Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — FY2023 Earnings Presentation

44 slides from Ammb Holdings Bhd's earnings presentation, May 29, 2023

  1. Slide 1: FY2023 Results Investor Presentation

    FY2023 RESULTS (31 MARCH 2023) INVESTOR PRESENTATION 29 MAY 2023

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 FY23 Financial snapshot 4 Repayment assistance 5 Loans by stages 6 Outlook for 2023 7 Focus 8

  3. Slide 3: FY23 Financial Snapshot (Reported)

    Financial Snapshot (Reported) FY23 Financial snapshot FY23 Reported Financials Variance Delivered 10% ROE, dividend payout of 35% 4,738 Income  2% • Continuing Operations1, income grew 12% FY22: 4,665 (2,100) • Continuing Operations1, expenses grew 12% Expenses ≈ FY22: (2,094) • Reported CTI 44.3%

  4. Slide 4: Repayment Assistance

    Repayment Assistance Repayment assistance loans Repayment assistance by type of borrowers (RM’ bil) SME: Repayment assistance by MIA status MIA 3 MIA ≥4 MIA 2 0.01 bil 0.03 bil MIA 1 0.02 bil 1% 5% 0.05 bil 4% Retail SME Corporate 9% 16% of total gross loans 17.8 Total Assistance: 2.2 RM0.6bil MIA 0

  5. Slide 5: Loans by Stages

    Loans (Reported) Loans by stages Loans by ECL Stages (RM’ bil)1 Breakdown by Business Segments (%) Stage 1 Stage 1 Stage 2 Stage 3 Jun’21 Dec’21 PEMULIH 91.7% 113.5 113.4 117.1 120.0 120.1 124.4 126.3 130.2 BB 87.7% 1.6% 1.5% 1.4% 1.4% 1.6% 1.5% 1.6% 1.5% 10.2% 9.7% RB 86.7% 13.2% 14.7% 12.9% 12.7%

  6. Slide 6: Outlook for 2023

    Market Outlook Outlook for 2023 GDP Growth 4.0% to 5.0% Inflation 3.0% to 3.5% Malaysia Export Growth 5.0% to 10.0% USD/MYR Outlook 4.20 to 4.30 Loans Growth 4.0% to 5.0% Asset Quality Stable Banking OPR 3.00% Sector Liquid & Capital Positions Resilient 6 FY23 Results – Investor Presentation

  7. Slide 7: Focus 8: Key initiatives and progress

    Focus 8 Strategy (FY21 – FY24) Focus 8: Key initiatives and progress The path to ROE of 10% Sharpening our segment play Collaborators & Partners Building capital light revenues • FY23 ROE = 10.0%; ROTE 10.3% • AmSPB Total AUM ↑ 22% YoY • ~22k SME customers acquired • Grew CASA balance 69% since FY20

  8. Slide 8: GCFO Presentation

    GCFO PRESENTATION Jamie Ling 8- 24 Financial Overview

  9. Slide 9: Q4FY23 Financial Overview

    Financial Overview (Continuing) Q4FY23 Financial overview 1 Capital, Liquidity and Funding • Declared dividends of 12.3 sen (FY23 total dividends of 18.3 sen, payout ratio of 35%) • After proposed dividends, CET1 at 12.51%, TCR at 15.65%. Without TA, CET1 at 12.10%, TCR at 15.47% • Sector liquidity

  10. Slide 10: FY23 Performance Summary – P&L (Reported)

    Financial Overview (Reported) FY23 Performance summary – P&L (Reported) P&L (RM’ mil) Q3FY23 Q4FY23 QoQ Change FY22 FY23 YoY Change Total Income 1,231 1,160  (6%) 4,665 4,738  2% - NII 930 824  (11%) 3,275 3,541  8% - NOII 301 336  12% 1,390 1,197  (14%) Expenses (497) (556)  12% (2,094) (2,1

  11. Slide 11: FY23 Performance Summary – Balance Sheet (Reported)

    Financial Overview (Reported) FY23 Performance summary – Balance Sheet (Reported) Balance Sheet (RM’ bil) Q3FY23 Q4FY23 QoQ Change FY22 FY23 YoY Change Gross Loans 126.3 130.2  3% 120.0 130.2  9% GIL 1.62% 1.46%  (0.16%) 1.40% 1.46%  0.06% LLC (with Reg Reserves) 116.7% 127.7%  11.0% 139.2% 127

