Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — Q1 FY2025 Earnings Presentation

39 slides from Ammb Holdings Bhd's earnings presentation, Aug 20, 2024

  1. Slide 1: Q1FY2025 Results Investor Presentation

    Q1FY2025 RESULTS (Quarter Ended 30 June 2024) INVESTOR PRESENTATION 20 AUGUST 2024

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Jamie Ling 3 Q1FY25 Financial Snapshot 4 Retail Loans under Observation 5 Loans by Stages 6 Outlook for CY2024

  3. Slide 3: Q1FY25 Financial Snapshot

    Financial Snapshot (Reported) Q1FY25 Financial Snapshot Strong PATMI growth, up 32%, with NIM improvement and lower Q1FY25 Reported Financials Variance impairment • NII up 6% lifted by improved NIM of 1.89% (Q1FY24: 1.76%) 1,179 • NoII lower by 19% due to non-repeat of AmGen divestment Income  (2%)

  4. Slide 4: Loans under observation reducing further

    Loans under 12 months of observation post Payment Holiday and Repayment Assistance (PHRA) programmes Loans under observation reducing further Total RB loans by staging (RM’ bil) A) Mortgage loans by staging (RM’ bil) 74.0 73.8 Of which, under observation1 Of which, under observation1 1.5 , 2% 1.5 ,

  5. Slide 5: Portfolio quality stable

    Loans (Reported) Portfolio quality stable Loans by ECL Stages (RM’ bil) Breakdown by Business Segments (%) Stage 1 93.7% 93.0% Stage 1 Stage 2 Stage 3 WB 91.3% BB 91.5% RB 88.9% 134.1 132.7 89.4% 129.0 130.8 131.3 1.7% 1.6% 1.7% 1.7% 1.7% 7.6% 9.9% 9.8% 8.2% 9.9% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 9

  6. Slide 6: Outlook for CY2024

    Market Outlook Outlook for CY2024 GDP Growth 4.5% to 5.0% Inflation 2.0% to 3.0% Malaysia Unemployment Rate 3.2% USD/MYR Outlook 4.50 to 4.53 Loans Growth 5.0% to 6.0% Asset Quality Stable Banking OPR 3.00% Sector Liquid & Capital Positions Resilient CY = Calendar Year 6 Q1FY25 Results – Investor Pr

  7. Slide 7: GCFO Presentation

    GCFO PRESENTATION Shafiq Bin Abdul Jabbar 8-22 Financial Overview

  8. Slide 8: Q1FY25 Financial Overview - PATMI of RM500m

    Financial Overview (Continuing) Q1FY25 Financial Overview - PATMI of RM500m 1 Q1FY25 Results (QoQ) • Income of RM1,179mil (Q4FY24: RM1,170mil), up 1% QoQ - NII grew 5% to RM861mil (Q4FY24: RM823mil), driven by 10bps NIM improvement. Reported NIM was 1.89% (Q4FY24: 1.79%) - NoII dropped 8% to RM318mi

  9. Slide 9: Q1FY25 Performance Summary – P&L

    Financial Overview (Reported) Q1FY25 Performance Summary – P&L P&L (RM’ mil) Q4FY24 Q1FY25 QoQ Change Q1FY24 Q1FY25 YoY Change Total Income 1,170 1,179  1% 1,202 1,179  (2%) - NII 823 861  5% 809 861  6% - NOII 347 318  (8%) 393 318  (19%) Expenses (530) (521)  (2%) (508) (521)  3% PBP 640 6

  10. Slide 10: Q1FY25 Performance Summary – Balance Sheet

    Financial Overview (Reported) Q1FY25 Performance Summary – Balance Sheet Balance Sheet (RM’ bil) Q4FY24 Q1FY25 QoQ Change Q1FY24 Q1FY25 YoY Change Gross Loans 134.1 132.7  (1%) 129.0 132.7  3% GIL 1.67% 1.70%  0.03% 1.66% 1.70%  0.04% LLC (include Reg Reserves) 109.5% 107.6%  (1.9%) 115.6% 107.

  11. Slide 11: P&L walk – Strong start to Q1FY25 with PATMI of RM500m

    Group P&L P&L walk – Strong start to Q1FY25 with PATMI of RM500m YoY Growth  6%  (7%)  2%  3%  2%  (94%)  43%  45%  42%  (100%)  32% Discont’d PATMI: (26) Positive growth in Q1FY25 Contraction in Q1FY25 Total Cont’d Discont’d Reported NII NOII Expenses PBP Impairment PBT Tax & Zakat Incom

  12. Slide 12: Resilient QoQ income growth, led by NII

    Income Resilient QoQ income growth, led by NII Business Segments Q4FY24 Q1FY25 QoQ Change Q1FY24 Q1FY25 YoY Change (RM’ mil) Wholesale Banking 261 269  3% 334 269  (20%) Investment Banking 109 100  (8%) 91 100  10% Retail Banking 464 475  3% 465 475  2% Business Banking 325 318  (2%) 269 318

