Malayan Banking Bhd. · MYX:MAYBANK

Malayan Banking Bhd — 9M FY2017 Earnings Presentation

55 slides from Malayan Banking Bhd's earnings presentation, Nov 30, 2017

  1. Slide 1: Investor Presentation: Financial Results 3Q FY2017 and 9M FY2017

    Humanising Financial Services Investor Presentation Financial Results 3Q FY2017 and 9M FY2017 ended 30 September 2017 30 November 2017 www.maybank.com 0

  2. Slide 2: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 1 Financial Results: 3Q FY2017 and 9M FY

  3. Slide 3: 9M FY2017 Overview

    9M FY2017 Overview Net income growth of 6.8% to RM17.3 billion, with net profit rising 23.0% to RM5.4 billion 1 • Net income grew 6.8% YoY from net fund based income growth of 11.7% YoY as NIM improved by 13bps YoY to 2.39% and Group loans grew 5.3% Net profit surged • Better NIM from improved yield

  4. Slide 4: FY2017 Key Performance Indicators Review

    FY2017 Key Performance Indicators Review Improved QoQ trends for KPIs 9M FY2017 Achievement Key Performance Indicators QoQ Growth (%) Ann. YoY 1Q 2Q 3Q Growth (%) Growth (%) Headline KPI Return on Equity 10.0 9.6 11.6 10.3 - Other Guidance Group Loans (reported) 0.1 (1.2) 1.2 0.0 5.3 Group Loans (no

  5. Slide 5: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 4 Financial Results: 3Q FY2017 and 9M FY

  6. Slide 6: P&L Summary: 9M FY2017

    P&L Summary: 9M FY2017 PPOP rose 6.4% while net profit increased 23.0% on lower net impairment losses More 9M 9M 3Q 2Q 3Q details on RM million YoY QoQ YoY FY2017 FY2016 FY2017 FY2017 FY2016 s.23 Net fund based income * 12,466.4 11,156.5 11.7% 4,205.1 4,143.5 1.5% 3,709.3 13.4% s.8/23/ 24 Net fee ba

  7. Slide 7: Net Fund Based Income: 9M FY2017 (1/2)

    Net Fund Based Income: 9M FY2017 (1/2) Strong net fund based income growth of 11.7% supported by NIM improvement. YTD, NIM rose 12 bps to 2.39% Net Interest Margin (%) 5-Year Trend 2.43 2.39 2.31 2.31 2.27 FY2013 FY2014 FY2015 FY2016 9M FY2017 6

  8. Slide 8: Net Fund Based Income: 9M FY2017 (2/2)

    Net Fund Based Income: 9M FY2017 (2/2) Group loans growth of 5.3% YoY supported by Group CASA growth of 8.5% Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking  5.3%  6.6%  4.6%  5.4% 261.5 278.7 118.5 125.0 72.2 +9.4% 79.1 22.4 +34.8% 30.2 SGD billi

  9. Slide 9: Net Fee Based Income: 9M FY2017

    Net Fee Based Income: 9M FY2017 Lower net fee based income on lower unrealised gains RM million 9M FY2016 9M FY2017 YoY Commission, service charges and fees 2,667 2,718  1.9% Investment & Trading Income 738 845  14.5% Unrealised gain/ (losses) on securities 443 141  (68.3)% Unrealised gain/ (loss

  10. Slide 10: Overheads: 9M FY2017

    Overheads: 9M FY2017 Overheads grew 7.1% YoY; Group cost-to-income ratio below threshold of 50% 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2017 FY2016 FY2017 FY2017 FY2016 Personnel Costs 4,582.7 4,293.4 6.7% 1,531.8 1,543.9 (0.8)% 1,460.9 4.9% Establishment Costs 1,421.5 1,436.7 (1.1)% 479.6 459.6 4.4

  11. Slide 11: Asset Quality

    Asset Quality Loan provisions reduced 20.6% YoY for 9M FY2017 on slower growth in impaired loan formation Allowance for losses on loans Slower YTD growth in Group GIL volume compared to 2016 Allowances for losses on loans Loan loss coverage  9.9% YTD  4.3% QoQ 0.0% QoQ  5.4% QoQ 74.8% 72.0% 71.2%

