Malayan Banking Berhad (Maybank) Q1 FY11 Analyst Briefing

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Malayan Banking Berhad (Maybank) Q1 FY11 Analyst Briefing

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Malayan Banking Berhad (Maybank) Q1 FY11 Analyst Briefing

  1. 1. FINANCIAL RESULTS 1st Quarter FY2011 ended 30 Sept 2010 Analyst Briefing 12 November 2010
  2. 2. Executive Summary Financial Performance  B siness Re ie Adoption of FRS 139 and Basel II Business Review Country Review Economics and Prospects 1
  3. 3. 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
  4. 4. 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
  5. 5. Executive Summary Financial Performance  B siness Re ie Adoption of FRS 139 and Basel II Business Review Country Review Economics and Prospects 4
  6. 6. PATAMI rose to RM1.03 billion or 16.6% Y Y Q Q RM million 1Q11 1Q10 YoY  Change 4Q10 QoQ  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%
  7. 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
  8. 8. Loans grew in tandem with deposits growth Deposits growthLoans growth driven by CFS and BII though domestically  YoY growth Annualised growth 144.2  218.8  155.5  236.9  154.8  237.8  Malaysia Total RM 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 g loans 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%
  9. 9. 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 7 million +2.4% 624.6  639.7  RMm +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
  10. 10. Overheads was contained in line with income growth at 4.4% YoY +4.4% YoY 1,490.9 QoQ YoY P l t 12 0% 23 1% +1.3% QoQ 1,556.0 1,536.6 * 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 6 107.7  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 3 832.7  123.6  Admin, general expenses & fees & brokerage k i RM mi 676.7  743.3  Marketing Expenses IT Expenses Personnel costs 9 1Q10 4Q10 1Q11
  11. 11. 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 Quality Gross 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
  12. 12. Executive Summary Financial Performance  B siness Re ie Adoption of FRS 139 and Basel II Business Review Country Review Economics and Prospects 11
  13. 13. 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 2010 As  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            
  14. 14. 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 improvement Pre‐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 
  15. 15. 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 Bank Jun 10 Sep 10 Sep 10 Jun 10 Sep 10 Sep 10 Basel 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
  16. 16. Executive Summary Financial Performance  B siness Re ie Adoption of FRS 139 and Basel II Business Review Country Review Economics and Prospects 15
  17. 17. Strong performance in CFS and GWB’s corporate banking segments Global Wholesale Banking (GWB) 3,071  3,208  1QFY10 1QFY11 M million) ‐5.2% 4.4% Global Wholesale Banking (GWB) 1,480  210  411  68 891  147 1,403  240 420 45 961  187 Revenue (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
  18. 18. Community Financial Services: Mortgage Loans and Hire Purchase  Growth in mortgage loans remains above RM500 million Mortgage Loans: Improving Asset Quality 7.6% 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 631.3 569.0 559.6 782.1 601.0 581.2 0.7% 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
  19. 19. 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 3.90 4.13 4.18 3 4 5 12.9% YoY +4.8% annualised llion 1 2 3 RM bil 18 0 1Q10 2Q10 3Q10 4Q10 1Q11
  20. 20. 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 Credit 16.6% ‐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
  21. 21. Global Markets performance boosted by trading activities Growth in Revenue Credit Rating for Private Debt Securities in Malaysia AAA 36% A and Below Growth in Revenue 2.2% 411.4 420.4 n ‐AA to AA 3 % 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 PBT Jun 10 Sep 10 Government Securities Private Debt Securities
  22. 22. 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 Fee 53% 54 0 50 100 150 200 250 FY06 Miscellaneous  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: Bloomber 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 5 6.7% of Bursa  Trading Value   n.a 6.7%
  23. 23. 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 Premium Industry 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% Fire Fire Motor Total Life/Family 1Q11 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%
