Ammb Holdings Bhd. · MYX:AMBANK

Ammb Holdings Bhd — FY2024 Earnings Presentation

40 slides from Ammb Holdings Bhd's earnings presentation, May 27, 2024

  1. Slide 1: FY2024 Results Investor Presentation

    FY2024 RESULTS (31 MARCH 2024) INVESTOR PRESENTATION 27 MAY 2024

  2. Slide 2: GCEO Presentation

    GCEO PRESENTATION Jamie Ling 3 FY24 Financial snapshot 4 Retail PHRA 5 Loans by stages 6 Outlook for CY2024

  3. Slide 3: FY24 Financial Snapshot

    Financial Snapshot (Reported) FY24 Financial snapshot FY24 Reported Financials Variance Improved PATMI, ROE and CET 1; back to 40% dividend payout ratio • Resilient income despite challenging environment 4,647 Income  (1%) • NII fell 7% due to NIM compression, NIM at 1.79% (FY23: 2.07%) FY231: 4,71

  4. Slide 4: PHRA exposure significantly lower for individuals and RSME

    Payment Holiday and Repayment Assistance (PHRA) loans under 12 months of observation post PHRA programmes PHRA exposure significantly lower for individuals and RSME Total RB loans and PHRA by staging (RM’ bil) A) Mortgage loans and PHRA by staging (RM’ bil) 74.3 74.0 Of which, PHRA balance 1 1.5 , 2

  5. Slide 5: Portfolio quality improving

    Loans (Reported) Portfolio quality improving Loans by ECL Stages (RM’ bil) Breakdown by Business Segments1 (%) Stage 1 Stage 1 Stage 2 Stage 3 93.7% 93.0% 91.5% RB 89.8% 130.8 131.3 134.1 130.2 129.0 BB 89.4% 124.4 126.3 1.7% 120.1 1.5% 1.7% 1.7% 1.6% 7.6% WB 86.9% 1.5% 1.6% 9.7% 9.9% 9.8% 1.6% 10.2

  6. Slide 6: Outlook for CY2024

    Market Outlook Outlook for CY2024 GDP Growth 4.0% to 5.0% Inflation 2.5% to 3.0% Malaysia Unemployment Rate 3.2% USD/MYR Outlook 4.50 to 4.60 Loans Growth 4.0% to 5.0% Asset Quality Stable Banking OPR 3.00% Sector Liquid & Capital Positions Resilient CY = Calendar Year 6 FY24 Results – Investor Pres

  7. Slide 7: GCFO Presentation

    GCFO PRESENTATION Shafiq Bin Abdul Jabbar 8-24 Financial Overview

  8. Slide 8: Q4FY24 Financial overview

    Financial Overview (Continuing) Q4FY24 Financial overview 1 Q4FY24 Results (QoQ) • Income of RM1,170mil, up 2% QoQ - NII was marginally lower at RM823mil, largely kept pace with previous quarter despite NIM of 1.79% (Q3FY24: 1.79%) - NoII grew 7% to RM347mil, mainly driven by higher fee income from

  9. Slide 9: Breakdown of FY24 One-off charges and Tax Credit

    Financial Overview Breakdown of FY24 One-off charges and Tax Credit RM’mil RM’mil Total tax credit granted1 772 Tax credit recognised in FY22 (234) Remaining tax credit 538 One-off charges in FY24: Credit impairment overlays (328) Provision for restructuring expenses (80) Intangible assets impairmen

  10. Slide 10: FY24 Performance Summary – P&L

    Financial Overview (Reported) FY24 Performance Summary – P&L FY23 P&L (RM’ mil) Q3FY24 Q4FY24 QoQ Change FY24 YoY Change (restated)1 Total Income 1,151 1,170  2% 4,711 4,647  (1%) - NII 827 823 ≈ 3,541 3,304  (7%) - NOII 325 347  7% 1,171 1,342  15% MFRS 17 restatement impact - - (26) - Expense

