Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — CLSA Investor Forum, Hong Kong 2010
55 slides from Malayan Banking Bhd's conference presentation, Sep 13, 2010
Slide 1: Malayan Banking Berhad - CLSA Investor Forum, Hong Kong
MALAYAN BANKING BERHAD CLSA Investor Forum, Hong Kong 13-17 September 2010
Slide 2: Overview: Maybank Group
Overview: Maybank Group Operating Environment: Economy and Banking Sector Strategy: St t The new House of Maybank 1
Slide 3: Progress since 3 major acquisitions in 2008
Progress since 3 major acquisitions in 2008 18 Mar 08 26 Mar 08 5 May 08 Announces A Announces A Announces A acquisition of acquisition of 20 Aug 10 acquisition of An Bin Bank BII Announces MCB Bank FY10 Maybank Foreign Shareholding 10.00 21 Apr 10 24% results Mayybank Share Pricce (RM) 30 Sep 08 29
Slide 4: Maybank: In a position of strength
Maybank: In a position of strength ■ Total Assets : RM 337 billion (USD 105 b) (As at 30 June 2010) Largest financial service ■ Total Equity : RM 29 billion (USD 9.0 b) provider in Malaysia ■ Total Net Profit : RM 3.8 billion (USD 1.2 b) ■ Market Cap. : RM 60.0 billion (USD 18.8 b) (1 Sep 10) ■ No 1
Slide 5: Domestic Market: Leading market position in most sectors
Domestic Market: Leading market position in most sectors N Network k C Consumer D Deposits i C d Cards Il i Islamic Investment Insurance & Banking Asset Mgmt Growth (YoY) 33% 36% 33% 28% 27% 21% 19% 15% 15% 16% 13% 8% 7% 7% 8% 4% 2% ‐9% 2% # na n.a. ‐1% Not applicable bt Markets Equity Brokerage Ree
Slide 6: Number 1 Bank Domestically
Number 1 Bank Domestically … Total Assets (RM bn): 30 June 2010 Net Loans (RM bn): 30 June 2010 MAYBANK Maybank 337 MAYBANK Maybank 206 CIMB 256 CIMB 152 Public… 219 Public Bank 145 RHB Cap 120 RHB Cap 73 AMMB 97 AMMB 65 HL Bank 85 HL Bank 38 EON Cap 49 EON Cap 34 Affin 43 Affin 25 Alliance 33 Allia
Slide 7: And Among the Top Ten in the Region
And Among the Top Ten in the Region T t lA Total t (USD bn): Assets b ) 30 JJune 2010 N t LLoans and Net dD it (USD bn): Deposits b ) 30 JJune 2010 SBI * 198 SBI * 336 252 DBS 204 DBS 107 136 OC C OCBC 157 UOB 77 93 UOB OCBC 69 141 83 Maybank 66 ICICI 113 76 No.5 Net Loans ICICI 52 Maybank 108 No.6
Slide 8: Operating Environment: Economy and Banking Sector
Overview: Maybank Group Operating Environment: Economy and Banking Sector Strategy: St t The new House of Maybank 7
Slide 9: Malaysia: Economic Rebound
Malaysia: Economic Rebound GDP to rebound with 7.5% % growth g in 2010;; 6.1% % in 2011 Inflation expected p to rise to 2.0% in 2010 ((2009: 0.6%)) 150 Quarterly GDP and annual growth rate 12 CPI and components (% YoY) 140 9 6 130 3 120 0 110 (3) 100 (6) 90 (9) 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q0
Slide 10: Malaysia: Banking Industry – strong fundamentals
Malaysia: Banking Industry – strong fundamentals ■ Loans ggrowth of 11.9% YoY (July ( y 10)) driven byy household Total Loans grew 11.9% 11 9% YoY for Jul 2010 sector. 860 18% ■ Competition expected to stiffen with issuance of more 16% commercial banking licenses to foreign banks, branch 810 14% exp
Slide 11: Singapore: Conducive Environment
Singapore: Conducive Environment ■ Singapore expected to rebound in 2010 with GDP growth Real GDP ggrowth of 13‐15% in 2010;; 4‐6% in 2011 of between 13.0‐15.0% and 4.0 – 6.0% in 2011. 80 20 ■ Inflation is likely to range between 2.5 – 3.5% in 2010 75 15 ■ Unemployment rate projected at 2.0 – 2.5% i
Slide 12: Indonesia: Continued Growth
Indonesia: Continued Growth Real GDP Growth: p picking g up p ■ We expect 2010 GDP growth to reach 6.05%, higher 580,000 8 than the growth of 4.53% in 2009. 7 560,000 ■ Inflation rate for 2010 is expected to range between 6 540,000 6% to 6.2% from around 12% a year ago while the BI 5 Rate is expecte
