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FINANCIAL RESULTS1st Quarter FY2011 ended 30 Sept 2010
Analyst Briefing 12 November 2010
Executive Summary
Financial Performance
B siness Re ie
Adoption of FRS 139 and Basel II
Business Review
Country Review
Economics and Prospects
1
Key Highlights
PATAMI f 1Q11 16 6% Y Y d 12 7% Q Q t RM1 028 illi■ PATAMI for 1Q11 grew 16.6% YoY and 12.7% QoQ to RM1,028 million.
■ YoY revenue growth was mainly driven by Corporate Banking (+14.0% ), International Banking
(+7.8% ) and Insurance & Takaful (+27.2% ).
■ YoY profit growth mainly came from Community Financial Services and Corporate Banking which
recorded 63.8% and 21.5% growth respectively.
■ Sustained consumer loans growth of 10.0% and international loans growth at 7.0%, contributed by
30% th t BII d 5% th t Si H G l b 2 2% li d30% growth at BII and 5% growth at Singapore. However, Group loans grew by 2.2% annualised
due to large repayment of corporate loans.
■ Full adoption of FRS 139. Minimal impact on equity of ‐0.8%. Higher impairment ratios in line with
the industrythe industry.
■ Lower allowances for loss on loans due to improved bad debt recovery and higher specific
provisions in the previous corresponding period.
With d ti f B l II d RWCA F k it l i b t ith CAR* t 13 95% f■ With adoption of Basel II under RWCA Framework, capital remains robust with CAR* at 13.95% for
the Bank and 14.15% for the Group.
■ Normalised Return on Equity of 14.8% is on track to achieve full year target of 14%.
2
* Assuming full reinvestment of electable portion under the Dividend Reinvestment Plan
YTD Key Performance Indicators (KPI) for FY2011
Headline KPIs Target 1Q11 achievements
Return on Equity 14% 14.8% (normalised)
Loans and Debt Securities Growth 12% 4.6% annualised
h hOther targets Target 1Q11 achievements
Loans Growth
• Malaysia 12% ‐0.1%
• Singapore 5% 5.0%
• BII 24% 30.0%
Net Interest Margin Stable 2.75% (‐7 bps YoY)
Note: Loans growth for Singapore and BII are in local currency
Net Interest Margin Stable 2.75% ( 7 bps YoY)
Dividend Payout Ratio 40%‐60% Dividend to be determined in 1H11
3
Executive Summary
Financial Performance
B siness Re ie
Adoption of FRS 139 and Basel II
Business Review
Country Review
Economics and Prospects
4
PATAMI rose to RM1.03 billion or 16.6%
Y Y Q QRM million 1Q11 1Q10
YoY Change
4Q10QoQ
Change
Net interest income 1,774.5 1,627.6 9.0% 1,792.2 ‐1.0%
Income from Islamic Banking 338.2 381.6 ‐11.4% 355.7 ‐4.9%
Net income from insurance business 86.7 72.0 20.5% 168.5 ‐48.5%
Non‐interest income 1,008.2 990.1 1.8% 878.8 14.7%
Net income 3,207.6 3,071.3 4.4% 3,195.2 0.4%
Overhead expenses (1 556 0) (1 490 9) 4 4% (1 536 5) 1 3%Overhead expenses (1,556.0) (1,490.9) 4.4% (1,536.5) 1.3%
Operating Profit before allowances for losses on loans
1,651.6 1,580.4 4.5% 1,658.7 ‐0.4%
Allowance for losses on loans (264.7) (417.7) ‐36.6% (311.2) ‐14.9%
Impairment losses on securities (13.9) (32.3) ‐56.8% (23.4) ‐40.6%
