Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Invest Malaysia 2012
35 slides from Malayan Banking Bhd's conference presentation, May 29, 2012
Slide 1: Invest Malaysia 2012: Capitalising on the ASEAN Marketplace
C i li i on the Capitalising h ASEAN M Marketplace k l Invest Malaysia 2012 Shangri-La Hotel 29-30 May 2012 www.maybank.com 0
Slide 2: Investor Presentation Agenda
Investor Presentation Transformation Journey Growth Drivers Expansion in ASEAN & Beyond Economic co o c Update & Prospects ospects Key Takeaways 1
Slide 3: Maybank's Transformation Journey Continues
Maybank’s Transformation Journey Continues… “Transformation to the next level: Regionalisation” “Converge on Shared Aspirations and Accelerate Performance” 2012 - 2015 “Start U “S Up, Execute High Impact Create Momentum” initiatives that materially 2010 - 2011 uplifts PBT and reduces Introductio
Slide 4: A six-fold improvement in PATAMI since FY2009
A six-fold improvement in PATAMI since FY2009 A l Analysts' 'CConsensus: Net N Profit P fi (RM mil.) il ) Based on 1Q 2012 PATAMI of RM1.35 billion, Maybank was 6.5% ahead of consensus FY2012 5,061 RM 6 billion Launched Acquired Rights Issue House of Maybank Kim Eng RM8.78 RM8.45 5,000 20% d Minorit
Slide 5: Maybank continues to deliver shareholder value
Maybank continues to deliver shareholder value Total Shareholder Return for Maybank since the RM6 billion right issue ex-date on 31 March 2009 to date of 166.7% (36.5% per annum) is above that of the FBM KLCI (98.7%, 24.3% per annum) and KL Finance Index (143.6%, 32.6% per annum) and it two closes
Slide 6: We maintain our leadership position domestically
We maintain our leadership position domestically Leadership Position Emerging Regional Leader ■ No. 1 bank in Malaysia - both conventional ■ Presence in 9 ASEAN countries and Islamic ■ No. 4 bank in South East Asia (by total assets) ■ 5 International Financial Centres ■ No. 113 in The Banker’s Top 1
Slide 7: Consistently ranked no.1 in total assets, loans & deposits in Malaysia
And have consistently ranked no.1 in total assets, loans & deposits in Malaysia T lA Total Assets (RM bil): bil) 31 D Dec 2011 L Loans and d Deposits D i (RM bil): bil) 31 D Dec 2011 451 Gross Loans 314 283 300 Deposits 200 222 249 178 192 119 152 154 98116 107 39 75 75 87 39 54 24 31 31 Affin AMMB
Slide 8: One of the Top 5 banks in ASEAN
We have established ourselves as one of the Top 5 banks in ASEAN Total Assets (USD bil): 31 Dec 2011 Total Loans and Deposits (USD bil): 31 Dec 2011 DBS 263 DBS 152 169 OCBC 214 UOB 111 131 UOB 183 OCBC 104 119 MAYBANK 143 MAYBANK 89 99 CIMB 95 CIMB 61 70 Public Bank 79 Public Bank 56 63 Bangkok Ban
Slide 9: 1Q FY2012 earnings ahead of consensus
Our performance continues to improve with 1Q FY2012 earnings ahead of consensus z Profit continued to grow in 1Q FY2012 – Year on year, revenue grew 27.7% YoY on the back of 14.0% growth in fund based income and 54.5% growth in fee income. – Quarter on quarter, revenue grew 5.4% after normalising fo
Slide 10: Investor Presentation Agenda
Investor Presentation Transformation Journey Growth Drivers Expansion in ASEAN & Beyond Economic co o c Update & Prospects ospects Key Takeaways 9
Slide 11: Growth across all business segments
We are seeing growth across all business segments M million) +27.7% 3Q FY11 Global Wholesale Banking (GWB) +61.7% ended 31 Mar 2011 4 051 4,051 1Q FY12 Revenue (RM 3,172 +1.6% ended 31 Mar 2012 +40.9% +23.9% +331.1% +29.1% +15.9% 1,589 , 1,614 , 1 308 1,308 R 1,013 330 465 373 462 335 78 167 194 Tot
Slide 12: Singapore continues to grow profitably
Singapore continues to grow profitably Revenue and PBT rose 8% and 7% YoY Diversified Loan Portfolio respectively -3.8% annualised 180.3 24.6 24.3 Others 166.7 mer (Consumer) 20 1 20.1 1.2 1 2 13 1.3 ate Consum 40% 3.3 Car Loans 3.3 95.5 0.8 89.3 3.3 5.3 5.3 Housing Loans SGD billlion 4.6 Others Cor
Slide 13: Indonesia continues to deliver double-digit growth
Indonesia continues to deliver double-digit growth Revenue and PBT (Rp billion) Net Interest Margin +15.1% 1,796 5.67% 1,561 , 5.43% 5.51% 5.28% Revenue +75.9% PBT 5.22% 380 216 Mar-11 Mar-12 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Loan composition (Rp trillion) Asset Quality 67.2 69.8 62.0 0.4 4.95% 59.
