Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — H1 2023 Earnings Presentation

41 slides from Ammb Holdings Bhd's earnings presentation, Nov 30, 2022

  1. Slide 1: H1FY2023 Results Investor Presentation

    H1FY2023 RESULTS INVESTOR PRESENTATION 30 NOVEMBER 2022

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Dato’ Sulaiman Mohd Tahir 3 H1FY23 Financial snapshot 4 Repayment assistance 5 Loans by stages 6 Outlook for 2022

  3. Slide 3: H1FY23 Financial snapshot

    Financial Snapshot (Reported) H1FY23 Financial snapshot H1FY23 Financials Variance Strong profitability improvement; annualised ROE 10% 2,346 • Banking revenue growth of 8% offset by AmGen disposal loss Income  (1%) H1FY22: 2,359 of RM54mil at NOII (1,047) Expenses  4% • Normalised cost flat, main

  4. Slide 4: Repayment assistance loans declined further

    Repayment Assistance Repayment assistance loans declined further Repayment assistance by type of borrowers (RM’ bil) SME: Repayment assistance by MIA status MIA 2 MIA ≥3 0.07 bil 0.05 bil MIA 1 5% 4% Retail SME Corporate 0.21 bil 14% 30% of total gross loans Total 33.7 Assistance: 2.6 RM1.4bil 16% o

  5. Slide 5: Loans by stages

    Loans (Reported) Loans by stages Loans by ECL Stages (RM’ bil)1 Breakdown by Business Segments (%) Stage 1 Stage 2 Stage 3 Stage 1 PEMULIH 88.1% 87.7% BB 113.5 113.4 117.1 120.0 120.1 124.4 RB 1.6% 1.5% 1.4% 1.4% 1.6% 1.5% 84.7% 12.9% 12.7% 11.9% 11.0% WB 13.2% 14.7% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY

  6. Slide 6: Outlook for 2022

    Market Outlook Outlook for 2022 GDP Growth 8.5% to 9.0% Inflation 3.2% Malaysia Export Growth 25.5% to 26.5% USD/MYR Outlook 4.40 to 4.45 Loans Growth 6.0% to 6.5% Asset Quality Stable Banking OPR 2.75% Sector Liquid & Capital Positions Resilient 6 H1FY23 Results – Investor Presentation

  7. Slide 7: GCFO Presentation: Financial Overview

    GCFO PRESENTATION Jamie Ling 7 - 25 Financial Overview

  8. Slide 8: H1FY23 Performance summary – P&L (Reported)

    Financial Overview (Reported) H1FY23 Performance summary – P&L (Reported) P&L (RM’ mil) Q1FY23 Q2FY23 QoQ Change H1FY22 H1FY23 YoY Change Total Income 1,162 1,185  2% 2,359 2,346  (1%) - NII 863 923  7% 1,618 1,787  10% - NOII 298 262  (12%) 741 560  (24%) Expenses (544) (504)  (7%) (1,008) (

  9. Slide 9: H1FY23 Performance summary – Balance Sheet (Reported)

    Financial Overview (Reported) H1FY23 Performance summary – Balance Sheet (Reported) Balance Sheet (RM’ bil) Q1FY23 Q2FY23 QoQ Change FY22 H1FY23 YTD Change Gross Loans 120.1 124.4  4% 120.0 124.4  4% GIL 1.55% 1.52%  (0.03%) 1.40% 1.52%  0.12% LLC1 123.3% 122.6%  (0.7%) 139.2% 122.6%  (16.6%)

  10. Slide 10: P&L – Continuing & Discontinued Operations

    Disposal of AmGen P&L – Continuing & Discontinued Operations Financial Effects post Disposal (Half Yearly) H1FY22 H1FY23 YoY Movement Reported Continuing Ops Discontinued Op Reported Continuing Ops Discontinued Op Continuing Discontinued RM’mil Reported (A) + (B) (A) (B) (A) + (B) (A) (B) Operations

