CLSA Investors' Forum 2011 Presentation

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Malayan Banking Berhad (Maybank) - CLSA Investors' Forum 2011 Presentation

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CLSA Investors' Forum 2011 Presentation

  1. 1. 123456 1
  2. 2. 39.8% 33.8% 19.8% 6.5%• • • • •• Maybank2u • • •• 2
  3. 3. ■ ■ ■■ ■■■ ■ ■■■ ■■ ■■ ■■ ■ ■ ■ 3
  4. 4. Average Summary of Analysts Recommendations Analysts Consensus: Net Profit (RM mil.) share price Target Price (RM) 9.80 (RM) Coverage 30 analysts FY2012 4,904 10.0 Recommendations 20 Buy, 8 Hold, 2 Sell 8.78 8.64 8.27 7.85 7.75 8.0 ROE (%) 7.38 7.92 5,000 20 6.32 4,450 6.24 6.15 5.70 3,818 6.0 4,000 15Net Profit (RM million) 5.53 3,178 2,928 3,000 2,772 2,665 # 2,425 2,503 10 4. 1,996 0 2,000 1,659 1,360 5 1,000 840 2. 0 * 692 - - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Net Profit (RM million) (LHS) ROE (%) (RHS) Average share price (RM) adjusted for bonus and rights issue 4
  5. 5. 123456 5
  6. 6. 123456 6
  7. 7. 1 Alliance 0.4 38 Alliance Affin 0.5 49 Affin HL Bank 1.1 AMMB AMMB 112 1.4 RHB Cap 141 RHB Cap 1.5 HL Bank 145 Public Bank Public 3.3 235 Bank CIMB 3.7 CIMB 282 Maybank 4.5 Maybank 412 Affin Alliance 4.3 23 28 29 Alliance Affin 5.4 36 Deposits 74 Gross Loans RHB Cap AMMB 18.1 77 HL Bank RHB Cap 19.3 92 103 84 AMMB HL Bank 19.4 114 Public Public 167 45.9 Bank Bank 188 177 CIMB CIMB 54.2 211 261 Maybank Maybank 64.9 2827
  8. 8. DBS 252 DBS 139 171 OCBC 206 UOB 107 121 UOB 178 OCBC 99 109 MAYBANK 137 MAYBANK 87 No.4 93 No.4 CIMB 93 CIMB 59 70 Public Bank 78 Public Bank 55 62 Total Loans Bangkok Bank 66 Bangkok Bank 44 48 Krung Thai Bank 60 Krung Thai Bank 43 Total 43 Deposits Bank Mandiri 55 Bank Mandiri 33 42 Siam Commercial 55 Kasikornbank 38 39 DBS 2.3 DBS 24.5 UOB 2.0 OCBC 23.7 OCBC 1.8 Bank Central Asia 23.6Bank Rakyat Indonesia 1.6 UOB 23.0 No.5 MAYBANK 1.4 Maybank 21.8 No.5 Bank Mandiri 1.3 Bank Rakyat Indonesia 19.2 CIMB 1.2 Bank Mandiri 18.5Siam Commercial Bank 1.1 CIMB 18.2 Public Bank 1.1 Public Bank 15.4 Bank Central Asia 1.1 Siam Commercial Bank 13.4 8
  9. 9. Domestic Total loans 18.1% (17.6%) 16.8% 1 Consumer loans 17.1% (16.7%) 15.6% 2 Mortgage 13.1% (13.4%) 11.6% 3 HP Loans 19.1% (17.2%) 14.3% 2 Unit trust 65.1% (70.0%) 25.2% 1 SME loans 17.0% (15.0%) 23.2% 2 Receivables 14.9% 2 (14.4%) 15.6% Billings 22.7% (21.8%) 1 19.0% Merchant Sales 29.2% (29.3%) 1 12.3% Card Base 17.6% (16.6%) 1 -3.6% (15.6%) 1 Domestic Total… 16.8% 20.8% (20.5%) 1 Demand Deposits 20.7% 17.6% (27.7%) 1 Savings Deposits 27.9% 9.9% 2 Fixed Deposits 14.8% (14.1%) 4.2% 1 Internet Banking 55.1% (54.5%) 0.6% 1 ATM 25.2% (29.1%) -0.3% 1 Branch 19.0% (19.0%) 0.5% 1 9
