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Malayan Banking Berhad's Analyst Briefing for Q2 2010. http://www.maybank.com.my

Malayan Banking Berhad's Analyst Briefing for Q2 2010. http://www.maybank.com.my

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    Analyst Briefing 2 Q10 Analyst Briefing 2 Q10 Presentation Transcript

    • FINANCIAL RESULTS Half Year FY2010 ended 31 December 2009 Analyst Briefing 9 February 2010
    • 1H10 Group Financial Performance Sector Performance Malaysian Economy and Banking Sector Prospects 2
    • Key Highlights Half Year PATAMI rose 43.5%% YoY to RM1.875 billion due to stronger performance by consumer, corporate, investment banking, insurance and global markets as well as Singapore and Indonesian operations. Quarterly PATAMI rose 12.7% QoQ or 35.3% YoY to RM993.5million. Overall revenue grew 35.5% YoY and 21.3% QoQ, due to : • improved loan volume and stable NIM contributing to 17.7% YoY and 3.4% QoQ growth in NII; • 41% YoY growth in Commission, Service Charges and Fees; and • 24.9% YoY growth income from Islamic Banking. Operating profit rose 60.5% YoY to RM2.495 billion or 20.8% higher QoQ. Loan Loss Provision rose 30.6% YoY but declined 41.7% QoQ. Asset Quality continued to improve with Net NPL ratio declining to 1.43% from 1.60% the preceding quarter and 1.80% a year ago. Group loans grew 9.9% on annualised basis while domestic loans grew by 8.8%. BII in turn recorded 23.5% loans growth for the period. Capitalisation remains strong with CAR at 14.7% for the Bank and 14.6% for the Group. Board has approved the payment of interim dividend of 11 sen (gross) or 8.25 sen (net) per share, representing 31.1% dividend payout ratio. Annualised ROE of 14.6% (after dividend) exceeds our Headline KPI. 3
    • Quarterly Net Profit up 35.3% YoY and 12.7% QoQ Quarter RM million QoQ YoY 2Q10 1Q10 change 2Q09 change % % Net Interest Income 1,683.1 1,627.6 3.4% 1,547.4 8.8% Islamic Banking Income 355.9 381.6 -6.7% 305.1 16.7% Non Interest Income 1,218.1 1,142.0 6.7% 832.2 46.4% Net Income 3,257.1 3,151.1 3.4% 2,684.7 21.3% Overhead Expenses (1,638.7) (1,570.7) 4.3% (1,403.0) 16.8% Overhead Expenses (1,565.5) (1,490.9) 5.0% (1,329.7) 17.7% Claims Incurred (73.2) (79.8) -8.3% (73.3) -0.1% Operating Profit bef. LLP 1,618.4 1,580.4 2.4% 1,281.7 26.3% ● Loan Loss Provision (LLP) (243.6) (417.7) -41.7% (321.1) -24.1% Net Specific Provision (241.8) (379.9) -36.4% (428.0) -43.5% General Provision (1.8) (37.8) -95.2% 106.9 -101.7% ● Impairment losses/(writeback) on securities (9.8) (32.3) -69.5% (22.6) -56.4% Operating Profit 1,365.0 1,130.4 20.8% 938.0 45.5% ● (Allowance)/write back of allowance - - - for non-refundable deposit - - ● Impairment Loss in subsidiary and associate - - - - - ● Profit/(Loss) from associates 35.0 25.8 35.5% 22.3 56.9% Profit before tax 1,400.0 1,156.2 21.1% 960.3 45.8% Tax (376.6) (249.5) 51.0% (225.6) 66.9% Minority Interest (29.9) (25.0) 19.8% (0.1) 27564.8% Profit after Tax and MI 993.5 881.8 12.7% 734.6 35.3% EPS (sen) 14.04 12.46 12.7% 13.35 5.2% 4
