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H1FY2016 Results,
Investor Presentation19 November 2015
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation2
Our vision:
As Malaysia’s preferred diversified, internationally
connected financial solutions group, we take pride in
growing your future with us
1. Deliver on focused organic growth 2. Leverage strategic partnerships &
deliver on acquisitions
4. Build sustainability3. Continue to optimize efficiency
Our FY15-17 growth agenda:
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Retail Banking
Enhance customer service
rhythm, build sustainable
growth
Wholesale Banking
Recognition by our customers as their preferred
top tier Malaysian Bank
General Insurance
To be the most trusted insurer in
Malaysia
Islamic Banking
To be known as the Islamic Bank which prospers
with society
Life & Family Takaful
To be a leading customer centric
and modern insurer in Malaysia
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Delivering on FY15-17 strategic agenda highlights
4
Deliver on focused organic growth
• Retail – Targeted segment play Business specialists at branches nationwide Introduced TRUE customer proposition targeting
young professionals Set up specialist - Deposit payroll team
• Wholesale – Grow customer share of wallet Launched new CGC portfolio guarantee scheme
and Biz Solutions package Cross-selling of high flow FX, trade finance and
cash management business
• General insurance – Grow share in non-motor Launched 3 new products year-to-date covering
both individual PA and SME lines
Leverage strategic partnerships & deliver on acquisition
• General insurance (acquisition of Kurnia) Maintain top 3 general insurer Focus on growing non-motor insurance through
cross-selling to existing motor customer base and Banca channels
• Life assurance and family takaful (MetLife) Prioritise on building up agency force and
infrastructure to grow the business
• Merchant and cards issuance business (MBfCards) Small Business Banking developed and
expanded small business solutions (e.g. current account, lending facilities, merchant facilities) for merchants
Continue to optimize efficiency
Better customer experience via process simplification for account opening at branches
Launched Kurnia and AmA CLAIMS express management process including a “first of its kind” for Malaysia windscreen repair model and ongoing changes to its supply chain models
Upgrading of collection, cash management and transaction banking systems to increase productivity and improve processing
Build sustainability
Phase 2 of core banking system project (completion by end 2015) will enhance customer experience & simplify access to multiple channels
Infrastructure modernisation programmes to improve security, reliability and efficiency of data centre
Build pricing and service differentiation capabilities in preparation for de-tariffication of general insurance business
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Headline results
5
Sound asset quality,
intensified collection effort
Modest economic outlook, with
potential headwinds
Income lower by NIM compression and cautious IB
market
Loan growth predominantly
mortgage & corporate
Balancing BAU expenses with
growth enablers
RM’ mil H1FY16YoY growth(Underlying)
Total income 1,898.7 (14.0%)
Expenses 986.8 (4.7%)
Profit before allowances
911.9 (22.2%)
Allowances (71.5) (>100%)
PATMI 722.0 (6.9%)
WB business remains subdued
Better Q2 results over Q1
Divisions showing momentum to
deliver FY16 KPIs
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Performance indicators
6
Q2FY16 H1FY16 FY16 Guidance
PATMI- RM’ million- Growth (%)
382.5 12.7%1
722.0(6.9%)2 Flat 2
ROE 10.2% 9.8% Circa ~ 10.5%
CTI 53.4% 52.0% ≤ 52%
Gross impaired loans ratio 1.95% ≤ 2%
Proposed dividend 5.0 sen per share 40 – 45% payout
Other details:
Gross loan growth- Excluding Auto Finance
0.3%3
4.3%3
2%5.5%
CASA composition 21.1% ≥ 21%
Capital ratios- CET 1- Tier 1- Total
10.5%5
11.8%5
15.6%5
9.1% ± 1.0%
10.6% ± 1.0%
15.0% ± 1.0%
Note:1. QoQ growth2. YoY growth against underlying3. YoY growth4. After deducting proposed dividend
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
536.9445.8 416.6
519.2
339.5382.5
16.0%
12.7% 11.8%
15.1%
9.3% 10.2%
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16
PATMI ROE
95.1 94.8 99.8 102.8 99.8 99.7
90.0% 89.3% 85.9% 83.8% 84.3% 85.6%
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16
Customer deposits Adjusted LDR ratio
Reflects portfolio rebalancing & re-alignment of customer segment focus
1. Customer deposits include stable funding sources
Better Q2 performance
7
Cost-to-income ratioCustomer deposits1 (RM’ bil) and LDR ratio
PATMI (RM’ mil) & ROE
61.0 60.6 62.4 63.5 61.9 63.5
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16
Loans excluding AF TotalQoQ growth: 1.4%YoY growth: 0.6%PATMI QoQ growth: 12.7%
ROE QoQ growth: 0.9%
42.8% 44.0%49.2% 47.9% 50.5% 53.4%
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16
CTI % Expenses growth%
QoQ change: 2.9%
85.6 84.7 86.285.7 84.1 85.3
Net lending (RM’ bil)
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
44.7
49.654.0
59.363.8
32.7
24.0
FY11 FY12 FY13 FY14 FY15 H1FY15 H1FY16
CAGR FY11-15: 9.3%YoY growth: -26.4%
RM (sen)
First half results reflect subdued operating environment
8
Total income (RM’ mil) and non-interest income (%)
EPS (basic)ROA
PATMI (RM’ mil) & ROE
1,343 1,484 1,621 1,782
1,639
775 722
13.6% 13.8% 13.9% 14.1% 13.8% 14.3%
9.8%
FY11 FY12 FY13 FY14 FY15 H1FY15 H1FY16
PATMI Reported
PATMI Underlying
ROE (%)
ROECAGR FY11-15: 0.1%YoY growth: -4.5%
PATMICAGR FY11-15: 9.3%YoY growth: -26.5%
1.39%1.39% 1.37%
1.45%
1.60% 1.65%
1.18%
FY11 FY12 FY13 FY14 FY15 H1FY15 H1FY16
YoY growth: -0.47%(%)
3,926 4,306 4,3794,743
4,263
2,207 1,899
