Alliance Bank Malaysia Bhd. · MYX:ABMB

Alliance Bank Malaysia Bhd — FY2022 Earnings Presentation

31 slides from Alliance Bank Malaysia Bhd's earnings presentation, May 31, 2022

  1. Slide 1: Analyst Briefing FY2022

    Analyst Briefing 31 May 2022 FY2022 31-May-22 FY2022 ABMB Analyst Briefing

  2. Slide 2: Contents

    Key Results Contents 1 FY22 Achievements  Financial Highlights  Strategic Priorities 2 FY22 Financial Performance  Revenue & Franchise Development  Effective Risk Management  Key Results 3 Going Forward 31-May-22 FY2022 ABMB Analyst Briefing 31-May-22 FY2022 ABMB Analyst Briefing  FY23 Strateg

  3. Slide 3: FY22 Financial Highlights Summary

    Executive FY22 Financial Highlights Summary FY22 Achievements 1 Revenue grew 2.8%; 2 PPOP grew 2.7%; 3 NPAT grew 60%; Top NIM in the industry CIR maintained at 44% ROE improved to 9.2% Revenue (RM mil) PPOP (RM mil) NPAT (RM mil) RM mil ABMB NIM (%) RM mil RM mil Cost to income ratio (%) ROE (%) Ind

  4. Slide 4: FY22 Strategic Priorities Summary

    Executive FY22 Strategic Priorities Summary FY22 Achievements 1 Acquire more 2 Deepen customer 3 Gain customers engagement efficiencies a) ABMB SME market share (%) a) Number of new dual-relationship Branch transformation business owners (#) >doubled y-o-y 5.1k 4.8% 5.0% 2.3k 4.6% 3.7% 3.4% FY21 FY2

  5. Slide 5: Contents

    Key Results Contents 1 FY22 Achievements  Financial Highlights  Strategic Priorities 2 FY22 Financial Performance  Revenue & Franchise Development  Effective Risk Management  Key Results 3 Going Forward 31-May-22 FY2022 ABMB Analyst Briefing 31-May-22 FY2022 ABMB Analyst Briefing  FY23 Strateg

  6. Slide 6: Net interest income grew 8.8% y-o-y

    Revenue & Franchise Development Net interest income grew 8.8% y-o-y a) Net interest income grew 8.8% y-o-y, driven by deposit Net Interest Margin Trend: optimisation and repricing of FDs post-OPR cuts: 2.53% Y-o-Y impact: 2.49% RM mil 2.40% +96.5 1,523.4 -43.2 1,480.2 2.37% 1,360.9 +55.7 +10.4 2.30%

  7. Slide 7: Growth in wealth management, FX sales & trade fees

    Revenue & Franchise Development Growth in wealth management, FX sales & trade fees  Client-based fee income (excluding brokerage): +3.5% y-o-y  Wealth management (+5.3% y-o-y)  FX sales/trade fees (+11.1% y-o-y) RM mil Client-based (excluding brokerage^): Non-client based: Pending Disposal of +RM

  8. Slide 8: Cost to Income Ratio maintained at 44.1%

    Revenue & Franchise Development Cost to Income Ratio maintained at 44.1% RM mil a) Cost to income ratio: 44.1% (within our revised OPEX CIR guidance) b) Operating expenses up 2.8% y-o-y: 50.5%  Investment in sales force & collections team 47.8% 47.8% 44.1% 44.1% expansion  IT expenses related to s

  9. Slide 9: Financial assistance reduced RM3.0 billion q-o-q

    Effective Risk Management Financial assistance reduced RM3.0 billion q-o-q Financial Assistance: RM6.28 billion (13.6% of loan book) RM bil PRA MORA % resumed full/ partial repayment Migration / resumed out of total loans (excluding GIL) to take PRA Corporate: Mostly from 10% mortgage 92% 72% 91% 98

  10. Slide 10: SME: stable GIL with slight 30+dpd uptick

    Effective Risk Management SME: stable GIL with slight 30+dpd uptick SME How are we mitigating these risks? GIL (RM mil) GIL ratio (%) 30+ dpd (%) Portfolio Management  Financial assistance: -RM1.26 billion q-o-q to now RM2.06 billion 1.9% 1.5% Green Amber Red 1.2% 1.1% 1.2% RM bil 1.1% 1.2% 1.2% 1.