  11. Slide 11: FY24 Performance Summary – Balance Sheet

    Financial Overview (Reported) FY24 Performance Summary – Balance Sheet Balance Sheet (RM’ bil) Q3FY24 Q4FY24 QoQ Change FY23 FY24 YoY Change Gross Loans 131.3 134.1  2% 130.2 134.1  3% GIL 1.60% 1.67%  0.07% 1.46% 1.67%  0.21% LLC (include Reg Reserves) 112.3% 109.5%  (2.8%) 127.7% 109.5%  (18

  12. Slide 12: P&L walk - PATMI of RM1.87b

    Group P&L P&L walk - PATMI of RM1.87b YoY Growth  (6%)  19% ≈  3%  (2%)  (7%)  (1%)  (1%)  7%  >100%  9% Positive growth in FY24 Contraction in FY24 One-off Continuing Total Cont’d Discont’d Reported NII NOII Expenses PBP Impairment PBT Tax & Zakat charges & Operations Income PATMI PATMI P

  13. Slide 13: Resilient Income Growth, led by NOII

    Income Resilient Income Growth, led by NOII Business Segments FY23 Q3FY24 Q4FY24 QoQ Change FY24 YoY Change (RM’ mil) (restated)1 Wholesale Banking 311 262  (16%) 1,124 1,153  3% Investment Banking 90 109  21% 322 371  15% Retail Banking 479 464  (3%) 1,878 1,902  1% Business Banking 296 325 

  14. Slide 14: NIM stable QoQ

    NIM NIM stable QoQ YoY NIM FY24: Reported: 1.79% (  (28bps) ) Net Interest Margin (NIM) Movement (YoY) FY23: Reported: 2.07% Divisions Funding + Deposits bps 207 Reported:  (28bps) (12.0) 1.1 (9.3) (0.5) 6.9 179 (3.4) (11.1) FY23 Retail Wholesale Banking Investment Banking Business Asset mix Inter

  15. Slide 15: Broad based fee income growth offset NIM compression

    NoII Broad based fee income growth offset NIM compression Composition 3% 4% 21% 22% 8% 13% 12% 6% 6% 3% 2% 100% YoY Growth  (13%)  2%  69%  12%  31%  2%  6%  45%  18%  20%  (30%)  19%  (41%)  15% Positive growth in FY24 Contraction in FY24 FY23 NoII FY24 NoII Continuing NoII Card & Deb

  16. Slide 16: Positive JAWS, Reported CTI 44.2%

    Expenses Positive JAWS, Reported CTI 44.2% Business Segments Q3FY24 Q4FY24 QoQ Change FY23 FY24 YoY Change (RM’ mil) Wholesale Banking 80 82  3% 295 316  7% Investment Banking 54 55  1% 207 216  4% Retail Banking 285 265  (7%) 1,039 1,096  6% Business Banking 86 88  3% 321 346  8% Group Fund

  17. Slide 17: Reported PBP up 2% QoQ

    PBP & PAT Reported PBP up 2% QoQ Business Segments FY23 Q3FY24 Q4FY24 QoQ Change FY24 YoY Change (RM’ mil) (restated)1 Wholesale Banking 231 179  (22%) 829 837  1% Investment Banking 36 54  51% 114 155  36% Retail Banking 193 199  3% 839 806  (4%) Business Banking 210 237  13% 738 830  13% G

  18. Slide 18: Loans growth primarily from BB, offset by large WB loan repayment

    Loans Loans growth primarily from BB, offset by large WB loan repayment Gross Loans Movement (RM’ bil) Breakdown by rate sensitivity: Breakdown by concept: Breakdown by customers’ type: Fixed rate – 21% Islamic – 35% Retail – 55% Variable rate –79% Conventional – 65% Non-retail – 45% YoY Growth  (6

  19. Slide 19: Higher Impairment charges in RB, BB and IB

    Asset Quality Higher Impairment charges in RB, BB and IB Overlay: Q1FY24: (99.6) Net Impairment (YoY Movement) (RM’mil) Q2FY24: (47.6) Q3FY24: (8.4) Q4FY24: (66.8) Positive P&L impact in FY24 Negative P&L impact in FY24 Gross Impaired Loans (RM’mil) and Loan Loss Coverage (LLC) Ratios Credit Cost an