30% 34% 31% 34%41% 45%
35%
FY11 FY12 FY13 FY14 FY15 H1FY15 H1FY16
Total income (underlying)
Total income (reported)
Non-interest income %
CAGR FY11-15: 4.7%YoY growth: -27%
1,919
983
4,725
2,597
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
2,597.4
2,207.4
1,925.1 1,898.7
390.0
187.6
20.6 16.9 57.2 26.4
H1FY15reported
Divestmentgain
H1FY15underlying
Net interest Credit cardfees
Asset,wealth mgmt& brokerage
WB fee &Markets
Insurancepremium &
others
Q1 FY16reported
Modest top line growth, margin compression persists
9
Retail Banking27%
Corp & Comm Banking
46%
Mkts, IB & Fund Mgmt
8%
Insurance14%
Operating5%
PATMI (RM’mil) and divisional contribution (%) QoQ NIM Movement
• Top line growth influenced by:
- NIM compression, as competition remains intense given lower demand and focus on better quality assets
- Flat lift in consumer spending
- Volatile equity and debt markets
- Subdued business sentiment
• NIM stable QoQ, as positive impact from asset repricing was offset by margin compression as higher-yield auto loans tapered off and increased contribution of wholesale loans
( 2%)
( 9%)
775.1
982.8
722.0
H1FY15 H1FY16
Underlying Reported
7%
( 27%)2.45%
2.54%
2.38%2.33%
2.12% 2.12%
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Non-interest income:H1FY15* – 35.6%H1FY16 – 35.0% * Underlying
( 40%)
13.2%YoY Growth
32.2% 12.5% 33.2% 6.4%
14.0%
26.9%
Total income (RM’mil)
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
86.6
88.6
86.8
2.0
1.5 2.4
0.3 0.5
H1FY15 Wholesale
banking
Mortgage Auto
finance
Cards Others H1FY16
Targeted loans growth, driven by mortgage and wholesale
10
Auto26%
Mortgage22%
Cards2%
Wholesale47%
Others3%
Loan growth driver (RM’ bil)Loan composition by type
• Loans growth responding to greater sales focus and relationship management
• Focus in preferred customer segments lifted mortgage (+8.3%) and wholesale banking loans (+5.2%)
• A balanced portfolio composition with retail 53% and non-retail loans 47%
47.6 46.8 46.3 45.9 45.8
39.0 40.7 41.5 39.8 41.0
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Retail Non-retail
86.8 85.7 87.8 87.5 86.6
5.2% 9.8% 8.3%YoY Growth
16.6% 0.3% 16.8%
Breakdown by rate sensitivity:Fixed rate – 35%Variable rate – 65%
Breakdown by concept:Islamic – 32%Conventional – 68%
QoQ Growth: 1.3%
Total retail 53%
Gross loans outstanding (RM’ bil)
Portfolio rebalancing
4.3%Excluding Auto
Finance
Retail loan growth:YoY - 3.9%Excluding Auto Finance - 2.4%
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
4.8%
4.3% 4.3%4.6% 4.6%
4.2%4.4% 4.3% 4.3% 4.4%
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15
Industry - CASA AmBank Mkt Share
Sustaining focus on low cost deposits (CASA)
11
CASA market share and industry CASA balance1
(RM’ bil) Deposits by type of customers (RM’ bil)
• CASA composition sustained through active relationship management and payroll acquisition programmes, despite outflow of term deposits as expected due to rate competition
• CASA balance and market share picked up QoQ whilst industry’s CASA trending down since June’15
17.1 18.5 18.7 18.8 18.8
85.3 90.0 92.189.8 89.3
20.1% 20.5% 20.3% 21.0% 21.1%
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Customer deposits CASA CASA Composition (%)
37.2 40.6 42.0 39.9 39.6
34.735.6 35.8 35.6 35.5
13.413.8 14.4 14.4 14.2
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Biz Ent Individuals Govt & Others
89.389.8 92.1
90.0 85.3
1. Source: BNM Monthly Statistics
0.6%
Deposit and CASA balance (RM’ bil)
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
-0.5%
0.5%
1.5%
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15
AmBank Industry
Increase in Wholesale and Group GIL ratio in Q2FY16 due to a single corporate real-estate loan which was subsequently settled in November
125.0
(71.5)
21.5
37.8
(79.3)
57.9
Asset quality remains strong, allowances lower with higher recoveries
12
Allowances (RM’ mil)
Credit costs (annualised) vs. industry1Gross impaired loans ratios
• Allowances lower with higher recoveries from intensifying collection efforts
• Credit costs trending below industry average since Q2FY15
• GIL ratio at 1.95% as retail assets quality continues to improve whilst corporate loans require close vigilance under current operating environment
• Adequate coverage based on current servicing assessment discounted with internal buffers on seasonal impacts
H1FY15 IndividualAllowance
Collective Allowance
Recoveries Others H1FY16
2.43%
2.17%2.01% 1.95%
1.91%
0.98%
1.53% 1.55% 1.63%
2.00%
1.79% 1.88% 1.79% 1.80% 1.95%
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Retail Wholesale Group
1. An average of eight peer domestic banks
Credit costs below industry since Q2FY15
Consists of loan loss allowances only. Sharp spike due to lower recoveries from WB
AmBankGroup
FY12 FY13 FY14 FY15 H1FY15 H1FY16
Credit cost 0.50% 0.21% 0.08% -0.04% 0.20% -0.12%
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
1,125.4
1,035.6 957.5 986.8
17.6 11.7
89.8
50.59.2 18.4
H1
FY
15
rep
ort
ed
Restr
uctu
ring
H1
FY
15
un
derl
yin
g
Eff
icie
ncie
s &
head
cou
nt
Lif
e b
usin
ess
IB
restr
uctu
ring
H1
FY
16
pre
-in
vestm
ent
Reg
ula
tory &
com
pliance
Infr
astr
uctu
re
H1
FY
16
rep
ort
ed
4.7%
35.0%
40.0%
45.0%
50.0%
55.0%
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15
Continued emphasis on cost discipline
13
Business growth:
• AmHorizon/Core banking system Phase 2
• Infrastructure Facilities Modernization (IFM)
• Cash Management System enhancement (Transaction Banking)
• Collection & Recovery system replacement
• Digital Banking (for Retail Banking)
• Multichannel Switch
Regulatory and compliance:
• Malaysian Chip Card Specification (MCCS)
• ATM BNM Malware Attack Risk Management
• MFRS9
• Basel AIRB
Cost-to-income ratio vs. industry1Key capital expenditure planned for FY16/FY17
