Malayan Banking Berhad - Invest Malaysia - New York Presentation May 2011
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Malayan Banking Berhad (Maybank) - Invest Malaysia Presentation - New York - May 2011

Malayan Banking Berhad (Maybank) - Invest Malaysia Presentation - New York - May 2011

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Malayan Banking Berhad - Invest Malaysia - New York Presentation May 2011 Malayan Banking Berhad - Invest Malaysia - New York Presentation May 2011 Presentation Transcript

  • Malayan Banking BerhadInvest Malaysia 2011New York / San Francisco17-19 May 2011
  • Maybank: In a Position of StrengthInvestment Case and StrategyFinancial PerformanceChallenges and Key Takeaways 1
  • Maybank: In a position of strength Average Summary of Analysts Recommendations Analysts Consensus: PATAMI (RM mil.) share price Target Price (RM) 10.07 (RM) FY2011 4,349 Coverage 29 analysts 10.0 Recommendations: 21 Buy, 6 Hold, 2 Sell FY2012 4,772 8.77 8.64 8.27 7.85 7.75 8.0 7.38 7.92 ROE 5,000 20.0 2011 6.32 6.24 6.15 consensus 5.70 6.0 4,000 15.0Net Profit (RM million) 5.53 3,000 10.0 4.0 2,000 5.0 1,000 2.0 * - - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 9M11 Net Profit (RM million) (LHS) ROE (%) (RHS) Average share price (RM) adjusted for bonus and rights issue * Lower net profit due to impairment of investment in BII and MCB 2
  • Maybank: In a position of strength Leadership Position Emerging Regional Leader■ No. 1 bank in Malaysia ■ Presence in 8 ASEAN countries (including Kim Eng) Largest Islamic bank by assets ■ 5 International Financial Centres■ No. 4 bank in South East Asia ■ Over 1,750 branches and offices in 16■ No. 134 in The Banker’s Top 1000 World Banks countries, serving 18 million customers Largest banking network in Malaysia Leading domestic market position ■ 386 branches, 2,828 ATMs ■ Diversified across all financial products and services 9 million customers ■ No. 1 in overall market share for ■ No.1 Internet banking with 55% market share Loans, Deposits, Cards, Unit Trust Loans Strong Financial Position* Strong shareholders and credit ratings ■ Total Assets : RM 380.3 billion (USD 125.7 bil) ■ 55% owned by PNB ,and its funds, and 12% by EPF ■ Total Equity : RM 30.7 billion (USD 10.1 bil) ■ Foreign shareholding 13.4% ■ 9M11 Net Profit : RM 3.30 billion (USD 1.34 bil) ■ S&P : A- ■ Moody’s: A3 ■ Fitch : A- ■ Market Cap.** : RM 64.0 billion (USD 21.3 bil) * as at 31 Mar 2011 ** as at 12 May 2011 3
  • Leading Bank in Malaysia Total Assets (RM bil): 31 March 2011 Loans and Deposits (RM bil): 31 March 2011 380 261 242 Gross Loans 200 269 Deposits 180 168 229 162 129 84 94 88 105 70 70 71 53 38 41 42 37 45 22 28 26 32 Alliance* Maybank Affin* EON Cap* HL Bank* Public CIMB* AMMB* RHB Cap* EON Cap* Alliance* AMMB* RHB Cap* Public CIMB* Maybank HL Bank* Bank Bank Affin* PATAMI (RM bil): 4 Quarters to March 2011 Market Capitalisation (RM bil): 12 May 2011 4.2 64.0 61.0 3.5 3.2 46.1 1.3 1.4 19.1 19.1 19.4 1.1 0.4 0.4 0.5 4.7 5.1 5.2 AMMB EON Cap Alliance RHB Cap Public Maybank CIMB Affin HL Bank EON Cap* Public Maybank Alliance* HL Bank* AMMB* RHB Cap* CIMB* Affin* Bank Bank * as at 31 Dec 2010 4
  • One of the Top 10 Banks in ASEAN Total Assets (USD bil): 31 Mar 2011 Total Loans and Deposits (USD bil): 31 Mar 2011 DBS* 221 DBS* 120 150 OCBC* 178 OCBC* 83 96 UOB 175 UOB 97 116 MAYBANK 126 MAYBANK 77 86 No.4 No.4 CIMB* 88 CIMB* 55 65 Public Bank 76 Public Bank 53 60 Bangkok Bank 66 Bangkok Bank 43 Total Loans 48 Krung Thai Bank 65 Krung Thai Bank 43 Total Deposits 43 Kasikornbank 55 Kasikornbank 36 39Siam Commercial Bank 53 Siam Commercial Bank 37 37 PATAMI (USD bil): 4 Quarters to Mar 2011 Market Capitalisation (USD bil): 12 May 2011 UOB 2.0 DBS 26.9 OCBC 1.7 OCBC 25.2Bank Rakyat Indonesia 1.4 UOB 23.9 MAYBANK 1.3 No.4 MAYBANK 21.3 No.4 DBS* 1.2 CIMB 20.2 Bank Mandiri 1.2 Bank Mandiri 19.2 CIMB* 1.1 Bank Rakyat Indonesia 17.9 Public Bank 1.0 Public Bank 15.4Siam Commercial Bank 1.0 Siam Commercial Bank 12.8 Bangkok Bank 0.8 Bangkok Bank 10.3 * as at 31 Dec 2010 5