  24. 24. 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 2.3 1.2 3.2 3.2 5.5 1.2 2.1 3.0 4.4 5.7 2.2 3.3 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 Islamic Total Assets as at Sep 10 RM45.4 billion (+8.2% annualised) Financing to Deposits Ratio 96.6% 96.6% 112.0% Islamic Financing to Total 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%
  25. 25. Executive Summary Financial Performance  B siness Re ie Adoption of FRS 139 and Basel II Business Review Country Review Economics and Prospects 24
  26. 26. 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 4.6 Others 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 3.7 1.8 2.2 2.1 4.2 4.1 4.0 3.3 3.3 3.3 Housing Loans General Commerce 81.2 84.1 Revenue PBT SGD mil SGD billion 1Q10 4Q10 1Q11 Building &  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
  27. 27. 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 323p g p Provisions (393) (251) Profit before taxation and zakat 84 72 Note: • Based on income statement consolidated into Group accounts. 26
  28. 28. Bank Internasional Indonesia Revenue and PBT Net 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  +16.7 Rupiah 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 12.8 14.4 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 Subsidiaries Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10
  29. 29. Bank Internasional Indonesia Asset QualityBranches and ATM 430 740 745 743 748 787 806 844 893 Branches ATM + CDM Q yBranches and ATM 3.20% 3.46% 3.50% 2 79% 2.88% 3.52% 4.74% PSAK 50 & 55 249 252 255 255 255 260 274 295 370 430 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-10 Sep 09 Sep 10
  30. 30. Bank Internasional Indonesia: WOM Finance Monthly Sales VolumeRevenue and PBT 42 1 45.6 44.5 52.8 55.7 54.2 56.9 61.0 63.8 51.1 50.0 60.0 70.0 y Thousands of units on 323 407 300 350 400 450 +26.0% 36.1 40.9 36.8 42.1 10 0 20.0 30.0 40.0 Rupiah Billio 35 59100 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‐10 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
  31. 31. +11 5% MCB Bank: Financial Highlights Revenue and PBT 9.8 10.9 6 0 7.2 +11.5% +20.3 llion YTD YTD6.0 Revenue PBT PKRbi 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% billion NPL Ratio 9.7% 8.6% Net Interest Margin 7.7% 7.9% Capital Adequacy Ratio 23.2% 20.6% Gross loans Deposits PKR 30 Sep 09 Sep 10
  32. 32. Executive Summary Financial Performance  B siness Re ie Adoption of FRS 139 and Basel II Business Review Country Review Economics and Prospects 31
  33. 33. 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-AlcoholicBeverages (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-04 Dec-04 May-05 Oct-05 Mar-06 Aug-06 Jan-07 Jun-07 Nov-07 Apr-08 Sep-08 Feb-09 Jul-09 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
  34. 34. 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% 760 810 860 910 Total 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 Loans Total Loans YoY Growth Household YoY Growth Business YoY Growth 5.0% 10.0% 15.0% 800 850 900 950 1000 RM billio RM billion 2%560 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Business YoY Growth 0.0%750 Jan‐07 Apr‐07 Jul‐07 Oct‐07 Jan‐08 Apr‐08 Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 Gross NPL RM29b Gross NPL ratio: 2 0% 4% 4% 5% 5% 45 50 55 NPL‐3 Months (LHS) Net NPL ratio 13 14 15 16 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 6 7 8 9 10 11 12 Risk Weighted Capital Ratio Core Capital Ratio 13.1% RM bill % 33 0%20 Jan‐07 Apr‐07 Jul‐07 Oct‐07 Jan‐08 Apr‐08 Jul‐08 Oct‐08 Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 6 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10
  35. 35. 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
  36. 36. 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%
  37. 37. 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 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 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 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. Khairussaleh Ramli Chief Financial Officer Contact: (6)03‐2074 4288  Email: khairul@maybank.com.my MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03‐2070 8833 Hazimi Kassim Head, Strategy and Corporate Finance Contact: (6)03‐2074 8101 Email: hazimik@maybank.com.my Raja Indra Putra Head, Investor Relations Contact: (6)03‐2074 8582 Email: rajaindra@maybank.com.my 36 www.maybank.com

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