Slide 13: Strategy: The new House of Maybank
Overview: Maybank Group Operating Environment: Economy and Banking Sector Strategy: St t The new House of Maybank 12
Slide 14: Financial Performance: FY2010
Financial Performance: FY2010 ■ Record PATAMI for FY10 of RM3,818 million due to improved contribution across all key business segments. ■ Quarterly PATAMI remained above RM900 million level. ■ Group loans grew 10.3% YoY with domestic loans growth of 11%. ■ Asset A t Quality Q lit continued ti d to
Slide 15: Reframing our Vision, Mission and Strategic Objectives
Reframing our Vision, Mission and Strategic Objectives B 2015 By Our Vision To be a Regional Financial Services Leader Our Mission Humanising Financial Services from the Heart of ASEAN 1. Undisputed No. 1 Retail Financial Services provider in Strategic Objectives Malaysia by 2015 2 Leading 2. di ASE
Slide 16: New Group Organisation Structure to support aspirations
New Group Organisation Structure to support aspirations Maybank Group CEO + Support (CFO CRO,GHC, (CFO, CRO GHC Legal, L l Compliance, C li Communications) C i ti ) Community Global Wholesale Insurance & E ISLAMIC Financial Banking Takaful INSPIRED N Services A Leveraging Regaining Being the B share
Slide 17: Priorities for FY2011
Priorities for FY2011 1. Grow market share of individual and non non‐retail retail deposits Community Financial domestically and leverage on shared distribution synergies Services 2. Re‐align SME market segment focus 3. Ramp up universal wholesale banking model growth Global Wholesale Banking in cor
Slide 18: Bank Internasional Indonesia (BII)
Bank Internasional Indonesia (BII) Gross Loans: Composition (Rp trillion) and growth ■ By 2015, to become among Top 5 banks by assets & 17.1(+36%) 14.4 (+37%) returns, with initiatives in 5 main areas: 12.6 15.9 13.0 1. Leading banker for transportation industry 11.6 9.6 11.3 2. USD Payment Bank 8.5
Slide 19: Prospects and KPIs
Prospects and KPIs ■ Recovering regional economies to spur demand with loans growth of 12% in Malaysia, 24% at BII Headline KPIs and 5% in Singapore. ■ International te at o a contribution co t but o iss expected e pected to increase c ease Return on Equity 14% mainly from 2 key home markets of Sing
Slide 20: Financial Performance: FY ending June 2010
Financial Performance: FY ending 30 June 2010 Business i Review i Country Review: Singapore and Indonesia Appendix 19
Slide 21: Record profit for FY2010
Record profit for FY2010 452% PATAMI (RM bil.) and EPS (sen) 3.82 2.93 PATAMI (RM bil) 53.3 53.9 EPS (sen) 0.69 * 12.0 FY08 FY09 FY10 * FY09 includes RM1.97 billion impairment of investments in BII and MCB 20
Slide 22: FY2010: Exceeding our targets
FY2010: Exceeding our targets Headline KPIs Targets Achievements 11% Return on Equity 13.6% (revised to 13%) Revenue (net income) 8% 22.4% growth (revised to 15% normalised) (15.7% normalised) Other targets Targets Achievements Gross Loans growth High single digit 10.3% +10 bp Net Interest Margin St
Slide 23: Exceeding our targets
Exceeding our targets Gross loans growth supported by Improving Asset Quality strong business in Malaysia and 124.5% 101.1% 112.9% commendable growth of BII 10.3% 1 92% 1.92% 1.64% 1.22% 213.3 193.3 11.3 17.1 FY08 FY09 FY10 11 7 11.7 171.0 12.4 Net NPL Loan Loss Coverage 11.9 40.6 39.3 Robust Capita
Slide 24: PATAMI rose to RM3.8 billion
PATAMI rose to RM3.8 billion FY10 FY09 YoY 4Q10 3Q10 QoQ RM million 30 Jun 10 30 Jun 09 change 30 Jun 10 31 Mar 10 change Net interest income 6,770.9 5,919.5 14.4% 1,792.2 1,668.0 7.4% Income from Islamic 1,434.7 1,224.3 17.2% 355.8 341.5 4.2% Banking Non‐interest income 4,666.0 3,375.2 38.2% 1,127.
