Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — H1 2024 Earnings Presentation

51 slides from Malayan Banking Bhd's earnings presentation, Aug 28, 2024

  1. Slide 1: Investor Presentation: Financial Results First Half FY2024

    Disclaimer: The contents of this document/information remain the intellectual property of Maybank and no part of this is to be reproduced or transmitted in any form or by any means, including electronically, photocopying, recording or in any information storage and retrieval system without the permi

  2. Slide 2: Table of Contents

    Table of Contents Executive Summary 2-11 1H FY2024 Financial Performance 13-19 Appendix: 1. Group Performance 21-39 2. Business/Country Performance 41-49

  3. Slide 3: 1H FY2024: Net Profit Rose 9.0% YoY to RM5.02 billion

    1H FY2024: Net Profit Rose 9.0% YoY to RM5.02 billion on Net Operating Income Growth of 9.4% to RM14.92 billion Income growth driven by core fees increase of 16.5%, improved insurance performance and higher treasury and markets income 1H FY2024 vs 1H FY2023 Net Operating Operating Cost-to- Pre-Provi

  4. Slide 4: 2Q FY2024: Net Profit Rose 1.7% QoQ to RM2.53 billion

    2Q FY2024: Net Profit Rose 1.7% QoQ to RM2.53 billion Return on Equity improved to 11.1% QoQ from 10.8%; NIM expanded 2bps from lower funding cost 2Q FY2024 vs 1Q FY2024 Net Operating Net Interest Operating Cost-to- Net Credit Net Return on Income Margin Cost income Ratio Charge Off Rate profit Equi

  5. Slide 5: 1H FY2024: Strong Loans Growth Supported by Good Deposit Growth

    1H FY2024: Strong Loans Growth Supported by Good Deposit Growth Strong loans growth of 10.4% Good deposit growth of 7.9% Healthy LLC and GIL Ratios across all home markets supported by CASA increase of 9.8% 30 Jun 2024 vs 30 Jun 2023 30 Jun 2024 vs 30 Jun 2023 As at 30 Jun 2024 Group Group Loan Loss

  6. Slide 6: Rewarding Shareholders with Consistent Returns; Strong Capital Levels

    1H FY2024: Rewarding Shareholders with Consistent Returns; Strong Capital Levels Consistent interim dividend of 29 sen per share Strong capital position As at 30 Jun 2024 91.2% 84.5% 87.5%^ Dividend 77.4% 69.7% Payout Ratio 100% Current 63% 88% 100% Cash Component Dividend Yield CET1 Total 34% Capit

  7. Slide 7: Exceeded FY2025 Sustainable Finance Target

    Exceeded FY2025 Sustainable Finance Target; Continue to Demonstrate Leadership in Decarbonisation Journey Regionally Leading The Decarbonisation Transition Journey Industry-Wide Sustainable Finance 1H’24 Achievement: RM14.76 bil FY2024 Target: RM34.2 bil White paper announced in May’24 with 2030 Joi

  8. Slide 8: M25+ Progress Across All Customer Segments

    1H FY2024: M25+ Continues To Make Good Progress Across All Customer Segments Focus Area: Progress (as at Jun’24): • Expand 15.10 12.85 14.35 13.10 12.78 Increase in loans originated via Home2u (YTD homeownership 10.44 >100% Jun’23: RM8.7 bil vs YTD Jun’24: RM20.5 bil) ecosystem through 2.91 11.90 To

  9. Slide 9: M25+ Progress Across All Sectors in Home Markets

    1H FY2024: M25+ Continues To Make Good Progress Across All Sectors in Home Markets Focus Area: Progress (1H’23 vs 1H’24): SP13 Rise in wealth AUM (x-deposits) from RM62.6 bil to RM71.6 bil driven by an 14% expanded customer base from 1.17 mil to 1.22 mil customers Group Wealth • Powered by wealth ma

  10. Slide 10: M25+ Progress Through Agile Ways of Working

    1H FY2024: M25+ Continues To Make Good Progress Through Agile Ways of Working Adoption and Hyper-Personalisation Initiatives Focus Area: Progress (2Q’23 vs 2Q’24): SP1 • Set-up focused squad team MY mid-market growth Supercharge with credit, coverage and Growth in total deals pipeline from RM6.6 bil

  11. Slide 11: 2024: Stable Economic and Loans Growth Across Home Markets

    2024: Stable Economic and Loans Growth Across Home Markets Malaysia Singapore Indonesia 2024 Forecast (f) Previous (f) Current (f) (f) Change 2024 Forecast (f) Previous (f) Current (f) (f) Change 2024 Forecast (f) Previous (f) Current (f) (f) Change GDP 4.7% 5.2%  GDP 2.4% 3.0%  GDP 5.1% 5.1% - Sy

