FY2020 RESULTSINVESTOR PRESENTATION
29 JUNE 2020
GCEO PRESENTATIONDato’ Sulaiman Mohd Tahir
FY20 Financial Snapshot
Top 4 Strategy
Managing Uncertainties (COVID-19)
Market Outlook
FY20 Financial agenda and scorecard
FY21 Outlook
3
4-5
6-12
13
14
15
FY20 Financial snapshot
FY2020 Results – Investor Presentation3
Financial Snapshot
FY20 Financials Strong revenue and PBP out turn Macro provisions of RM167m taken in Q4FY20
Profitability(RM’ mil)
Income4,227
FY19: 3,922 8% • Good income growth underpinned by NII and trading & fee income
Expenses2,108
FY19: 2,131 1% • Continue to optimise operational efficiency
PBP2,119
FY19: 1,792 18% • Positive JAWs of 9%, CTI of 49.9%
(Recovery) / Impairment
336FY19: (304)
>100% • Credit costs includes RM167m macro provisions taken in March 2020
PATMI1,341
FY19: 1,505 11%
• Underlying net profit up 15% (excluding RM167mil macro provisions and net gains on retail debt sale of RM285mil in Q4FY19)
ROE7.4%
FY19: 8.8% 140bps • Underlying ROE 8.1%; underlying ROTE at 9.4%
Assets & Liabilities (RM’ bil)
Gross Loans107.2
FY19: 101.8 5% • Broad-based loans growth, ex. auto loans up 9%
Deposits113.0
FY19: 106.9 6% • Actively managing cost of funds, CASA up 16%
Capital & Liquidity
FHC CET11 12.4%FY19: 11.9%
55 bps • Improved CET1 (regulatory reserve of 1% retained)
FHC LCR158%
FY19: 193% 3500 bps • Highly liquid
Dividend per share13.3 sen
FY19: 20.0 sen 6.7 sen • Dividend payout of 30%
1. After deducting proposed final dividend
AmOnline customers: 298k -> 966k (3.2x)Monthly online transactions: RM8mil -> RM1.9bil
Closing Top 4 Strategy (FY17 – FY20): Setting up for sustainable growth
FY2020 Results – Investor Presentation4
Top 4 Strategy
Growth in targeted segments & products
Firmer foundations
Enhanced digital capabilities
Foreign e-Remittance
Connecting you to the world
Easy-to-remember IDsfor payment
Cheque Management
Old way of work in a new way
Convenient online payment
at your finger tips
Digital Token
One device settle it all
Fresh FundsReduce a significant
friction for customers to place in new
deposits
Apply AmMoneyLine1st online debt consolidation
DuitNow QRCashless experience
with convenient mobile payment
Foreign e-Remittance
Instant, Transparent
• Built core revenue base over RM4bil (FY17-20 CAGR: 4%)
• CTI below 50% (from FY16: 58.8%)• Resolved large corporate NPLs and completed
retail debt sale• Improved capital and liquidity positions
M A X I S L U N O U N I O NP A Y
W E C H A TP A Y
R A K U T E N
Developing partnerships and ecosystems
RM’bil FY2016 FY2020 Growth
SME 11.9 20.6 1.7x
MidCorp 11.8 16.0 1.4x
Card 1.6 2.6 1.6x
Loan
s
RM’bil FY2016 FY2020 Growth
Deposit 90.4 113.0 1.3x
CASA 18.7 28.8 1.5x
CASA Ratio 20.7% 25.5% 1.2xDe
po
sits
Cu
sto
me
rs
Customer base FY2016 FY2020 Growth
Mass Affluent 51,843 143,466 2.8x
Affluent 43,358 85,919 2.0x
SME 78,517 93,886 1.2x
Mid Corp 2,705 2,848 1.1x
3,696
3,7663,979 3,922
4,227
FY16 FY17 FY18 FY19 FY20
2,174 2,160
2,421
2,131 2,108
58.8% 57.4%60.8%
54.3%49.9%
FY16 FY17 FY18 FY19 FY20
90.4 93.9 95.8106.9 113.0
FY16 FY17 FY18 FY19 FY20
87.9 91.0 96.3 101.8 107.2
FY16 FY17 FY18 FY19 FY20
1,302
1,325
1,132
1,505
1,341
FY16 FY17 FY18 FY19 FY20
1,2733
1,4683
1,2023
1,522
1,605
1,558
1,792
2,119
FY16 FY17 FY18 FY19 FY20
Strategic execution outcomes
5
Strategy review
Total Income (RM’ mil)
Expenses (RM’ mil) & CTI (%)
PBP (RM’ mil)
PATMI (RM’ mil)
Gross Loans (RM’ bil)
Customer Deposits (RM’ bil)
1. 3FY CAGR (Peers) calculated based on average of 8 local banks’ CAGR in their respective financial year end2. Includes gain on foreclosed properties and fixed income trading3. Underlying 4. Refer to page 19 for details on normalised items
CTI
Expenses
FY2020 Results – Investor Presentation
CAGR FY17 – 20:AMMB: 4%Peers1: 4%
CAGR FY17 – 20:AMMB: 10%Peers1: 4%
CAGR FY17 – 20:AMMB: 6%Peers1: 4%
CAGR FY17 – 20:AMMB: 6%Peers1: 3%
CAGR FY17 – 20: CTI Exp.AMMB: 4% 1%Peers1: ≈ 3%
YoY Growth: 8%
YoY Growth: 18%
YoY Growth: 5%
YoY Growth: 11%
YoY Growth: 6%
Exp.YoY
Growth: 1%
CAGR FY17 – 20:AMMB: ≈
Peers1: 5%
23241274
704
1934
2,2283
1682
1282
1,1973
3,5983 3,8923
874
3,9003
224
1682 1064224
1,4383
1,6643
1,7703
Managing through uncertainties (COVID-19)
FY2020 Results – Investor Presentation6
COVID-19: Initiatives & Approach
Employees
Staff welfare our top priority
• BCM plan activated
• Staff currently under “split operations” and “work from home” arrangements (58% WFH)
• Enabled VPN and video conferencing capabilities
• Revised branch hours and social distancing measures
• RM2.8mil of COVID-19 response costs• Net loans qualified for BNM’s 6-month
moratorium (after opt out) = ~RM65 billion
• Approved ~RM800 million SRF facility for circa 1,000 SMEs
• R&R for corporates
Supporting our customers
Communities
Care for our communities
• Sponsored meals for UM Medical Centre front liners
• Donations of RM500,000 to TabungCOVID-19 via MERCY
• Staff fund raising for charitable causes
• Capital maintenance
• Funding resiliency
• Credit vigilance
• Stress testing
Internal prudential measures
Customers
Internal measures
Funding and liquidity approach
FY2020 Results – Investor Presentation7
Higher customer and FI deposits, raising medium term funding Liquidity ratios
COVID-19: Funding & Liquidity
Ratios FY19 FY20 Apr’20
LCR 192.9% 158.2% > 170%2
LDR 95.3% 94.9% 89.5%
LTAF3 83.0% 81.5% 77.7%
NSFR4 >115% >100% N/A
Note: 2. All banking entities3. Loan-to-Available-Funds ratio (LTAF) refers to gross loans (excluding
financing funded by Islamic Investment Accounts and loans sold to Cagamas) divided by deposits plus borrowings and sub debt.
