Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — 6-Month FP2011 Earnings Presentation
57 slides from Malayan Banking Bhd's earnings presentation, Feb 23, 2012
Slide 1: Investor Presentation: Financial Results, 6-Month Period ended 31 December 2011
Investor Presentation Financial Results 6-Month Financial Period ended 31 December 2011 23 February 2012 www.maybank.com 0
Slide 2: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects 1Financial Results: 6-Month Financial Period ended 31 December 2011
Slide 3: Key Highlights: Financial performance continued to improve
Key Highlights: Financial performance continued to improve Strong revenue growth and continued profit growth for 6-month Financial Period (FP) 2011 Revenue grew 21.6% YoY on the back 16.2% growth in fund based income and 32% growth in fee income Revenue grew 17.3% excluding insurance surplus t
Slide 4: Key Corporate Developments: Eventful 6-Month period
Key Corporate Developments: Eventful 6-Month period Change of Financial Year End from 30 June to 31 December. Branding Initiatives Prime Minister launched refreshed Maybank Group corporate identity New corporate identity for Kim Eng (Maybank Kim Eng) BII rebranding in progress New Appoin
Slide 5: 12-month priorities set at FY2010/2011 results: progress
The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011…. Annualised loan growth for Jan-Dec 2011 of 16.2% 1. Growing loans & deposits with pricing exceeded loan growth 12-month of 12% discipline NIM saw a marginal decline to 2.53% Continued ro
Slide 6: 12-month priorities set at FY2010/2011 results: progress
The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011…. Additional 19 branches & 136 ATMS to BII’s network 5. Continue asset & network expansion between Jan-Dec 2011 in BII, fix WOM & grow Syariah Acquisition of minority interest in MSI & pursu
Slide 7: 12-month priorities set at FY2010/2011 results: progress
The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011…. Establishment of international client coverage team, including wholesale banking product heads operating in Singapore, Indonesia, Hong Kong & Philippines 9. Complete infrastructure & framewo
Slide 8: Key Performance Indicators for 6-Month FP11
Key Performance Indicators for 6-Month FP11 Headline KPIs Target 6-Month FP11 achievements Return on Equity 16% 16.2%* Loans and Debt Securities Growth 12% 16.3%* Other targets Target 6-Month FP11 achievements Group Loans Growth 12% 16.2%* • Malaysia 12% 10.0%* • Singapore 8% 23.7%* • BII 24% 31.2%*
Slide 9: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects 8Financial Results: 6-Month Financial Period ended 31 December 2011
Slide 10: 2Q FP11 PATAMI rose 15.2% YoY to RM1.30 billion
2Q FP11 PATAMI rose 15.2% YoY to RM1.30 billion Quarter RM million 2Q FP11 1Q FP11 QoQ 2Q FY11 YoY 31 Dec 11 30 Sep 11 Change 31 Dec 10 Change Net interest income 2,152.7 1,873.6 14.9% 1,813.2 18.7% Net Fund based income (Islamic Banking) 427.0 438.5 -2.6% 329.6 29.5% Total net fund based income 2,5
Slide 11: FP11 PATAMI rose 20.0% YoY to RM2.58 billion
FP11 PATAMI rose 20.0% YoY to RM2.58 billion 6 Months RM million 6-Month FP11 6-Month FY11 YoY 31 Dec 11 31 Dec 10 Change Net interest income 4,026.3 3,587.8 12.2% Net Fund based income (Islamic Banking) 865.5 623.8 38.7% Total net fund based income 4,891.8 4,211.6 16.2% Net income from insurance bu
Slide 12: Strong Balance Sheet: Total Assets grew 19.1% annualised
Strong Balance Sheet: Total Assets grew 19.1% annualised, LDR improved to 87.5% Annualised YoY RM billion Dec 11 Jun 11 Dec 10 Growth Growth Cash and short-term funds 49.1 38.8 53.0% 24.6 99.5% Deposits with financial institutions 6.5 10.3 -74.6% 12.4 -47.8% Securities purchased under resale agreeme
Slide 13: Gross loans grew 16.2% annualised