    • Half Year Net Profit rose 43.5% YoY Half Year RM million YoY 1H10 1H09 change % 1H09 Net Interest Income 3,310.7 2,812.4 17.7% Islamic Banking Income 737.5 590.3 24.9% Non Interest Income 2,360.1 1,327.2 77.8% Net Income 6,408.2 4,729.9 35.5% Overhead Expenses (3,209.5) (2,629.5) 22.1% Overhead Expenses (3,056.4) (2,461.0) 24.2% Claims Incurred (153.1) (168.5) -9.2% Operating Profit bef. LLP 3,198.8 2,100.4 52.3% ● Loan Loss Provision (LLP) (661.3) (506.5) 30.6% Net Specific Provision (621.7) (573.9) 8.3% General Provision (39.6) 67.3 -158.8% ● Impairment losses/(writeback) on securities (42.1) (38.8) 8.5% Operating Profit 2,495.4 1,555.1 60.5% ● (Allowance)/write back of allowance - 483.8 for non-refundable deposit - ● Impairment Loss in subsidiary and associate - (242.0) - ● Profit/(Loss) from associates 60.8 45.1 34.7% Profit before tax 2,556.2 1,842.1 38.8% Tax (626.0) (536.6) 16.7% Minority Interest (54.8) 1.3 -4288.5% Profit after Tax and MI 1,875.3 1,306.7 43.5% EPS (sen) 26.50 23.76 11.5% 5
    • Normalised PBT up 18.2% 1H10 1H09 YoY Profit Before Tax (PBT) 2,556.2 1,842.1 38.8% Unrealised (Gains)/Losses Unrealised (Gains)/Losses (179.0) 109.9 on Derivatives on Derivatives (Gain)/Losses on USD (Gain)/Losses USD funding (48.5) 104.8 funding position position Amortisation of Intangibles 46.2 Impairment of MCB 242.0 (BII) Effect of items pertaining to (290.4) BII Acquisition * Normalised PBT 2,374.9 2,008.4 18.2% * Items include write-back on non-refundable deposits & foreign exchange items in relation to the acquisition of BII. 6
    • Net Interest Income and NIM 2.87% 2.82% 2.79% 2.77% 2.70% 2.52% 1.68 1.63 1.55 1.54 1.56 1.27 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Net Interest Income (RM billion) NIM (%) 7
    • Non Interest Income 2Q10 1Q10 QoQ% 2Q09 YoY % YoY% RM million 1H10 1H09 Dec 09 Sept 09 Change Dec 08 Change Change Commission, service charges and fees 673.9 624.6 8% 460.0 47% 1298.5 920.3 41% Foreign exchange profit/(loss) 152.3 107.7 41% 214.3 -29% 260.0 89.1 192% Net premiums written 144.9 140.4 3% 128.8 13% 285.4 251.5 13% Investments and Trading Income 47.9 92.7 -48% 26.2 82% 140.6 26.0 441% Other income 114.4 82.3 39% 113.9 0% 196.7 150.2 31% Unrealised gain on MTM of securities 84.6 94.3 -10% -111.1 -176% 179.0 -109.9 -263% held-for-trading and derivatives Total non-interest income 1,218.1 1,142.0 6.7% 832.2 46.4% 2360.1 1327.2 78% 8
    • Overhead Expenses 24.2% YoY (excluding claims) Overheads rose 5.0% QoQ. 3.209.5 12.1% YoY (excluding claims) 2,629.5 Overhead expenses growth 5.0% QoQ YoY Change (excluding claims) Fees & Brokerage 43.0% Admin & General 29.5% Marketing 3.5% 1,638.7 1,570.7 Amort. of BII intangibles n.m. RM million 1,403.0 Depre. & Amort. 30.6% IT 16.3% Establishment 53.3% Personnel 20.3% Total exc. Claims 24.2% Claims incurred -9.2% 9
    • Balance Sheet continued to strengthen Annualised RM billion 31 Dec 09 30 Jun 09 growth Cash and short-term funds 31.0 23.6 62.4% Deposits and placement with FI 8.7 6.3 76.3% Securities Portfolio - Securities held-for-trading 3.0 1.5 198.1% - Securities available-for-sale * Money market (MGS, FGS,BAs, NIDs etc.) 28.9 30.3 -9.5% * Quoted Securities 0.5 0.5 16.4% * Unquoted - PDS - Malaysia 11.0 11.0 -0.9% * Unquoted - PDS Foreign 4.8 4.9 -1.6% * Unquoted - Others 1.2 1.2 -2.4% Total Securities available-for-sale 46.4 47.9 -6.3% - Securities