Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Q3 2013 Earnings Presentation
56 slides from Malayan Banking Bhd's earnings presentation, Nov 21, 2013
Slide 1: Investor Presentation: Financial Results 3Q FY2013 & 9M FY2013
Investor Presentation Financial Results: 3Q FY2013 & 9M FY2013 ended 30 September 2013 www.maybank.com 21 November 2013 0
Slide 2: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 1 Result
Slide 3: Overview: Key Trends and Developments
Overview Key trends and developments impacting the banking industry Key Trends and Developments • More challenging operating environment amidst concerns on QE tapering Industry • Tighter monetary policies in Indonesia Landscape • Tighter retail financing guidelines • Weaker regional currencies • Pha
Slide 4: Overview
Overview Group PATAMI for 9M FY2013 rose 12.5% YoY to RM4.82 billion Performance momentum picked up in 3Q Group PATAMI increased 11.4% QoQ in 3Q FY2013 (2Q FY2013: 4.1% QoQ) driven by: Lower impairment losses (+30.8% QoQ) Stable net income growth (+2.1% QoQ) Lower overheads (-1.0% QoQ) T
Slide 5: FY2013 Group Targets
FY2013 Group Targets Group performance in line with earnings target Key Performance FY2013 1Q FY13* 2Q FY13* 3Q FY13* Maybank Industry Indicators Targets Achievement Average* (9M FY13)* Headline KPI Return on Equity* 15.0% 14.2% 14.7% 16.2% 14.9% Other targets Group Loans 12.0% 5.8% 12.3% 9.3% 9.3%
Slide 6: FY2013 Strategic Priorities
FY2013 Strategic Priorities Preparation to accelerate regional growth Targets Other key developments Raise the tempo for regionalisation Continued progress on BII’s PBT growth, with 19% YoY earnings growth for 9M FY2013. Branch expansion from July to November 2013 includes 1 branch in Indonesi
Slide 7: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 6 Result
Slide 8: 3Q FY2013 P&L Summary
3Q FY2013 P&L Summary PATAMI increased 11.4% QoQ to RM1.75 bil, led by lower provisions, higher revenue and lower overheads 3Q FY12 (RM mil) 3Q FY13 YoY 2QFY13 QoQ (Restated) Net interest income 2,376.9 2,349.3 1.2% 2,364.6 0.5% Net Fund based income (Islamic Banking) 644.2 486.1 32.5% 506.7 27.1% N
Slide 9: 9M FY2013 P&L Summary
9M FY2013 P&L Summary PATAMI increased 12.5% YoY, led by 9.9% revenue growth, supported by managed overhead growth of 5.7% YoY 9M ended Sep FY12 (RM mil) 9M ended Sep FY13 YoY (restated) Net interest income 7,152.9 6,853.3 4.4% Net Fund based income (Islamic Banking) 1,626.1 1,303.0 24.8% Net Fund B
Slide 10: International & Domestic Portfolio Mix 9M FY2013
International & Domestic Portfolio Mix 9M FY2013 International PBT contribution held at 30%, from the corresponding period in 2012 Net Income Profit Before Tax Gross loans* 9M FY13 (Jan 13 – Sep 13) International: International: International: 33% 30% 37% 5.3% 6.7% 8.7% 7.8% 13.9% 7.2% 13.9% RM6.57b
Slide 11: Business Segment Performance 9M FY2013 (1/2)
Business Segment Performance 9M FY2013 (1/2) Net income rose 9.9% YoY owing to stronger CFS, corporate banking and insurance contributions +9.9% 9 Months ended 30 Sep 2012 14,197 9 Months ended 30 Sep 2013 12,918 Net Income (RM million) Global Banking (GB) +3.1% +8.5% +8.3% (4.3)% +4.5% +2.6% +10.5%
Slide 12: Business Segment Performance 9M FY2013 (2/2)
