Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — 9M FY2024 Earnings Presentation

44 slides from Malayan Banking Bhd's earnings presentation, Nov 26, 2024

  1. Slide 1: Investor Presentation: Financial Results Nine Months 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 2-8 9M FY2024 Financial Performance 10-15 Appendix: 1. Group Performance 17-32 2. Business/Country Performance 34-42

  3. Slide 3: 9M FY2024: Net Profit Rose 8.5% YoY to RM7.56 billion

    9M FY2024: Net Profit Rose 8.5% YoY to RM7.56 billion on Net Operating Income Growth of 8.7% to RM22.15 billion 9M FY2024 vs 9M FY2023 3Q FY2024 vs 3Q FY2023 9M FY2024 Performance Highlights Net Operating Net Interest Net Operating Net Interest Income Income Margin Income Margin  Net fund-based inc

  4. Slide 4: As at 30 Sept 2024: Strong Provision Coverage, Liquidity and Capital

    As at 30 Sept 2024: Strong Provision Coverage, Liquidity and Capital As at 30 Sept 2024 Performance Highlights Loan Loss Coverage Group CASA Group Total Asset Quality Ratio (LLC) Ratio Capital Ratio  Healthy LLC ratio of 125.8%; GIL ratio improved to 1.26% on recoveries 125.8% 36.2% 17.90% and writ

  5. Slide 5: Surpassed RM100 Billion in Sustainable Finance

    Surpassed RM100 Billion in Sustainable Finance; Continue to Lead Region’s Transition to a Low-Carbon Economy Advancing Transition Finance and Recognised for Sustainability Excellence Sustainable Finance 9M’24 Achievement: RM36.41 bil Served as the Sustainability Framework Recognised in TIME’s World’

  6. Slide 6: M25+ Initiatives Driving Income Uplift Across Segments

    9M FY2024: M25+ Initiatives Driving Income Uplift as Higher Fee Income Recognised Across Segments Including Insurance and Wealth Management Data as of YTD Sep’24 vs YTD Sep’23: SP2 Elevating Regional Transaction Banking Proposition Digital onboarding penetration growth in Malaysia 32p.p. 843 out of

  7. Slide 7: M25+ Initiatives Driving Income Uplift: Group Wealth

    9M FY2024: M25+ Initiatives Driving Income Uplift as Higher Fee Income Recognised Across Segments Including Insurance and Wealth Management SP13 Group Wealth Data as of YTD Sep’24 vs YTD Sep’23: 12% Wealth AUM rise (x-deposits) driven by an expanded customer base 26.0% YoY Growth in NOII Supercharge

  8. Slide 8: M25+ Initiatives: Balance Sheet Origination and Customer Penetration

    9M FY2024: M25+ Initiatives Driving Income Uplift, with Higher Balance Sheet Origination and Deeper Customer Penetration SP1 Supercharge Global Banking’s Mid-Market Growth Data as of YTD Sep’24 vs YTD Sep’23: Growth in total deal size pipeline to RM35.5 bil from RM18.1 bil¹: Set up focused team with

  9. Slide 9: 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 5.2% 5.2% - GDP 3.0% 3.5%  GDP 5.1% 5.1% - Sy

  10. Slide 10: Table of Contents

    Table of Contents Executive Summary 2-8 9M FY2024 Financial Performance 10-15 Appendix: 1. Group Performance 17-32 2. Business/Country Performance 34-42

  11. Slide 11: Net Fund Based Income Grew to RM14.66 billion

    Net Fund Based Income Grew to RM14.66 billion from RM14.44 billion; YTD Ann. Loans Growth of 4.8% Affected by Strengthening Ringgit Net Fund Based Income Net Interest Margin (NIM)* QoQ (Ann.) Trend  (0.9)%  1.5%  1.5% YoY 3Q’24 vs 2Q’24 3Q’24 vs 3Q’23 2.13% 2.09% 2.03% 2.06% 2.03% 3Q'23 4Q'23 1Q'

  12. Slide 12: Higher NOII of RM7.49 billion Driven by Core Fees and Insurance

    Higher NOII of RM7.49 billion Driven by Improved Core Fees and Insurance Performance Non-Interest Income Breakdown of Core Fees  (3.0)%  20.9%  26.0% YoY 3Q’24 vs 2Q’24 3Q’24 vs 3Q’23 7.49 5.95 0.13 3Q FY2024 3Q FY2024 9M FY2024 0.31 % change 2.41 0.16 (QoQ) (YoY) (YoY) 2.34 1.94 0.16 3.86 3.72 W

