Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Investor Day (July 2018)
35 slides from Malayan Banking Bhd's investor day presentation, Jul 2, 2018
Slide 1: Maybank Islamic Investor Day
Humanising Financial Services Maybank Islamic Investor Day Menara Maybank, Kuala Lumpur 2 July 2018 www.maybank.com 0 0
Slide 2: Table of Contents
Table of Contents Contents Page The Current Islamic Banking Landscape & Where It Is Today Islamic Banking Industry Developments in Malaysia 2 Islamic Banking Industry Growth in Malaysia and Indonesia 6 Maybank Group Islamic Banking M2020 Aspirations 10 Financials 11 Global Presence 16 Product Develo
Slide 3: Islamic Banking Milestones in Malaysia
Islamic Banking Milestones in Malaysia Islamic Banking in Malaysia started with the establishment of Lembaga Tabung Haji in 1963. Since then, the Central Bank has continuously strengthened regulatory standards to develop the Islamic Finance market. As an alternative banking, offering of Rapid growth
Slide 4: Islamic Financial Services Act 2013
Islamic Financial Services Act 2013 Islamic Banking Businesses in Malaysia are regulated by the Islamic Financial Services Act 2013. We are governed by both the regulatory authorities Bank Negara Malaysia (BNM) and the Security Commissions (SC). IFSA 2013 By definition in the Islamic Financial Key e
Slide 5: Recent Developments: SC Guidelines and BNM Strategy Paper
Recent Developments : SC Guidelines and BNM Strategy Paper The SC and BNM have recently released guidelines and strategy papers to encourage growth of Sustainable and Responsible Investment and Banking Products in the market. Malaysia is currently the largest Sustainable Responsible Investment (SRI)
Slide 6: Recent Development: BNM Strategy Paper Value-Based Intermediation
Recent Development : BNM Strategy Paper Value-Based Intermediation BNM has stated that the next level of growth for Islamic Banking is to implement value-based intermediation (VBI). Embed the culture of self- Support entrepreneurial discipline within the activities by providing operations and practi
Slide 7: Islamic Banking in Malaysia
Islamic Banking in Malaysia Share of global Shariah banking assets1 Malaysia continues to be one of the top three countries Rank Countries % dominating the global Islamic Finance market 1 Saudi Arabia 33.0 2 Malaysia 15.5 3 UAE 15.4 Global Islamic Finance Market* Size (USD billion) *Does not include
Slide 8: Islamic versus Conventional Banking in Malaysia
Islamic versus Conventional Banking in Malaysia Percentage of Islamic Contribution to Total Industry in 2010 Assets Financing Deposits According to Bank Negara Malaysia, Islamic financing 17% 18% 19% will account for 40% of total financing in 2020 Conventional Islamic 2017 2020 Percentage of Islamic
Slide 9: Islamic versus Conventional Banking in Indonesia
Islamic versus Conventional Banking in Indonesia According to OJK, the total assets* for Islamic Islamic Banking Contribution in 2017 (USD Finance as at Dec-17 has reached USD 83.67 Billion billion) *Does not include Shariah-compliant stocks Assets Financing Deposits Islamic Finance Assets Growth Yo
Slide 10: Maybank Group Islamic Banking
Maybank Group Islamic Banking Maybank Group Islamic Banking (MGIB) delivers Shariah-compliant solutions across Community Financial Services and Global Banking lines, operating in Malaysia, Indonesia, Singapore, Hong Kong, Labuan, London and Bahrain. Our aim is to become a Global Leader in Islamic Fi
Slide 11: M2020 Aspiration
M2020 Aspiration Our M2020 aspiration is premised on the following key pillars M2020 ASPIRATION PRODUCT CENTRE GLOBAL DEVELOPMENT & FINANCIALS OF EXCELLENCE PRESENCE INNOVATION Aspire to be a Thought Leader and point of Developing products and Further Commendable financial reference for Shariah- ser
Slide 12: Strategic Objectives: Financials