  10. 10. Islamic Financing 26.5% (23.4%) 40.1% 1 Islamic Deposits 26.8% (24.1%) 35.1% 1 Debt Markets 26.3% 2 M&A 25.7% Not applicable 3 Equity & Rights Offerings 9.6% 2 Equity Brokerage 7.0% 3 Trade Financing 20.0% (18.8%) 29.0% 1 Combined Life/Family 18.3% (18.9%) 4.8% 1 Combined General 11.5% (10.1%) 27.1% 1 Asset Under Management 17.6% (15.4%) 14.5% 4* Source: LIAM & ISM Statistics (Apr ‘10 – Mar 11) 10
  11. 11. 2 China: 1 branch • Philippines: London: 1 rep office Hong Kong: 50 branches  Thailand 1 branch 1 branch • Kim Eng: 2 branches Kim Eng: 44 branches Kim Eng: Kim Eng: 1 1 branch Uzbekistan** branch • An Binh Bank: • Cambodia: 122 branches 10 branches • New York: Bahrain: • Vietnam: 2 branches 1 branch 1 branch • Kim Eng: 7 branches • Kim Eng: 1 branch India ASEAN • Malaysia: Kim Eng: 386 branches  Brunei: 1branch 3 branches Saudi Arabia*  Singapore: Pakistan 22 branches MCB: 1,134 Papua New  Kim Eng: branches Guinea: 3 branches 2 branches  Indonesia BII: 344 branches  Kim Eng: 5 branches * 1 office via Anfaal Capital ** 1 office via 35% owned Uzbek Leasing International 11
  12. 12. 4% 5%International: International: 5% International:32% 24% 35% 6% 8% 16% 14% RM6.27b 21% RM262.0b 12% RM13.42b 65% 68% 76% Malaysia Singapore 4% 16% 12% 68% Indonesia Others 4% 5% 3% 5% 15% 8% 15% 19% 11% RM12.32b RM5.37b RM215.2b 68% 70% 77%International: International: International:30% 23% 32% 12
  13. 13. Maybank Commercial Banking Brokerage / Investment Banking Retail Banking Ranking M. Share Ranking M. Share Other Services #3 7% #1 12% Kim Eng #5 7% #2 9% Brokerage / Investment Banking Other Services #5 5% #9 3%        13
  14. 14. 1   2  3    14
  15. 15. • • • • ••• • • • • 15
  16. 16. • • • •• • • 16
  17. 17. 3 Quarterly GDP and annual growth rate Q2 GDP: 14 25 CPI and components (% YoY) July CPI: +4% YoY 20 12 +3.4% YoY 15 10 Transport (RHS) 10 8 5 0 6 (5) Food & Non-Alcoholic Beverages 4 (10) (15) 2 (20) 0 Utilities, Housing & Other Fuels (25) Mar-04 Jun-05 Mar-09 Jun-10 Oct-03 Jan-05 Oct-08 Jan-10 May-03 May-08 Aug-04 Nov-05 Apr-06 Aug-09 Nov-10 Apr-11 Jul-02 Sep-06 Feb-07 Jul-07 Dec-02 Dec-07 RM3.00 per USD as at 9 Sep2.90 25bp hikes in OPR in 4.53.00 Ringgit Malaysia per USD Mar, May, July 10 and3.10 4.0 May 113.20 3.53.30 3.03.40 2.53.50 2.03.603.70 1.5 OPR SRR3.80 1.03.90 0.5 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Sep-05 Dec-05 Mar-06 Sep-06 Dec-06 Mar-07 Sep-07 Dec-07 Mar-08 Sep-08 Dec-08 Mar-09 Sep-09 Dec-09 Mar-10 Sep-10 Dec-10 Mar-11 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 May-07 May-08 May-09 May-10 May-11 Sep-07 Sep-08 Sep-09 Sep-10 17
