0www.maybank.com
Investor Presentation
Financial Results2Q FY2016 and 1H FY2016 ended 30 June 2016
25 August 2016
Humanising Financial Services
1
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
2
Franchise-led growth
1H FY2016 Performance UpdateNet operating income growth of 8.7% YoY to RM 10.74 billion with net profit of RM 2.59 billion
• Revenue growth supported by higher net fund and net fee based income growth:
o Net fund based income rose 9.3% YoY as Group loans grew 4.3%
o Net fee based income increased 7.4% YoY due to higher non-interest income
growth
• Strong PPOP growth of 10.6% YoY to RM5.49 billion driven by strong income
growth of 8.7% and lower cost growth of 6.8%
1
• Improved CIR of 48.7% for 1H FY2016 from 49.5% a year ago
• Positive JAWS position of 1.9%, as income growth was faster than overheads
growth. By comparison, 1H FY2015 saw a negative JAWS position of -4.5%
Effective Cost
Management Control
• Group GIL ratio at 2.34% while Group NPL ratio was 1.32% as at Jun 2016
• Stable loan loss coverage of 70.5%, with net credit charge off rate at -80 bps YTDAsset Quality
4
• Further improvement in Group LDR of 88.5%, arising from funding-led growth in
Malaysia and Singapore
• Group LCR of 148% as at Jun 2016
• Total capital ratio at 18.99%* and CET1 capital ratio at 13.59%* as at Jun 2016
• Interim dividend of 20 sen per share.
Strong Liquidity and
Capital Positions
5
*After proposed dividend and assumption of 85% reinvestment rate. Fully loaded Group CET1 capital ratio is 13.22%
Improving loan
growth trend (QoQ)2
3
• Group loans grew 2.1% QoQ (vs -3.9% in 1Q), as loans in Malaysia increased 1.9%
(vs -1.3% in 1Q) and loans in Indonesia grew 4.1% (vs -0.2%)
3
FY2016 Headline Key Performance Indicators Improved balance sheet growth QoQ
Notes:
1Normalised to exclude the conversion effects for Singapore, Indonesia, Philippines, Greater China and Labuan (USD)
2In local currency terms
Key Performance Indicators FY2016 GuidanceQoQ Annualised YoY
1Q FY2016 2Q FY2016 1H FY2016 1H FY2016
Headline KPI
Return on Equity (annualised) 11%-12% 9.3% 7.5% 8.3% -
Other Guidance
Group Loans Growth (reported) 8%-9% (3.9)% 2.1% (3.6)% 4.3%
Group Loans Growth (normalised)1 - (1.5)% 0.9% (1.4)% 1.6%
• Malaysia 6%-7% (1.3)% 1.9% 1.1% 3.9%
• Singapore2 3%-4% (1.3)% (0.1)% (2.9)% 0.4%
• Indonesia2 11%-13% (0.2)% 4.1% 7.9% 7.1%
Group Deposits Growth (reported) 10%-11% (0.9)% 3.8% 5.8% 12.5%
Group Deposits Growth (normalised)1 - 1.2% 2.6% 7.7% 9.8%
4
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
5
P&L Summary: 1H FY2016Strong PPOP growth of 10.6% YoY to RM5.5 billion, supported by good income growth and cost management
¹Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses
* From consolidated Group numbers, Insurance and Takaful accounts for 6.3% of net fund based income and 7.8% of net fee-based income
More
details
onRM million
1H
FY2016
1H
FY2015YoY
2Q
FY2016
1Q
FY2016QoQ
2Q
FY2015YoY
s.7 Net fund based income * 7,603.4 6,958.7 9.3% 3,780.3 3,823.1 (1.1)% 3,543.3 6.7%
s.7/28/29 Net fee based income * 3,134.3 2,917.2 7.4% 1,565.6 1,568.7 (0.2)% 1,345.1 16.4%
s.6/31 Net operating income 10,737.7 9,875.9 8.7% 5,345.9 5,391.8 (0.8)% 4,888.4 9.4%
s.12 Overhead expenses (5,243.9) (4,907.9) 6.8% (2,623.7) (2,620.2) 0.1% (2,418.6) 8.5%
s.6 Pre-provisioning operating profit (PPOP) ¹ 5,493.8 4,968.0 10.6% 2,722.2 2,771.6 (1.8)% 2,469.8 10.2%
Net impairment losses (2,059.7) (693.6) >100.0% (1,181.2) (878.4) 34.5% (395.0) >100.0%
Operating profit 3,434.2 4,274.4 (19.7)% 1,541.0 1,893.2 (18.6)% 2,074.8 (25.7)%
s.31 Profit before taxation and zakat (PBT) 3,515.3 4,392.5 (20.0)% 1,584.0 1,931.3 (18.0)% 2,150.5 (26.3)%
Profit attributable to equity holders of
the Bank (Net Profit)2,586.7 3,284.9 (21.3)% 1,159.9 1,426.8 (18.7)% 1,584.5 (26.8)%
EPS - Basic (sen) 26.4 35.0 (24.6)% 11.8 14.6 (19.5)% 16.8 (29.7)%
6
Group Global Banking (GB)
9,876
5,755
3,559
63666
713
10,738
6,315
4,227
72653
721
Total Group CommunityFinancial Services
Group CorporateBanking & Global
Markets
Group InvestmentBanking
Group AssetManagement
Group Insurance &Takaful
1H FY2015
1H FY2016Group Global Banking (GB)
4,968
2,563 2,713
130 7409
5,494
2,9173,320
171(3)
392
Total Group CommunityFinancial Services
Group CorporateBanking & Global
Markets
Group InvestmentBanking
Group AssetManagement
Group Insurance &Takaful
1H FY2015
1H FY2016
Franchise-Led GrowthPPOP growth of 10.6% supported by strong growth in Group Global Banking and Group Community Financial Services
Note: Net income & PPOP for group includes expenditures of “Head Office & Others” of RM852.9 million for 1H FY2015 and RM1,303.7 million for 1H FY2016.
Net Operating Income
RM
million
+8.7%
RM
million
+17.5%
PPOP
+22.4%
+9.7% +18.8% +14.1% +1.2% (20.5)%
+10.6%
+13.8% +22.4% +32.1% (4.1)% (>100)%
7
6,959
4,227
2,373
100 0 459
7,603
4,860
2,543
143 (3)491
Total Group CommunityFinancial Services
Group CorporateBanking & Global
Markets
Group InvestmentBanking
Group AssetManagement
Group Insurance &Takaful
1H FY2015
1H FY2016 +9.3% YoY
+15.0% YoY +7.2% YoY +7.1% YoY
Franchise-Led GrowthNet fund based rose 9.3% YoY, mainly driven by growth of 15.0% in Group Community Financial Services (CFS)
Note: Net fund based income includes expenditures of “Head Office & Others” of RM199.2 million for 1H FY2015 and RM431.4 million for 1H FY2016.
Net fee based income includes expenditures of “Head Office & Others” of RM689.1 million for 1H FY2015 and RM872.3 million for 1H FY2016.