held-to-maturity 8.9 8.4 12.7% Total Securities Portfolio 58.2 57.7 1.7% Loans, advances and financing 195.1 185.8 10.1% Insurance & Takaful Business 16.9 16.8 2.0% Other Assets 20.9 20.5 3.4% Total Assets 330.8 310.7 13.0% Deposits from customers 230.9 212.6 17.2% Deposits and placements of banks and FI 27.4 28.8 -9.8% Borrowings 2.9 2.5 34.6% Subordinated debts 8.6 8.7 -1.0% Capital Securities 6.1 6.0 0.2% Insurance & Takaful liabilities & policy holders' funds 16.9 16.8 1.2% Other Liabilities 10.2 9.5 14.2% Total Liabilities 303.0 285.0 12.7% Shareholders Funds 26.9 24.9 16.1% Total Liabilities and Equity 329.9 309.9 28.7% Loan-to-Deposit Ratio 84.5% 87.4% 10
    • Gross loans growth of 9.9% annualised HY RM billion Dec 09 Jun 09 Annualised Growth Domestic 135.7 129.9 8.8% Consumer 66.7 62.8 12.2% Securities 12.5 11.4 18.1% Vehicles 21.1 19.8 12.5% Residential 25.4 24.6 6.2% Credit Card 3.9 3.6 16.9% Others 3.8 3.3 30.2% Business 69.0 67.1 5.6% Corporate 49.3 46.4 12.4% SME 19.7 20.7 -9.7% Overseas 67.3 63.4 12.3% S'pore (SGD b) 17.0 16.2 10.8% BII (Rp trillion) 39.6 35.5 23.5% Others 11.3 11.9 -9.8% Gross Loans 203.0 193.4 9.9% 11
    • Asset Quality continues to improve Gross and Net NPL By Geography Group Gross & Net NPL Ratio, Loan Loss Coverage 5.12% Singapore: 4% Gross NPL : RM0.2bil 4.80% 117.8% (Gross NPL ratio : 0.7%) 112.9% 113.2% Net NPL : RM0.02bil 101.5% (Net NPL Ratio : 0.09%) 99.2% 100.2% 99.8% 87.2% 3.76% 83.6% Indonesia: 5% 3.60% 3.59% Gross NPL : RM0.35bil 3.55% 3.46% 3.50% Maybank Others (Gross NPL Ratio : 2.3%) Domestic (15%) Net NPL : RM0.10bil 3.26% (85%) (Net NPL Ratio : 1.56%) 2.69% Net NPL Ratio Others: 6% 2.43% Gross NPL Ratio Gross NPL : RM0.39bil Loan Loss Coverage (Gross NPL Ratio : 4.4%) Net NPL : RM0.04bil 1.92% (Net NPL Ratio : 0.7%) 1.84% 1.80% 1.73% 1.64% Maybank Domestic: 85% Gross NPL : RM5.7bil (Gross NPL Ratio :4.6%) 1.60% Net NPL : RM2.6bil (Net 1.43% NPL Ratio : 2.0%) 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Dec 07 Mar 08 Jun 08 Sep 08 Dec08 Mar 09 Jun 09 Sep 09 Dec 09 12
    • Customer Deposits grew 11.8% YoY Customer deposits Composition of customer deposits 11.8% YoY 5.5% QoQ 230.9 218.8 211.7 212.6 206.6 RM billion 13
    • Breakdown of Customer Deposits Domestic Singapore BII Group YoY YoY YoY YoY RMb RMb RMb RMb Chg Chg Chg Chg Savings Deposits 27.6 9.7% 5.8 29.4% 4.3 38.2% 38.0 14.8% Current Accounts 39.8 9.4% 4.7 47.6% 3.3 56.0% 48.3 15.4% Fixed Deposits 65.3 16.8% 38.3 8.8% 9.6 24.8% 125.9 8.2% Others 17.7 21.2% 1.0 40.7% - - 18.7 22.2% Total Deposits 150.3 13.9% 49.8 14.3% 17.2 33.1% 230.9 11.8% Low cost funds 44.8% 21.2% 44.1% 37.4% LD Ratio 85.7% 84.1% 83.5% 84.5% 14
    • Capital Management and Capital Adequacy Capital Adequacy Gross Dividend (sen) Dec 09 14.7% Sep 09 13.9% Jun 09 14.1% Bank Mar 09 11.1% Final Dividend (sen) 60.5 sen * 57.0 sen * Interim Dividend (sen) Dec 08 10.2% Sep 08 10.8% 28 43.6 sen * 32 Dec 09 10.8% 14.6% 20 Sep 09 10.4% 14.3% Jun 09 10.8% 14.8% 40 Group 32 29 Mar 09 8.3% 12.1% 8 sen 8 11 Dec 08 8.1% 13.5% Sep 08 9.2% 12.9% FY06 FY07 FY08 FY09 1H10 Core Capital Ratio RWCR * Full Year dividend for FY06-FY08 is adjusted for rights issue 15