  • Revenue composition and PBT by business segment 9M11 Revenue Composition 9M11 PBT Composition Global Markets RM1,008m Non-Interest Income Net Interest Income 18% Investment Banking RM2.92b RM5.36b RM89.6m Corporate 2% 30% 56% Banking RM695.7m 13% International Banking RM1,146.1m RM9.61b RM5.46b * 21%InsuranceRM0.21b2% Insurance & Takaful Community RM172.5mIslamic Banking Financial ServicesRM1.12b 3% RM2,342.4m12% 43% * Before elimination of Group support costs of RM912.7m 6
  • Revenue composition and PBT by country 9M11 Revenue Composition 9M11 PBT Composition International International 33% 25% Others Others 5% Indonesia 14% Indonesia 4% 16% Singapore 14% SIngapore RM9.61b RM4.54b 12% Malaysia Malaysia 67% 75% 7
  • Gross Loans Composition: 34% loans from overseas operations International, RM81.5 bil., 34% Indonesia, Other Overseas, RM20.0 bil. , 8% RM13.3 bil. , 5% Singapore, RM48.4 bil., 20% Mortgage, RM37.2 bil. 15% Domestic Consumer, Community RM242.8b RM85.2 bil. Auto Finance, Financial 35% RM25.5 bil. Services 11% Cards, RM110.3 bil. RM4.5 bil., 2% 45% Unit Trust Loans RM16.4 bil., 7% Other Retail Loans, Global Wholesale RM1.7 bil., 1% Banking (Malaysia), Bus. Bkg / SME, RM50.7 bil., 21% RM25.1 bil., 10% Total SME loans by Bank Negara definition is RM35.6 billion or 15% of Group gross loans 8
  • Maybank: In a Position of StrengthInvestment Case and StrategyFinancial PerformanceChallenges and Key Takeaways 9
  • Investment Case Full suite of business i.e. Commercial Banking, 1 Leading financial services Investment Banking and Insurance with leading position group in Malaysia in most business segments Regional financial services group with a vision of achieving 2 Emerging regional leadership position by 2015 via presence in growth financial leader markets 3 Transformation Business transformation programme introduced in 2008 programme with new organisation structure is showing results 4 Maintains high dividend payout with robust capitalisation High Dividend payout ratio through Dividend Reinvestment Plan 5 Beneficiary of Poised to take advantage of the Economic Transformation government economic Programme in Malaysia development initiatives 10
  • 1 Leading financial services group in Malaysia Leading market position Market Share: Dec 10 vs Dec 08 Growth (YoY) Industry RankingLoans Domestic Total loans 17.3% (17.7%) 11.0% 1 Consumer loans 16.7% (16.4%) 14.4% 2Consumer Mortgage 13.1% (14.3%) 10.0% 3 HP Loans 18.1% (16.0%) 13.7% 2 Unit trust 68.8% (73.1%) 32.0% 1SME SME loans 15.5% (14.2%) 6.9% 2 Receivables 13.9% (13.7%) 13.3% 2 Billings 22.0% (20.1%) 17.5%Cards 1 Merchant Sales 29.6% (24.9%) 11.6% 1 Card Base 16.4% (15.1%) -16.8% 1 Domestic Total Deposits 15.4% (15.1%) 8.0% 1Deposits Demand Deposits 19.6% (21.4%) 4.3% 1 Savings Deposits 27.5% (27.5%) 7.5% 1 Fixed Deposits 14.4% (12.0%) 13.8% N.A. CASA 23.9% 5.6% 1 Internet Banking 55.1%Network 19.7% 1 ATM 28.3% 0.7% 1 Branch 19.0% 0.3% 1 11
  • Leading market position in Malaysia Market Share: Dec 10 vs Dec 08 Growth (YoY) Industry Ranking Banking Islamic Islamic Financing 24.4% (22.0%) 26.4% 1 Islamic Deposits 21.4% (16.0%) 32.5% 1 Debt Markets 28.6% 1 Investment Banking M&A 16.2% Not applicable 3 Equity & Rights Offerings 6.8% 2 Equity Brokerage 7.9% 3 Business Trade Financing 19.2% (22.1%) 8.5% 1 Management * Combined Life/Family 20.7% 28.9% 1 Insurance & Asset Combined General 11.6% 27.1% 1 Asset Under Management 19.3% 15.7% 4 * Source: LIAM & ISM Statistics (Jan10-Dec10) 12
  • 2 Emerging regional financial leader Worldwide Presence In 8 ASEAN countries China 1 branch • Philippines 1 rep office (50 branches) Thailand: Kim Eng Hong • Kim Eng (4 branches) (41 branches) Kong London 1 branch 1 branch New York • An Binh Bank 1 branch • Cambodia (118 branches) (10 branches) • Vietnam (2 branches) Bahrain • Kim Eng (5 branches) 1 branch Pakistan ASEAN • Malaysia MCB: 1,101 (386 branches) Brunei branches • Kim Eng (3 branches) (6 branches) Singapore (22 branches) Papua New Kim Eng Guinea (3 branches) 2 branches Indonesia: BII (327 branches) Kim Eng (6 branches) 13
