Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — H1 2015 Earnings Presentation
59 slides from Malayan Banking Bhd's earnings presentation, Aug 27, 2015
Slide 1: Investor Presentation: Financial Results 2Q FY2015 and 1H FY2015
Humanising Financial Services Investor Presentation Financial Results 2Q FY2015 and 1H FY2015 ended 30 June 2015 27 August 2015 www.maybank.com 0
Slide 2: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 3: Group Overview
Group Overview 1H FY2015 performance supported by stronger revenue growth and asset position 1 Stronger revenue growth in first half, net operating income up 10.8% YoY Loan growth in 1H FY2015 at YTD annualised growth of 11.1%, and 6.9% 2 with normalisation of exchange rate 3 Group NIM at 2.28%, a s
Slide 4: Results Overview (1/2)
Results Overview (1/2) Group net profit growth of 3.4% YoY to RM3.28 billion and higher net operating income of 10.8% Net operating income growth of 10.8% from continued growth in all business pillars: Net operating Community Financial Services (CFS) +11.6% income growth of Global Banking (Mal
Slide 5: Results Overview (2/2)
Results Overview (2/2) Loans growth continues in the CFS portfolio and expansion in the region Group loans growth of 11.1% (ann.) driven by stronger momentum in 2Q: Group loans Led by International loans growth of 20.1% growth of 11.1% Malaysia annualised loans growth of 4.2%, supported by gro
Slide 6: FY2015 Headline Key Performance Indicators
FY2015 Headline Key Performance Indicators Stable performance in 1H FY2015, but operating conditions are changing for 2H FY2015 Annualised YoY FY2015 Maybank Achievement Key Performance Indicators Guidance Industry Industry Maybank 1Q FY2015 2Q FY2015 1H FY2015 Average1 Average Headline KPI Return o
Slide 7: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 8: P&L Summary: 1H FY2015
P&L Summary: 1H FY2015 Net profit growth of 3.4% YoY to RM3.3 billion More 1H 1H 2Q 1Q 2Q details RM million YoY QoQ YoY on FY2015 FY2014 FY2015 FY2015 FY2014 s.11 Net fund based income * 6,958.7 6,258.9 11.2% 3,543.3 3,415.4 3.7% 3,134.6 13.0% s.11 Net fee based income * 2,917.2 2,655.6 9.9% 1,345.
Slide 9: Unaudited Income Statement for Insurance and Takaful Business
Unaudited Income Statement for Insurance and Takaful Business Increased operating income on higher net earned premiums of 4.4%; PPOP was also higher at 6.1% 1H 1H 2Q 1Q 2Q RM million YoY QoQ YoY FY2015 FY2014 FY2015 FY2015 FY2014 Interest income 470.9 487.4 (3.4)% 234.4 236.5 (0.9)% 254.3 (7.8)% Int
Slide 10: International & Malaysia Portfolio Mix 1H FY2015
International & Malaysia Portfolio Mix 1H FY2015 International contribution to Group gross loans at 42.2% and revenue contribution to Group at 35.7% Net Operating Income Profit Before Tax Gross loans* 1H FY2015 (Jan 15 – Jun 15) Overseas: Overseas: Overseas: 7.4% 13.9% 35.7% 29.6% 42.2% 10.2% 12.3%
Slide 11: Business Segment Performance 1H FY2015 (1/2)