  11. Slide 11: Disposal of AmGen – Update as at 30 Sep 2022

    Disposal of AmGen Disposal of AmGen – Update as at 30 Sep 2022 Estimated Loss on Disposal RM’mil 21% Divestment in AmGen Estimated final cash consideration 1,396.7 Add: Consideration in shares 958.2 Total consideration before non-cash estimated true up 2,354.9 Less: Net assets, goodwill and expenses

  12. Slide 12: Q2FY23 Financial overview

    Financial Overview (Continuing) Q2FY23 Financial overview 1 Capital, Liquidity and Funding • Adequate loss absorption capacity • Declared dividends of 6.0 sen per share, dividend payout ratio of 23% • After proposed dividends, CET1 at 12.57%; without Transitional Arrangements, CET1 at 12.17% • Highl

  13. Slide 13: Broad-based revenue growth

    Income (Continuing) Broad-based revenue growth Business Segments Q1FY23 Q2FY23 QoQ Change H1FY22 H1FY23 YoY Change (RM’ mil) Wholesale Banking 331 388  17% 638 719  13% Investment Banking 75 75 ≈ 185 149  (19%) Retail Banking 446 480  8% 837 926  11% Business Banking 156 170  9% 267 326  22%

  14. Slide 14: Strong PBP contribution from Banking business

    PBP & PATMI (Continuing) Strong PBP contribution from Banking business Business Segments Q1FY23 Q2FY23 QoQ Change H1FY22 H1FY23 YoY Change (RM’ mil) Wholesale Banking 272 325  20% 513 597  16% Investment Banking 31 27  (12%) 100 58  (42%) Retail Banking 230 251  9% 426 481  13% Business Bankin

  15. Slide 15: P&L walk

    Group P&L (Continuing) P&L walk YoY Growth  15%  (6%)  (41%)  8%  10%  6%  (59%)  35%  36%  35% 222 217 67 30 28 87 873 645 Net Interest Non-Interest RM’ mil Net Mod Impact Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income H1FY23 1,705 479 39 2,223 (941) 1,282 (154) 1,

  16. Slide 16: NIM expansion at the back of OPR rise

    NIM (Reported) NIM expansion at the back of OPR rise YoY NIM Net Interest Margin (NIM) Movement (QoQ) H1FY23: Reported: 2.17% ( 12bps) Underlying: 2.12% ( 16bps) H1FY22: Reported: 2.05% Divisions Funding + Deposits Underlying: 1.96% Reported: Underlying: ≈ bps  2bps 4.1 14.8 5.6 0.4 212 8.1 0.1 2

  17. Slide 17: Non-interest income (Continuing)

    NoII (Continuing) Lower income from Investment Banking, Wealth Management and Insurance, partially offset by higher Corporate and Business Banking income YoY Growth  25%  15%  4% (7%)  (40%)  (40%)  (29%)  37%  17%  23%  (58%)  56%  (6%) Composition 5% 9% 16% 15% 4% 7% 9% 6% 11% 14% 3%

  18. Slide 18: CTI improved QoQ to 40.6%

    Expenses (Continuing) CTI improved QoQ to 40.6% (Q1FY23: 44.3%) Business Segments Q1FY23 Q2FY23 QoQ Change H1FY22 H1FY23 YoY Change (RM’ mil) Wholesale Banking 60 63  5% 125 122  (2%) Investment Banking 44 47  8% 85 91  7% Retail Banking 216 229  6% 411 445  8% Business Banking 46 53  15% 70

  19. Slide 19: Broad-based loans growth

    Loans (Reported) Broad-based loans growth Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: ROA1: RoTA1: Fixed rate – 21% Islamic – 32% Retail – 55% 0.90% 0.90% Variable rate –79% Conventional – 68% Non-retail – 45% YTD Growth  1%  10