4. BNM lowered the minimum NSFR requirement from 100% to 80%, effective from Apr’20 to Sep’20
• Circa RM72bil (67% of total loans RM107.2bil) qualified for moratorium. Net qualifying loans after opt out at circa RM65bil (61% of total loans)
• Cash gap ~RM6bil over 6 months (LCR impact of 3-5% per month on a static basis)
• Actions to raise additional liquidity:
- RM2.2bil1 medium term funding (2Y-5Y tenor) raised in Mar and Apr
- RM5.7bil1 growth in customer deposits / NIDs since 31 Mar
- LCRs for all banking entities above 170%1, higher than 31 March 2020 and LDR at 89.5%1
Impact of moratorium and mitigating actions
Maturity Breakdown (Remaining Contractual Maturities)RM’bil
Short term funding (Customer and FI deposits)
Medium term funding (Term funding, Cagamas
and debt capital)
FY19 FY20 Apr’20 FY19 FY20 Apr’20
Up to 1 month 53.1 66.3 64.0 0.0 0.1 0.1
> 1 - 3 months 21.9 28.5 28.8 0.2 1.6 1.6
> 3 - 6 months 17.5 11.2 13.2 3.1 2.0 2.0
> 6 - 12 months 19.1 14.2 17.7 2.2 0.9 0.9
> 1 - 5 years 2.9 2.6 2.3 2.8 3.1 3.6
> 5 years 0.1 0.2 0.2 4.2 3.7 3.7
Total 114.6 123.0 126.3 12.5 11.4 11.9
Note: 1. As at 30 Apr 20
4.50%
2.50%12.44%
FY20 CET1 BNM Requirements
CET 1 Capital Conservation Buffer Pillar 1
Capital maintenance objectives
COVID-19: Capital
• FHC CET1 of 12.4%
• Regulatory reserve at RM388mil (maintained 1% BNM minimum requirement)
• Sufficient loss absorption capacity to maintain CET1 at 10.5% (stress tests performed)
• Loss absorption capacity of RM6.3bil before breaching CET1 of 7%2
FY2020 Results – Investor Presentation8
9.5%
Severity of
stress
Cumulative loss
absorption capacity
RM2.5bil3
RM3.6bil3
RM6.3bil3
7%
10.5%
1 2
1. After proposed final dividend 2. BNM allows for capital conservation buffer of 2.5% to be drawn down during the 6 month moratorium period3. Cumulative basis, based on the Group’s total RWA of RM109bil
12.4%
FHC CET1level
Moratorium for SMEs and individuals
FY2020 Results – Investor Presentation9
Loans by Stages (%) Loans by Internal Risk Grades (%)
COVID-19: Asset Quality
• Total qualified loans of circa RM72bil, net qualified loans after opt-out at circa RM65bil (61% of total loans)
• FY20 net credit costs of 30bps (Before macro provisions: 14bps, in line with guidance). RM167mil macro provisions taken in March
• GIL at 1.73% (Q3FY20: 1.71%); LLC at 93.4% (Q3FY20: 105.2%)
• Portfolio monitoring and assessing credit vulnerabilities using forward looking model and credit migration stress testing
• Portfolio quality remains sound: 87% in Stage 1, circa 56% in Strong to Exceptionally Strong risk grades
Stage 187%
Stage 211%
Stage 32%
Total Gross Loans: RM107.2bil
Strong ~ Exceptionally
strong, 56%
Satisfactory ~ Moderate
31%
Marginal ~ Substandard
11%
Impaired2%
Total Gross Loans: RM107.2bil
Corporate credit: Early alert exposures
FY2020 Results – Investor Presentation10
Early alert corporate exposures by categories (%) Early alert corporate exposures by risk grades (%)
COVID-19: Asset Quality
Potential R&R56%
Oil & Gas34%
Covid-19 Vulnerable
Sectors10%
Early Alert Exposures (WB, BB and Retail SME)
• We have stress tested about RM13.7bil (including RM0.7bil of O&G bonds) exposures, of which:
- Categories: Potential R&R (56%, RM7.7bil), O&G (34%, RM4.7bil) and COVID-19 vulnerable sectors (10%, RM1.3bil)
- Exposure Stages: Stage 1 (88%, RM11.4bil); Stage 2 (12%, RM2.3bil)
- By Risk Grades: Over 67% in Strong to Exceptionally Strong risk grades
- Excluding the O&G bonds, these exposures constitute 12.1% of our total loans
• COVID-19 vulnerable sectors refer to hotels, restaurants, tourism/ leisure activities, manufacturing, services, wholesale/ retail trade, construction, transport & storage, passenger transport and plantation industries
Early alert exposures RM13.7bil
Early alert exposures RM13.7bil
Strong ~ Very
Strong67%
Satisfactory ~ Moderate
27%
Marginal ~ Substandard
6%
Strong ~ Exceptionally Strong
9%
Satisfactory~ Moderate
62%
Marginal~ Substandard
26%
Impaired3%
Internal Risk Grade
(%)
Secured55%
Partially secured
45%Collaterisation
(%)
SME portfolio: Balanced risk profile
FY2020 Results – Investor Presentation11
Business Banking (RM11.2bil gross loans)
Retail SME (RM3.6bil gross loans)
COVID-19: Asset Quality
CGC / SJPP
Guarantee43%
Property Financing
40%
Others1
17%
Collaterisation(%)
Strong~ Exceptionally
Strong36%
Satisfactory~ Moderate
52%
Marginal~ Substandard
9%
Impaired3%
Internal Risk Grade
(%)
1. Facilities with varying levels of collateralisation
Retail portfolio: Highly collateralised
FY2020 Results – Investor Presentation12
Mortgages (RM32.6bil gross loans)
Auto Finance (RM13.1bil gross loans)
COVID-19: Asset Quality
> RM 10K41%
> RM 5K -RM 10K
40%
> RM 3K -RM 5K
14%
≤ RM 3K5%
Income Level
≤ 50%43%
> 50% -60%25%
> 60%32%
Debt-Service Ratio(DSR)
> RM 10K14%
> RM 5K -RM 10K
39%
> RM 3K -RM 5K
35%
≤ RM 3K12%
Income Level
≤ 50%65%
> 50% -60%18%
> 60%17%
Debt-Service Ratio(DSR)
• Collateral Coverage: 99.4%
• Current LTV: 68%
• 75% of the Mortgages are owner occupied
• Self-employed : 12% of portfolio
• Collateral coverage: 97.3%
• National / Non-national cars: 43% / 57%
• Self-employed : 9% of portfolio
Outlook for 2020
FY2020 Results – Investor Presentation13
Market Outlook
GDP growth: +0.4% to -2.0%
Banking Sector
Inflation: +0.5% to -1.5%
Export growth: -3.0% to -9.2%
USD/MYR outlook: 4.25 – 4.30
Loans growth: 0.4% to -2.5%
Asset quality: Weaker (COVID19 impact)
OPR: 1.50% to 2.00%
Resilient liquidity & capital positions