Operating Profit 1,373.0 1,130.4 21.5% 1,324.1 3.7%
Share of profits in associates 31.3 25.8 21.5% 35.0 ‐10.6%
Profit before taxation and zakat 1,404.3 1,156.2 21.5% 1,359.1 3.3%, , ,
Taxation & Zakat (350.7) 249.4 40.6% (384.1) ‐8.7%
Minority Interest (25.5) (25.0) 2.3% (62.5) ‐59.2%
PATAMI 1,028.1 881.8 16.6% 912.5 12.7%
5
EPS 14.53 sen 12.46 sen 16.6% 12.89 sen 12.7%
Normalised PBT for 1Q11 grew 14.1% YoY
RM million 1Q11 1Q10 YoY
Profit before tax (PBT) 1,404.3 1,156.2 21.5%
Unrealised (Gains)/Losses on derivatives (171.7) (84.5)
Forex Realised/MTM (Gains)/Losses (37.8) (29.3)
Amortisation on Core Deposits (BII) 20.4 22.9p ( )
Normalised PBT 1,215.2 1,065.3 14.1%
6
Loans grew in tandem with deposits growth
Deposits growthLoans growth driven by CFS and BII though domestically YoYgrowth
Annualisedgrowth
144.2
218.8
155.5
236.9
154.8
237.8
Malaysia
TotalRM billion Sep‐10 Jun‐10 Sep‐09
Annualised growth
YoY Growth
Community Financial Services 105 7 104 4 94 5 4 9% 11 8%
p gloans were affected by chunky repayments
+7.4%
+8.7%
growthgrowth
‐1.7%
+1.5%
15.4
19.6
50.2
21.5
55.4
21.6
BII (Rupiah'bn)
Singapore (SGD'm) Sep‐10
Jun‐10
Sep‐09 +28.7%
Services 105.7 104.4 94.5 4.9% 11.8%
Consumer 78.4 76.5 68.6 10.0% 14.3%
Total Mortgage 35.2 34.6 32.0 7.7% 10.0%
Auto Finance 23.3 22.8 20.8 10.1% 12.0%
+10.3%
+41.5%
+2.83%
11.1 14.8 14.1 Other Oversea &
Subcos
Credit Cards 4.2 4.1 3.7 4.5% 12.9%
Unit Trust 14.2 13.7 10.6 16.7% 34.4%
Other Retail Loan 1.5 1.4 1.5 16.7% -2.1%
Commercial + SME 27.2 27.9 25.8 -9.2% 5.4% Loans‐to‐Deposit ratio
+26.2%‐21.0%
88 8%89.3%Malaysia
% %
GWB (M'sia Ops) 40.1 41.4 39.4 -12.9% 1.7%
Other Loans 0.2 0.2 0.1 25.7% 165.4%
Total Domestic 146.0 146.0 134.0 -0.1% 8.9%
Loans to Deposit ratio
87.3% 86.8% 87.3%Group
82.4% 92.1% 88.4%BII
87.9%88.8%International 70.3 69.1 65.8 7.0% 6.9%
Singapore (SGD mn) 17.8 17.5 16.6 5.0% 6.6%
BII (Rupiah bn) 50.8 47.3 36.5 30.0% 39.1%
Others 11.2 11.8 12.1 -17.9% -7.4%
84.0%
82.6% 82.6%
Singapore
7
1Q10 4Q10 1Q11
Gross Loans 216.4 215.2 200.1 2.2% 8.2%
Non‐Interest Income including insurance grew 3.1% YoY
+3.1% (including insurance)
+1.8%
1,095.01,062.1
990.1 1,008.2
639 7milli
on
+2.4%
624.6 639.7
RM
m
+41.5%+32.8% +97.3%‐17 2% 20 5%
152.9 104.4 59.1 94.3 72.0216.3
138.7
48.9
186.1 86.8
17.2% +20.5%
Total non‐interest income
Commission, service charges
and fees
Foreign Exchange income from customers
Investment & Trading Income
Other Income Unrealised gain/(losses) on securities & derivatives
Net income from insurance business
1Q10 1Q11
8
Overheads was contained in line with income growth at 4.4% YoY
+4.4% YoY
1,490.9 QoQ YoYP l t 12 0% 23 1%
+1.3% QoQ
1,556.01,536.6
*
569.4 632.5 524.9
Personnel costs 12.0% 23.1%IT Expenses 3.2% ‐10.1%Marketing Expenses 64.6% ‐28.0%Admin, general expenses & f & b k 17 0% 7 8%
*
123 6107.7
111.2 121.2 53.0
87.3
& fees & brokerage ‐17.0% ‐7.8%
Total 1.3% 4.4%
illion *Personnel cost rose 23.1 YoY due to increase in COLA, higher
bonus provisions and earlier timing of salary increment.