  12. Slide 12: FY2024: Focus on Revenue Uplift and AQ Preservation

    FY2024: Focus on Revenue Uplift and AQ Preservation; Drive Stronger M25+ Momentum Leveraging Targeted Investments • Focus on growth opportunities across Group CFS, Group GB and Group Insurance & Takaful within the ASEAN franchise: o Double down on mortgage, RSME and SME+ portfolios across universal

  13. Slide 13: Table of Contents

    Table of Contents Executive Summary 2-11 1H FY2024 Financial Performance 13-19 Appendix: 1. Group Performance 21-39 2. Business/Country Performance 41-49

  14. Slide 14: Net Fund Based Income Grew to RM9.77 billion

    Net Fund Based Income Grew to RM9.77 billion from RM9.62 billion; Strong Loans Growth of 10.4% Net Fund Based Income Key Drivers  1.5% YoY  1.9%  2.2% 2Q’24 vs 1Q’24 2Q’24 vs 2Q’23 • Group loans grew 10.4% YoY led by: RM billion 9.62 9.77 o 10.6% in MY 4.83 4.84 4.93 o 12.5% in SG Volume growth o

  15. Slide 15: Higher NOII of RM5.15 billion

    Higher NOII of RM5.15 billion driven by Improved Core Fees, Insurance Performance and Investment and Trading Income Non-Interest Income Key Drivers  (11.9)%  (2.9)%  28.4% YoY 2Q’24 vs 1Q’24 2Q’24 vs 2Q’23 • Core fees increased by 16.5% YoY, driven by higher wealth fees, loan-related 5.15 fees, b

  16. Slide 16: Group Insurance & Takaful PBT Rose 69.8%

    Overall Group Insurance & Takaful Profit Before Tax (PBT) Rose 69.8% Group Insurance & Takaful Key Drivers • 1HFY2024 PBT increased by 69.8% YoY, mainly driven by higher underwriting income from improved business growth in both Life and Family Takaful, and General Insurance and General Takaful PBT (

  17. Slide 17: Higher Cost on Personnel, IT and Revenue-Related Expenses

    Higher Cost on Personnel, IT and Revenue-Related Expenses CIR and Costs Key Drivers 46.8% 48.3% 48.9% 47.5% 48.6% • 1H FY2024 cost increase of 12.0% YoY mainly driven by: o 11.2% increase in personnel costs, which includes provisions  5.1%  12.0% YoY for collective agreements (CAs)  (1.7)% 2Q’24

  18. Slide 18: Healthy Liquidity Levels

    Healthy Liquidity Levels Liquidity Indicators Key Drivers LCR LDR NSFR Liquidity Position • Healthy Group liquidity indicators 140.7% 133.5% 127.2% 117.6% 118.4% • Group deposits grew 7.9% YoY led by Group CASA growth of 114.1% 9.8% 94.5% 92.3% 92.6% • By markets: o MY grew 9.2% (CASA: 10.3%) Group

  19. Slide 19: Improving Group GIL ratio; Management Overlay Maintained

    Improving Group GIL ratio; Management Overlay Maintained Loan ECL, NCC, and LLC Gross Impaired Loans (GIL) P&L ECL Jun 2023 Mar 2024 Jun 2024 (RM billion)  (18.5)%  (32.1)%  (7.9)% YoY 2Q’24 vs 1Q’24 2Q’24 vs 2Q’23 % RM billion % RM billion % RM billion Non Performing Loans 1.15% 6.98 1.07% 7.01

  20. Slide 20: Robust Capital Positions

    Robust Capital Positions Capital Ratios Key Drivers After proposed dividend • Capital ratios remain robust with Group CET1 capital ratio at 14.70% and Group total capital ratio at 18.02%, well above regulatory 18.56% 18.02% requirements Group 16.00% 15.33% • Credit RWA growths of 7.5% YoY and 6.1% Y

  21. Slide 21: Table of Contents

    Table of Contents Executive Summary 2-11 1H FY2024 Financial Performance 13-19 Appendix: 1. Group Performance 21-39 2. Business/Country Performance 41-49