• Expense well controlled, balancing between BAU expenses and investments to deliver on our growth agenda
• Despite consistent cost discipline, low income growth caused CTI ratio to trend towards industry average
1. An average of eight peer domestic banks
AmBank Group
Industry
Expense growth driver (RM’ mil)
12.3%
CTI ratio:H1FY15* – 46.9%H1FY16 – 52.0% * Underlying
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
FY07 FY10 FY13 FY15 H1FY16Industry
Ave
Equity & debtcapital
10% 15% 14% 15% 16% 14%
Customer deposits
60% 77% 75% 74% 73% 73%
Term funding & loans with recourse >1year
4% 2% 7% 8% 8%
6%Term funding & loans with recourse <1year
1% 1% 1% 1% 1%
Deposits from banks & FIs
25% 5% 3% 2% 2% 7%
Funding and capital, sound & conservative positioning
14
Funding composition vs. industry
Capital adequacy ratiosFunding maturity profiles
• Prudent liquidity management with LCRs >100% for all banking entities
• Higher composition of stable medium term funding vis-à-vis industry, which weighs on cost of funds
• Whilst capital ratios remain adequate, the Group is reviewing long term capital plans and structure (Basel III FHC @ FY2020)
• Basel III FHC indicative ratios as at 30 September 2015 (no requirements until FY2020) – CET 1: 9.1%; Tier 1:10.2%; Total capital: 13.8%
• Double leverage ratio: 1.14x; Balance sheet leverage ratio: 9.5%; Total leverage ratio: 7.7%
79%
16%
4%
1%
< 6 mth
6-12 mth
1-3 yr
3-5 yr
7%
93%
< 1 yr > 1 yr
Deposits from customers and Banks & FIsTerm funding & Debt capital
9.3% 9.7% 10.5% 10.5%9.8% 10.4%
11.0% 11.1%11.8% 11.8%
14.0%14.7% 14.8%
15.4% 15.8% 15.6%
FY11 FY12 FY13 FY14 FY15 H1FY16
CET 1 Ratio Tier 1 CAR RWCAR/Total Capital Ratio
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Market Share As At 30 Sept 15
(%)Rank
DCM 16.5% 4
M&A League 13.1% 3
M’sian Ringgit IslamicBonds
14.9% 4
FUM1 10.8% 4
Wholesale Banking, subdued outlook but stronger loans momentum and grew CASA
15
QoQ PAT (RM’ mil)
Net loan disbursement (RM) movement picked up in Q2
League table
• QoQ profit increased whilst loan growth picking up in Q2 as
lumpy repayments stabilising and introduction of new
financing/business solutions
• YoY PAT down reflecting NIM compression, cautious business
sentiment and weaker fixed income trading, offset by FX
sales and higher recoveries
• Priorities in Q3:
Corporate - Improve turnaround time for SME segment
TB & Markets – enhanced collaboration, processes,
systems and joint marketing efforts to drive FX & trade
finance flows
Deposits/CASA – leverage on repositioning opportunities
to deliver optimum return
260.9 241.3268.8
191.5233.1
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Disbursement
Net movement
1. FUM data consists of unit trust funds only
22%
1. Net movement equals to disbursement less repayment
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Retail Banking, focus on main bank relationships
16
QoQ PAT (RM’ mil)
Mortgage and auto finance disbursement QoQ(RM)
QoQ deposit balance (RM’bil)
• Performance impacted by margin compression, run-offs in
cards and auto finance, though partially mitigated by
lower allowances from improved asset quality
• Stronger momentum in Q2 from mortgage growth, higher
average auto finance disbursements and card spending
• Key focus in Q3:
Growth in preferred customer segments
Small Business Banking solutions
Continue to focus on collection and recovery efforts to
maintain asset quality
103
77.8
119.3 120.4
86.1
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Mortgage Auto Finance
34.2% 33.1% 33.6% 33.9% 34.2%
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Total deposits CASA %
41.442.142.742.140.9
28%
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
334.2 318.3 316.1 315.0 310.9
69.769.9 70.5 70.7 67.3
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Motor Non-Motor
General insurance, reflecting lower car sales
17
QoQ PAT (RM’ mil)
QoQ premium growth (RM’ mil)Loss ratio and combined ratio
• Gross written premium lower QoQ primarily due to motor insurance, corresponding to challenging car sales data
• PAT was lower YoY impacted by lower premium and investment income.
• Key initiatives for Q3:Motor Renewal New customer friendly renewal notices Gamification renewal monitoring tool Call-centre outbound and SMS renewal reminder initiatives
Non-Motor New product launches Sales kit for Banca and branch agents
69.961.4 62.5 58.9
51.5
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
57.5%65.4% 63.8% 63.0% 62.3%
Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Loss Ratio Combined Ratio
93.9% 92.5%89.3%
93.2%
13%
2%
85.3%
403.9388.2 386.6 385.7 378.2
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Outlook
• GDP growth anticipated to slow from 6.0% in2014 to 4.7% in 2015, reflecting
• Weak commodity prices, dampened exports,lower government spending and slowerbusiness expansion
• Moderate domestic consumption, weigheddown by high household debt levels amidstrising cost of living
• Inflation expected to stay around 2.1%reflecting GST impact and weak Ringgit,partially offset by lower global commodityprices and softer demand
• US dollar rise, interest gap and the Yuanoutlook will weigh on Ringgit
• Authorities expected to continue with prudentand pragmatic policies while reigning in fiscaldeficit and public/household debt (2016F: -3.1%), as per recent National Budget 2016
• Monetary policy expected to remain prudent tosupport slower economic growth
• Loans growth to moderate in tandem withslower GDP expansion and high LD ratio
• Margins remain a challenge from thepersistence of intense rate-based competitionfor deposits
• Asset quality may come under pressure fromrising inflation, subsidy reductions and GSTimpact and a more challenging businessenvironment
• OPR to remain steady at 3.25% in 2015.