  12. Slide 12: Asset Quality for Group and Home Markets

    Asset Quality for Group and Home Markets Moderating QoQ asset quality trends for Group and home markets Group GIL Ratio Composition GIL Ratio Components Sep 2017 Jun 2017 Mar 2017 Dec 2016 Sep 2016 Non Performing Loans (NPL) 1.97% 1.79% 1.77% 1.64% 1.35% Restructured & Rescheduled (R&R) 0.32% 0.37%

  13. Slide 13: Asset Quality by Line of Business

    Asset Quality by Line of Business Broadly stable QoQ asset quality trends across portfolios; country specific uptick in Retail SME and Business Banking Consumer Mortgage Auto Finance Credit Cards 1.54% 2.41% 2.48% 2.67% 2.22% 2.38% 1.44% 2.35% 2.37% 1.32% 1.40% 1.51% 1.76% 1.23% 1.27% 2.13% 2.26% 2.

  14. Slide 14: Commodities Exposure: September 2017

    Commodities Exposure: 30 September 2017 Maybank Group’s exposure to direct and indirect oil and gas borrowers as well as other commodities Direct & Indirect Oil & Gas: Other Sectors Borrowers with O&G related exposure Loan Agriculture exposure Borrowers’ Status: Maybank Group 1.78% Loan 88% comes Oi

  15. Slide 15: Liquidity Management: September 2017 (1/2)

    Liquidity Management: 30 September 2017 (1/2) Maintained well-diversified funding sources with customer funding strong at 75% of total funding Balance Sheet Management Funding Breakdown Borrowings and Capital Instruments by Currency From Group’s Total Assets of RM766.0 billion FI Deposits, Funding C

  16. Slide 16: Liquidity Management: September 2017 (2/2)

    Liquidity Management: 30 September 2017 (2/2) Maybank Group has healthy liquidity risk indicators, displaying strength in its diversified funding sources Moving Towards More Reflective Liquidity Risk Indicators LDR LTF LTFE LCR • Reflects simplistic assessment on deposits. It ignores other funding i

  17. Slide 17: Strong Capital Position: September 2017

    Strong Capital Position: 30 September 2017 Total capital and CET1 ratios (assuming 85% dividend reinvestment rate) at 18.03% and 13.50% respectively Before proposed After proposed dividend dividend, Regulatory Requirements assuming 85% reinvestment rate Jan 2019 2017 2018 Onwards 19.29% 18.24% 18.03

  18. Slide 18: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 17Financial Results: 3Q FY2017 and 9M FY

  19. Slide 19: Market Outlook

    Market Outlook 2017 industry outlook for our home markets Key Indicators Industry Outlook • GDP (f) 5.8% (2016: 4.2%) • Loans growth in 2H 2017 to be supported by stable consumer loan demand and pick-up in • System loan (f) 4.7% for 2017 corporate lending. • OPR(f) 3.00% (2016: 3.00%) • NIM expected

  20. Slide 20: Maybank Performance Outlook

    Maybank Performance Outlook Group performance in 2H 2017 1 Top line growth supported by effective NIM management 2 Maintaining full year ROE guidance of 10%-11% Full year Group loan growth of ~3%; loan growth for 3 Maybank Malaysia to be in line with industry growth 4 Deposit growth to match loan gr

  21. Slide 21: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 20Financial Results: 3Q FY2017 and 9M FY

  22. Slide 22: International & Malaysia Portfolio Mix 9M FY2017

    International & Malaysia Portfolio Mix 9M FY2017 Net Operating Income Profit Before Tax Gross loans* 9M FY2017 (Jan 17 – Sep 17) Overseas: 8.0% Overseas: 11.0% Overseas: 8.0% 41.3% 29.4% 41.9% 8.1% 14.8% 8.8% RM17.29b 9.6% RM7.17b RM485.9b 58.7% 25.8% 58.1% 18.5% 70.6% Malaysia Singapore Indonesia O

  23. Slide 23: Segmental Performance of Businesses: 9M FY2017 (1/2)

    Segmental Performance of Businesses: 9M FY2017 (1/2) Net Operating Income 9M FY2016  +6.8% Group Global Banking (GB)  +0.9% 9M FY2017 9M FY2016: 6,907 9M FY2017: 6,969 17,289 16,195  +8.6%  +1.3%  (6.8)%  +51.5%  +2.8% 9,272 10,067 RM million 5,724 5,798 1,065 993 1,146 1,178 117 177 Total Gr

