Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q1 FP2011 Earnings Presentation
43 slides from Malayan Banking Bhd's earnings presentation, Nov 14, 2011
Slide 1: Financial Results 1st Quarter FP2011
Financial Results 1st Quarter FP2011 ended 30 September 2011 Analyst Briefing 14 November 2011
Slide 2: Executive Summary
Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects 1
Slide 3: Key Highlights
Key Highlights PATAMI for 1QFP11 grew 25.1% YoY and 11.4% QoQ to RM1.29 billion supported by strong revenue and pre-tax profit growth from all business segments. Revenue R grew 17.6% 6 as almost l t allll business b i segments t recorded d d double d bl digit di it revenue growth. QoQ revenue
Slide 4: Key Performance Indicators for 1Q FP11
Key Performance Indicators for 1Q FP11 Headline KPIs Target 1Q FP11 achievements Return on Equity 16% 15.8% (annualised) Financial Assets Growth 12% 20.5% (annualised) Other targets Target 1Q FP11 achievements Group Loans Growth 12% 17.6% • Malaysia 12% 7.2% • Singapore 8% 41.0% • BII 24% 26.6% Grou
Slide 5: Financial Performance
Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects 4
Slide 6: 1Q FP11 PATAMI rose 25.1% YoY to RM1.29 billion
1Q FP11 PATAMI rose 25.1% YoY to RM1.29 billion Quarter 1Q FP11 4Q FY11 QoQ 1Q FY11 YoY 30 Sep 11 30 Jun 11 Change 30 Sep 10 Change Net interest income 1,873.6 1,826.7 2.6% 1,774.5 5.6% Net Fund based income (Islamic Banking) 438.5 365.4 20.0% 294.2 49.0% Total net fund based income 2,312.1 2,192.1
Slide 7: Strong Balance Sheet: Total Assets grew 18.1% annualised
Strong Balance Sheet: Total Assets grew 18.1% annualised Annualised YoY RM billion Sep 11 Jun 11 Sep 10 Growth Growth Cash and short‐term funds 40.7 38.8 20.0% 27.1 50.2% Deposits with financial institutions 6.1 10.3 ‐164.8% 15.7 ‐61.6% Securities purchased under resale agreements 0.1 ‐ ‐ 0.2 ‐61.9%
Slide 8: Gross loans grew 17.6% annualised
Gross loans grew 17.6% annualised Group loans growth driven by strong overseas loans growth of 41.4% with Singapore at 41.0% and BII at 26.6%. Domestically, loans grew 7.2% annualised and 18.7% YoY. Annualised YoY RM billion Sep 11 Jun 11 Sep 10 Growth Growth Community Financial Services 115.2 112.5
Slide 9: Deposits grew 14.9% annualised
Deposits grew 14.9% annualised Deposits i grew by b 14.9% annualised li d driven di mainly i l bby Si Singapore ((+36.5%) 6 ) and d Malaysia l i ((+11.6%). 6 ) Malaysia Singapore BII Group Annualised Annualised Annualised Annualised RM bil SGD bil Rupiah Tril RM bil Growth Growth Growth Growth Fixed
Slide 10: Asset Quality improved YoY with loan loss declining 62.7%
Asset Quality improved YoY with loan loss declining by 62.7% to RM98.7 million and Net Impaired Loan ratio declining to 2.19% Allowance for losses on loans Net Impaired Loan Ratio 2.99% 264.7 2.83% ‐62.7% YoY 2.74% +107.0% QoQ 2.39% 117.5 98.7 2.25% 2.18% 72.2 47.7 1Q11 2Q11 3Q11 4Q11 1Q FP11 Day 1
Slide 11: Non-Interest Income grew 28.7% YoY to RM1.40 billion
Non-Interest Income including Net Income from Insurance Business and Fee Income from Islamic operations grew 28.7% YoY to RM1.40 billion +28 1% +28.1% 1,223 1Q FY11 1Q FP11 +46 1% +46.1% 954 860 RM million 588 +69.2% ‐262.7% +5814.2% +186.4% +11.2% + 73.5% 299 235 186 139 132 86.8 96.5 (5) 46 45.3 7
Slide 12: Overheads grew 25.7% YoY but declined 3.8% QoQ
