Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — Q1 FY2023 Earnings Presentation

44 slides from Ammb Holdings Bhd's earnings presentation, Aug 17, 2022

  1. Slide 1: Q1FY2023 Results Investor Presentation

    Q1FY2023 RESULTS INVESTOR PRESENTATION 17 AUGUST 2022

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 Q1FY23 Financial snapshot 4 Disposal of AmGen - overview 5 Repayment assistance 7 Outlook for 2022

  3. Slide 3: Q1FY23 Financial snapshot

    Financial Snapshot Q1FY23 Financial snapshot Reasonable start to FY23, lower net provisions driving Q1FY23 Financials Variance PATMI growth. Annualised ROE 10% • 6% NII growth driven by NIM expansion to 2.12% and higher 1,162 average loans and deposits balances YoY Income  (6%) Q1FY22: 1,238 • Lowe

  4. Slide 4: Disposal of AmGen – Overview

    Disposal of AmGen Disposal of AmGen – Overview Corporate Structure – Before and After disposal Gain / (Loss) on Disposal RM’mil Position at 30 June 22 Total consideration (cash & shares) 2,362.6 Net assets disposed (before goodwill) (1,668.1) Gain on Disposal (pre-goodwill) 694.5 Goodwill from Kurni

  5. Slide 5: Repayment assistance loans declining

    Repayment Assistance Repayment assistance loans declining Repayment assistance by type of borrowers (RM’ bil) SME: Repayment assistance by MIA status MIA 2 MIA ≥3 0.04 bil 0.07 bil MIA 1 Retail SME Corporate 3% 4% 0.19 bil 12% 32% of total gross loans 30% of total gross loans 36.5 33.7 Total 4.3 2.6

  6. Slide 6: PHRA1 - Expiry and Rollover

    Repayment Assistance PHRA1 - Expiry and Rollover Total re-enrolment as of Retail (RM’ bil) Retail SME (RSME) (RM’ bil) 31 July 2022 (a) + (b) : Re-enrollment Re-enrollment RM2.15 bil - 20.4 2.4 1.5 0.4 8.2 1.1 0.8 2 1.6 6.6 0.5 2.8 0.7 2.5 0.3 1.6 1.5 1.0 0.2 0.1 1.2 12 Nov 21 18 Feb 22 13 May 22 31

  7. Slide 7: Outlook for 2022

    Market Outlook Outlook for 2022 GDP Growth Export growth 6.4% to 6.7% 25.0% to 26.0% MALAYSIA Inflation USD/MYR outlook 2.8% to 3.0% 4.35 to 4.40 Loans growth OPR 5.0% to 6.0% 2.50% to 2.75% BANKING (1 or 2 rate hikes; +25bps each during H2CY22) Asset Quality SECTOR Liquidity & capital positions Sta

  8. Slide 8: GCFO Presentation: Financial Overview

    GCFO PRESENTATION Jamie Ling 9 - 24 Financial Overview

  9. Slide 9: Q1FY23 Financial overview

    Financial Overview Q1FY23 Financial overview 1 Capital, Liquidity and Funding • Adequate loss absorption capacity • CET1 at 12.38%; without Transitional Arrangements, CET1 at 11.96% • Highly liquid (FHC LCR of 153.0%, LDR 99.0%) 2 Q1FY23 Results (QoQ) • Income of RM1,162mil - NII of RM863mil, up 6%.

  10. Slide 10: Q1FY23 Performance summary – P&L

    Financial Overview Q1FY23 Performance summary – P&L P&L (RM’ mil) Q4FY22 Q1FY23 QoQ Change Q1FY22 YoY Change Total Income 1,123 1,162  3% 1,238  (6%) Expenses 557 544  (2%) 495  10% PBP 566 618  9% 743  (17%) Net Impairment 51 64  24% 203  (69%) PBT 514 554  8% 540  3% PATMI 392 419  7% 3

  11. Slide 11: Disposal of AmGen – Proforma Financial Effects

    Disposal of AmGen Disposal of AmGen – Proforma Financial Effects Proforma Financial Effects post Proposed Disposal (Full Financial Year) FY2021 FY2022 YoY Movement RM’mil Proforma1 AmGen Hldg2 As Reported3 Proforma1 AmGen Hldg2 As Reported3 Proforma1 AmGen Hldg2 As Reported3 NII 2,823 113 2,935 3,16