Slide 14: GWB gaining momentum and regional recognition in IB deals
GWB is gaining momentum & regional recognition in IB deals 1Q FY2012 Maybank IB’s (Malaysia) Industry Position & Recent Completed Deals Market Share Industry Total Deals / Market Rank by Value Issues Share Value (RM bil) PHP28.5 billion RM 720 million RM6.5 billion M&A1 1 6.2 9 14.3% Term Loan Facil
Slide 15: Group Islamic Banking business sustained profit growth
Group Islamic Banking business sustained profit growth Group Islamic Banking Income and PBT* Maybank Islamic: Total Gross Financing grew 5% annualised to RM53.0 billion YoY RM million 1Q FY12 3Q FY11 Growth ‐4% Fundd based F b d iincome 375.66 375 329.99 13.9% 329 13 9% 16.6 16.4 Fee based income 15
Slide 16: Etiqa: No. 1 in Life/Family and General Business
Etiqa: No. 1 Position in Life/Family (new business) and General Business Combined Gross Premium grew 38% YoY Life/Family (New Business) Market Share Etiqa Ins. & Tak. 16.4% Combined G Premium Gross P i +38 38.1% 1% -2.8% Great Eastern Ins. & Tak. 14.7% Group Premium No. 1 in Life/Family (New Busines
Slide 17: Balance sheet strength and healthy LDR support organic growth
Our balance sheet strength & healthy LDR supports our organic growth Annualised YoY RM billion billi M 12 Mar D 11 Dec Mar M 11 Growth Growth Cash and short-term funds 44.9 49.1 -34.1% 32.0 40.4% Deposits with financial institutions 12.8 6.5 394.2% 8.5 50.8% Securities purchased under resale agreeme
Slide 18: A robust capital management plan is in place
A robust capital management plan is also in place Adjusted for dividend payment and reinvestment made under the Based on 88.5%^ Based on 88.5%^ Dividend Reinvestment Plan (DRP) reinvestment rate reinvestment rate 15.20% 16.29% Group 14.16% 14.12% 14.71% 15.35% 11.80% 11.60% 11.68% 11.57% 10.68% 10.9
Slide 19: DRP preserving capital while rewarding shareholders
And our DRP has been instrumental in preserving capital, while rewarding shareholders Consistently rewarding shareholders with dividend in excess of policy of 40-60% Dividend Payout Ratio G Gross Dividend i id d (sen) and d Payout Ratio i (%) Dividend Payout Ratio 76.5% 74.9% 75.0% 60.0% 61.0% Final
Slide 20: Investor Presentation Agenda
Investor Presentation Transformation Journey Growth Drivers Expansion in ASEAN & Beyond Economic co o c Update & Prospects ospects Key Takeaways 19
Slide 21: Our Regional Aspirations
Our Regional Aspirations By 2015 Our Vision To be a Regional Financial Services Leader Our Mission Humanising Financial Services Across Asia St t i Obj Strategic Objectives ti 1 Undisputed 1. U di t dNNo. 1 R Retail t il Fi Financial i l SServices i provider id iin M Malaysia l i b by 2015 2. Leadin
Slide 22: Growing as part of the ASEAN Economic Community by 2015
We are growing as part of the ASEAN Economic Community by 2015 The ASEAN Community ASEAN Political- The ASEAN Economic Security Community Community ASEAN Demographics: An ASEAN single market and production base by 2015 600 million Comprises five core elements: p p people 1. 1 free f flow fl off good
Slide 23: Now in 9 of 10 ASEAN countries
And we are now in 9 out of 10 ASEAN countries, with plans to open in Laos. Worldwide Presence: 19 countries ASEAN: 9 countries China: Myanmar • Philippines: 1 branch 1 rep office 52 branches 1 rep office • Maybank KE: London: Hong Kong: Thailand 3 branches 1 branch 1 branch Maybank KE: 45 Mayban
Slide 24: International contribution reached one-third of Group