Malaysia
FY20 Financial agenda and scorecard
FY2020 Results – Investor Presentation
Financial agenda
Revenue growth
BET300
“Accelerate digital partnerships”
“ Continue to create a leaner and more efficient organisation”
FY20 priorities
FY20 priorities
Key Metrics
Key Metrics
• Increasing penetration in targeted products & segments, grow
CASA
• Diversifying funding, managing cost of funds
• Smart digital partnerships to create new customer access points
• Revenue growth
• NIM
• CASA growth
• Cost discipline
• Pacing investments
• Digital initiatives to drive internal efficiencies
• CTI
• Positive JAWS
FY20 Scorecard1
• NII growth = 8%
• NoII growth = 8%
• NIM = 1.94% ( 5bps)
• CASA growth = 16%
FY20 Scorecard1
• CTI = 49.9% ( 440bps)
• Positive JAWs = 9%
1. Represents YoY growth unless otherwise stated
P
P
P
P
P
P
Capital accretion“To strengthen our capital position and deliver sustainable dividend payout”
FY20 priorities Key Metrics
• Capital release options
• RWA efficiencies
• FHC CET1 ratio
• RWA growth
• ROE improvement
• Dividend payout
FY20 Scorecard1
• FHC CET1 = 12.4% ( 55bps)
• RWA efficiency = 64.4% ( 60bps)(FY16 – 18 Average: 71.9%)
• Reported ROE at 7.4% ( 140bps)Underlying ROE at 8.1% ( 70bps)
• Dividend payout at 30%
O
P
P
P
O
14
FY21 Outlook
FY2020 Results – Investor Presentation15
Guidance
• Outlook is uncertain due to COVID-19 and MCO
• MFRS9 accounting impact from BNM’s loan moratorium
• Weaker asset quality expected
• Further OPR cuts and NIM compression
• Positive on fixed income trading
01
• Exercise credit vigilance
• Proactively supporting our customers
• Maintain sound capital and liquidity positions
• Managing cost tightly, BET2.0 launched
• Supporting our staff and our communities
02
Expectations
FY21 Agenda
GCFO PRESENTATIONJamie Ling
Financial Overview
FY20 Scorecard
17 - 29
30
Q4FY20 Financial overview
FY2020 Results – Investor Presentation17
Financial Overview
Q4FY20 Results (QoQ)
• Income down 10% to RM989mil:
- NII at RM704mil, down 2%, NIM of 1.95% (Q3FY20: 2.02%)
- NoII at RM285mil, impacted by volatile fixed income trading
• Expenses lower at RM501mil. CTI at 50.7% (Q3FY20: 50.0%)
• PBP decreased 12% to RM488mil
• Higher net impairment of RM203mil, mainly due to macro provision of RM167mil
• Reported PATMI at RM248mil (excluding macro provisions, PATMI was RM375mil)
1
2
3
Capital
• Well capitalised
• 30% dividend payout ratio
• Adequate loss absorption capacity (based on credit stress test ranges)
Liquidity & Funding
• Highly liquid (FHC LCR of 158.2%, LDR 94.9%)
• NSFR for all banking entities above 100%
Q4FY20 Q3FY20 QoQ Change FY20 FY19 YoY Change
CTI 50.7% 50.0% 70bps 49.9% 54.3% 440bps
NIM 1.95% 2.02% 7bps 1.94% 1.89% 5bps
ROE 5.4% 8.3% 290bps 7.4% 8.8% 140bps
EPS1 8.24 sen 12.71 sen 4.47 sen 44.64 sen 50.03 sen 5.39 sen
FY20 Performance summary – P&L
FY2020 Results – Investor Presentation18
Financial Overview
1. Basic Earnings Per Share
Q4FY20 Q3FY20 QoQ Change FY20 FY19 YoY Change
Total Income 989 1,105 10% 4,227 3,922 8%
Expenses 501 552 9% 2,108 2,131 1%
PBP 488 552 12% 2,119 1,792 18%
Net (Recovery) / Impairment
203 57 >100% 336 (304) >100%
PATMI 248 382 35% 1,341 1,505 11%
P&L(RM’ mil)
FinancialIndicators
12.0% Q4FY20 Q3FY20 QoQ Change FY20 FY19 YTD Change
FHC CET1 12.4% 12.2% 28bps 12.4% 11.9% 55bps
FHC Tier 1 12.4% 12.2% 28bps 12.4% 11.9% 55bps
FHC Total Capital 15.8% 15.6% 17bps 15.8% 15.4% 37bps
FY20 Performance summary – balance sheet
FY2020 Results – Investor Presentation19
Financial Overview
Q4FY20 Q3FY20 QoQ Change FY20 FY19 YTD Change
Gross Loans 107.2 104.5 3% 107.2 101.8 5%
GIL 1.73% 1.71% 2bps 1.73% 1.59% 14bps
LLC1 93.4% 105.2% 1180bps 93.4% 114.0% 2060bps
Customer Deposits 113.0 105.7 7% 113.0 106.9 6%
CASA 28.8 24.8 16% 28.8 24.9 16%
Balance Sheet(RM’ bil)
Capital Indicators2
1. Includes regulatory reserves2. After deducting proposed dividends
Unpacking the normalised items
FY2020 Results – Investor Presentation20
Underlying
ROE – Reported 7.0% 8.8% 1.8% 7.4% 1.4%
ROE - Underlying 7.3% 7.4% 0.1% 8.1% 0.7%
FY18 FY19 YoY Change FY20 YoY Change
Income - Reported 3,979 3,922 1% 4,227 8%
Foreclosed properties disposal gain 45 22 - - -
Investment share revaluation 42 - - - -
Income - Underlying 3,892 3,900 ≈ 4,227 8%
Normalised P&L (RM’ mil)
Expenses - Reported 2,421 2,131 12% 2,108 1%
Retail operational loss 47 - - - -
MSS cost 146 - - - -
Expenses – Underlying 2,228 2,131 4% 2,108 1%
Normalised ratios (RM’ mil)
PATMI - Reported 1,132 1,505 33% 1,341 11%
PATMI - Underlying 1,202 1,273 6% 1,468 15%
PBP – Reported 1,558 1,792 15% 2,119 18%
PBP - Underlying 1,664 1,769 6% 2,119 20%
CTI – Reported 60.8% 54.3% 6.5% 49.9% 4.4%
CTI – Underlying 57.2% 54.6% 2.6% 49.9% 4.7%
Impairment – Reported 16 (304) >100% 336 >100%
Macro provisions - - - 167 -
Gain on Retail debt sale - (285) - - -
Impairment - Underlying 16 (19) >100% 169 >100%
642 648 661 629 669 680 721 704
372 359 286 326395 389
383285
1,014 1,007947 955
1,065 1,0691,105
989
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Net Interest Income Non-interest Income
2,485 2,580 2,774
1,4951,342
1,453
3,979 3,9224,227
FY18 FY19 FY20
Broad-based income growth
FY2020 Results – Investor Presentation21
Income
1. Foreclosed properties disposal gain2. Refer to page20 for details on normalised items
221
RM’ mil
Business SegmentsQ4FY20 Q3FY20 QoQ Change FY20 FY19 YoY Change
(RM’ mil)
Wholesale Banking 284 317 10% 1,237 1,076 15%