  13. Slide 13: NIM uplift by 13bps YoY and 10 bps QoQ

    NIM NIM uplift by 13bps YoY and 10 bps QoQ YoY NIM Q1FY25: Reported: 1.89% (  13bps ) Net Interest Margin (NIM) Movement (QoQ) Q1FY24: Reported: 1.76% Divisions Deposits Reported: bps 13.1 1.2  10bps 1.4 3.4 (3.5) 1.1 ( 6.3 ) 189 179 Q4FY24 Retail Wholesale Banking 1 Investment Banking Business As

  14. Slide 14: NoII lower due to non-repeat of AmGen divestment gain

    NoII NoII lower due to non-repeat of AmGen divestment gain, lower GTM trading and securities gain, partially offset by broad-based growth in flow business Composition 6% 6% 25% 12% 12% 21% 6% 9% 3% 100% YoY Growth  (11%)  (82%)  26%  100%  (1%)  8%  12%  >100%  (2%)  (7%)  (100%)  (19%)

  15. Slide 15: Disciplined cost management, reported CTI of 44.2%

    Expenses Disciplined cost management, reported CTI of 44.2% Business Segments Q4FY24 Q1FY25 QoQ Change Q1FY24 Q1FY25 YoY Change (RM’ mil) Wholesale Banking 92 86  (7%) 83 86  3% Investment Banking 58 58 ≈ 55 58  5% Retail Banking 277 287  4% 284 287  1% Business Banking 97 93  (5%) 89 93  4%

  16. Slide 16: Reported PBP up 3% QoQ

    PBP & PAT Reported PBP up 3% QoQ Business Segments Q4FY24 Q1FY25 QoQ Change Q1FY24 Q1FY25 YoY Change (RM’ mil) Wholesale Banking 169 183  8% 251 183  (27%) Investment Banking 51 42  (17%) 36 42  18% Retail Banking 186 188  1% 181 188  4% Business Banking 228 225  (1%) 180 225  25% Others (20

  17. Slide 17: Lending pipeline in BB and WB remains good, repositioning RB lending

    Loans Lending pipeline in BB and WB remains good, repositioning RB lending Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: Fixed rate – 21% Islamic – 34% Retail – 56% Variable rate –79% Conventional – 66% Non-retail – 44% YTD Growth 

  18. Slide 18: Lower impairment charges in RB and BB

    Asset Quality Lower impairment charges in RB and BB Overlay: Q1FY25: 38.8 Net Impairment (YoY Movement) (RM’mil) 0.9 (205.0) (126.7) (11.3) (26.5) Positive P&L impact in Q1FY25 Negative P&L impact in Q1FY25 Gross Impaired Loans (RM’mil) and Loan Loss Coverage (LLC) Ratios Credit Cost and New Impaire

  19. Slide 19: NPL inventory largely stable QoQ

    Asset Quality NPL inventory largely stable QoQ Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Jun’23 Mar’24 Jun’24 YTD QoQ Sector Composition Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil RM’ mil Moveme

  20. Slide 20: Focus on improving cost of funds as part of strategy sees a decline in deposits

    Deposits Focus on improving cost of funds as part of strategy sees a decline in deposits Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YTD Growth Industry CASA Trend YTD Growth Industry Q1FY25 135.5  (5%)  (0%)1 Q1FY25 45.8  (13%)  0%1 FY24 142.4  9%  5%2 F

  21. Slide 21: Capital position strengthened further

    Capital Capital position strengthened further RWA/Total Assets Capital Adequacy Ratios2 RM’ bil CET 1 / Tier 1 Total CAR 1 Total Assets RWA/Total Assets Peers 16.30% 16.52% 16.49% 67.4% 15.18% 15.47% 15.32% 15.65% 62.7% 63.3% 62.8% 14.14% 14.48% 56.8% 55.3% 55.0% 54.9% 13.04% 13.24% 12.51% 13.30% 11

  22. Slide 22: Q1FY25 Summary

    Summary Q1FY25 Summary STRONG CREDIT BALANCE SHEET PROJECTS PERFORMANCE PROFILE STRENGTH • Strong PATMI growth • Adequate Loan Loss • Capital ratios • Divestment of Life with margin continue to Insurance Coverage* of 107.6% improvement strengthen • Adequate overlay • FIRB Ready • Delivered 10.2% ROE

  23. Slide 23: Thank You

    THANK YOU a So pae PRINCIPLED PROACTIVE ‘APPRECIATIVE COLLABORATIVE EXPERIMENTAL a)

  24. Slide 24: Appendix: P&L – Continuing & Discontinued Operations

    Appendix Appendix: P&L – Continuing & Discontinued Operations Year-on-Year Q1FY24 Q1FY25 YoY Movement Normalised Normalised Normalised Reported Reported Discontinued RM’mil Cont’d Ops Discont’d Op (B) Cont’d Ops Discont’d Op (B) Reported Continuing (A) + (B) (A) + (B) Operation (A) (A) Operations In

