Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — 9M FY2022 Earnings Presentation

51 slides from Malayan Banking Bhd's earnings presentation, Nov 23, 2022

  1. Slide 1: Investor Presentation: Nine Months FY2022 Financial Results

    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 2-9 9M FY2022 Financial Performance 11-19 Appendix: 1. Financial Performance 21-32 2. Community Financial Services 34-36 3. Global Banking 38-39 4. Maybank Singapore 41-42 5. Maybank Indonesia 44-45 6. Other Segments 47-49

  3. Slide 3: Maybank Group 3Q & 9M FY2022 Overview

    Maybank Group 3Q & 9M FY2022 Overview 3QFY2022 vs 2QFY2022 Net operating income rose 8.5% QoQ on higher net fee based income of 28.2% due to foreign exchange gains and lower MTM losses $ Business Income Drivers Improved on financial assets and investments while net fund based income grew 2.2% suppor

  4. Slide 4: Maybank Group 3Q & 9M FY2022 Overview cont'd

    Maybank Group 3Q & 9M FY2022 Overview cont’d 3QFY2022 vs 2QFY2022 3QFY2022 net impairment losses falls to RM841.3 million from Proactive Provisioning Maintained high of RM1.16 billion in 2QFY2022 (1QFY2022: RM597.1 million), which was pre-emptive in nature due to heightened external risks 9MFY2022 9

  5. Slide 5: Improving Relief Loan Trends As Economic Activity Normalises

    Improving Relief Loan Trends As Economic Activity Normalises % of Loans Under Repayment Assistance, Relief and R&R Programmes Against Respective Total Home Market Loans % of Outstanding Loan Balance^ 31/07/22 31/10/22 % of Outstanding Loan Balance^ 31/07/22 31/10/22 % of Outstanding Loan Balance^ 31

  6. Slide 6: M25+ Highlights

    M25+ Highlights Reinforce the Push for Differentiation and Focus Across Five Strategic Thrusts Refined Strategic Thrusts M25+ One-off investments over next 3 - 5 years 1 Full agile and iterative Minimum Viable Product Intensify Customer Centricity (MVP) approach, through customer journeys and imagin

  7. Slide 7: Exceeding FY2022 Sustainability Targets

    Exceeding FY2022 Sustainability Targets Well ahead in Commitment 1 and 2 annual targets on sustainable financing and uplifting our community Sustainable FY2025 target: Achieved: Finance RM50 bil ~RM29 bil FY2022(t):RM9 bil Key Highlights 9MFY2022 RM14.9bil Improving Lives Across ASEAN FY2025 target:

  8. Slide 8: Going Beyond Banking

    Going Beyond Banking Delivering Higher Value to Our Customers: Holistic Digital Ecosystem Solutions Home Buyer’s Journey Home Buyers Home Ownership Journey Maybank Home2U Current Current state Existing Future state to bank Discover Value added Future Property Listings Application Broadening ecosyste

  9. Slide 9: Market Outlook

    Market Outlook 2022 industry outlook for our home markets KEY INDICATORS OUTLOOK 2022 (f) 2021 • 3Q2022 GDP grew +14.2% YoY as full economic opening boosted domestic demand and > GDP 8.0% 3.1% strong rebound in export activities. Slower growth expected in 4Q 2022 and 2023 given > System loan 6.0% 4.

  10. Slide 10: Maybank Performance Outlook

    Maybank Performance Outlook Group’s Key Priorities and Guidance for FY2022 • Continued loan growth momentum across key business segments in home markets on economic reopening Income • Leverage fee-based income opportunities in wealth management, global markets, investment banking, asset Growth manag

  11. Slide 11: Table of Contents

    Table of Contents Executive Summary 2-9 9M FY2022 Financial Performance 11-19 Appendix: 1. Financial Performance 21-32 2. Community Financial Services 34-36 3. Global Banking 38-39 4. Maybank Singapore 41-42 5. Maybank Indonesia 44-45 6. Other Segments 47-49