  22. Slide 22: P&L Summary: 1H FY2024

    P&L Summary: 1H FY2024 1H 1H 2Q 1Q 2Q RM million YoY QoQ YoY FY2024 FY2023 FY2024 FY2024 FY2023 Net fund based income * 9,770.7 9,622.2 1.5% 4,930.9 4,839.8 1.9% 4,825.5 2.2% Non-interest income * 5,150.6 4,011.9 28.4% 2,413.0 2,737.5 (11.9)% 2,484.3 (2.9)% Net operating income 14,921.2 13,634.1 9.4

  23. Slide 23: Segmental Performance of Businesses: 1H FY2024 (1/2)

    Segmental Performance of Businesses: 1H FY2024 (1/2) Net Operating Income Group Global Banking  +12.1% 1H FY2023 1H FY2024  +9.4% 1H FY2023: 4,560 1H FY2024: 5,113 14,921 13,634  +10.2%  +9.0%  +35.8%  (6.4)%  +59.6% 8,063 8,887 RM million 3,944 4,299 564 766 593 947 52 49 Total Group Communi

  24. Slide 24: Segmental Performance of Businesses: 1H FY2024 (2/2)

    Segmental Performance of Businesses: 1H FY2024 (2/2) Net Fund Based Income 1H FY2023 1H FY2024 Group Global Banking  (7.5)% 1H FY2023: 2,697 1H FY2024: 2,494  +1.5%  +7.7% 9,622 9,771  (9.0)%  +14.1%  +1.6%  +2.9% RM million 6,763 6,278 2,526 2,299 168 192 2 2 839 864 Total Group Community Gr

  25. Slide 25: Group Non-Interest Income: 1H FY2024

    Group Non-Interest Income: 1H FY2024 1H 1H 2Q 1Q 2Q NOII (RM million) YoY QoQ YoY FY2024 FY2023 FY2024 FY2024 FY2023 Commission, service charges and fees 2,173 1,866  16.5% 1,087 1,086  0.1% 940  15.7% Commission 784 687  14.1% 399 385  3.8% 346  15.3% Service charges and fees 1,082 906  19.4

  26. Slide 26: International & Malaysia Portfolio Mix 1H FY2024

    International & Malaysia Portfolio Mix 1H FY2024 Net Operating Income Profit Before Tax Group Loans* 0.3% 5.4% 7.1% 1H FY2024 6.1% (Jan 24 – Jun 24) 8.7% 5.4% 25.1% Overseas: RM14.92 Overseas: RM6.89 Overseas: RM668.8 35.4% 20.6% billion 39.7% 27.2% 30.8% billion billion 60.3% 64.6% 69.2% Malaysia S

  27. Slide 27: Group Loans Growth: 30 June 2024

    Group Loans Growth: 30 June 2024 % of 30 Jun 31 Mar 31 Dec 30 Jun QoQ YTD Ann. YoY Portfolio 2024 2024 2023 2023 Group Loans 668.8 657.8  1.7% 640.8  8.8% 605.8  10.4% Malaysia (RM billion) 60% 401.9 393.6  2.1% 387.2  7.6% 363.3  10.6% Community Financial Services 77% 310.6 303.8  2.2% 298.3

  28. Slide 28: Malaysia Loans Growth: 30 June 2024

    Malaysia Loans Growth: 30 June 2024 RM billion % of Portfolio 30 Jun 2024 31 Mar 2024 QoQ 31 Dec 2023 YTD Ann. 30 Jun 2023 YoY Community Financial Services (reported) 77% 310.6 303.8  2.2% 298.3  8.2% 283.5  9.5% Community Financial Services (rebased)¹ 77% 310.6 303.8  2.2% 298.2  8.3% 283.5 

  29. Slide 29: Singapore Loans Growth: 30 June 2024

    Singapore Loans Growth: 30 June 2024 SGD billion % of Portfolio 30 Jun 2024 31 Mar 2024 QoQ 31 Dec 2023 YTD Ann. 30 Jun 2023 YoY Community Financial Services 53% 26.9 25.3  6.0% 25.1  14.4% 24.7  8.8% Consumer 37% 18.9 17.4  8.0% 17.3  18.4% 17.5  7.7% Housing Loan 26% 13.5 12.2  10.0% 12.0 

  30. Slide 30: Indonesia Loans Growth: 30 June 2024

    Indonesia Loans Growth: 30 June 2024 (Based on MBI’s reporting) % of IDR trillion 30 Jun 2024 31 Mar 2024 QoQ 31 Dec 2023 YTD Ann. 30 Jun 2023 YoY Portfolio Community Financial Services 62.9% 77.4 75.9  2.0% 74.3  8.4% 69.4  11.5% CFS Retail 35.7% 43.9 44.0  (0.1)% 43.5  2.1% 41.5  5.9% Auto L