Net Fund Based Income
2,917
1,528 1,186
572
66 254
3,134
1,455 1,683
583
55 230
Total Group CommunityFinancial Services
Group CorporateBanking & Global
Markets
Group InvestmentBanking
Group AssetManagement
Group Insurance &Takaful
1H FY2015
1H FY2016 +7.4% YoY
+1.9% YoY +41.9% YoY (4.8)% YoY (16.7)% YoY (9.5)% YoY
Group Global Banking (GB)
Group Global Banking (GB)
Net Fee Based Income
RM
million
RM
million
+43.3% YoY (>100)% YoY
+8.5% YoY
+27.3% YoY
8
Group Gross Loans Growth: 30 June 2016Improved QoQ group loans growth of 2.1%, supported by growth of 4.1% in Indonesia and 1.9% in Malaysia
30 Jun
2016
31 Mar
2016
2Q vs 1Q
QoQ
31 Dec
2015
1Q vs 4Q
QoQ
30 Jun
2015YoY
Group Gross Loans 451.1 441.7 2.1% 459.4 (3.9)% 432.5 4.3%
Malaysia (RM billion) 257.3 252.6 1.9% 255.9 (1.3)% 247.6 3.9%
Community Financial Services 187.2 184.1 1.7% 183.2 ¹ 0.5% 175.3 6.8%
Global Banking 71.4 69.4 2.8% 73.3 ¹ (5.3)% 73.4 (2.8)%
International (RM billion) 186.7 182.2 2.5% 196.5 (7.3)% 179.0 4.3%
Singapore (SGD billion) 36.7 36.7 (0.1)% 37.2 (1.3)% 36.6 0.4%
Community Financial Services 19.8 19.9 (0.3)% 20.2 (1.5)% 19.1 3.9%
Global Banking 16.6 16.6 0.0% 16.8 (1.0)% 17.2 (3.4)%
Indonesia (Rupiah trillion) 119.3 114.6 4.1% 114.8 (0.2)% 111.4 7.1%
Community Financial Services 95.6 92.2 3.6% 92.4 (0.2)% 89.0 7.4%
Global Banking 23.5 22.0 6.7% 22.0 0.1% 22.2 5.8%
Other markets (RM billion) 40.7 41.4 (1.9)% 47.7 (13.1)% 44.9 (9.5)%
Investment banking (RM billion) 7.1 6.9 2.9% 7.1 (2.3)% 5.8 22.9%
¹ Re-based loan growth figures are based on adjusted 31 December 2015 position in line with migration of client accounts, implemented on 1 January 2016
9
RM billion30 June
2016
31 Mar
2016
2Q vs 1Q
QoQ
31 Dec
2015
1Q vs 4Q
QoQ30 Jun
2015YoY
Community Financial Services (reported) 187.2 184.1 1.7% 182.7 0.8% 175.3 6.8%
Community Financial Services (rebased) ¹ 187.2 184.1 1.7% 183.2 0.5% 175.3 6.8%
Consumer 149.3 147.4 1.3% 146.9 0.3% 141.4 5.6%
Total Mortgage 72.2 70.7 2.1% 69.2 2.2% 65.1 11.0%
Auto Finance 41.3 40.6 1.8% 40.8 (0.6)% 40.4 2.3%
Credit Cards 6.3 6.2 1.3% 6.4 (2.7)% 6.0 5.7%
Unit Trust 27.0 27.4 (1.7)% 28.1 (2.4)% 27.7 (2.8)%
Other Retail Loans 2.5 2.4 2.4% 2.4 2.2% 2.3 9.1%
Business Banking + SME (reported) 37.9 36.8 3.1% 35.8 2.6% 33.9 11.7%
Business Banking + SME (rebased) ¹ 37.9 36.8 3.1% 36.3 1.3% 33.9 11.7%
SME (reported) 11.4 10.6 7.1% 10.2 3.7% 8.9 28.1%
SME (rebased) ¹ 11.4 10.6 7.1% 9.9 6.8% 8.9 28.1%
Business Banking (reported) 26.6 26.2 1.5% 25.6 2.2% 25.1 5.9%
Business Banking (rebased) ¹ 26.6 26.2 1.5% 26.4 (0.8)% 25.1 5.9%
Global Banking (Corporate) (reported) 71.4 69.4 2.8% 73.8 (5.9)% 73.4 (2.8)%
Global Banking (Corporate) (rebased) ¹ 71.4 69.4 2.8% 73.3 (5.3)% 73.4 (2.8)%
Total Malaysia 257.3 252.6 1.9% 255.9 (1.3)% 247.6 3.9%
¹ Re-based loan growth figures are based on adjusted 31 December 2015 position in line with migration of client accounts, implemented on 1 January 2016
Malaysia Loans Growth: 30 June 2016Loans growth of 1.9% QoQ, arising from improved growth in corporate, consumer and SME segments
10
30 Jun
2016
31 Mar
2016
2Q vs 1Q
QoQ
31 Dec
2015
1Q vs 4Q
QoQ
30 Jun
2015YoY
Group Gross Deposits 510.1 491.5 3.8% 495.8 (0.9)% 453.5 12.5%
Malaysia (RM billion) 306.8 294.1 4.3% 292.2 0.6% 285.4 7.5%
Savings Deposits 42.0 41.4 1.5% 40.0 3.4% 40.3 4.3%
Current Accounts 75.2 74.3 1.2% 74.2 0.2% 72.5 3.7%
Fixed Deposits 173.6 163.5 6.2% 163.0 0.3% 155.2 11.8%
Others 16.0 14.9 7.2% 15.0 (0.2)% 17.4 (7.8)%
International 204.9 198.9 3.0% 205.1 (3.0)% 169.6 20.8%
Singapore (SGD billion) 46.2 45.8 0.9% 43.6 4.8% 39.0 18.4%
Savings Deposits 4.6 4.3 8.3% 4.3 (0.2)% 4.5 2.8%
Current Accounts 5.8 5.1 13.7% 5.0 2.0% 5.1 13.2%
Fixed Deposits 34.7 35.4 (2.0)% 33.6 5.3% 28.9 20.2%
Others 1.1 1.0 8.4% 0.8 29.3% 0.5 97.0%
Indonesia (Rupiah trillion) 114.4 115.2 (0.6)% 115.9 (0.6)% 106.9 7.0%
Savings Deposits 26.2 26.1 0.5% 25.6 1.9% 24.0 9.2%
Current Accounts 18.7 17.3 7.9% 16.2 7.2% 18.4 1.7%
Fixed Deposits 69.5 71.9 (3.3)% 74.2 (3.0)% 64.5 7.8%
Group Deposits Growth: 30 June 2016Stronger QoQ group deposit growth of 3.8%, led by deposit growth of 4.3% in Malaysia
11
NIM Trend: 1H FY2016Slight NIM compression of 3 bps YTD
2.28
2.38
2.29
2.34
2.23
2Q '15 3Q '15 4Q '15 1Q '16 2Q '16
Net Interest Margin QoQ Trend
2.48
2.43
2.31 2.31
2.28
FY2012 FY2013 FY2014 FY2015 1H FY2016
5-Year Trend
12
Overheads: 1H FY2016Lower YoY cost-to-income ratio of 48.7% and positive JAWs of 1.9%, as income growth outpaced cost growth
(RM’ mil)1H
FY2016
1H
FY2015YoY 2Q FY2016 1Q FY2016 QoQ
Personnel Costs 2,832.5 2,792.7 1.4% 1,418.4 1,414.1 0.3%
Establishment Costs 941.2 737.8 27.6% 465.4 475.9 (2.2)%
Marketing Expenses 275.2 354.7 (22.4)% 135.2 140.0 (3.5)%
Administration &
General Expenses 1,195.0 1,022.7 16.8% 604.9 590.2 2.5%
Total 5,243.9 4,907.9 6.8% 2,623.7 2,620.2 0.1%
Group overheads composition
% 1H FY2016 1H FY2015 YoY 2Q FY2016 1Q FY2016 QoQ
Total Cost to Income ¹ 48.7 49.5 (0.8) 48.9 48.4 0.5
Group JAW Position 1.9 (0.9)
¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng
13
95.4% 96.6% 92.7% 89.9% 88.5%
34.9% 35.3% 33.7% 33.3% 33.4%
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
LDR CASA
LDR and CASA Ratio: 30 Jun 2016Group LDR improved further to 88.5%, arising from better LDR trends in Malaysia and Singapore
Singapore Indonesia
Group Malaysia
92.1% 93.4% 92.3% 90.2% 89.1%
39.6% 41.1% 37.1% 36.9% 35.9%
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
104.8% 104.0% 99.6% 100.1% 104.8%
39.7% 39.4% 36.0% 37.7% 39.3%
89.7% 90.0% 86.1% 87.6% 90.3%
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
LDR (Bank Level)
93.7% 95.7%85.3% 80.3% 79.4%
24.6% 24.6% 21.2% 20.4% 22.5%
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
Note: LDR is based on gross loans over customer deposits, a methodology adopted by Maybank effective January 2016
*Includes investment accounts totaling RM30.96 billion for 30 June 2016, RM25.07 billion for 31 Mar 2016 and RM17.66 billion for 31 Dec 2015, captured under Maybank Group’s
management reporting of total deposits
14
Strong LiquidityGroup LCR well above Bank Negara minimum
Objective
Short-term resilience – Adequate level
of high-quality liquid assets to meet
liquidity need for next 30 days under
significant stress scenario
Stock of high quality liquid assets
Net cash outflows over 30-day period
Ratio
BNM Minimum
Requirement
Year LCR
1 Jun 2015 60%
1 Jan 2016 70%
1 Jan 2017 80%
1 Jan 2018 90%
1 Jan 2019 &
thereafter100%
148 141 148
Dec 15 Mar 16 Jun 16
Group Liquidity Coverage Ratio (%)
Liquidity Coverage Ratio
BNM min
requirement
of 70%
15
300.9
667.9
466.7
865.1
981.7
548.9
1,846.8
2QFY2015
3QFY2015
4QFY2015
1QFY2016
2QFY2016
1HFY2015
1HFY2016
Allowances for losses on loans
