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H1FY2016 Results, Investor Presentation 19 November 2015
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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%32%

    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 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]3FY14 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 (

  • 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

    https://www.kurnia.com/malaysiahttps://www.kurnia.com/malaysia

  • 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: 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: [email protected] /

    [email protected]

    http://www.ambankgroup.com/mailto:[email protected]:[email protected]

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