AMMB Holdings Bhd. · MYX:AMBANK
AMMB Holdings Bhd — Debt Investor Presentation (February 2010)
42 slides from AMMB Holdings Bhd's debt investor presentation, Feb 25, 2010
Slide 1: Debt Investor Pack: RM7.0 Billion Senior Notes Issuance Programme
AmBank (M) Berhad Group AMMB Holdings Berhad DEBT INVESTOR PACK: RM7.0 BILLION SENIOR NOTES ISSUANCE PROGRAMME 25th FEBRUARY 2010
Slide 2: Agenda
Agenda • Overview & strategy • 9MFY2010 Results summary • Conclusion • Highlights of RM7.0 billion Senior Notes Issuance Programme Appendix: i. Capital, Funding, Liquidity & Government Guarantee ii. Business highlights iii. Corporate info (rating, structure) AMBANK GROUP – INVESTOR RELATIONS - DEBT
Slide 3: AmBank Group Snapshot
AmBank Group Snapshot • Proud banking heritage spanning over 30+ years • A top 20 listed company on the Bursa Saham Malaysia (market cap ~RM15.07 billion) & rank 188 (global 1000 banks by market cap) • Top 4 largest listed banking group (market cap) in Malaysia with AmBank Group, Gross Loans : RM’bi
Slide 4: On track to deliver revised improved FY2010 earnings guidance
On track to deliver revised improved FY2010 earnings guidance Sound 9MFY2010 performance Higher revenues Staying Ahead Better-than-expected loans growth Higher FY2010 PATMI guidance ( ≥ RM950 mil) Key focus: Medium Term Aspirations (MTA) Sound Divisional profits Business Segment Investment Banking :
Slide 5: Strong 9MFY2010 results, sets good foundations for FY2010
Strong 9MFY2010 results, sets good foundations for FY2010 AmBank Group 9MFY09 9MFY10 Change Q2FY10 Q3FY10 (AMMB Holdings Berhad) Underlying PATMI growth : 17.2% Performance Profit after Tax & MI 681.0 mil 766.9 mil 12.6% 240.2 mil 268.5 mil ROE 12.4% 11.9% -0.5% 11.1% 11.6% EPS (basic, annualised) 3
Slide 6: What is ahead: Malaysia cautious but optimistic
What is ahead … Increasing global optimism but risks linger Malaysia: Cautious but Gradual Malaysian economic recovery optimistic GDP : 2009 : -2.5% , 2010 +3.5% ⁺ Fiscal spending (RM 67 billion) ⁺ Monetary policies, better-than-expected exports Progressive interest rate hike commencing early 2010 H
Slide 7: Strategic framework and MTA (medium term aspirations)
Strategic framework and MTA (medium term aspirations) • Strategic framework and • MTA (medium term aspirations) De-risk Diversify De-risk + Diversify Strategic focus : High Differentiated Growth • Maintain viable growth • Rebalancing focus Moderate Low (ISLAMIC AND CONVENTIONAL BANKING) AMBANK GROUP
Slide 8: Strategy & outlook for FY2010 refined for improving market conditions
Strategy & outlook for FY2010 refined for improving market conditions Maintain profitable growth and rebalancing focus via executing to our strategic agenda Overall Income diversification, cost management, deposit growth and enhanced risk disciplines key priorities for FY2010 Position business for p
Slide 9: On track to deliver revised improved FY2010 earnings guidance
On track to deliver revised improved FY2010 earnings guidance AmBank Group (AMMB Holdings Berhad) Medium Term FY 07 FY 08 FY 09 9MFY 10 FY 2010 Aspirations (MTA) Reported : Reported : Reported : Reported : PATMI -RM282.5 mil RM668.5 mil RM860.8 mil RM766.9 mil ≥ RM950 mil ~ 12% - 15% CAGR Underlying
Slide 10: 9MFY2010 Results summary
AmBank (M) Berhad Group: 9MFY2010 Results summary AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK, 25th FEBRUARY 2010 9
Slide 11: Group: Commendable financial performance
AmBank (M) Berhad Group: Commendable financial performance FY06 FY07 FY08 FY09 9M FY09 9M FY10 Total Income* 1,941 mil 1,943 mil 2,214 mil 2,439 mil 1,770mil 2,191 mil Performance • Driven by revenue growth Profit after Tax & MI 238 mil (362) mil 466 mil 701 mil 566 mil 600 mil (PATMI) ROE 7.2 % -10
Slide 12: Sound profit growth, with conservative provisioning
AmBank (M) Berhad Group : Sound profit growth, with conservative provisioning Business Performance Income : Retail and Business Banking recorded good growth in incomes Recovery in capital and equity markets contributed to higher investment and trading incomes Expenses: Reflects salary and staffing i
Slide 13: Group: Improved PATMI
AmBank (M) Berhad Group: Improved PATMI PATMI: Growth contributed by all business divisions except CIB 9MFY10 vs RM'mil 9MFY09 9MFY10 9MFY09 Business Performance 1(78.0%) Retail Banking Division 489.5 520.1 +6.3% Focus on profitable segments Business Banking recorded lower provisions Business Bankin