  • High growth potential within the region GDP Growth of Selected Countries (FY 2010, % YoY) Loan to GDP Ratio Comparison (2010, %)20.0 160 147 137 14.80 140 12815.0 113 108 120 10.30 100 8510.0 80 7.00 64 6.10 6.60 6.80 60 4.20 4.40 35 5.0 2.90 2.90 3.50 40 28 1.60 1.70 20 0.0 0 Indonesia Korea China Singapore Malaysia Thailand Philippines India South Eurozone Japan Singapore UK Germany Korea Australia Indonesia Hong Malaysia China USA South Kong Taiwan Thailand Asian Banks NIM (2010E, %) * Asian Banks ROA (2010E, %) *8.0 3.0 6.8 2.57.0 2.3 5.8 2.56.0 2.05.0 4.04.0 3.5 3.3 1.5 1.1 1.1 1.1 1.0 1.0 1.0 1.03.0 2.6 2.4 2.3 2.2 1.0 2.02.0 0.6 1.3 0.5 0.31.00.0 0.0 ID PK PH TH IN MY CN KR HK SG TW ID PK IN TH HK CN MY SG PH KR TW * by Credit Suisse (Nov. 2009) Page 14 14
  • Kim Eng: ASEAN’s Established Brokerage Platform Maybank’s Expanded Presence with Kim Eng Maybank Kim Eng also ASEAN Stockbroking Champion Commercial Banking maintains distribution Brokerage / Investment Banking presence in key Retail Banking Ranking M. Share Ranking M. Share Other Services financial markets #4 7% #1 13% Kim Eng including Hong Kong, London and #4 8% #2 12% Brokerage / Investment Banking Other Services New York #3 5% #7 2% Harnessing Synergies Cross-selling Improved Investment Banking and Underwriting Capability Mutual product offerings Leveraging Maybank‘s strong balance Tapping into Kim Eng’s client base of sheet and client relationships 200,000 Kim Eng’s Business and Other Footprint Expansion Cash management support for cash Maybank’s strong capital base can balances held in trust support Kim Eng’s growth initiatives Support for foreign exchange flows (e.g. margin lending) and hedging Enhanced Infrastructure Access to Thailand and Thai market Improved funding cost intelligence Maybank’s branch network to support stockbroking expansion Operational best practices in risk management and IT delivery platform 15
  • Kim Eng: Performance Highlights Resilient Performance; Diversified Presence Resilient Operating Income Sustained Net Income and Net Margin SGD mil SGDmil Net Income Net Margin 580 300 40% 600 35% 250 30% 450 412 26% 24% 30% 343 351 366 200 20% 19% 271 150 149 20% 300 94 102 89 100 72 77 150 10% 50 0 0 0% 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Diversified Presence in Over 10 Countries Brokerage is the Main Contributor 2010 Revenue by Geography 2010 Revenue by Business IndonesiaOthers Interest Gross 4% 5% Income Dividend 10% Income Hong Kong 1% 10% Singapore 48% Commission Thailand and Trading 32% Income 89%Source: Company website & fillings 16
  • Kim Eng now a 50.2% subsidiary of Maybank 44.6% stake acquired from Ronald Ooi and Yuanta1 Maybank Acquired 5.6% stake in Kim Eng from market in January 2011 Shareholding in Maybank now owns 50.2% of Kim Eng Kim Eng and MGO MGO at S$3.10 per share. Offer document to be despatched within 14 - 21 days of 5 May 2011 announcement and is to be open for at least 28 days from the despatch of the offer document Intention to make downstream tender offer for Kim Eng Securities (Thailand)2 announced on 11 May 2011 at a price of Baht 16.00 per share. Offer document Downstream offer to be despatched on the same date as the Singapore offer document is despatched Kim Eng owns 42.4% of ATR Kim Eng, which is listed in the Philippines. If an offer is required for ATR Kim Eng, an appropriate announcement will be made No major integration issues expected as businesses are complementary3 Integration and Ronald Ooi to lead regional equities and Tengku Dato’ Zafrul to lead regional IB. Strategy of Strategy for Kim Eng: Kim Eng Bring on board necessary resources, both people and hardware Fully leverage Kim Eng’s regional origination and distribution capabilities and Maybank’s balance sheet and regional client base Develop and execute a regional marketing strategy 17
  • 3 Transformation Programme Transformation Journey reframed to ensure sustainability To Be A Regional Financial 2015 2010 Services Leader 2008 Beyond Transformation Phase 1 Phase 2 LEAP30 Creates Momentum Converging Aspirations. Active Sectoral CEO-driven agenda – 1st Participation wave target to deliver PBT impact to Groupwide Sector driven agenda – performance. agenda framed and owned organisation-wide. Building up project execution capabilities. Sectors become key drivers of change. Centralised Transformation office as key driver of Execution led by sectors change. and supported by the Transformation team. 30 initiatives cutting across all areas 18