Malaysia Banking
Industry loan indicators
Jan-1
3
Feb-1
3
Mar-
13
Apr-
13
May-1
3
Jun-1
3
Jul-
13
Aug-1
3
Sep-1
3
Oct-
13
Nov-1
3
Dec-1
3
Jan-1
4
Feb-1
4
Mar-
14
Apr-
14
May-1
4
Jun-1
4
Jul-
14
Aug-1
4
Sep-1
4
Oct-
14
Nov-1
4
Dec-1
4
Jan-1
5
Feb-1
5
Mar-
15
Apr-
15
May-1
5
Jun-1
5
Jul-
15
Aug-1
5
Sep-1
5
Disbursed (RM' bil) Approved (y/y%) Applied (y/y%)
18
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
AmBank Group Second Half FY16 Considerations and Expectations
19
Divisions to show moderate growth momentum, given current economic
outlook
Disciplined lending in all targeted sectors to
continue
Pricing competition to continue stressing
NIM
Sound asset quality,recoveries likely to level off leading to
normalised credit cost
BAU Expense controlled to offset
investments for growth
Governance and compliance remain a
key focus
Conservative funding profiles and efficient capital positioning
Clear strategies andaligned teams to
deliver
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Appendix
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Islamic PATMI
H1FY16 H1FY15
H1FY16 H1FY15
Conventional PATMI Positive growth in H1FY16 Contraction in H1FY16
26.9% 27.0% 38.1% 12.3% >100% 30.7%
982.8 mil
43.5%
83%
9%
Appendix – Income Statement
(RM’ mil)PATMIH1FY15
Net Interest Income
Non-Interest Income
Total income
Expenses PBPProvisions/Allowances
PBTTax & Zakat
PAT MIPATMIH1FY16
H1FY16 1,234.2 664.5 1,898.7 986.8 911.9 (71.5) 983.4 206.8 776.6 54.6
H1FY15 1,421.7 1,175.7 2,597.4 1,125.4 1,472.0 125.0 1,347.0 298.4 1,048.6 65.8
13.2%
85%
Growth
21
25.9% 17.0% 26.5%
722.0 mil
17%
88%
12%
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
2.68%
2.92%
3.13% 3.10% 3.10% 3.09%3.17%
3.28%
2.98% 2.94%
2.75% 2.68% 2.72% 2.68%2.43%
2.12%
2.25%
2.75%
3.00% 3.00% 3.00% 3.00%3.25% 3.25%
1.00% 1.00%
4.00% 4.00% 4.00% 4.00% 4.00% 4.00%
FY10 FY11 FY12 FY13 FY13 Restated FY14 FY15 H1FY16
Note:1 NIM includes Net Financing Income from Islamic Banking business2 FY10-FY14 based on internal data computation
3 FY2013 has been restated to reflect adoption of new MFRS
MFRS 1
0
2.68%
2.92%
3.13% 3.10% 3.10% 3.09%2.98% 2.94%
2.75%2.68% 2.72% 2.69%
2.25%
2.75%
3.00% 3.00%3.00% 3.00%
1.00% 1.00%
4.00% 4.00% 4.00% 4.00%
FY10 FY11 FY12 FY13 1 Apr 2013 FY14Cost of funds NIM OPR SRR
COF
NIM
SRR
OPR
Appendix – Net interest margin
FY10 FY11 FY12 FY13FY13
[Restated]3 FY14 FY15 H1FY16
NIM Driver Q1FY16 vs.
Q4FY15 Q2FY16 vs.
Q1FY16
Portfolio rebalancing -3 -5
Asset re-pricing -2 +5
Deposits -2 -
Underlying movement -7 -
One-offs -14 -
QoQ NIM movement -21 -
Breakdown of NIM Driver (bps):
22
NIM and COF (YoY)
YTD NIM (bps) drivers
2.45%
2.54%
2.38%2.33%
2.12% 2.12%
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
37.5 13.3 103.2 11.7 59.6 106.0
36.0 94.3 95.3
40.9
804.1
22.3
1,424.1
Sep-15
2.5% 0.9% 7.3% 0.8% 4.2% 7.4% 2.5% 6.9% 6.4% 2.9% 57.0% 1.4%
4.3 3.7 8.6 0.53.5 4.5
2.8 3.0 8.5 1.6
45.3
0.4
86.8
Sep-15
5.0% 4.2% 10.0% 0.6% 4.0% 5.2% 3.2% 3.5% 9.8% 1.9% 52.2% 0.5%LoansComposition
Source : BNM, financial statement
AgricultureMining & Quarrying
ManufacturingElectricity,
Gas & WaterConstruction
Wholesale, Retail,
Restaurant
Transport, Storage &
Com
Finance, Insurance,
& Biz. Real Estate
Education & Health
Household Others Total Loans
YoYGrowth
AgricultureMining & Quarrying
ManufacturingElectricity,
Gas & WaterConstruction
Wholesale, Retail,
Restaurant
Transport, Storage &
Com
Finance, Insurance,
& Biz. Real Estate
Education & Health
Household Others Total Loans
Appendix – Loans by sector vs. Industry
7.1% 20.7% 7.9% 52.6% 15.9% 18.6% 24.5% 24.5% 5.8% 37.3% 2.4% 21.5% 0.3%
YoYGrowth
LoansComposition 2.6% 0.9% 7.2% 0.8% 4.2% 7.4% 2.5% 6.6% 6.7% 2.9% 56.5% 1.6%
17.1% 58.8% 3.4% 9.6% 10.4% 10.3% 12.9% 11.3% 21.4% 11.8% 8.1% 15.7% 9.7%
Loans by purpose Sep’15YoY
growthComposition
Purchase of transport vehicles
22.8 -11.1% 26.2%
Working capital 24.2 +23.7% 27.8%
Purchase of resiproperty
16.8 +10.9% 19.4%
Purchase of non-resiproperty
7.8 -9.9% 8.9%
Other purpose 4.9 -7.1% 5.6%
Purchase of securities
3.0 -17.5% 3.5%
Construction 3.2 -23.3% 3.6%
Personal use 1.6 -11.7% 1.9%
Credit card 1.4 -23.0% 1.6%
Purchase of fixed assets
1.3 +33.0% 1.5%
Consumer durables 0.0 - 0.0%
86.8 +0.3% 100.0%
Loans by purpose Sep’15YoY
growthComposition
Purchase of transport vehicles
169.5 +2.3% 11.9%
Working capital 345.2 +15.0% 24.2%
Purchase of resiproperty
424.8 +12.1% 29.8%
Purchase of non-resiproperty
194.6 +13.8% 13.7%
Other purpose 66.0 +1.7% 4.6%
Purchase of securities
74.5 -0.2% 5.3%
Construction 41.3 +8.9% 2.9%
Personal use 62.5 +5.0% 4.4%
Credit card 34.7 +0.6% 2.4%
Purchase of fixed assets
10.9 +3.3% 0.8%
Consumer durables 0.1 -71.9% 0.0%
1,424.1 +9.7% 100.0%
Loans by Sector
Loans by Sector
RM’ bil
RM’ bil
23
4.3 3.7 8.6 0.53.5 4.5
2.8 3.0 8.5 1.6
45.3
0.4
86.8
Sep-15
4.3 3.7 8.6 0.53.5 4.5
2.8 3.0 8.5 1.6
45.3
0.4
86.8
Sep-15
AmBank Group
Industry
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
5.2 13.6 18.8
70.5
89.3
Sep'15
Source : BNM, financial statement
Appendix – Deposits by sector vs. Industry
YoYGrowth
RM’ bil
24
Savings Current Account CASA Fixed Deposits Core Deposits
Savings Current Account CASA Fixed Deposits Core Deposits
0.1% 14.3% 10.0% 3.3% 4.6%YoYGrowth
RM’ bil
Savings
14%
Current
Account29%
Fixed Deposits
57%
Savings
6%Current
Account15%
Fixed Deposits
79%
Core Deposits Composition (AmBank
Group)
Core Deposits Composition (Industry)
AmBank Group
Industry
136.6 293.6
430.2 579.0
1,009.2
Sep'15
1.7% 7.5% 5.6% 10.9% 4.5%
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
23% 26% 28%
55%58%
61%
2%1%
1%21% 15% 10%
FY14 FY15 H1FY16
Most preferred Preferred Least Prefered Gen 1 scorecards
Household Income Group (% of loans outstanding)
Appendix - Auto Finance
Risk Grades (% of loans outstanding)
Auto Finance monthly balance vs. net outflows
Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15
Balance O/S Net outflows
67% 70% 72%
33% 30% 28%
FY14 FY15 H1FY16
Other Income brackets ( >RM3K ) Vulnerable Income bracket ( <=RM3K )
Auto Finance loans vs industry vehicle sales
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
AMMB disbursement (RM) Industry vehicle sales (No.)