Gross loans grew 16.2% annualised (23.7% YoY), driven by growth in BII of 31.2% (25.0% YoY) and Singapore 23.7% (29.3% YoY) Annualised YoY RM billion Dec 11 Jun 11 Dec 10 Growth Growth Community Financial Services 120.7 112.5 14.4% 106.1 13.7% Consumer 94.9 87.9 15.9% 81.2 16.8% Total Mortgage 42.1
Slide 14: Deposits grew 22.5% annualised
Deposits grew 22.5% annualised (26.4% YoY), driven mainly by growth in Singapore of 33.3% (21.5% YoY) and Malaysia 22.3% (28.4% YoY) Malaysia Singapore BII Group Annualised YoY Annualised YoY Annualised YoY Annualised YoY RM bil SGD bil Rupiah tril RM bil Growth Growth Growth Growth Growth Growth Gr
Slide 15: Asset Quality improved with Net Impaired Loan ratio at 1.86%
Asset Quality improved with Net Impaired Loan ratio declining to 1.86% Allowance for losses on loans Net Impaired Loan Ratio -13.9% +96.0% YoY 382.2 2.99% YoY 329.1 2.83% 2.74% +133.3% 264.7 QoQ 2.39% 230.3 2.25% 2.18% 1.86% 117.5 98.7 72.2 47.7 1Q FY11 2Q FY11 3Q FY11 4Q FY11 1Q FP11 2Q FP11 6-Mont
Slide 16: Group Non-Interest Income increased 32% YoY
Group Non-Interest Income increased 32% YoY to RM2.94 billion. Excluding Kim Eng & surplus transfers for the life fund, it totaled RM2.66 bil - a 19.6% YoY increase +19.4% 2,374 6 Months FY11 6 Months FP11 ended 31 Dec 2010 ended 31 Dec 2011 1,989 +27.4% 1,567 1,230 RM million +18.1% -31.1% -38.6% +
Slide 17: Overheads grew 25.7% YoY
Overheads grew 25.7% YoY due to KE consolidation & higher personnel costs – trending CIR slightly higher to 49.8% from 48.1%. Excluding KE, overheads grew 13.8% YoY. Personnel costs IT Expenses +25.7% YoY Marketing Expenses 3,941 Admin, general expenses & fees & 6 Months FP11 2Q FP11 brokerage Overh
Slide 18: Capital Adequacy remained strong with DRP and RWA optimisation
Capital Adequacy remained strong with DRP and RWA optimisation Adjusted for dividend payment and reinvestment made under Full electable Assuming 85% Full electable the Dividend Reinvestment Plan (DRP) portion paid reinvestment rate portion in cash reinvested 15.20% 14.16% 14.12% 14.71% 16.26% 16.37%
Slide 19: Consistently rewarding shareholders with high dividend payout ratio
Consistently rewarding shareholders with high dividend payout ratio Final dividend payout of 36 sen Net dividend of 27 sen = 3 sen cash portion + 24 sen electable portion Dividend Payout Ratio of 79.9% exceeds policy of 40% – 60% Gross Dividend (sen) and Payout Ratio (%) 76.5% 74.9% 79.9% 70.0
Slide 20: Maybank Group: Key Ratios
Maybank Group: Key Ratios FP11 FY11 FY10 FY09 Net Interest Margin 2.53% 2.56% 2.80% 2.72% Return on Equity 16.2% 15.2% 14.5% 12.8% Fee to Income Ratio 37.6% 36.6% 33.4% 33.0% Cost to Income# 49.8% 49.6% 47.3% 52.8% Loan-to-Deposit Ratio 87.5% 90.1% 86.8% 87.4% Post-FRS 139 Pre-FRS 139 Asset Quality
Slide 21: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects Financial Results: 6-Month Financial Period ended 31 December 2011 20
Slide 22: Revenue and PBT growth across most sectors
Revenue and PBT growth across most sectors 6 Months FY11 6 Months FP11 ended 31 Dec 2010 ended 31 Dec 2011 Revenue (RM million) +21.6% Global Wholesale Banking (GWB) +38.4% 7,827 +13.4% 6,436 +35.7% -2.7% +281.2% +14.0% +101.6% 3,386 2,985 2,438 2,139 806 812 594 790 144 550 295 595 Total Community
Slide 23: Revenue recorded double digit growth across most sectors
Revenue recorded double digit growth across most sectors Net Fund Based Income (including Islamic Banking Income) rose 16.6% 6 Months FY11 6 Months FP11 ended 31 Dec 2010 ended 31 Dec 2011 RM million +16.6% Global Wholesale Banking (GWB) +33.6% 5,034 +11.9% 4,319 2,621 +39.3% -7.4% +15.9% -18.0% +1,
Slide 24: Revenue and PBT by geography