  12. Slide 12: P&L Summary: 9M FY2022

    P&L Summary: 9M FY2022 Strong PBT and PPOP growth of 8.3% and 6.9% respectively YoY on higher net operating income More 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY details on FY2022 FY2021 FY2022 FY2022 FY2021 s.23 Net fund based income * 15,373.6 14,220.4 8.1% 5,296.8 5,183.0 2.2% 4,719.2 12.2% s.14/23/2

  13. Slide 13: Net Fund Based Income: 9M FY2022 (1/2)

    Net Fund Based Income: 9M FY2022 (YoY) (1/2) Robust loan growth across all home markets Group Gross Loans  +8.2% YoY Malaysia Singapore Indonesia  +7.9% YoY  +4.0% YoY  +13.1% YoY 331.5 357.5 542.8 587.1 84.5 78.9 +7.1% 114.8 RM billion 101.5 SGD billion IDR trillion 42.9 44.6 RM billion +8.1% 4

  14. Slide 14: Net Fund Based Income: 9M FY2022 (2/2)

    Net Fund Based Income: 9M FY2022 (2/2) Group deposits grew supported by CASA growth in Malaysia and Indonesia; NIM expands 7 bps YTD (Ann.) on improved yields given rising rate environment Group Deposits Malaysia Singapore Indonesia  +4.9% YoY  +8.7% YoY  (3.4)% YoY  +5.0% YoY 609.6 639.4 88.5 C

  15. Slide 15: Net Fee Based Income: 9M FY2022 (YoY)

    Net Fee Based Income: 9M FY2022 (YoY) Growth of 8.4% driven by MTM gain on financial liabilities and foreign exchange gains 9M 9M Other Group’s Operating Income (RM mil) YoY Total Net Fee Based Income FY2022 FY2021  8.4% YoY Commission, service charges and fees 2,511 2,746  (8.5)% Commission 919 1

  16. Slide 16: Overheads: 9M FY2022 (YoY)

    Overheads: 9M FY2022 (YoY) Cost growth in line with increased business activities, CIR of 45.4% well within full-year guidance of 45% to 46% 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2022 FY2021 FY2022 FY2022 FY2021 Personnel Costs 5,466.9 5,115.3 6.9% 1,948.2 1,777.5 9.6% 1,682.8 15.8% Establishment

  17. Slide 17: Asset Quality (1/2)

    Asset Quality (1/2) Loan loss coverage stood at 122.3% as ann. net credit charge off of 45 bps tracks FY22 guidance of 40 bps to 50 bps Allowances for losses on loans 137.8% 133.3% 131.5% 113.9% 110.9% Loan loss coverage incl. Regulatory Reserve 127.0% 122.3% 122.3% 111.9% 106.4% Loan loss coverage

  18. Slide 18: Asset Quality (2/2)

    Asset Quality (2/2) Group GIL improved to 1.70% due to write-offs, recoveries and low formation of newly impaired loans Group Gross Impaired Loans (GIL) Ratio Composition GIL Ratio Components Sep 2022 Jun 2022 Mar 2022 Dec 2021 Sep 2021 Non Performing Loans (NPL) 1.27% 1.41% 1.59% 1.28% 1.63% Restru

  19. Slide 19: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Mainly stable trends across Singapore and Indonesia, with slight uptick in Malaysia’s business segments Consumer Mortgage Auto Finance Credit Cards 5.95% 5.41% 5.30% 3.03% 5.18% 5.17% 2.40% 1.85% 1.66% 1.52% 1.09% 0.76% 0.73% 1.62% 1.73% 1.76% 0.69%

  20. Slide 20: Strong Liquidity & Capital Positions: September 2022

    Strong Liquidity & Capital Positions: 30 September 2022 Healthy LCR & NSFR levels, while Group CET1 capital ratio at 13.84% (assuming 85% reinvestment rate) After proposed dividend, Liquidity Risk Indicators Before proposed dividend assuming 85% reinvestment rate LCR LDR NSFR 19.52% 17.77% 17.15% Gr

  21. Slide 21: Table of Contents

    Table of Contents Executive Summary 2-9 9M FY2022 Financial Performance 11-19 Appendix: 1. Financial Performance 21-32 2. Community Financial Services 34-36 3. Global Banking 38-39 4. Maybank Singapore 41-42 5. Maybank Indonesia 44-45 6. Other Segments 47-49