  • Five Strategic Objectives to realise Vision (as articulated since July 2010) By 2015 Our Vision To be a Regional Financial Services Leader Our Mission Humanising Financial Services from the Heart of ASEAN Strategic Objectives 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by 2015 2. Leading ASEAN wholesale bank eventually expanding to Middle East, China & India 3. Domestic Insurance Champion and emerging regional player 4. Truly regional organisation, with ~40% of pre-tax profit derived from international operations by 2015 5. Leading Islamic bank in ASEAN 19
  • New “House of Maybank” Organisation Structure to support aspirations since July 2010 Maybank Group CEO + Support (CFO, CRO,GHC, Legal, Compliance, Communications) Community Global Wholesale Insurance & E ISLAMIC Financial Services Banking Takaful N INSPIRED A Leveraging shared Regaining domestic Being the B distribution, leadership and National L Customer Segment aggressively Insurance E driven, Community pursuing ASEAN Champion and M INTERNATIONAL Bank market expansion by Living the ETIQA E EXPANSION humanising client way N interaction T Enterprise Transformation Services 20
  • Expanded Group Executive Committee to reflect regional focus and drive business growth 21
  • Humanising Financial Services from the Heart of ASEAN ■ Providing the people with access to financing Most extensive retail (385) 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 pricing Islamic financing as a driver ■ Advise customers based on their needs Promoting Islamic first ■ Being at the heart of community User friendly facilities for physically Maybank Global CSR Day (20 Nov 2010) where Maybankers challenged customers participated in group-wide volunteerism Ramps to ease access Automated sliding doors 22
  • Progress of Strategic Objectives Strategy Initiatives ■ Serving consumers and businesses through a One-Stop Shop concept 1 Undisputed No. 1 Retail ■ SME and Business Banking origination at branches Financial Services ■ Focus on Customer Segmentation provider in Malaysia ■ Non-retail deposit through branches by 2015 ■ Industrialisation of Sales and Business Process Leading ASEAN 2 wholesale bank ■ Launched Corporate Client Coverage model supported by product experts eventually expanding ■ Kim Eng to accelerate objective of regional investment banking to Middle East, China ■ In-country and regionalisation of trade finance and cash management & India ■ Completed the General IT System consolidation. 3 Domestic Insurance ■ Keeping track with industry growth Champion and ■ Growing and strengthening agency force emerging regional ■ Growing Bancasssurace business through emphasis on Regular Premium player ■ Growing 3rd party AUM through Mayban Investment Management 23
  • Progress of Strategic Objectives Strategy Initiatives ■ Singapore 4 Truly regional ■ Grow SME segment and expand structured trade business organisation, with ■ Upstream into Investment Banking through collaboration with Kim Eng ~40% of pre-tax profit ■ Increase income contribution from Wealth Management and kick-start derived from Regional Wealth Management Programme international ■ Indonesia (BII) operations by 2015 ■ Continue network expansion ■ Transaction Banking build out ■ Build an innovative and relationship bank for businesses and communities ■ Philippines ■ Cambodia ■ Increased capital to boost growth ■ 2 more branches by year with focus on Corporate, end Commercial and Consumer ■ Local Incorporation ■ Deposit drive to improve Financing to Deposit Ratio 5 Leading Islamic Bank in ■ Building the global wholesale market ASEAN ■ Focus on ICBU business ■ Implementing Global Islamic Banking Strategy by working with GWB 24
  • 4 High Dividend Payout Ratio ■ High Dividend Payout Ratio exceeds policy of 40-60% Dividend Payout Ratio. Gross Dividend (sen), Dividend Yield (%) and Payout Ratio (%) 6.5%* 7.9% Dividend 6.8% 5.9% 40.00% Yield 20.00% 0.00% F… F… 1.5% 76.5%** Payout 70.0% 71.4%** Ratio 60.0% 61.0% 32 20 44 Final Interim 32 29 28 8 11 FY07 FY08 FY09 FY10 FY11 * Based on annualised dividend ** Effective dividend payout ratio after Dividend Reinvestment Plan for the final dividend of FY10 is 23.4% and for the interim dividend of FY11 is 15.6%. 25