Revenue and PBT by geography Revenue Profit Before Tax Gross loans 6-Month FP11 * Including Islamic loans sold to Cagamas and (July 11 – Dec 11) excludes unwinding of interest International: International: International: 36% 27% 37% 5% 6% 7% 5% 8% 15% 16% RM7.83b RM3.56b 22% RM282.8b* 16% Dec 2011 6
Slide 25: Community Financial Services: Mortgage grew 18.1%
Community Financial Services: Mortgage grew 18.1% with strong growth in approvals Strong growth despite intense competition Asset quality continued to improve +16.3% YoY 4.5% +18.1% annualised 42.1 3.1% 36.2 38.6 5.7 4.5 5.0 RM billion 2.2% 33.6 36.4 31.7 Dec 10 Jun 11 Dec 11 Dec 10 Jun 11 Dec 11 Im
Slide 26: Community Financial Services: Auto Finance
Community Financial Services: Auto Finance improved in volume and market share Auto Finance grew 14.2% YoY in Dec 11 20.0% Asset quality remained stable with increasing 2.0% +14.2% YoY market share 19.5% +13.3% annualised 1.5% 19.0% 19.4% 27.2 25.5 18.4% 23.8 18.5% 18.8% 1.0% RM billion 18.0% 0.5% 1
Slide 27: Community Financial Services: Cards
Community Financial Services: Cards continued to grow above market growth Cards Market Share Cards performance outperforming industry Dec 11 Dec 10 YoY Maybank Industry* Cardbase 17.9% 16.3% Cardbase 5.5% -4.0% Billings 24.3% 22.5% Billings 21.5% 12.5% Receivables 15.3% 14.0% Receivables 18.7% 9.0%
Slide 28: Business Banking and SME: Deposits grew 46.3% annualised
Business Banking and SME: Deposits grew at 46.3% annualised Loans improved by 9.1% annualised Strong deposits growth at 46.3% annualised 67.9 +46.3% +9.1% 60.4 annualised 57.8 annualised 50.7 25.8 47.3 24.2 25.3 25.0 24.7 24.6 41.2 RM billion RM billion Sep 10 Dec 10 Mar 11 Jun 11* Sep 11* Dec 11* S
Slide 29: Global Wholesale Banking: Loans growth
Global Wholesale Banking: Loans growth driven by Term Loans and STRC & Overdraft Total GWB loans recorded 1.2% annualised growth Strong position in terms of Trade Finance Market Share 27.6 26.9% +6.1% Term Loans 27.7 25.6% 25.1% 24.5% 26.8 23.3% 22.5% 22.6% Dec 11 Short Term 18.9 RM billion Sep 11 J
Slide 30: Global Markets: Revenue growth supported by non interest income
Global Markets: Revenue growth supported by non interest income Revenue performance Credit Rating for Private Debt Securities in Malaysia -2.7% 812.0 789.8 475.0 477.9 +0.6% A and below RM million AAA AAA 27.6% 47.0% -AA to AA 337.0 311.9 -7.4% A and below -AA to AA 6-Month FY11 6-Month FP11 25.4% N
Slide 31: Maybank Kim Eng total income RM510.8 million
Maybank Kim Eng reported a total income of RM510.8 million with Malaysia contributing 41% of the total income Total Income – Maybank Kim Eng 6-Month FP11 Total Income for Malaysia increased 35% YoY 209.8 19.4 6M FP11 190.4 4.2 145.3 RM million FY11 322.8 RM million FY10 214.9 Fee based income 64.3 6
Slide 32: Recent Notable Deals
Recent Notable Deals Maybank IB’s (Malaysia) Industry Position & Market Share (July – December 2011) Industry Rank Total Value Deals / Bumi Armada Berhad Eversendai Corporation Berhad Malayan Banking Berhad Maybank IB Market Share by Value (RM billion) Issues RM2,662,000,000 RM392,300,000 Up to RM3,
Slide 33: Highlights of Post-Merger Integration
Highlights of Post-Merger Integration The merger of the two entities is planned to take place over a period of 2 years We are here Estimated Timing 6 Weeks 6 Months 18 Months I. Establish Merger II. Conduct Integration Planning III. Execute Integration Plans Framework Kick-started on Phase I Complet
Slide 34: Group Islamic Banking business sustained strong financing and profit growth
Group Islamic Banking business sustained strong financing and profit growth Group Islamic Banking Income and PBT** Maybank Islamic financing (21% annualised) Total Gross Financing = RM52.4 billion as at Dec 2011 YoY RM million 6-Month FP11 6-Month FY11 Growth Fund based income 865.5 623.8 38.7% +10%