83.4% 85.4%72.0% 70.1% 70.5%*
Loan loss coverage (LLC)
Allowance for losses on loans
Asset QualityStable loan loss coverage of 70.5% as at end June 2016 despite rise in impaired loans
RM
million
56%15%
14%
9%6%
GIL Composition by Country for 1H FY2016
* Loan loss coverage including Regulatory Reserve is 73.6%
70.5%
55% 48%39%
30%
GrossImpaired
Loans
IA+CA 100% of OpenMarket Value
(OMV)
40% OMVDiscount
60% OMVDiscount
72% OMVDiscount
Collateral Coverage for Home Markets
Covered by
Collaterals
Malaysia
Singapore
Greater
China
Others
Collaterals include cash, fixed deposit receipts (FDR), standby letter of credit (SBLC), land
and building and quoted shares, amongst others. Under discounted scenarios, only cash, FDR
and SBLC are maintained at full value (100%)
Indonesia
100% LLC for
Greater China
16
56%29%
15%
NPL
R&R
IPL
GIL Ratio Components June
2016
March
2016
Dec
2015
Sept
2015
Non Performing Loans
(NPL)
1.32% 1.39% 1.15% 1.05%
Restructured &
Rescheduled (R&R)
0.67% 0.33% 0.23% 0.02%
Performing Loans
Impaired Due to
Judgmental/ Obligatory
Triggers (IPL)
0.35% 0.39% 0.48% 0.47%
GIL Ratio 2.34% 2.11% 1.86% 1.54%
Group GIL Ratio Composition
0.97 1.13 1.04 1.06 1.15 1.141.38
1.64 1.72
1.501.65 1.52 1.50 1.56 1.54
1.862.11
2.34
Jun2014
Sep2014
Dec2014
Mar2015
Jun2015
Sep2015
Dec2015
Mar2016
Jun2016
Gross Impaired Loans Ratio (%) Net Impaired Loans Ratio (%)
Group Impaired Loans Ratio
0.74% 0.69% 0.61% 0.67% 0.70% 0.73% 0.81%0.98%
0.79%
1.17% 1.11%1.00% 1.01% 1.04% 1.05%
1.15%
1.39%1.32%
Jun2014
Sept2014
Dec2014
Mar2015
Jun2015
Sept2015
Dec2015
Mar2016
Jun2016
Gross NPL ratio Net NPL ratio
Group Non-Performing Loans (NPL) Ratio
*Bursa Malaysia financial statements for 30 June 2016 reflects NIL ratio less
MIB Investment Accounts of RM30.96 bil
Asset QualityGroup GIL ratio of 2.34% as at end June 2016, with slightly more than half coming from NPLs
17
Asset Quality by MarketUptick in GIL ratio for Malaysia arising from impaired accounts for business and corporate banking segments
4.50 4.544.15 4.21 3.99
3.553.36 3.25 3.30
2.99
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
1.62 1.631.76 1.83
2.23
1.18 1.251.36
1.45
1.78
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
Malaysia Singapore Indonesia
*The difference in Maybank Indonesia’s GIL ratio and NIL ratio on Pages 17 & 52 are due to computation differences owing to classification to meet the respective local regulatory
reporting requirements.
0.41 0.410.45
1.281.38
0.33 0.34 0.33
1.081.16
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
Gross Impaired Loans Ratio (%)
Net Impaired Loans Ratio (%)
18
Asset Quality: MalaysiaStable asset quality for consumer and SME portfolios, with uptick in business and corporate banking segments
Mortgage Auto Finance Credit Cards
Retail SME Business Banking Corporate Banking
Consumer
Business
Note:
Industry GIL ratio for mortgage is 1.1%, 1.0% for auto finance and 1.4% for credit cards. Industry GIL ratio for non-retail is 2.4%.
0.6%
0.5%
0.6%
Jun 2015 Dec 2015 Jun 2016
0.5% 0.5% 0.5%
Jun 2015 Dec 2015 Jun 2016
0.7%
0.8% 0.8%
Jun 2015 Dec 2015 Jun 2016
2.1%
2.0%
1.9%
Jun 2015 Dec 2015 Jun 2016
9.1%10.0%
11.2%
Jun 2015 Dec 2015 Jun 2016
1.3%1.5%
2.5%
Jun 2015 Dec 2015 Jun 2016
19
Asset Quality: SingaporeStable consumer portfolio; GIL ratio uptick for business segments due to weaker operating environment
Mortgage Auto Finance Credit Cards
Retail SME Business Banking Corporate Banking
Consumer
Business
Note:
Industry GIL figure is only available for mortgage, which was 0.4% as at June 2016
0.4%
0.5%
0.4%
Jun 2015 Dec 2015 Jun 2016
0.3% 0.3% 0.3%
Mar 2015 Dec 2015 Mar 2016
2.4%
2.7%
2.3%
Jun 2015 Dec 2015 Jun 2016
0.6%
1.2%
1.4%
Jun 2015 Dec 2015 Jun 2016
0.3%
0.6%
1.7%
Jun 2015 Dec 2015 Jun 2016
0.2%0.4%
2.0%
Jun 2015 Dec 2015 Jun 2016
20
Asset Quality: IndonesiaModerating YoY asset quality trends for consumer and business segments in Indonesia
Consumer
Business
Note:
Business Banking includes SME loans.
Auto Finance Credit Cards
Business Banking Corporate Banking
0.8%
0.6%
1.0%
Jun 2015 Dec 2015 Jun 2016
1.0% 1.0%1.1%
Jun 2015 Dec 2015 Jun 2016
3.6%
2.5% 2.6%
Jun 2015 Dec 2015 Jun 2016
1.7%
1.4%
1.7%
Jun 2015 Dec 2015 Jun 2016
1.3%
1.2%
1.4%
Jun 2015 Dec 2015 Jun 2016
17.7%
14.9%13.7%
Jun 2015 Dec 2015 Jun 2016
Mortgage
SME
21
66%
1%
21%
12%
Normal
Special Mention Account
Watchlist
GIL
87% comes from
supporting
upstream
Commodities Exposure: 30 June 2016Maybank Group’s exposure to direct and indirect oil and gas borrowers as well as other commodities
Notes:
• Group exposure is for three home markets Malaysia,
Singapore and Indonesia, based on Group gross loans as at
end June 2016
• Agriculture producers and manufacturers are for rubber, oil
palm and cocoa sectors
• Metals and mining producers and manufacturers are for
coal, lignite, peat, metal ores, tin, iron, steel and non-
ferrous metal sectors
Agriculture
Maybank Group 1.73%
Malaysia 1.42%
Singapore 0.03%
Indonesia 0.28%
Metals & Mining
Maybank Group 1.50%
Malaysia 1.12%
Singapore 0.09%
Indonesia 0.29%
Oil & GasMaybank
GroupMalaysia Singapore Indonesia Others
Loan exposure 4.19% 2.92% 0.98% 0.15% 0.14%
Borrowers’ Status:
Segmental Exposure:
Direct & Indirect Oil & Gas:
Borrowers with O&G related exposure
Other Sectors
Group exposure of 4.19% includes funded
and non-funded
Excluding non-funded, exposure is 3.75%
Widen perimeter to include supporting
upstream and supporting downstream,
enlarging exposure by 2%
Supporting upstream includes
services activities incidental to crude
oil and natural gas extraction
including surveying.
This includes providers of services/
activities related to O&G industry
43%
34%
6%
17%
Upstream
SupportingUpstream
Downstream
SupportingDownstream
22
12.78% 13.76% 13.59%
14.47% 15.49% 15.31%
17.74%19.17% 18.99%
Dec 15 Jun 16 Jun 16
Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio
Group
Bank
Strong Capital Position: 30 June 2016Total capital ratio at 18.99% (assuming 85% dividend reinvestment rate) and CET1 at 13.59%
Before proposed dividend
After proposed
dividend,
assuming 85%
reinvestment
rate
2016 2017 2018Jan 2019
Onwards
Minimum Common Equity
Tier 1 Capital4.5% 4.5% 4.5% 4.5%
Minimum Tier 1 Capital 6.0% 6.0% 6.0% 6.0%
Minimum Total Capital 8.0% 8.0% 8.0% 8.0%
Capital Conservation
Buffer (Phase in)0.625% 1.250% 1.875% 2.500%
Other Capital Buffers
D-SIB Buffer
Countercyclical Capital
buffer
Regulatory Requirements
To be determined
0% - 2.5%
15.78% 15.89% 15.64%
17.97% 18.31% 18.06%
19.61% 19.36%
Dec 15 Jun 16 Jun 16
Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio
Note:
• Based on 85% reinvestment rate under the DRP, the fully loaded CET1 Ratio would be at 13.22% (Group) and 12.32% (Bank) respectively.