Strategic Objectives FINANCIALS Achieve commendable financial performance and strong capitalisation Maybank Islamic Contribution to MBB Domestic MGIB1 Aspirational Contribution to Maybank Group in 2020 ASSETS FUNDING 2 PBT 50% 50% 40% 2017 2017 2017 28.8% 31.0% 26.6% MGIB Contribution to Maybank Gro
Slide 13: Competitive Landscape: Total Assets
Competitive Landscape: Islamic 1st Strategy has Led to Significant Growth Maybank Islamic remains the largest Islamic Banking institution in Malaysia by Total Assets. Total Assets (RM billion) 202.50 Maybank Islamic Competitor 1 Competitor 2 105.15 Competitor 3 85.28 Competitor 4 57.74 Competitor 5
Slide 14: Competitive Landscape: Total Financing
Competitive Landscape: Islamic 1st Strategy has Led to Significant Growth Maybank Islamic remains the largest Islamic Banking institution in Malaysia by Financing Assets. Total Financing (RM billion) 163.56 Maybank Islamic Competitor 1 Competitor 2 Competitor 3 70.63 Competitor 4 57.55 42.98 Competi
Slide 15: Competitive Landscape: Deposits and Investment Accounts
Competitive Landscape: Islamic 1st Strategy has Led to Significant Growth Maybank Islamic ranked 1st amongst Islamic Banks, almost double its nearest competitor. Total Deposits and Unrestricted Investment Account (RM billion) 154.45 Maybank Islamic Competitor 1 Competitor 2 83.24 Competitor 3 65.82
Slide 16: Competitive Landscape: Profit Before Taxes
Competitive Landscape: Islamic 1st Strategy has Led to Significant Growth Maybank Islamic is now the most profitable Islamic Bank in Malaysia. Profit Before Taxes (RM billion) 2.27 2.00 Maybank Islamic Competitor 1 Competitor 2 Competitor 3 0.81 Competitor 4 Competitor 5 0.77 0.53 Competitor 6 0.48
Slide 17: Strategic Objectives: Global Presence
Strategic Objectives GLOBAL PRESENCE Aspiration towards 2020 Aspire to be a Thought Leader and point of reference for Shariah-based commercial stipulations and Islamic Finance in general and globally recognised as a leading Islamic Financial institution by sovereigns, corporates, Islamic Finance ins
Slide 18: List of Notable Global Deals
Strategic Objectives GLOBAL List of Notable Global Deals PRESENCE United States SOHO UAE Properties London Emirates USD219.0 mil Battersea Islamic Bank Commodity Power Station Singapore Murabahah USD750.0 mil Singapore GBP467.0 mil Sukuk Wakalah RB Capital Commodity Bumitama Murabahah Agri Ltd Saudi
Slide 19: Competitive Landscape: Global Position
Competitive Landscape: Global Position GLOBAL PRESENCE Snapshot of Top 8 Largest Islamic Banks in the World (excl. Iran) as at December 2017 • We are the largest Islamic finance provider in Malaysia and Asia Pacific by asset size. • We are the top 5 largest Islamic bank globally by asset size. 1. Ma
Slide 20: List of Awards
Strategic Objectives GLOBAL List of Awards PRESENCE The Global Finance Magazine Awards 2018 World’s Best Islamic Financial Institutions 2018 – The Banker Awards 2018 Global Winners Islamic Bank of the Year – Asia 1. Best Islamic Financial Institution – Maybank Pacific Islamic Islamic Bank of t
Slide 21: Deliver Innovative Products and Services
Strategic Objectives PRODUCT DEVELOPMENT & INNOVATION Aspiration towards 2020 Developing products and services leveraging on Islamic finance’s unique differentiators, with a focus on enhancing the Bank’s investment intermediation role to complement its existing credit intermediary function Deliver I
Slide 22: Product Development and Innovation
Product Development and Innovation Introduction of Maybank Islamic World MasterCard Ikhwan Card-I in May 2018 An Islamic premium card that HouzKEY is an alternative home ownership solution. offers benefits, privileges and rewarding experiences Customers can choose to rent a home from befitting the I
Slide 23: Strategic Objectives: Centre of Excellence