  12. Slide 12: P&L – Continuing & Discontinued Operations

    Disposal of AmGen P&L – Continuing & Discontinued Operations Financial Effects post Disposal (Full financial year) FY22 FY23 YoY Movement Reported Continuing Ops Discontinued Op Reported Continuing Ops Discontinued Op Continuing Discontinued RM’mil Reported (A) + (B) (A) (B) (A) + (B) (A) (B) Operat

  13. Slide 13: Income (Continuing)

    Income (Continuing) YoY Income growth benefited from OPR hikes and stronger Treasury & Markets income Business Segments Q3FY23 Q4FY23 QoQ Change FY22 FY23 YoY Change (RM’ mil) Wholesale Banking 395 387  (2%) 1,286 1,501  17% Investment Banking 89 84  (6%) 347 322  (7%) Retail Banking 498 454  (

  14. Slide 14: PBP & PAT (Continuing)

    PBP & PAT (Continuing) Maintained operating leverage, PBP up 13% Business Segments Q3FY23 Q4FY23 QoQ Change FY22 FY23 YoY Change (RM’ mil) Wholesale Banking 328 308  (6%) 1,032 1,232  19% Investment Banking 38 31  (18%) 171 128  (25%) Retail Banking 274 208  (24%) 833 964  16% Business Banking

  15. Slide 15: Group P&L Walk

    Group P&L (Continuing) P&L walk YoY Growth  14%  17%  (56%)  12%  12%  13%  (54%)  46%  >100%  28% 414 160 425 77 210 336 1,742 1,366 Net Interest Non-Interest RM’ mil Net Mod Impact Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income FY23 3,437 1,110 62 4,608 (1,999) 2,

  16. Slide 16: NIM compressed due to deposit repricing

    NIM (Reported) QoQ NIM compressed due to deposit repricing and competition QoQ NIM Q4FY23: Net Interest Margin (NIM) Movement (YoY) Reported: 1.84% (  (29bps) ) Underlying: 1.82% (  (28bps) ) Q3FY23: Reported: 2.13% Divisions Funding + Deposits Underlying: 2.10% Underlying: Reported:  7bps  2bps

  17. Slide 17: 17% growth in NOII

    NoII (Continuing) 17% growth in NOII: Strong Treasury & Markets, Business Banking & Corporate Banking fees and Insurance offsetting lower Investment Banking and Wealth Management Income YoY Growth  20%  10%  95% (2%)  (25%)  (14%)  (25%)  5%  15%  27%  >100%  >100%  17% Composition 5% 8

  18. Slide 18: Neutral JAWS, CTI 43.4%

    Expenses (Continuing) Neutral JAWS, CTI 43.4% Business Segments Q3FY23 Q4FY23 QoQ Change FY22 FY23 YoY Change (RM’ mil) Wholesale Banking 67 80  18% 254 269  6% Investment Banking 50 52  4% 176 194  10% Retail Banking 224 246  10% 840 914  9% Business Banking 51 59  16% 153 209  37% Group Fu

  19. Slide 19: Broad-based loans growth

    Loans (Reported) Broad-based loans growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: ROA: RoTA: Fixed rate – 22% Islamic – 35% Retail – 54% 0.92% 0.92% Variable rate –78% Conventional – 65% Non-retail – 46% YTD Growth  10%  13%

  20. Slide 20: Impairment charges significantly lower

    Asset Quality (Reported) Impairment charges significantly lower Net Impairment (YoY Movement) Overlay (PL) (RM’mil): RM’ mil Q1FY23: 30.0 351.7 Q2FY23: 0.6 34.9 Q3FY23: (4.5) Q4FY23: 41.4 1.7 269.7 1,119.5 200.8 113.2 70.0 766.0 767.7 67.5 254.8 3.2 466.9 286.1 353.6 FY22 AmGen FY22 FY22 Overlay FY2

  21. Slide 21: Vigilant monitoring of sector exposures

    Asset Quality Vigilant monitoring of sector exposures Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’22 Dec’22 Mar’23 QoQ YoY Sector Composition Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil RM’ mil