Overheads grew 25.7% YoY but declined by 3.8% QoQ Admin, general expenses & fees & brokerage Marketing Expenses 1Q FP11 Overhead Expenses IT Expenses QoQ YoY +25.7% YoY Personnel costs ‐0.9% 23.1% Personnel costs IT Expenses ‐18.2% 18.6% Marketing Expenses ‐26.3% 11.3% ‐3.8% QoQ Admin, general expen
Slide 13: Capital Adequacy remained strong
Capital Adequacy remained strong Group 14.72% 15.36% 14.86% 14.25% 11.21% 11.84% 10.23% 10.83% 30 Jun 11* 30 Jun 11** 30 Sep 11* 30 Sep 11** Core capital ratio Risk‐weighted capital ratio * Full electable portion paid in cash ** Full electable portion reinvested Bank 12.49% 13.32% 12.79% 13.58% 30 J
Slide 14: Maybank Group: Key Ratios
Maybank Group: Key Ratios 1Q FP11 4Q11 3Q11 2Q11 1Q11 Net Interest Margin 2.46% 2.50% 2.57% 2.70% 2.69% Return on Equity 15.8% 15.1% 15.5% 15.7% 14.6% Fee to Income Ratio 37.9% 42.3% 33.8% 33.5% 31.7% Cost to Income# 50.4% 51.5% 49.0% 49.8% 47.6% Loan‐to‐Deposit Ratio 90 5% 90.5% 90 1% 90.1% 89 4% 8
Slide 15: Business Review
Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects 14
Slide 16: Revenue and PBT growth seen in all segments
Revenue and PBT growth seen in all segments, led by CFS, GWB, Insurance and International Banking +17.6% Global Wholesale Banking (GWB) +69.4% 3,709 Revenue (RM million) 1Q FY11 1Q FP11 3,154 +18 8% +18.8% 1,603 +77.3% +12.3% +566.3% +22.6% +2.8% 1,349 1,178 961 472 425 240 420 297 193 45 187 Total
Slide 17: Revenue Growth Contribution
Revenue Growth Contribution Net Financing N t Fi i IIncome (including (i l di IIslamic l i B Banking ki IIncome)) +9.3% 1QFY11 1QFP11 Global Wholesale Banking (GWB) +47.6% 1,218 1,114 % +14.4% +53.4% +2.1% +1,702.9% 752 ‐37.9% 658 286 187 159 162 4 67 21 13 Community Financial Corporate Banking Glob
Slide 18: Revenue and PBT by geography
Revenue and PBT by geography 1QFP11 Revenue Profit Before Tax Gross loans* (Jun 11 – Sep 11) International: International: International: 36% 23% 36% 4% 6% 3% 6% 8% 15% 14% RM1.76b 22% RM273.7b RM3 71b RM3.71b 18% 64% 64% 77% Malaysia Singapore 4% 16% 12% 68% Indonesia Others 1QFY11 (Jun 10 – Sep 10
Slide 19: Community Financial Services: Mortgage grew 17.6%
Community Financial Services: Mortgage grew 17.6% with strong growth in approvals Strong growth despite intense competition Asset quality continued to improve +17.6% annualised (Industry: 14%) 5.0% 4 5% 4.5% 38.6 40.3 3.9% 35.2 5.0 5.3 3.3% 4.3 2.9% 30.9 33.6 35 0 35.0 Sep 10 Dec 10 Mar 11 Jun 11 Se
Slide 20: Community Financial Services: Hire Purchase improved
Community Financial Services: Hire Purchase improved in loans growth and market share Hire purchase grew 9 9.4% 4% in Sep 11 Asset quality remained stable with 2.5% stable market share 19.0% +9.4% annualised 2.0% 18.8% 18.8% 18.7% 18.5% 25 5 25.5 26 1 26.1 22.8 1.5% 18.3% 18.0% 1.0% 17.7% 17.5% 0.5%
Slide 21: Community Financial Services: Cards continued to grow
Community Financial Services: Cards continued to grow above market growth Cards Market Share Cards performance outperforming industry Sep 11 Sep 10 YoY Maybank Industry* Cardbase 17.7% 16.4% Cardbase 0.4% ‐6.8% 6.8% Billings 23.8% 22.6% Billings 22.5% 16.5% Receivables 15.0% 14.1% Receivables 17.1%
Slide 22: Business Banking and SME: Deposits grew 59.2%
Business Banking and SME: Deposits grew at 59.2% annualised Loans declined marginally at 1 1.6% 6% annualised Strong deposits growth at 59 59.2% 2% annualised ‐1.6% annualised +59.2% 70.2 annualised 64 7 64.7 25.1 25.1 58.9 24.7 24.6 24.2 47.3 41.2 M billion M billion RM RM Sep 10 Dec 10 Mar 11 Jun