Business Segment Performance 1H FY2015 (1/2) All business sectors (CFS, GB, International Banking and Insurance & Takaful) recorded improved revenue momentum Net Operating Income 1H FY2014 +10.8% 1H FY2015 Global Banking (GB) +7.2% 9,876 8,915 +11.6% -0.6% +15.5% +7.6% +55.4% +9.5% +2.3% 4,069 RM mi
Slide 12: Business Segment Performance 1H FY2015 (2/2)
Business Segment Performance 1H FY2015 (2/2) Higher net fund based growth of 11.2% driven by International Banking and CFS Net Fund Based Income 1H FY2014 +11.2% 1H FY2015 Global Banking (GB) +5.4% 6,959 6,259 +7.9% +7.0% -1.8% +25.3% <-100.0% +20.7% -3.7% RM million 3,022 2,800 2,446 2,026 777 831
Slide 13: Net Fee Based Income: 1H FY2015 (YoY)
Net Fee Based Income: 1H FY2015 (YoY) Net fee based income growth of 9.9% driven by higher commission, service charges and fees and foreign exchange gain 1H 1H RM million YoY FY2015 FY2014 Commission, service charges and fees 1,883 1,687 11.6% Investment & Trading Income 471 491 (4.0)% Unrealised ga
Slide 14: Group Loans Growth: 30 Jun 2015
Group Loans Growth: 30 Jun 2015 Group loans growth of 11.1% (ann.) led by International loans growth of 20.1% (ann.) % of 30 Jun 31 Dec YTD 30 Jun YoY Portfolio 2015 2014 Annualised 2014 Group Gross Loans¹ 433.3 410.5 11.1% 375.3 15.4% Malaysia (RM billion) ² 58% 248.8 243.6 4.2% 226.4 9.9% Communit
Slide 15: Malaysia Loans Growth: 30 Jun 2015
Malaysia Loans Growth: 30 Jun 2015 Consumer loan growth of 8.3% (ann.), driven by growth in mortgage and auto finance % of 30 Jun 31 Dec YTD 30 Jun RM billion YoY Portfolio 2015 2014 Annualised 2014 Community Financial Services 70% 175.3 168.8 7.7% 159.4 10.0% Consumer 57% 141.4 135.7 8.3% 128.4 10.
Slide 16: Group Deposit Growth: 30 Jun 2015
Group Deposit Growth: 30 Jun 2015 Group deposit growth of 6.3% (ann.) driven by international markets growth of 8.3% (ann.) YTD % of Portfolio 30 Jun 2015 31 Dec 2014 30 Jun 2014 YoY Annualised Group Gross Deposits 453.5 439.6 6.3% 406.5 11.5% Malaysia (RM billion) 63% 285.4 278.3 5.1% 265.1 7.6% Sa
Slide 17: LDR and CASA Ratio: 30 Jun 2015
LDR and CASA Ratio: 30 Jun 2015 Group LDR at 94.2% arising from higher LDR in opportunistic markets Group LDR CASA Malaysia 90.6% 90.6% 91.8% 92.2% 94.2% 91.5% 90.8% 86.8% 89.5% 83.9% 39.9% 38.1% 39.9% 41.2% 39.6% 35.7% 34.5% 35.3% 35.4% 34.9% Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Jun 14 Sep 14 Dec 14
Slide 18: Overheads: 1H FY2015
Overheads: 1H FY2015 Operating expenses higher but cost to income ratio still within 50% threshold Group overheads composition 1H 1H (RM’ mil) YoY 2Q FY2015 1Q FY2015 QoQ FY2015 FY2014 Personnel Costs 2,792.7 2,380.1 17.3% 1,373.3 1,419.3 (3.2)% IT Expenses 216.7 260.3 (16.7)% 117.4 99.4 18.1% Estab
Slide 19: Asset Quality: Jun 2015
Asset Quality: 30 Jun 2015 Group GIL at 1.56% and provisioning costs higher YoY due to higher loan loss recoveries in prior year Allowance for losses on loans Group Impaired Loans Ratio Loan loss coverage Gross Impaired Loans Ratio (%) Allowances for losses on loans Net Impaired Loans Ratio (%) 107.