Slide 25: Normalised PBT for FY10 grew 31.7% YoY
Normalised PBT for FY10 grew 31.7% YoY RM million FY10 FY09 YoY Profit Before Tax (PBT) 5,370.4 1,674.3 220.8% Unrealised (gain)/losses on derivatives (306.2) 248.2 ‐ Forex MTM (gain) / losses (145.6) 130.5 ‐ Amortisation of BII’s Customer Deposits 93.4 71.7 ‐ Intangibles Impairment of BII and MCB ‐
Slide 26: Encouraging loans growth well funded by growth in deposits
Encouraging loans growth well funded by growth in deposits Loans driven by stronger consumer and BII loans growth Deposits growth 236.9 RM billion Jun 10 Jun 09 YoY Growth Total +11.5% 212.5 155.5 Domestic 144 3 144.3 129 9 129.9 11 0% 11.0% Malaysia +12.4% 138.4 RM million n Consumer, of which 72.2
Slide 27: Non-Interest Income driven by commission, fees and forex
Non‐Interest Income driven by commission, service charges, fees and forex +38% +25% 4,666.0 FY09 FY10 3,375.2 +27% million 2,606.9 , RM m 2,057.5 +18% +5% +11% +281% +92% 437.1 517.2 505.3 530.1 432.9 480.8 219.7 311.3 114.2 ‐171.9 Total Commission, service Foreign g Exchange g Net p premiums Invest
Slide 28: Expenses grew slower than revenue growth
Expenses grew slower than revenue growth Personnel costs 15 3% 15.3% IT expenses 6,412.1 Marketing expenses 296.6 Change QoQ % YoY % Admin, general expenses, fees & 5 559 2 5,559.2 Personnel costs 0.2% 14.3% brokerage 308.6 Insurance claims 2,279.3 IT expenses ‐5.1% ‐0.1% 1 783 6 1,783.6 1.9% Market
Slide 29: Other key ratios continued to improve
Other key ratios continued to improve ROE on normalised basis driven by higher revenue Fee to Income strong compared to last year 37.1% 17.2% 33 8% 33.8% 13.6% 33.0% 12.8% FY08 FY09 FY10 FY08 FY09 FY10 Net Interest Margin driven by OPR hikes Cost to Income declined YoY 52.8% 2.82% 2.84% 2.76% 2.77%
Slide 30: Higher dividend payout
Higher dividend payout • Final gross dividend payout of 44 sen (33 sen net) subject to Dividend Reinvestment Plan • Net dividend of 33 sen = 3 sen cash portion + 30 sen electable portion Gross Dividend (sen) and Payout Ratio (%) 76.5% 60.0% 61.0% 55.0 43.6 20 44 29 8 11 FY08 FY09 FY10 FY08 full year
Slide 31: Business Review
Financial Performance: FY ending 30 June 2010 Business i Review i Country Review: Singapore and Indonesia Appendix 30
Slide 32: Improved performance across all business segments
Improved performance across all business segments 22.4% 12,872 FY09 FY10 M million) 10,519 9.5% 32.3% 11 0% 11.0% Revenue (RM 4,460 99.2% 10.7% 3.1% 4,074 3,749 2,833 2.9% 2,270 2,519 716 1,426 950 1,052 229 236 (554) (570) Total Consumer International Business and Global Markets Insurance and Inves
Slide 33: Consumer Banking: Housing Loans and Auto Loans
Consumer Banking: Housing Loans and Auto Loans Housingg Loans market share stabilisingg Uplift p in new housingg loans 16% FY10: RM2.14 bil. ‐1.0% 700 242% 14.9% uplift 15% ‐0.5% 600 13.9% 500 14% 13.4% on RM millio 400 FY09: RM0.63 bil. 13% 300 12% 200 11% 100 10% 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q
Slide 34: Business and Corporate Banking
Business and Corporate Banking Loans growth led by Commercial and Corporate Banking Improvement p o e e t in Asset sset Quality Qua ty (G (Gross oss NPL ratio) at o) 68.8 11.7% 12.3% 11.5% 10.8% 64.0 Business 10.2% 14.0 SME Banking 14.9 RM billion 13 4 13.4 1 2% 1.2% 1 3% 1.3% 1 3% 1.3% 1 3% 1.3% 11
Slide 35: Global Markets