743 3832.7
123.6
Admin, general expenses & fees & brokerage
k i
RM m
i
676.7 743.3 Marketing Expenses
IT Expenses
Personnel costs
9
1Q10 4Q10 1Q11
Maybank Group: Key Ratios
4Q10 3Q10 2Q10 1Q10
Net Interest Margin 2.88% 2.76% 2.77% 2.82%Return on Equity (normalised) 14.5% 13.8% 14.3% 13.4%
1Q11
2.75%14.8%
Fee to Income Ratio 35.2% 37.5% 38.4% 35.6%Cost to Income 46.9% 47.8% 48.1% 48.5%Adj. Cost to Income * 45.5% 49.7% 48.8% 48.4%Loan‐to‐Deposit Ratio 86.8% 84.8% 84.5% 87.3%
32.9%48.5%50.0%87.3%
Asset QualityGross NPL Ratio 4.70% 2.79% 2.90% 3.05% 3.26% 3.50%Net NPL Ratio 2.99% 1.20% 1.22% 1.36% 1.43% 1.60%
Post‐FRS 139 Pre‐FRS 139 Pre‐FRS 139
Net NPL Ratio 2.99% 1.20% 1.22% 1.36% 1.43% 1.60%Loan Loss Coverage 84.1% 125.6% 124.5% 120.5% 117.8% 113.2%SP / Impairment charge off rate (bps) 49 43 57 38 48 77 SP / Impairment charge off rate (bps) (exc. BII) 37 31 31 33 36 65
Capital Adequacy (Group)Capital Adequacy (Group)Core Capital Ratio 11.48%** 10.70% 11.06% 10.67% 10.76% 10.43%Risk Weighted Capital Ratio 14.15%** 13.64% 14.67% 14.50% 14.61% 14.28%
* Adjusted Cost to Income ratio: Overhead Expenses is adjusted to exclude insurance claims
10
**After Basel II and full electable portion dividend to be reinvested
Executive Summary
Financial Performance
B siness Re ie
Adoption of FRS 139 and Basel II
Business Review
Country Review
Economics and Prospects
11
Adoption of full FRS139: minimal impact to shareholders’ funds
As
■ Maybank aligns itself with international standards by adopting full FRS 139 with minimal impact to
shareholders’ funds.
1 July 2010As
previously stated
Effect of FRS 139
Effect of FRS 4
As restated
Share Capital 7,078 7,078 Reserves ‐
Share Premium 5,903 5,903 Statutory Reserve 5,554 5,554 Capital Reserve 15 15
Unrealised Holding Reserve / (Deficit) 341 (48) 293
Exchange Fluctuation Reserve (949) (949) Revaluation Reserve 9 9 Retained Profits 9,926 (172) 2 9,756
27,877 (220) 2 27,659 Minority Interest 788 (6) 1 783
Total Equity 28,665 (226) 3 28,442
12
Total Equity 28,665 (226) 3 28,442
Asset Quality: More stringent methodology for FRS139
The more refined and stringent methodology under FRS139 resulted in higher impaired loan ratio though GP 3
112.87% 113.21% 117.79% 120.49% 124.52% 125.59% 87.58% 84.13%
Post‐FRS 139.
Loan loss coverage
provisioning continues to show improvementPre‐FRS 139.
2.83% 2.99%3.46% 3.50% 3.27%
3.07% 2.89% 2.79%
4.63% 4.70%
Loan loss coverage
Gross Impaired Loan Ratio
Net Impaired Loan Ratio
9.96 10.12
1.64% 1.60% 1.43% 1.36% 1.22% 1.20%
6.72 6.96 6.67 6.31 6.19 6.02
RM billion
4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 Day 1 1 Jul 10
1Q11 30 Sep
13
10Gross NPL / Impaired Loans
Full adoption of Basel II RWCA Framework
■ Maybank’s adoption of Basel II Risk Weighted Capital Adequacy (RWCA) Framework brings
it in line with regional peers.
■ Under Basel II, Risk Weighted Assets (RWA) increased due to inclusion of Operational RWA
of RM22.0 billion but mitigated by decrease in Credit RWA by RM38.9 billion.
■ Reduction in capital was due to different treatment of capital computation and provision
C i l Ad i h B l II d i h h d li d i i i h h■ Capital Adequacy with Basel II adoption, though declined, remains promising when the
transition period ends.
