Public Bank Bhd · MYX:PBBANK
Public Bank Bhd — FY2017 Earnings Presentation
21 slides from Public Bank Bhd's earnings presentation, December 2017
Slide 1: Investor Presentation December 2017 Financial Results
Investor Presentation December 2017 Financial Results www.publicbankgroup.com
Slide 2: FY2017 Highlights
FY2017 Highlights Income Statement Financial Indicators (%) 2017 2016 Change 2017 2016 Pre-tax profit RM7,118 mil RM6,554 mil 8.6% Net return on equity 15.8 16.5 Net profit RM5,470 mil RM5,207 mil 5.1% Cost to income ratio 31.9 32.3 attributable to Gross impaired loans ratio 0.5 0.5 shareholders Ear
Slide 3: Strong Record of Growing Dividends
Strong Record of Growing Dividends 61 58 56 54 52 2,356 2,162 2,240 2,083 1,821 Total Dividends Paid (RM'mil) Gross Dividends per share (sen) 2013 2014 2015 2016 2017 2017 2016 First interim 27 sen 26 sen Second interim 34 sen 32 sen Dividend per share 61 sen 58 sen Dividend payout RM2.36 billion RM
Slide 4: Steady Profit Growth
Steady Profit Growth 141.7 RM’mil 2017 2016 change 131.1 134.8 Net interest income 7,417.1 6,920.4 7.2% 123.7 116.1 Net income from Islamic 7,118 998.7 941.6 6.1% 6,554 banking business 6,491 5,814 Net fee and commission 5,310 5,470 1,736.5 1,565.0 11.0% 5,062 5,207 income c 4,519 Net gains and loss
Slide 5: Segmental Profit – Retail Centric
Segmental Profit – Retail Centric FY2017 vs FY2016 PBT (RM’mil) Profit Contribution Retail Operations 3,796.6 (Individuals + SMEs) 3,466.2 5% 1% 687.8 6% Overseas Operations 620.7 8% 660.9 Retail Operations Fund Management 8% 572.9 (Individuals + SMEs) 53% Overseas Operations 553.8 9% Treasury Opera
Slide 6: Net Interest Margin
Net Interest Margin 2.28 2.20 2.29 2.20 2.15 2.11 2.16 2.19 2.20 2.17 2.17 2.22 2.31 2.26 2.24 2.27 Net Interest and Finance Income Net Interest Margin (%) 2,127 RM’mil 2,029 1,850 1,751 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 Yearly Average (%) 2.24 2.16 2.20 2.28 Profit
Slide 7: Non-Interest Income
Non-Interest Income RM’mil 2,331.0 Non-Interest Income Contribution 2,094.4 899.0 7% 771.8 4% 4% 39% 15% 734.4 717.5 273.6 342.4 74.0 90.4 75.7 103.2 31% 181.8 161.6 2016 2017 Based on financial results as at 31 December 2017 Unit Trust income Fee & commission income Foreign exchange income Investme
Slide 8: Unit Trust & Bancassurance
Unit Trust & Bancassurance Net Asset Value of Funds Under Management Bancassurance Business – Annualised New Premium 81.4 RM’mil 270.2 RM’bil 239.2 16.0 70.3 15.9 64.8 14.6 15.1 189.3 12.1 11.5 254.2 65.5 224.6 55.2 177.8 52.7 2015 2016 2017 2015 2016 2017 NAV - Equity Funds NAV - Other Funds Domest
Slide 9: Efficient Operating Overheads & Lowest CIR
Efficient Operating Overheads & Lowest CIR Operating Overheads Market leader Cost-Income Ratio among peers 32.3% 31.9% 4,000 30.5% 3,500 3,428 56.9% RM’mil 3,211 2,915 52.1% 3,000 1,042 49.6% 49.1% 960 43.0% 2,500 837 2,000 31.9% 1,500 2,251 2,386 1,000 2,078 500 - 2015 2016 2017 Other expenses Pers
Slide 10: Above Industry Loan Growth
Above Industry Loan Growth Loan Growth vs Industry (%) Gross Loans and Domestic Loan Market Share 17.4% 17.7% 17.8% 16.9% 17.1% 12.0 304.5 11.6 294.0 11.8 10.8 RM’bil 273.4 282.3 10.6 10.5 10.3 245.0 269.9 7.5 221.2 251.8 9.3 7.9 7.2 228.3 4.6 206.6 5.3 4.1 3.6 2013 2014 2015 2016 2017 2013 2014 201
Slide 11: Healthy Gross Loan Growth
Healthy Gross Loan Growth Gross Loan Composition by Segment Composition 64% 16% 13% 5% 1% 1% 6.6% 2.9% 4.9% 8.9% 7.6% 1.7% RM’bil 182.4 194.4 49.6 48.1 37.5 39.3 16.9 15.4 4.5 4.2 3.1 3.1 Retail operations Hire purchase Corporate lending Hong Kong Cambodia Others 2016 2017 Gross Loan in Domestic Ope
