Alliance Bank Malaysia Bhd. · MYX:ABMB
Alliance Bank Malaysia Bhd — FY2024 Earnings Presentation
34 slides from Alliance Bank Malaysia Bhd's earnings presentation, May 30, 2024
Slide 1: Analyst Briefing FY2024
Analyst Briefing FY2024 30 May 2024 < Title of Presentation > < by> < Date/Status >
Slide 2: Contents
Contents 1 FY24 Financial Performance ▪ Revenue & Profitability ▪ Assets & Liabilities ▪ Effective Risk Management 2 Going Forward ▪ Group Strategy: ACCELER8 2027 Update ▪ Sustainability ▪ Key takeaways 3 Appendix: Financial Results ▪ 4QFY24 & FY24 results ▪ Financial ratios 30-May-24 FY2024 ABMB An
Slide 3: ACCELER8 2027: FY24 in review
ACCELER8 2027: FY24 in review Launched new 5 Multiple partnerships A Opened B Won >35 1 strategic plan: across FY to drive 8• Refreshed our branding (Oct’23): new awards in Acceler8 2027 sustainability agenda ‘The Bank for Life’ Saradise, FY24, e.g. - 8 Pillars of 3 Begin - Bursa CSI-Mah Sing Supply
Slide 4: FY24 Performance Highlights
Executive Summary FY24 Performance Highlights 1 Revenue & ▪ Revenue grew 5.2% y-o-y to RM2.02 billion Profitability ▪ Net interest income grew 4.1% y-o-y ➢ Net interest margin at 2.48% ▪ Non-interest income grew 12.4% y-o-y ➢ Wealth management (+31.0% y-o-y) ➢ FX sales/trade fees (+15.2% y-o-y) & ba
Slide 5: NPAT grew 1.9% y-o-y to RM690.5 million
Revenue & Profitability NPAT grew 1.9% y-o-y to RM690.5 million FY23 FY24 Y-o-Y Change (Better / (Worse) Income Statement RM mil RM mil RM mil % Net Interest Income 1,652.7 1,720.1 67.5 4.1% Non-Interest Income (excl. brokerage^) 260.9 300.2 39.3 15.1% Brokerage^ 6.2 0.1 (6.1) (98.9%) Total Revenue
Slide 6: Net interest income grew 4.1% y-o-y
Revenue & Net interest income grew 4.1% y-o-y Profitability Net Interest Income Net Interest Margin Trend RM mil +4.1% 2.64% y-o-y 1,720.1 2.53% 1,652.7 2.48% -16bps 1,480.2 1,323.5 1,360.9 YoY 2.37% 2.30% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Y-o-Y impact: driven by higher volume & OPR
Slide 7: Non-interest income grew 12.4%
Revenue & Non-interest income grew 12.4% Profitability ▪ Non-interest income (excluding brokerage^): +15.1% y-o-y ➢ Wealth management (+31.0% y-o-y) ➢ FX sales & trade fees (+15.2% y-o-y) and Banking services fees (+10.9% y-o-y) ▪ Treasury & investment income: (-RM20.6 million y-o-y) mainly due to l
Slide 8: Cost to Income Ratio at 48.2%
Revenue & Cost to Income Ratio at 48.2% Profitability Operating Expenses (OPEX) a) Operating expenses up 10.5% y-o-y: RM mil OPEX CIR RM mil 9% of increase 11% of 19% of 8% of increase from increments increase increase from collection due to collective from IT from marketing agency fees, agreement;
Slide 9: Net credit cost at 25.8 bps
Effective Risk Net credit cost at 25.8 bps Management Net Credit Cost a) Net credit cost at 25.8 bps mainly from: ➢ BAU ECL net charge of 60.6 bps, offset by ➢ Management overlays net write-back of 34.8 bps bps -6.1bps b) Net credit cost: -6.1 bps y-o-y y-o-y 31.9 bps (below 25.8 guidance) +18.1 -14
Slide 10: Gross impaired loans ratio improved y-o-y to 2.11%
Effective Risk Gross impaired loans ratio improved y-o-y to 2.11% Management Gross Impaired Loans (GIL) SME GIL (RM mil) GIL ratio (%) 30+ dpd (%) RM mil Total GIL ABMB GIL ratio 2.2% 2.1% 1.9% 2.0% 1.8% 1.7% 1.8% 1.7% 1.7% 1.9% 2.51% 2.63% 2.51% 2.33% 2.11% 219 234 232 244 276 67% secured, balance
Slide 11: GIL ratio: Consumer Segment
Effective Risk GIL ratio: Consumer Segment Management Classic Mortgage Personal Financing GIL (RM mil) GIL ratio (%) 30+ dpd (%) GIL (RM mil) GIL ratio (%) 30+ dpd (%) 2.1% 2.3% 2.4% 2.4% 2.0% 5.1% 5.6% 5.1% 4.8% 4.8% 1.6% 1.7% 1.6% 1.5% 1.3% 1.9% 2.0% 1.6% 1.7% 1.4% 232 242 241 230 202 49 52 44 51
Slide 12: Strong loans growth, supported by funding