  11. Slide 11: Commercial & Corporate: slight GIL uptick

    Effective Risk Management Commercial & Corporate: slight GIL uptick Commercial How are we mitigating these risks? GIL (RM mil) GIL ratio (%) 30+ dpd (%) Portfolio Management 2.1% 2.0% 1.8% 1.7% 2.1%  Commercial financial assistance:  Corporate financial assistance: -RM287 million q-o-q -RM188 mill

  12. Slide 12: Consumer: proactive mitigation actions to contain portfolio

    Effective Risk Management Consumer: proactive mitigation actions to contain portfolio Consumer How are we mitigating these risks? GIL (RM mil) GIL ratio (%) 30+ dpd (%) Portfolio Management 4.0% 4.0% 4.2%  Financial assistance: -RM1.23 billion q-o-q to RM2.39 billion 3.3% 2.6% RM bil MIA 0 MIA 1 >

  13. Slide 13: Net credit cost at 48.1bps (management overlays 30.4bps)

    Effective Risk Management Net credit cost at 48.1bps (management overlays 30.4bps) a) Net credit cost reduced to 48.1bps [vs 121.4 bps last year] (of which 30.4 bps or 63% for management overlays). bps Net Credit Cost Management Overlays b) BAU net credit cost lower by 32.5 bps y-o-y: 121.4 bps -73.

  14. Slide 14: Loans grew 4.6% year-on-year

    Effective Risk Management Loans grew 4.6% year-on-year Gross Loans Customer Based Funding RM bil CASA Fixed Deposits (FD) RM bil Consumer Banking SME Banking Corporate & Commercial Banking (GCC) Other deposits CASA Ratio 47.0% 48.9% +4.6% y-o-y 46.2 44.1 +0.8% 48.7 y-o-y 49.1 10.8 11.8 +9.5% 3.5 4.3

  15. Slide 15: Liquidity and capital position remain strong

    Effective Risk Management Liquidity and capital position remain strong Liquidity: LCR, LFR Capital Position % % CET 1 Tier 1 Total Capital Liquidity Coverage Ratio (LCR) Loan to Fund Ratio (LFR) 20.3% 19.8% Earnings 15.9% retention: 15.5% 170.3% 165.7% 167.7% +1.2% 150.0% 155.1% Dividend paid: -0.2%

  16. Slide 16: Dividend payout at 50% (above FY21 payout of 25%)

    Key Results Dividend payout at 50% (above FY21 payout of 25%) a) Dividend payout ratio at 50%: Dividend and Payout Ratio  Declared 1st interim dividend: 8.3 sen RM mil Total Dividend Paid Dividend Payout Ratio  Proposed 2nd interim dividend: 10.2 sen Capital conservation (Total dividend: 18.50 sen

  17. Slide 17: Contents

    Key Results Contents 1 FY22 Achievements  Financial Highlights  Strategic Priorities 2 FY22 Financial Performance  Revenue & Franchise Development  Effective Risk Management  Key Results 3 Going Forward 31-May-22 FY2022 ABMB Analyst Briefing 31-May-22 FY2022 ABMB Analyst Briefing  FY23 Strateg

  18. Slide 18: Going Forward: FY23 Strategic Priorities

    Going Forward VISION: The Preferred Bank of Business Owners MISSION: Building Alliances To Improve Lives Business banking Consumer banking Double SME market share Be the personal banker of choice for business owners FY23 Strategic Priorities: 1 2 3 Acquire more Deepen customer Gain customers engagem

  19. Slide 19: Sustainability

    Going Forward Sustainability Sustainability Achievements in FY2022 on track to realize Topline Goals FY2025 FY2022 What’s Next for Topline Goals Achievements FY2023 1 • Established Sustainability Governance • Enhanced Sustainability Risk Management • Target RM2.6 billion in new sustainable banking b

  20. Slide 20: FY23 Management Guidance

    Going Forward FY23 Management Guidance Growth Y-o-Y FY22 Actual FY23 Guidance Gross Loans 4.6% 6 – 8% Net Interest Margin 2.53% Around 2.5% Cost to Income Ratio 44.1% < 45% Net Credit Cost 48.1 bps 40 – 45bps 31-May-22 FY2022 ABMB Analyst Briefing 31-May-22 FY2022 ABMB Analyst Briefing ROE 9.2% > 10

  21. Slide 21: Contents

    Key Results Contents 1 FY22 Achievements  Financial Highlights  Strategic Priorities 2 FY22 Financial Performance  Revenue & Franchise Development  Effective Risk Management  Key Results 3 Going Forward 31-May-22 FY2022 ABMB Analyst Briefing 31-May-22 FY2022 ABMB Analyst Briefing  FY23 Strateg

  22. Slide 22: 4QFY22 Key Highlights: Financial Performance

    Key Highlights: Financial Performance 4QFY22 NPAT grew 105.8% y-o-y to RM103.0 mil Net Interest Income & Non Interest Income & Revenue Islamic Net Financing Income NOII Ratio RM mil RM mil RM mil 483.0 480.2 445.8 453.0 451.5 389.9 358.2 364.5 358.6 367.1 24.5% 19.7% 20.8% 18.8% 18.7% 118.4 87.6 37.