  • Capital Adequacy improved after capital raising ■ Capital Adequacy improved on proforma basis after Kim Eng acquisition and SGD1 billion sub-debt Group Bank 14.12% 14.47% 13.19% 13.30% 11.60% 11.01% 31 Mar 11 31 Mar 11 31 Mar 11 31 Mar 11 Before Kim Eng After Kim Eng acquisition Before Kim Eng After Kim Eng acquisition acquisition & SGD sub-debt acquisition & SGD sub-debt Core capital ratio Risk-weighted capital ratio Core capital ratio & Risk-weighted capital ratio Note Cost of Investment of Kim Eng based on 51% acquisition Risk Weighted Assets of Kim Eng based on 100% of total assets (best available info) The capital ratio computation has incorporated DRP reinvestment rate of 91% 26
  • 5 Beneficiary of government economic development initiatives Economic Transformation Programme: Implementation gaining momentum ETP Enablers & Outcomes Target To-Date (2011-2020) (as at 19 Apr 2011) (% of Target) Entry Point Projects (EPPs) 131 54 41.2 EPP Investments (RMb) 794.5 106.4 13.4 Gross National Income Increase (GNI, RMb) 1,072 153.8 14.3 Job Creation (m) 3.3 0.299 9.1 Status of 60 Projects, Enablers, Initiatives announced in the first four ETP Updates Operational: 1) Schlumberger’s Asia area headquarters and global financial hub 2) Talent Corporation 3) Amendment of the Petroleum Income Tax Act. 4) Hovid’s generic drugs supply to Winthrop Pharmaceuticals Commence Implementation: 1) Shell Malaysia’s new diesel processing unit in PD 2) Tenaga Nasional’s Ulu Jelai Hydroelectric project &Work in Progress coal-fired power plant in Manjung1) MRT 3) Palm oil replanting, new planting & raising FFB yield2) University Malaya Health Metropolis 4) YTL Hotel’s Pulau Gaya Resort in Sabah & Majestic3) Asia e-University Hotel in KL; St Regis Hotel @ KL Sentral 5) Cisco’s manufacturing of routing & switching products 6) Phase 1 of AUO Sunpower’s RM2.2b solar cell fabrication facility in Melaka 7) Genting’s Johor Premium Outlets 8) Mydin hypermarkets – land acquisitions completed, 1st of 14 hypermarkets opened in Bukit Jambul, Penang. 9) 16 small sundry shops and stores participated in Small Retailer Transformation Programme (TUKAR) as at Apr Source: PEMANDU 27
  • Economic Transformation Programme: Implementation gaining momentum Companies and investors are raising funds Between RM39b to RM44b in the bond market pipeline to finance ETP projects & investments: Kencana Petroleum Bhd (marginal oil field development under Oil, Gas & Energy NKEA) Syarikat Prasarana (MRT and LRT extension under Greater KL/KV NKEA) 1Malaysia Development Berhad (KL International Financial District under Greater KL/KV NKEA), Mydin (hypermarkets under Wholesale & Retail NKEA) Emery Oleochemicals Group (Palm Oil NKEA) 28
  • Maybank’s Strategic Objectives in line with Financial Sector EPPs■ Banks to benefit through 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) Strategic Objectives Entry Point Projects (EPPs) Opportunities for Maybank 1. Undisputed No. 1 EPP 4: Creating an integrated CFS: Debit card, e-payment internet banking via Retail Financial payment ecosystem Maybank2u.com, reduction in cash and cheque payment Services provider in Malaysia by 2015 EPP 7: Spurring the growth of the CFS: Private Banking, Wealth Management nascent wealth management industry 2. Leading ASEAN EPP 1: Revitalising Malaysia’s Global Wholesale Banking/ wholesale bank capital markets Maybank Investment Bank eventually Equity and Debt Capital Markets (focusing on Sukuk) expanding to EPP 2: Deepening and broadening Initial Public Offering (IPO) Middle East, China bond markets Merger and Acquisition (M&A) & India Extends investment banking scope and reach in South East Asia via Kim Eng 29
  • Maybank’s Strategic Objectives in line with Financial Sector EPPs Strategic Objectives Entry Point Projects (EPPs) Opportunities for Maybank 3. Domestic EPP 5: Insuring most, if not all, of Etiqa Insurance our population Insurance for foreign workers, agriculture EPP 8: Accelerating and sustaining products, protection plans for Champion and a significant asset engineering, construction, property developer and emerging regional oil, gas and energy companies management industry player EPP 6: Accelerating the growth of Accelerate product development and distribution of the private pension industry takaful to promote Malaysia as