Investment Banking 81 85 5% 305 242 26%
Retail Banking 354 386 8% 1,466 1,449 1%
Business Banking 96 94 2% 366 323 13%
Group Funding & Others 85 87 2% 268 230 17%
Total Income – Banking 900 968 7% 3,643 3,321 10%
General Insurance 10389
133137
23% 35%
594584
589602
1% 3%
Life Insurance (14) 4 >100% (10) 12 >100%
Total Income 989 1,105 10% 4,227 3,922 8%
3,892 3,900 4,227
Underlying
872 222
501 502
434
355
536 543 552
488
348 348 350
460
391
320
382
248
8.3% 8.2% 8.1%
10.7%8.8%
7.0%8.3%
5.4%
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
PBP PATMI ROE
Improved operating leverage
FY2020 Results – Investor Presentation22
PBP & PATMI
RM’ mil
Business SegmentsQ4FY20 Q3FY20 QoQ Change FY20 FY19 YoY Change
(RM’ mil)
Wholesale Banking 202 241 16% 934 793 18%
Investment Banking 33 37 12% 119 69 73%
Retail Banking 129 171 24% 601 608 1%
Business Banking 61 57 7% 221 196 13%
Group Funding & Others 56 (4) >100% (2) (127) 98%
PBP – Banking 481 501 4% 1,873 1,539 22%
General Insurance 217
4751
55% 86%
256246
240252
7% 3%
Life Insurance (14) 4 >100% (10) 12 >100%
PBP 488 552 12% 2,119 1,792 18%
2172
1. Foreclosed properties disposal gain2. Retail debt sale gain3. Macro provisions4. Refer to page20 for details on normalised items
1,6641,792
2,119
1,132
1,505
1,341
7.0%8.8%
7.4%
FY18 FY19 FY20
1,202
1,273
1,4681,5582324
704
1273
151
1274221
224
1064 1,769
1,505
1,341
194111 23
162
640
14
P&L walk
FY2020 Results – Investor Presentation23
Group P&L
YoY Growth 8% 8% 8% 1% 18% >100% 15% 33% 9% 15% 11%
RM’ milNet Interest
IncomeNon-Interest
IncomeTotal
IncomeExpenses PBP
(Recovery) /Impairment
PBT Tax & Zakat PAT MI PATMI
FY20 2,774 1,453 4,227 2,108 2,119 336 1,783 330 1,453 112 1,341
FY19 2,580 1,342 3,922 2,131 1,792 (304) 2,095 492 1,603 98 1,505
NIM: 1.94%
NoII%: 34.4%
CTI: 49.9%
GIL: 1.73%
EffectiveTax Rate:
18.3%78%
74%
Positive growth in FY20 Contraction in FY20 Conventional PATMI Islamic PATZ
22%
26%
5.08% 5.07% 5.03% 4.92% 4.93% 4.83% 4.84%4.63%
3.39% 3.47% 3.46% 3.45% 3.37% 3.22% 3.11% 2.96%
2.02% 1.91% 1.88% 1.78% 1.87% 1.91% 2.02% 1.95%
1.69% 1.60% 1.57% 1.47% 1.56% 1.61% 1.73% 1.67%
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Gross Yield COF NIM Net Spread
4.94% 5.02%4.81%
3.26%3.45%
3.16%
2.00% 1.89% 1.94%
1.68% 1.58% 1.64%
FY18 FY19 FY20
189 194
3.9 3.7
7.1
0.4
0.2 0.1 0.4 1.4
8.0
FY19 WholesaleBanking
InvestmentBanking
RetailBanking
BusinessBanking
Others Asset volume& mix
Interbank / GroupFunding
Depositsrates
Depositsmix
FY20
NIM improved YoY despite OPR reductions
FY2020 Results – Investor Presentation24
NIM Trend
Net Interest Margin (NIM) Movement
NIM
Funding + DepositsAssets
Positive growth in FY20 Contraction in FY20
NIM movement:QoQ : 7bpsYoY : 5bps
1. Net spread equals to Gross Yield less COF
1
101.8
107.2
1.4 0.7
2.4
0.1 0.9
0.8
1.3
0.0 2.2
FY19 MidCorp Large Corp &Others
InvestmentBanking
Mortgage Auto Finance Cards Retail SME Others BusinessBanking
FY20
Diversified loans growth
FY2020 Results – Investor Presentation25
Gross Loans Movement (RM’ bil)
Loans
YTD Growth 9% 4% 1% 7% 14% 3% 35% 37% 13% 5%
Composition 15% 18% 2% 34% 12% 2% 3% 3% 11% 100%
Retail 4%
1. Annualised2. Based on BNM data from Mar’19 to Mar’203. Based on BNM data and in accordance with AMMB’s financial period
Wholesale 6%
Breakdown by rate sensitivity:Fixed rate – 24%Variable rate –76%
Breakdown by customers type:Retail – 55%Non-retail – 45%
Breakdown by concept:Islamic – 30%Conventional – 70%
Gross loans trend
Positive growth in FY20 Contraction in FY20
YTD Growth Industry
5% 4%2
6% 5%3
6% 4%3
ROA1: 0.93%
RoTA1: 0.94%
Ex. Auto : 9%
96.3
101.8
107.2
FY18
FY19
FY20
208 200
392
142 187 215
898
-
197 247
823
-
IndividualAllowance
ECL Stage 3 /CP - Defaulted
ECL Stage 1 & 2 /CP - Non defaulted
Model Risk Adjustment
FY18 FY19 FY20
(303.8)
168.8 336.1
43.7
151.9
493.6167.3
185.6
31.1
FY19 ECLStage 1 & 2
ECLStage 3
IndividualAllowance
Recoveries Others FY20beforemacro
provision
Macroprovision
FY20
776 649 681 728 924
925 1,000 749 676 646
40 209 217 283
1,701 1,689 1,638 1,621 1,853
1.94% 1.86%1.70%
1.59%1.73%
FY16 FY17 FY18 FY19 FY20
Retail Wholesale
Business GIL Ratio
81.2% 79.7%100.5% 114.0%
93.4%
Credit costs normalised and macro provisions
FY2020 Results – Investor Presentation
Impairment Balance (Balance Sheet) Credit Cost (%) and New Impaired Loans Formation (RM’ mil)
Net Impairment (RM’ mil) Gross Impaired Loans, GIL and LLC Ratios
Asset Quality
1. Includes regulatory reserve of RM703m (FY18), RM450m (FY19) and RM388m (FY20)
AmBank Group FY16 FY17 FY18 FY19 FY20FY20
(excl. macro provision)
Credit cost3 (%) -0.18% -0.19% 0.00% -0.30% 0.30% 0.14%
Credit cost3
(excl. recoveries) (%)0.46% 0.56% 0.47% 0.53% 0.62% 0.47%
New Impaired LoansFormation (RM’ mil)
1,418 1,330 1,162 1,123 1,491 N/A
RM’ mil
1Loan Loss Coverage
Positive P&L impact in FY20 Negative P&L impact in FY20
Non-performing / impaired assets
Performing assets
Stage 2
Stage 1283
FY18: 943FY19: 1,301FY20: 1,268
Total Provisions
RM’ mil
308
2. Includes macro provision
2
590
540
26
Q1FY20: (32.5)Q2FY20: 109.1Q3FY20: 56.9Q4FY20: 202.6
3. Includes loan loss allowances only
42%
50%
4%4%
Credit quality
FY2020 Results – Investor Presentation27
Impaired Loans by Sector Loans by Internal Risk Grade
Asset Quality
SectorMar’20
CompositionMar’19
YTD Growth QoQ GrowthRM’ mil RM’mil
Agriculture 85 5% 1 >100% >100%
Mining and quarrying 54 3% 79 32% 4%
Manufacturing 248 13% 165 51% 1%
Construction 84 5% 23 >100% 31%
Wholesale, retail trade, hotels and restaurants