25
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
27%
H1FY16 PATH1FY15 PAT Positive growth in H1FY16 Contraction in H1FY16
H1FY16 PAT(composition to Group)
PATH1FY15
Total Income Expenses PBP Allowances PBT TaxPAT
H1FY16
H1FY16 772.4 444.2 328.2 57.4 270.8 64.3 206.5
H1FY15888.3 455.7 432.6 131.9 300.7 74.7 226.0
Income Statement (RM’mil)
Balance Sheet (RM’mil/%)
Growth 13.0% 24.1% 2.5% 56.4% 9.9% 13.9% 8.6%
Appendix – Retail Banking
H1FY16
vs
H1FY15 H1FY16 H1FY15
Gross Loans /
Financing 47,614.5 45,767.6 -▼ -3.9%
Gross Impaired Loans 1.91% 1,165.7 874.9 -▼ -25.0%
Customer Deposits 40,943.4 41,398.5 ▲ +1.1%
CASA Deposits 10,433.0 10,540.2 ▲ +1.0%
ROA 0.90% 0.94% ▲ +0.04%
CTI 51.6% 57.8% ▲ +6.2%
Allowance Coverage 70.8% 70.1% -▼ -0.7%
26
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Corp&Com
m Bkg68%
Markets
7%
IB
15%
Funds
Mgmt10%
H1FY16 PATH1FY15 PAT Positive growth in H1FY16 Contraction in H1FY16
Income Statement (RM’mil)
Balance Sheet (RM’mil/%)
16.9% 15.5% 19.3% 17.7% 11.7% 13.9% 11.0%
Appendix – Wholesale Banking
Growth
54.7%
PATH1FY15
Total Income Expenses PBP Allowances PBT TaxPAT
H1FY16
H1FY16 714.0 248.0 466.0 (83.2) 549.2 124.7 424.5
H1FY15 858.8 307.3 551.5 (70.7) 622.2 144.9 477.3
H1FY16 PAT(composition to Group)
H1FY16 Income(composition by sub-segments)
H1FY16 vs
H1FY15 H1FY16 H1FY15
Gross Loans / Financing 39,079.1 41,116.1 ▲ +5.2%
Gross Impaired Loans 2.00% 387.9 821.4 ▲ >100.0%
Customer Deposits 47,358.2 50,257.4 ▲ +6.1%
CASA Deposits 7,446.1 9,052.0 ▲ +21.6%
ROA 1.97% 1.62% -▼ -0.35%
CTI 35.8% 34.7% -▼ -1.1%
Allowance Coverage 122.5% 60.1% -▼ -62.4%
Ave Assets Management 46,107.6 47,124.6 ▲ +2.2%
55%
27
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
H1FY16 PATH1FY15 PAT Positive growth in H1FY16 Contraction in H1FY16
Income Statement - Insurance (RM’mil)
Income Statement – Group Funding & (RM’mil)
Appendix – Insurance and Group Funding & Others
PATH1FY15
Total Income Expenses PBP Allowances PBT TaxPAT
H1FY16
H1FY16 260.6 142.8 117.8 2.5 115.3 7.5 107.8
H1FY15 331.4 142.0 189.4 (4.6) 194.0 45.8 148.2
21.4% 37.8% 0.6% >100% 40.6% 83.6% 27.3%Growth H1FY16 PAT(composition to Group)
14%
28
PATH1FY15
TotalIncome
Expenses PBP Allowances PBT Tax PAT MIPAT
H1FY16
H1FY16 154.3 154.5 (0.2) 48.2 48.0 10.3 37.7 54.5 (16.8)
H1FY15518.2 219.8 298.5 (68.4) 230.1 33.0 197.0 65.8 131.2
H1FY16 PAT(composition to Group)
4%
Growth 70.2% >100.0% 29.7% 100.0% 79.1% 68.9% 80.9% 17.1% >100.0%
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
PATZ: profit after tax and zakat
Appendix – Islamic Banking
H1FY16 Gross Financing(composition to Group)
Income Statement (RM’mil)
PATZH1FY15
Total Income Expenses PBP Allowances PBT Tax & zakatPATZ
H1FY16
H1FY16 439.4 237.8 201.6 44.0 157.6 33.7 123.9
H1FY15 463.3 216.1 247.1 91.4 155.8 35.2 120.6
Growth 5.2% 18.4% 10.0% 51.9% 1.2% 4.3% 2.8%
Balance Sheet (RM’mil/%)
H1FY16 PAT(composition to Group)
H1FY16 PATH1FY15 PAT Positive growth in H1FY16 Contraction in H1FY16
16%
32%
29
H1FY15 H1FY16
Gross Financing 24,841.4 27,780.3 ▲ +11.8%
Gross Impaired Financing 2.31% 372.6 640.5 ▲ +71.9%
Customer Deposits 25,377.6 28,695.3 ▲ +13.1%
CASA Deposits 5,254.0 5,710.6 ▲ +8.7%
ROA 0.349% 0.315% -▼ -0.04%
CTI 46.651% 54.130% ▲ +7.4%
Allowance Coverage 145.963% 79.293% -▼ -66.7%
H1FY16
vs H1FY15
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
LDR1 of 85.6%
AmBank Islamic Berhad
1. RM2b Subordinated Musyarakah Sukuk
2. RM3b senior sukukmusyarakah programme
3. RM3b Basel III-compliant Subordinated SukukMurabahah Programme via Tawarruq arrangement
AMMB Holdings Berhad
1. RM2b Medium Term Notes (Senior & Subordinated)
Funding diversity underpinned by
CASA: RM18.8 billion Fixed deposits: RM70.5billion
(strong retention)
Supplemented by term funding & debt capital
AmBank (M) Berhad
1. RM500m Innovative Tier 1 Capital Securities Programme
2. RM500m Non-innovative Tier 1 Capital Securities Programme
3. USD200m USD Subordinated Term Loan
4. RM2b Medium Term Notes
5. RM4b Tier 2 Subordinated Notes
6. RM7b Senior Notes2
7. USD2b Euro Medium Term Notes
1. Includes stable funding sources 2. 1st senior notes issuance by a financial institution in Malaysia
AmBank (M) Berhad
AmBank Islamic Berhad
Loans with Recourse
Recourse obligations on loans sold to Cagamas -maturing in 2017
Islamic financing sold to Cagamas –maturing in 2016
• Statutory reserve and liquidity requirement savings
• Reduced exposure to interest rate risks
Funding characteristics
• Improve funding stability, maturity gap and liquidity ratios
• Reduce dependence on short-dated deposits to fund long-dated fixed rate loan assets which incur liquidity risk and interest rate risk
• Diversifies investor base
• No obligation for buy back since we are not exposed to withdrawal risks and the notes are traded in the open market
• Enable depositors to invest in long and medium dated papers
Appendix – Funding sources and maturity profile
30
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
ANZ diversified footprints in Asia
Value proposition
• Seconding ANZ staff into key roles
• Providing technical expertise
• Support new product development