Business Segment Performance 9M FY2013 (2/2) Group registered higher net fund based income across most sectors Net Fund Based Income rose 7.6% 9 Months ended 30 Sep 2012 +7.6% 8,779 9 Months ended 30 Sep 2013 8,156 Global Banking (GB) +17.5% +9.6% +17.9% +21.8% 0.0% +3.8% +5.1% RM million 3,768 4,13
Slide 13: Fee based Income 3Q FY2013
Fee based Income 3Q FY2013 Core fee income down 11.8% QoQ due to lower investment fee & unrealised losses on securities & derivatives -11.8% 2Q FY2013 3Q FY2013 1,745 1,539 -9.1% +147.2% -8.5% +616.2% -43.1% -41.0% -405.1% 924 840 623 RM million 420 248 252 265 160 78 -238 71 65 91 37 Total non-inte
Slide 14: Fee based income 9M FY2013
Fee based income 9M FY2013 Core fee income rose 9.5% YoY on the back of higher forex and investment fee Note: Based on restated figures for 9 months ended 30 Sep FY2012 post-MFRS 10 application +9.5% 4,702 9 months ended 30 Sep 2012 4,296 9 months ended 30 Sep 2013 +9.8% RM million 2,682 2,442 +20.6
Slide 15: Group Loans Growth: Sep 2013
Group Loans Growth: 30 Sep 2013 Annualised loan growth of 9.3% led by international growth of 10.0% and domestic growth of 8.7% 30 Sep 13 31 Dec 12 Annualised 30 Sep 12 YoY Group Gross Loans * 339.6 317.3 9.3% 304.8 11.4% Malaysia (RM billion)** 212.8 199.8 8.7% 195.2 9.0% Community Financial Servic
Slide 16: Malaysia Loans Growth: Sep 2013
Malaysia Loans Growth: 30 Sep 2013 In Malaysia, consumer and SME portfolio delivered double digit growth while corporate banking slowed RM billion 30 Sep 13 31 Dec 12 Annualised 30 Sep 12 YoY Community Financial Services 146.8 135.4 11.3% 132.1 11.2% Consumer 117.8 108.2 11.8% 104.5 12.7% Total Mort
Slide 17: Group Deposit Growth: Sep 2013
Group Deposit Growth: 30 Sep 2013 Annualised group deposit growth of 11.8%, with international growth of 13.6% and domestic growth of 11.1% 30 Sep 13 31 Dec 12 Annualised 30 Sep 12 YoY Group Gross Deposits 377.9 347.2 11.8% 330.5 14.4% Malaysia (RM billion) 246.1 227.3 11.1% 217.1 13.4% Savings Depo
Slide 18: LDR and CASA Ratio: Sep 2013
LDR and CASA Ratio: 30 Sep 2013 Group LDR improved to 88.2% since Dec 2012, and CASA ratio increased with improvements in international markets Group Malaysia LDR CASA 89.6% 87.5% 87.8% 87.4% 88.2% 86.3% 85.9% 85.7% 86.1% 86.6% 35.1% 34.2% 34.7% 34.9% 36.1% 40.7% 38.8% 39.1% 39.2% 40.7% Dec 12 Jun 1
Slide 19: Key Operating Ratios
Key Operating Ratios Group’s operating ratios within guidance set for FY2013 Variance Variance (%) 1Q FY13 2Q FY13 3Q FY13 3Q FY12 4Q 2012 YoY QoQ Return on Equity 14.2 14.7 16.2 17.1 (0.9)% +1.5% 16.3 Net Interest Margin (post-MFRS 10) 2.47 2.42 2.39 2.49 -10 bps -3 bps 2.45 Net Interest Margin (pr
Slide 20: Overheads 9M FY2013
Overheads 9M FY2013 Group CIR improves with a positive JAW position Group overheads composition 9M ended 9M ended Sep YoY (RM‟ mil) 3Q FY13 2Q FY13 QoQ Sep FY13 FY12 (post-MFRS 10) Personnel costs 3,721.6 3,573.0 +4.2% 1,224.9 1,275.1 -3.9% IT Expenses 485.6 408.1 +19.0% 188.7 154.4 +22.2% Marketing
Slide 21: Asset Quality 9M FY2013
Asset Quality 9M FY2013 GIL improves to 1.83% as at end Sep 2013, and loan loss allowances improves 35% QoQ Allowance for losses on loans Group Impaired Loans Ratio Allowances for losses on loans Loan loss coverage Gross Impaired Loans Ratio Net Impaired Loan Ratio 106.3% 105.6% 104.7% 103.5% 2.8% 3
Slide 22: Asset Quality by Market