  20. Slide 20: Watchful on retail credit exposures

    Asset Quality (Reported) Watchful on retail credit exposures Net Impairment (YoY Movement) Overlay: Q1FY23: 30.0 RM’ mil Q2FY23: 0.6 0.9 113.2 154.9 30.7 377.1 376.2 76.3 8.0 123.0 0.5 266.9 221.4 36.2 153.7 146.0 H1FY22 AmGen H1FY22 Overlay H1FY22 ECL ECL Individual Recoveries Others H1FY23 Overlay

  21. Slide 21: Proactively managing sector exposure

    Asset Quality (Reported) Proactively managing sector exposure Impaired Loans by Sector Loans & Bonds by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’22 Sep’22 Sector Composition QoQ Change Loans outstanding Bonds & Loans outstanding RM’ mil RM’

  22. Slide 22: Consistent deposits growth in Retail

    Deposits (Reported) Consistent deposits growth in Retail Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) CASA Trend YTD Growth Industry Customer Deposits Trend YTD Growth Industry  (1%)  3%1 H1FY23 39.8  (8%) ≈1 H1FY23 121.0  2%  5%2 FY22 43.1  21%  6%2 FY22 122.6 FY21 120.5  7% 

  23. Slide 23: Strong capital position, dividend payout ratio of 23%

    Capital (Reported) Strong capital position, dividend payout ratio of 23% RWA/Total Assets FHC Capital Adequacy Ratios3 RM’ bil Total Assets RWA/Total Assets 1 Peers 2 CET 1 / Tier 1 Total CAR 65.0% 64.4% 66.7% 67.4% 66.0% 15.43% 15.80% 15.63% 15.32% 15.79% 15.18% 14.48% 14.14% 58.4% 58.5% 58.1% 56.8

  24. Slide 24: H1FY23 Summary

    Summary H1FY23 Summary STRONG BANKING PERFORMANCE • Strong Q2 performance, H1 annualized ROE 10% • Expect market volatilities to continue COST EFFICIENCY SOLID FOUNDATION • Target 45% Cost to Income ratio; • Capital build on track slight negative jaws • Resumption of historical dividend • Pacing inv

  25. Slide 25: Thank You

    THANK YOU

  26. Slide 26: Reported yearly performance

    H1FY23 Results (Reported) Reported yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%) PATMI / (LATMI) ROE (%) PATMI: ROE: Total Income Non-interest Income % Total Income: YoY Growth  20.8% YoY Growth  1.0% CAGR FY19-FY22:  5.9% 8.8% YoY Growt

  27. Slide 27: (Impairments) / Writebacks

    Asset Quality (Continuing) (Impairments) / Writebacks Net (Impairments) / Writebacks and GIL Ratio Total impairments by category (RM’ mil) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 QoQ Change H1FY22 H1FY23 YoY Change ECL Stage 1 & 2 / CP – Non defaulted (122) (124) 56 561 6 19  >100% (246) 24  (>1

  28. Slide 28: Loans by sector vs industry

    Loans (Reported) Loans by sector vs industry AmBank Group (RM’ bil) Loans 3% 2% 12% 1% 3% 9% 4% 6% 5% 1% 54% ≈ 100% Composition YTD  32%  8%  (3%)  14% ≈  2%  (1%)  35%  (5%)  8%  3%  (51%)  4% Growth Sep'22 124.4 67.0 15.4 4.4 10.8 7.4 6.3 3.1 2.3 1.4 4.8 1.5 0.0 Wholesale, Finance, Min

  29. Slide 29: Divisional Performance

    Divisional Performance

  30. Slide 30: Wholesale Banking

    Wholesale Banking (Reported) Wholesale Banking QoQ Growth:  27% Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) YoY Growth:  90% H1FY22: 270 H1FY23: 514 Total Income RM719 mil  13% 288 227  39% 143 127 Transaction 22 Banking 21%  (1%) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q