  12. Slide 12: Q1FY23 Performance summary – Balance Sheet

    Financial Overview Q1FY23 Performance summary – Balance Sheet Balance Sheet (RM’ bil) Q4FY22 Q1FY23 QoQ Change Q1FY22 YoY Change Gross Loans1 120.0 120.1 ≈ 113.5  6% GIL1 1.40% 1.55%  0.15% 1.59%  (0.04%) LLC1,2 139.2% 123.3%  (15.9%) 126.7%  (3.4%) Customer Deposits 122.6 121.4  (1%) 114.1 

  13. Slide 13: Step up in Banking revenues QoQ

    Income Step up in Banking revenues QoQ Business Segments Q4FY22 Q1FY23 QoQ Change Q1FY22 YoY Change (RM’ mil) Wholesale Banking 303 331  9% 314  6% Investment Banking 78 75  (4%) 97  (23%) Retail Banking 409 446  9% 424  5% Business Banking 147 156  6% 141  11% Group Funding & Others 47 39 

  14. Slide 14: Improved operating leverage QoQ

    PBP & PATMI Improved operating leverage QoQ Business Segments Q4FY22 Q1FY23 QoQ Change Q1FY22 YoY Change (RM’ mil) Wholesale Banking 239 272  14% 250  8% Investment Banking 31 31  1% 56  (45%) Retail Banking 198 230  16% 220  5% Business Banking 101 110  8% 107  3% Group Funding & Others (58

  15. Slide 15: P&L walk

    Group P&L P&L walk NIM NoII % CTI Effective Tax Rate Q1FY23 2.12% 25.7% 46.8% 21.6% Q1FY22 2.08% 33.9% 40.0% 21.6% YoY  7%  (29%)  (32%)  (6%)  10%  (17%)  (69%)  3%  2%  3%  (59%)  8% Growth 56 21 139 2 121 10 49 419 387 Net Interest Non-Interest Net mod Total RM’ mil Expenses PBP Impai

  16. Slide 16: NIM expansion at the back of OPR rise

    NIM NIM expansion at the back of OPR rise YoY NIM Net Interest Margin (NIM) Movement (QoQ) Q1FY23: Reported: 2.12% ( 4bps) Underlying: 2.06% ( 7bps) Q1FY22: Reported: 2.08% Divisions Funding + Deposits Underlying: 1.99% Reported: bps 5.6  12bps Underlying: 9.6  12bps 4.1 0.2 3.0 0.4 212 2.1 1.4

  17. Slide 17: Lower fee-based income, investment and trading income

    NoII Lower fee-based income, investment and trading income YoY Growth  12%  (53%)  (27%)  (34%)  25%  12%  (40%)  (94%)  (21%)  (29%) 3 9 4 24 23 11 55 24 1 420 298 Corporate & Group Investment Group Wealth Business General Life RM’ mil Transaction Treasury Banking & Other Retail Funding &

  18. Slide 18: Improved CTI QoQ to 46.8%

    Expenses Improved CTI QoQ to 46.8% (Q4FY22: 49.6%) Business Segments Q4FY22 Q1FY23 QoQ Change Q1FY22 YoY Change (RM’ mil) Wholesale Banking 65 60  (8%) 63  (6%) Investment Banking 47 44  (7%) 41  8% Retail Banking 212 216  2% 204  6% Business Banking 45 46  2% 34  35% Group Funding & Others

  19. Slide 19: Modest loans growth with good corporate loans pipeline

    Loans Modest loans growth with good corporate loans pipeline visibility in Q2 Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: ROA1: RoTA1: Fixed rate – 20% Islamic – 33% Retail – 56% 1.00% 1.00% Variable rate –80% Conventional – 67% N

  20. Slide 20: Lower net impairment charges YoY

    Asset Quality Lower net impairment charges YoY Net Impairment (YoY Movement) Loan Loss Coverage1 139.2% RM’ mil 124.1% 123.3% 114.0% 93.4% 203.2 87.2 6.6 30.0 63.9 116.0 33.9 70.1 0.2 14.0 4.5 Q1FY22 Overlay Q1FY22 ECL ECL Individual Others Q1FY23 Overlay Q1FY23 FY19 FY20 FY21 FY22 Q1FY23 before Sta