  23. Slide 23: 4Q FY2022: Q-o-Q Income Statement

    4Q FY2022: Q-o-Q Income Statement Q-o-Q Change  Revenue declined by 6.0% q-o-q: 3QFY22 4QFY22 Better / (Worse) Income Statement RM mil RM mil  Net interest income: -RM22.8mil or -5.9% RM mil % q-o-q mainly due to higher modification loss and lower yield from treasury assets. Net Interest Income 29

  24. Slide 24: 4Q FY2022: Y-o-Y Income Statement

    4Q FY2022: Y-o-Y Income Statement Y-o-Y Change  Revenue grew by 1.3% y-o-y: 4QFY21 4QFY22 Better / (Worse) Income Statement  Net interest income: +RM8.9mil, thanks to RM mil RM mil RM mil % lower funding cost due to better deposit mix from CASA growth and FDs repricing. Net Interest Income 267.3 2

  25. Slide 25: FY22 Key Highlights Y-o-Y: Financial Performance

    Key Highlights Y-o-Y: Financial Performance FY22 NPAT grew 59.7% y-o-y to RM572.8 million Net Interest Income & Non Interest Income & Revenue Islamic Net Financing Income NOII Ratio RM mil RM mil RM mil 1,817.6 1,867.7 25.1% 1,480.2 1,360.9 20.7% 19.7% 18.7% 456.7 387.4 145.8 86.1 445.8 451.5 358.2

  26. Slide 26: FY2022: Y-o-Y Income Statement

    FY2022: Y-o-Y Income Statement Y-o-Y Change  Revenue grew by 2.8% y-o-y: FY21 FY22 Better / (Worse) Income Statement  Net interest income: +RM119.4mil, thanks RM mil RM mil RM mil % to lower funding cost due to better deposit mix from CASA growth and FDs repricing. Net Interest Income 1,016.7 1,12

  27. Slide 27: Q-o-Q Summarised Balance Sheet

    Q-o-Q Summarised Balance Sheet Q-o-Q Change  Net loans grew by 3.7% q-o-q: Dec 21 Mar 22 Balance Sheet RM bil RM bil  SME loans: +6.2% q-o-q mainly due RM bil % to higher disbursement from Term Loan and higher utilisation on Trade & Total Assets 59.4 61.8 2.4 4.0% Overdraft. Treasury Assets* 11.5

  28. Slide 28: Y-o-Y Summarised Balance Sheet

    Y-o-Y Summarised Balance Sheet Y-o-Y Change  Net loans grew by 4.4% y-o-y: Mar 21 Mar 22 Balance Sheet  SME loans: +12.4% y-o-y mainly due RM bil RM bil RM bil % to higher loan growth from Term Loan and Targeted Relief & Recovery Facility Total Assets 60.7 61.8 1.1 1.9% (TRRF). Treasury Assets* 13

  29. Slide 29: Key Financial Ratios

    Key Financial Ratios Financial Ratios 4QFY21 3QFY22 4QFY22 FY21 FY22 Return on Equity 3.3% 9.6% 6.7% 5.9% 9.2% Shareholder Earnings per Share 3.2sen 9.8sen 6.7sen 23.2sen 37.0sen Value Net Assets per Share RM4.04 RM4.14 RM4.14 RM4.04 RM4.14 Net Interest Margin 2.41% 2.66% 2.50% 2.30% 2.53% Efficienc

  30. Slide 30: Thank You

    Thank You. Disclaimer: This presentation has been prepared by Alliance Bank Malaysia Berhad (the “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, express

  31. Slide 31: Appendix 1: Gross Impaired Loans (by Segments)

    APPENDIX 1: GROSS IMPAIRED LOANS (BY SEGMENTS) Classic Mortgage SME GIL (RM mil) GIL ratio (%) 30+ dpd (%) GIL (RM mil) GIL ratio (%) 30+ dpd (%) 3.0% 2.8% 2.8% 1.9% 1.9% 1.9% 1.5% 2.2% 2.3% 1.2% 1.1% 1.2% 2.2% 1.6% 1.5% 1.1% 1.2% 1.2% 1.0% 1.1% 310 310 298 209 197 117 120 126 120 128 Mar-21 Jun-21

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