Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — Q1 2022 Earnings Presentation

48 slides from Malayan Banking Bhd's earnings presentation, May 26, 2022

  1. Slide 1: Investor Presentation: Financial Results First Quarter FY2022

    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 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

  3. Slide 3: Maybank Group 1Q FY2022 Overview (YoY)

    Maybank Group 1Q FY2022 Overview (YoY) $ Softer Income Performance Net fund based income grew 5.3% YoY: NIM rose 3 bps on lower interest expense as Group Net operating Group CASA CASA grew 9.6% to CASA ratio of 46.2%. Group loans up 5.2% mainly driven by better income: +9.6% YoY performance across M

  4. Slide 4: Continued Supporting Customers in the Recovery Phase

    Continued Supporting Customers in the Recovery Phase • 12.5% of total CFS loans outstanding (o/s) % of Loans Under Repayment Assistance, Relief and R&R Programmes Malaysia is under relief programmes: Against Respective Total Home Market Loans % of Outstanding As at As at o Deferred instalment is 47%

  5. Slide 5: Digital Solutions and Platforms

    Digital Solutions and Platforms Key Launches in 1Q FY2022 Maybank2u Monetary Transaction Value (RM bln/IDR tln/SGD bln) QoQ: 0.0% 208.73 213.74 213.79 YoY: 2.4% MAE app MAE app 17.84 21.61 21.94 QoQ: 1.5% YoY: 23.0% Digital Personal Loan 4.58 4.13 4.29 QoQ: 3.9% Approved ~498 loans worth YoY: (6.2)%

  6. Slide 6: Progressing Sustainably

    Progressing Sustainably Highlights as at 31 March 2022 Sustainable Improving Lives Carbon Neutral Living Finance Across ASEAN Position Sustainability FY2022 target: FY2022 target: FY2022 target: FY2022 target: RM9 bil 150k households 40% reduction 1 mil hours from 2019 baseline RM3 bil >82k ~10% >44

  7. Slide 7: Table of Contents

    Table of Contents Executive Summary 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

  8. Slide 8: P&L Summary: 1Q FY2022 (YoY)

    P&L Summary: 1Q FY2022 (YoY) Growth of 5.3% in fund based income offset by lower fee based income driven by weaker and volatile markets More details 1Q 1Q 4Q on RM million YoY QoQ FY2022 FY2021 FY2021 s.22 Net fund based income * 4,893.9 4,648.2 5.3% 4,868.6 0.5% s.10/22 Net fee based income * 1,560

  9. Slide 9: Net Fund Based Income: 1Q FY2022 (YoY) (1/2)

    Net Fund Based Income: 1Q FY2022 (YoY) (1/2) Continued CASA growth across all home markets, supporting loans expansion in Malaysia, Singapore and GB Indonesia Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  +5.2%  +4.9%  +7.2%  (2.0)% 329.8 345.9

  10. Slide 10: Net Fund Based Income: 1Q FY2022 (YoY) (2/2)

    Net Fund Based Income: 1Q FY2022 (YoY) (2/2) NIM expands 3 bps YoY on reduced deposit cost Net Interest Margin (%) QoQ (Ann.) Trend 5 Year Trend 2.37 2.26 2.32 2.34 2.31 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2.33 2.32 2.34 2.27 2.10 FY2018 FY2019 FY2020 FY2021 1Q FY2022 9

  11. Slide 11: Net Fee Based Income: 1Q FY2022 (YoY)

    Net Fee Based Income: 1Q FY2022 (YoY) Weaker and volatile markets result in realised and unrealised losses on securities investment portfolio 1Q 4Q 1Q RM million QoQ YoY FY2022 FY2021 FY2021 Commission, service charges and fees 802 893  (10.2%) 1,026  (21.8%) Investment & trading income (39) (85)

  12. Slide 12: Overheads: 1Q FY2022 (YoY)

    Overheads: 1Q FY2022 (YoY) Low single digit cost growth results in CIR of 45.5% for 1Q FY2022, tracking full year CIR guidance of 45% to 46% 1Q 1Q 4Q RM million YoY QoQ FY2022 FY2021 FY2021 Personnel Costs 1,741.3 1,722.7 1.1% 1,692.8 2.9% Establishment Costs 463.1 483.2 (4.2)% 472.0 (1.9)% Marketin