  21. Slide 21: Vigilant monitoring of sector exposure

    Asset Quality Vigilant monitoring of sector exposure Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’22 June’22 Sector Composition QoQ Change 4% RM’ mil RM’ mil Agriculture 9 8 ≈  (12%) 6% Mining and quarrying 17

  22. Slide 22: Highly liquid

    Deposits Highly liquid Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) CASA Trend YTD Growth Industry Customer Deposits Trend YTD Growth Industry  (1%)  1%1 Q1FY23 39.6  (8%)  3%1 Q1FY23 121.4  2%  5%2 FY22 43.1  21%  6%2 FY22 122.6 FY21 120.5  7%  6%2 FY21 35.8  24%  21%2 Ret

  23. Slide 23: Capital build on track

    Capital Capital build on track RWA/Total Assets FHC Capital Adequacy Ratios3 RM’ bil 1 Total Assets RWA/Total Assets Peers 2 CET 1 / Tier 1 Total CAR 65.0% 64.4% 66.7% 67.4% 65.5% 15.43% 15.80% 15.48% 15.32% 15.64% 15.18% 14.48% 14.14% 58.4% 58.5% 58.1% 56.8% 57.2% 11.89% 12.44% 11.65% 11.96% 11.33%

  24. Slide 24: Q1FY23 Summary

    Summary Q1FY23 Summary Resilient Balance Sheet Cost efficiency Credit profile CTI normalising performance strength • Banking • Target 45% • Completion of Cost to Income • PHRA volumes partial Insurance revenues flat reducing Stepping up YoY; up 6% QoQ ratio; slight divestiture in investments Q2FY23

  25. Slide 25: Thank You

    THANK YOU

  26. Slide 26: Yearly performance

    Q1FY23 Results Yearly performance PATMI / (LATMI) (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) PATMI: ROE: Total Income Non-interest Income % PATMI / (LATMI) ROE (%) YoY Growth  8.4% YoY Growth ≈ Total Income: Total Income: 8.8% 10.0% 10.0% CAGR FY19-FY22  5.9% YoY Growth

  27. Slide 27: Non-interest income and PATMI mix

    NoII & PATMI Non-interest income and PATMI mix Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY)  (21%)  12% Others Corporate and  ≈ 1% Transaction Banking 10% Group  (53%) Funding  (21%)  (73%)  (49%) Group Treasury & Others  9%  (28%) Insurance Others & Marke

  28. Slide 28: Impairments

    Asset Quality Impairments Net Impairment / (Writebacks) and GIL Ratio Total impairments by category (RM’ mil) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 QoQ Change YoY Change ECL Stage 1 & 2 / CP – Non defaulted 122 124 (56) (561) (6)  (99%)  (>100%) ECL Stage 3 / CP – Defaulted 118 85 98 557 125  (78%)

  29. Slide 29: Loans by sector vs industry

    Loans Loans by sector vs industry AmBank Group (RM’ bil) Loans 2% 2% 13% 1% 3% 9% 4% 4% 6% 1% 55% ≈ 100% Composition YTD  6% ≈ ≈  6%  (1%)  (1%) ≈  (10%)  2%  (9%)  1%  (1%) ≈ Growth Jun'22 120.1 65.8 15.9 4.3 10.4 5.0 6.7 2.5 2.1 1.3 4.8 1.3 0.0 Wholesale, Finance, Mining & Electricity, Tr

  30. Slide 30: Divisional Performance

    Divisional Performance

  31. Slide 31: Wholesale Banking

    Wholesale Banking Wholesale Banking QoQ Growth: N/M Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) YoY Growth:  59% Total Income 227 RM331.1 mil  6% 143 127  21% 22 Transaction Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Banking 20%  (3%) Transaction Wholesale Banking Bank

  32. Slide 32: Wholesale Banking

    Wholesale Banking Wholesale Banking Income Statement YoY Growth  16%  (28%)  6%  (6%)  8%  (>100%)  60%  65%  59% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY23 279 52 331 60 272 (21) 292 66 227 Q1FY22 241 73 314 63 250 68 182 39 143