Slide 35: Etiqa: No. 1 Position in Life/Family and General Business
Etiqa: No. 1 Position in Life/Family (new business) and General Business Combined Gross Overall Loss Ratio in line with Industry Industry Premium +20.2% 60.0% (Etiqa) vs. 58.4% (Industry) 58.4% Group Premium +57.6% Fire 33.4% 30.7% Credit Premium -2.6% 2Q FP11 20.0% 19.8% 20.0% 28.3% Regular Premium
Slide 36: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects Financial Results: 6-Month Financial Period ended 31 December 2011 35
Slide 37: Singapore: PBT rose 10% boosted by higher fee income
Singapore: PBT rose 10% boosted by higher fee income Revenue and PBT rose 16.4% and 10.4% YoY respectively Diversified Loan Portfolio 23.8% annualised 6-Month FP11 6-Month FY11 YoY Consumer SGD million 24.6 31 Dec 11 31 Dec 10 Growth 22.0 +92.8% 1.2 19.1 0.8 3.3 Consumer -3.8% 0.8 3.3 SGD billion Ne
Slide 38: BII: Profit before tax grew 108.8% YoY
BII: Profit before tax grew 108.8% YoY Income Statement 2H FY11 2H FY10 YoY Rp Billion Jul - Dec 11 Jul - Dec 10 % Change Interest income 4,196 3,365 24.7% Interest expense (2,060) (1,556) 32.4% Net interest income 2,136 1,809 18.1% Non-interest income 1,113 1,055 5.5% Gross Operating income 3,249 2
Slide 39: BII: Revenue grew 12%
BII: Revenue grew 12% on the back of 31.2% consolidated annualised loans growth Group Revenue and PBT (Rp billion) – Full Year Net Interest Margin +12% 6,332 5,645 5.87% Rp billion +25% 5.67% Revenue 5.43% 985 PBT 5.28% 790 5.22% FY10 FY11 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 FY10 : before adoption SF
Slide 40: BII: Branches and touch points expansion on track
BII : Branches and touch points expansion on track Branches and ATM Asset Quality 1152 1088 1009 1017 952 844 893 3.1% 787 806 2.6% 2.5% 2.5% 2.1% 295 327 337 344 346 351 1.7% 255 260 274 1.4% 1.4% 1.2% 1.1% Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Dec 10 Mar 11 Jun 11 Sep 11 D
Slide 41: WOM: 10.9% growth in revenue
WOM : 10.9% growth in revenue, whilst PBT impacted by provisions arising from 2010 portfolio Revenue and PBT (Rp billion) Unit Financing (In 000 unit) +10.9% 1,655 1,492 622 574 Rp billion 486 501 -92.2% 136 194 73 15 FY10 FY11 New bikes Used bikes Total Revenue PBT FY10 FY11 Asset Quality Financing
Slide 42: MCB Bank: Financial Highlights
MCB Bank: Financial Highlights Revenue and PBT +22.7% 51.82 42.24 +18.9% 30.32 PKR billions 25.51 FY10 FY11 Revenue PBT Loans and Deposits Key Ratios FY11 FY10 +13.8% Return on assets 5.11% 4.91% Return on equity 25.35% 25.51% 481.6 423.0 PKR billion Cost-to-income ratio 33.65% 31.00% Loans to
Slide 43: An Binh Bank: Financial Highlights
An Binh Bank: Financial Highlights Revenue and PBT +36.0% 1,828.2 VND billion 1,343.9 -39.5% 661.4 400.5 FY10 FY11 Revenue PBT Loans and Deposits Key Ratios FY11 FY10 +0.2% -13.2% Return on assets 1.89% 2.05% 23,457.3 Return on equity 6.40% 10.85% 19,876.9 19,915.5 20,351.2 VND billion Cost-to
Slide 44: Investor Presentation Agenda
Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects Financial Results: 6-Month Financial Period ended 31 December 2011 43
Slide 45: Malaysia: Sustained growth for 2012
Malaysia: Sustained growth for 2012 Growth to be moderate at 3.5% - 4.0% in 2012 (2011: 5.1%) Inflation expected to moderate to 2.7% in 2012 (2011: 3.2%) Q4 GDP: CPI and components (% YoY) Quarterly GDP and annual growth rate +5.2% YoY 160 12 14 December CPI: 25 +3.0% YoY 20 150 9 12 15 10 Transport
Slide 46: Malaysia: Banking Sector
Malaysia: Banking Sector Total Loans grew 13.6% YoY for 2011 Total Deposits grew 14.3% YoY for 2011 Total Deposits Total Deposits YoY Growth Total Loans Total Loans YoY Growth 1250 25% 1,000 Household YoY Growth Business YoY Growth 18% 1200 950 16% 1150 20% RM billion RM billion 900 14% 1100 850 105