  24. Slide 24: Segmental Performance of Businesses: 9M FY2017 (2/2)

    Segmental Performance of Businesses: 9M FY2017 (2/2) Net Fund Based Income 9M FY2016  +11.7% Group Global Banking (GB)  +5.8% 9M FY2017 9M FY2016: 3,772 9M FY2017: 3,992 12,466 11,156  +8.8%  +5.9%  +4.1%  +13.3%  +9.9% 7,050 7,668 RM million 3,555 3,767 220 229 (4) (4) 744 818 Total Group Co

  25. Slide 25: Net Fee Based Income: QoQ

    Net Fee Based Income: QoQ RM million 2Q FY2017 3Q FY2017 QoQ Commission, service charges and fees 908 951  4.7% Investment & Trading Income 301 312  3.9% Unrealised gain/ (losses) on securities 113 (179)  >(100)% Unrealised gain/ (losses) on derivatives 65 69  7.3% Foreign Exchange Profit 48 244

  26. Slide 26: Unaudited Income Statement for Insurance and Takaful Business

    Unaudited Income Statement for Insurance and Takaful Business 9M 9M 3Q 2Q 3Q RM million YoY QoQ YoY FY2017 FY2016 FY2017 FY2017 FY2016 Net interest income 810.8 733.2 10.6% 260.6 299.1 (12.8)% 248.5 4.9% Net earned premiums 3,817.1 3,251.6 17.4% 1,307.4 1,255.8 4.1% 1,018.4 28.4% Other operating inc

  27. Slide 27: Group Gross Loans Growth: September 2017

    Group Gross Loans Growth: 30 September 2017 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2017 2017 2017 2016 Ann. 2016 Group Gross Loans 485.9 480.1  1.2% 486.1 485.7 0.0% 461.2  5.3% Malaysia (RM billion) 57% 278.7 273.8  1.8% 270.7 272.0  3.3% 261.5  6.6% Community Financial

  28. Slide 28: Malaysia Loans Growth: September 2017

    Malaysia Loans Growth: 30 September 2017 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2017 2017 2017 2016 Ann. 2016 Community Financial Services 72% 199.8 197.1  1.3% 195.6 194.4  3.7% 190.6  4.8% Community Financial Services ¹ 72% 199.8 197.1  1.3% 195.6 193.7  4.2% 190.6  4.

  29. Slide 29: Group Deposits Growth: September 2017

    Group Deposits Growth: 30 September 2017 % of 30 Sep 30 Jun 31 Mar 31 Dec YTD 30 Sep QoQ YoY Portfolio 2017 2017 2017 2016 Ann. 2016 Group Gross Deposits 517.2 511.7  1.1% 508.1 517.1 0.0% 503.5  2.7% Malaysia (RM billion) 60% 310.4 304.9  1.8% 301.8 300.9  4.2% 288.7  7.5% Savings Deposits 13%

  30. Slide 30: LDR and CASA Ratio

    LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 93.9% 95.7% 93.8% 94.0% 96.2% 91.6% 91.5% 90.8% 90.9% 90.7% 37.4% 36.8% 36.8% 34.8% 36.0% 40.3% 40.5% 41.2% 40.4% 39.5% 34.6% 35.7% 35.1% 35.0% 33.2% 38.4% 37.6% 38.0% 37.6% 36.6% Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Sep 16 Dec 16 Mar 17 Jun

  31. Slide 31: Key Operating Ratios

    Key Operating Ratios 9M 9M 3Q 2Q 3Q (%) YoY QoQ YoY FY2017 FY2016 FY2017 FY2017 FY2016 Return on Equity 10.3 9.2 1.1% 11.6 9.6 2.0% 11.4 0.2% Net Interest Margin 2.39 2.26 13 bps 2.35 2.39 (4) bps 2.22 13 bps Fee to Income Ratio 27.9 31.1 (3.2)% 29.0 28.7 0.3% 32.0 (3.0)% Loans-to-Deposit Ratio 94.0