• Two-way customer referrals
• Joint account planning
• Access to regional network & connectivity
Board representation – AMMB Holdings Berhad
• Mark Whelan – Director (CEO Australia)
• Suzette Corr – Director (General Manager HR Australia and Group General Manager Talent & Culture, ANZ)
• Shayne Elliott, ANZ’s CFO (resigned on 15 October 2015 as he will be assuming the role as ANZ’s CEO starting 1 January 2016)
Board representation –AmBank (M) Berhad, AmBank Islamic Berhad & AmInvestment Bank Berhad
• Graham Hodges – Director (Deputy Chief Executive Officer, ANZ)
Management representation
• Mandy Simpson – Chief Financial Officer
• Nigel Denby – Chief Risk Officer
• Tan Chin Aun - Transaction Banking
• Oscar Demirtas - Senior Programme Manager, Small Business Banking
Partnership with ANZ since 2007
Source: ANZ website
Appendix – ANZ & AmBank Group Partnership
29 Asian markets, 5 Partnerships
31
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
IAG diversified footprints in Asia
Value proposition
• Involved in the management of AmGeneral Insurance, offering skills transfer, partnership and relationship models of IAG
• Adding value through claims re-engineering savings, increased revenue via product development, underwriting and pricing
Board representation
• Duncan Brain – Director (CEO, IAG Asia)
• Aidan Pallister – Director (Deputy CEO / COO of IAG Asia)
Management representation
• Derek Roberts – CEO, AmGeneral Insurance Berhad
• Arron Mann – General Manager, Claims
• Chris Tandy – General Manager, Personal and Commercial Pricing
Partnership with IAG
Appendix – AmGeneral Partnership
2 subsidiaries in Thailand & Vietnam Investment in associates in Malaysia, China & India
Source: IAG annual report 2014
32
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Perlis
Kedah
PulauPinang
Perak
SarawakKuala Lumpur
Putrajaya
NegeriSembilan
Melaka Johor
Pahang
Selangor
Labuan
SabahTerengganu
Kelantan
Brunei Darussalam
Branches ATM RBC
Perlis 1 4
Kedah 6 28
Pulau Pinang 14 49 1
Perak 18 47
Selangor 38 244
Kuala Lumpur 23 131 1
Putrajaya 1 3
Negeri Sembilan 7 38
Melaka 6 37
Johor 21 91 1
Pahang 9 32 1
Terengganu 4 20
Kelantan 2 22
Sabah 9 36 1
Labuan 1 2
Sarawak 15 49 1
175 833 6
Population Density: <100 persons per km2 101-500 persons per km
501-1,000 persons per km2 1,001--1,500 persons per km2
> 1,501 persons per km2
AmBank Islamic
branches
Weekend Banking Branches
ATMs @ 7-Eleven
ElectronicBanking Centres
Internet & Mobile
BankingAmGeneral AmMetlife AmInvestment MBF
3 75 368 182AmOnlineAmGenie
32(include 28
dual branded branches)
18 branches52 agencies
14 26
Note(s):
Brunei: AmCapital (B) Sdn Bhd
Appendix – Distribution channels
RBC: Regional Business Centres
33
Nationwide Branch Network
Other Customer Touch Points
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
AMMB Holdings Berhad
23.8%1 AmCorp 13.0% EPF 16.7% Others 46.5%
100% AmBank (M) Berhad
100% AmInvestment Group Berhad
100% AmInvestment Bank Berhad
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 H1FY2016
27% 27% 26% 29% 31% 29% 26%
1.ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited2.Formerly known as AmG Insurance Berhad3.Formerly know as Kurnia Insurans (Malaysia) Berhad4.MetLife owns 50% plus one share in AmMetLife Insurance Berhad, with the remaining shares held by AmBank Group, and AmBank
Group owns 50% plus one share in AmMetLife Takaful Berhad, with the remaining shares owned by MetLife
Foreign shareholding excluding ANZ
100% AmBank Islamic Berhad
100% MBF Cards (M’sia) Sdn Bhd
33.33% Bonuskad Loyalty Sdn Bhd
100% AMAB Holdings Sdn Bhd
51% AmGeneralHoldings Berhad2
~50% AmMetLifeTakaful Berhad4
~50% AmMetLifeInsurance Berhad4
100% AmGeneral Insurance Berhad3
49%
~50%
~50%
As at 30 September 2015
Retail Banking Wholesale Banking Islamic Banking General InsuranceLife Assurance &
Takaful
Appendix – Shareholding structure & franchise value
34
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
-25.0%
-4.7%
16.5%
19.5%
26.1%
84.7%
92.9%
-35.0% -15.0% 5.0% 25.0% 45.0% 65.0% 85.0% 105.0%
CIMB
MBB
AMMB
KLCI
RHB Cap
PBB
HLBK
(Note: 18 May 2007 vs. 30 Sep 2015)
Ratings FY2007 FY2015
AmBank (M) RAMLT: A2, ST: P1 Outlook: Stable
LT: AA2, ST: P1Outlook: Stable
S&PLT: BBB-, ST: A-3 Outlook:Stable
LT: BBB+, ST: A-2Outlook: Negative
Moody’s
LT: Baa2, ST: P-3 Outlook:StableBFSR: D-
LT: Baa1, ST: P-2Outlook: Stable*BCA: Baa3*Adj BCA: Baa3
AmInvestment RAMLT: AA3, ST: P1 Outlook: Stable
LT: AA2, ST: P1 Outlook: Stable
AmBank Islamic
RAMLT: A2, ST: P1 Outlook: Stable
LT: AA2, ST: P1 Outlook: Stable
AMMB RAM NALT: AA3, ST: P1 Outlook: Stable
Source : Bloomberg as at 17 Nov2015
+3
+3
+1 Notches of ratings upgrades since 2007
+1
AMMB HOLDINGS BERHAD P/EPS : 9.73P/BV : 0.96
Market Price : RM4.68
+3
Average TP : RM5.24Buy : 4 (17%)Sell : 6 (25%)Hold : 14 (58%)Average TP / Average CP : 1.12x
Appendix – Banking sector share price movement / target price and recommendations
* Upgrade from ba1 on 16 Jun 15
+2
35
Buy/Outperform/Overweight/AddP/EPS & P/BV as at 30 September 2015
TP: target priceSell/Underperform/Fully valued/Reduce/UnderweightHold/Neutral/Market perform