  22. Slide 22: Consistent Retail deposit growth

    Deposits (Reported) Consistent Retail deposit growth Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) CASA Trend YTD Growth Industry Customer Deposits Trend YTD Growth Industry  6%  5%1 FY23 48.8  13%  (2%)1 FY23 130.3  2%  5%2 FY22 43.1  21%  6%2 FY22 122.6 FY21 120.5  7%  6%2 F

  23. Slide 23: Capital build on track

    Capital (Reported) Capital build on track RWA/Total Assets FHC Capital Adequacy Ratios3 RM’ bil 1 2 Total Assets RWA/Total Assets Peers CET 1 / Tier 1 Total CAR 65.0% 64.4% 66.7% 67.4% 62.6% 15.43% 15.80% 15.47% 15.32% 15.65% 15.18% 14.48% 14.14% 58.4% 58.5% 58.1% 56.8% 54.9% 11.89% 12.44% 11.65% 12

  24. Slide 24: FY23 Summary

    Summary FY23 Summary IMPROVED CREDIT PROFILE PERFORMANCE • Delivered 10% ROE • GIL manageable at 1.46% • Deposit repricing • LLC (incl. RR) 127.7%; RM461mil overlays c/fwd OPERATING BALANCE SHEET LEVERAGE STRENGTH • Neutral JAWS (Continuing • Capital build on track: Operations basis) 12.43% pre-prop

  25. Slide 25: Thank You

    THANK YOU

  26. Slide 26: Reported yearly performance

    FY23 Results (Reported) Reported yearly performance PATMI / (LATMI) (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) PATMI / (LATMI) PATMI: ROE: Total Income Non-interest Income % Total Income: YoY Growth  15.5% YoY Growth  0.7% CAGR FY20-FY23:  3.9% 8.8% YoY Growth  1.6% 7

  27. Slide 27: (Impairments) / Writebacks

    Asset Quality (Continuing) (Impairments) / Writebacks Net (Impairments) / Writebacks and GIL Ratio Total impairments by category (RM’ mil) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 QoQ Change FY22 FY23 YoY Change ECL Stage 1 & 2 / CP – Non defaulted1 (122) (124) 56 561 6 19 (55) 17  (

  28. Slide 28: Loans by sector vs industry

    Loans (Reported) Loans by sector vs industry AmBank Group (RM’ bil) Loans 2% 2% 12% 1% 3% 9% 4% 6% 6% 1% 54% ≈ 100% Composition YTD  29% 2%  (1%)  29%  3%  15%  7%  37%  17%  9%  6%  (79%)  9% Growth Mar'23 130.2 69.0 15.8 3.1 4.5 12.2 5.2 7.6 7.7 2.2 1.5 1.5 0.0 Wholesale, Finance, Min

  29. Slide 29: Divisional Performance

    Divisional Performance

  30. Slide 30: Wholesale Banking

    Wholesale Banking (Reported) Wholesale Banking QoQ Growth:  0% Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) YoY Growth:  >100% FY22: 37 FY23: 988 Total Income 288 RM1,501 mil  17% 227 237 236  55% 143 127 22 Transaction Banking 23% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1

  31. Slide 31: Wholesale Banking

    Wholesale Banking (Reported) Wholesale Banking Income Statement YoY Growth  9%  50%  17%  6%  19%  (>100%)  >100%  >100%  >100% Net Interest Non-Interest Recoveries / (Tax Expenses) / RM' mil Total Income Expenses PBP PBT PAT Income Income (Impairment) Tax Recoveries FY23 1,142 359 1,501 (2

  32. Slide 32: Investment Banking

    Investment Banking (Reported) Investment Banking League Table Market Share of Value and Volume Traded on Bursa (KLSE)1 Market Share1 As At Rank2 31 March 2023 Trading Value Trading Volume DCM 10.7% 4 3.9% (Overall MYR Bonds) 4.0% 3.6% Islamic Sukuk 7.3% 4 3.2% 3.2% 5.3% 5.5% 4.8% Unit Trust 8.0% 5

  33. Slide 33: Investment Banking

    Investment Banking (Reported) Investment Banking Income Statement YoY Growth  11%  (10%)  (7%)  10%  (25%)  >100%  (30%)  (34%)  (29%) Net Interest Non-Interest (Impairment) / RM' mil Total Income Expenses PBP PBT Tax Expenses PAT Income Income Recoveries FY23 50 272 322 (194) 128 (1) 127 (