  22. Slide 22: International & Malaysia Portfolio Mix 9M FY2022

    International & Malaysia Portfolio Mix 9M FY2022 Net Operating Income Profit Before Tax Gross Loans * 9M FY2022 (Jan 22 – Sep 22) Overseas: 5.4% Overseas: 6.4% Overseas: 7.7% 32.3% 9.5% 25.2% 18.8% 39.1% 5.9% 17.4% RM20.72 RM8.85 RM587.1 billion billion# 25.5% billion 67.7% 60.9% 75.0% Malaysia Sing

  23. Slide 23: Segmental Performance of Businesses: 9M FY2022 (1/2)

    Segmental Performance of Businesses: 9M FY2022 (1/2) Net Operating Income Group Global Banking  +9.9% 9M FY2021 9M FY2022  +8.2% 9M FY2021: 7,367 9M FY2022: 8,098 20,718 19,149  +15.5%  +15.2%  (17.3)%  (18.4)%  (16.6)% 12,040 RM million 10,420 6,178 7,115 1,092 903 1,383 1,153 98 80 Total Gr

  24. Slide 24: Segmental Performance of Businesses: 9M FY2022 (2/2)

    Segmental Performance of Businesses: 9M FY2022 (2/2) Net Fund Based Income Group Global Banking  +7.7% 9M FY2021 9M FY2022  +8.1% 9M FY2021: 4,477 9M FY2022: 4,822 15,374 14,220  +17.7%  +7.6%  +9.9%  +9.1%  +7.7% 9,472 RM million 8,046 4,253 4,575 223 245 2 2 1,013 1,092 Total Group Communit

  25. Slide 25: Net Fee Based Income: 3Q FY2022 (QoQ)

    Net Fee Based Income: 3Q FY2022 (QoQ) 3Q 2Q 3Q RM million QoQ YoY Total Net Fee Based Income FY2022 FY2022 FY2021 Commission, service charges and fees 842 847  (0.6)% 822  2.5%  48.0 % YoY  28.2 % QoQ Commission 309 318  (2.6)% 310  (0.1)% 2,117 Service charges and fees 378 356  6.2% 351  7.

  26. Slide 26: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million 9M FY2022 9M FY2021 YoY 3Q FY2022 2Q FY2022 QoQ 3Q FY2021 YoY Net interest income 1,091.7 1,013.2 7.7% 383.1 359.9 6.4% 357.5 7.2% Net earned premiums 6,883.5 6,679.2 3.1% 2,259.0 2,268.5 (0.4)% 1,983.4 13.9% Other operating income (1,82

  27. Slide 27: Group Gross Loans Growth: September 2022

    Group Gross Loans Growth: 30 September 2022 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2022 2022 2022 2021 Ann. 2021 Group Gross Loans 587.1 575.3  2.0% 562.0 553.8  8.0% 542.8  8.2% Malaysia (RM billion) 61% 357.5 349.5  2.3% 345.9 340.1  6.8% 331.5  7.9% Community Financia

  28. Slide 28: Malaysia Loans Growth: September 2022

    Malaysia Loans Growth: 30 September 2022 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep RM billion QoQ YoY Portfolio 2022 2022 2022 2021 Ann. 2021 Community Financial Services (reported) 76% 272.8 267.6  1.9% 263.0 259.7  6.7% 252.3  8.1% Community Financial Services (rebased)¹ 76% 272.8 267.6  1.9

  29. Slide 29: Group Deposits Growth: September 2022

    Group Deposits Growth: 30 September 2022 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2022 2022 2022 2021 Ann. 2021 Group Gross Deposits 639.4 637.1  0.4% 632.5 617.7  4.7% 609.6  4.9% Malaysia (RM billion) 65% 416.0 406.7  2.3% 397.7 391.9  8.2% 382.7  8.7% Savings Deposits 1