Assets & Strong loans growth, supported by funding Liabilities Gross Loans Customer Deposits RM bil +13.6% Y-o-Y RM bil 41.9% y-o-y 55.7 41.6% CASA ratio 49.1 6.3 +13.0% Corporate 5.5 7.5 +13.8% +12.9% Y-o-Y y-o-y 57.4 Commercial 6.5 50.8 3.5 14.7 +15.8% Other deposits 4.4 SME 12.7 Fixed 30.0 +19.4%
Slide 13: Liquidity and capital position remain strong
Effective Risk Liquidity and capital position remain strong Management Liquidity: LCR, LFR & NSFR Capital Position CET 1 Tier 1 Total Capital Liquidity 161.9% 163.2% 154.3% 156.8% Coverage 149.9% Ratio (LCR) 18.7% 16.8% Net Stable 115.7% 116.4% 117.3% 115.9% 14.6% 113.7% Earnings Funding Ratio 13.2%
Slide 14: FY24 dividend payout at 50%
Key Results FY24 dividend payout at 50% Dividend and Payout Ratio Net Assets per Share RM mil RM Total Dividend Paid Dividend Payout Ratio 4-year CAGR: +4.6% growth 50% 50% 50% 4.63 25% 4.36 22% 4.04 4.14 340.6 345.2 3.87 286.4 92.9 89.6 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 a) Declared
Slide 15: Contents
Contents 1 FY24 Financial Performance ▪ Revenue & Profitability ▪ Assets & Liabilities ▪ Effective Risk Management 2 Going Forward ▪ Group Strategy: ACCELER8 2027 Update ▪ Sustainability ▪ Key takeaways 3 Appendix: Financial Results ▪ 4QFY24 & FY24 results ▪ Financial ratios 30-May-24 FY2024 ABMB An
Slide 16: ACCELER8 2027: FY24 Key Success Metrics (1/2)
Group Strategy: ACCELER8 2027: FY24 Key Success Metrics (1/2) Acceler8 2027 1 Continue velocity on SME expansion 3 Broaden consumer business, targeting strategy attractive segments SME* YoY Loan Growth Consumer YoY Loan Growth Target: Surpass Target: Maintain previous year’s *Based on BNM SME Defini
Slide 17: ACCELER8 2027: FY24 Key Success Metrics (2/2)
Group Strategy: ACCELER8 2027: FY24 Key Success Metrics (2/2) Acceler8 2027 5 Become regional champion for selected 7 Accelerate Islamic business, leveraging economic corridors unique propositions Regional YoY Growth (Sarawak and Penang) AIS YoY Financing Growth Target: Surpass FY22 Target: Surpass
Slide 18: Accelerated loans growth ahead of industry and regained market share
Group Strategy: Accelerated loans growth ahead of industry and Acceler8 2027 regained market share Regained lost in market share since FY17 within 1 year ABG loan market share (%) 2.56% 2.58% 2.51% 2.49% 2.45% 2.38% 2.41% 2.38% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Launch of Acceler8 in Jan-23 Con
Slide 19: Refining ACCELER8 2027
Group Strategy: Refining ACCELER8 2027 Acceler8 2027 Vision: The Preferred Banking Partner Mission: Building Alliances to Improve Lives FY27 AMBITIONS Financials Best in class Top • Top quartile ROE (>11%) • Loans growth above industry (8-10%) Solid ESG customer employer • Target C:I 45% • Maintain
Slide 20: FY25 Acceler8 2027 Key Success Metrics
Group Strategy: Acceler8 2027 FY25 Acceler8 2027 Key Success Metrics 1 Continue acquisition 2 Intensify focus on 3 Continue to drive momentum deepening relationship incremental Islamic with target customer franchise growth segments • Improve customer targeting • Focus on target segment / sector • Ex
Slide 21: Achievement
Sustainability We have early achieved Topline Goal 1, and made significant progress towards realizing Topline Goals Grow our new Help customers adopt Reduce the Bank’s 1 sustainable banking business 2 sustainable lifestyles and business practices 3 greenhouse gas (GHG) emissions footprint Cumulative
Slide 22: Key Takeaways for FY24
Summary Key Takeaways for FY24 ▪ Business growth: ➢ Strong loans growth momentum (13.6% y-o-y) FY24 FY24 driven by all segments. Guidance Actual ➢ NTB customer acquisition: 1k SMEs per month & (Revised) about 9k Consumers per month (on average). ➢ Treasury assets grew 16.7% y-o-y. Gross Loans 8% - 1