** Dec 2015 Bank Level Tier 1 and TCR ratio are the same at 17.97%.
23
61.0%
76.5%74.9%
79.9%74.7% 71.9%
78.5% 76.3% 77.4%
11
28 3222.5
24 2420
8
44
32
36
33
3133 30
FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16
Final
Interim
* Actual Reinvestment Rate for Dividend Reinvestment Plan. The reinvestment rate for FY2016 is pending the execution of the 13th DRP.
# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend.
Gross Dividend (sen) and Payout Ratio (%)
85.9%*
85.7%*
88.2%*85.9%*
88.5%*91.1%*
86.1%*
88.6%*
#
82.6%*
8.0
55.0
60.0
36.0
65.0
53.557.0
84.0%*
DividendPayout Ratio
83.7%*
54.0
87.5%*
DividendBoard recommended single-tier interim dividend of 20 sen consisting of 4 sen cash portion and 16 sen electable portion
N.A.*
24
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
25
Market Outlook2016 outlook for our home markets
Key Indicators Outlook
Singapore
Malaysia
Indonesia
• GDP (f) 4.1% (2015: 5.0%)
• System loan (f) 6.5%
• OPR(f) 2.75%-3.00% (2015: 3.25%)
• USD/MYR (f, end-period) 4.00 (2015: 4.29)
• Inflation (f) 2.3-2.8% (2015: 2.1%)
• GDP (f) 1.8% (2015: 2.0%)
• System loan (f) -1%-0%
• System deposit (f) 2%-3%
• 3M SIBOR (f) 0.90% (2015: 1.19%)
• USD/SGD (f) 1.36 (2015: 1.42)
• Inflation (f) -0.4% (2015: -0.5%)
• GDP(f) 5.09% (2015: 4.79%)
• System loan (f): 11.57%
• System deposit (f): 8.14%
• Reference Rate* (f) 5.00% (2015: 6.25%)
• USD/IDR average (f) 13293 (2015: 13458)
• Inflation average (f) 3.53% (2015: 6.38%)
• Government infrastructure spending to drive Indonesia’s
economic growth in 2016
• Increased funding following domestic economy recovery
• Rate cuts have increased demand for credit, which in
turn is stimulating Indonesia’s economic growth
• Muted loan growth due to slower economic growth
• NIMs likely to remain flat as uptick in rates will be less
pronounced due to declining interest rate environment
• Continued asset quality deterioration as credit cycle turns
and persistent weakness in oil & gas sector
• Key priorities remain cost rationalisation and capital
management
• Moderation in overall industry loan growth
• Credit cost uptick on higher impaired loans
• Cost and capital management will remain key priorities
*Bank Indonesia changed its reference rate from BI rate to 7-days Reverse Repo
26
Maybank Performance OutlookSelective asset growth in 2H FY2016 to drive overall Group performance
Remain focused on selective asset growth
Maintain strong liquidity and capital positions
Continued emphasis on cost discipline and improving productivity
Credit cost to trend lower in 2H. Downside risk is emergence of new global
macroeconomic headwinds
1
2
3
4
27
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
28
2,9172,756
226
2,037
(2,102)
3,134 3,108
193
2,233
(2,399)
Total Other operatingincome
Fee Income fromIslamic Operations
Net Earned InsurancePremiums
Net Insurance Benefits& Claims Incurred, Net
Fee & CommissionExpenses and Life &
Takaful Fund Tax
1H FY2015
1H FY2016
+7.4% YoY +12.8% YoY +9.6% YoY (14.7)% YoY 14.1% YoY
RM
million
RM million1H
FY20161H
FY2015YoY
Commission, service charges and fees 1,772 1,883 (5.9)%
Investment & Trading Income 484 471 +2.8%
Unrealised gain/ (losses) on securities & derivatives 509 (261) +>100%
Foreign Exchange Profit 165 507 (67.5)%
Other Income 177 156 +13.5%
Net Fee Based Income: 1H FY2016 (YoY)
29
1,569 1,666
57
1,169
(1,324)
1,566 1,441
135
1,065
(1,076)
Total Other operating income Fee Income from IslamicOperations
Net Earned InsurancePremiums
Net Insurance Benefits &Claims Incurred, Net Fee &Commission Expenses andLife & Takaful Fund Tax
1Q FY2016
2Q FY2016
+>100% QoQ (13.5)% QoQ (8.9)% QoQ (18.7)% QoQ
RM
million
RM million 2Q FY2016 1Q FY2016 QoQ
Commission, service charges and fees 872 901 (3.2)%
Investment & Trading Income 249 235 +6.2%
Unrealised gain/ (losses) on securities & derivatives 404 106 +>100%
Foreign Exchange Profit (161) 326 >(100)%
Other Income 78 99 (21.1)%
Net Fee Based Income: 2Q FY2016 (QoQ)
(0.2)% QoQ
30
Unaudited Income Statement for Insurance and Takaful Business
RM million1H
FY2016
1H
FY2015YoY
2Q
FY2016
1Q
FY2016QoQ
2Q
FY2015YoY
Net interest income 484.7 453.9 6.8% 251.7 233.0 8.0% 225.9 11.4%
Net earned premiums 2,233.2 2,037.4 9.6% 1,064.6 1,168.6 (8.9)% 1,050.3 1.4%
Other operating income 390.7 319.1 22.4% 143.1 247.6 (42.2)% 130.1 9.9%
Total operating income 3,108.5 2,810.4 10.6% 1,459.3 1,649.2 (11.5)% 1,406.3 3.8%
Net insurance benefits & claims
incurred, net fee & commission
expenses and life & takaful fund tax
(2,474.4) (2,153.7) 14.9% (1,108.5) (1,365.8) (18.8)% (1,028.9) 7.7%
Net operating income 634.1 656.7 (3.4)% 350.8 283.4 23.8% 377.4 (7.1)%
Overhead expenses (328.4) (294.5) 11.5% (167.7) (160.7) 4.3% (123.0) 36.3%
PPOP 305.7 362.2 (15.6)% 183.1 122.6 49.3% 254.4 (28.0)%
Net impairment losses (33.4) (174.7) (80.9)% (14.0) (19.4) (27.9)% (116.6) (88.0)%
Operating profit 272.4 187.5 45.2% 169.1 103.3 63.8% 137.7 22.8%
RM million1H
FY2016
1H
FY2015YoY
2Q
FY2016
1Q
FY2016QoQ
2Q
FY2015YoY
Net insurance benefits & claims
incurred, net fee & commission
expenses and life & takaful fund tax
(2,474.4) (2,153.7) 14.9% (1,108.5) (1,365.8) (18.8)% (1,028.9) 7.7%
Less: intercompany elimination 74.9 51.5 45.5% 32.9 42.0 (21.9)% 24.4 34.4%
Total net insurance benefits & claims
incurred, net fee & commission
expenses and life & takaful fund tax
(2,399.5) (2,102.3) 14.1% (1,075.7) (1,323.8) (18.7)% (1,004.5) 7.1%
Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax
31
80.3%
6.1%
9.2%4.4%
Malaysia Singapore Indonesia Others
RM3.52b
70.4%
13.7%
2.0%
13.9%
International & Malaysia Portfolio Mix 1H FY2016
62.2%15.7%
14.4%
7.7%
Overseas:
42.3%
1H FY2015
Net Operating Income Profit Before Tax1H FY2016
Overseas:
35.7%Overseas:
29.6%
Gross loans
(Jan 15 – Jun 15)
57.8%25.1%
8.2%
8.9%Overseas:
42.2%
Overseas:
37.8%
Overseas:
19.7%
(Jan 16 – Jun 16)
57.7%24.6%
7.4%
10.3%
64.3%
16.0%
12.3%
7.4%
RM4.39b RM432.5b
RM451.1bRM10.74b
RM9.88b
32
Group Gross Loans Growth YTD: 30 June 2016