Slide 23: Global Wholesale Banking: Loans growth driven by term loans
Global Wholesale Banking: Loans growth driven by term loans Totall GWB lloans: annualised li d growth h Strong position in terms of Trade Finance Market Share 25.1% 11.6 25.6% Trade Finance ‐27.5% 24.5% 12.5 23.3% Sep 11 22.5% 22.6% Jun 11 Short Term Revolving 18.5 billion Jun 10 Sep 10 Dec 10 Mar 1
Slide 24: Global Markets: Revenue growth supported by non interest income
Global Markets: Revenue growth supported by non interest income Growth in Revenue Credit Rating for Private Debt Securities in Malaysia +12.3% 472.1 420.4 310.0 261.6 RM million +18.5% AAA, 35.7% AAA A and below, 35.4% ‐AA to AA 158.8 162.2 A and below +2.1% 2.1% 1QFY11 1QFP11 ‐AA to AA, 28.9% Net i
Slide 25: Fee based income continued strong growth at 85.7%
Fee based income continued strong growth at 85.7% Fee based Income rose 85.7% 85 7% YoY 1Q FP11 Fee‐based Fee based Income Segmentation Underwriting/ Agency/ 1Q12 86.2 Placement Guarantee 8% 17% FY11 228 0 228.0 Miscellaneous FY10 173.3 1% FY09 98.2 g Arrangers' FY08 198.3 Brokerage 18% 34% FY07 97.
Slide 26: Investment Banking: Recent Notable Deals
Investment Banking: Recent Notable Deals Equity Capital Market July 2011 July 2011 July 2011 RM2,662.0 mil RM74.4 mil RM392.3 mil B Bumi i Armada A d Joint Principal Adviser Sole Adviser, Adviser Joint Global Co-ordinator Sole Placement Underwriter and Joint Bookrunner Agent Bookrunner Joint Managin
Slide 27: Maybank Islamic sustained strong financing growth of 24%
Within Group Islamic Banking business, Maybank Islamic sustained strong financing growth of 24% l i Banking Group Islamic ki Income and d PBT** ** Maybank Islamic financing (24% annualised) Total Gross Financing = RM50.4 billion as at Sep 2011 YoY RM million 1Q FP11 1Q FY11 +13% +31% +17% Growth 16.
Slide 28: Etiqa: No. 1 Position in Life/Family and General Business
Etiqa: No. 1 Position in Life/Family (new business) and General Business Combined Gross Overall Loss Ratio Lower Than Industry Industry Overall GrossPremium Premium +15% 15% 58.2% (Etiqa) vs. 59.0% (Industry) 59.0% Single Premium ‐65% 33.4% Regular Premium +9% 27.1% Fire 19.8% 29.5% Credit 14% ‐14%
Slide 29: Country Review
Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects 28
Slide 30: Singapore: PBT surged 43%
Singapore: PBT surged 43% boosted by higher fee income and lower provision Revenue and PBT rose 33% and 43% YoY respectively Diversified Loan Portfolio 41% YoY annualised Others (Consumer) YoY 24.2 SGD million 1Q FP11 1Q FY11 22.0 Growth 1.1 Car Loans 17 8 17.8 1.0 1 0 33 3.3 Consumer Net fund based
Slide 31: BII: Profit before tax grew 251.2% YoY
BII: Profit before tax grew 251.2% YoY Income Statement Jul 11-Sep 11 Jul 10-Sep 10 YoY Rp Billion Contribution Contribution % Change Interest income 2,047 1,688 21.3% Interest expense (1,041) (739) 40.9% Net interest income 1,006 949 6.0% Non-interest income 562 512 9.8% Gross Operating income 1,56
Slide 32: BII: Revenue grew 16.0% on 26.6% loans growth
BII: Revenue grew 16.0% on the back of 26.6% consolidated loans growth Group Revenue and PBT (Rp billion) for 9M11 (as reported in BII) Net Interest Margin +16.0% 4,712 4,063 5.89% 5.78% 5 67% 5.67% +13.6% 5.43% 5.28% 696 790 9M10 9M11 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Revenue PBT Sep’10 : before a
Slide 33: BII: Branches and touch points expansion on track