Banking Sector Share Price Movement Upgraded ratings
Target Price and Recommendations
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
86.4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2010 2011 2012 2013 2014 2015
BCIBusiness Conditions Index
points
Source: BNM & Bloomberg
Appendix – Key economy indicators
36
4.9%
6.5%
0.5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2010 2011 2012 2013 2014 2015
GDP Consumption Investment
Business confidence index
3.0%
3.2%
Mar
June
Sept
Dec
Mar
June
Sept
Dec
Mar
June
Sept
Dec
Mar
June
Sept
Dec
Mar
June
Sept
Dec
Mar
June
Sept
2010 2011 2012 2013 2014 2015
CPI Unemployment
FDI flow
20.5
12.5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2010 2011 2012 2013 2014 2015
TD FDI
CPI and unemployment rateGDP, consumption and investment growth
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
To be updated for the his
* Retail comprise purchase of transport vehicle, purchase of residential property, personal use and credit card
1.2%
98.1%
Mar
Jun
Sept
Dec
Mar
Jun
Sept
Dec
Mar
Jun
Sept
Dec
Mar
Jun
Sept
Dec
Mar
Jun
Sept
Dec
Mar
Jun
Sept
2010 2011 2012 2013 2014 2015
Loan loss coverage
Gross impaired loans
Source: BNM & Bloomberg
* Effective 2 January 2015, the Base Rate would replace the Base Lending Rate as the main reference rate for new retail floating rate loans
37
Appendix – Banking system data
Key interest rates Asset quality
Household debt movementHousehold debt, national savings and retail impaired loan ratio
34.2% 34.6% 33.0% 31.2% 30.9%
74.5% 76.2%81.3%
86.7% 87.9%
24.9%19.7% 16.3% 14.7% 13.3%0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
2010 2011 2012 2013 2014
Gross national savings Household debt/GDP
Retail impaired loans ratio*
6.8 6.1 6.8
2.41.4 0.6
3.2
1.7 0.8
1.4
2.31.7
13.8
11.5
9.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2012 2013 2014
Annual Change
(%)
Residential property Hire purchase Personal use
Others* Annual Change (%)
4.49%
3.25%
6.79%
3.85%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Avg lending rate (commercial banks) Average OPR
Average BLR Base rate
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
1,666.8
85.4%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2010 2011 2012 2013 2014 2015
Total deposits LD ratio
2.5
13.1
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2010 2011 2012 2013 2014 2015
New issues of equity New issues of debt
14.8%
12.8%
12.1%
Mar
Jun
Sept
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sept
Dec
Mar
Jun
Sept
2010 2011 2012 2013 2014 2015
RWCAR Tier 1 CET 1
Source: BNM & Bloomberg
Beginning January 2013, capital components are reported based on Basel III Capital Adequacy Framework
Basel II Basel IIIRM’bil
RM
’mil
38
Appendix – Banking system data
Capital ratios Capital activities
Loan growth Deposit growth
8.3%
11.1%
9.7%
Mar Jun SeptDec Mar Jun SeptDec Mar Jun SeptDec Mar Jun SeptDec Mar Jun SeptDec Mar Jun Sept
2010 2011 2012 2013 2014 2015
Retail yoy growth Non Retail yoy growthTotal loans yoy growth
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
0.6 -4.8
3.3 -1.4
-4.0 3.1
-4.0 -0.6
2.7 6.0
7.9 8.8
Source: World Economic Outlook Database October 2015
Real GDP Growth 2014 2015F
0.8%
2.0%
2.5%
3.0%
5.8%
6.3%
Thailand
Singapore
Vietnam
Malaysia
Indonesia
Philippines
-0.9%
0.0%
1.9%
2.2%
2.4%
6.8%
Thailand
Singapore
Philippines
Vietnam
Malaysia
Indonesia
0.0
1.3
0.7
0.4
1.3
-3.3
Vietnam
Singapore
Thailand
Philippines
Indonesia
Malaysia
5.5
31.1
68.8
91.6
101.4
255.5
Singapore
Malaysia
Thailand
Vietnam
Philippines
Indonesia
24.6
25.7
28.8
30.9
31.7
47.4
Vietnam
Philippines
Malaysia
Thailand
Indonesia
Singapore
-3.0
3.8
4.4
4.6
5.4
19.1
Indonesia
Thailand
Philippines
Malaysia
Vietnam
Singapore
39
Appendix – National statistics (ASEAN)
GDP per capita, 2015 (USD)
2,171
2,951
3,416
5,426
10,073
53,224
Vietnam
Philippines
Indonesia
Thailand
Malaysia
Singapore
Unemployment (%) Inflation (%)
CA Balance (% of GDP)Gov Structural Bal (%
of GDP)Population (mil) Savings rate (% of GDP)
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
• RM48k (USD15k) GNI
per capita
• RM1.7 trillion GNI
• 6% annual GDP growth
GROSS NATIONAL INCOME
JOBS
• 31.6m population
• 3.3m additional jobs
TRANSFORMATIONAL ACTIONS
INVESTMENT
Focus Drivers:
• 12 NKEAs, 131 EPPs
• 60 Biz Opportunities
• Private-sector led
Competitiveness ‘Enablers’
• 6 SRIs & 51 Policy Measures
• RM1.4 trillion investment
• 92% private investment
• 8% public investment
• 73% DDI, 27% FDI
ECONOMIC TRANSFORMATION
PROGRAMME
ETP Overview Achievement of 12 NKEAs in 2013 and 2014
2020Target
2011 2012 2013 2014 To-date% of
Target
Investment (USD’bil) 444.0 94.8 21.7 15.2 14.4 146.1 32.9%
GNI per capita (USD per capita) 15,000 9,710 228 168 320 10,426 69.5%
Job Creation (mil) 3.3 0.2 0.4 0.4 0.5 1.5 45.5%Note:• Scoring is calculated by a simple comparison against set 2013 and 2012 targets respectively. (*) The overall NKEA
composite scoring is the average of all scores.• Data was correct as on ETP announcement date, the ETP is an evolving programme, in the past 2 years, some EPPs
have been dropped, some new ones were added