% of Portfolio 30 Jun 2016 31 Dec 2015YTD
Annualised
Group Gross Loans 451.1 459.4 (3.6)%
Malaysia (RM billion) 57% 257.3 255.9 1.1%
Community Financial Services 73% 187.2 183.2¹ 4.4%
Global Banking 27% 71.4 73.3¹ (5.4)%
International (RM billion) 41% 186.7 196.5 (10.0)%
Singapore (SGD billion) 59% 36.7 37.2 (2.9)%
Community Financial Services 54% 19.8 20.2 (3.6)%
Global Banking 46% 16.6 16.8 (2.2)%
Indonesia (Rupiah trillion) 19% 119.3 114.8 7.9%
Community Financial Services 80% 95.6 92.4 6.7%
Global Banking 20% 23.5 22.0 13.5%
Other markets (RM billion) 22% 40.7 47.7 (29.5)%
Investment banking (RM billion) 2% 7.1 7.1 0.9%
¹ Re-based loan growth figures are based on adjusted 31 December 2015 position in line with migration of client accounts, implemented on 1 January 2016
33
Malaysia Loans Growth YTD: 30 June 2016
RM billion% of
Portfolio
30 Jun
2016
31 Dec
2015YTD Annualised
Community Financial Services (reported) 73% 187.2 182.7 4.9%
Community Financial Services (rebased) ¹ 73% 187.2 183.2 4.4%
Consumer 58% 149.3 146.9 3.3%
Total Mortgage 28% 72.2 69.2 8.8%
Auto Finance 16% 41.3 40.8 2.4%
Credit Cards 2% 6.3 6.4 (2.8)%
Unit Trust 10% 27.0 28.1 (8.1)%
Other Retail Loans 1% 2.5 2.4 9.2%
Business Banking + SME (reported) 15% 37.9 35.8 11.7%
Business Banking + SME (rebased) ¹ 15% 37.9 36.3 8.9%
SME (reported) 5% 11.4 10.2 22.0%
SME (rebased) ¹ 5% 11.4 9.9 28.8%
Business Banking (reported) 10% 26.6 25.6 7.5%
Business Banking (rebased) ¹ 10% 26.6 26.4 1.4%
Global Banking (Corporate) (reported) 27% 71.4 73.8 (6.6)%
Global Banking (Corporate) (rebased) ¹ 27% 71.4 73.3 (5.4)%
Total Malaysia - 257.3 255.9 1.1%
¹ Re-based loan growth figures are based on adjusted 31 December 2015 position in line with migration of client accounts, implemented on 1 January 2016
34
% of Portfolio 30 Jun 2016 31 Dec 2015 YTD Annualised
Group Gross Deposits 510.1 495.8 5.8%
Malaysia (RM billion) 60% 306.8 292.2 10.0%
Savings Deposits 14% 42.0 40.0 9.8%
Current Accounts 25% 75.2 74.2 2.8%
Fixed Deposits 56% 173.6 163.0 12.9%
Others 5% 16.0 15.0 13.8%
International 40% 204.9 205.1 (0.2)%
Singapore (SGD billion) 67% 46.2 43.6 11.7%
Savings Deposits 10% 4.6 4.3 16.1%
Current Accounts 13% 5.8 5.0 32.1%
Fixed Deposits 75% 34.7 33.6 6.5%
Others 2% 1.1 0.8 80.3%
Indonesia (Rupiah trillion) 17% 114.4 115.9 (2.6)%
Savings Deposits 23% 26.2 25.6 4.9%
Current Accounts 16% 18.7 16.2 31.3%
Fixed Deposits 61% 69.5 74.2 (12.5)%
Group Deposit Growth YTD: 30 June 2016
35
Key Operating Ratios
(%)1H
FY2016
1H
FY2015
Variance
YoY
2Q
FY2016
1Q
FY2016
Variance
QoQ
2Q
FY2015
Return on Equity 8.3 12.1 (3.8)% 7.5 9.3 (1.8)% 11.7
Net Interest Margin 2.28 2.28 0 bps 2.23 2.34 (11) bps 2.28
Fee to Income Ratio 29.2 29.5 (0.3)% 29.3 29.1 0.2% 27.5
Loans-to-Deposit Ratio 88.5 95.4 (6.9)% 88.5 89.9 (1.4)% 95.4
Cost to Income Ratio¹ 48.7 49.5 (0.8)% 48.9 48.4 0.5% 49.2
Asset Quality
Gross Impaired Loans Ratio 2.34 1.56 78 bps 2.34 2.11 23 bps 1.56
Net Impaired Loans Ratio 1.72 1.15 57 bps 1.72 1.64 8 bps 1.15
Loans Loss Coverage 70.5 83.4 (12.9)% 70.5 70.1 0.4% 83.4
Net Charge off rate (bps) (80) (27) (53) bps (85) (75) (10) bps (29)
Capital Adequacy (Group)²
CET1 Capital Ratio 13.59 11.50 209 bps 13.59 12.74 85 bps 11.50
Total Capital Ratio 18.99 15.57 342 bps 18.99 17.63 136 bps 15.57
¹ Total cost excludes amortisation of intangibles for Maybank Indonesia and Kim Eng.
² The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period.
36
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
37
Community Financial Services: Overview of Market Share for Malaysia
Loans
Total consumer (Household) 17.4% 17.5% 17.5% 17.4% 17.9% # 2
Auto (Purchase of transport vehicles) 23.6% 23.8% 23.7% 23.7% 24.1% # 2
Total mortgage* 13.2% 13.3% 13.4% 13.4% 13.4% # 2
Credit cards** 16.9% 17.1% 17.5% 17.5% 17.6% # 1
Unit trust 51.4% 51.7% 51.6% 52.3% 52.3% # 1
Deposits
Total deposits 18.8% 18.0% 18.3% 18.0% 18.6% # 1
Total core retail deposits 19.4% 19.6% 20.2% 20.3% 20.4% # 2
Retail CASA 25.3% 25.7% 25.6% 26.0% 25.7% # 1
- Retail savings 30.8% 30.8% 30.8% 31.0% 30.8% # 1
Retail fixed deposits 16.2% 16.4% 17.4% 17.4% 17.7% # 2
Internet banking - Subscriber base 43.2% 42.8% 43.2% 42.8% 42.8% # 1
Mobile banking - Subscriber base 29.5% 29.1% 29.1% 28.4% 28.4% # 1
Branch network 20.0% 20.0% 20.0% 20.0% 19.3% # 1
Market
position
Jun-16
vs
Mar-16
Market
positionJun-15
Dec-15
Mar-16
Mar-16
Jun-16
vs
Mar-16
Market share
Market share Jun-15
Sep-15
Sep-15
Dec-15 Jun-16
Jun-16
^ Subscriber base data as at Mar’16.
^^Total bank deposits inclusive of IA.
* Refers to housing, shophouse and other mortgages loans
** Credit cards market share refer to receivables for commercial banks
^^ ^^ ^^
^
^
38
Community Financial Services: Overview of Malaysia Loans Portfolio
Mass customer cross sell ratio improved to 3.25 Business Banking + SME loans grew by 11.7% (ann.) to
RM37.9 billion led by SME growth of 22%
+11.7% YoY
+5.6% YoY
Consumer loans grew 3.3% (ann.) to RM149.3 billion led
by mortgage portfolio at 8.8% HNW and Affluent customer TFA grew 13.0% YoY
+13.0% YoY
+4.9% QoQ
-3.2% YoY
-1.2% QoQ
• Customer classification: HNW (IA>RM3m, TFA >RM4m); Affluent (IA between RM 250K to RM3m, TFA between RM1m to < RM4m)
• TFA: Total Financial Assets (Deposits, Investments, Financing & Protection), IA: Investable Assets (Deposits & Investments)
+3.3% YTD Ann.
+11.7% YTD Ann.
RM
billion
RM
billion
RM
billion
RM
billion
39
Community Financial Services: Overview of Malaysia Deposits Portfolio
CFS deposits grew 9.4% (ann.) to RM215.8 billion Consumer deposits grew 8.4% (ann.) with QoQ growth
ahead of industry
Business Banking + SME deposits grew 11.2% (ann.) to
RM82.2 billion
+12.2% YoY
+15.8% YoY
+10.0% YoY
o CFS deposits growth of 9.4% YTD Ann., led by
growth in business deposits of 11.2% and
consumer deposits of 8.4%.
o Consumer deposits growth mainly supported by
fixed deposit growth of 10.2% YTD Ann. while
CASA grew 6.8% YTD Ann.
+9.4% YTD Ann.
+11.2% YTD Ann.
+8.4% YTD Ann.