Group BankJun 10 Sep 10 Sep 10 Jun 10 Sep 10 Sep 10Basel I Basel I Basel II Basel I Basel I Basel II
Core capital ratio, assuming:full electable portion paid in cash 10.10% 9.84% 10.56% 13.78% 12.90% 12.80%full electable portion reinvested 10.97% 10.70% 11.48% 14.91% 14.01% 13.95%
Risk‐weighted capital ratio, assuming:full electable portion paid in cash 13.71% 12.79% 13.23% 13.78% 12.90% 12.80%full electable portion reinvested 14.58% 13.64% 14.15% 14.91% 14.01% 13.95%
14
Executive Summary
Financial Performance
B siness Re ie
Adoption of FRS 139 and Basel II
Business Review
Country Review
Economics and Prospects
15
Strong performance in CFS and GWB’s corporate banking segments
Global Wholesale Banking (GWB)
3,071
3,208
1QFY10
1QFY11
M m
illion)
‐5.2%
4.4%Global Wholesale Banking (GWB)
1,480
210 411
68
891
147
1,403
240 420 45961
187
Revenu
e (RM
27.2%14.0%2.2%
‐34.2%
7.8%
‐64.8%
68 147
‐136
240 420 45 187
‐48
Total Community Financial Services
(CFS)
Corporate Banking Global Market Investment Banking International Banking
Insurance, Takaful & Asset
Management
Head Office & Others
million)
21 5%
1,156
1,404
( ) g
ore tax (RM m
63.8%4.3% ‐10.3%
21.5%
331 135
354
59
324
80 ‐126
542
164 369
7
290 79 ‐48
‐1.1%
Profit befo
21.5%
4.3%‐88.1%
10.3%
‐61.9%
16
Total Community Financial Services
Corporate Banking Global Market Investment Banking International Banking
Insurance, Takaful & Asset
Management
Head Office & Others
Community Financial Services: Mortgage Loans and Hire Purchase
Growth in mortgage loans remains above RM500 million Mortgage Loans: Improving Asset Quality7.6% 7.4%
6.9%6.3%
5.4%5.0%
556.8
855.3 888.2
783.2
665.8
g g Mortgage Loans: Improving Asset Quality
256.4
RM million
4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Gross NPL
4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Hire Purchase : Asset Quality remains lowGrowth in HP loans remains above RM500 million
631.3569.0 559.6
782.1
601.0 581.20.7%
0.8%0.9%
0.8%
0.6%0.7%
RM million
17
4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Gross NPL
Gaining Market Share Card Growth above industry
Community Financial Services: Cards continues to gain market share
Sep 10 Sep 09
Cardbase 16.6% 15.2%
Billings 22.3% 21.5%
YoY Maybank Industry*
Cardbase ‐13.7% ‐21.1%
Billings 18.0% 13.2%
• Card base excludes Debit cards
Billings 22.3% 21.5%
Receivables 14.2% 14.2%
Merchant Sales 29.7% 28.6%
Billings 18.0% 13.2%
Receivables 12.9% 12.8%
Merchant Sales 14.3% 9.9%
• Industry figures for cards includes commercial banks and non FI players• Card base excludes Debit cards• Merchant and Billings consist of transactions done through
Credit, Charge and Debit cards
Cards Receivables
• Industry figures for cards includes commercial banks and non‐FI players
+12.9% YoY
3.70 3.87 3.904.13 4.18
3
4
5
12.9% YoY
+4.8% annualised
llion
1
2
3
RM bil
18
0
1Q10 2Q10 3Q10 4Q10 1Q11
GWB gross loans affected by chunky repayments
GWB gross loans declined by 12.9% annualised due to chunky repayments
6,726
12 729
6,650 Trade Finance ‐4.5%
12,222
20,729
12,729
T L & O d ft
Short Term Revolving Credit16.6%
‐31 4%22,495
‐ 5,000 10,000 15,000 20,000 25,000
Term Loan & Overdraft 31.4%
RM million
Sep 10 Jun 10
19
Global Markets performance boosted by trading activities
Growth in RevenueCredit Rating for Private Debt Securities in Malaysia
AAA36%A and Below
Growth in Revenue
2.2%
411.4 420.4
n