International Revenue & Loans contribution reached one-third of Group. Target to increase PBT contribution to 40% R Revenue P fi B Profit Before f T Tax Gross loans 1Q FY2012 * Including Islamic loans sold to Cagamas (Jan 12 – Mar 12) and excludes unwinding of interest 5.0% 6.5% International: 6.2%
Slide 25: Regional Initiatives to Drive Growth Across Markets
Regional Initiatives to Drive Growth Across Markets Regionalization Initiatives “In In Flight Flight” Credit Cards • Develop regional system capabilities, loyalty & marketing programmes Wealth Management • Regional wealth management offering in three home markets Payments - MME • Sharing of business
Slide 26: Investor Presentation Agenda
Investor Presentation Transformation Journey Growth Drivers Expansion in ASEAN & Beyond Economic co o c Update & Prospects ospects Key Takeaways 25
Slide 27: Malaysia: Sustained Economic Growth for 2012
Malaysia: Sustained Economic Growth for 2012 Growth to be moderate at 4.0% 4 0% ‐ 5.0% 5 0% in 2012 (2011: 5.1%) 5 1%) Inflation expected to moderate to 2 2.7% 7% in 2012 (2011: 3 3.2%) 2%) Q411 GDP: +5.2% YoY CPI and components (% YoY) 160 Quarterly GDP and annual growth rate 12 14 25 Mar ‘12 CPI:
Slide 28: Malaysia: Banking Sector to Remain Healthy
Malaysia: Banking Sector to Remain Healthy Total Loans g grew 12.2% % YoY for 1Q12 Q (Maybank ( y Domestic: 13.8% % YoY)) Total Deposits p grew g 13.7% % YoY (Maybank ( y Domestic 21.2%) %) Total Loans Total Loans YoY Growth Total Deposits Total Deposits YoY Growth 1250 25% Household YoY Growth Busi
Slide 29: Singapore: Growth has stabilised but inflation remains a concern
Singapore: Growth has stabilised but inflation remains a concern Singapore’ss economy remains on track to expand by 1-3% Singapore 1 3% in 2012, 2012 but R l GDP growth Real th ffor 2012 expected t d tto b be 1% – 3% renewed problems in the Eurozone and a persistent slowdown in (2011: 4.9% ) China
Slide 30: Indonesia: Moderating but Respectable Growth for 2012
Indonesia: Moderating but Respectable Growth for 2012 ■ Q1 2012 GDP growth around 6.31%, lower than the growth in Q4 Real GDP Growth: Slowing growth 2011 at 6.49%. Slowing growth in Q1 2012 mainly come from slowing growth of exports (7.81% in Q1 2012 compared to 7.91% in Q4 2011) (y-y) 8.00% and inv
Slide 31: Prospects
Prospects Global GDP growth is forecast at 3% in 2012 (2011 est.3.8%) The Eurozone, US and China expected to 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
Slide 32: Investor Presentation Agenda
Investor Presentation Transformation Journey Growth Drivers Expansion in ASEAN & Beyond Economic co o c Update & Prospects ospects Key Takeaways 31
Slide 33: Management committed to fundamentals and regional development
Management remains committed to focus on fundamentals & the Group’s regional development z Dato’ Dato Khairussaleh Ramli officially began as President Director/CEO of BII on 6 April 2012. z Mohamed Rafique Merican appointed Group CFO, effective on 1 June 2012 z Herminio MM. Famatigan Jr Jr. appointe
Slide 34: Key Takeaways: Investment Case
Key Takeaways Investment Case 1 T f ti programme spurring Transformation i strong t f performance 2 Leading financial services group in Malaysia 3 Emerging regional financial services leader 4 Growth p prospects p in three home markets 5 High dividend payout and robust capitalisation 6 Strong manage
Slide 35: Malayan Banking Berhad Investor Relations Contact
MALAYAN BANKING BERHAD 14th Floor Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Investor Relations Contact Ronnie Royston Fernandiz Head Finance & Treasury Operations Head, Contact: (6)03-2074 8963 Email: ronnie@maybank.com.my Narita Na
Malayan Banking Berhad (Maybank) — Invest Malaysia 2012 on 6ix