  34. Slide 34: Retail Banking

    Retail Banking (Reported) Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth:  (21%) Total Income  12% YoY Growth :  (2%) RM 1,878 mil  49%  8%  (1%) Others 4% Auto FY22: 515 FY23: 503 Retail SME 11% 9%  (24%) 162 Wealth COOP & ASB 146 144

  35. Slide 35: Retail Banking: Cards in circulation

    Retail Banking (Reported) Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth:  (7%) Merchant volume (RM'mil) QoQ Growth:  4% YoY Growth:  38% YoY Growth:  (35%) Merchants in force ('000) QoQ Growth: ≈ YoY Growth:  (4%) FY22: 2,923 FY23: 1,899 35 35 35 35 35 34 34 34 875 FY22: 11,1

  36. Slide 36: Retail Banking

    Retail Banking (Reported) Retail Banking Income Statement YoY Growth  15% (5%)  12%  9%  16%  92% (2%)  (2%)  (2%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax Expenses PAT Income Income FY23 1,635 243 1,878 (914) 964 (302) 661 (158) 503 FY22 1,417 256 1,67

  37. Slide 37: Business Banking

    Business Banking (Reported) Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth:  6% QoQ Growth:  >100% YoY Growth:  13% YoY Growth:  (5%) Non-trade Trade 21,196 20,068 18,736 19,053 19,336 18,070 17,329 17,374 5,465 5,200 5,172 5,300 5,249 4,676 4,675 4,945 FY22: 278 FY23: 265

  38. Slide 38: Business Banking

    Business Banking (Reported) Business Banking Income Statement YoY Growth  21%  27%  22%  37%  16%  >100%  (3%)  2%  (5%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax Expenses PAT Income Income FY23 534 147 681 (209) 472 (123) 349 (84) 265 FY22 442 116 558 (

  39. Slide 39: Islamic Banking

    Islamic Banking (Reported) Islamic Banking Income Statement YoY Growth  17%  17%  17%  (65%)  >100%  >100% > 100% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ FY23 1,207 (335) 872 (180) 692 (160) 532 FY22 1,032 (285) 747 (507) 240 (52) 188 FY23 PAT FY22 PAT Positive growt

  40. Slide 40: AmBank (M)

    AmBank (M) entity level AmBank (M) Income Statement YoY Growth  9%  21%  11%  10%  13%  (37%)  25%  >100%  7% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income FY23 2,341 677 3,019 (1,428) 1,590 (173) 1,417 (326) 1,091 FY22 2,151 560 2,711 (1,3

  41. Slide 41: P&L – Continuing Operations: Income and Core PAT Growth

    P&L – Continuing Operations Continuing Operations – YoY Income and Core PAT Growth, Improved CTI Continuing Operations - Total Income (RM’mil) & CTI CTI 48.1% 45.2% 45.1% 45.5% 39.7% 44.2% 42.5% 48.5% 44.9% 40.7% 40.4% 47.9% 45.9% 43.6% 43.4% 11% 7% 5% 7% 6% 12% 5% 5% 12% 4,608 -2% 3,900 4,100 -7% -

  42. Slide 42: Appendix: Continuing Operations - P&L by Quarters

    P&L – Continuing Operations Appendix: Continuing Operations - P&L by Quarters FY21 FY22 FY23 YoY Movement FY21 – FY23 (full FY) YoY Movement Q4FY22 Q4FY23 FY22 vs FY23 vs RM’mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 VS VS FY21 FY22 FY23 FY21 Y22 Q4FY21 Q4FY22 NII 576 706 746 775 786 769 815 781 831 91

  43. Slide 43: Appendix: Reported - P&L by Quarters

    P&L – Continuing Operations Appendix: Reported - P&L by Quarters FY21 FY22 FY23 YoY Movement FY21 – FY23 (full FY) YoY Movement Q4FY22 Q4FY23 FY22 vs FY23 vs RM’mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 VS VS FY21 FY22 FY23 FY21 Y22 Q4FY21 Q4FY22 NII 614 740 779 803 818 800 845 812 863 923 930 824  1

  44. Slide 44: Glossary & Disclaimer

    Glossary & Disclaimer Glossary & Disclaimer of warranty and limitation of liability Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market Growth Definition QoQ growth refers to Q4FY23 vs Q3FY23 YoY /

AMMB Holdings Berhad — FY2023 Earnings Presentation on 6ix