‐AA to AA3 %
33%
RM million
31%
Group Securities Portfolio grew 33.8% annualised
1Q10 1Q11
Revenue
Growth in PBT(Total = RM58 8 billion as at 30 Sep 10)
354.1 369.7
4.4%
on
+34.4%
+33.0%30.0
32.6
24.1 26.1
(Total = RM58.8 billion as at 30 Sep 10)
1Q10 1Q11
RM billion
RM milli
20
1Q10 1Q11
PBTJun 10 Sep 10
Government Securities Private Debt Securities
Brokerage activities contributed majority of IB income
Fee based Income 1Q11 Fee based Income SegmentationQ g
107 3
196.2
52.6
FY09
FY10
1QFY11
Arrangers' Fees
Corporate Advisory Fees
10%
Underwriting / Placement Fees
18%
97.9
198.3
107.3
FY07
FY08
FY09
Agency / Guarantee Fees
1%
8%
Brokerage Fee53%
54
0 50 100 150 200 250
FY06Miscellaneous Fee Income
10%RM million
Industry Position & Market Shares : July 10 – Sept 10
rg
Industry Rank Total Value (bil) Deals/Issues Market Share
M&A 3 RM 12.28 6 25.1%
Source: B
loom
ber
Equity & Rights Offerings 2 RM 2.16 8 20.6%
Debt Markets ‐Malaysia Domestic Bonds 2 RM 2.58 14 19.8%
Debt Markets ‐Malaysian Ringgit Islamic Bonds 2 RM 2.50 10 26.9%
21
Equity Brokerage 56.7% of Bursa Trading Value
n.a 6.7%
Etiqa maintains pole position in Life/Family and General
Market Share: No. 1 in Life/Family (new business) Market Share: No. 1 in General
9.3%
10.8%
Allianz General
Etiqa
13.2%
20.9%
ING Insurance
Etiqa
5.1%
6.3%
7.3%
Tokio Marine
MSIG
Kurnia
5.2%
10.9%
11.4%
MAA
Great Eastern Life
Prudential
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
Overall Loss Ratio Lower Than Industry 45 2% (Maybank) vs 60 5% (Industry)
Source : ISM Report
Combined Gross PremiumIndustry
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Single Premium
Credit Premium
Regular Premium
Combined Gross Premium 45.2% (Maybank) vs 60.5% (Industry)
79.2% 70.4% 66.6% 75.8% 50.7%Motor
-0.9%
-76.8%
-0.2%
48.3%
41.3%Misc.
y
60.5%
79.4%
45 0%
+62%
15 1%32.0%
21 0%9.3%
29.4%
FireFire
Motor
Total Life/Family1Q11
1Q10+17.7%
76.8%41.0% 43.3% 45.3%
‐8.4% 7.3% 6.4% 20.3%
281.7%
MAT
45.0%
21.1%
26.6%+5.2%
10 9%
-5.7%
22
15.1% 21.0%
1Q10 2Q10 3Q10 4Q10 1Q110 200 400 600 800 1000
Total General +10.9%
Maybank Islamic maintains strong financing growth of 25.8% YoY
Maybank Islamic financing (25.8% YoY growth)Income and PBT +12 3%
465.7 483.9 508.0 11.4
12.4
5 5
12.8
5.7 5 7
y g ( g )
+5.6%+147.8%
+83.3%+3.1% +21.9%
+12.3%+9 % YoY
+167% YoY
+5% QoQ
million
73.1 150.0
195.3
5.4
2.31.2
3.2 3.2
5.5
1.2 2.13.0
4.45.7
2.23.3 3.9
AITAB (Auto) House Term Cash Line‐i Trade Term
+30% QoQ
RM m
1Q10 4Q10 1Q11
Gross Attributable Income PBT and zakat
( )Financing Financing Financing Financing
1Q10 4Q10 1Q11
L di k h (b T l A )I i k i f M b k I l i
Consumer: +27% YoY Business: +24% YoY
1Q11 4Q10 1Q10
Financing to Deposits Ratio 96.6% 96.6% 112.0%Maybank Islamic,
17%EON Cap
Alliance Islamic, 2%
Others, 17%
Leading market share (by Total Assets)Improving key ratios for Maybank IslamicTotal Assets as at Sep 10 RM45.4 billion (+8.2% annualised)
Financing to Deposits Ratio 96.6% 96.6% 112.0%
Islamic Financing toTotal Domestic Loans
24.7% 24.0% 21.8%CIMB Islamic, 14%
Bank Islam, 12%
Public Islamic, 10%
Am Islamic, 7%
RHB Islamic 4%
Hong Leong Islamic, 4%
Kuwait Finance House, 4%
Islamic, 3%
23
Bank Muamalat, 6%
RHB Islamic, 4%
Executive Summary
Financial Performance
B siness Re ie
Adoption of FRS 139 and Basel II
Business Review
Country Review
Economics and Prospects
24