Asset Quality by Market All markets show YoY improvements in GIL, but being carefully monitored in the current environment Malaysia Singapore BII Group GIL NIL 2.23 0.53 0.53 2.21 2.19 2.15 2.10 2.24 2.00 0.45 0.46 2.14 2.17 2.13 0.44 0.43 1.95 0.40 0.40 1.81 1.59 1.49 1.48 1.35 0.31 0.32 1.29 1.29
Slide 23: Capital Adequacy: Sep 2013
Capital Adequacy: 30 Sep 2013 Total capital ratio at 15.3% (assuming 85% dividend reinvestment rate) and CET1 at 10.8% Before Assuming 85% Based on BNM’s proposed reinvestment Implementation dividend rate Guideline * 15.51% 15.25% 15.20% 15.85% 12.89% 12.64% 12.59% 12.44% 11.04% 10.79% 10.73% 10.22%
Slide 24: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 23 Resul
Slide 25: 4Q Market Outlook
4Q Market Outlook Opportunities and challenges remain in home markets, but Group expects continued traction on both financing and funding Outlook Strategic Priorities (3 to 6 months) • Improved export flows • Increase trade finance business • Investment momentum to pick-up • Continued focus on corpo
Slide 26: Group Performance Outlook
Group Performance Outlook On track with profitability target, but expect some easing on loan growth in line with industry Maybank Previous Current Maybank Key Performance Indicators FY2013 Industry Industry (9M FY13)* Targets Forecast Forecast Headline KPI Return on Equity* 15.0% - - 14.9% Other tar
Slide 27: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 26 Resul
Slide 28: Community Financial Services (1/7)
Community Financial Services (1/7) Retail Deposits grew 9.6% annualised with CASA growth at 7.0% Total Retail Deposits grew 9.6% annualised as at Sep 2013 Total Retail CASA grew at 7.0% annualised basis +8.6% YoY +11.3% YoY +9.6% ann. +7.0% ann. 105.1 49.8 101.2 102.4 48.8 48.3 RM billion RM billion
Slide 29: Community Financial Services (2/7)
Community Financial Services (2/7) Mortgage grew 10.2% with continued improvement in asset quality Continued growth in loan balances despite intense competition Asset quality improved to 0.8% in Sep 2013 +11.3% YoY +10.2% ann. 49.6 50.9 52.2 1.3% 48.5 46.9 1.1% 7.8 8.1 8.4 1.0% 7.5 RM billion 7.1 0.
Slide 30: Community Financial Services (3/7)
Community Financial Services (3/7) Auto Finance business improved in volume and market share Auto Finance* grew 11.9% annualised for 3Q FY2013 Asset quality trend sustained +11.6% YoY +11.9% ann. 0.55% 0.53% 0.54% 0.52% 33.4 0.45% 32.3 RM billion 31.4 30.7 29.9 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Sep
Slide 31: Community Financial Services (4/7)
Community Financial Services (4/7) Cards outperformed against industry despite declining trend in market share Cards Market Share Card billing, receivables and merchant sales outperformed industry Sep 13 Sep 12 YoY Growth Maybank Industry* Cardbase 18.0% 18.4% Cardbase -0.2% 1.9% Billings 27.0% 25.5
Slide 32: Community Financial Services (5/7)
Community Financial Services (5/7) Business banking/SME banking loans grew 9.2%, with SME (<RM5mil) growing at 19.3% Loans grew 9.2% annualised Deposits growth at 15.6% annualised +17.1% YoY +5.2% YoY +15.6% ann. +9.2% ann. 58.6 62.9 56.3 56.1 27.6 27.1 27.4 28.5 29.0 53.7 RM billion RM billion 4.7
Slide 33: Community Financial Services (6/7)