  18. 18. Total Loans grew 12.9% YoY for July 2011 Total Deposits grew 11.3% YoY for July 2011 Total Loans Total Loans YoY Growth Total Deposits Total Deposits YoY Growth Household YoY Growth Business YoY Growth 1250 25% 950 18% 1200 900 16% 1150 20% RM billionRM billion 850 14% 1100 800 12% 1050 15% 1000 750 10% 950 10% 700 8% 900 650 6% 850 5% 600 4% 800 550 2% 750 0% Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Oct-07 Oct-08 Oct-09 Oct-10 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Capital Adequacy remains strong Gross NPL RM27.4b, Net NPL ratio: 1.99% 16 Gross NPL - 3 Months (LHS) Net NPL (RHS) 35 2.5% 15 14.3% 30 14 RM billion 25 2.3% 13 12.5% % 12 20 11 2.0% 15 10 Risk Weighted Capital Ratio 10 1.8% 9 8 Core Capital Ratio 5 7 0 1.5% Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Oct-10 Feb-11 Mar-11 Apr-11 Jun-10 Jul-10 Aug-10 Sep-10 Nov-10 Dec-10 Jan-11 Jun-11 Jul-11 May-11 18
  19. 19. ■ 80 20■ 75 15■ 70 10 65 5 60 0 55 (5)■ 50 (10) 3Q08 3Q09 3Q10 2Q08 4Q08 1Q09 2Q09 4Q09 1Q10 2Q10 4Q10 1Q11 2Q11 Real GDP (S$B) % YoY Growth (RHS) 19
  20. 20. ■ Real GDP Growth: growing faster ■ (y-y %) 7.50 7.00 6.49 6.50 6.00 ■ 5.50 5.00 4.50 4.00 3.50 ■ 3.00 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 2002 2003 2004 2004 2005 2006 2007 2007 2008 2009 2010 2010 ■ Bank’s loan growth: trending upwards Bank Indonesia policy rate on hold at 6.75% (y-y %) (y-y %)30.00% 14.0 Loan Deposit 2 3 .3 7 % Inflatio n y-y B I rate25.00% 12.020.00% 10.0 19 .0 7 % 8.015.00% 6.75 6.010.00% 4.05.00% 2.00.00% 0.0 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 M ay-08 Sep-08 Jan-09 M ay-09 Sep-09 Jan-10 M ay-10 Sep-10 Jan-11 M ay-11 20
  21. 21. 4    Operational, 26% 21.7% Commenced, 57% Work-in Progress, 16% 21
  22. 22. ■ 22
  23. 23. 23
  24. 24. 5 24
  25. 25. Maybank Group CEO + Support (CFO, CRO,GHC, Legal, Compliance, Communications) Community Global Wholesale Insurance & E ISLAMIC Financial Services Banking Takaful NINSPIRED A Leveraging shared Regaining domestic Being the B distribution, leadership and National L Customer Segment aggressively Insurance E driven, Community pursuing ASEAN Champion and MINTERNATIONAL Bank market expansion by Living the ETIQA E EXPANSION humanising client way N interaction T Enterprise Transformation Services 25
  26. 26. 26
  27. 27. ■ Providing the people with access to financing Most extensive retail (386) and self-service Financial services accessibility terminal (4611) network in Malaysia in rural areas via mobile bus banking and the only bank in 18 rural locations Largest virtual banking presence (55% market share) via Maybank2u ■ Fair terms and pricingIslamic financing as a driver ■ Advise customers based on their needsPromoting Islamic first ■ Being at the heart of communityUser friendly facilities for physically Maybank Global CSR Day (20 Nov 2010) where Maybankerschallenged customers participated in group-wide volunteerismRamps to ease access Automated sliding doors 27
