Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Maybank Group — Q3 FY2008 Earnings Presentation
19 slides from Malayan Banking Bhd's earnings presentation, May 14, 2008
Slide 1: Maybank Group Financial Results Third Quarter FY08
Maybank Group Financial Results Third Quarter FY08 Analyst Conference Call 14 May 2008 Vf1
Slide 2: Operating Environment
Operating Environment Domestic Conditions Growth expectations have been trimmed compared to previous quarter • Export sector adversely impacted by slowing US and Global economy. • Domestic sector continues to be resilient but faces potential threat of inflation from rising food prices and possibly f
Slide 3: Performance Highlights
Performance Highlights Commercial banking franchise continues to show steady growth with Net Interest Income growing 6.3% YTD FY08 compared to previous corresponding period. YTD March 2008 pre-tax profit rose to RM3.07 billion (+1.2% yoy). Net profit of RM2.23 billion rose 4.7% yoy. Net Income
Slide 4: Earnings Highlights
Earnings Highlights 3Q FY07 2Q FY08 3Q FY08 9m FY07 9m FY08 31-Mar 31-Dec 31-Mar 31-Mar 31-Mar RM million 2007 2007 2008 QoQ YoY 2007 2008 YoY Net interest income 1,293 1,415 1,350 -4.6% 4.4% 3,834 4,076 6.3% Islamic Banking income 189 214 268 25.1% 41.6% 662 692 4.5% Non-interest income 681 636 634
Slide 5: Net Income growth
Net Income growth +2.4% yoy +6.4% RM million Net Income growth was 8,000 +4.1% yoy 6,491 6,648 6,582 7,002 hampered by decline in +11.3% -0.6% qoq 7,000 662 692 Non-Interest Income due +2.9% Islamic Banking income to greater revaluation 6,000 Non-interest income losses. 5,000 1,995 1,881 Net inter
Slide 6: Non-Interest Income
Non-Interest Income 3Q FY07 2Q FY08 3Q FY08 QoQ YoY YTD FY07 YTD FY08 YoY Mar 07 Dec 07 Mar 08 Change Change Mar 07 Mar 08 Change Non Interest Income (Transactional – Customer Franchise) Commissions 169.43 179.67 170.78 (0.05) 0.01 487.69 529.23 8.5% Service charges and fees 165.13 196.06 169.90 (0.
Slide 7: Net Interest Income and Margins
Net Interest Income and Margins Net Interest Income for YTD +4.4% yoy +6.3%. yoy March 2008 grew RM242 m or 6.3% on the back of a larger -4.6% qoq RM million gross loan base. 4,000 Net Interest Margin held steady at 2.72% from the 3,500 preceding quarter due better 2.80% Net Interest Margin asse
Slide 8: Overhead Expenses
Overhead Expenses +12.2% yoy +15.0% yoy +2.1% qoq • YTD FY08, total overhead +42.2% +13.3% +11.3% expenses grew 12.2% yoy (excluding insurance claims) +13.3% +28.9% -11.3% RM million +26.4% • YTD FY08, the increase in +13.2% -6.4% RM million 3,500 overheads was mainly due to: 1,200 +7.7% +12% +12.6%
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights • Total assets increased Ann. by 1.2% on annualised (RM billion) Jun 07 Mar 08 Growth basis. Cash and short-term funds 37.6 33.8 -13.5% • Net loans grew 10.1% Deposits and placements with FI 17.3 10.7 -50.9% anualised while Securities Portfolio 33.7 35.9 8.6% customer deposi
Slide 10: Loans Growth
Loans Growth Jun 07 Mar 08 Ann. • Gross loans grew at an (RM billion) % chg % chg annualised 9.7% for YTD FY08 Domestic Operations 108.9 113.9 4.6% 6.1% • Consumer segment slowed due to a contraction in residential of which: Consumer 53.3 56.4 5.8% 7.8% loans, although auto loans Securities 9.3 10.1
Slide 11: Customer Deposits Growth
Customer Deposits Growth +17.5% annualised +1.3% qoq +31.2% +5.5% • YTD FY08, customer deposits +2.6% moderated from 23.4% in 1H -3.4% RM million -1.3% FY08 to 17.5% (annualised +1.6% basis). 200 185.2 182.8 177.1 180 • Low cost deposit, consisting of 163.7 36.1 38.1 savings and demand deposits, 160
Slide 12: Segment Reporting: Group
Segment Reporting: Group % to % to % 9m FY07 9m FY08 Revenue Revenue Chg Consumer Banking 2,617.6 39.8 2,961.8 42.3 13.1 Corporate, Business & Treasury 2,468.7 37.5 2,411.4 34.4 (2.3) International Banking 961.2 14.6 1,082.7 15.5 12.6 Insurance & Takaful 516.8 7.9 532.6 7.6 3.1 Mgmt/Corp Support 17.
Slide 13: Asset Quality
Asset Quality Gross and Net NPL 6.5% • Asset quality continues to 6.52% Gross NPL improve 5.55% 5.31% 5.12% 4.8% 4.80% • Loan loss provision for YTD 3.6% 3.56% FY08 of RM452 million was 3.03% Net NPL 2.84% 2.4% reduced by 30.2% yoy. 2.69% 2.43% • Gross NPL declined to 4.80% from 5.55% in June 2007 w
Slide 14: Dividend and Capital
Dividend and Capital 80 Dividends • No additional interim dividend has been declared. 60 • Final dividend to be determined upon 28 sen 32 sen announcement of full year results (Final) (Final) after taking into account optimum 40 capital structure, business growth requirements, and in consultation 40
Slide 15: Maybank's Long Term Group Strategy
Maybank’s Long Term Group Strategy Group Vision To become the first choice financial partner in the target markets and countries we serve Group Mission Building Enduring Relationships Through Value Creation for Stakeholders Current term Medium term Long term • Entrench the domestic • To be the prefe
Slide 16: Corporate Developments
Corporate Developments Date Corporate Development 7 May 2008 Maybank & ICD sign MOU in relation to global takaful business 5 May 2008 Maybank Acquires Strategic Stake In Pakistan’s MCB Bank 1 May 2008 Dato' Sri Abdul Wahid Omar joins Maybank as President and CEO 15 Apr 2008 Maybank Alpha Centurion C
Slide 17: Snapshots of the Acquisitions
Snapshots of the Acquisitions Branches in: Snapshot Snapshot London Existing presence New York Expanded presence (2008) Bahrain Acquisition of 15% stake in An Binh Acquisition of 15% stake in MCB for RM2.17bn and rights to Beijing for RM430m and option to acquire up to 5% stake acquire another
Slide 18: Key Take Aways
Key Take Aways • Core commercial banking business recorded steady growth but revaluation losses from derivatives continue to adversely impact net income growth. • Nevertheless, transactional non-interest income growth remained strong at 16.0% due to continued expansion in customer franchise. • Profi
Slide 19: Q & A Session
Q & A Session www.maybank2u.com 19