  13. Slide 13: Group Insurance & Takaful PBT Rose 56.6%

    Overall Group Insurance & Takaful Profit Before Tax (PBT) Rose 56.6% Group Insurance & Takaful Key Drivers • PBT increase driven by higher underwriting income from improved business growth in both Life and Family Takaful, and General Insurance and General Takaful businesses, aligned to PBT (RM milli

  14. Slide 14: Higher Cost on Personnel, IT and Revenue-Related Expenses

    Higher Cost on Personnel, IT and Revenue-Related Expenses CIR and Costs 48.8% 48.9% 48.7% 47.9% 48.6% M25+ related spend  (2.0)%  6.8%  10.3% YoY as at 9M FY2024 3Q’24 vs 2Q’24 3Q’24 vs 3Q’23 10.77 (RM million) 9.77 Total 308.6 2.22 3.59 3.52 2.10 0.44 Opex is: 67% 3.30 0.39 1.77 0.80 0.64 1.61 0

  15. Slide 15: Healthy Liquidity and Capital Positions

    Healthy Liquidity and Capital Positions Liquidity Indicators Capital Ratios 137.4% 133.5% 132.3% Group Bank LCR 116.8% 114.1% 114.1% LDR 94.5% 18.56% 17.90% 17.36% 93.0% 93.8% NSFR 16.99% Sep 23 Jun 24 Sep 24 16.00% 15.10% 14.93% 14.03% 15.34% 14.72% 14.21% 13.80% Deposits YTD Ann. Growth Group Mala

  16. Slide 16: Improving Group GIL Ratio; Management Overlay Maintained

    Improving Group GIL Ratio; Management Overlay Maintained Loan ECL, NCC, and LLC Gross Impaired Loans (GIL) Group GIL Volume and Ratio Country GIL Volume and Ratio P&L ECL 4.45% 4.18% 4.15% (RM billion)  (1.2)%  (14.4)% Group GIL ratio  (10.0)% YoY 3Q’24 vs 2Q’24 3Q’24 vs 3Q’23 1.30% 1.43% 1.29% 1

  17. Slide 17: Table of Contents

    Table of Contents Executive Summary 2-8 9M FY2024 Financial Performance 10-15 Appendix: 1. Group Performance 17-32 2. Business/Country Performance 34-42

  18. Slide 18: P&L Summary: 9M FY2024

    P&L Summary: 9M FY2024 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2024 FY2023 FY2024 FY2024 FY2023 Net fund based income * 14,659.1 14,436.5 1.5% 4,888.5 4,930.9 (0.9)% 4,814.3 1.5% Non-interest income * 7,491.3 5,947.7 26.0% 2,340.8 2,413.0 (3.0)% 1,935.8 20.9% Net operating income 22,150.5 20,384.2 8

  19. Slide 19: Group Non-Interest Income: 9M FY2024

    Group Non-Interest Income: 9M FY2024 9M 9M 3Q 2Q 3Q NOII (RM million) YoY QoQ YoY FY2024 FY2023 FY2024 FY2024 FY2023 Commission, service charges and fees 3,331 2,936  13.4% 1,157 1,087  6.4% 1,071  8.0% Commission 1,187 1,042  13.9% 403 399  1.0% 355  13.5% Service charges and fees 1,635 1,484

  20. Slide 20: International & Malaysia Portfolio Mix 9M FY2024

    International & Malaysia Portfolio Mix 9M FY2024 Net Operating Income Profit Before Tax Group Loans* 2.1% 6.7% 6.7% 9M FY2024 6.5% (Jan 24 – Sep 24) 8.9% 5.1% 21.3% Overseas: RM22.2 Overseas: RM10.3 Overseas: RM663.8 20.0% 26.3% 35.4% billion 30.2% billion 38.1% billion 64.6% 61.9% 69.8% Malaysia Si

  21. Slide 21: Segmental Business Portfolio Mix 9M FY2024

    Segmental Business Portfolio Mix 9M FY2024 Net Operating Income Profit Before Tax Group Loans* 9M FY2024 5.4% 9.6% (Jan 24 – Sep 24) 33.7% 42.8% 34.6% RM22.2 RM10.3 RM663.8 billion billion billion 60.0% 47.6% 66.3% Group Community Financial Services Group Global Banking Group Insurance & Takaful 9M

  22. Slide 22: Group Loans Growth: 30 September 2024

    Group Loans Growth: 30 September 2024 % of 30 Sep 30 Jun 31 Dec 30 Sep QoQ YTD Ann. YoY Portfolio 2024 2024 2023 2023 Group Loans 663.8 668.8  (0.7)% 640.8  4.8% 617.0  7.6% Malaysia (RM billion) 62% 410.5 401.9  2.1% 387.2  8.0% 370.7  10.8% Community Financial Services 77% 317.9 310.6  2.3%