    • Maybank Group: Key Ratios 1H10 2Q10 1Q10 4Q09 3Q09 2Q09 1Q09 Dec 09 Dec 09 Sep 09 Jun 09 Mar 09 Dec 08 Sep 08 ● Net Interest Margin 2.79% 2.77% 2.82% 2.70% 2.79% 2.87% 2.50% @ ● Net Return on Equity 14.6% 15.0% 13.9% 18.4% 9.9% 14.6% 11.7% ● Fee to Income Ratio + 37.9% 38.4% 37.3% 44.0% 24.8% 32.0% 25.2% ● Adj. Fee to Income Ratio * 36.1% 36.8% 35.3% 42.4% 30.6% 34.7% 29.5% ● Cost to Income ++ 50.1% 50.3% 49.8% 46.2% 57.6% 53.0% 60.0% ● Adj. Cost to Income ** 48.0% 49.3% 47.3% 45.6% 50.3% 47.8% 51.8% ● Loan-to-Deposit Ratio 84.5% 84.5% 87.3% 87.4% 87.8% 88.4% 90.0% Asset Quality ● Gross NPL Ratio 3.26% 3.26% 3.50% 3.46% 3.55% 3.59% 3.60% ● Net NPL Ratio 1.43% 1.43% 1.60% 1.64% 1.73% 1.80% 1.84% ● Loan Loss Coverage 117.8% 117.8% 113.2% 112.9% 101.1% 99.8% 100.2% ● SP charge off rate (bps) 64 48 77 51 68 78 40 ● SP charge off rate (bps) (exc. BII) 53 40 65 40 40 50 40 Capital Adequacy (Group) ● Core Capital Ratio 10.76% 10.76% 10.43% 10.81% 11.10% 10.19% 10.76% ● Risk Weighted Capital Ratio 14.61% 14.61% 14.28% 14.81% 11.10% 10.19% 10.76% + Include Islamic Banking income and impairment loss on securities. * excluding unrealised loss on derivatives, impairment loss on securities and one-off items related to BII. ** excluding insurance claims (cost), unrealised loss on derivatives, impairment loss on securities and one-off items related to BII. ++ Include unrealised loss on derivatives, impairment loss on securities and one-off items related to BII. @ ROE for 4Q09 is normalised/adjusted for impairment charges 1H10 ROE is after dividend 16
    • 1H10 Group Financial Performance Sector Performance Malaysian Economy and Banking Sector Prospects 17
    • Revenue by Segment Revenue RM million 1H10 1H09 YoY Consumer 2,186.1 2,000.9 9.3% Commercial 1,260.0 1,166.9 8.0% Global Markets 772.4 519.6 48.7% Investment Banking 136.9 105.9 29.3% Insurance and Asset 472.0 361.6 30.5% Management International 1,879.9 945.8 98.8% Corporate Office (299.1) (370.8) -19.3% Total 6,408.2 4,729.9 35.5% 18
    • Consumer Banking: Growth drivers for 1H10 Loans Growth Loans Growth vs Industry Domain 1H10 - Annualised 1H09 – Annualised Growth MBB –Dec’09 Industry – Dec’09 (Ann) (Ann) RM’m % RM’m % Consumer Loans 12.1% 12.2% Consumer Loans 4,049 12.1% 2,102 6.8% Shophouse 22.2% 13.8% Mortgage 1,412 9.0% 623 4.0% Hire Purchase 11.4% 7.2% Unit Trust 993 19.5% 388 8.8% Cards 14.6% 12.4% Total Auto 1,082 10.6% 777 8.4% Savings 9.2% 8.9% Gross NPL ratio (%) Domain 1H10 1H09 Variance Consumer Loans 3.8% 4.8% - 1.0% Retail Loans 5.2% 6.6% - 1.4% Mortgage Loans 6.9% 8.3% - 1.4% Hire Purchase 0.9% 1.0% - 0.1% Cards 1.6% 1.6% 0% 19
    • Consumer Banking: Housing and Auto Loans Housing Loan Growth Mortgage Loans Balance Outstanding 78.2% 10.9% 10.9 % RM million 32.9 5.7% YoY 79.8% 10.2% 10.0% 31.1 RM billion Auto Loans Growth Auto Loans Balance Outstanding RM million 20
    • Consumer Banking: Cards Card Base Total Merchant Volume (‘000) RM billion Cards Growth 1H FY10 YoY Maybank Industry * Cardbase 4.4% - 0.2% Billings 12.2% 6.9% Receivables 8.3% 5.3% Merchant Sales 23.9% 4.9% 6.0 Total Card Billing Receivables Cards Market Share * RM billion RM billion 5.0 4.47 YTD Dec 09 Dec 08 4.14 3.75 3.73 3.86 4.0 3.57 Cardbase 15.5% 15.1% 3.0 Billings 21.6% 20.1% 2.0 Receivables 14.1% 13.7% 1.0 Merchant Sales 29.1% 24.9% - 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 * Industry figures for cards includes commercial banks and non-FI players 21