  31. Slide 31: Wholesale Banking

    Wholesale Banking (Reported) Wholesale Banking Income Statement YoY Growth  13%  10%  13%  (2%)  16%  (>100%)  94%  >100%  90% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY23 575 144 719 (122) 597 68 665 (150) 514 H1FY22 507 131 638 (1

  32. Slide 32: Investment Banking

    Investment Banking (Reported) Investment Banking League Table Market Share of Value and Volume Traded on Bursa (KLSE)1 Market Share1 As At Rank2 30 September 2022 Trading Value Trading Volume DCM 10.7% 4 4.1% 4.0% (Overall MYR Bonds) 3.6% 3.2% 3.2% Islamic Sukuk 10.9% 4 5.1% 4.8% 4.5% 4.3% 4.0% Un

  33. Slide 33: Investment Banking

    Investment Banking (Reported) Investment Banking Income Statement YoY Growth  15%  (24%)  (19%)  7%  (42%)  >100%  (48%)  (52%)  (46%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY23 26 123 149 (91) 58 (1) 57 (11) 46 H1FY22 23 163 185

  34. Slide 34: Retail Banking

    Retail Banking (Reported) Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) Total Income QoQ Growth:  (33%)  11% RM 926 mil YoY Growth :  (18%)  32%  9%  3% Others H1FY22: 297 H1FY23: 245 4% Auto Retail SME 12% 9%  (27%) Wealth 162 COOP & 5% ASB 146

  35. Slide 35: Retail Banking: Cards in circulation

    Retail Banking (Reported) Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth:  45% Merchant volume (RM'mil) QoQ Growth:  (2%) YoY Growth:  75% YoY Growth:  (6%) Merchants in force ('000) QoQ Growth:  (2%) YoY Growth:  (1%) H1FY22: 2,415 35 35 35 35 35 34 H1FY23: 2,271 1,381 1,343

  36. Slide 36: Retail Banking

    Retail Banking (Reported) Retail Banking Income Statement YoY Growth  13% (2%)  11%  8%  13%  >100% (17%) (16%) (18%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY23 804 122 926 (445) 481 (159) 322 (77) 245 H1FY22 713 124 837 (411) 426

  37. Slide 37: Business Banking

    Business Banking (Reported) Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth:  1% QoQ Growth:  14% YoY Growth:  11% YoY Growth:  54% Non-trade Trade 18,736 19,053 19,336 18,070 17,329 17,374 5,172 5,300 5,249 4,676 4,675 4,945 H1FY22: 96 H1FY23: 148 13,125 13,564 13,753 14,0

  38. Slide 38: Business Banking

    Business Banking (Reported) Business Banking Income Statement YoY Growth  22%  23%  22%  43%  15%  (56%)  57%  68%  54% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income H1FY23 257 69 326 (99) 227 (33) 194 (46) 148 H1FY22 211 56 267 (70) 198 (7

  39. Slide 39: Islamic Banking

    Islamic Banking (Reported) Islamic Banking Income Statement YoY Growth  16%  12%  18%  (60%)  97%  >100%  94% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ H1FY23 588 (160) 428 (73) 355 (82) 273 H1FY22 506 (142) 364 (184) 180 (39) 141 H1FY23 PAT H1FY22 PAT Positive growth

  40. Slide 40: Shareholding structure as of 30 September 2022

    Corporate Structure Shareholding structure as of 30 September 2022 21.6%1 AmCorp 11.8% EPF 10.9% PNB 8.0%2 Others 47.7% Based on ROD dated 30 September 2022 AMMB Holdings Berhad Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful 100% AmBank (M) Berhad 100% AM

  41. Slide 41: Glossary & Disclaimer

    Glossary & Disclaimer Glossary & Disclaimer of warranty and limitation of liability Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market Growth Definition QoQ growth refers to Q2FY23 vs Q1FY23 YoY gr

AMMB Holdings Berhad — H1 2023 Earnings Presentation on 6ix