ETP : Economic Transformation Programme Source ETP Annual Report 2013 & 2014, Resaerch House Report
Tracking of EPPs
NKEAs
2020 Target KPI Scoring*
GNI(RM’bil)
New Jobs 2014 2013
Greater KL/ Klang Valley 190 320,000 103% 98%
Oil, Gas & Energy 131.4 52,300 108% 97%
Financial Services 180.2 275,400 121% 117%
Wholesale & Retail 55.4 454,190 104% 124%
Palm Oil & Rubber 230.9 41,600 106% 78%
Tourism 66.7 497,000 126% 115%
Electrical & Electronics 53.4 157,000 104% 105%
Business Services 78.7 245,000 96% 102%
Communications Content & Infrastructure
57.7 43,162 110% 101%
Education 31.8 535,000 116% 102%
Agriculture 28.9 109,335 120% 98%
Healthcare 35.3 181,000 105% 103%
40
Appendix – Economic Transformation Programme
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Glossary / Disclaimer of warranty and limitation of liability
Reported PerformanceReported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market
One OffsOne offs comprise those impacts on financial performance that arise from changes to :
• accounting and provisioning policies (eg 5 and 7 year rules)• differences between economic and accounting hedges• prior period catch ups (eg backdated salary costs)• strategic investments and divestments (eg ANZ partnership), and • tax and regulatory regimes (eg deferred tax asset write off due to reduction in corporate tax rates)
Underlying PerformanceUnderlying performance refers to the financial performance adjusted for one off impacts as above
Business DivisionsBusiness divisions
• comprise AmBank Group’s core operating businesses that generate profits from direct customer transactions and interactions• have relatively more stable income streams, incur the bulk of the costs and typically have a lower risk profile• in most instances have market shares and growth metrics that can be measured and benchmarked externally
Operating SegmentsOperating segments
• have more volatile and lumpy income streams, with the former a direct function of risk appetite • include
• income and expenses associated with shareholder funds, loan rehabilitation and legacy businesses, plus• costs associated with corporate, shared services and governance functions currently not charged back to the business units
The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad or AMMB Holdings or “AMMB” or its affiliates do not make any representation or warranty, express or implied, as to the adequacy, accuracy, completeness or fairness of any such information and opinion contained and shall not be liable for any consequences of any reliance thereon. Neither AMMB Holdings nor its affiliates are acting as your financial advisor or agent. The individual is responsible to make your own independent assessment of the information herein and should not treat such content as advice relating to legal, accounting, and taxation or investment matters and should consult your own advisers.
Forward looking statements are based upon the current beliefs and expectations of the AMMB Holdings and are subject to signif icant risks and uncertainties. Actual results may differ from those set forth in the forward looking statements. AMMB Holdings does not undertake to update the forward looking statements to reflect impact of circumstances or events that may arise after the date of this presentation.
The information in the presentation is not and should not be construed as an offer or recommendation to buy or sell securities. Neither does this presentation purport to contain all the information that a prospective investor may require. Because it is not possible for AMMB Holdings or its affiliates to have regard to the investment objectives, financial situation and particular needs of each individual who reads the information contained thus the information presented may not be appropriate for all persons.
The information contained is not allowed to be reproduced, redistributed, transmitted or passed on, directly or indirectly, to any other person or published electronically or via print, in whole or in part, for any purpose.
The term "AMMB Holdings" and “AmBank Group” denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to the financial institutions under AMMB Holdings.
Disclaimer of Warranty and Limitation of Liability
Your Bank. Malaysia’s Bank. AmBank. H1FY2016 Results – Investor Presentation
Glossary / Disclaimer of warranty and limitation of liability
The material in this presentation is general background information about AmBankGroup’s activities current at the date of the presentation. It is information given insummary form and does not purport to be complete. It is not intended to be relied uponas advice to investors or potential investors and does not take into account theinvestment objectives, financial situation or needs of any particular investor. Theseshould be considered, with or without professional advice when deciding if an investmentis appropriate.
For further information, visit www.ambankgroup.com;
or contact
Ganesh Kumar Nadarajah
Executive Vice President, Group Finance – Business Performance & Investor Relations
Tel: +603 2036 1435
Fax: +603 2031 7384
Email: ganesh-kumar@ambankgroup.com /
ir@ambankgroup.com