    • Consumer Banking: Internet Banking M2U Customers Average Monthly Transactions (‘million) 5.0 60 4.34 50.67 51.58 4.5 4.04 46.10 3.60 3.81 50 42.15 4.0 3.40 3.5 3.22 40 33.03 35.10 3.0 2.5 30 2.0 1.32 1.5 1.04 1.08 1.05 1.10 1.16 20 1.0 10 3.57 3.50 3.61 0.5 2.48 2.55 2.62 - 0 Jun 09 Jun 09 Sep 08 Dec 08 Mar 09 Sep 09 Dec 09 Sep 08 Dec 08 Mar 09 Sep 09 Dec 09 Registered users Active users RM billion Volume (Transaction in million) Competitive Intelligence: Malaysia's Internet Banking Maybank2u Statistics Rank Banking Websites Unique Visitors (000) Active Users: 1.32 Million 1 Maybank2u.com 1,283 2 CIMBClicks.com.my 520 Total of Payee corporations: More Than 700 3 PBEbank.com 324 next 5 banks. Monthly Transactions: Over 51 Million 4 HSBC 180 5 Citigroup 177 1341 Monthly Value: Over RM 3.6 Billion 6 RHBBank.com.my 140 Concurrent users: 20,000 (Peak) Source: comScore Media Metrix December 2009 22
    • Corporate and Business Banking Total Loans grew 5.6% annualised Asset Quality Gross NPL ratio Business Corporate Banking Banking -16.3% Jun 09 11.7% 1.0% Sep 09 12.3% 1.2% Dec 09 11.5% 1.3% 7.6% Corporate & Business Loans by Economic Sector 12.5% 17.8% RM billion 23
    • Global Markets Breakdown of Income Contribution 1H10 Income Statement 1H10 1H09 YoY Net Interest Income 287.7 289.6 -0.7% Non Interest Income 484.7 230.0 110.7% Total Income 772.4 519.6 48.7% 24
    • Islamic Banking Financial Highlights Key Ratios for Maybank Islamic Berhad 1H FY10 1H FY09 YoY RM million 1H FY10 1H FY09 Income Statement (RM mil) Gross Non Performing Financing 3.62% 4.60% Gross Attributable Income 899.50 756.69 18.9% Net Non Performing Financing 1.46% 2.22% Allowance for Loan Loss Financing to Deposits Ratio 106% 119% (220.28) (76.93) 186.3% Financing and Advances Cost to Income Ratio 33% 33% Total Attributable Income 679.22 679.76 -0.1% Core Capital Ratio 8.82% 8.40% Income Attributable to Depositors (302.05) (344.83) -12.4% Risk Weighted Capital Ratio 10.52% 10.00% Income attributable to Group 377.17 334.93 12.6% Income From Investments 65.47 72.69 -9.9% Maybank Islamic financing Overhead Expenses (203.08) (151.11) 34.4% YoY Growth Profit Before Taxation and Zakat 239.56 256.51 -6.6% +27.3% Taxation and Zakat (53.70) (67.28) -20.2% Net Profit 185.87 189.24 -1.8% -0.2% Balance Sheet (RM bil) Dec 09 Jun 09 Ann. Chg -26.0% +48.6% Financing and Advances 30.0 25.5 35.5% +18.3% Total Assets 38.0 34.7 19.2% +18.9% Deposit from customers 28.1 24.8 26.5% Total Liabilities 35.2 32.0 20.1% Consumer Business 25
    • Investment Banking Total income grew 75% driven by PBT by business lines 211% jump in fee based income RM m Equites Fund based 24% Others income 42% Fee based income 1H10 (inc. IB Mkts) 1H10 (exc. IB Mkts) Debt Market Other income 1H09 23% IB Markets 0 20 40 60 80 100 120 11% Industry Position & Market Shares : July 09 – Dec 09 Industry Total Value Deals / Issues Market Share Rank M&A 4 USD 364.7 m 4 7.9% Underwriting 2 RM 4,174 m 33 15.4% Fund Raising 2 USD 415.18 m 7 9.8% 20% by issuance, Debt Capital Market 2 RM 5,300 m 2 15.2% by amount issued 7.3% of Brokerage 4 n.m. 7.3% turnover value 26