  13. Slide 13: Asset Quality (1/2)

    Asset Quality (1/2) Annualised net credit charge off rate of 32 bps within full year guidance of 40 bps to 50 bps Allowances for losses on loans 137.8% 122.2% 124.3% 113.9% 110.9% Loan loss coverage incl. Regulatory Reserve 127.0% 112.6% 114.8% 111.9% Loan loss coverage 106.4% ECL (RM million) 1Q FY

  14. Slide 14: Asset Quality (2/2)

    Asset Quality (2/2) Group GIL reduced to 1.95% QoQ on some write-offs and as newly impaired loan formation remains low Group Gross Impaired Loans (GIL) Ratio Composition GIL Ratio Components Mar 2022 Dec 2021 Sep 2021 Jun 2021 Mar 2021 Non Performing Loans (NPL) 1.59% 1.28% 1.63% 1.92% 1.98% Restruc

  15. Slide 15: Asset Quality by Line of Business in Home Markets

    Asset Quality by Line of Business in Home Markets Most segments improved QoQ; some of Indonesia’s business GILs remain impacted by lower loan outstanding balances Consumer Mortgage Auto Finance Credit Cards 3.56% 2.78% 3.03% 5.98% 2.40% 1.85% 5.85% 5.95% 1.54% 5.41% 5.18% 1.31% 1.09% 0.76% 1.83% 1.7

  16. Slide 16: Strong Liquidity & Capital Positions: March 2022

    Strong Liquidity & Capital Positions: 31 March 2022 Healthy Group LCR & NSFR levels, while Group CET1 capital ratio at 14.95% (assuming 85% reinvestment rate) After proposed dividend, Liquidity Risk Indicators Before proposed dividend assuming 85% reinvestment rate LCR LDR NSFR 19.52% 19.06% 18.37%

  17. Slide 17: Table of Contents

    Table of Contents Executive Summary 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

  18. Slide 18: Market Outlook

    Market Outlook 2022 industry outlook for our home markets KEY INDICATORS OUTLOOK • 1Q2022 GDP growth strengthened to +5.0% YoY (4Q2021: +3.6% YoY) as 2022 (f) 2021 economic recovery gained momentum on resumption of business activities > GDP 6.0% 3.1% and reopening of international border on April 1s

  19. Slide 19: Maybank Performance Outlook

    Maybank Performance Outlook Group’s Key Priorities and Guidance for FY2022 • Leverage fee-based income opportunities in wealth management, global markets, investment banking, asset Income management and insurance; albeit YTD performance has been impacted by market volatility. Growth • Accelerate pro

  20. Slide 20: Table of Contents

    Table of Contents Executive Summary 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

  21. Slide 21: International & Malaysia Portfolio Mix 1Q FY2022

    International & Malaysia Portfolio Mix 1Q FY2022 Net Operating Income Profit Before Tax Gross Loans * 1Q FY2022 (Jan 22 – Mar 22) Overseas: 5.9% Overseas: 6.2% 5.7% Overseas: 10.0% 7.9% 32.0% 20.5% 38.5% 5.3% 8.6% 16.1% RM6.45 RM2.97 RM562.0 billion billion 25.3% billion 68.0% 61.5% 79.5% Malaysia S

  22. Slide 22: Segmental Performance of Businesses: 1Q FY2022 (1/2)

    Segmental Performance of Businesses: 1Q FY2022 (1/2) Net Operating Income 1Q FY2021 Group Global Banking  (7.5)%  (5.4)% 1Q FY2022 1Q FY2021: 2,791 1Q FY2022: 2,582 6,825 6,454  +5.7%  (3.4)%  (24.9)%  (42.1)%  +2.2% 3,495 3,696 RM million 2,294 2,216 457 343 386 394 40 23 Total Group Communi