  25. Slide 25: Reported yearly performance

    Q1FY25 Results (Reported) Reported yearly performance PATMI (RM’ mil) & ROE (%)1 Total Income (RM’ mil) and Non-interest Income (%)1 Total Income: PATMI: ROE: CAGR FY22-FY24:  (0.2%) YoY Growth  32.2% YoY Growth  1.9% YoY Growth  (1.9%) PATMI/(LATMI) ROE Total Income Non-Interest Income % 10.2%

  26. Slide 26: (Impairments) / Recoveries

    Asset Quality (Impairments) / Recoveries Net (Impairments) / Recoveries and GIL Ratio Total impairments by category (RM’ mil) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 QoQ Change YoY Change ECL Stage 1 & 2 – Non defaulted1 (31) 98 (39) 188 25  (87%)  >100% ECL Stage 3 – Defaulted (174) (150) (133) (248)

  27. Slide 27: Divisional Performance

    Divisional Performance PRINCIPLED 2 PROACTIVE APPRECIATIVE COLLABORATIVE EXPERIMENTAL

  28. Slide 28: Wholesale Banking

    Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth:  (3%) YoY Growth:  (30%) Total Income RM269 mil  (20%) FY24: 755 233  5% 188 167 167 162 Transaction Banking 21% Corporate Transaction Banking  (9%) Banking 27% 3% Corp

  29. Slide 29: Wholesale Banking

    Wholesale Banking Wholesale Banking Income Statement YoY Growth  10%  (70%)  (20%)  3%  (27%)  (46%)  (30%)  (29)%  (30%) Net Interest Non-Interest Impairment RM' mil Total Income Expenses PBP PBT Tax & Zakat PAT Income Income write-back Q1FY25 232 37 269 (86) 183 26 210 (47) 162 Q1FY24 211

  30. Slide 30: Investment Banking

    Investment Banking Investment Banking League Table PAT Trend (RM’ mil) Market Share1 As At QoQ Growth:  >100% Rank2 30 June 2024 YoY Growth :  35% DCM 12.65% 4 (Overall MYR Bonds) FY24: 86 37 Islamic Sukuk 9.49% 4 27 Unit Trust 7.2% 5 26 18 Stockbroking3 7.0% 6 14 M&A3 33.5% 1 Fund Raising3 9

  31. Slide 31: Investment Banking

    Investment Banking Investment Banking Income Statement YoY Growth  17%  9%  10%  5%  18%  >100%  25%  (7%)  35% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income Q1FY25 15 85 100 (58) 42 3 45 (8) 37 Q1FY24 12 78 91 (55) 36 (0) 36 (8) 27

  32. Slide 32: Retail Banking

    Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth :  (14%) Total Income  2% YoY Growth :  >100% RM 475 mil  (54%) FY24: 94  1%  (5%) Others 3% Mortgage Retail SME 97 101 11% 8% 87  83%  (15%) Wealth Retail SME Auto Financin

  33. Slide 33: Retail Banking: Cards in circulation

    Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth:  24% Merchant volume (RM'mil) QoQ Growth:  (4%) YoY Growth:  27% YoY Growth:  75% Merchants in force ('000) QoQ Growth:  (3%) YoY Growth:  3% FY24: 17,418 FY24: 8,162 3,222 34 34 35 36 35 2,598 5,005 4,815 1,838 1

  34. Slide 34: Retail Banking

    Retail Banking Retail Banking Income Statement YoY Growth (2%)  31%  2%  1%  4%  (42%)  >100%  >100%  >100% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income Q1FY25 398 77 475 (287) 188 (74) 114 (27) 87 Q1FY24 406 59 465 (284) 181 (128)

  35. Slide 35: Business Banking

    Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth:  2% QoQ Growth:  6% Non-trade Trade YoY Growth:  17% YoY Growth:  >100% 38,111 38,700 34,971 36,093 33,219 10,647 10,422 10,127 10,177 9,265 FY24: 506 25,916 27,464 28,278 23,954 23,953 24,844 25,917 197 Q1FY

  36. Slide 36: Business Banking

    Business Banking Business Banking Income Statement YoY Growth  15%  26%  18%  4%  25%  (>100%)  >100%  >100%  >100% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income Q1FY25 238 80 318 (93) 225 32 257 (60) 197 Q1FY24 206 63 269 (89) 180

  37. Slide 37: AmBank (M) entity level

    AmBank (M) entity level AmBank (M) Income Statement YoY Growth  5%  (18%)  (1%)  1%  (3%)  (88%)  44%  60%  39% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax PAT Income Income Q1FY25 578 173 751 (333) 419 (18) 401 (96) 304 Q1FY24 551 210 761 (330) 431 (152)

  38. Slide 38: AmBank Islamic entity level

    AmBank Islamic entity level AmBank Islamic Income Statement YoY Growth  9%  (40%)  1%  5%  (1%)  (>100%)  30%  35%  28% 43 (18) (5) Net Financing Non-Financing RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ Income Income Q1FY25 271 28 298 (123) 175 5 180 (43) 138 Q1FY24 2

  39. Slide 39: Glossary & Disclaimer of warranty and limitation of liability

    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 Q1FY25 vs Q4FY24 YoY gr

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