Slide 14: Better asset quality and decreasing quantum of historical issues
Better asset quality and decreasing quantum of historical issues Gross NPL/NPF by Segments Gross NPL / NPF by Segments 3.3 2.8 2.3 1.8 Stable NPL level despite 1.3 economic stresses from the recent global financial 0.8 downturn 0.3 3.05 1.73 1.68 1.65 1.78 1.28 0.64 0.50 0.34 0.30 0.00 0.00 0.36 0.2
Slide 15: Lower new gross NPL/NPF formation, recoveries, write-offs and conversions
AmBank (M) Berhad Group: Lower new gross NPL/NPF formation, recoveries, write-offs and conversions % New Gross NPL/NPF to Gross Loans /Financing % Gross NPL/NPF Conversion to Gross Loans/Financing 2.40% 2.00% 1.80% 1.60% 1.20% 1.20% 0.80% 0.60% 0.40% 0.00% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 16: Improving trends on NPL/NPF ratios & loan loss coverage
AmBank (M) Berhad Group: Improving trends on NPL/NPF ratios & loan loss coverage despite recent economic challenges Asset Quality Indicators 15.0 65.5% 74.8% 92.6% 100.0% 54.9% 34.1% 50.0% 10.0 0.0% 3.9 2.9 -50.0% • Proactive collection 5.0 activities -100.0% 1.8 1.5 • Tightened risk 1.1 5.0 4.8 -15
Slide 17: Focus on viable segments and diversification
AmBank (M) Berhad Group: Focus on viable segments and diversification Gross Loans/Financing movement (before netting Islamic financing sold to Cagamas) Loan Composition % Retail (66%) Business / Corporate (33%) 37.0% 19.8% 3.5% 1.4% 1.4% 3.1% 16.9% 13.6% 2.2% 1.2% 25 24.4 15.6% 20 12 132.9% 11.2 9.5
Slide 18: Positive income trends
AmBank (M) Berhad Group: Positive income trends Total Income Gross Loans/Financing & NIM/NFM 90 3.48% 3.7% 800 730.2 3.14% 3.02% 3.2% 2.81% 2.82% 609.7 70 600 553.5 66.0 2.7% 476.2 485.9 59.5 2.2% 402.6 50 51.9 400 48.8 44.6 1.7% 30 200 169.2 154.6 168.5 1.2% 111.1 0.7% 10 0 0.2% FY2006 FY2007 FY200
Slide 19: Improved earnings and returns ratios for 9MFY2010
Improved earnings and returns ratios for 9MFY2010 AmBank Group AmBank (M) Berhad Group ROE, % 9MFY10 / FY09 change 2.7% ROE, % 9MFY10 / FY09 change 0.2% FY 09 / 08 change 0.2% FY 09 / 08 change 0.2% 11.5% 11.7% 11.9% 13.6% 13.8% 16.5% -5.8% -10.8% • Maintaining profitability despite economic disrupt
Slide 20: Conclusion
Conclusion: AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK, 25th FEBRUARY 2010 19
Slide 21: Concluding remarks
Concluding remarks 1. Top 5 Banking Group in Malaysia with diversified business fundamentals, supported by ANZ, our strategic partner and 1 of 11 AA rated banks in the world 2. Good 9M result sets the foundation for us to deliver above our earlier FY 2010 market guidance 3. Sound capital levels and
Slide 22: Highlights of RM7.0 billion Senior Notes Issuance Programme
Highlights of RM7.0 billion Senior Notes Issuance Programme AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK, 25th FEBRUARY 2010 21
Slide 23: Key Features of RM7.0 billion Senior Notes Issuance Programme
Key Features of RM7.0 billion Senior Notes Issuance Programme Programme Size Up to RM7.0 billion nominal value Credit Rating AA3 by RAM Rating Services Berhad Tenure of the Programme Up to 30 years More than 1 year and up to 10 years as the Issuer may select, provided that the Tenure of each Senior
Slide 24: Principal Terms of 1st Issue of Senior Notes
Principal Terms of 1ST Issue of Senior Notes under The Senior Notes Issuance Programme Issuer AmBank (M) Berhad Credit Rating AA3 by RAM Rating Services Berhad Size of Issuance RM2.5 billion, with option to upsize to RM3.0 billion Coupon Rate To be determined Yield to Maturity To be determined on bo
Slide 25: Appendix
Appendix: AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK, 25th FEBRUARY 2010 24
Slide 26: Appendix: Capital, Funding, Liquidity & Government Guarantee
Appendix: Capital, Funding, Liquidity & Government Guarantee AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK, 25th FEBRUARY 2010 25
Slide 27: Sound capital base to meet ensuing challenges and support growth
Sound capital base to meet ensuing challenges and support growth Capital Adequacy: AMMB Holdings Berhad Innovative Tier 1 Capital Securities issued (AmBank (M) Berhad) : FY2007 FY2008 FY2009 9MFY2010* - Approved program = RM500 mil Core Equity 7.6% 7.7% 7.8% 7.8% - Q1FY10 issuance = RM300 mil Tier 1
Slide 28: Funding profiles continue to improve
AmBank (M) Berhad Group: Funding profiles continue to improve Customer Deposit by Sources Customer Deposit by Type CASA composition 13.8% 14.3% 15.0% 10.6% 12.2% Customer Deposits by Sources Total 32.5b 37.1b 41.5b 63.9b 67.3b 1.7 Others1 Government Customer Deposits by Type CASA grew 1.4 Others2 fu