Community Financial Services (6/7) Customer Segmentation: Growing TFA* and cross selling ratio improving HNW & Affluent Customer TFA grew 12.6% annualised Mass Customer TFA grew 8.1% annualised +15.3% YoY +8.6% YoY +12.6% ann. +8.1% ann Total TFA (RM billion) Total TFA (RM billion) 128.7 98.7 124.4
Slide 34: Community Financial Services (7/7)
Community Financial Services (7/7) Overall loans & deposits growth continue to outpace the industry Sep 2013 Dec Dec Mar Jun Sep vs MBB Rank ^ 2011 2012 2013 2013 2013 Dec 2012 Loans Total Consumer/Household 16.4% 17.0% 17.1% 17.1% 17.1% 2 Auto (Purchase of transport vehicles) 19.2% 20.2% 20.3% 20.5
Slide 35: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 34 Resul
Slide 36: Global Banking (1/5)
Global Banking (1/5) Corporate banking loans increased 3.1%, while GIL stabilised Total GB loans increased by 3.1%* to RM66.0 billion Trade Finance market share3 easing due to settlements RM billion 33.4 +2.7% 26.5% Term Loan 32.5 YoY 26.3% 32.5 26.0% 25.6% 25.6% 29.9 Trade Finance +6.9% 29.4 and Ot
Slide 37: Global Banking (2/5)
Global Banking (2/5) More cautious global market* activity in 3Q FY2013 PBT and Revenue contracted by 6.8% and 5.7% YoY Group Securities Portfolio grew 34.3% YoY respectively Net interest income +34.3% YoY Non-interest income -6.8% 93.8 95.5 -5.7% 86.1 80.4 9.7 Others 1,588 8.6 1,907 1,798 71.1 6.3
Slide 38: Global Banking (3/5)
Global Banking (3/5) Notable deals completed from July to October 2013 Singapore Philippines Malaysia Malaysia Philippines USD132.8 mm USD621.7 mm USD750.4 mm USD628.3 mm USD412.1 mm IPO IPO IPO IPO IPO Transaction Manager Principal Adviser Joint International Lead Manager Joint Principal Adviser Jo
Slide 39: Global Banking (4/5)
Global Banking (4/5) Maybank Kim Eng 9M FY2013 revenue reaches RM1.1 billion 9M ended 30 Sep FY2013 Total Income (RM mil) 9M ended 30 Sep FY2013 Total Income for Maybank Hong Kong Others RM35.3 (3%) RM39.9 (4%) Kim Eng rose by 3.9% YoY Philippines RM73.3 (7%) +3.9% YoY Indonesia 1,080.8 RM30.8 (3%)
Slide 40: Global Banking (5/5)
Global Banking (5/5) Maybank Kim Eng Leading ASEAN wholesale bank Malaysia League Table – Equity & Rights Offering Amount Advisor Ranking Market Share (%) MYR (Mil) Maybank 1 27.9 2,136.18 CIMB 2 21.2 1,621.84 Kenanga Investment Bank 3 11.1 848.97 RHB 4 7.2 553.06 AmInvestment Bank 5 5.7 436.52 Sour
Slide 41: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 40 Resul
Slide 42: Maybank Singapore (1/2)
Maybank Singapore (1/2) Loans growth at 5.9%, led by consumer loans growth of 9.7% and business loans growth of 3.8% Loans portfolio expanded to reach S$28.4 bil as Diversified Loan Portfolio 5.9% annualised of Sep 2013, spurred by strong growth in consumer loans and business loans. 25.0 27.2 28.4
Slide 43: Maybank Singapore (2/2)
Maybank Singapore (2/2) PBT of SGD311 mil, on the back of accounting adjustments and investments into new businesses (SGD mil) 9M FY2013 9M FY2012 YoY 3Q FY2013 QoQ Net Fund Based income 308.72 317.09 -2.6% 100.61 -1.8% Net Fee Based income 202.29 210.70 -4.0% 77.01 +46.6% Net income 511.00 527.79 -
Slide 44: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 43 Resul
Slide 45: Bank Internasional Indonesia (1/4)
Bank Internasional Indonesia (1/4) PATAMI of IDR1.1 bil for YTD-Sept 2013, 19% higher YoY 9M ended 9M ended (IDR bil) 3Q FY13 2Q FY13 QoQ YoY Sep FY13 Sep FY12 Net Fund Based income 1,530 1,430 7% 4,340 3,944 10% Net Fee Based income 544 528 3% 1,710 1,433 19% Net income 2,074 1,958 6% 6,050 5,377 1
