Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q4 FY2010 Earnings Presentation
45 slides from Malayan Banking Bhd's earnings presentation, Aug 20, 2010
Slide 1: Financial Results 4th Quarter FY2010 Analyst Briefing
FINANCIAL RESULTS 4th Quarter FY2010 ended 30 June 2010 Analyst Briefing 20 August 2010
Slide 2: Executive Summary
Executive Summary Financial Performance Business Review Country Review Strategy and Prospects
Slide 3: Key Highlights
Key Highlights ■ 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 Quality continued to improve with Net NPL ratio dec
Slide 4: 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 3
Slide 5: 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 6: Exceeding our targets: loans, asset quality, capital
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% 1.64% 1.22% 213.3 193.3 11.3 17.1 FY08 FY09 FY10 11.7 171.0 12.4 Net NPL Loan Loss Coverage 11.9 40.6 39.3 Robust Capital Adequacy
Slide 7: Financial Performance
Executive Summary Financial Performance Business Review Country Review Strategy and Prospects 6
Slide 8: 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 9: 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 10: Encouraging loans growth well funded by deposits growth
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 144.3 129.9 11.0% Malaysia +12.4% 138.4 RM million Consumer, of which 72.2 62.8 15.0% 48.9 Sin
Slide 11: 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% RM million 2,606.9 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 Exchange Net premiums Investments and
Slide 12: Expenses grew slower than revenue growth
Expenses grew slower than revenue growth Personnel costs 15.3% IT expenses 6,412.1 Marketing expenses 296.6 Change QoQ % YoY % Admin, general expenses, fees & 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 1.9% Marketing expenses -64.3% 1.
Slide 13: 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% 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% 2.76%
Slide 14: 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 15: Business Review
Executive Summary Financial Performance Business Review Country Review Strategy and Prospects 14
Slide 16: Improved performance across all business segments
Improved performance across all business segments 22.4% 12,872 FY09 FY10 Revenue (RM million) 10,519 9.5% 32.3% 11.0% 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 Investment Co
Slide 17: Consumer Banking: Housing Loans and Auto Loans
Consumer Banking: Housing Loans and Auto Loans Housing Loans market share stabilising Uplift in new housing loans 16% FY10: RM2.14 bil. -1.0% 700 242% 14.9% uplift 15% -0.5% 600 13.9% 500 14% 13.4% RM million 400 FY09: RM0.63 bil. 13% 300 12% 200 11% 100 10% 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
Slide 18: Business and Corporate Banking
Business and Corporate Banking Loans growth led by Commercial and Corporate Banking Improvement in Asset Quality (Gross NPL ratio) 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 1.2% 1.3% 1.3% 1.3% 11.0 1.0% Commercial Corporate Banking Banking 38.1 41.4 Corpo
Slide 19: 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, 51 1,291.0 % 1,426.0 Negotiable Instruments of Deposits / PDS / BA, 4% Corporate RM billion Bonds, 36% 716.0 549.0 Credit Rating for Private Debt Securitie
Slide 20: 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% MSIG 6.1% Source : ISM Report 0% 5% 10% 15% 20% 0% 5% 1
Slide 21: 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% Public +12% Islamic, 11% 476 533 CIMB Islamic, 12% Am Bank FY09 FY1
Slide 22: Country Review
Executive Summary Financial Performance Business Review Country Review Strategy and Prospects 21
Slide 23: 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 338.0 15 4.3 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 3.2 3.6 0 Building & FY09 FY10 Construction FY09 FY10 Asset Quality improv
Slide 24: Bank Internasional Indonesia Income Statement
Bank Internasional Indonesia Income Statement Jul 09-Jun 10 Jul 08-Jun 09 Rp Billion Contribution Contribution Interest income 6,065 4,915 Interest expense (2,753) (2,727) Net interest income 3,312 2,188 Non-interest income 1,762 1,187 Gross Operating income 5,074 3,375 Operating expenses (excluding
Slide 25: 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% 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 09 J
Slide 26: Strategy and Prospects
Executive Summary Financial Performance Business Review Country Review Strategy and Prospects 25
Slide 27: Reframing our Vision, Mission and Strategic Objectives
Reframing our Vision, Mission and Strategic Objectives By 2015 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 ASEAN whol
Slide 28: New Group Organisation Structure to support aspirations
New Group Organisation Structure to support aspirations Maybank Group CEO + Support (CFO, CRO,GHC, Legal, Compliance, Communications) Community Global Wholesale Insurance & E ISLAMIC Financial Banking Takaful INSPIRED N Services A Leveraging Regaining Being the B shared domestic National L distribut
Slide 29: Expanded Group Executive Committee
Expanded Group Executive Committee with key divisions represented 28
Slide 30: Priorities for FY2011
Priorities for FY2011 1. Grow market share of individual and non-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 core ASEAN mar
Slide 31: Prospects
Prospects ■ Recovering regional economies to spur demand with loans growth of 12% in Malaysia, 24% at BII and 5% in Singapore. ■ International contribution is expected to increase mainly from 2 key home markets of Singapore and Indonesia and leveraging on Global Wholesale Banking platform. ■ Islamic
Slide 32: Key Performance Indicators (KPI) for FY2011
Key Performance Indicators (KPI) for FY2011 Headline KPIs Return on Equity 14% Loans and Debt Securities 12% Growth Other targets Loans Growth • Malaysia 12% • Singapore 5% • BII 24% Net Interest Margin Stable Dividend Payout Ratio 40%-60% Note: Loans growth for Singapore and BII are in local curren
Slide 33: Appendix
APPENDIX 33. Asset Quality 34. Capital Adequacy 35. Consumer Banking: Housing Loans and Auto Loans 36. Consumer Banking: Cards 37. Investment Banking 38. Investment Banking: Notable Deals 39. Regional Expansion 40. Bank Internasional Indonesia (BII) 41. BII: WOM Finance 42. MCB Bank 43. Illustration
Slide 34: Asset Quality continued to improve. Net NPL declined to 1.2%
Asset Quality continued to improve. Net NPL declined to 1.2% Non Performing Loans (NPL) Loan Loss Coverage 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 Overall 140
Slide 35: Capital Adequacy remains robust
Capital Adequacy remains robust Group 14.81% 13.71% 14.58% 10.81% 10.10% 10.97% FY09 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% 13.78% FY0
Slide 36: 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 37: 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 38: Investment Banking
Investment Banking FY10: Strong recovery in fee based income to FY08 level 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 Rank
Slide 39: 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 40: 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 (-16.4%
Slide 41: Bank Internasional Indonesia
Bank Internasional Indonesia PBT turned positive Customer Deposits 5,192 52.2 47.3 46.7 43.5 42.4 43.8 41.0 3,335 Rupiah trillion Rupiah Billion 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 & market ris
Slide 42: 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 Aug 09 Jun 09 Jan 10 Jul 09 Jun 10 Oct 09 Nov 09 Dec 09 Mar 10 Sep 09 Apr 10 May 10 Feb 10 YTD
Slide 43: MCB Bank: Financial Highlights
MCB Bank: Financial Highlights Revenue and PBT Capital Adequacy Ratio (CAR) 20,842 20,688 21.2% PKR billion 11,689 12,212 Revenue 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 44: 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 45: 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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