Global Markets Strong growth in Revenue and PBT Securities Portfolio Total RM54.2 billion 99.2% BII, 6% 135.1% Others, 2% Government Securities Securities, 1,291.0 51% 1,426.0 Negotiable Instruments of Deposits / PDS / BA 4% BA, Corporate RM billion n Bonds, 36% 716.0 549.0 C dit Rating Credit R ti
Slide 36: Insurance and takaful
Insurance and takaful Market Share: No. 1 in Life/Family (new business) Market Share: No. 1 in General Etiqa 18.9% Etiqa 10.1% ING Insurance 13.7% Allianz General 9.5% Great Eastern 12.5% AMG Insurance 8.7% Prudential 11.0% Kurnia 7.2% MAA 5 8% 5.8% MSIG 6.1% Source : ISM Report 0% 5% 10% 15% 20% 0%
Slide 37: Islamic Banking
Islamic Banking Income and PBT Leading market share (by Total Assets) +20% Total 1,849 Attributable Maybank Islamic’s Maybank Total Asset grew Income 1,536 Islamic, 17% 28% to RM44.5 bil. PBT and zakat in FY10 RM billion Others 42% Others, Public +12% Islamic, 11% 476 533 CIMB Islamic, 12% Am Islami
Slide 38: Country Review: Singapore and Indonesia
Financial Performance: FY ending 30 June 2010 Business i Review i Country Review: Singapore and Indonesia Appendix 37
Slide 39: Singapore
Singapore PBT rose 36% yoy Diversified Loan Portfolio 612.4 612.6 +8.6% Others 20 17.5 +36% 16.1 Car loans SGD million 15 4.3 338.0 Revenue 4.3 SGD billion 247.7 3.3 Housing Loans 10 3.2 PBT 4.1 3.7 5 General Commerce 1.8 2.2 32 3.2 3.6 0 Building & FY09 FY10 Construction FY09 FY10 Asset Quality imp
Slide 40: Bank Internasional Indonesia - Income Statement
Bank Internasional Indonesia I Income St Statement t t Jul 09-Jun 10 Jul 08-Jun 09 Rp Billion Contribution Contribution I t Interest t income i 6 065 6,065 4 915 4,915 Interest expense (2,753) (2,727) Net interest income 3,312 2,188 Non-interest Non interest income 1 762 1,762 1 187 1,187 Gross Oper
Slide 41: Bank Internasional Indonesia
Bank Internasional Indonesia Gross Loans: Composition (Rp trillion) and growth Asset Quality (+36%) 17.1 14.4 (+37%) 4.74% 12.6 15.9 3.46% 3.49% 13.0 3.20% 2.79% 2.88% 11.6 (+33%) 2.39% 96 9.6 11.3 8.5 2.79% (+4%) 2.00% 1.85% 1.90% 1.92% 1.87% 2.4 2.1 2.5 (+67%) 1.56% 0.3 0.4 (+33%) 0.5 Jun 09 Dec 0
Slide 42: Appendix
Appendix 43. Asset Quality 44. Capital Adequacy 45. Consumer Banking: Housing Loans and Auto Loans 46. Consumer Banking: Cards 47. Investment Banking 48. Investment Banking: Notable Deals 49. Maybank Group’s Regional Network 50. Regional Expansion 51. Bank Internasional Indonesia (BII) 52. BII: WOM
Slide 43: Asset Quality continued to improve. Net NPL declined to 1.2%
Asset Quality continued to improve. Net NPL declined to 1.2% Non Performingg Loans (NPL) ( ) Loan Loss Coverage g 3.50% 3.46% 3.26% 204.4% 198.9% 3.05% 198.2% 2.90% 200.0% 177.9% 1.64% 1.60% 1.43% 1.36% 180.0% 173.4% 1.22% Malaysia Singapore 4Q09 1Q10 2Q10 3Q10 4Q10 160.0% BII Gross NPL Net NPL Over
Slide 44: Capital Adequacy remains robust
Capital Adequacy remains robust Group 14.81% 13.71% 14.58% 10.81% 10.10% 10.97% FY09 FY10* FY10 FY10** FY10 Core capital ratio Risk‐weighted capital ratio * Entire electable portion paid in cash under Dividend Reinvestment Plan ((DRP)) Bank ** Full electable portion reinvested under DRP 14.06% 14.91
Slide 45: Consumer Banking: Housing Loans and Auto Loans
Consumer Banking: Housing Loans and Auto Loans Rising Housing Loan Stock Housing Loans: Improving Asset Quality 4,115 (RM million) Gross NPL 3,448 3,090 7.8% 7.6% 2,795 7.1% 6.6% 2,244 5.7% 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 Housing includes other mortgage loans Auto Loans: Rising App