134 7% 59 >100% 5%
Transport, storage and communication
81 4% 73 10% 10%
Real Estate 314 17% 504 38% 1%
Business activities 34 2% 15 >100% 1%
Education and health 25 1% 11 >100% 40%
Household of which: 794 43% 691 15% 2%
- Residential Properties 496 27% 375 32% 5%
- Transport Vehicles 157 8% 194 19% 4%
- Others 141 8% 122 16% 2%
Total 1,853 100% 1,621 14% 3%
82%
15%
1% 2%
57%36%
5%
2%
Oil & Gas:Approx. 2% of
Total Gross Loans
Real Estate:Approx. 7% of
Total Gross Loans
Construction:Approx. 4% of
Total Gross Loans
8.3
8.3
7.7
FY18
FY19
FY20
1.8
1.6
2.3
FY18
FY19
FY20
3.7
4.4
4.7
FY18
FY19
FY20
RM’ bil
RM’ bil
RM’ bil
Strong ~ Very Strong Satisfactory ~ Moderate Marginal ~ Substandard Impaired
11.3 11.4 11.7 11.4 11.6 11.8 12.2 13.0
9.5 10.6 10.413.4
11.5 11.612.5
15.820.8
22.0 22.1
24.923.1 23.4
24.8
28.821.1%21.8%
20.7%
23.3% 22.5% 22.8%23.4%
25.5%
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Retail CASA Non-Retail CASA CASA Composition (%)
41.3 42.9 40.0 40.1 38.6 35.3 34.0 32.5
11.3 11.4 11.7 11.4 11.611.8 12.2 13.0
36.6 35.9 44.7 42.0 41.0 44.1 47.0 51.7
9.5 10.610.4 13.4
11.5 11.6 12.515.898.6 100.8
106.8 106.9102.8 102.7
105.7
113.0
5.5% 5.5% 5.7% 5.5%
5.3% 5.3% 5.4%
5.7%
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Retail FD Retail CASA
Non-Retail FD Non-Retail CASA
AmBank Group Deposits Market Share (%)
Highly liquid
FY2020 Results – Investor Presentation28
Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%)
Deposits
1. Based on BNM data from Mar’19 to Mar’202. Based on BNM data and in accordance with AMMB’s financial period
Retail DepositMix
53.3% 53.8% 48.4% 48.2% 48.9% 45.8% 43.7% 40.2%
Customer deposits trend CASA trendYTD Growth Industry
6% 2%1
12% 5%2
2% 5%2
YTD Growth Industry
16% 10%1
22% 3%2
3% 6%2
1
Retail CASAMix
54.2% 51.6% 52.8% 46.0% 50.1% 50.3% 49.3% 45.1%
113.0
106.9
95.8
FY20
FY19
FY18
28.8
24.9
20.4
FY20
FY19
FY18
11.3% 11.6% 11.1% 11.9% 12.4%
12.3% 12.5%
16.1% 16.3%
13.6%15.4% 15.8%
FY16 FY17 FY18 FY19 FY20
CET 1 Tier 1 Total CAR
133.8 134.8 137.9158.8 169.2
71.2% 72.2% 72.2%
65.0% 64.4%
59.6% 59.5% 59.3% 58.4% 58.5%
FY16 FY17 FY18 FY19 FY20
Total Assets RWA/Total Assets Peers
Adequate capital levels
FY2020 Results – Investor Presentation29
Financial Holding Company CET1 Dividend Payout Ratio
RWA/Total Assets Capital Adequacy Ratios3
Capital
RM’ bil
1. Based on an average of our seven peer domestic banks as at 31 December 20192. FHC RWA/Total Assets
1
Positive growth in FY20 Contraction in FY20
3. After deducting proposed dividends and macro provision 4. Aggregated banking entities 5. FHC CET 1 and Tier 1 ratios are the same
FHCAggregated basis4
2
2
55
2
5
6
6. AmBank Group’s Insurance Holding
5.0 5.0 5.0 5.0 6.0
10.5 12.6 10.015.0
7.3
15.517.6
15.0
20.0
13.3
36%40% 40% 40%
30%
FY16 FY17 FY18 FY19 FY20
Interim Dividend (sen) Final Dividend (sen) Dividend Payout (%)
11.89%
12.64%
12.44%
1.19% 0.06%0.14%
0.24%
0.18%
0.60% 0.05% 0.05% 0.20%
FY19 Profit forFY20
Transferfrom
Reg reserveto RE
AMABHoldingsdividend
Dividendpaid
CreditRWA
MarketRWA
Operational& other
RWA
Others FY2020Before
Dividend
ProposedFinal
Dividend
FY20
FY20 Scorecard
FY2020 Results – Investor Presentation30
Guidance
Reported: 7.4%Underlying: 8.1%
49.9%
30%
12.4%
ROE
CTI
Dividend Payout
FHC CET 1
FY20 ActualFY20 Guidance
~ 8.0% - 8.5%
≤ 50.0%
45% - 50%
11.5% ± 1%
O
P
P
P
O
Thank You
Group Performance
1,342
1,453 2
98
70 5 10 7
22
20 22 16
NoII growth underpinned by strong trading gains and higher IB fee income
FY2020 Results – Investor Presentation33
NoII
YoY Growth 100% 1% 75% 36% 5% 12% 13% 2% >100% 52% 8%
RM’ milForeclosed Properties
Corporate Banking
Group Treasury
& Markets
Investment Banking &
Fund Mgmt
WealthMgmt
Other RetailBusiness Banking
General Insurance
Life Insurance
Group Funding &
OthersNoII
FY20 - 159 228 265 92 151 89 463 (10) 15 1,453
FY19 22 158 130 195 88 171 79 456 12 31 1,342
FY19 NoII FY20 NoIIPositive growth in FY20 Contraction in FY20
Q1FY20: 395Q2FY20: 389Q3FY20: 383Q4FY20: 285
NoII
2,421
2,131 2,108
60.8%
54.3%49.9%
FY18 FY19 FY20
513 506 513600
529 526 552501
50.6% 50.2%54.1%
62.8%
49.7% 49.2% 50.0% 50.7%
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Remain disciplined in managing costs
FY2020 Results – Investor Presentation34
Expense Growth Driver Expense and CTI Trend
Expenses
Positive P&L impact in FY20 Negative P&L impact in FY20
Business SegmentsQ4FY20 Q3FY20 QoQ Change FY20 FY19 YoY Change
(RM’ mil)
Wholesale Banking 83 76 9% 303 283 7%
Investment Banking 49 48 1% 187 174 7%
Retail Banking 225 215 4% 865 841 3%
Business Banking 35 37 6% 145 127 14%
Group Funding & Others 29 90 68% 270 357 24%
Expenses – Banking 420 466 10% 1,770 1,782 1%
Insurance (General, life, takaful)
81 86 5% 338 349 3%
Expenses 501 552 9% 2,108 2,131 1%
RM’ mil
RM’ mil
2,131
2,108
10
15
612
FY19 Staff Cost Compliance &Governance
MFRS 16 Impact Others FY20
43.3 44.137.6
50.0 44.6
1.05%1.09%
0.91%1.08%
0.93%
FY16 FY17 FY18 FY19 FY20
EPS ROA
58.8% 57.4% 60.8%54.3%
49.9%
0.8% -0.6%
12.0%
-12.0%
-1.1%
FY16 FY17 FY18 FY19 FY20
CTI Expenses Growth
3,696 3,766 3,979 3,922 4,227
36%39% 38%
34% 34%
FY16 FY17 FY18 FY19 FY20
Total Income Non-interest Income %
1,302 1,325 1,132
1,505 1,341
8.8% 8.5%7.0%
8.8%7.4%
FY16 FY17 FY18 FY19 FY20
PATMI ROE (%)
Yearly performance
FY2020 Results – Investor Presentation35
Cost to Income Ratio and Expenses Growth (%) ROA (%) and EPS (Basic)
PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%)
