 2014 6.0 5,557.3 6,
Slide 31: Community Financial Services (5/5)
Community Financial Services (5/5) Maybank remains the market leader in 1Q 2014 Q1’14 MBB Q4’11 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q1’14 vs Rank^ Q1’13 Deposits Total Deposits 17.4% 17.1% 16.8% 17.7% 17.7% 18.5% 18.2% 1 Total Core Retail Deposits 18.1% 18.3% 18.3% 18.3% 18.7% 19.0% 19.0% 2 Retail CASA 23
Slide 32: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 31 Resul
Slide 33: Global Banking (1/5)
Global Banking (1/5) Corporate banking loans down 17.1% (ann.) for the 1Q FY2014 Total GB loans decreased by 17.1% (annualised) to RM68.6 Trade Finance market share ¹ billion but grew 7.9% YoY 27.1% RM billion 26.0% 25.6% 25.6% 36.0 +10.3% YoY Term Loan 34.9 23.7% 32.7 Mar 13 Jun 13 Sep 13 Dec 13 Fe
Slide 34: Global Banking (2/5)
Global Banking (2/5) Global Markets’ business regionally saw PBT growth of 7.1% YoY for 1Q FY2014 PBT and Revenue grew by 7.1% and 4.2% YoY respectively Group Securities Portfolio grew 18.8% YoY Net interest income +18.8% YoY Non-interest income 7.1% 96.5 102.3 4.2% 93.8 95.5 86.1 10.6 635 662 8.6 9
Slide 35: Global Banking (3/5)
Global Banking (3/5) Notable deals completed from January to March 2014 Malaysia Malaysia Malaysia Malaysia SapuraKencana TMC Sdn Bhd Perbadanan Tabung Pendidikan Syarikat Prasarana Negara Tinggi Nasional Berhad Armada Karen Pte Ltd RM16.5 billion Up to RM5 billion RM2 billion USD750 million MULTI-C
Slide 36: Global Banking (4/5)
Global Banking (4/5) Maybank Kim Eng’s 1Q FY2014 total income was RM253.7 mil 1Q FY2014 Total Income (RM mil) Total Income for Maybank Kim Eng declined 35.4% YoY Others, Hong Kong, RM14.3 (6%) RM16.1 (6%) -35.4% YoY Philippines, RM20.5 (8%) 392.5 Malaysia, Indonesia, RM101.0 (40%) RM Million RM5.1 (
Slide 37: Global Banking (5/5)
Global Banking (5/5) Maybank Kim Eng in line with GB’s target to be a leading ASEAN wholesale Bank Maybank Kim Eng led ASEAN Investment Banking and Advisory League Table for FY2013 League Table Industry Rank Market Share Deal Value (FY2013) by Value (%) (USD’Mil) Investment Banking & 1 8.9 25,272 Ad
Slide 38: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 37 Resul
Slide 39: Maybank Singapore (1/2)
Maybank Singapore (1/2) Loans growth at 5.3%, led by business loans growth of 5.9% and consumer loans growth of 3.9% Loans portfolio expanded by an annualised rate of Diversified Loan Portfolio 5.3% to reach S$31.3 billion as of Mar 2014, 5.3% annualised spurred by relatively strong growth in busi
Slide 40: Maybank Singapore (2/2)
Maybank Singapore (2/2) PBT rose 10.5% to S$111 million on higher fee based income of 14.6% and fund based income of 10.5% (SGD mil) 1Q FY2014 1Q FY2013 YoY Net Fund Based income 116.76 105.70 +10.5% Net Fee Based income 83.39 72.74 +14.6% Net income 200.16 178.44 +12.2% Overhead expenses 81.60 70.1
Slide 41: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 40 Resul
Slide 42: Bank Internasional Indonesia (1/3)
Bank Internasional Indonesia (1/3) 1Q FY14 Net Profit was lower by 39% YoY, due to NIM contraction & provisions for selected corporate accounts (IDR bil) 1Q FY14 1Q FY13 YoY 4Q FY13 QoQ Net Fund Based income 1,447 1,380 5% 1,461 (1)% Net Fee Based income 504 520 (3)% 583 (13)% Net income 1,952 1,900