BII : Branches and touch points expansion on track Branches and ATM Asset A Quality Q li 1,088 3.5% 1,009 1,017 952 3.1% 893 806 844 2.6% 2.5% 748 787 2.5% 2.0% 327 337 344 346 1.7% 255 255 260 274 295 1.4% 1 4% 1.4% 1 2% 1.2% Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec
Slide 34: WOM: 7.3% growth in revenue, PBT impacted by provisions
WOM : 7.3% growth in revenue, whilst PBT impacted by provisions Revenue R and d PBT (R (Rp billion) billi ) Unit Financing +7.3% (In 000 unit) 1,198 486 1,116 424 368 374 ‐94.9% 118 178 50 9 9M10 9M11 New Used Total R Revenue PBT Sep 10 Sep 11 Asset Quality Financing Amount 3.41% % (In IDR bn) Gross
Slide 35: MCB Bank: Financial Highlights
MCB Bank: Financial Highlights YTD PBT increased i d 24.4% against i corresponding di Revenue and PBT period mainly contributed by 22% increase in net interest income on the back of higher KIBOR, +23.4% while non interest income rose 31% mainly due to the h increase i from f i investment i income,
Slide 36: An Binh Bank: Financial Highlights
An Binh Bank: Financial Highlights PBT declined due largely to the higher operating Revenue and PBT expenses and the increase in loan loss +27.6% provisioning, on the back of higher NPL. This if 1,257 offset by the increase in revenue by 27.6%, 27 6% 985 +24.4% VND Billion contributed by the incre
Slide 37: Economic Update and Prospects
Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects 36
Slide 38: Malaysia: Sustained growth for 2011
Malaysia: Sustained growth for 2011 Growth to be sustained at 4.5% in 2011 & 3.5% ‐ 4.0% in 2012 Inflation expected to rise to 3.1% in 2011 & 2.6% in 2012 (2010: 7.2%) (2010: 1.7%) 14 CPI and components (% YoY) 25 Quarterly GDP and annual growth rate Q2 GDP: +4% YoY September CPI: 20 12 +3.4% YoY 15
Slide 39: Malaysia: Banking Sector
Malaysia: Banking Sector Total Loans grew 13.8% YoY for September 2011 Total Deposits grew 12.6% YoY for September 2011 Total Loans Total Loans YoY Growth Total Deposits Total Deposits YoY Growth 1250 25% 1,000 Household YoY Growth Business YoY Growth 18% 1200 950 16% 1150 20% 900 RM billion RM bill
Slide 40: Singapore: Economic growth expected to moderate in 2012
Singapore: Economic growth expected to moderate in 2012 GDP growth forecast: 3% to 5% for 2011 and below 3% to 5% for Real R l GDP growth h ffor 2011 expected d to b be 3-5% for f 2012, with future economic growth expected to be between 3- 2011 (2010: 14.5% ) 4% over the next decade. 80 20 Infla
Slide 41: Indonesia: Continued growth of 6.4% in 2012
Indonesia: Continued growth of 6.4% in 2012 Real GDP Growth: ggrowingg faster ■ GDP growth is expected to reach 6.5% in 2011 and 6.4% in Sector Contribution (% of GDP Growth) 2012, higher than the growth of 6.1% in 2010 8.0 ■ Inflation rate will likely to stay soft at 4.56% due to easing commodity p
Slide 42: Prospects
Prospects Economic outlook l k for f theh global l b l economy remains challenging. h ll Although lh h externall demand d d could weaken in ASEAN, domestic demand should be generally resilient and continue to support credit growth. Loans L growthth in i Malaysia M l i is i expected t d to t be b
Slide 43: Thank You
Thank You Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) Company ) for information purposes only and does not purport to contain all the information that may be required to evaluate the Company or its financial position. No representation or warranty, expre
Malayan Banking Berhad (Maybank) — Q1 FP2011 Earnings Presentation on 6ix