Slide 47: Singapore: Growth to Moderate on Weak External Demand
Singapore: Growth to Moderate on Weak External Demand Singapore’s economy is projected to expand by 1 – 3% in 2012 as Real GDP growth for 2012 expected to be 1% – 3% (2011: uncertainties in the external environment – especially Europe and 4.9% ) China - continue to persist. Inflation rate for 20
Slide 48: Indonesia: Continued growth
Indonesia: Continued growth ■ 2012 GDP growth expected to reach 6.3%, lower than the growth Real GDP Growth: Growing faster in 2011 at 6.46%. Growth in Q4 2011 recorded 6.6% expansion. ■ Despite higher inflation expectation this year, Bank Indonesia stays 8.0% (y-y) 4Q11 GDP: aggressive to stimulate
Slide 49: Focused on our strategic objectives by 2015
As we progress into FY2012, we remain focused on our strategic objectives By 2015 Our Vision To be a Regional Financial Services Leader Humanising Financial Services Across Asia Our Mission Providing people with convenient access to financing Having fair terms and pricing Advising customers ba
Slide 50: Four key priorities for FY2012
To support our objectives, we have set out four key priorities for FY2012 1 • Optimizing RWA & enhancing our capital management framework Create and • Continued improvement of our risk management processes Embed Right including TAT, reporting & resourcing frameworks Risk Culture 2 • Continued focus
Slide 51: Strengthen leadership in key market segments domestically
We seek to continue to strengthen our leadership in key market segments domestically, whilst pursuing regional excellence 1 • Continue to achieve growth in all key segments , and sustain leadership in domestic franchise CFS • Continue with branch transformation initiatives – modernization of branche
Slide 52: Increase value from domestic and intra-group opportunities
We also seek to increase value from domestic & intra-group business opportunities in our core markets and beyond 3 • Maintaining a complete business portfolio in Life, Family, General and General Takaful for retail and corporate, including: Insurance & • Private retirement scheme products Takaful •
Slide 53: IT Transformation Programme: Five-year regional roadmap
IT Transformation Programme: Integrated five-year regional implementation roadmap Implementation BFE 2013 - 2015 Year 1 Projects and Roadmap Replacement Programme Directors Full IT December 2010 & CMS April 2011 Targeted to roll out Transformation Maybank-wide board Enterprise endorsed Transformatio
Slide 54: Key Performance Indicators for financial year ending 31 Dec 2012
Key Performance Indicators (KPIs) for financial year ending 31 Dec 2012 Headline KPIs Return on Equity 15.6% Loans and Debt Securities Growth 15.2% Other KPIs Group Loans Growth 16.2% Malaysia 13.6% Singapore 11.4% BII 20.9% Group Deposits Growth 11.6% 53
Slide 55: Prospects
Prospects Global GDP growth is forecast at 3% in 2012 (2011 est.3.3%) The Eurozone, US and China will all record slower economic growth in 2012. Group expects to see reasonable business growth in 2012 Malaysia: Economic Transformation Program (ETP) projects and relatively low interest rates (O
Slide 56: Maybank: Thank you for your support
Maybank: Thank you for your support 51 Total Assets RM451 BILLION Profit After Tax Years Of Growth RM2.6 BILLION (6-MonthPeriod) Human Capital 45,000 MAYBANKERS WORLDWIDE Global Network 2,200 OFFICES IN 17 COUNTRIES Customers 21 MILLION CUSTOMERS Public Ownership 60,000 SHAREHOLDERS > 10.5 MILLION U
Slide 57: Malayan Banking Berhad contact details
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’ Khairussaleh Ramli Group Chief Financial Officer Contact: (6)03-2074 4288 Email: khairul@maybank.com.my Narita Naziree Head, Grou
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