FY2020 Results
PATMI: ROE:CAGR FY16-FY20: 0.7% CAGR FY16-FY20: 0.4%YoY Growth 10.9% YoY Growth 1.4%
Total IncomeCAGR FY16-FY20: 3.4%YoY Growth 7.8%
CTI: Expenses:CAGR FY16-FY20: 2.2% CAGR FY16-FY20: 0.8%YoY Growth 4.4%
ROA: EPS:CAGR FY16-FY20: ≈ CAGR FY16-FY20: 0.7%YoY Growth 0.2% YoY Growth 10.8%
1
1. AnnualisedSource : BNM, financial statements
Retail Banking 24%
Wholesale Banking
58%
Investment Banking
7%
Business Banking
9%
Insurance8%
Group Funding
& Others
-6%
ReportedRM1,341mil
Corporate Banking11%
Group Treasury &
Market16%
Investment Banking
11%
Fund Management8%
Business Banking6%
Wealth Management
6%
Cards4%
Other Retail6%
Insurance31%
Others1%
Wholesale Banking
27%
Investment Banking
19%Business Banking
6%
Retail Banking
16%
Insurance & Others
32%
Non-interest income and PATMI mix
FY2020 Results – Investor Presentation36
Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY)
NoII & PATMI
61%
13%
36%
12%
75%
13%
17%
48%
≈
1%
6%
25%
8%
6%
45%
62%
6%
1
1. After deducting share of minority interests
11%
5%
3%
Non-interest income
RM1,453 mil
52%
Total impairments by category (RM’ mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 QoQ Change FY19 FY20 YoY Change
ECL Stage 1 & 2 / CP – Non defaulted1 (71) (9) 50 (14) (128) (38) (29) 116 >100% (44) (79) 79%
ECL Stage 3 / CP – Defaulted 136 144 138 131 163 182 132 116 12% 549 593 8%
Individual Provisions 46 34 (17) (17) 9 123 44 21 53% 45 197 >100%
Recoveries (117) (134) (215) (371) (93) (120) (77) (54) 30% (837) (344) 59%
Other Provisions2 13 (24) (7) 1 15 (37) (13) 4 >100% (17) (31) 84%
Total net impairments / (writeback) 7 11 (51) (270) (32) 109 57 203 >100% (304) 336 >100%
Total impairments by divisions (RM’ mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 QoQ Change FY19 FY20 YoY Change
Wholesale Banking (39) (12) (142) (32) (106) 48 1 (2) >100% (224) (60) 73%
Investment Banking (5) 1 (1) (1) (0) 1 (8) 2 >100% (7) (6) 17%
Retail Banking 42 19 51 (251) 59 37 49 42 14% (139) 187 >100%
Business Banking 2 1 12 16 14 27 21 (5) >100% 31 57 86%
Group Funding & Others 5 3 32 (3) (1) (1) (4) 168 >100% 37 162 >100%
General Insurance 2 (1) (2) 0 2 (2) (2) (2) 9% (1) (4) >100%
Total net impairment / (writeback) 7 11 (51) (270) (32) 109 57 203 >100% (304) 336 >100%
GIL Ratio (%) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 QoQ Change YoY Change
Wholesale Banking 2.54% 2.27% 2.18% 2.01% 1.90% 2.06% 1.77% 1.81% 4bps 20bps
Investment Banking 0.12% 0.12% 0.13% 0.10% 0.11% 0.11% 0.11% 0.11% ≈ 1bps
Retail Banking 1.26% 1.32% 1.32% 1.28% 1.44% 1.51% 1.54% 1.57% 3bps 29bps
Business Banking 2.41% 2.53% 1.68% 2.18% 2.39% 2.52% 2.73% 2.51% 22bps 33bps
Group 1.77% 1.72% 1.62% 1.59% 1.66% 1.77% 1.71% 1.73% 2bps 14bps
Industry 1.59% 1.53% 1.45% 1.48% 1.58% 1.61% 1.52% 1.59% 7bps 11bps
Impairments
FY2020 Results – Investor Presentation37
Net Impairment / (Writebacks) and GIL Ratio
Asset Quality
1. Includes macro provision 2. Includes foreclosed property, trade & sundry debtors and provision for contingencies
LoansComposition 3% 2% 13% 1% 4% 7% 3% 5% 7% 2% 53% ≈ 100%
YTDGrowth 12% 47% 17% 52% 6% 14% 2% 22% 7% 38% 1% 76% 5%
Loans by sector vs. industry
FY2020 Results – Investor Presentation38
Industry (RM’ bil)
AmBank Group (RM’ bil)
Loans
Source : BNM, financial statements
LoansComposition 2% 1% 7% 1% 5% 7% 2% 7% 7% 2% 58% 1% 100%
YTDGrowth 4% 20% 9% 42% 2% 4% 5% 4% ≈ 4% 4% 10% 4%
AgricultureMining & Quarrying
ManufacturingElectricity,
Gas & WaterConstruction
Wholesale, Retail, Hotels &
Restaurant
Transport, Storage & Com
Finance, Insurance, & Biz Act
Real EstateEducation &
HealthHousehold Others Total Loans
2.9 2.5 13.7 0.74.7 7.8
2.7 6.07.7 2.2
56.3
0.1
107.2Mar-20
36.4 10.0 124.1
17.8 92.6 131.8 41.2 119.8 115.0
42.7
1,030.2
22.0
1,783.6
Mar-20
Divisional Performance
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Disbursement Repayment
182 173
244
184
259
165188
161
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Wholesale Banking
Coverage42%
Group Treasury & Markets
35%
Transaction Banking
23%
Wholesale Banking Coverage
34%
Group Treasury
& Markets
58%
Transaction Banking
8%Total Assets
RM88.3b
Wholesale Banking
FY2020 Results – Investor Presentation40
Total Income (YoY Movement) and Total Assets by Line of Business PAT Trend (RM’ mil)
Wholesale Banking
Corporate Banking Loan Disbursement and Repayment
Total IncomeRM1,237 mil
2%
81%
QoQ Growth: 14%YoY Growth: 1%
8%
FY19: 783 FY20: 772
Wholesale Banking
FY2020 Results – Investor Presentation41
Balance Sheet (RM’ mil/%)
Income Statement
Key Ratios
Wholesale Banking
YoY Growth 11% 25% 15% 7% 18% 73% 2% 5% 1%
RM' milNet Interest
IncomeNon-Interest
IncomeTotal Income Expenses PBP Impairment PBT Tax PAT
FY20 850 387 1,237 303 934 (60) 994 222 772
FY19 767 309 1,076 283 793 (224) 1,018 235 783
FY20 FY19 YoY Change
Gross Loans / Financing 35,596 33,519 6%
Gross Impaired Loans 644 675 4%
Customer Deposits 60,021 49,002 22%
CASA 12,966 11,411 14%
FY20 FY19 YoY Change
GIL Ratio 1.81% 2.01% 20bps
CTI 24.5% 26.3% >100bps
Loan Loss Coverage 35.4% 62.3% >100bps
ROA 1.00% 1.09% 9bps
FY20 PAT FY19 PAT Positive growth in FY20 Contraction in FY20
36.2 37.135.7
40.542.1
FY16 FY17 FY18 FY19 FY20
5.5%
5.0%4.9%
4.8%
5.3%
3.8%
3.6%3.4%
3.6%3.8%
2016 2017 2018 2019 1Q20
Trading Value Trading Volume
Investment Banking
FY2020 Results – Investor Presentation42
Fund Management – AUM (RM’ bil)
League Table Market Share of Value and Volume Traded on Bursa (KLSE)1