Slide 43: Bank Internasional Indonesia (2/3)
Bank Internasional Indonesia (2/3) Loans and deposit growth declined by 3.1% (ann.) and 12.3% (ann.) respectively Loans composition (IDR trillion) (Consolidated) Net Interest Margin (Consolidated) 26.9% YoY -3.1% ann 102.1 101.3 5.73% 79.8 5.32% 5.20% 80.9 4.73% 35.8 36.7 28.3 29.3 35.3 36.1 27.1 27
Slide 44: Bank Internasional Indonesia (3/3)
Bank Internasional Indonesia (3/3) Higher profits due to improving operational efficiency despite tighter regulations Revenue and PBT (IDR billion) Unit Financing (’000 unit) (Stand alone) (Consolidated) +9.9% 374 366 124 324 +9.1% 113 298 90 83 +7.5% +12.2% 30 34 57 40 10 11 YTD Mar'13 YTD Mar'14 N
Slide 45: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 44 Resul
Slide 46: Islamic Banking (1/2)
Islamic Banking (1/2) Group Islamic Banking Income Maybank Islamic: Total Gross Financing grew by 14.2% (annualised) to RM90.0 bil RM million 1Q FY14 1Q FY13 YoY Growth Fund based income 731.5 475.3 53.9% 23% 14% Dec-13 Mar-14 Other operating income** 76.9 144.0 -46.6% 32% 23.8 22.5 21.5 22.2 Tot
Slide 47: Islamic Banking (2/2)
Islamic Banking (2/2) Maybank Islamic Market Share (Malaysia) Market Share 35.0% Mar-14 Dec-13 30.6% 30.7% Automobile financing 35.8% 34.9% 28.9% 30.0% 28.1% Home Financing 23.5% 23.1% 26.2% 26.8% Term financing 27.6% 27.4% 25.0% 23.8% 24.1% 23.2% 22.5% 22.5% 20.0% 22.1% 15.0% Dec-12 Mar-13 Jun-13 S
Slide 48: Insurance and Takaful
Insurance and Takaful Gross Premium Life / Family (New Business) Market Share Single Prem ium - 48.7% Regular Premium +3.7% AIA Ins. & Tak. 17.5% GE Ins. & Tak. 14.6% No. 4 in Life/Family Credit Prem ium - 1.1% 1Q FY14 Prudential Ins. & Tak. 14.0% (New Business) Group Prem ium - 69.8% Etiqa Ins. & T
Slide 49: Maybank Philippines
Maybank Philippines PBT declined due to lower non interest income and higher overheads Key Highlights Revenue and PBT -0.9% YoY Revenue PBT decreased by 28.2% YoY for the 1Q FY2014 mainly due 944.0 935.9 PBT to lower non interest income (NOII) and higher overheads. NOII was down due to lower tra
Slide 50: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 26 2. Global Banking 32 3. Maybank Singapore 38 4. Bank Internasional Indonesia 41 5. Other segments 45 6. Affiliates 50 Financial 49 Resul
Slide 51: An Binh Bank
An Binh Bank PBT lower as investment and trading income was down Key Highlights Revenue and PBT PBT declined by 20.9% YoY for the 1Q FY2014 due to lower -3.7% YoY Revenue non-interest income of VND31.0 billion as investment and 386.1 371.7 PBT trading income was down. VND Bil Net interest income
Slide 52: MCB Bank
MCB Bank PBT declined due to higher overheads despite gross loans growth of 6.3% Key Highlights Revenue and PBT +5.8% YoY 12.9 Although revenue grew by 5.8% YoY, PBT for 1Q 12.2 FY2014 was down 3.4% owing to higher administrative -3.4% YoY expenses and lesser write-backs. 8.9 8.6 Gross loans was
Slide 53: Malayan Banking Berhad Investor Relations Contact
Humanising Financial Services Across Asia 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
Malayan Banking Berhad (Maybank) — Q1 FY2014 Earnings Presentation on 6ix