  30. Slide 30: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 88.9% 89.5% 88.7% 90.2% 91.6% 87.4% 87.5% 87.7% 86.6% 86.6% 47.1% 46.2% 46.7% 46.0% 43.8% 50.2% 49.3% 49.3% 48.3% 46.7% 42.7% 43.2% 43.0% 40.5% 42.5% 44.0% 43.2% 42.5% 44.3% 41.7% Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Sep 21 Dec 21 Mar 22 Jun

  31. Slide 31: RWA Optimisation and Funding Management

    RWA Optimisation and Funding Management Group Gross Loans & Group RWA Funding Breakdown Borrowings and Capital Instruments Operational RWA Market RWA Credit RWA Gross Loans by Currency FI Deposits, 7% SGD, 8% 587.1 IDR, CNH, 6% Equity, 10% JPY, 8% 553.8 9% HKD, 5% 542.8 423.3 424.5 THB, 3% Borrowing

  32. Slide 32: Specific Asset Exposures as at September 2022

    Specific Asset Exposures as at 30 September 2022 Oil & Gas Loan and Fixed Income Securities Exposures to Real Estate Loan Exposure to Non-Retail Borrowers Non-Retail Malaysian Borrowers Maybank Group Malaysia Singapore Indonesia Others High Rise Others, 30.4% Residential, 3.68% 2.19% 0.96% 0.32% 0.2

  33. Slide 33: Key Operating Ratios

    Key Operating Ratios % 9M FY2022 9M FY2021 YoY 3Q FY2022 2Q FY2022 QoQ 3Q FY2021 YoY Return on Equity 4 9.6 9.8 (0.2)% 10.4 9.0 1.4% 8.2 2.2% 4 Net Interest Margin (bps) 2.39 2.31 8 bps 2.42 2.41 1 bps 2.26 16 bps Fee to Income Ratio 25.8 25.7 0.1% 28.6 24.2 4.4% 23.3 5.3% Loans-to-Deposit Ratio 1 9

  34. Slide 34: Table of Contents

    Table of Contents Executive Summary 2-9 9M FY2022 Financial Performance 11-19 Appendix: 1. Financial Performance 21-32 2. Community Financial Services 34-36 3. Global Banking 38-39 4. Maybank Singapore 41-42 5. Maybank Indonesia 44-45 6. Other Segments 47-49

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

    Community Financial Services: Overview of Market Share for Malaysia Market share Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Loans Total consumer (Household) 18.1% 18.2% 18.2% 18.2% NA 1 Auto (Hire Purchase + Block Discounting + Floor Stocking) 30.4% 30.6% 30.7% 30.7% NA 1 Total mortgage * 14.6% 14.6% 14.6%

  36. Slide 36: We Continue to Maintain Leadership Position in Digital Banking

    We Continue to Maintain Leadership Position in Digital Banking As at end-Sep’ 22 SME Digital Financing approved loans since RM2.70 bil its launch in Sep’20 Mobile Banking Internet Banking 3-month Active Users Market Share 54.0% * Market Share 49.5% * 8.1 mil users * SME Digital Accounts accounts act

  37. Slide 37: Community Financial Services: Overview of Malaysia and Group Wealth Management Portfolio

    Community Financial Services: Overview of Malaysia and Group Wealth Management Portfolio CFS Malaysia Group Wealth Management1 Total loans on an upward trend of 8.1% YoY and 1.9% QoQ Total Financial Assets grew 6.0% YoY to RM413.7 billion contributed by investments growth of 4.2% and loan growth of

  38. Slide 38: Table of Contents

    Table of Contents Executive Summary 2-9 9M FY2022 Financial Performance 11-19 Appendix: 1. Financial Performance 21-32 2. Community Financial Services 34-36 3. Global Banking 38-39 4. Maybank Singapore 41-42 5. Maybank Indonesia 44-45 6. Other Segments 47-49

  39. Slide 39: Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio

    Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio Total Corporate Banking loans in Malaysia increased 7.1% Group Securities Portfolio¹ grew 6.8% YoY YoY to RM84.5 billion RM billion  +6.8% YoY 50.3 235.1 237.1 223.9 230.8 9.3 Term Loan 222.0 10.2 9.3 48.3 +4.3% Y