Investment Banking
Market Share1 As At 31 Mar 2020(%)
Rank2
DCM (Overall MYR Bonds) 13.3% 2
Islamic Sukuk 17.9% 2
Unit Trust 8.2% 5
Stockbroking 5.3% 6
M&A 2.8% 3
Fund Raising 4.4% 8
1. Calendar Year data2. Comparing rank movement with 31 December 2019
Investment Banking
FY2020 Results – Investor Presentation43
Balance Sheet (RM’ mil/%)
Income Statement
Key Ratios
Investment Banking
YoY Growth 16% 36% 26% 7% 73% 17% 65% 80% 61%
RM' milNet Interest
IncomeNon-Interest
IncomeTotal Income Expenses PBP Impairment PBT Tax PAT
FY20 40 265 305 187 119 (6) 124 26 98
FY19 48 195 242 174 69 (7) 75 15 61
FY20 FY19 YoY Change
Gross Loans / Financing 1,583 1,592 1%
Gross Impaired Loans 2 2 8%
Customer Deposits 833 744 12%
CASA 203 123 66%
FY20 FY19 YoY Change
GIL Ratio 0.11% 0.10% 1bps
CTI 61.1% 71.7% >100bps
Loan Loss Coverage 267.5% 100.2% >100bps
ROA 4.28% 2.23% >100bps
Average AUM 52,972 47,311 12%
FY20 PAT FY19 PAT Positive growth in FY20 Contraction in FY20
75
114
98
281
71
8692
66
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Auto13%
Mortgage15%
Cards17%
Personal Financing2%
Deposits37%
Wealth6%
Retail SME9%
Others1%
Auto 22%
Mortgage62%
Cards 5%
Retail SME6%
Others5%
Total loansRM58.9 bil
Retail Banking
FY2020 Results – Investor Presentation44
Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil)
Retail Banking
Total IncomeRM1,466 mil
QoQ Growth: 28%YoY Growth: 45%
8%
8%
6%
18%
22%
14%
7%
15%
FY19: 568 FY20: 315
675 702
866
677
799 818882
954
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
2,688 2,764 2,629 2,625 2,553 2,594 2,473 2,323
5351
44
38 37 36 36 35
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Merchant volume (RM'mil)
Merchants in force ('000)
-
200
400
600
-
20
40
60
80
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Car
ds
in c
ircu
lati
on
Ne
w c
ard
s is
sue
d
New cards issued ('000) Cards in circulation ('000)
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Mortgage Auto Finance
Retail Banking
FY2020 Results – Investor Presentation45
Credit Cards Mortgage and Auto Finance Quarterly Disbursements
Wealth Sales (RM’ mil) Merchant Volume
Retail Banking
QoQ Growth: 6% YoY Growth: 7%
QoQ Growth: 1% YoY Growth: 6%QoQ Growth: 8%YoY Growth: 18%
Mortgage QoQ Growth: 2%Mortgage YoY Growth: 19%Auto Finance QoQ Growth: 31%Auto Finance YoY Growth: 11%
FY20: 3,453
FY20: 9,943
FY19: 2,919
FY19: 10,706
Retail Banking
FY2020 Results – Investor Presentation46
Balance Sheet (RM’ mil/%)
Income Statement
Key Ratios
Retail Banking
RM' milNet Interest
IncomeNon-Interest
IncomeTotal Income Expenses PBP Impairment PBT Tax PAT
FY20 1,223 243 1,466 865 601 187 414 99 315
FY19 1,190 259 1,449 841 608 (139) 747 179 568
FY20 FY19 YoY Change
Gross Loans / Financing 58,892 56,865 4%
Gross Impaired Loans 924 728 27%
Customer Deposits 45,456 51,520 12%
CASA 13,002 11,448 14%
FY20 FY19 YoY Change
GIL Ratio 1.57% 1.28% 29bps
CTI 59.0% 58.0% 100bps
Loan Loss Coverage 88.6% 112.4% >100bps
ROA 0.59% 1.01% 42bps
Average AUM 1,473 1,379 7%
YoY Growth 3% 6% 1% 3% 1% >100% 45% 45% 45%
FY20 PAT FY19 PAT Positive growth in FY20 Contraction in FY20
AmBank Islamic
branches
ATMs & CRMs @ 7-Eleven
Electronicbanking centres
Internet &mobile banking
AmGeneral AmMetlifeAmInvestment
Bank
AmCardServices
MBC3
Distribution Channels
FY2020 Results – Investor Presentation47
Retail Banking
Branches ATM CRM2 Regional Offices
Perlis 1 3 1
Kedah 6 19 6
Pulau Pinang 14 44 15 2
Perak 18 40 21 1
Selangor 36 179 41 3
Kuala Lumpur 23 79 25 3
Putrajaya 1 3 2
Negeri Sembilan 7 37 8
Melaka 6 26 8 1
Johor 21 69 30 1
Pahang 8 21 11 1
Terengganu 2 14 4
Kelantan 2 14 3
Sabah 9 35 13 1
Labuan 1 3 1
Sarawak 15 55 21 1
170 641 210 14
1. Data shown as at 31 March 2020 2. CRM – Cash Recycler Machine 3. MBC – Merchant Business Centres
Other Customer Touch Points
Population Density
< 100 persons per km2
101-500 persons per km2
501-1,000 persons per km2
1,001-1,500 persons per km2
> 1,501 persons per km2
2 202 170 AmOnline 29 branches4 counters
15 branches39 agencies
6 retail broking7 branches
15
1,439 1,804 1,881 2,052 2,099 2,176 2,382 3,092
3,085 3,292 3,498
3,776 3,808 4,017 3,907
4,090 4,524
5,096 5,379
5,827 5,907 6,193 6,290
7,182
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
CASA FD
3336
2927
29
19
27
50
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Business Banking
FY2020 Results – Investor Presentation48
Customer Deposits (RM’ mil)
Gross Loans (RM’ mil) PAT Trend (RM’ mil)
Business Banking
QoQ Growth: 81%YoY Growth: ≈YoY Growth: 13%
YoY Growth: 23%
FY19: 126 FY20: 126
5,934 6,364 6,833 7,523 7,607 7,898 8,264 8,607
2,060 2,219
2,222 2,441 2,462 2,527
2,585 2,640
7,994 8,583
9,055 9,964 10,069 10,425
10,85011,248
Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20
Non-trade Trade
Business Banking
FY2020 Results – Investor Presentation49
Balance Sheet (RM’ mil/%)
Income Statement
Key Ratios
Business Banking
YoY Growth 14% 13% 13% 14% 13% 86% 1% 2% ≈
RM' milNet Interest
IncomeNon-Interest
IncomeTotal Income Expenses PBP Impairment PBT Tax PAT
FY20 277 89 366 145 221 57 164 38 126
FY19 244 79 323 127 196 31 165 39 126
FY20 FY19 YoY Change
Gross Loans / Financing 11,248 9,964 13%
Gross Impaired Loans 283 217 30%
Customer Deposits 7,182 5,827 23%
CASA 3,092 2,052 51%
FY20 FY19 YoY Change
GIL Ratio 2.51% 2.18% 33bps
CTI 39.7% 39.4% 30bps
Loan Loss Coverage 46.2% 41.7% >100bps
ROA 1.21% 1.47% 26bps
FY20 PAT FY19 PAT Positive growth in FY20 Contraction in FY20