    • Insurance Combined Gross Premium grew 16% YoY Third Party Banca and Agency recorded strongest growth +28% +153% +2% +21% +13% +9% -20% +18% +16% Agency Force grew 51% YoY Overall Loss Ratio declined 6.6% points Actual Industry Loss Ratio (as at Sept 1H10 1H09 09) Fire 32.0% 18.5% 30.1% Motor 70.4% 82.0% 81.5% MAT 7.3% 41.4% 44.7% Miscellaneous 48.3% 60.3% 51.2% OVERALL 56.2% 62.8% 65.2% 27
    • Singapore Operations: PBT grew 73.2% YoY despite lower net income Half Year Gross HY S$ million Loans Annulaied 1H10 1H09 YoY growth (SGD m) growth Income Statement Corporate Loans 8,823 8.8% Net Fund Based Income 239.8 206.2 16.3% Manufacturing 740 8.3% Non-Interest Income 65.2 108.4 -39.9% Building & Construction 3,269 6.6% Total Income 304.9 314.6 -3.1% General Commerce 2,030 23.8% Less: Overheads (134.9) (135.7) -0.6% Non-Bank Financial Inst, 1,580 -5.9% Total Operating Profits 170.0 178.9 -4.9% Transport, Storage & Add: Write-backs/Recoveries 31.9 25.9 23.3% Comm 891 19.9% Less: Provisions (34.0) (66.9) -49.2% Others 313 -6.8% Total Profit/(Loss) Before Tax and MTM 168.0 137.8 21.9% Consumer Loans 8,204 13.1% gain/(loss) and Deferred Transaction Cost Housing Loans 4,215 27.5% MTM Investment gain/(loss) 2.7 (39.3) n.m. Car Loans 3,264 1.6% Deferred Transaction cost - - Credit Cards 121 8.5% Total Profit/(Loss) Before Tax 170.7 98.6 73.2% Share Financing 59 40.8% Others 544 -15.2% Loans & Deposits Total Loans 17,027 15,967 6.6% Total Loans 17,027 10.8% Total Deposits 20,237 17,083 18.5% NPL Gross NPL ratio 0.77% 1.21% -0.44% Net NPL ratio 0.09% 0.18% -0.09% 28
    • BII Consolidated Income Statement Income Statement Jul - Dec 09 Oct - Dec 08 Rp billion (Rp1000 = RM0.36) Contribution Contribution Interest Income 2,993 1,654 Interest Expenses -1402 -992 Net Interest Income 1,591 662 Non Interest Income 960 466 Gross Operating Income 2,551 1,128 Operating Expenses (excl. Provision) -1603 -681 Operating Income before Provision 948 447 Provisions -394 -320 Profit Before Tax 554 127 Net Profit 457 103 Note: • The results exclude loan loss provisions on certain accounts which had already been accounted for at the Group level in the last financial year as part of the purchase price allocation exercise following the acquisition of BII. • The accounts of BII were consolidated into Maybank Group beginning October 2008 after the acquisition of the 56% in BII was completed at the end of September 2008. In early December, Maybank completed the acquisition of 97.5% of BII. 29
    • BII Loan Composition • Loans grew 23.5% from July - Dec 2009 annualised and 9% QoQ Group Loans Outstanding Consumer Loans Outstanding 16.0 14.4 7.0 6.6 6.0 6.1 13.1 12.8 5.8 14.0 12.6 12.6 5.6 6.0 12.0 13.0 12.1 11.8 12.2 5.0 4.4 4.5 10.0 11.6 4.2 4.2 4.2 Rp. Tillion Rp. Trillion 9.9 10.0 9.6 4.0 8.0 9.0 8.5 6.0 3.0 4.0 2.9 2.6 1.5 1.5 2.3 2.1 2.1 2.0 1.3 1.3 1.4 2.0 0.3 0.3 0.3 0.4 0.4 1.0 0.4 0.4 0.4 0.4 0.4 - Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 - Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Corporat e SMEC Consumer Syariah Subsidiaries Mort gage Credit Card Aut o Ot hers 30