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

    Segmental Performance of Businesses: 1Q FY2022 (2/2) Net Fund Based Income 1Q FY2021 Group Global Banking  +8.9% 1Q FY2022  +5.3% 1Q FY2021: 1,452 1Q FY2022: 1,581 4,648 4,894  +10.0%  +8.4%  +18.7%  (5.0)%  +9.7% 2,913 RM million 2,647 1,381 1,497 70 83 318 349 1 1 Total Group Community Grou

  24. Slide 24: Income Statement for Insurance and Takaful Business

    Income Statement for Insurance and Takaful Business RM million 1Q FY2022 1Q FY2021 YoY 4Q FY2021 QoQ Net interest income 348.7 318.0 9.7% 362.8 (3.9)% Net earned premiums 2,356.1 2,529.2 (6.8)% 2,167.6 8.7% Other operating income (406.1) (883.6) (54.0)% (45.0) >100% Total operating income 2,298.7 1,

  25. Slide 25: Group Gross Loans Growth: March 2022

    Group Gross Loans Growth: 31 March 2022 % of 31 Mar 31 Dec YTD 31 Mar QoQ YoY Portfolio 2022 2021 Annualised 2021 Group Gross Loans 562.0 553.8  1.5%  6.0% 534.4  5.2% Malaysia (RM billion) 62% 345.9 340.1  1.7%  6.8% 329.8  4.9% Community Financial Services (reported) 76% 263.0 259.7  1.3% 

  26. Slide 26: Malaysia Loans Growth: March 2022

    Malaysia Loans Growth: 31 March 2022 % of 31 Mar 31 Dec YTD 31 Mar RM billion QoQ YoY Portfolio 2022 2021 Annualised 2021 Community Financial Services (reported) 76% 263.0 259.7  1.3%  5.1% 248.8  5.7% Community Financial Services (rebased)¹ 76% 263.0 259.4  1.4%  5.5% 248.8  5.7% Consumer 61%

  27. Slide 27: Group Deposits Growth: March 2022

    Group Deposits Growth: 31 March 2022 % of 31 Mar 31 Dec YTD 31 Mar QoQ YoY Portfolio 2022 2021 Annualised 2021 Group Gross Deposits 632.5 617.7  2.4%  9.6% 599.6  5.5% Malaysia (RM billion) 63% 397.7 391.9  1.5%  5.9% 370.3  7.4% Savings Deposits 17% 67.1 67.4  (0.4)%  (1.6)% 62.5  7.3% Cur

  28. Slide 28: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 89.0% 89.3% 88.9% 89.5% 88.7% 89.7% 89.7% 87.4% 87.5% 87.7% 47.1% 46.0% 46.2% 45.4% 49.0% 50.2% 49.3% 49.3% 48.3% 44.5% 42.7% 43.2% 42.5% 42.0% 41.1% 43.6% 44.8% 44.0% 43.2% 42.5% Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Mar 21 Jun 21 Sep 21 Dec

  29. Slide 29: 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, 5% HKD, 6% 562.0 553.8 SGD, IDR, 5% 534.4 Equity, 11% 8% JPY, CNY, 4% 14% CNH, 4% 411.5 406.6 Borrowin

  30. Slide 30: Specific Asset Exposures as at March 2022

    Specific Asset Exposures as at 31 March 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 Residential, 2.98% 2.24% 0.49% 0.08% 0.17% Others, 38.0% 2

  31. Slide 31: Key Operating Ratios

    Key Operating Ratios % 1Q FY2022 1Q FY2021 YoY 4Q FY2021 QoQ Return on Equity 4 9.4 11.7 (2.3)% 10.0 (0.6)% 4 Net Interest Margin (bps) 2.34 2.31 3 bps 2.32 2 bps Fee to Income Ratio 24.2 31.9 (7.7)% 22.7 1.5% Loans-to-Deposit Ratio 1 88.7 89.0 (0.3)% 89.5 (0.8)% Cost to Income Ratio 2 45.5 41.3 4.2

  32. Slide 32: Table of Contents

    Table of Contents Executive Summary 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

  33. Slide 33: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Market share Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Loans Total consumer (Household) 18.2% 18.2% 18.1% 18.2% 18.2% Auto (Hire Purchase + Block Discounting + Floor Stocking) 30.4% 30.3% 30.4% 30.6% 30.7% Total mortgage * 14.6% 14.6% 14.6

  34. Slide 34: 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 5.7% YoY and 1.3% QoQ Total Financial Assets grew 5.3% YoY to RM405.1 billion contributed by investments growth of 11.2% and loan growth of

  35. Slide 35: Table of Contents

    Table of Contents Executive Summary 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

  36. Slide 36: 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 3.4% Group Securities Portfolio¹ grew 8.1% YoY YoY to RM83.0 billion RM billion  +8.1% YoY 49.0 235.1 222.0 223.9 10.2 Term Loan 217.5 48.3 2.5% YoY 209.0 9.7 9.