Revenue and PBT rose 5.2% and 9.4% YoY respectively Diversified Loan Portfolio+6 6% YoY
Singapore: PBT improved 3.6% on higher income and lower provision
3 3 3 3
4.2 4.4 4.6Others
Car Loans
16.65 17.54 17.75150.4 158.2
84 1
+5.2%
+3.6%
+6.6% YoY
+5.0% annualised
llion
3.2 3.6 3.71.8 2.2 2.14.2 4.1 4.0
3.3 3.3 3.3
Housing Loans
General Commerce
81.2 84.1 Revenue
PBTSGD mil
SGD billion
1Q10 4Q10 1Q11Building & Construction
1 01%Loans Growth vs IndustryAsset Quality improving
1Q10 1Q11
1.01% 0.93%
0.77% 0.75%0.63%
0.58%
32.0%18.4%
23.4% 4.97%8.6% 6 6%
13.6%16.2%
30.6%
11.4% 11.9%
0.16%0.10% 0.09% 0.07% 0.09% 0.07%
4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
8.6% 6.6%-1.38%
Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Sep-10
25
Gross NPL ratio Net NPL ratio Maybank Singapore Growth Industry Growth
Bank Internasional Indonesia
I St t tIncome Statement
Rp Billion Jul 10-Sept 10 Jul 09-Sept 09
Interest income 1 688 1 474Interest income 1,688 1,474 Interest expense (739) (721) Net interest income 949 753 Non-interest income 512 439Non interest income 512 439 Gross Operating income 1,461 1,192 Operating expenses (excluding prov.) (984) (869) Operating income before provision 477 323 p g pProvisions (393) (251)
Profit before taxation and zakat 84 72
Note:• Based on income statement consolidated into Group accounts.
26
Bank Internasional Indonesia
Revenue and PBTNet Interest Margin+22 6% Net Interest Margin
6.85%
6.15% 6.10% 6.09%6.62%
6.05%5.90%
1,192
1,461 Revenue
PBT
+22.6%
h billion
5.91%
72 84
+16.7Rupiah
Loan‐to‐Deposit Ratio
4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Gross Loans: Composition (Rp trillion) and growth (+38%)17.7
YoY
1Q10 1Q11
89 3% 89.9%91.3%
(+45%)
(+36%)
8.9 9.6
12.0
12.814.4
12.2 13.0
17.6
86.6%
89.3%
82.4% 82.4% 82.9%
85.4%
(+20%)(+33%)
(+32%)2.3 2.1 3.0
0.50.40.4
Sep‐09 Dec‐09 Sep‐10
Corporate SMEC Consumer Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10
27
Corporate SMEC Consumer
Syariah SubsidiariesDec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10
Bank Internasional Indonesia
Asset QualityBranches and ATM
430
740 745 743 748 787 806 844893 Branches
ATM + CDM
Q yBranches and ATM
3.20% 3.46% 3.50%2 79% 2.88%
3.52%
4.74%
PSAK 50 & 55
249 252 255 255 255 260 274 295370
430
S S
2.00%2.79%
1.85% 1.87% 1.56% 1.92% 1.87% 1.97%
2.39%2.79% 2.88%
Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
`
Dec‐08
Mar‐09
Jun‐09
Sep‐09
Dec‐09
Mar‐10
Jun‐10
Sep‐10
Jun‐11
Jun‐12
Projected
Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
Net NPL Gross NPL
Capital Adequacy: bank only( dit & k t i k)
Cost to Income Ratio(credit & market risk)
19.44% 20.20% 19.73% 19.04%
14 71% 14 39% 15.57% 14 35%
66.7%
63.9%
14.71% 14.39% 15.57% 14.35%
28
Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10Sep 09 Sep 10
Bank Internasional Indonesia: WOM Finance
Monthly Sales VolumeRevenue and PBT
42 145.6 44.5
52.855.7 54.2
56.961.0
63.8
51.150.0
60.0
70.0
yThousands of units
on
323
407
300
350
400
450+26.0%
36.140.9
36.842.1
10 0
20.0
30.0
40.0
Rupiah
Billio
3559100
150
200
250
300
Total Revenue
Profit Before Tax+68.6%
0.0
10.0
Sep‐09
Oct‐09
Nov‐09
Dec‐09
Jan‐10
Feb‐10
Mar‐10
Apr‐10
May‐10
Jun‐10
Jul‐1
0
Aug‐10
Sep‐10
A Q li D f lt R t ( 90 d )
35
‐
50
1Q10 1Q11
Asset Quality Default Rate (>90 days)
14.0%
11.8%
5.50%
PSAK 50 & 55
5.8% 6.7% 7.1%Default Rate
2.96%
1.94% 1.83% 1.85%
3.43%
1.31% 1.06% 1.17%0.73%
Gross NPL
Net NPL