RM
billion
RM
billion
RM
billion
40
Community Financial Services: Overview of CFS Malaysia Asset Quality
CFS GIL increased to 2.1%, led by increase in BB GIL Stable consumer GIL at 0.5%, below industry average
Business Banking + SME GIL increased to 8.5%
o Total GIL ratio for consumer financing
portfolio increased marginally by 0.03%.
o Business Banking + SME GIL increased to 8.5%
mainly due to BB GIL. Closer monitoring of
asset quality and step up in recovery efforts
for the Business Banking portfolio.
o SME GIL portfolio reduced by 0.1% to 1.9%.
RM
million
RM
million
RM
million
41
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
42
2.2
37.7
33.5
1.9
39.4
32.5
2.0
41.1
28.3
Jun'16 Dec'15 Jun'15
Trade
Finance
and Others
Overdraft
Trade Finance market share ¹
Corporate Banking GIL ratio at 2.53% as at June 2016
Total GB loans declined YTD (ann) to RM71.4 billion
+8.5%
YTD ann.
+8.1%
YTD ann.
RM billion
1 Market share of total trade products (On Balance Sheet items, Contingent
Liabilities and Others)
-25.8%
YTD ann.
1.27% 1.18%
1.48%
1.76%
2.53%
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
Term Loan 24.9%
25.3%
25.0%
25.5%25.4%
25.3%
Jun 15 Sep 15 Dec 15 Mar 16 May 16 Jun 16
Global Banking: Overview of Malaysia Corporate Banking Portfolio
43
756.51,160.8
627.5
717.1
1H FY2015 1H FY2016
Net interest income Non-interest income
+36.0%
47.6 51.7 53.9 62.9 63.9
46.6 48.9 47.650.1 49.8
14.6 11.6 10.311.4 12.5
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16
Govt. Securities PDS/Corp Bonds Others
Group Securities Portfolio:
44.8% Foreign Securities as at 1H FY2016
56.6%20.8%
18.9%
0.4%
0.8%2.5%
49.3%
19.1%
20.3%
1.9%
0.6% 8.8%
RM25.5
billion
A
<A
RM21.1
billion
Commercial
Papers
22.9%
27.8%22.4%
17.0%
9.9%
Group Securities Portfolio grew 16.0% YoY
+16.0%
Global Market’s revenue grew by 36.0% YoY
+21.0%
1,384.1
RM
million
Note: PBT & Revenue includes regional performance
RM 126.2
billion
39.4% of GM PDS (Maybank Conventional Malaysia) rated
“AA” or above as at 1H FY2016
RM
billion
1H FY2016
Government
Securities
-Domestic
Government
Securities
-Foreign
PDS/Corp
Bonds
-Domestic
PDS –
Foreign
Others
(NIDs, BA, etc)
23.5%
20.2%
24.2%
18.6%
13.4%
RM108.8
billion
Government
Securities
-Domestic
Government
Securities
-Foreign
PDS –
Foreign
Others
(NIDs, BA, etc)
1H FY2015
SA
(Govt.
Guaranteed)
AAA
AASA
(Govt.
Guaranteed)AAA
AA
A Commercial
Papers
1H FY20161H FY2015
<A
1,877.8
PDS/Corp
Bonds
-Domestic
1,157.0
1,397.0
1H FY2015 1H FY2016
RM
million
108.8 112.2 111.8124.4 126.2
Revenue Profit before Tax
Global Banking: Overview of Group Global Markets Portfolio
4444
Global Banking: Overview of Group Investment Banking Portfolio
1H FY2016 Equity Brokerage League Table by Country
Note: Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings
Country Rank Market ShareTrading Value
(USD m)
Thailand 1 8.1% 21,355
Malaysia 3 9.4% 11,202
Indonesia 8 3.9% 3,720
Philippines 9 4.4% 1,720
Singapore 14 4.1% 8,156
Hong Kong Tier 2 1.3% 26,952
1H FY2016 Fee-based Income for Malaysia
1H FY2016 Total Income Total Income for Maybank Kim Eng increased by 14.1% YoY
Malaysia (RM270.2mil, 37%)
Singapore (RM189.7mil, 26%)
Thailand (RM147.5mil, 20%)
Indonesia (RM15.1mil, 2%)
Philippines (RM39.9mil, 5%)
Hong Kong (RM36.7mil, 5%)
Others(RM27.0mil, 4%)
RM726.0mil
Advisory Fees, 41.5%
Brokerage, 38.0%
Arrangers' Fees, 7.9%
Other Fee Income, 6.9%
Placement Fees, 2.9%
Agency/ Guarantee Fees, 2.6%
Primary Subscriber's Fees,
0.2%
RM
Million
1H 2015 1H 2016
726.0
636.4
+14.1%
4545
Global Banking: Notable Deals for 1H FY2016
Mar 2016
Malaysia
PAVILION REIT BOND
CAPITAL BERHAD
MTN Programme
Joint Principal Adviser,
Joint Lead Arranger, Joint
Lead Manager
RM 8 Billion
Apr 2016
Singapore
TUASONE PTE LTD
(HYFLUX-MHI CONSORTIUM)
Syndicated Project
Finance Facility
Joint Mandated Lead
Arranger
RM 650 Million
May 2016
Malaysia
EI SUKUK CO LTD
Senior Unsecured Sukuk
Wakala Bond
Joint Lead Manager,
Dealer
USD 750 Million
May 2016
Singapore
GUNVOR SINGAPORE PTE
LTD
Revolving Credit Facility
Mandated Lead Arranger,
Bookrunner
USD 1.041 Billion
Jun 2016
Indonesia
PT MABAR ELEKTRINDO
Syndicated Project
Finance Facility
Mandated Lead Arranger,
Exclusive Advisor
USD 410 Million
Jun 2016
Indonesia
INDORAMA
CORPORATION PTE LTD
Revolving Credit Facilities
Mandated Lead Arranger
USD 500 Million
PETRONAS Global Sukuk
Ltd
Indonesia
Jun 2016
Shelf Bonds Programme II
Joint Lead Underwriter
PT WAHANA OTTOMITRA
MULTIARTHA
IDR 4.5 Trillion
May 2016
MISC BERHAD
Acquisition of the
remaining 50% equity
interest in Gumusut-Kakap
Semi-Floating Production
System (L) Limited
Malaysia
RM 1.85 Billion
Jun 2016
MARLIN ENTERPRISE
LIMITED
Malaysia
Senior Term Loan Facility
Joint Mandated Lead
Arranger, Joint
Bookrunner
USD 425 Million
Apr 2016
Malaysia
MALAYSIA SUKUK
GLOBAL BERHAD
Global Trust Certificates
Joint Lead Manager, Joint
Bookrunner
USD 1.5 Million
Apr 2016
Indonesia
Onshore USD Medium Term
Notes
Sole Lead Arranger
USD 100 Million
Jun 2016
Myanmar
OCK GROUP BERHAD
Joint Mandated Lead
Arranger and Lender
Lender
USD 40.2 Million
Jun 2016
Malaysia
MUMTAZ RAKYAT
SUKUK BERHAD
Tier 2 Subordinated Sukuk
Murabahah Programme
Sole Principal Adviser,
Sole Lead Arranger, Joint
Lead Manager
RM 5 Billion
PT SARANA MULTI
INFRASTRUKTUR (PERSERO)
Jun 2016
Malaysia
Sukuk Wakalah Issuance
Joint Principal Adviser,
Joint Lead Arranger, Joint
Lead Manager
RM 350 Million
TADAMUN SERVICES
BERHAD
Malaysia
Mar 2016
1MALAYSIA
DEVELOPMENT BERHAD
RM 9.83 Billion
Disposal of power assets
of 1MDB, housed under
its wholly-owned
subsidiary Edra Global
Energy Berhad
Financial Advisor
Jan 2016
Malaysia
SIME DARBY BERHAD
RM 1.82 Billion
3RD Dividend
Reinvestment Plan
Principal Advisor
Mar 2016
Malaysia
RM 3 Billion
SIME DARBY BERHAD
Perpetual Subordinated
Sukuk Programme
Sole Principal Adviser,
Sole Lead Arranger, Sole
Lead Manager
Jan 2016
Malaysia
USD 200 Million
PALMINDO HOLDINGS PTE
LTD
Term Loan Facility
(Conventional &
Commodity Murabahah
Financing)
Mandated Lead Arranger
Feb 2016
Malaysia
RM180 Million
KSL PROPERTIES
SDN BHD
Conventional Short Term
Revolving Credit
Mar 2016
Indonesia
PT DELTA DUNIA
SANDANG TEKSTIL
USD 10 Million
Syndicated Loan
Lender
Feb 2016
Singapore
CORDLIFE GROUP
LIMITED
RM 6.6 Million
Take-over offer in
Stemlife Berhad
Principal Advisor
4646
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
47
Maybank Singapore: P&L Summary
(SGD mil) 1H FY2016 1H FY2015 YoY
Net Fund Based income 253.30 277.02 (8.6)%
Net Fee Based income 147.32 121.10 21.6%
Net income 400.62 398.12 0.6%
Overhead expenses 178.80 176.67 1.2%
Operating profit 221.82 221.45 0.2%
Profit before taxation 153.25 199.64 (23.2)%
PBT was lower by 23.2% YoY or SGD 46.39 million to SGD 153.25 million for 1H FY2016.