Slide 20: Asset Quality by Market
Asset Quality by Market Improved credit quality in Malaysia, with uptick in Singapore and Indonesia Malaysia Singapore BII Group Gross Impaired Loans Ratio (%) Net Impaired Loans Ratio (%) 4.50* 2.04 0.41 3.53 1.71 1.85 1.75 1.62 0.30 3.32 3.24 3.49 0.26 0.24 0.23 0.33 0.20 0.24 3.55* 1.37 0.18 0.18
Slide 21: Capital Adequacy: 30 Jun 2015
Capital Adequacy: 30 Jun 2015 Total Capital Ratio and CET1 remain healthy at 15.54% and 11.48% (assuming 80% dividend reinvestment rate) After proposed After proposed Before After proposed dividend, dividend, based on proposed dividend and assuming 80% BNM’s Implementation dividend reinvestment ** r
Slide 22: Dividend
Dividend Board recommended single-tier interim dividend of 24 sen consisting of 4 sen cash portion and 20 sen electable portion Gross Dividend (sen) and Payout Ratio (%) Dividend 76.5% 79.9% 78.5% Payout Ratio 74.9% 74.7% 71.9% 69.7% 61.0% 65.0 60.0 57.0 55.0 53.5 33 # 32 36.0 85.7%* 33 Final 31 44
Slide 23: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 24: Market Outlook
Market Outlook Key trends and developments affecting the banking industry in 2H FY2015 Key Indicators Outlook • Household loan growth to continue moderating amid • GDP(f) 4.9% (2014: 6.0%) weak consumer sentiment • System loan(f) 7-8% • Business sentiment to remain cautious, loan demand to • System
Slide 25: Guidance for FY2015
Guidance for FY2015 ROE 12% - 13% Group Loans Growth 8% - 9% Malaysia Loans Growth 6% - 7% Singapore Loans Growth 5% - 6% Indonesia Loans Growth 10% - 13% Group Deposits Growth 10% - 11% 24
Slide 26: Strategic Priorities for 2H FY2015
Strategic Priorities for 2H FY2015 1 More selective asset growth in view of market conditions 2 Continued focus on deposit taking but expect higher funding costs Remain focused on monitoring and proactive management of asset 3 quality 4 Maintain strong capital position 5 Continued focus on productiv
Slide 27: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 28: Community Financial Services (1/4)
Community Financial Services (1/4) Market share in deposits and key consumer loans portfolio strengthened Jun-15 Market Market Share Dec-12 Dec-13 Dec-14 Mar-15 Jun-15 vs Position Mar-15 Loans Total Consumer / Household 17.0% 17.2% 17.4% 17.4% 17.4% 0.0 2 Auto (Purchase of Transport Vehicles) 20.2%
Slide 29: Community Financial Services (2/4)
Community Financial Services (2/4) Sustained consumer loans growth with increase in HNW and Affluent segments HNW & Affluent Customer TFA grew 10.9% YoY with Consumer Loans grew 8.3% (ann.) to RM141.4 billion higher product cross sell ratio 145.0 160.0 157.4 7.50 141.4 153.5 138.9 150.4 140.0 145.3
Slide 30: Community Financial Services (3/4)
Community Financial Services (3/4) Continued growth in customer deposits by 6.8%, driven by Consumer and SME portfolios CFS Deposits growth of 6.8%* (ann.) led by consumer and Consumer Deposits growth of 7.8% (ann.) driven by CASA 124.0 SME portfolios growth of 9.6% (ann.) 122.0 121.5 192.4 190.0 12
Slide 31: Community Financial Services (4/4)
Community Financial Services (4/4) Continued improvement in asset quality with GIL at 1.8% Consumer GIL held steady, SME & Business Banking improves CFS GIL continued its improving trend at 1.8% 4,800 Industry GIL GIL % Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 3,658 Q2 2015 3,600 3,457 3,334 3,109 CF
Slide 32: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 33: Global Banking (1/4)
Global Banking (1/4) Corporate banking asset quality improved to 1.27% Total GB loans decreased by 3.7% (ann.) to RM73.4 billion Trade Finance market share ¹ but grew 9.6% YoY 25.8% 25.4% RM billion 24.8% 24.9% 33.5 -8.5% 24.6% (ann.) Term Loan 35.0 35.5 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 37.7 +1.5%
Slide 34: Global Banking (2/4)
Global Banking (2/4) Revenue growth of 10.4% YoY for Global Markets’ business regionally PBT and Revenue grew by 7.3% and 10.4% YoY respectively Group Securities Portfolio grew 7.8% YoY Net interest income Non-interest income +7.8% YoY +7.3% +10.4% 101.0 107.8 104.6 103.8 108.8 1,384.1 1,253.2 11.8
Slide 35: Global Banking (3/4)
Global Banking (3/4) Maybank Kim Eng saw total income growth of 7.6% YoY to RM636.4 mil for 1H FY2015 1H FY2015 Total Income Total Income for Maybank Kim Eng increased by 7.6% YoY Others Hong Kong (RM29.4 mil, +7.6% (RM45.5 mil, 5%) 636.4 7%) Philippines (RM29.0 mil, Malaysia, 5%) (RM191.1 mil, 591.