  20. Slide 20: Vigilant monitoring of sector exposures

    Asset Quality Vigilant monitoring of sector exposures Impaired Loans by Sector Loans by Internal Risk Grade Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired Mar’23 Dec’23 Mar’24 YoY QoQ Sector Composition Loans outstanding Bonds & Loans outstanding RM’ mil RM’ mil RM’ mil

  21. Slide 21: Strong deposit growth supported by increase in FD, strong CASA growth

    Deposits Strong deposit growth supported by increase in FD, strong CASA growth Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%) Customer Deposits Trend YoY Growth Industry CASA Trend YoY Growth Industry FY24 142.4  9%  5%1 FY24 52.8  8%  7%1 FY23 130.3  6%  5%2 FY23 48.8  13%  (2%)

  22. Slide 22: Capital position strengthened further

    Capital Capital position strengthened further RWA/Total Assets Capital Adequacy Ratios2 RM’ bil CET 1 / Tier 1 Total CAR Total Assets RWA/Total Assets Peers1 66.7% 67.4% 16.30% 16.49% 15.80% 15.18% 15.47% 15.32% 15.65% 62.7% 63.3% 14.48% 14.14% 58.1% 56.8% 55.3% 54.9% 12.44% 12.10% 13.04% 12.20% 12.

  23. Slide 23: FY24 Summary

    Summary FY24 Summary RESILIENT PERFORMANCE CREDIT PROFILE • Resilient income despite NIM • Loan Loss Coverage* at 109.5% compression • Adequate buffers (overlays • PATMI of RM1.87 bil; ROE of 10% RM502 mil) • Capital build completed • Portfolio quality improving • Restored 40% Dividend Payout Ratio

  24. Slide 24: Appendix: P&L – Continuing Operations

    Appendix Appendix: P&L – Continuing Operations QoQ YoY FY23 FY24 FY23 – FY24 (Full FY) Movement Movement Q4FY24 vs RM’mil Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY23 FY24 FY24 vs FY23 Q3FY24 Income 1,035 1,165 1,223 1,160 1,151 1,124 1,151 1,170  2% 4,582 4,595 ≈ -NII 831 913 930 824 809 846 827 823 ≈ 3,498 3,304

  25. Slide 25: Thank You

    THANK YOU

  26. Slide 26: Reported yearly performance

    FY24 Results (Reported) Reported yearly performance (LATMI) / PATMI (RM’ mil) & ROE (%)1 Total Income (RM’ mil) and Non-interest Income (%)1 Total Income: PATMI: ROE: CAGR FY21-FY24:  0.7% YoY Growth  9.3% YoY Growth  0.2% YoY Growth  (1.4%) PATMI/(LATMI) ROE Total Income Non-Interest Income % 9

  27. Slide 27: (Impairments) / Recoveries

    Asset Quality (Impairments) / Recoveries Net (Impairments) / Recoveries and GIL Ratio Total impairments by category (RM’ mil) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 QoQ Change FY23 FY24 YoY Change ECL Stage 1 & 2 / CP – Non defaulted1 6 19 (55) 17 (31) 98 (39) 188  >100% (13) 216 

  28. Slide 28: Divisional Performance

    Divisional Performance

  29. Slide 29: Wholesale Banking

    Wholesale Banking Wholesale Banking Total Income (YoY Movement) and Assets by Line of Business PAT Trend (RM’ mil) QoQ Growth:  (31%) YoY Growth:  14% Total Income RM1,153 mil  3% FY23: 671 FY24: 764  9% 237 209 200 188 168 152 142 138 Transaction Banking 20% Corporate  7% Transaction Banking B

  30. Slide 30: Wholesale Banking

    Wholesale Banking Wholesale Banking Income Statement YoY Growth  (9%)  43%  3%  7%  1%  >100%  14%  17%  14% Net Interest Non-Interest Impairment RM' mil Total Income Expenses PBP PBT Tax & Zakat PAT Income Income write-back FY24 788 365 1,153 (316) 837 150 987 (223) 764 FY23 868 256 1,124