29
3Q09 4Q09 1Q10 2Q10 3Q103Q09 4Q09 1Q10 2Q10 3Q10
+11 5%
MCB Bank: Financial Highlights
Revenue and PBT
9.810.9
6 0
7.2
+11.5%
+20.3
llion
YTD YTD6.0 Revenue
PBTPK
R b
i Key Ratios YTD Sept 10
YTD Sept 09
ROA 3.2% 3.5%
ROE 26 0% 28 3%
%
1Q10 1Q11
Loans and Deposits
ROE 26.0% 28.3%
Cost to Income Ratio 56.1% 51.4%
Loan-Deposit Ratio 58.5% 69.9%
253.2 246.9
362.1
422.3
Gross loans
‐2.5%
+16.6%
billio
n
NPL Ratio 9.7% 8.6%
Net Interest Margin 7.7% 7.9%
Capital Adequacy Ratio 23.2% 20.6%Gross loans
DepositsPKR
30
Sep 09 Sep 10
Executive Summary
Financial Performance
B siness Re ie
Adoption of FRS 139 and Basel II
Business Review
Country Review
Economics and Prospects
31
Malaysia: Economic Rebound
Inflation expected to rise to 1.7% in 2010 (2011: 2.5%)2010 GDP revised upward to 7.5%; 6.1% in 2011
5
10
15
20
25
8
10
12
14
Transport (RHS)
3
6
9
12
130
140
150 CPI and components (% YoY)Quarterly GDP and annual growth rate
p ;
(25)
(20)
(15)
(10)
(5)
0
0
2
4
6
8
Utilities, Housing & Other Fuels
Food & Non-Alcoholic Beverages
(9)
(6)
(3)
0
90
100
110
120
6 6 6 7 7 7 7 8 8 8 8 9 9 9 9 0 0 (25)0
Jun-
02
Nov
-02
Apr-
03
Sep-
03
Feb-
04
Jul-0
4
Dec
-04
May
-05
Oct
-05
Mar
-06
Aug-
06
Jan-
07
Jun-
07
Nov
-07
Apr-
08
Sep-
08
Feb-
09
Jul-0
9
Dec
-09
May
-10
3.90 4.0
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
RMb (LHS) % YoY (RHS) % QoQ (RHS)
After July 8 hike to 2.75%, interest rate is not expected to rise until 2Q11
Ringgit stabilising at RM3.10‐3.15 by year end
3 40
3.50
3.60
3.70
3.80
2 0
2.5
3.0
3.5 Overnight Policy Rate: Bank Negara Malaysia
Ringgit Malaysia per USD 25bp hikes in Mar, May and July 10
3.00
3.10
3.20
3.30
3.40
0.5
1.0
1.5
2.0
4 4 4 5 5 5 6 6 6 7 7 7 8 8 8 9 9 9 0 0
Overnight Policy Rate: Bank Negara MalaysiaOvernight Policy Rate
32
Aug
-05
Dec
-05
Mar
-06
Jun
-06
Sep
-06
Dec
-06
Mar
-07
Jun
-07
Sep
-07
Dec
-07
Mar
-08
Jun
-08
Sep
-08
Dec
-08
Mar
-09
Jun
-09
Sep
-09
Dec
-09
Mar
-10
Jun
-10
Sep
-10
Apr
-04
Aug
-04
Dec
-04
Apr
-05
Aug
-05
Dec
-05
Apr
-06
Aug
-06
Dec
-06
Apr
-07
Aug
-07
Dec
-07
Apr
-08
Aug
-08
Dec
-08
Apr
-09
Aug
-09
Dec
-09
Apr
-10
Aug
-10
Total Loans grew 11 9% YoY for Sep 2010 Total Deposits grew 8.9% YoY for Sep 2010
Malaysia: Banking Sector
12%
14%
16%
18%
760
810
860
910Total Loans grew 11.9% YoY for Sep 2010
20.0%
25.0%
1050
1100
1150
Total Deposits Total Deposits YoY Growth
p g p
on n
4%
6%
8%
10%
610
660
710
760
Total LoansTotal Loans YoY GrowthHousehold YoY GrowthBusiness YoY Growth
5.0%
10.0%
15.0%
800
850
900
950
1000
RM billio
RM billion
2%560
Jan-
07
Apr-
07
Jul-0
7
Oct
-07
Jan-
08
Apr-
08
Jul-0
8
Oct
-08
Jan-
09
Apr-
09
Jul-0
9
Oct
-09
Jan-
10
Apr-
10
Jul-1
0
Business YoY Growth0.0%750
Jan‐07
Apr‐07
Jul‐0
7
Oct‐07
Jan‐08
Apr‐08
Jul‐0
8
Oct‐08
Jan‐09
Apr‐09
Jul‐0
9
Oct‐09
Jan‐10
Apr‐10
Jul‐1
0
Gross NPL RM29b Gross NPL ratio: 2 0%
4%4%5%5%
45
50
55
NPL‐3 Months (LHS) Net NPL ratio
13141516 14.8%
Capital Adequacy remains strong
13 1%
Gross NPL RM29b, Gross NPL ratio: 2.0%
ion
0%1%1%2%2%3%3%
20
25
30
35
40
6789
101112
Risk Weighted Capital Ratio
Core Capital Ratio
13.1%RM
bill
%
33
0%20
Jan‐07
Apr‐07
Jul‐0
7
Oct‐07
Jan‐08
Apr‐08
Jul‐0
8
Oct‐08
Jan‐09
Apr‐09
Jul‐0
9
Oct‐09
Jan‐10
Apr‐10
Jul‐1
0
6
Jan-
07
Apr-0
7
Jul-0
7
Oct-0
7
Jan-
08
Apr-0
8
Jul-0
8
Oct-0
8
Jan-
09
Apr-0
9
Jul-0
9
Oct-0
9
Jan-
10
Apr-1
0
Jul-1
0
Economic Transformation Plan (ETP): Banks to benefit