  31. Slide 31: Group Deposits Growth: 30 June 2024

    Group Deposits Growth: 30 June 2024 % of Portfolio 30 Jun 2024 31 Mar 2024 QoQ 31 Dec 2023 YTD Ann. 30 Jun 2023 YoY Group Deposits 706.5 709.0  (0.4)% 696.8  2.8% 654.8  7.9% Total CASA 270.8 265.4  2.0% 257.3  10.4% 246.5  9.8% Total Fixed Deposits 327.7 328.0  (0.1)% 321.0  4.2% 328.2  (0

  32. Slide 32: LDR and CASA Ratio

    LDR and CASA Ratio Malaysia Group LDR CASA CASA (without IA) NSFR LCR 140.7% 137.4% 142.1% 133.5% 127.2% 117.6% 122.0% 116.8% 118.4% 114.1% 91.7% 90.0% 91.1% 89.9% 89.3% 92.3% 93.0% 91.7% 92.6% 94.5% 43.8% 45.4% 44.2% 38.6% 38.1% 42.7% 43.5% 37.7% 36.9% 37.3% 34.2% 35.3% 33.9% 34.7% 38.3% 40.2% 37.5

  33. Slide 33: RWA Optimisation and Funding Management

    RWA Optimisation and Funding Management Group Loans & Group RWA Funding Breakdown Operational RWA Market RWA Credit RWA Gross Loans Borrowings and Capital 668.8 Instruments by Currency 640.8 FI Deposits, 6% 605.8 458.3* Equity, 10% USD, 36% 440.9* 422.6* 52.0 50.3 Repo, 4% IDR, 5% 48.7 25.3 Borrowin

  34. Slide 34: Asset Quality

    Asset Quality Allowances for losses on loans GIL Ratio Composition P&L ECL 2Q 3Q 4Q 1Q 2Q 1H 1H Jun Sep Dec Mar Jun (RM million) FY2023 FY2023 FY2023 FY2024 FY2024 FY2023 FY2024 2023 2023 2023 2024 2024 Stage 1, net (73) (66) 59 72 (9) (160) 63 Non Performing Loans 1.15% 1.06% 1.00% 1.07% 1.01% (NPL

  35. Slide 35: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Consumer GIL Ratios Mortgage Auto Finance Credit Cards 0.99% 1.02% 0.92% 1.00% 5.41% 5.30% 0.82% 5.05% 4.99% 0.68% 4.84% 0.63% 1.32% 1.32% 0.51% 1.22% 1.09% 1.14% 0.44% 0.47% 0.52% 0.52% 0.58% 0.57% 1.24% 1.20% 0.51% 1.17% 1.02% 1.01% 0.65% 0.56% 0.6

  36. Slide 36: Specific Asset Exposures as at 30 June 2024

    Specific Asset Exposures as at 30 June 2024 Oil & Gas Loan and Fixed Income Securities Exposures Real Estate Loan Exposure to Non-Retail Borrowers to Non-Retail Malaysian Borrowers Country Exposure Borrowers’ Status 21.5% High Rise Residential RM28.8 billion 17.0% Landed Residential Malaysia 2.09% M

  37. Slide 37: Dividend: 1H FY2024

    Dividend: 1H FY2024 Full cash single-tier interim dividend of 29 sen per share Dividend Policy Min 40% 79.9% 78.5% 78.1% 78.5% 87.8% 91.2% 84.5% 87.5%^ 77.4% Dividend 76.5% 74.9% 74.7% 71.9% 76.3% 77.3% 69.7% Payout Ratio 100% 88% 100% 100% 67% 53% 63% 27% 20% 25% 19% 27% 34% Cash Component of 13% 1

  38. Slide 38: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million 1H FY2024 1H FY2023 YoY 2Q FY2024 1Q FY2024 QoQ 2Q FY2023 YoY Net interest income 864.0 839.4 2.9% 432.7 431.3 0.3% 428.7 0.9% Insurance/takaful service result 515.1 80.1 >100% 387.1 128.0 >100% 149.5 >100% Other operating income 975.1 5

  39. Slide 39: Key Operating Ratios

    Key Operating Ratios % 1H FY2024 1H FY2023 YoY 2Q FY2024 1Q FY2024 QoQ 2Q FY2023 YoY Return on Equity 3 11.0 10.9 0.1% 11.1 10.8 0.3% 11.1 0.0% Net Interest Margin 3 (bps) 2.01 2.16 (15) bps 2.02 2.00 2 bps 2.14 (12) bps Fee to Income Ratio 34.5 29.4 5.1% 32.9 36.1 (3.2)% 34.0 (1.1)% Loans-to-Deposi