Slide 36: Global Banking (4/4): Notable Deals for 1H FY2015
Global Banking (4/4) Notable Deals for 1H FY2015 Malaysia Singapore Singapore Malaysia Malaysia Malaysia Turkey Hong Kong Sapurakencana TMC Sdn Pacific Andes Resources Hap Seng Consolidated Weststar Aviation KT Kira Sertifikalari Varlik Samson Paper Company Sapurakencana Berhad Services Sdn Bhd PETR
Slide 37: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 38: Maybank Singapore (1/3)
Maybank Singapore (1/3) Net income of SGD 398 million, on higher net fund based income (SGD mil) 1H FY2015 1H FY2014 YoY Net Fund Based income 277.02 244.62 13.2% Net Fee Based income 121.10 150.77 (19.7)% Net income 398.12 395.39 0.7% Overhead expenses 176.67 164.94 7.1% Operating profit 221.45 230
Slide 39: Maybank Singapore (2/3)
Maybank Singapore (2/3) Loans up by 8.2% YTD (ann.) on the back of higher consumer loans Diversified Loan Portfolio +9,9% YoY As at 30 June 2015, total loans rose by 8.2% YTD +8.2% ann. Other annualised. 33.2 35.0 36.5 (Consumer) Consumer loans expanded by 29.1% YTD (ann.) to 2.3 2.6 3.1 Car Loa
Slide 40: Maybank Singapore (3/3)
Maybank Singapore (3/3) Deposits YoY growth of 11.6% outpaced industry growth of 6.4% Consumer deposits account for 58% of our deposits CASA growth of 6.3% YoY +11.6% YoY - 2.9% ann. 35.0 39.6 39.0 Time Deposits Consumer - Time Deposits Demand Deposits 16.0 17.6 17.5 Consumer 26.0 29.7 29.4 Savings
Slide 41: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 42: Bank Internasional Indonesia (1/4)
Bank Internasional Indonesia (1/4) Net profit increased by 14% YoY on higher net fund based income and net fee based income (IDR billion) 1H FY2015 1H FY2014 YoY 2Q FY2015 1Q FY 2015 QoQ Net Fund Based income 3,088 2,785 11% 1,502 1,586 (5)% Net Fee Based income 1,081 997 8% 461 621 (26)% Net income
Slide 43: Bank Internasional Indonesia (2/4)
Bank Internasional Indonesia (2/4) Loans growth of 4.1% (ann.) driven by strong growth in retail and business banking Loans composition (Consolidated) 2.4% YoY Net Interest Margin (Consolidated) IDR Trillion 4.1% ann. 102.0 106.0 106.3 108.5 35.8 38.3 41.5 43.8 35.3 38.3 40.8 4.94% 4.73% 43.3 4.76%
Slide 44: Bank Internasional Indonesia (3/4)
Bank Internasional Indonesia (3/4) BII Finance’s PBT increased by 23.8% YoY Revenue and Profit Before Tax Consumer Financing IDR billion IDR billion 37.3% 420 4,119 349 3,001 23.8% 190 154 Jun-14 Jun-15 Jun-14 Jun-15 Revenue Profit Before Tax Asset Quality Unit Financing (unit) 13.3% 11.6% 0.37% 0.3
Slide 45: Bank Internasional Indonesia (4/4)
Bank Internasional Indonesia (4/4) WOM Finance revenue increased by 16.9% and asset quality remained stable Revenue and Profit Before Tax Consumer Financing IDR billion IDR billion 10.8% 16.9% 837 4,596 716 4,149 35 (27) Jun-14 Jun-15 Jun-14 Jun-15 Revenue Profit Before Tax Asset Quality Unit Financ
Slide 46: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 47: Islamic Banking (1/2)
Islamic Banking (1/2) Higher Group Islamic Banking PBT of 12.3% for 1H FY2015 on the back of strong financing growth Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew by 25% (ann.) to RM121.9 billion p19% p31% p16% 1H 1H 30.23 Dec-14 Jun-15 RM million YoY 27.61
Slide 48: Islamic Banking (2/2)
Islamic Banking (2/2) Maybank Islamic Malaysia maintained its leadership for both financing and deposit Maybank Islamic Market Share (Malaysia) Market Share by Product 35.0% 32.7% 33.0% 33.4% 30.7% 31.1% 31.6% Jun 15 Jun 14 30.0% Automobile financing 41.5% 37.5% 25.0% Home Financing 26.8% 24.3% 25.1