■ Banks to benefit from the filtering down of a larger domestic economic activity base
■ Potential loan base of RM1.29 trillion based on RM1.4 trillion investment requirement under the ETP (2011‐2020)
■ Of which 92% is targeted to come from the private sector (8% from public sector)
■ Accelerate private pensions
■ Banks to also benefit indirectly from enlarged activities under the 10 Entry Point Projects (EPP) for Financial Services NKEA:
■ Revitalise equity markets ■ Accelerate private pensions
■ Spur growth of wealth management
■ Kick start and sustain an asset
■ Revitalise equity markets
■ Deepen and broaden bond markets
■ Transform development financial institutions ■ Kick‐start and sustain an asset
management industry
■ Create regional champions
■ Global Islamic financial hub
institutions
■ Create integrated payment eco‐system
■ Insuring our population
34
■ Global Islamic financial hub■ Insuring our population
Prospects
■ Banking sector prospects remain positive, supported by improved consumer and business sentiment on the back of sustained economic growth, forecast at 7.5% in 2010 and 6.1% in 2011.
■ Competition in the financial services industry is intensifying, driven by strong domestic players, new entries and further liberalisation of the banking sectornew entries, and further liberalisation of the banking sector.
■ With focus on its three key home markets of Malaysia, Singapore and Indonesia and through its realigned organisation structure, focusing on three key business pillars of Community Financial Services (CFS), Global Wholesale Banking (GWB) and Insurance and Takaful, growth in loans and debt securities is expected to gain momentum towards meeting the target of 12% for FY2011.
■ No significant impact from new Bank Negara cap on Loan to Value for mortgages since Maybank’s focus has been on first time home owners, up graders and for own occupation.
■ Maybank will continue to focus on improving asset quality and lowering credit cost as well as invest in people, technology and processes
■ Capital and risk management continuously being enhanced to meet more stringent Basel II requirements Under the new Basel III capital requirements Maybank would be able to meet therequirements. Under the new Basel III capital requirements, Maybank would be able to meet the minimum Core Equity Ratio of 7.0% without the need to raise equity capital apart from the Dividend Reinvestment Plan.
■ Barring unforeseen circumstances, the Group is expected to perform better than the previous f l d k ( ) f
35
financial year and is on track to meet its target Return on Equity (ROE) of 14%
Thank YouThank You
Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain allthe information that may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or onbehalf 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 partThe 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 partof 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 inconnection therewith.
Khairussaleh RamliChief Financial OfficerContact: (6)03‐2074 4288 Email: [email protected]
MALAYAN BANKING BERHAD14th Floor, Menara Maybank100, Jalan Tun Perak50050 Kuala Lumpur, MalaysiaTel : (6)03‐2070 8833
Hazimi KassimHead, Strategy and Corporate FinanceContact: (6)03‐2074 8101Email: [email protected]
Raja Indra PutraHead, Investor RelationsContact: (6)03‐2074 8582Email: [email protected]
36
www.maybank.com