  32. Slide 32: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 31Financial Results: 3Q FY2017 and 9M FY

  33. Slide 33: Community Financial Services: Overview of Market Share for Malaysia

    Community Financial Services: Overview of Market Share for Malaysia Note: ¹ Rebased market share due to adjustment made to Industry data by BNM from ^ Without IA. With IA, the market share as at June’17 for Total Core Retail Deposits, Jan-15 to Jun-17. Retail CASA, Retail Savings, Demand Deposits an

  34. Slide 34: Community Financial Services: Overview of Malaysia Loans Portfolio

    Community Financial Services: Overview of Malaysia Loans Portfolio Consumer loans grew 5.3% YoY to RM160.0 billion led by Business Banking + SME loans grew by 2.8% YoY to RM39.7 mortgage and auto finance growth billion led by SME growth of 19.0% YoY  +5.3% YoY  +2.8% YoY  +4.0 % YTD Ann.  +2.3%

  35. Slide 35: Community Financial Services: Overview of Malaysia Deposits Portfolio

    Community Financial Services: Overview of Malaysia Deposits Portfolio Total CFS deposits contracted by -2.1% YoY, due to Consumer deposits grew +2.0% YoY reduction in costly fixed deposits  (2.1)% YoY  +2.0% YoY  (4.9)% YTD Ann.  +0.5% YTD Ann. 210.5 214.0 206.2 137.3 134.7 136.8 RM billion RM b

  36. Slide 36: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 35Financial Results: 3Q FY2017 and 9M FY

  37. Slide 37: Global Banking: Overview of Malaysia Corporate Banking Portfolio

    Global Banking: Overview of Malaysia Corporate Banking Portfolio Total GB loans increased 9.4% YoY to RM79.1 billion Trade Finance market share 26.2% RM billion 25.5% 25.1% 24.7% 24.5% 39.1 +2.8% YoY Term Loan 39.2 38.0 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 28.5 Short Term  + 23.1% YoY Note: Market sh

  38. Slide 38: Global Banking: Overview of Group Securities and Global Markets Portfolio

    Global Banking: Overview of Group Securities and Global Markets Portfolio Group Securities Portfolio¹ grew 16.1% YoY Group Securities Portfolio¹: 40.3% Foreign Securities as at 9M FY2017 9M FY2016 9M FY2017 Others Government Others (NIDs, BA, etc) Securities (NIDs, BA, etc) Government 9.4% - Domesti

  39. Slide 39: Global Banking: Overview of Group Investment Banking Portfolio

    Global Banking: Overview of Group Investment Banking Portfolio 9M FY2017 Total Income Breakdown by Country Total Income for Maybank Kim Eng Hong Kong Others  (6.8)% Philippines 5% 4% 2% 1,065.3 992.7 Indonesia 4% Malaysia 37% RM992.7 mil Thailand RM mil 22% 9M FY2016 9M FY2017 Singapore 26% 9M FY20

  40. Slide 40: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 39Financial Results: 3Q FY2017 and 9M FY

  41. Slide 41: Maybank Singapore: P&L Summary

    Maybank Singapore: P&L Summary SGD million 9M FY2017 9M FY2016* YoY Net Fund Based income 508.46 384.77 32.1% Net Fee Based income 243.69 210.58 15.7% Net income 752.15 595.35 26.3% Overhead expenses (287.08) (269.19) 6.6% Operating profit 465.07 326.16 42.6% Profit before taxation 234.30 176.92 32.

  42. Slide 42: Maybank Singapore: Overview of Loans and Deposits Portfolio

    Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Consumer deposits account for 50% of deposits  +4.6% YoY  (4.4)% YoY 37.4 38.9 39.1 Other 46.2 44.5 44.2 (Consumer) Consumer - 3.4 3.5 3.5 Car Loan Time Deposits 1.8 1.8 2.0 Consumer 17.1 15.0 19.4 Consumer 40%

  43. Slide 43: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 42Financial Results: 3Q FY2017 and 9M FY

  44. Slide 44: Maybank Indonesia: P&L Summary

    Maybank Indonesia: P&L Summary IDR billion 9M FY2017 9M FY2016* YoY 3Q FY2017 2Q FY2017 QoQ Net Fund Based income 5,727 5,492 4.3% 1,891 1,936 (2.3)% Net Fee Based income 2,142 1,986 7.9% 685 890 (23.0)% Net income 7,868 7,477 5.2% 2,576 2,826 (8.8)% Overhead expenses (4,494) (4,145) 8.4% (1,429) (1