  37. Slide 37: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 1Q FY2022 Total Income Breakdown by Country 1Q FY2022 Fee-based Income for Malaysia Others Underwriting & Placement Fees Hong Kong 7% 12% Arrangers' Fees 2% Advisory Fees 11% Phillipines 3% 1% Agency/ Malaysia Guarantee Fees Indonesia 37

  38. Slide 38: Table of Contents

    Table of Contents Executive Summary 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

  39. Slide 39: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 1Q FY2022 1Q FY2021 YoY 4Q FY2021 QoQ Net fund based income 173.82 142.95 21.6% 174.08 (0.1)% Net fee based income 82.16 95.75 (14.2)% 72.16 13.9% Net income 255.98 238.70 7.2% 246.24 4.0% Overhead expenses (117.12) (115.28) 1.6% (133.80) (12.5)% Operating

  40. Slide 40: 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 53.2% of total deposits % of 31 Mar 31 Dec 31 Mar  (3.3)% YoY SGD Billion QoQ YoY Portfolio 2022 2021 2021 51.8 48.0 50.1 Consumer - Time Deposits CFS 15.2 11.8 12.4

  41. Slide 41: Table of Contents

    Table of Contents Executive Summary 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

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

    Maybank Indonesia: P&L Summary IDR billion 1Q FY2022 1Q FY2021 YoY 4Q FY2021 QoQ Net Fund Based income 1,747 1,748 (0.1)% 1,768 (1.2)% Net Fee Based income 475 453 4.9% 616 (22.9)% Net income 2,222 2,201 1.0% 2,384 (6.8)% Overhead expenses (1,442) (1,421) 1.5% (1,212) 18.9% Personnel (689) (655) 5.3

  43. Slide 43: Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

    Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown % of 31 Mar 31 Dec 31 Mar Key Operating Ratio Mar 22 Dec 21 Mar 21 YoY IDR Trillion QoQ YoY Portfolio 2022 2021 2021 Profitability & Efficiency CFS 64.6% 64.3 63.8 0.7% 65.2 (1.5)% Return

  44. Slide 44: Table of Contents

    Table of Contents Executive Summary 2-5 1Q FY2022 Financial Performance 7-15 Prospects & Outlook 17-18 Appendix: 1. Financial Performance 20-30 2. Community Financial Services 32-33 3. Global Banking 35-36 4. Maybank Singapore 38-39 5. Maybank Indonesia 41-42 6. Other Segments 44-46

  45. Slide 45: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing1 grew to RM226.1 billion 9% 68.6 Mar 21 RM million 1Q FY2022 1Q FY2021 YoY 63.1 Mar 22 10% 8% Total Income 1,738.3 1,677.3 3.6% 50.4 45.9 45.8 42.3 4% Profit Before Tax 1,049.

  46. Slide 46: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share Market Share by Product (Malaysia) 30.7% 30.7% 30.3% 30.4% 30.4% Key Products Mar 22 Mar 21 Automobile Financing 48.3% 48.3% 27.4% 27.4% 27.4% 27.2% 27.5% Home 25.9% 26.7% Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Term Financing 27.2% 27.2% Financi

  47. Slide 47: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Net Adjusted Premium/Contribution Life & Family (New Business) Market Share (Malaysia) Single Premium  (40.4)% Regular Premium 20.3% 19.1% 19.4% 20.0% (3.2)% Credit Premium  24.8% 14.2% 16.7% 18.3% 15.5% No. 4 in Life/Family Group Premium 12.7% (New Bus

  48. Slide 48: 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

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