Slide 12: Upholding Strong Asset Quality
Upholding Strong Asset Quality Gross impaired loans ratio Loan Impairment Allowances (including CA) 1.9% 1.7% 118.5% 122.4% 120.8% 1.6% 1.6% 1.5% 102.7% 95.5% 0.17% 0.11% 0.06% 0.07% 0.07% 0.7% RM’mil 0.6% 0.5% 0.5% 0.5% 351.3 259.0 192.7 203.3 146.2 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Slide 13: Healthy Deposit Growth in Support of Liquidity
Healthy Deposit Growth in Support of Liquidity Deposit Growth vs Industry (%) Deposits – Outstanding Balance and Market Share 11.6 16.6% 16.9% 16.8% 15.7% 15.9% 10.2 11.5 8.9 258.2 269.7 9.9 RM’bil 245.2 216.7 201.3 7.8 7.7 7.5 3.9 2.9 3.6 2.1 49.5 59.7 55.9 51.7 49.5 3.0 1.1 1.8 2013 2014 2015 2016
Slide 14: Healthy Core Deposit Growth
Healthy Core Deposit Growth Source of Core Deposit Core Deposit Contribution 258.2 269.7 245.2 RM’bil 47.6 216.7 45.5 201.3 43.0 18% 41.4 32.5 35.5 38.2 30.0 27.7 25.8 13% 172.2 180.2 186.6 69% 137.3 147.6 2013 2014 2015 2016 2017 Fixed deposit Savings deposit Demand deposit Core Deposit Growth in D
Slide 15: Healthy Capital Position
Healthy Capital Position PBB Group Basel III transitional phase in Dec-16 Dec-17 Jan-18 Jan-19 COMMON EQUITY 11.4% 12.2% TIER I 6.375% 7.0% CAPITAL 13.0% 12.2% TIER I 7.875% 8.5% CAPITAL Note: The Basel III capital ratio requirements are inclusive of the 15.5% 16.0% 2.5% capital conservation buffer,
Slide 16: Expansion in Business Delivery Channel
Expansion in Business Delivery Channel 2017 2016 2010 Malaysian Operations Public Bank - Domestic 257 257 249 - Overseas 7 7 4 Public Islamic Bank 2 2 1 Public Mutual 29 29 26 Public Investment Bank 1 1 1 Hong Kong & China Operations Public Finance 42 42 42 Public Bank (HK) - Hong Kong 32 32 30 - Ch
Slide 17: Targets & Achievements
Targets & Achievements The Public Bank Group’s achievement vs key performance targets are as follows: Key Performance Benchmarks 2017 2017 2018 Targets Targets Achievement Net Return on Equity 14% to 15% 15.8% 14% to 15% Total Capital Ratio >13% 16.0% >13% Gross Impaired Loan Ratio <1% 0.5% <1% Cost
Slide 18: PBB's Business Growth Strategies
PBB’s Business Growth Strategies Strategic Focus: Organic growth in focus areas Core Focus Increased Contribution Complementary Deposit-Taking Corporate Treasury Lending Business Non-Interest Income Overseas Operations Business Banking Operations Consumer Secure higher lending to growth in Expan
Slide 19: Investor Relations Contact
Investor Relations Contact Ms Chang Siew Yen Head Office Head Office Chief Operating Officer Menara Public Bank +(603) 2176 7460 146, Jalan Ampang changsiewyen@publicbank.com.my 50450 Kuala Lumpur Malaysia Ms Yik Sook Ling Tel: 603-2176 6000 Chief Financial Officer Website: www.publicbankgroup.com +
Slide 20: Appendix
Appendix RM’mil 2013 2014 2015 2016 2017 Operating profit 5,655 6,067 6,631 6,745 7,319 Profitability Profit before tax 5,310 5,814 6,491 6,554 7,118 Net profit 4,065 4,519 5,062 5,207 5,470 Earnings per share (sen) 116.1 123.7 131.1 134.8 141.7 Shareholder Net assets per share (RM) 5.83 7.26 8.09 8
Slide 21: Appendix (cont'd)
Appendix (cont’d) % 2013 2014 2015 2016 2017 Industry Net interest margin on yielding assets 2.36 2.24 2.16 2.20 2.28 N/A Net return on equity+ 22.4 19.9 17.8 16.5 15.8 N/A Profitability Pre-tax return on average assets 1.8 1.8 1.8 1.8 1.8 1.3 Ratios Cost to income ratio 30.7 30.0 30.5 32.3 31.9 45.