Net fund-based income declined by 8.6% YoY as higher funding costs led to a compression in net interest
margin.
Fee-based income increased 21.6% YoY, boosted by a rise in treasury and Islamic banking income.
Overhead expenses increased by 1.2% YoY mainly arising from higher human capital and IT investments.
While operating profit rose 0.2% YoY, an increase in loan loss allowance resulted in a decline in PBT. The
higher loan loss allowance was partly due to proactive restructuring of some accounts against the backdrop
of a weaker economic environment.
48
0.24 0.310.42 0.44
0.48
1.31 1.41
0.20 0.250.35 0.36 0.35
1.111.19
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
GIL Ratio NIL Ratio
8.5 8.9 7.9
4.3 3.9 4.2
3.9 3.6 4.0
5.8 6.0 6.0
8.9 9.6 9.4
1.9 1.8 1.73.1 3.4 3.4
Jun 15 Dec 15 Jun 16
Other(Consumer)
Car Loan
Housing Loan
Others(Corporate)
Non-Bankfinancial Inst
GeneralCommerce
Building &Const
Gross impaired loan ratio rose to 1.41% as at
Jun 2016Maybank Singapore loans up 0.4% YoY as at Jun-16 while
industry loans continued to shrink
Diversified Loan Portfolio
36.6 36.7
Consumer
38%
Corporate
62%
SG
D b
illion
As at 30 June 2016, total loans contracted by 2.9%
YTD annualised to SGD 36.7 billion
Consumer loans shrank by 4.7% YTD to SGD 14.4
billion, weighed by a decline in housing loans. Car
loans also continued to decline in line with the
industry trend.
Similarly, business loans contracted by 1.7% YTD to
SGD 22.2 billion. A decline in lending to the building
& construction segment more than offset an increase
in loans to non-bank financial institutions and
general commerce segments
13.4%11.6% 9.9%
10.5%6.0%
4.9%
0.4%9.3%6.7%
3.4% 4.2%0.04%
-5.4%-3.6%
-10.0%
10.0%
Dec 14 Mar 15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
Maybank Singapore Growth Industry Growth
+0.4% YoY
37.2
-2.9% ann.
Maybank Singapore: Overview of Loans Portfolio
49
4.5 4.4 5.2
11.9 15.3 15.0
5.1 4.8 5.2
17.5 19.0 20.7
Jun-15 Dec-15 Jun-16
Consumer -Time Deposits
Consumer CASA
Business TimeDeposits
Business CASA
Maybank Singapore: Overview of Deposits Portfolio
Maybank Singapore deposit up 18.2% YoY in Jun-16,
as compared to the 4.1% rise in system-wide deposit
Consumer deposits account for 56% of our deposits
+18.2% YoY
39.0 46.1
Consumer
56%
Corporate
44%
SG
D b
illion
4.5 4.3 4.6
5.1 5.0 5.8
29.4 34.3 35.7
Jun-15 Dec-15 Jun-16
Time Deposits
Demand Deposits
Savings
CASA Ratio:
22.5%
CASA growth of 6.3% YoY
16.5%17.0%
11.5% 10.8% 10.0%
16.8% 18.2%
7.0%8.0%
6.4%9.2%
4.6%1.5% 4.1%
Dec 14 Mar 15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
Maybank Singapore Growth Industry Growth
As at 30 June 2016, deposits expanded by 11.9% YTD
(ann.) to SGD 46.1 billion.
Consumer deposits increased by 18.2% YTD to SGD 26.0
billion, led by a 18.5% gain in time deposits.
Meanwhile, business deposits advanced by 4.4% YTD to
SGD 20.2 billion on the back of a 33.2% jump in CASA.
43.6
+11.9% ann.
SG
D b
illion
5050
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
5151
(IDR billion) 1H FY2016 1H FY2015 YoY 2Q FY2016 1Q FY2016 QoQ
Net Fund Based income 3,585 3,088 16.1% 1,859 1,726 7.7%
Net Fee Based income 1,477 1,081 36.6% 790 687 14.9%
Net income 5,061 4,170 21.4% 2,648 2,413 9.7%
Overhead expenses (2,941) (2,767) 6.3% (1,499) (1,442) 3.9%
Personnel (1,199) (1,230) -2.5% (609) (590) 3.1%
General & Administrative (1,576) (1,487) 6.0% (783) (793) -1.2%
Other Operating Expenses (166) (51) 229.4% (107) (59) 80.6%
Operating Profit 2,120 1,403 51.1% 1,149 971 18.4%
Provision Expenses (991) (952) 4.2% (602) (389) 54.8%
Non Operating Income/Expenses 33 73 -54.4% 15 19 -21.5%
Profit before Tax & before Minority Interest 1,162 524 121.7% 562 600 -6.4%
Net Profit 858 388 121.2% 415 444 -6.6%
EPS - Basic (IDR) 12.67 5.73 121.1% 6.12 6.55 -6.6%
Maybank Indonesia: P & L Summary
5252
8.9% ann.
16.3 18.4 16.2 18.7
23.5 24.0 25.6 26.2
62.7 64.7 73.7 69.1
Dec-14 Jun-15 Dec-15 Jun-16
Current Account Saving Account Time Deposit
24.0 21.4 21.5 22.9
82.3 87.1 91.1 94.6
Dec-14 Jun-15 Dec-15 Jun-16
Global Banking Community Financial Services (CFS)
Net Interest Margin (Consolidated)
Asset Quality (Consolidated)
Loans composition (Consolidated)IDR Trillion
Deposits (Consolidated) IDR Trillion
112.5108.5
8.3% YoY
106.3
Maybank Indonesia: Portfolio Overview
117.5
115.5107.1
6.5% YoY
102.5 114.1
4.76% 4.73%4.84%
5.01%
Dec-14 Jun-15 Dec-15 Jun-16
4.62% 4.65%
3.83% 3.82% 3.79%
3.29% 3.12%2.59% 2.56% 2.42%
Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
Impaired Loans - Gross Impaired Loans - Net
(2.5)% ann.