FY20 FY19 YoY Change
GIF Ratio 1.91% 1.95% 4bps
CTI 34.0% 38.0% >100bps
Financing Loss Coverage 74.2% 103.2% >100bps
ROA 0.83% 0.80% 3bps
FY20 FY19 YoY Change
Gross Financing 32,274 29,330 10%
Gross Impaired Financing 615 573 7%
Customer Deposits 34,672 31,140 11%
CASA Deposits 10,578 8,969 18%
Islamic Banking
FY2020 Results – Investor Presentation50
Balance Sheet (RM’ mil/%)
Income Statement
Key Ratios
Islamic Banking
RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ
FY20 909 309 600 155 445 93 352
FY19 838 319 519 97 422 98 324
YoY Growth 8% 3% 16% 60% 5% 5% 8%
FY20 PATZ FY19 PATZ Positive growth in FY20 Contraction in FY20
82% 81% 79% 79% 79%
18% 19%21% 21% 21%
1,567 1,5801,474
1,527 1,576
FY16 FY17 FY18 FY19 FY20
Motor Non-Motor
64% 63% 57% 58% 60%
96% 97%92% 92% 93%
FY16 FY17 FY18 FY19 FY20
Loss Ratio Combined Ratio
194192
282
242
260
180170
246
198
228
FY16 FY17 FY18 FY19 FY20
PBT PAT
General Insurance
FY2020 Results – Investor Presentation51
Gross Premium Mix and Growth (RM’ mil)
Loss Ratio and Combined Ratio PBT and PAT (RM’ mil)
General Insurance
2. Includes write-back of prior year tax provisions
2
YoY PBT Growth: 8%YoY PAT Growth: 15%
YoY GWP Growth: 3%YoY Motor Growth: 4%
YoY Non-motor Growth: 2%
1
1. Includes motor PA
Insurance and Group Funding & Others
FY2020 Results – Investor Presentation52
Income Statement – Group Funding & Others
Income Statement – Insurance (General, Life & Takaful)
Insurance & Others
RM'mil Total Income Expenses PBP Impairment PBT Tax PAT
FY20 584 338 246 (4) 250 32 218
FY19 602 349 253 (1) 254 44 210
RM'mil Total Income Expenses PBP Impairment PBT Tax PAT MI PATMI
FY20 268 270 (2) 162 (164) (88) (76) 112 (189)
FY19 230 357 (127) 37 (164) (18) (146) 98 (243)
YoY Growth 3% 3% 3% >100% 2% 27% 4%
YoY Growth 17% 24% 98% >100% ≈ >100% 47% 15% 22%
FY20 PAT FY19 PAT Positive growth in FY20 Contraction in FY20
Shareholding structure
FY2020 Results – Investor Presentation53
Corporate Structure
AMMB Holdings Berhad
23.8%1 AmCorp 13.0% EPF 10.0% PNB 9.1%2 Others 44.1%
100% AmBank (M) Berhad
100% AmInvestment Group Berhad
100% AmInvestment Bank Berhad
FY16 FY17 FY18 FY19 FY20
26% 26% 23% 26% 24%
1.ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited2.Based on amalgamation of shares held by funds managed by PNB3.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% AmGeneral Holdings Berhad
~50% AmMetLife Takaful Berhad3
~50% AmMetLife Insurance Berhad3
100% AmGeneral Insurance Berhad
49%
~50%
~50%
As at 31 March 2020
Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful
2.56 2.70 2.80 3.00 3.15 3.20 3.30 3.40 3.40 3.50 3.50 3.83 4.10 4.20 4.20 4.254.80
AFFIN CITI TA JP MACQ HLIB RHB UOB PIVB KAF MBB CIMB CLSA KEN MIDF ADBS NOMURA
Credit ratings, target price and recommendations
FY2020 Results – Investor Presentation54
Ratings & Target Price
Credit Ratings
Target Price and Recommendations
Buy / Outperform / Overweight / AddAverage target priceSell / Underperform / Fully valued / Reduce / Underweight
Hold / Neutral / Market perform / Equalwt / In line Source Bloomberg, Research House Report as at 31 March 2020
P/EPS : 5.81 Closing Price: RM 3.00 Average TP : RM 3.52
P/BV : 0.49 Market Cap: RM 9.02 bil Buy : 8 (47%)
Hold : 6 (35%)
Sell : 3 (18%)
Ave. TP/ Ave. CP : 1.09x
FY20Ratings
AMMB AmBank (M) AmBank Islamic AmInvestment
RAM LT: AA2, ST: P1 Outlook: Stable
LT: AA2, ST: P1Outlook: Stable
LT: AA2, ST: P1 Outlook: Stable
LT: AA2, ST: P1 Outlook: Stable
S&P LT: BBB+, ST: A-2Outlook: Stable
Moody’s LT: A3, ST: P-2Outlook: StableBCA: baa2Adj BCA: baa2
RH1 RH2
Glossary & Disclaimer of warranty and limitation of liability
FY2020 Results – Investor Presentation55
Glossary & Disclaimer
Reported PerformanceReported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market
Growth DefinitionQoQ growth refers to Q4FY20 vs Q3FY20YoY / YTD growth refers to FY20 vs FY19
Disclaimer on rounding differencesNumbers may not add up due to rounding
Disclaimer on restatement of comparativesThe comparatives for business segments’ financials have been restated to reflect current business realignment
The information has been prepared by AMMB Holdings Berhad (AmBank Group or the Group) for information purpose and is believed to be correct at the time of presentation. No representationor warranty, express or implied, is given by or on behalf of AMMB Holdings as to the accuracy and completeness of the information or opinion contained in this presentation.
This presentation does not purport to contain all information that may be required to evaluate AmBank Group or its financial position and should not be construed as an offer or recommendationto buy or sell securities. Neither does this presentation to form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.
Certain statements in this presentation may contain forward-looking statements. These forward-looking statements are based on current beliefs and expectations of the Group and are subject tosignificant risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
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 thefinancial institutions under AMMB Holdings.
For further information, visit www.ambankgroup.com;
or contact
Chelsea Cheng Chuan Shing
Head, Group Finance – Investor Relations
Tel : +603 2036 1425
Fax: +603 2070 8262
Email: [email protected] / [email protected]
Soh Yee Tyng
Vice President, Group Finance – Investor Relations
Tel : +603 2036 1435
Fax: +603 2070 8262
Email: [email protected]