Slide 49: Insurance and Takaful
Insurance and Takaful Gross premiums for life/family and general rose 3.8% YoY Gross Premium Life / Family (New Business) Market Share AIA Ins. & Tak. 18.6% Prudential Ins. & Tak. 14.9% No. 4 in Life/Family GE Ins. & Tak. 14.3% (New Business) Etiqa Ins. & Tak. 10.2% 0.0% 5.0% 10.0% 15.0% 20.0% Gener
Slide 50: Maybank Philippines
Maybank Philippines PBT growth of 29.7% YoY driven by higher net interest income and non-interest income Key Highlights Revenue and PBT +23.4% YoY Revenue improved by 23.4% or PESO441.0 mil YoY due to higher net interest income and non-interest income, on the back of 2,323.3 positive loan growth,
Slide 51: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 52: An Binh Bank
An Binh Bank Higher revenue growth of 25.7% YoY on higher fee income Key Highlights Revenue and PBT Revenue increased 25.7% or VND201.6 billion primarily contributed by higher fee income. +25.7% YoY However, PBT dropped by 5.4% or VND9.2 billion due to 986.0 higher loan loss provision made. Reve
Slide 53: MCB Bank
MCB Bank PBT increased by 33.7% YoY, on higher revenues and lower provisions Key Highlights Revenue and PBT +26.9% YoY PBT increased by 33.7% YoY contributed by higher revenue. 34.4 Net interest income grew by 15.9% YoY, in tandem with the growth in loans and investments. 27.1 +33.7% YoY 24.2 PK
Slide 54: Table of Contents
Table of Contents Executive Summary 2 Financial Performance 7 Prospects & Outlook 23 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 32 3. Maybank Singapore 37 4. Bank Internasional Indonesia 41 5. Other segments 46 6. Affiliates 51 7. Quarterly Financial Summar
Slide 55: Key Operating Ratios
Key Operating Ratios 1H 1H Variance 2Q 1Q Variance 2Q (%) FY2015 FY2014 YoY FY2015 FY2015 QoQ FY2014 Return on Equity 12.1 13.5 (1.4)% 11.7 12.8 (1.1)% 13.4 Net Interest Margin 2.28 2.36 (8) bps 2.28 2.26 2 bps 2.35 Fee to Income Ratio 29.5 29.8 (0.3)% 27.5 31.5 (4.0)% 30.0 Loans-to-Deposit Ratio 94
Slide 56: Group Gross Loans by quarter
Group Gross Loans by quarter 1Q 2Q 31 Dec 2014 31 Mar 2015 30 Jun 2015 Annualised Annualised Group Gross Loans¹ 410.5 419.0 8.4% 433.3 13.6% Malaysia (RM billion) ² 243.6 245.9 3.8% 248.8 4.6% Community Financial Services 168.8 171.8 7.2% 175.3 8.1% Global Banking 74.8 74.1 (3.9)% 73.4 (3.5)% Intern
Slide 57: Malaysia Gross Loans by quarter
Malaysia Gross Loans by quarter 1Q 2Q RM billion 31 Dec 2014 31 Mar 2015 30 June 2015 Annualised Annualised Community Financial Services 168.8 171.8 7.2% 175.3 8.1% Consumer 135.7 138.9 9.2% 141.4 7.3% Total Mortgage 60.9 62.8 12.1% 65.1 14.7% Auto Finance 38.6 39.7 10.7% 40.4 7.0% Credit Cards 5.8
Slide 58: Group Gross Deposit by quarter
Group Gross Deposit by quarter 1Q 2Q 31 Dec 2014 31 Mar 2015 30 Jun 2015 Annualised Annualised Group Gross Deposits 439.6 447.1 6.8% 453.5 5.7% Malaysia (RM billion) 278.3 278.6 0.4% 285.4 9.7% Savings Deposits 38.5 39.7 12.6% 40.3 5.9% Current Accounts 72.8 74.9 11.7% 72.5 (12.9)% Fixed Deposits 14
Slide 59: Malayan Banking Berhad Contact and Investor Relations
Humanising Financial Services 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 Mohamed Rafique Merican Group Chief Financial Officer Contact: (6)03-2074 7878 Email: rafique@maybank.com
Malayan Banking Berhad (Maybank) — H1 2015 Earnings Presentation on 6ix