Slide 46: Bank Internasional Indonesia (2/4)
Bank Internasional Indonesia (2/4) Maintained performance despite challenging environment, with strong deposits growth Loans composition (IDR trillion) (Consolidated) Net Interest Margin (Consolidated) Loans growth of 17.8% annualised and LDR (bank only) improved to 86.42% +17.8% ann +30.8% ann 91.7
Slide 47: Bank Internasional Indonesia (4/4)
Bank Internasional Indonesia (4/4) Slower 2-wheel vehicle financing amidst tighter regulations Revenue and PBT (IDR billion) Unit Financing (‟000 unit) 0.0% Stand alone -8.0% 392 392 1,185 1,178 311 1,062 1,005 286 +30.9% +262.2% 106 81 160 113 60 (37) New Used Total YTD Sep'12 YTD Sep'13 YTD Sep'12
Slide 48: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 47 Resul
Slide 49: Islamic Banking (1/2)
Islamic Banking (1/2) Group Islamic Banking Income and PBT* Market Share YoY RM million 9M FY13 3Q FY13 9M FY12 3Q FY12 Sep-13 Sep-12 Growth AITAB 33.3% 29.8% Fund based income 1,626.1 1,303.0 24.8% Mortgage 22.6% 20.9% ** Other operating income 394.2 366.8 7.5% Term financing 28.0% 21.4% Total inco
Slide 50: Islamic Banking (2/2)
Islamic Banking (2/2) Maybank Islamic PBT Maybank Islamic Market Share (Malaysia) Dec-12 1,190.1 30.0% 28.9% 28.1% 952.8 1,000.6 26.2% 26.8% 25.1% 697.9 932.6 7.3% 25.0% RM million Y-o-Y 462.0 23.2% 22.5% 22.1% 22.5% 20.0% 20.6% 15.0% Dec-09 Dec-10 Dec-11 Sep-12 Sep-13 Sep-12 Dec-12 Mar-13 Jun-13 Se
Slide 51: Insurance and Takaful
Insurance and Takaful Gross Premium Life / Family (New Business) Market Share Single Premium -37.0% 9M FY2012 AIA & ING Ins. & Tak. 19.1% Regular Premium +3.6% No. 2 in Life/Family 9M FY2013 Etiqa Ins. & Tak. 17.9% Credit Premium -3.8% (New Business) Prudential Ins. & Tak. 13.8% Group Premium -27.1%
Slide 52: Maybank Philippines
Maybank Philippines Key Highlights Revenue and PBT +28.1% YoY PBT decreased by 10.3% for 9 months ended Sep’13 2,520.5 attributed to higher expenses from the opening of new branches. 1,968.0 PESO Mil Revenue grew by 28.1% mainly due to increase in NII Revenue (+21.4%) from interest on loans and
Slide 53: Table of Contents
Table of Contents Overview of Group Financials 2 Financial Performance 7 Prospects & Outlook 24 Appendix: Business Sector Review 1. Community Financial Services 27 2. Global Banking 35 3. Maybank Singapore 41 4. Bank Internasional Indonesia 44 5. Other segments 49 6. Affiliates 54 Financial 52 Resul
Slide 54: An Binh Bank
An Binh Bank Key Highlights Revenue and PBT Revenue declined 17.1% YoY owing to lower interest income 1,329.6 -17.1% YoY of VND359bil. NIM compressed as the State Bank of Vietnam 1,101.7 (SBV) has reduced the discount rates by 4% during the year VND Bil under review in a move to help lower the cos
Slide 55: MCB Bank
MCB Bank Key Highlights Revenue and PBT -3.0% YoY Revenue impacted by lower discount rates as State Bank 38.5 37.4 of Pakistan decreased the monetary policy rates on 21 June 2013 by 0.5% to 9%. The minimum deposit rates remain unchanged at 6.0%. Hence, resulting in lower +2.6% YoY 25.7 26.4 margin
Slide 56: Malayan Banking Berhad Investor Relations Contact
Humanising Financial Services Across Asia 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
Malayan Banking Berhad (Maybank) — Q3 2013 Earnings Presentation on 6ix