Strategic Objectives CENTRE OF EXCELLENCE Aspiration towards 2020 Further enhancement of COE through collaboration with internationally renowned bodies and institutions. • To ramp up MGIB’s brand visibility beyond Islamic finance field through participation in events of global stature such as IIF •
Slide 24: Shariah Centre of Excellence (SCOE)
Shariah Centre of Excellence (SCOE) • The SCOE is a virtual centre that aims to be the leading reference point on Shariah knowledge and best practices for industry players, academic fraternities and the general public. • The focus of the SCOE is on research Official Launch by Tan Sri Dr. Zeti Public
Slide 25: Outlook and Priorities for 2018
Outlook and Priorities for 2018 To diversify our underlying assets for our Unrestricted TARGETING VALUE CREATION ACROSS ALL ASPECTS FINANCIALS Investment Account, grow our Islamic Wealth Management portfolio and to further develop Islamic Trade Finance and Islamic Capital Markets. GLOBAL PRESENCE To
Slide 26: Outlook and Priorities for 2018
Outlook and Priorities for 2018 Malaysia ranks 1st in Global Islamic Economy Indicator Score Source: Thomson Reuters State of the Global Islamic Economy Report 2017/18 25
Slide 27: Outlook and Priorities for 2018
Outlook and Priorities for 2018 Focus Area : Halal Economy Focus Area: Islamic Trade Finance In 2016, Islamic finance only The Halal Economy is expected to grow to covered 3.4% of total trade and US$6.4 trillion by 2018 and is driven by a large in 3 years BNM targets to increase young and fast-g
Slide 28: Appendix
APPENDIX 27
Slide 29: Malaysia's Success Story in Islamic Finance
Malaysia’s Success Story in Islamic Finance 01 Sound Legal & Regulatory Framework Success Factor 02 Strong Vision and Support from Central Bank Success Factor 03 Conducive Shariah Framework Success Factor 04 Large Number & Diversified of Islamic Finance Success Players (local & foreign) Factor 05 Hu
Slide 30: Recent Development: SC SRI Sukuk Framework 2014
Recent Development : SC SRI Sukuk Framework 2014 The introduction of the SRI Sukuk Framework in 2014 is part of the SC’s efforts to create a conducive ecosystem for SRI investors and issuers in Malaysia. Eligible SRI Projects Renewable Energy & Community & Economic Natural Resources Waqf Properties/
Slide 31: Financial Performance: FY2017
Financial Performance: FY2017 Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM163.6 billion RM million FY2017 FY2016 YoY p13% Dec 16 Total Income 4,600.4 3,874.2 18.7% 42.6 p6% Dec 17 p3% 37.7 Profit Before Tax 2,751.6 1,945.4 41.4% 35.4 31.4 32.4 33.3 p2
Slide 32: Islamic Banking's Market Share: FY2017
Islamic Banking’s Market Share: FY2017 Maybank Islamic Market Share (Malaysia) Market Share by Product (Malaysia) 34.1% 33.8% 33.5% 33.6% 33.6% Key Products Dec 17 Dec 16 Automobile Financing 45.0% 44.3% Home 27.7% 28.4% 30.4% 30.4% 29.8% 29.6% 29.7% Term financing 31.6% 30.1% Dec 16 Mar 17 Jun 17 S
Slide 33: Financial Performance: 1Q FY2018
Financial Performance: 1Q FY2018 Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM167.8 billion 1Q 1Q RM million YoY FY2018 FY2017 Mar 17 p13% Total Income 1,217.5 1,148.4 6.0% Mar 18 43.8 p8% p2% 38.9 Profit Before Tax 455.3 662.3 (31.2)% 36.4 33.7 31.8 3
Slide 34: Islamic Banking's Market Share: 1Q FY2018
Islamic Banking’s Market Share:1Q FY2018 Maybank Islamic Market Share (Malaysia) Market Share by Product (Malaysia) 33.5% 33.6% 33.6% 33.8% 33.6% Key Products Mar 18 Mar 17 Automobile Financing 45.0% 44.7% 31.2% Home 27.5% 28.3% 30.4% 29.8% 29.6% 29.7% Term financing 31.3% 29.5% Mar 17 Jun 17 Sep 17
Slide 35: Malayan Banking Berhad Contact and Disclaimer
Humanising Financial Services MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Investor Relations Contact Dato’ Amirul Feisal Wan Zahir Group Chief Financial Officer Contact: (6)03-2074 7703 Email: feisal.zahir@
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