  40. Slide 40: Overall Business and Financial Impact From Basel III Reform

    Overall Business and Financial Impact From Basel III Reform Implementation Approach and Impact: Business Perspective • May have impact on pricing and business product strategies, especially arising • Basel III Reform encompasses changes to credit, market, from output floor requirement, CVA and Marke

  41. Slide 41: Table of Contents

    Table of Contents Executive Summary 2-11 1H FY2024 Financial Performance 13-19 Appendix: 1. Group Performance 21-39 2. Business/Country Performance 41-49

  42. Slide 42: Market Share Overview for Community Financial Services Malaysia

    Market Share Overview for Community Financial Services Malaysia Market share Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Loans Total consumer 18.6% 18.7% 18.9% 19.0% 19.1% Auto (Retail Hire Purchase) 30.2% 30.1% 30.1% 29.8% 29.7% Total mortgage * 14.9% 15.1% 15.3% 15.5% 15.7% Credit cards ** 21.2% 21.6% 22.0

  43. Slide 43: Maintained Leadership Position in Digital Banking

    Maintained Leadership Position in Digital Banking with Strong Growth in Digital Payments Data as at Jun 2024 From Malaysia’s digital transaction volume Group (i.e.: MY, SG, ID, PH, KH) In Malaysia: SME Digital Financing approved loans since RM4.14 bil its launch in Sep’20 Mobile & Internet Mobile In

  44. Slide 44: Overview: Group Wealth Management & Group Securities Portfolios

    Overview: Group Wealth Management & Group Securities Portfolios Group Wealth Management Group Securities Portfolio Total Financial Assets grew 9.6% YoY to RM492.9 billion contributed by Group Securities Portfolio¹ grew 6.8% YoY growth in investments of 14.7% and loans of 16.1%  +6.8% YoY  +9.6% Yo

  45. Slide 45: Overview of Group Investment Banking Portfolio

    Overview of Group Investment Banking1 Portfolio 1H 2024 Total Income Breakdown by Country 1H 2024 Non-Interest Income for Malaysia Vietnam Hong Kong 9% 2% Arranger and Philippines upfront fees 1% 16% Indonesia 7% Malaysia Others 44% RM159.5m RM765.7m 9% Thailand 13% Brokerage Placement and related f

  46. Slide 46: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance1 Maybank Islamic: Total Financing2 grew 13.0% YoY to RM278.6 billion +19.6% Jun-23 Jun-24 RM million 1H FY2024 1H FY2023 YoY +6.2% +5.5% Total Income 4,272.1 3,599.1 18.7% 78.4 93.8 +23.1% Profit Before Tax and Zak

  47. Slide 47: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share1 Market Share by Key Products (Malaysia)1 30.0% 30.1% 30.3% 29.4% 29.3% 45.8% 27.2% 28.4% Automobile Home Term Financing Financing Financing 26.7% 27.0% 26.6% 26.1% 26.0% Jun-24 Jun-24 Jun-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23: 47.9%

  48. Slide 48: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Life & Family (New Business) Market Share (Malaysia) Net Adjusted Premium/Contribution Single Premium  203.2% 18.3% 16.8% 18.0% 18.5% Regular Premium  27.9% Credit Premium  38.4% 19.1% 19.5% 19.5% 18.3% No. 3 10.9% 12.3% 11.9% 13.3% in Life/Family Group

  49. Slide 49: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 1H FY2024 1H FY2023 YoY 2Q FY2024 1Q FY2024 QoQ Net fund based income 324.06 397.01 (18.4)% 163.27 160.80 1.5% Non-interest income 289.45 163.77 76.7% 145.83 143.62 1.5% Net income 613.51 560.77 9.4% 309.09 304.42 1.5% Overhead expenses (292.23) (251.31) 16

  50. Slide 50: Maybank Indonesia: P&L Summary and Financial Ratios

    Maybank Indonesia: P&L Summary and Financial Ratios 1H 1H 2Q 1Q IDR billion YoY QoQ Key Operating Ratios Jun 24 Dec 23 Jun 23 YoY FY2024 FY2023 FY2024 FY2024 Net Fund Based income 3,514 3,608 (2.6)% 1,760 1,753 0.4% Profitability & Efficiency Non-Interest income 820 1,095 (25.1)% 450 370 21.5% ROA 0

  51. Slide 51: Malayan Banking Berhad contact details

    MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the in

Malayan Banking Berhad (Maybank) — H1 2024 Earnings Presentation on 6ix