  33. Slide 33: Investment Banking

    Investment Banking Investment Banking League Table Market Share of Value and Volume Traded on Bursa (KLSE)1 Market Share1 As At Rank2 Trading Value Trading Volume 30 June 2022 DCM (Overall MYR 4.1% 3.9% 11.1% 4 3.6% Bonds) 3.2% 3.2% Islamic Sukuk 11.0% 4 4.8% 4.5% 4.9% 4.3% 4.0% Unit Trust 7.9% 5

  34. Slide 34: Investment Banking

    Investment Banking Investment Banking Income Statement YoY Growth  11%  (27%)  (23%)  8%  (45%)  86%  (46%)  (51%)  (45%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY23 13 62 75 44 31 (0) 31 6 25 Q1FY22 12 85 97 41 56 (2) 58 13 45 Q1F

  35. Slide 35: Retail Banking

    Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth:  59% Total Income YoY Growth:  9%  5% RM 446 mil  14%  2%  7% Others 3% Auto Retail SME 13% 9%  (31%) Wealth COOP & 5% ASB 162 Financing Retail SME Auto 18% 146 9% 7% ≈ 135

  36. Slide 36: Retail Banking: Cards in circulation

    Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth:  (4%) Merchant volume (RM'mil) QoQ Growth:  19% YoY Growth:  74% YoY Growth:  (23%) Merchants in force ('000) QoQ Growth:  (1%) YoY Growth:  (1%) 35 35 35 35 35 1,381 3,945 1,192 1,223 3,341 3,328 956 915 2,261 2,

  37. Slide 37: Retail Banking

    Retail Banking Retail Banking Income Statement YoY Growth  7% (3%)  5%  6%  5%  (11%)  9%  8%  9% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY23 381 65 446 216 230 38 192 46 146 Q1FY22 357 67 424 204 220 42 177 43 135 Q1FY23 PAT Q1FY2

  38. Slide 38: Business Banking

    Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) YTD Growth:  2% QoQ Growth:  (31%) YoY Growth:  4% Non-trade Trade 18,736 19,053 18,070 17,329 17,374 5,172 5,300 4,676 4,675 4,945 FY22: 278 12,653 12,699 13,125 13,564 13,753 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Customer

  39. Slide 39: Business Banking

    Business Banking Business Banking Income Statement YoY Growth  10%  12%  11%  35%  3%  (14%)  7%  20%  4% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY23 122 33 156 46 110 19 90 21 69 Q1FY22 111 30 141 34 107 22 84 18 66 Q1FY23 PAT Q1F

  40. Slide 40: Islamic Banking

    Islamic Banking Islamic Banking Income Statement YoY Growth  3%  6%  2%  (34%)  38%  40%  37% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ Q1FY23 268 77 191 62 129 29 100 Q1FY22 260 73 187 93 94 21 73 Q1FY23 PAT Q1FY22 PAT Positive growth in Q1FY23 Contraction in Q1FY23 K

  41. Slide 41: General Insurance

    General Insurance General Insurance Loss Ratio and Combined Ratio PBT and PAT (RM’ mil) Loss Ratio Combined Ratio 92% 93% 90% 89% YoY PBT Growth:  (59%) 84% 85% PBT PAT YoY PAT Growth:  (59%) 260 262 242 214 58% 60% 56% 55% 54% 53% FY19 FY20 FY21 FY22 Q1FY22 Q1FY23 Gross Premium Mix and Growth (RM

  42. Slide 42: Insurance and Group Funding & Others

    Insurance & Others Insurance and Group Funding & Others Income Statement – Insurance (General, Life & Takaful) YoY Growth  (39%)  7%  (69%)  (>100%)  (67%)  (62%)  (68%) RM'mil Total Income Expenses PBP Impairment PBT Tax PAT Q1FY23 115 79 36 (2) 38 6 32 Q1FY22 187 74 113 ≈ 113 16 98 Income S

  43. Slide 43: Shareholding structure as of 30 June 2022

    Corporate Structure Shareholding structure as of 30 June 2022 21.6%1 AmCorp 11.8% EPF 9.5% PNB 8.8%2 Others 48.3% Based on ROD dated 30 June 2022 AMMB Holdings Berhad Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful 100% AMAB Holdings Sdn Bhd 100% AmBank (M

  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 / YTD growth refers to Q1FY23 vs Q4FY22

AMMB Holdings Berhad — Q1 FY2023 Earnings Presentation on 6ix