  31. Slide 31: Investment Banking

    Investment Banking Investment Banking League Table PAT Trend (RM’ mil) Market Share1 As At QoQ Growth:  (41%) Rank2 31 March 2024 YoY Growth :  4% DCM 5.01% 4 (Overall MYR Bonds) FY23: 91 FY24: 94 Islamic Sukuk 5.11% 4 28 29 28 Unit Trust 7.4% 5 23 22 21 Stockbroking3 7.1% 6 18 16 M&A3 1.6% 7

  32. Slide 32: Investment Banking

    Investment Banking Investment Banking Income Statement YoY Growth  4%  17%  15%  4%  36%  >100%  7%  19%  4% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income FY24 52 319 371 (216) 155 (34) 121 (27) 94 FY23 50 272 322 (207) 114 (1) 114

  33. Slide 33: Retail Banking

    Retail Banking Retail Banking Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil) QoQ Growth:  (>100%) Total Income  1% YoY Growth :  (69%) RM 1,902 mil  85%  (39%) FY23: 410 FY24: 126  (9%) Others Mortgage 8% 11% Retail SME 125 122 8%  (17%) 107 91 Retail SME Auto F

  34. Slide 34: Retail Banking: Cards in circulation

    Retail Banking Retail Banking Wealth Sales (RM’ mil) Merchant Volume QoQ Growth:  39% Merchant volume (RM'mil) QoQ Growth:  10% YoY Growth:  13% YoY Growth:  41% Merchants in force ('000) QoQ Growth:  3% YoY Growth:  5% FY23: 5,791 FY24: 8,162 FY23: 15,367 FY24: 17,418 2,598 35 34 34 34 34 34

  35. Slide 35: Retail Banking

    Retail Banking Retail Banking Income Statement YoY Growth ≈  11%  1%  6% (4%)  >100% (70%)  (70%)  (69%) Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income FY24 1,632 270 1,902 (1,096) 806 (642) 164 (38) 126 FY23 1,635 243 1,878 (1,039) 8

  36. Slide 36: Business Banking

    Business Banking Business Banking Gross Loans (RM’ mil) PAT Trend (RM’ mil) QoQ Growth:  6% QoQ Growth:  19% Non-trade Trade YoY Growth:  10% YoY Growth:  7% 38,111 34,511 34,972 36,094 32,142 31,998 33,220 31,483 10,646 10,162 10,127 10,177 9,452 9,615 9,298 9,265 FY23: 496 FY24: 531 24,349 24,

  37. Slide 37: Business Banking

    Business Banking Business Banking Income Statement YoY Growth  11%  12%  11%  8%  13%  57%  7%  6%  7% Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PAT Income Income FY24 896 280 1,176 (346) 830 (133) 698 (167) 531 FY23 808 251 1,059 (321) 738 (84)

  38. Slide 38: AmBank (M) entity level

    AmBank (M) entity level AmBank (M) Income Statement YoY  (5%)  17% ≈  (7%)  6%  37%  2%  1%  15% Growth One-off charges Net Interest Non-Interest RM' mil Total Income Expenses PBP Impairment PBT Tax & PAT Income Income Tax credit1 FY24 2,221 790 3,011 (1,325) 1,686 (237) 1,449 (331) 142 1,26

  39. Slide 39: AmBank Islamic entity level

    AmBank Islamic entity level AmBank Islamic Income Statement YoY Growth  (6%)  38%  (2%)  41%  (18%)  (61%)  (7%)  (8%)  (19%) Net Financing Non-Financing One-off RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ Income Income charges1 FY24 1,046 138 1,185 (473) 711 (71) 641

  40. Slide 40: Glossary & Disclaimer

    Glossary & Disclaimer 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 Growth Definition QoQ growth refers to Q4FY24 vs Q3FY24 YoY /

AMMB Holdings Berhad — FY2024 Earnings Presentation on 6ix