  40. Slide 40: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 9M FY2022 Total Income Breakdown by Country 9M FY2022 Fee-based Income for Malaysia Underwriting& Hong Kong Vietnam Others Placement Fees 2% 7% 0% 9% Arrangers' Fees Phillipines Advisory Fees 17% 7% 1% Indonesia Malaysia Agency/ 5% 39% G

  41. Slide 41: Table of Contents

    Table of Contents Executive Summary 2-9 9M FY2022 Financial Performance 11-19 Appendix: 1. Financial Performance 21-32 2. Community Financial Services 34-36 3. Global Banking 38-39 4. Maybank Singapore 41-42 5. Maybank Indonesia 44-45 6. Other Segments 47-49

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

    Maybank Singapore: P&L Summary SGD million 9M FY2022 9M FY2021 YoY 3Q FY2022 2Q FY2022 QoQ Net fund based income 582.64 468.30 24.4% 206.03 202.79 1.6% Net fee based income 330.16 196.28 68.2% 123.65 124.35 (0.6)% Net income 912.80 664.57 37.4% 329.69 327.14 0.8% Overhead expenses (369.64) (346.77)

  43. Slide 43: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Business deposits remained core contributor at 54.9% of total deposits % of 30 Sep 31 Dec YTD 30 Sep  (3.4)% YoY SGD Billion YoY 49.5 48.0 47.8 Consumer - Time Portfolio 2022 2021 Ann. 2021 Deposits 12.5 11.8 12.

  44. Slide 44: Table of Contents

    Table of Contents Executive Summary 2-9 9M FY2022 Financial Performance 11-19 Appendix: 1. Financial Performance 21-32 2. Community Financial Services 34-36 3. Global Banking 38-39 4. Maybank Singapore 41-42 5. Maybank Indonesia 44-45 6. Other Segments 47-49

  45. Slide 45: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary IDR billion 9M FY2022 9M FY2021 YoY 3Q FY2022 2Q FY2022 QoQ Net Fund Based income 5,321 5,349 (0.5)% 1,843 1,731 6.5% Net Fee Based income 1,321 1,474 (10.4)% 450 396 13.4% Net income 6,642 6,823 (2.7)% 2,293 2,127 7.8% Overhead expenses (4,333) (4,263) 1.6% (1,469) (1

  46. Slide 46: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown % of 30 Sep 30 Jun 30 Sep Key Operating Ratio Sep 22 Dec 21 Sep 21 YoY IDR Trillion QoQ YoY Portfolio 2022 2022 2021 Profitability & Efficiency CFS 59.1% 65.8 64.7 1.7% 62.3 5.7% Return O

  47. Slide 47: Table of Contents

    Table of Contents Executive Summary 2-9 9M FY2022 Financial Performance 11-19 Appendix: 1. Financial Performance 21-32 2. Community Financial Services 34-36 3. Global Banking 38-39 4. Maybank Singapore 41-42 5. Maybank Indonesia 44-45 6. Other Segments 47-49

  48. Slide 48: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing1 grew to RM236.5 billion +10% Sep 21 RM million 9M FY2022 9M FY2021 YoY 71.9 Sep 22 65.2 +11% Total Income 5,666.6 4,942.3 14.7% +16% 53.0 48.9 47.6 Profit Before Tax 3,529.2 3

  49. Slide 49: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 30.3% 30.4% 30.4% 29.9% 29.8% Key Products Sep 22 Sep 21 Automobile Financing 48.1% 48.2% 27.8% 28.0% 27.4% 27.2% 27.5% Home 25.8% 26.2% Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Term Financing 27.1% 27.5% Financi

  50. Slide 50: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Net Adjusted Premium/Contribution Life & Family (New Business) Market Share (Malaysia) Single Premium (13.9)% Regular Premium (4.4)% 19.3% 19.1% 19.6% 19.3% Credit Premium 38.1% 16.7% 17.9% 16.5% 16.8% No. 3 in Life/Family Group Premium 10.8% 10.9% (New

  51. Slide 51: 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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