Islamic Finance hub Mayban Investment Management Grow AUM and re-establish unit trust business 4. Truly regional: 40% EPP 9: Developing regional bank GWB / International Banking of PBT from champions To be the Regional Financial Services Leader in ASEAN by 2015 international operations by 2015 5. Leading Islamic EPP 10: Becoming the indisputable Maybank Islamic global hub for Islamic Promote Islamic products (Islamic First Strategy) bank in ASEAN finance Develop a centre for research and innovation of Islamic Finance and products Capture Islamic banking potential in Greater China and Hong Kong Expansion in Indonesia (Maybank Syariah Indonesia) and region 30
  • Maybank: In a Position of StrengthInvestment Case and StrategyFinancial PerformanceChallenges and Key Takeaways 31
  • On track to achieve KPI for FY2011 KPI for FY2011 Headline KPIs Target 9M11 achievements Return on Equity 14% 15.0% (normalised) Loans and Debt Securities Growth 12% 17.2% Other targets Target 9M11 achievements Loans Growth • Malaysia 12% 13.8% • Singapore 5% 19.4% • BII 24% 26.5% Net Interest Margin Stable 2.63% (-14 bp YoY)* * Normalised NIM is 2.76%, a decline of 4 bps YoY Note: Loans growth for Singapore and BII are in their local currencies 32
  • Net interest margin for 9M11: 2.76% on normalised basis Net interest margin: 9M11 2.80% 2.75% 0.03% 2.70% 0.10% 2.65% 2.76% 2.73% 2.60% 2.63% 2.55% As reported FRS139 Normalised after Forex Normalised after adjustments FRS139 forex adjustments * *Adjustments for Effective Interest Rate, Unwinding and Interest on derivatives 33
  • Growing contribution from International operations Gross Revenue Profit Before Tax 5% 7% International: International: 4% 33% 25% 16% 14% 14% 9M11 9M11 9M11 RM9.61b 67% RM4.54b 75% 12% Malaysia Singapore Indonesia Others 5% 10% International: International: 31% 15% 30% 5% 15% 12% 9M10 9M10 9M10 RM9.18b RM4.01b 69% 70% 34
  • Sustained profit growth: PATAMI for 9M11 rose 13.4% YoY Revenue (RM million) PATAMI (RM million) +22.4% YoY +4.7% YoY +43.3% YoY +13.4% YoY 12,871.7 10,519.0 9,607.9 9,180.5 3,818.2 3,296.0 2,664.0 2,905.7 (normalised) 691.9 FY09 FY10 9M10 9M11 FY09 FY10 9M10 9M11 35
  • Strong performance in CFS and GWB’s corporate banking Group Profit Before Tax (PBT) by business sector (RM million) Global Wholesale Banking (GWB) 13.2% 9M10 9M11 4,541.9 4,011.3 44.3% 35.1% 13.8% -24.2% -5.7% -33.4% 2,342.4 1,623.7 1,215.3 1,146.1 1,008.4 886.3 695.7 515.1 258.8 172.5 118.2 89.6 Total Community Corporate Banking Global Market Investment International Insurance, Takaful Financial Services Banking Banking & Asset Management Note: Head Office & Others : –RM912.7m (9M11) vs -RM606.0m (9M10) 36
  • Robust loans growth in 3 home markets Group (RM billion) Malaysia (RM billion) 17.6% YoY 14.9% YoY 17.1% annualised 13.8% annualised 242.8 161.1 215.2 146.0 206.4 140.2 Mar 10 Jun 10 Mar 11 Mar 10 Jun 10 Mar 11 Singapore (SGD billion) Indonesia (BII) (Rupiah trillion) 16.1% YoY 40.7% YoY 19.4% annualised 26.5% annualised 56.7 20.1 47.3 40.3 17.3 17.5 Mar 10 Jun 10 Mar 11 Mar 10 Jun 10 Mar 11 37
  • Malaysia Loans Growth Loans Annualised Growth Malaysia RM 161.1 bil 13.8% Community Financial Services RM 110.3 bil 12.0% Consumer RM 85.2 bil 15.5% Mortgage RM 37.2 bil 10.0% Auto Finance RM 25.5 bil 16.2% Credit Cards RM 4.5 bil 11.6% Unit Trust RM 16.4 bil 26.2% Business Banking / RM 25.1 bil 1.4% SME Global Wholesale RM 50.7 bil 17.7% Banking (Malaysia Ops) 38
  • Deposits: Outpacing loans growth in Malaysia Deposits by country (RM billion) High CASA Ratio for Malaysia and Indonesia BII 19.9 8% Group 37.2% Singapore Malaysia 42.7% 52.6 20% Singapore 23.7% Malaysia 174.7 Other 67% Overseas BII 42.9% 13.5 5% Other overseas 25.0% Deposits Growth Loan to Deposits Ratio Group 13.4% Group 89.8% Malaysia 16.5% Malaysia 88.2% Singapore 3.3% Singapore 90.9% BII 19.2% BII 93.8%-5.5% Others Other overseas 95.0% 39
  • Resilient NIM and improving asset quality Net Interest Margin Asset Quality Pre-FRS 139 Post-FRS 139 6.58% 6.45% 6.16% 5.95% 5.67% 125.6% 137.4% 124.5% 131.8% 87.6% 86.9% 3.07% 120.5% 2.89% 2.83% 2.83% 2.76% 2.70% 2.70% 2.69% 2.59% 2.57% 84.1% 84.6% 1.85% 1.74% 1.68% 1.51% 1.39% 2.99% 2.83% 2.74% 2.39% 1.36% 1.22% 1.20% 1.00% 0.84% 3Q10 4Q10 1Q11 2Q11 3Q11 Group Malaysia Singapore BII 9.96 10.12 9.60 8.87 Cost-to-income ratio 6.31 6.19 6.02 5.63 5.36 55.8% 48.8% 47.4% 3Q10 4Q10 1Q11 2Q11 3Q11 Day 1 1Q11 2Q11 3Q11 Gross NPL / Impaired Loans (RM bn) Net Impaired Loan Ratio 9M09 9M10 9M11 Loan loss coverage 40