  28. 28.  28
  29. 29.     29
  30. 30.  +8.9% YoY +16.6% YoY 13.42 4.45 12.32 3.82 FY10 FY11 FY10 FY11 30
  31. 31. Headline KPIs Target FY11 achievementsReturn on Equity 14% 15.2%Loans and Debt Securities Growth 12% 22.6%Other targets Target FY11 achievementsLoans Growth• Malaysia 12% 16.8%• Singapore 5% 25.8%• BII 24% 25.8%Net Interest Margin Decrease Normalised: 2.71% (-9 bps YoY)* 31
  32. 32. +16.8% Global Wholesale Banking (GWB) +26.9% 6,2705,370 FY10 FY11 +7.5% +120.2% -3.3%% -5.8% +19.1% +10.4% 2,990 2,782 1,367 1,489 1,321 1,251 1,084 488 492 144 442 136 Total Community Corporate Banking Global Market Investment International Insurance, Takaful Financial Services Banking# Banking* & Asset Management Note: Head Office & Others: Revenue and PBT : -RM1,107m (FY10) vs. –RM1,238m (FY11) * Includes overseas’ GWB # Includes Kim Eng 32
  33. 33. Loans YoY GrowthMalaysia RM 170.5 bil 16.8%Community Financial RM 114.3 bil 12.9%Services Consumer RM 88.3 bil 15.6% Mortgage RM 38.6 bil 11.6% Auto Finance RM 26.0 bil 14.3% Credit Cards RM 4.8 bil 15.6% Unit Trust RM 17.1 bil 25.2% Business Banking / RM 26.0 bil 4.7% SMEGWB (Malaysia Ops) RM 56.2 bil 25.6%International RM 89.4 bil 29.4%Singapore SGD 22.1 bil 25.8%Bank Internasional Indonesia IDR 59.5 tril 25.8%Total Gross Loans RM 262.0bil 21.7%
  34. 34. 320.5 264.7 2.99% 2.83% 2.74% 2.39% 2.25% 117.5 72.2 47.7 1 Jul 104Q10 1Q11 2Q11 3Q11 4Q11 Day 1 Sep 10 Dec 10 Mar 11 Jun 11  34
  35. 35. 6 High Dividend Payout Ratio and Robust Capitalisation Gross Dividend ( ), Dividend Yield (%) and Payout Ratio (%) Dividend 6.7% 7.4% 7.3% 6.7% 40.00% Yield 1.4% 20.00% 0.00% F… F… Payout 76.5% 74.9% Ratio 70.0% 60.0% 61.0% 29 * 32 18 44* Final Interim 29 26 28 * 8 11 FY07** FY08** FY09 FY10 FY11 35
  36. 36. 15.36% 14.81% 14.49% 14.72% 10.81% 10.88% 11.21% 11.84% 30 Jun 09 30 Jun 10 30 Jun 11* 30 Jun 11** Core capital ratio Risk-weighted capital ratio 14.06% 14.79% 13.32% 12.49%30 Jun 09 30 Jun 10 30 Jun 11* 30 Jun 11** Core capital ratio & Risk-weighted capital ratio 36
  37. 37. 123456 37
  38. 38. 38
  39. 39.  39
  40. 40. 40