  45. Slide 45: Maybank Indonesia: Overview of Maybank Finance Operations

    Maybank Indonesia: Overview of Maybank Finance Operations Revenue and Profit Before Tax Financing – stand alone IDR billion IDR billion  +30.6%  +20.2% 6,999 815 678 5,358  +14.0% 232 265 9M FY2016 9M FY2017 Sep 16 Sep 17 Revenue Profit Before Tax Asset Quality Unit Financing (unit)  (8.9)%  (9

  46. Slide 46: Maybank Indonesia: Overview of WOM Finance Operations

    Maybank Indonesia: Overview of WOM Finance Operations Revenue and Profit Before Tax Financing – stand alone IDR billion IDR billion  +6.7%  +9.3% 6,074 1,554 5,695 1,422  +81.5% 73 132 9M FY2016 9M FY2017 Sep 16 Sep 17 Revenue Profit Before Tax Asset Quality Unit Financing (‘000 unit)  +0.8% 324

  47. Slide 47: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 46Financial Results: 3Q FY2017 and 9M FY

  48. Slide 48: Islamic Banking: Performance Overview

    Islamic Banking: Performance Overview Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM157.2 billion RM million 9M FY2017 9M FY2016 YoY 13% Sep-16 Sep-17 41.2 4% Total Income 3,470.1 2,789.6 24.4% 4% 36.4 34.5 32.2 33.0 Profit Before Tax 1,967.0 1,196.5

  49. Slide 49: Islamic Banking: Market Share

    Islamic Banking: Market Share Maybank Islamic Market Share (Malaysia) as of Sep 17 Market Share by Product (Malaysia) as of Sep 17 Key Products Sep 17 Sep 16 34.1% 33.6% 33.6% 33.5% 33.5% Automobile Financing 44.9% 43.7% Home 27.9% 28.1% 30.4% 30.4% 29.8% 29.6% 29.7% Term Financing 29.6% 30.3% Sep-1

  50. Slide 50: Insurance and Takaful: Performance Overview

    Insurance and Takaful: Performance Overview Gross Premium Life / Family (New Business) Market Share Single Premium  >100% AIA Ins. & Tak. 21.8% Regular Premium  19.5% Prudential Ins. & Tak. 14.5% No. 4 in Life/Family Credit Premium  34.8% 9M FY17 GE Ins. & Tak. 14.2% (New Business) Group Premium

  51. Slide 51: Maybank Philippines: Performance Overview

    Maybank Philippines: Performance Overview Key Highlights Revenue and PBT  Revenue increased by 9.7% YoY, led by higher net interest income (NII). + 9.7% YoY  Increase in NII contributed by higher interest income from term loans. 4,354.6 3,968.6  PBT increased >100% YoY driven by higher revenue, c

  52. Slide 52: Table of Contents

    Table of Contents Executive Summary 2 Results Overview 5 Prospects & Outlook 18 Appendix: 1. Financial Performance 21 2. Community Financial Services 32 3. Global Banking 36 4. Maybank Singapore 40 5. Maybank Indonesia 43 6. Other segments 47 7. Affiliates 52 51Financial Results: 3Q FY2017 and 9M FY

  53. Slide 53: An Binh Bank: Performance Overview

    An Binh Bank: Performance Overview Key Highlights Revenue and PBT  Revenue increased by 33.4% YoY, mainly due to higher net interest income and fee income. + 33.4 % YoY  PBT increased by >100.0% YoY or VND235.4b YoY, mainly contributed by higher revenue. 1,960.6  Gross loans expanded by 10.7% YTD

  54. Slide 54: MCB Bank: Performance Overview

    MCB Bank: Performance Overview Key Highlights Revenue and PBT  Revenue decreased marginally by 0.3% YoY, due to lower net (0.3)% YoY interest income. 46.6 46.5  PBT decreased by 13.4% YoY, mainly attributed to higher administrative expenses. (13.4)% YoY  Gross loans increased by 44.4% YTD ann, su

  55. Slide 55: Malayan Banking Berhad Investor Relations Contact

    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@

Malayan Banking Berhad (Maybank) — 9M FY2017 Earnings Presentation on 6ix