Slide 46: Consumer Banking: Cards
Consumer Banking: Cards Gaining Market Share Card Growth above industry Jun 10 Jun 09 YoY Maybank Industry* Cardbase 16.6% 15.0% Cardbase ‐9.0% ‐17.7% Billings 21.8% 20.7% Billings 20.2% 14.4% Receivables 14.4% 14.0% Receivables 14.8% 11.3% Merchant Sales 29.3% 26.5% Merchant Sales 23.4% 11.5% • Car
Slide 47: Investment Banking
Investment Banking FY10: Strongg recoveryy in fee based income to FY08 level g FY10 Income Segmentation Other FY10 196.2 Income 10% FY09 107.3 Fund Based FY08 198.3 Income 8% FY07 97.9 Fee Based FY06 54.0 Income 82% 0 50 100 150 200 250 Industry Position & Market Shares : July 09 – June 10 Industry
Slide 48: Investment Banking: Winning Notable Deals in FY2010
Investment Banking: Winning Notable Deals in FY2010 Debt Capital Markets Cagamas Berhad: Islamic and Conventional CP and MTN Issuance Programme (RM60 billion) Bookrunner Sime Darby: RM4.5 billion Islamic MTN Programme and CP/MTN Programme (Combined master limit of RM4.5 billion), Principal Adviser/
Slide 49: Maybank Group's Regional Network
Maybank Group’s Regional Network Other Markets Brunei (3 branches) Bahrain Pakistan China Papua New Brunei Guinea Treasury y Centres Treasury An Binh Bank Centres (95 branches). To New York Growth increase branches in to 150 selected assets London and Vietnam (2 Treasury branches) activities Explori
Slide 50: Regional Expansion On Track
Regional Expansion On Track Gross Revenue (RM ( million)) International: International: 26.5% 28.9% FY09 1,313 1,185 FY10 1,388 (12.5%) (11.3%) (10.8%) 288 1,874 (2.7%) ((14.6%)) 463 (3.6%) 7,733 (73.5%) 9,147 (71.1%) Profit Before Tax (RM million) FY10 International: 82 ‐275 70 (1.3%) 21.0% FY09 (‐
Slide 51: Bank Internasional Indonesia
Bank Internasional Indonesia PBT turned positive Customer Deposits p 5,192 52.2 47.3 46.7 43.5 42.4 43.8 41.0 3,335 Rupiah trilllion Rupiah Billion R Revenue PBT 970 ‐258 Dec‐08 Mar‐09 Jun‐09 Sep‐09 Dec‐09 Mar‐10 Jun‐10 FY09 FY10 Cost to Income Ratio Capital Adequacy: bank only 66.5% (credit & marke
Slide 52: Bank Internasional Indonesia: WOM Finance
Bank Internasional Indonesia: WOM Finance Revenue and PBT Monthly Sales Volume Thousands of units 681 709 55.7 54.2 56.9 52.8 45.6 44.5 40.9 42.1 38.4 36.1 36.8 Rupiah Billion 35.7 Revenue 31.1 PBT 118 14 Mar 10 Apr 10 Jun 10 Dec 09 Jan 10 Feb 10 Nov 09 Jul 09 Aug 09 Sep 09 Oct 09 Jun 09 May 10 YTD
Slide 53: MCB Bank: Financial Highlights
MCB Bank: Financial Highlights Revenue and PBT Capital Adequacy Ratio (CAR) 20,842 20,688 21.2% billion 11,689 12,212 Revenue PKR b PBT 18.8% 1H09 1H10 1H09 1H10 Loans and Deposits Key Ratios 1H10 1H09 419.2 ROA 3.1% 3.3% 367.6 ROE 25.3% 27.4% PKR billion 253.2 245.1 Jun 09 Cost to Income Ratio 31.1
Slide 54: Illustration of DRP Computation
Illustration of DRP Computation From our shareholders’ perspective, RM based on per 1,000 Maybank shares Net Dividend per 1,000 Maybank shares (33 sen) 330 - Cash Portion (3 sen) 30 - Electable Portion (30 sen) 300 Number of new Maybank shares acquired assuming shareholder elect to reinvest the enti
Slide 55: Thank You
Thank You Disclaimer. This presentation has been prepared by Malayan Banking 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 or impl
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