  23. Slide 23: Malaysia Loans Growth: 30 September 2024

    Malaysia Loans Growth: 30 September 2024 RM billion % of Portfolio 30 Sep 2024 30 Jun 2024 QoQ 31 Dec 2023 YTD Ann. 30 Sep 2023 YoY Community Financial Services (reported) 77% 317.9 310.6  2.3% 298.3  8.8% 289.8  9.7% Community Financial Services (rebased)¹ 77% 317.9 310.6  2.3% 298.2  8.8% 289

  24. Slide 24: Singapore Loans Growth: 30 September 2024

    Singapore Loans Growth: 30 September 2024 SGD billion % of Portfolio 30 Sep 2024 30 Jun 2024 QoQ 31 Dec 2023 YTD Ann. 30 Sep 2023 YoY Community Financial Services 54% 28.2 26.9  5.0% 25.1  16.7% 25.1  12.5% Consumer 38% 19.9 18.9  5.5% 17.3  20.2% 17.6  13.4% Housing Loan 27% 14.3 13.5  6.1%

  25. Slide 25: Indonesia Loans Growth: 30 September 2024

    Indonesia Loans Growth: 30 September 2024 (Based on MBI’s reporting) % of IDR trillion 30 Sep 2024 30 Jun 2024 QoQ 31 Dec 2023 YTD Ann. 30 Sep 2023 YoY Portfolio Community Financial Services 65.2% 79.8 77.4  3.1% 74.3  9.9% 71.7  11.3% CFS Retail 36.7% 44.9 43.9  2.2% 43.5  4.4% 42.8  5.0% Aut

  26. Slide 26: Group Deposits Growth: 30 September 2024

    Group Deposits Growth: 30 September 2024 % of Portfolio 30 Sep 2024 30 Jun 2024 QoQ 31 Dec 2023 YTD Ann. 30 Sep 2023 YoY Group Deposits 706.2 706.5  (0.0)% 696.8  1.8% 661.8  6.7% Total CASA 256.0 269.5  (5.0)% 256.5  (0.3)% 254.5  0.6% Total Fixed Deposits 344.8 350.3  (1.6)% 347.7  (1.1)%

  27. Slide 27: LDR and CASA Ratio

    LDR and CASA Ratio Malaysia Group LDR CASA CASA (without IA) NSFR LCR 137.4% 142.1% 133.5% 132.3% 127.2% 122.0% 116.8% 118.4% 114.1% 114.1% 91.7% 90.0% 91.1% 91.1% 89.3% 94.5% 93.8% 93.0% 91.7% 92.6% 45.4% 44.2% 38.5% 38.1% 36.2% 42.7% 43.5% 41.2% 36.8% 37.3% 35.2% 33.9% 34.7% 33.6% 32.8% Sep 2023 D

  28. Slide 28: 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 663.8 Instruments by Currency 640.8 FI Deposits, 6% 617.0 Equity, 10% USD, 33% 440.9* 440.6* 428.5* 50.3 46.5 Repo, 3% 49.7 IDR, 5% 20.4 Borrowin

  29. Slide 29: Asset Quality

    Asset Quality Allowances for losses on loans GIL Ratio Composition P&L ECL 3Q 4Q 1Q 2Q 3Q 9M 9M Sep Dec Mar Jun Sep (RM million) FY2023 FY2023 FY2024 FY2024 FY2024 FY2023 FY2024 2023 2023 2024 2024 2024 Stage 1, net (66) 59 72 (9) (78) (226) (15) Non Performing Loans 1.06% 1.00% 1.07% 1.01% 0.99% (N

  30. Slide 30: 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 1.02% 0.92% 1.00% 0.89% 5.30% 0.82% 5.05% 4.99% 4.84% 4.53% 0.68% 0.70% 1.32% 0.63% 1.22% 0.51% 1.09% 1.14% 1.19% 0.47% 0.58% 0.57% 0.59% 1.20% 0.51% 0.52% 1.17% 1.02% 1.01% 1.10% 0.56% 0.65% 0.5

  31. Slide 31: Specific Asset Exposures as at 30 September 2024

    Specific Asset Exposures as at 30 September 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 20.2% High Rise Residential RM29.6 billion 15.3% Landed Residential Malaysia 1.