5353
420 437
191145
Jun-15 Jun-16
Revenue Profit Before Tax
4,284
5,514
Jun-15 Jun-16
25,537
304
25,841
22,790
240
23,030
New Used Total
Jun-15 Jun-16
Asset Quality
Revenue and Profit Before Tax IDR billion
Maybank Indonesia: Overview of Maybank Finance Operations
FinancingIDR billion
28.7%
Unit Financing (unit)
(10.9)%(10.8)%
(21.1)%
4.1%
0.25% 0.20%0.29% 0.36% 0.36%
0.33% 0.24%0.35%
0.45% 0.44%
Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
NPL Net NPL Gross
5454
186
113
300
119 105
224
New Used Total
Jun-15 Jun-16
840937
(27)
49
Jun-15 Jun-16Revenue Profit Before Tax
FinancingIDR billion
(36.0)%
(7.7)%
(25.3)%Asset Quality
Revenue and Profit Before Tax IDR billion
Unit Financing (‘000 unit)
11.6% 10.4%
Maybank Indonesia: Overview of WOM Finance Operations
>100%
1.08% 1.01% 0.99% 1.11% 1.18%
2.91% 2.95% 2.97% 3.34%3.55%
Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
NPL Net NPL Gross
4,748 5,243
Jun-15 Jun-16
55
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
56
30.8 32.1
30.3
5.3
13.1
19.6
30.6
35.1
31.5
5.8
12.8
22.4
AITAB Mortgage Term Financing Others (CFS) Term Financing Others (GB)
RM
billion
Dec-15 Jun-16
Islamic Banking: Performance Overview
Group Islamic Banking Financial Performance
Source: Islamic Banking Scheme (“IBS”) disclosure in Group Financial Statement
Maybank Islamic: Key Financial Ratios
Maybank Islamic: Total Gross Financing grew by 11%
(ann.) to RM138.2 billion
1%
18%
8%
4%
21%
CFS:9%
RM million 1HFY16 1HFY15 YoY
Profit Before Tax 720.2 748.6 -3.8%
Financing & Advances 137,247.0 122,044.4 12.5%
Deposits & Investment
Account:137,538.5 106,712.8 28.9%
Deposits from
Customers106,574.5 106,712.8 -0.1%
Investment Account 30,964.0 - 100.0%
Key Financial Ratios 1HFY16 1HFY15
Net Profit Margin (NPM) 1.85% 1.84%
Total Capital Ratio (TCR) 18.426% 14.687%
Cost to Income Ratio (CIR) 37.53% 38.14%
Direct FDR1 91.3% 101.7%
Adjusted FDR with LTIF2 84.5% 94.6%
Maybank Islamic contribution to Maybank Malaysia Loans
and Financing as at June 2016
Year Contribution
June 2015 48.7%
Sep 2015 49.4%
Dec 2015 50.8%
Mar 2016 51.8%
June 2016 53.1%
Note:
1) Direct FDR comprising gross financing against deposit and Investment Account (exc. RPSIA assets
and liabilities)
2) Adjusted FDR comprising adjusted financing against adjusted deposit (exc. RPSIA assets and
liabilities) including long term interbank funding (LTIF)
28%
GB:15%
57
Maybank Islamic Market Share (Malaysia)
Maybank Islamic ranks No.1 by Asset Market Share
in Malaysia
Source: BNM monthly statistical bulletin and latest respective Bank’s Financial Statements
MalaysiaAsset Market Share
Mar-16Rank
Maybank Islamic 30% 1
CIMB Islamic 10% 2
Bank Islam 9% 3
Source: Bloomberg
Sukuk League Table Ranking Jun 2016
Key Products Jun-16 Jun-15
Automobile Financing 42.9% 41.5%
Home Financing 28.0% 26.8%
Term Financing 30.1% 30.1%
Source for industry numbers: BNM Monthly Statistical Bulletin
Islamic Banking: Market Share
Market Share by Product (Malaysia)
Source for industry numbers: BNM Monthly Statistical Bulletin
Market Share
(%)
Amount
(USD million)Issues
#3 Maybank 11 2,490 45
Market Share
(%)
Amount
(RM million)Issues
#1 Maybank 31 8,195 41
Global Sukuk League Table
Ranking
MYR Sukuk League Table
Ranking
33.4% 33.6% 33.5% 33.2%33.8%
24.8%
27.8%29.2%
30.0%31.3%
20.0%
25.0%
30.0%
35.0%
Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
Financing Deposits & Investment Accounts
58
8.6%
14.2%
14.9%
20.1%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Etiqa Ins. & Tak.
GE Ins. & Tak.
Prudential Ins. & Tak.
AIA Ins. & Tak.
8.2%
10.7%
12.8%
0.0% 5.0% 10.0% 15.0%
HL-MSIG Ins. & Tak.
Allianz Insurance
Etiqa Ins. & Tak.
Insurance and Takaful: Performance Overview
Total Assets (RM billion)
Gross Premium
Profit Before Tax (RM million)
• PBT includes estimated transfer of RM52.0 million from Family Fund in 1H FY2016.
Life / Family (New Business) Market Share
No. 4 in Life/Family
(New Business)
No. 1 in General
Insurance and
Takaful
* Market Share is for period Apr’15 – Mar’16 (Source: LIAM / ISM Statistics)
General Insurance and Takaful Market Share
59
57,843.458,280.3
63,376.7 63,048.1
Dec 2015 Jun 2016
PESO
Mil
GrossLoans
CustomerDeposits
2,323.3
2,623.2
383.7 377.2
1H FY2015 1H FY2016
PESO
Mil
Revenue
PBT
Maybank Philippines: Performance Overview
Revenue and PBT
Revenue increased by 12.9% YoY, led by higher net interest
income (NII) and fee income.
Increase in NII contributed by higher loan income, mainly
from term loans. Fee income growth mainly supported by
higher trading profit and service charges.
PBT dropped slightly by PESO6.5 million or 1.7% YoY due to
higher provisioning.
Gross loans rose by 1.5% (annualised) driven by growth in
the auto segment.
Customer deposits contracted by 1.0% (annualised)
attributed to the decline in fixed deposits.
Gross impaired loans ratio was higher due to an increase in
both retail and corporate portfolio. Gross Loans and Deposits
Key Highlights
+12.9% YoY
-1.7% YoY
+1.5%*
-1.0%*
*Annualised growth
Key Ratios 1H FY2016 1H FY2015
Return on assets 0.83% 0.96%
Return on equity 3.58% 6.07%
Cost-to-income ratio 72.33% 73.76%
Loans to Deposit ratio 92.44% 105.38%
Gross Impaired Loans Ratio 4.60% 3.70%
No. of branches 80 79
60
Table of Contents
Financial Results: 2Q FY2016 and 1H FY2016 ended 30 June 2016
Appendix:
5
2
25
1. Financial Performance
2. Community Financial Services
3. Global Banking
4. Maybank Singapore
5. Maybank Indonesia
6. Other segments
28
37
42
47
51
56
Executive Summary
Results Overview
Prospects & Outlook
7. Affiliates 61
61
41,195.1
47,256.7 47,880.9 51,602.8
Dec 2015 Jun 2016
Gross Loans
CustomerDeposits
986.0 943.7
161.1 103.5
1H FY2015 1H FY2016
Revenue
PBT
Revenue decreased by 4.3% YoY, due to lower net interest
income (NII) and non-interest income (NOII).
Decline in NII was mainly caused by higher interest expense
while NOII dropped mainly due to lower investment income.
PBT decreased by 35.8% YoY, due to lower income and
higher provisioning. Overheads however, declined by 7.2%
YoY.
Gross loans expanded by 29.4% (annualised) due to higher
corporate and retail lending.
Customer deposits rose by 15.5% (annualised) contributed by
an increase in CASA.
Gross NPL ratio improved to 1.50% from 2.80%, contributed
by lower NPL balances.
Gross Loans and Deposits
An Binh Bank: Performance Overview
-35.8% YoY
-4.3% YoY
29.4%*
15.5%*
Revenue and PBTKey Highlights
VN
D B
illion
VN
D B
illion
*Annualised growth
Key Ratios 1H FY2016 1H FY2015
Return on assets 0.30% 0.50%
Return on equity 3.60% 5.60%
Cost-to-income ratio 54.86% 56.58%
Loans to deposit ratio 91.58% 97.66%
Gross NPL Ratio 1.50% 2.80%
62
333.8376.6
688.9747.9
Dec 2015 Jun 2016
Gross Loans
CustomerDeposits
PKR b
illion
34.4
30.4
24.2
19.4
1H FY2015 1H FY2016
Revenue
PBTPKR b
illion
Revenue and PBT dropped by 11.6% and 19.8% YoY
respectively, mainly due to decline in non-interest
income (NOII).
Lower NOII was mainly attributed to lower gain on sales
of securities.
Gross loans increased by 25.6% (annualised) mainly
driven by growth in domestic loans.
Customer deposits grew by 17.1% YoY (annualised)
contributed by higher CASA.
Gross NPL ratio improved due to lower NPL balances.
Gross Loans and Deposits
MCB Bank: Performance Overview
+17.1%*
+25.6%*
-11.6% YoY
-19.8% YoY
Revenue and PBTKey Highlights
*Annualised growth
Key Ratios 1H FY2016 1H FY2015
Return on assets 2.06% 2.73%
Return on equity 18.83% 24.60%
Cost-to-income ratio 38.88% 33.41%
Loans to Deposit ratio 50.35% 45.16%
Gross NPL Ratio 5.46% 6.36%
63
Dato’ Amirul Feisal Wan Zahir
Group Chief Financial Officer
Contact: (6)03-2074 7703
Email: [email protected]
MALAYAN BANKING BERHAD
14th Floor, Menara Maybank
100, Jalan Tun Perak
50050 Kuala Lumpur, Malaysia
Tel : (6)03-2070 8833
www.maybank.com
Jeeva Arulampalam
Head, Group Investor Relations
Contact: (6)03-2074 8346
Email: [email protected]
Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the
information that may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or on behalf of the
Company as to the accuracy or completeness of the information or opinions contained in this presentation.
The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of
it form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.
The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or their contents or otherwise arising in
connection therewith.
Investor Relations Contact
Humanising Financial Services