  41. 41.  Another Record Profit for FY2011  4Q11 PATAMI grew 26.5% YoY and 1.0% QoQ to RM1.15 billion.  FY11 PATAMI grew 16.6% YoY to a record RM4.45 billion.  FY11 revenue grew 8.9% YoY on the back 4.9% growth in fund based income and 15.3% growth in fee income. Improvements seen across the board  All business segments reported top line growth .  FY11 PBT rose 16.8% YoY mainly due to growth in Malaysia’s Corporate Banking, International Banking and Community Financial Services.  Group loans grew 21.7% YoY the highest since FY01, driven by strong overseas loans growth of 29.4% and domestic loans growth at 16.8%. Singapore and Malaysia exceeded the industry growth.  Improved Asset Quality. Allowances for losses on loans for FY11 declined 59% YoY. Net Impaired Loan ratio declined to 2.25% in June 2011 from 2.99% in Sept 2010. Strong Financial Position  With Group shareholders’ funds of RM31.5 billion, total assets of RM412 billion and CAR of 15.4%. Met the KPIs set  KPIs exceed targets for FY2011. ROE of 15.2% is ahead of full year target of 14% and Loans and Debt Securities growth of 22.6% exceeds target of 12%. Proposed final dividend of 32 sen per share less 25% tax.  The dividend consists of 4 sen cash portion and 28 sen electable portion for DRP.  Total FY2011 dividend: 60 sen per share. 41
  42. 42.          42
  43. 43. 43
  44. 44. Quarter RM million QoQ YoY 4Q11 3Q11 4Q10 Change ChangeNet interest income 1,826.7 1,771.4 3.1% 1,792.2 1.9%Income from Islamic Banking 443.0 387.8 14.2% 355.8 24.5%Net income from insurance business* 345.4 84.1 310.8% 168.6 104.9%Non-interest income 1,196.7 928.8 28.8% 826.2 44.8%Net income 3,811.8 3,172.1 20.2% 3,142.7 21.3%Overhead expenses (1,962.1) (1,554.0) 26.3% (1,474.6) 33.1%Operating Profit before allowances for 1,849.7 1,618.2 14.3% 1,668.0 10.9%losses on loansAllowance for losses on loans (47.7) (72.2) -33.9% (320.5) -85.1%Impairment losses on securities, net (114.0) 4.3 -2756.7% (23.4) 386.5%Operating Profit 1,688.0 1,550.3 8.9% 1,324.1 27.5%Share of profits in associates 40.5 25.3 60.2% 35.0 15.7%Profit before taxation and zakat 1,728.5 1,575.6 9.7% 1,359.1 27.2%Taxation & Zakat (475.3) (389.3) 22.1% (384.1) 23.8%Minority Interest (98.9) (43.7) 126.5% (62.6) 58.1%Profit after Tax and Minority Interest 1,154.3 1,142.6 1.0% 912.5 26.5%(PATAMI)EPS (sen) 15.54 15.60 -0.4% 12.89 20.6%*net of insurance claims 44
  45. 45. 12 Months RM million YoY FY11 FY10 ChangeNet interest income 7,185.9 6,770.9 6.1%Income from Islamic Banking 1,561.9 1,434.7 8.9%Net income from insurance business* 557.3 424.9 31.2%Non-interest income 4,114.7 3,692.7 11.4%Net income 13,419.8 12,323.2 8.9%Overhead expenses (6,652.2) (5,825.5) 14.2%Operating Profit before allowances for 6,767.6 6,497.7 4.2%losses on loansAllowance for losses on loans (502.2) (1,226.1) -59.0%Impairment losses on securities, net (130.0) (23.0) 464.3%Operating Profit 6,135.5 5,248.6 16.9%Share of profits in associates 135.0 121.8 10.8%Profit before taxation and zakat 6,270.5 5,370.4 16.8%Taxation & Zakat (1,650.7) (1,402.0) 17.7%Minority Interest (169.5) (150.3) 12.8%Profit after Tax and Minority Interest 4,450.3 3,818.2 16.6%(PATAMI)EPS (sen) 61.41 53.94 13.8% *net of insurance claims 45