Slide 29: Balance sheet being progressively repositioned for rising interest rates
AmBank (M) Berhad Group: Balance sheet being progressively repositioned for rising interest rates Interest / Profit Rate Risk : 0 - 12 months Interest / Profit Rate Risk : 1 - 5 years RM’mil Assets Liabilities Equity Off balance sheet gap / derivatives 32.0 38.9 45.8 8.0 8.5 12.7 - 55.0 - 67.6 -3.7
Slide 30: Appendix: Business highlights
Appendix: Business highlights AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK, 25th FEBRUARY 2010 29
Slide 31: Competitive positioning: continues to strengthen
Competitive positioning: continues to strengthen Sound size and market position in Recognized brand name / strong Wide market reach and multiple key business segments 1 consumer franchise distribution channels 2 3 Well diversified Universal Banking Platform Recognized as a strong consumer-focused #
Slide 32: Sound size and market position in key business segments
1 Sound size and market position in key business segments Business Investment Corporate & Retail Banking Institutional Assurance Islamic Banking Banking Banking Banking* #4 #5 #2 #5 #7 #6 #5 [General] [Life] Focus on profitability and Leverage on existing Stay relevant & protect Derisk, Diversify, b
Slide 33: Recognized brand name / strong consumer franchise
2 Recognized brand name / strong consumer franchise % 44 45 41 The AmBank brand : Top-of-Mind Brand 38 (BankC) 311 Awareness & Service Performance 17 16 (Bank D) 225 11 12 (Bank E) 204 11 10 8 7 6 (Bank B) 86 7 (Bank A) 4 5 5 5 105 3 1 3 3 (Am B) 91 • AmBank at 5th best TOM brand recall 2004* 2007*
Slide 34: Wide market reach and multiple distribution channels
3 Wide market reach and multiple distribution channels ASPIRATIONS Increased customer satisfaction via integrated & seamless channels model Expand branch network and SSM footprint Further build and improve sales & service capabilities Number of Branches #4 387 367 249 Business Units Key Strategic In
Slide 35: Experienced management team
4 Experienced management team Name Designation Profile Cheah Tek Group Managing Joined the Group in 1978 with over 30 years of experience and Kuang* Director has held various senior positions in AmBank Group • Majority of the senior Deputy Group managers have more than Joined the Group in 2007 and h
Slide 36: Strategic partnership with global partner, ANZ
5 Strategic partnership with global partner, ANZ ANZ is the only + Australian bank to have been in the Asian region of over 40 years Malaysia Strategic banking partnerships and presence across 14 ANZ has provided key resources and support countries Director Director Director Board Alex Thursby Dr. R
Slide 37: Repositioned for profitable growth
6 Repositioned for profitable growth AmBank (M) Berhad : strategic agenda around profitable growth and portfolio rebalancing* Corporate & Institutional Banking : Retail banking : • Rebalance via viable & profitable segments • Focus on growth in profitable • Grow deposits and recurring non-int income
Slide 38: Appendix: Corporate info (rating, structure)
Appendix: Corporate info (rating, structure) AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK, 25th FEBRUARY 2010 37
Slide 39: Ratings Upgrade
Ratings Upgrade AmBank (M) Berhad Rating Agency Long-Term Short-Term Outlook Date RAM AA3 P1 Stable Nov 09 Instrument : - RM500mil non-cumulative perpetual capital securities A2 Nov 09 - RM1.0bil negotiable instruments of deposits AA3 Nov 09 - RM2.0bil medium term notes programme A1 Nov 09 - RM500mi
Slide 40: Shareholding structure
Shareholding structure As at 31 December 2009 AmcorpGroup ANZ Funds Pty Employees Provident Bhd Ltd # Fund Board Public Ranked No. 18 (Malaysia – market 16.7% 23.8% 12.9% 46.6% capitalisation) & 188 AMMB (global – 1,000 banks Holdings Bhd by market capitalisation) : 100% 100% with market AMFB Holdin
Slide 41: Glossary / Disclaimer of Warranty and Limitation of Liability
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 One Offs One offs comprise those impacts on financial performance that arise from ch
Slide 42: www.ambankgroup.com
The material in this presentation is general background information about AmBank Group’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors
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