    • BII’s Improved Performance NIM 6.32% 6.21% Non Performing Loans 1,731 6.11% 6.02% 1,529 1,274 4.65% 1,209 3.99% 3.41% 3.49% 949 5.56% 2.39% 1.90% 2.04% 1.90% 1.68% 1.56% Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 NPL [Rp] - Gross NPL [% ] - Gross NPL [% ] - Net Cost-to-Income 65.9% 65.4% 64.6% 63.8% 63.7% Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 31
    • 1H10 Group Financial Performance Sector Performance Malaysian Economy and Banking Sector Prospects 32
    • Malaysia: Economic recovery in 2010 but interest rates expected to rise GDP to rebound with growth of 4.5% in 2010 Inflation expected to rise to 2.3% in 2010 (2009: 0.6%) Quarterly GDP and annual growth rate CPI and components (% YoY) Government trimming deficit spending in 2010 Interest rates expected to rise 50-75bp by end 2010 0.0 (1.0) (2.0) (3.0) Overnight Policy Rate (4.0) and Statutory Reserves (5.0) (6.0) Fiscal Deficit (% of GDP) (7.0) (8.0) 2009E 2010E 2011E 2012E 2013E 2014E 2015E 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 33
    • Banking Industry: resilient during recession; steady growth expected RM billion Total Loans grew 7.8% for 2009 RM billion Total Deposits grew 9.3% in 2009 Capital Adequacy remained strong Asset Quality continued to improve 14.7% 13.1% 1.8% 34
    • 1H10 Group Financial Performance Sector Performance Malaysian Economy and Banking Sector Prospects 35
    • Prospects Maybank’s core commercial banking operations are expected to perform better with positive but modest loan growth in all segments with economy resuming growth in 2010. Consumer financing growth to be fuelled by improvement in consumer sentiment while investment banking and insurance divisions should benefit from better capital markets prospects. Vigilance in business expansion and stringent asset quality management should ensure asset quality is preserved. International operation expected to record better performance due to the global economic recovery and through business expansion. BII, which has shown good improvement, is expected to show further growth in line with the vibrant banking sector in Indonesia and following new business strategy initiated by the management team. The Group's Singapore operations are also expected to contribute to the growth, albeit moderately and with strong asset quality. With the improving economic environment in the markets that we operate in for 2010 and in the absence of the impairment charge which was incurred in the financial year 2009, the Group expects its financial performance for the current financial year ending 30 June 2010 to improve significantly. Barring any unforeseen circumstances, the Group expects the revenue growth and ROE to exceed the Headline KPIs of 8% revenue growth and ROE of 11%. 36
    • Thank You MALAYAN BANKING BERHAD Khairussaleh Ramli Hazimi Kassim Raja Indra Putra Raja Ismail 14th Floor, Menara Maybank Chief Financial Officer Head, Strategy and Corporate Finance Head, Investor Relations 100, Jalan Tun Perak Contact: (6)03-2074 4288 Contact: (6)03-2074 8101 Contact: (6)03-2074 8582 50050 Kuala Lumpur, Malaysia Email: khairul@maybank.com.my Email: hazimik@maybank.com.my Email: rajaindra@maybank.com.my Tel : (6)03-2070 8833 www.maybank.com 37