Slide 23: Key Outlook for the Year
Summary Key Outlook for the Year ▪ Economic outlook: FY24 FY25 ➢ GDP expected between 4% to 5% (1Q’24: 4.2%). Actual Guidance ➢ Maintain cautiously optimistic outlook: o monetary policy conducive to sustainable growth Gross 13.6% 8 - 10% o resilient domestic demand with promising FDI Loans o Uncerta
Slide 24: Contents
Contents 1 FY24 Financial Performance ▪ Revenue & Profitability ▪ Assets & Liabilities ▪ Effective Risk Management 2 Going Forward ▪ Group Strategy: ACCELER8 2027 Update ▪ Sustainability ▪ Key takeaways 3 Appendix: Financial Results ▪ 4QFY24 & FY24 results ▪ Financial ratios 30-May-24 FY2024 ABMB An
Slide 25: 4QFY24 NPAT grew 36.6% y-o-y to RM177.7 million
Key Highlights: 4QFY24 NPAT grew 36.6% y-o-y to RM177.7 million Financial Performance Net Interest Income & Non Interest Income & Revenue Islamic Net Financing Income NOII Ratio RM mil RM mil RM mil Client Based Non Client Based 528.1 509.9 516.2 NOII Ratio 468.6 466.3 429.8 442.3 446.7 401.2 401.4
Slide 26: Q-o-Q Income Statement
4Q FY2024: Q-o-Q Income Statement Q-o-Q Change ▪ Revenue grew by RM6.3 mil or 1.2% q-o-q 3QFY24 4QFY24 Better / (Worse) due to: Income Statement RM mil RM mil ➢ Net interest income: +RM4.4mil or 1.0% RM mil % q-o-q mainly due to higher loans volume. Net Interest Income 333.8 342.8 ➢ Non-interest inc
Slide 27: FY24 NPAT grew 1.9% y-o-y to RM690.5 million
Key Highlights Y-o-Y: FY24 NPAT grew 1.9% y-o-y to RM690.5 million Financial Performance Net Interest Income & Non Interest Income & Revenue Islamic Net Financing Income NOII Ratio RM mil RM mil RM mil Client Based Non Client Based NOII Ratio 1,919.8 2,020.5 1,652.7 1,720.1 14.4% 14.9% 13.5% 13.9% 3
Slide 28: Y-o-Y Income Statement 4QFY24
4Q FY2024: Y-o-Y Income Statement Y-o-Y Change ▪ Revenue grew by RM47.6 mil or 10.1% y-o-y 4QFY23 4QFY24 Better / (Worse) due to: Income Statement RM mil RM mil ➢ Net interest income: +RM45.5mil or 11.3%, RM mil % from higher loans volume and OPR hikes. Net Interest Income 302.7 342.8 ➢ Non-interest
Slide 29: Y-o-Y Income Statement FY2024
FY2024: Y-o-Y Income Statement Y-o-Y Change ▪ Revenue grew by RM100.6 mil or 5.2% y-o-y FY23 FY24 Better / (Worse) due to: Income Statement RM mil RM mil ➢ Net interest income: +RM67.5mil or 4.1%, RM mil % from higher loans volume and OPR hikes. Net Interest Income 1,230.1 1,309.6 ➢ Non-interest inc
Slide 30: Q-o-Q Summarised Balance Sheet
Q-o-Q Summarised Balance Sheet Q-o-Q Change ▪ Gross loans grew by 4.5% q-o-q: Dec 23 Mar 24 Balance Sheet RM bil RM bil RM bil % ➢ SME loans: +5.4% q-o-q mainly from Term Loans; Total Assets 73.3 76.9 3.6 4.9% ➢ Commercial loans: +5.0% q-o-q mainly Treasury Assets* 14.0 14.4 0.5 3.5% due to higher d
Slide 31: Y-o-Y Summarised Balance Sheet
Y-o-Y Summarised Balance Sheet Y-o-Y Change ▪ Gross loans grew by 13.6% y-o-y: Mar 23 Mar 24 Balance Sheet ➢ SME loans: +15.8% y-o-y mainly from RM bil RM bil RM bil % Term Loans; Total Assets 66.3 76.9 10.6 16.0% ➢ Commercial loans: +13.8% y-o-y Treasury Assets* 12.4 14.4 2.1 16.7% mainly due to hi
Slide 32: Key Financial Ratios
Key Financial Ratios Financial Ratios 4QFY23 3QFY24 4QFY24 FY23 FY24 Return on Equity 8.2% 10.4% 10.5% 10.5% 10.2% Shareholder Earnings per Share 8.4sen 11.4sen 11.5sen 43.8sen 44.6sen Value Net Assets per Share RM4.36 RM4.51 RM4.63 RM4.36 RM4.63 Net Interest Margin 2.52% 2.49% 2.45% 2.64% 2.48% Eff
Slide 33: Thank You
THANK YOU Disclaimer: This presentation has been prepared by Alliance Bank Malaysia 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, expresse
Slide 34: Alliance Bank - The Bank for Life
ALLIANCE BANK THE BANK FOR LIFE”
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