  32. Slide 32: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million 9M FY2024 9M FY2023 YoY 3Q FY2024 2Q FY2024 QoQ 3Q FY2023 YoY Net interest income 1,296.1 1,282.3 1.1% 432.1 432.7 (0.1)% 442.8 (2.4)% Insurance/takaful service result 679.4 111.0 >100% 164.3 387.1 (57.6)% 30.9 >100% Other operating inco

  33. Slide 33: Key Operating Ratios

    Key Operating Ratios % 9M FY2024 9M FY2023 YoY 3Q FY2024 2Q FY2024 QoQ 3Q FY2023 YoY Return on Equity 3 11.1 10.7 0.4% 11.2 11.1 0.1% 10.9 0.3% Net Interest Margin 3, 4 (bps) 2.04 2.18 (14) bps 2.03 2.06 (3) bps 2.13 (10) bps Fee to Income Ratio 33.8 29.2 4.6% 32.4 32.9 (0.5)% 28.8 3.6% Loans-to-Dep

  34. Slide 34: Table of Contents

    Table of Contents Executive Summary 2-8 9M FY2024 Financial Performance 10-15 Appendix: 1. Group Performance 17-32 2. Business/Country Performance 34-42

  35. Slide 35: Market Share Overview for Community Financial Services Malaysia

    Market Share Overview for Community Financial Services Malaysia Market share Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Loans Total consumer 18.7% 18.9% 19.0% 19.1% 19.2% Auto (Retail Hire Purchase) 30.1% 30.1% 29.8% 29.7% 29.6% Total mortgage * 15.1% 15.3% 15.5% 15.7% 15.9% Credit cards ** 21.6% 22.0% 21.8

  36. Slide 36: Maintained Leadership Position in Digital Banking

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

  37. Slide 37: Overview: Group Wealth Management & Group Securities Portfolios

    Overview: Group Wealth Management & Group Securities Portfolios Group Wealth Management Group Securities Portfolio Total Financial Assets grew 8.7% YoY to RM497.6 billion contributed by Group Securities Portfolio¹ grew 0.7% YoY growth in investments of 12.0% and loans of 17.6%  +8.7% YoY 271.6 270.

  38. Slide 38: Overview of Group Investment Banking Portfolio

    Overview of Group Investment Banking1 Portfolio 9M 2024 Total Income Breakdown by Country 9M 2024 Non-Interest Income for Malaysia Vietnam Hong Kong 7% Arranger and 2% upfront fees Phillipines 12% 1% Indonesia 6% Others 12% Malaysia 45% RM248.8m Thailand RM1,184.7m Placement and 14% related fees 6%

  39. Slide 39: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance1 Maybank Islamic: Total Financing2 grew 13.9% YoY to RM287.2 billion +19.7% Sep-23 Sep-24 RM million 9M FY2024 9M FY2023 YoY +4.7% +6.0% Total Income 6,411.2 5,479.6 17.0% 81.9 98.0 +25.2% Profit Before Tax and Zak

  40. Slide 40: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share1 Market Share by Key Products (Malaysia)1 30.3% 30.8% 30.0% 30.1% 29.3% 45.4% 27.6% 29.2% Automobile Home Term 27.9% Financing Financing Financing 26.7% 27.0% 26.6% Sep-24 Sep-24 Sep-24 26.0% Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23: 47.7%

  41. Slide 41: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Life & Family (New Business) Market Share (Malaysia) Net Adjusted Premium/Contribution Single Premium 92.6% 19.6% 19.3% 19.4% 19.0% Regular Premium  25.6% 16.5% 16.8% 18.5% 16.0% Credit Premium  20.2% 11.3% 12.6% 11.6% 14.3% No. 3 12.5% 11.9% 11.6% 11.6

  42. Slide 42: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 9M FY2024 9M FY2023 YoY 3Q FY2024 2Q FY2024 QoQ Net fund based income 492.66 574.57 (14.3)% 168.59 163.27 3.3% Non-interest income 458.11 290.66 57.6% 164.26 147.99 11.0% Net income 950.77 865.23 9.9% 332.85 311.26 6.9% Overhead expenses (460.80) (390.98) 1

  43. Slide 43: Maybank Indonesia: P&L Summary and Financial Ratios

    Maybank Indonesia: P&L Summary and Financial Ratios 9M 9M 3Q 2Q IDR billion YoY QoQ Key Operating Ratios Sep 24 Dec 23 Sep 23 YoY FY2024 FY2023 FY2024 FY2024 Net Fund Based income 5,329 5,408 (1.5)% 1,815 1,760 3.1% Profitability & Efficiency Non-Interest income 1,427 1,431 (0.3)% 607 450 35.0% ROA

  44. Slide 44: Malayan Banking Berhad

    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

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