  46. 46. QoQ RM billion Jun 11 Mar 11 Jun 10 YoY Growth GrowthCash and short-term funds 38.8 32.0 28.7 35.2% 21.3%Deposits with Financial Institutions 10.3 8.5 8.9 15.4% 21.1%Securities purchased under resale agreements - 0.5 0.4 n.m. n.m.Securities Portfolio 61.0 64.2 54.2 12.7% -5.0%Loans and advances 254.0 234.1 205.6 23.6% 8.5%Insurance & Takaful Business 19.2 19.0 18.0 6.9% 1.3%Other assets 28.7 22.1 21.0 36.3% 29.7%Total Assets 412.0 380.3 336.7 22.4% 8.3%Deposits from customers 282.0 260.7 236.9 19.0% 8.1%Deposits and placements of banks and FI 33.3 34.0 23.3 43.2% -1.9%Borrowings 5.4 4.8 2.8 92.8% 12.4%Subordinated debts 10.8 8.0 8.1 33.6% 34.6%Capital Securities 6.1 6.0 6.0 2.8% 1.9%Insurance & Takaful liabilities & policyholders funds 19.2 19.0 18.0 6.9% 1.3%Other liabilities 22.6 17.1 13.0 73.7% 32.3%Total Liabilities 379.5 349.7 308.0 23.2% 8.5%Shareholders Funds 31.5 29.9 27.9 12.9% 5.3%Total Liabilities and Equity 412.0 380.3 336.7 22.4% 8.3%Loan-to-deposit Ratio 90.1% 89.8% 86.8% 46
  47. 47. QoQ YoY Growth RM billion Jun-11 Mar-11 Jun-10 Growth Variance %Community Financial Services 114.3 110.3 101.2 3.6% 13.06 12.9% Consumer 88.3 85.2 76.4 3.5% 11.90 15.6% Total Mortgage 38.6 37.2 34.6 3.8% 4.02 11.6% Auto Finance 26.0 25.5 22.8 1.9% 3.25 14.3% Credit Cards 4.8 4.5 4.1 6.3% 0.64 15.6% Unit Trust 17.1 16.4 13.7 4.6% 3.44 25.2% Other Retail Loan 1.8 1.7 1.3 4.0% 0.54 42.8% Business Banking + SME 26.0 25.1 24.9 3.9% 1.16 4.7%GWB (Corporate)(Malaysia) 56.2 50.7 44.7 10.7% 11.46 25.6%Total Domestic 170.5 161.1 146.0 5.9% 24.53 16.8%International 89.4 81.5 69.1 9.7% 20.33 29.4%Singapore (SGDbn) 22.1 20.1 17.5 9.9% 4.53 25.8%BII (Rupiahtril) 59.5 56.7 47.3 5.0% 10.84 25.8%Others 16.3 13.8 11.8 18.6% 4.54 38.6%Gross Loans 262.0 242.8 215.2 7.9% 46.30 21.7% 47
  48. 48. Malaysia Singapore BII Group YoY YoY YoY YoY RM bil SGD bil Rupiah tril RM bil Growth Growth Growth GrowthSavings Deposits 31.4 11.4% 2.8 9.9% 14.6 18.3% 44.0 13.7%Current Accounts 46.7 16.8% 2.5 17.6% 12.1 34.2% 57.9 18.7%Fixed Deposits 83.2 20.8% 17.1 4.2% 39.2 36.0% 152.5 17.1%Others 26.6 44.3% 0.4 13.8% - 0.0% 27.6 43.8%Total Deposits 187.8 20.8% 22.7 6.4% 65.8 31.3% 282.0 19.0%Low cost funds (CASA) 41.6% 23.2% 40.5% 36.2%LD Ratio 87.7% 96.4% 88.1% 90.1% Loans-to-Deposit ratio 96.4% 91.3% 90.0% 90.1% 88.8% Group 87.4% 88.1% Malaysia 87.0% 86.8% 87.7% Singapore 82.4% BII 81.2% Jun 09 Jun 10 Jun 11 48

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