  • Consumer Loans: Mortgage and Auto Finance Mortgage Loans: Recording Consistent Growth Auto Loans: Consistent Growth 10.0% YoY 15.2% YoY 10.0% annualised 16.2% annualised 37.2 25.5 34.6 22.8 33.8 22.1 Mar 10 Jun 10 Mar 11 Mar 10 Jun 10 Mar 11 Total Mortgage (RM billion) Auto Loans (RM billion) Mortgage Loans: Market share vs asset quality Auto Loans: Market Share vs asset quality 20.0% 3.0% 14.3% 19.0% 18.7% 2.5% 13.7% 13.1% 13.1% 15.0% 18.0% 17.0% 17.0% 18.1% 16.0% 2.0% Post FRS139 16.0% 8.3% 10.0% 6.9% 15.0% 1.4% 1.2% Post FRS139 1.5% 4.5% 14.0% 3.9% 5.0% 13.0% 0.7% 0.7% 1.0% 12.0% 0.5% 11.0% 0.0% 10.0% 0.0% Dec 08 Dec 09 Dec 10 Mar 11 Dec 08 Dec 09 Dec 10 Mar 11 Gross NPL / Impaired Loan Ratio Gross NPL / Impaired Loan Ratio Mortgage Loan Market Share Auto Loan Market Share 41
  • Cards and SME Cards growth: Maybank vs Industry Business Banking and SME (RM billion) 2.9% YoY Merchant Sales 7.2% 11.3% 1.4% annualised 13.5% 25.1 Industry Receivables 24.8 15.6% 24.4 Maybank Billings 14.4% 17.9% -12.3% Cardbase -10.1% -20% -10% 0% 10% 20% Mar 10 Jun 10 Mar 11 Cards Market Share SME Loans Market Share 29.4% 30.5% 16.1% 21.8% 22.3% 15.8% 15.5% 16.3% 16.7% 15.0% 14.2% 14.5% 14.9% 14.2% Receivables Cardbase Billings Merchant Sales Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Feb 11 Mar 10 Mar 11 42
  • Insurance: Etiqa maintains strong overall position Combined Gross Premium Overall Loss Ratio Lower Than Industry Industry 60.3% Combined -3.1% 57.1% (Maybank) vs 60.3% (Industry) Gross Premium 9.6% 13.0% 26.1% Regular Premium +1.7% Fire 20.0% 17.4% 16.1% 9M10 Credit Premium +2.8% 9M11 Motor 75.2% 73.4% 77.9% Single Premium 69.7% 66.7% 67.3% -72.0% Total Life/Family -12.6% 21.1% 5.7% MAT 29.0% -6.6% Motor +26.9% 6.0% 5.0% Misc 45.2% 45.3% 44.8% Fire +10.1% 46.4% 42.8% 41.6% Total General +15.5% Dec09 Mar10 June10 Sept10 Dec10 0 500 1000 1500 2000 2500 3000 3500 Source : Rolling 12 months (Jan10-Dec10) Note: Industry Loss Ratio is for conventional business only Total Assets grew 9.5% YoY Etiqa maintains top position 9.5% 22.2 ■ No. 1 in Life/Family (new business) 20.3 with market share of 20.7%. ■ No. 1 in General with market share of 11.6% March 2010 March 2011 Source: ISM Statistics (Jan10-Dec10). Total Assets (RM billion) 43
  • Singapore: Stronger growth in business loans Strategy Diversified Loan Portfolio +16.0% YoY +19.3% annualised ■ Shift towards corporate loan growth 20.1 17.3 17.5 ■ Broaden customer base: Key driver 5.7 Others 4.2 4.4 from cards Car Loans 3.3 3.3 3.3 ■ Improve interest margin on credit cards SGD billion 4.6 Housing Loans and consumer credit 4.2 4.1 2.2 2.2 2.6 General Commerce ■ Increase CASA ratio 3.9 3.4 3.6 Building & Construction 3Q10 4Q10 3Q11 Strong financial performance Loans Growth vs Industry ■ Revenue and PBT rose 8.5% and 13.0% YoY driven by 32.0% 30.6% 29.2% growth in business loans (industry grew 18.4% 16.1% 16.1%) 13.6% 11.4% 23.4% 4.97% 16.2% 16.0% ■ Strong growth in fee income led by improvement in 8.6% core business areas e.g. wealth management (+50% -1.38% YoY), credit cards (+97% YoY) and credit related fees (9.6% YoY) ■ Low cost deposits grew 11.5% YoY for savings and Jun 06 Jun 07 Jun 08 Jun 09 Jun 10 Mar 11 15.4% YoY for demand deposits Maybank Singapore Growth Industry Growth 44
  • Bank Internasional Indonesia Revenue and PBT (Rp billion) for 1Q11 (as reported by BII) Net Interest Margin +21.7% Revenue PBT 1,561 6.26% 1,283 1,244 5.89% 5.67% -29.2% 305 228 216 YTD Mar10 YTD Mar10 proforma * YTD Mar11 Mar-10 Dec-10 Mar-11 Gross Loans: Composition (Rp trillion) Loan-to-Deposit Ratio Loan-to-Deposit Ratio Growth (Ann.) 19.0 19.9 93.8% 17.6 22% 17.1 91.3% 89.8% 89.0% 14.3 18.6 18.8 17.7 24% 15.9 85.4% 14.2 12.3 13.4 11.3 12.2 25% 9.1 2.5 2.9 (+33%) 3.3 4.1 85% 2.2 0.5 0.5 0.5 0.4 0.4 -27% Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Syariah Subsidiaries Corporate Consumer SMEC Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 * YTD Mar’10 proforma (after adoption IFRS) 45
  • Bank Internasional Indonesia Branches and ATM Asset Quality Branches 3.52% 2.88% 3.09% ATM + CDM 994 2.79% 952 2.57% 844 893 745 743 748 787 806 274 295 327 337 1.92% 1.87% 1.97% 252 255 255 255 260 1.74% 1.40% Mar-09 Jun-09 Dec-09 Mar-10 Jun-10 Dec-10 Mar-11 Sep-09 Sep-10 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Net NPL Gross NPL Cost to Income Ratio Capital Adequacy: bank only (Credit & Market risk) 67.69% 13.73% 14.87% 67.30% 13.16% 12.50% 11.68% 63.93% YTD Mar10 YTD Mar10 proforma * YTDMar11 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 * YTD Mar’10 proforma (after adoption IFRS) 46
  • MCB Bank: Financial Highlights Revenue and PBT ■ PBT grew 24.8% YoY to PKR8billion despite a weakening macroeconomic environment. +28.1% ■ Loans rose by 7.0% to 259.1 billion. 11.8 ■ Maintained conservative lending approach due to +24.8% 9.2 economic conditions and to clean up portfolio to 8.0 PKR Billion avoid risk provisions. 6.4 ■ Focus is to provide value added services with Revenue operational expansion geographically and upgraded PBT systems. ■ Maintaining strong capital position with effective and 1Q10 1Q11 regularised risk management mechanism and cost control via internal measures. Loans and Deposits +18.1% Key Ratios 1Q10 1Q11 462.3 391.5 ROA 1.28% 1.31% +7.0% ROE 13.76% 16.25% 259.1 242.2 CIR 31.6% 33.5% Loans LDR 61.86% 56.04% PKR Billion Deposits NPL Ratio 9.62% 9.61% Net Interest Margin 8.58% 8.52% 1Q10 1Q11 47
  • Maybank Islamic maintains strong financing growth of 31.9% annualised Islamic Banking Income and PBT ** Maybank Islamic financing (31.9% annualised growth) +49.0% Total Gross Financing = RM43.0 billion as at Mar 11 1035.8 +25.0% 130.9 +64.1% RM million 695.1 14.7 631.9 904.9 12.4 87.8 385.0 11.9 279.3 607.2 +10.4% 35.4 6.9 +86.6% 56.4% 18.1% 9M10 9M11 6.4 7.1 -6.7% 5.0 6.0 +66.5% Fund based income Fee based income 4.3 4.7 4.4 +62.1% 3.9 1.9 3.3 4.0 Allowance for losses on financing PBT and zakat 0.0% 2.2 3.0 2.0 1.5 0.3 0.2 2.0 0.2 0.2 1.5 0.2 0.2 Improving key ratios for Maybank Islamic AITAB STRC Cards Term Financing Cashline-i (consumer) Cashline-i (business) Term Financing Mortgage Financing Trade Financing 3Q10 4Q10 3Q11 Financing to Deposit Ratio* 95.4% 96.6% 87.2% Islamic Financing to 23.2% 24.0% 27.4% Total Domestic Loans* 3Q10 4Q10 3Q11 Net Impaired Financing 1.3% 0.9% 1.6% Ratio** Consumer: +32% annualised Business: +31% annualised * Maybank Islamic **I slamic Banking (includes Maybank Islamic and the Group’s other Islamic operations) 48
  • Maybank: In a Position of StrengthInvestment Case and StrategyFinancial PerformanceChallenges and Key Takeaways 49
  • Macro Challenges Inflationary pressure in Malaysia, Singapore and Indonesia may impact consumer sentiment. Rising household debt poses greater risk on the banking system. Further tightening measures by central banks to curb consumer loans growth. Central banks could impose greater capital requirement in light of Basel III. Competition in key home markets causing pricing and margin pressure. Entry of foreign banks in Malaysia will also heighten competition. 50
  • Key Takeaways Maybank is making good progress towards achieving its strategic objectives by 2015, with ROE target of 18% by then. Group transformation initiatives under the New House of Maybank is gaining traction demonstrated by growth in key business areas. Kim Eng will contribute towards acceleration of regional expansion in investment banking and growth in fee income. Economic Transformation Programme will create opportunities for Maybank’s domestic operations and is expected to contribute positively from FY12 onwards. Robust capital management with Dividend Reinvestment Plan in place. 51
  • Thank 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 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.MALAYAN BANKING BERHAD Khairussaleh Ramli Hazimi Kassim Raja Indra Putra Raja Ismail14th Floor, Menara Maybank Group Chief Financial Officer Head, Strategy and Corporate Finance Head, Investor Relations100, Jalan Tun Perak Contact: (6)03-2074 4288 Contact: (6)03-2074 8101 Contact: (6)03-2074 858250050 Kuala Lumpur, Malaysia Email: khairul@maybank.com.my Email: hazimik@maybank.com.my Email: rajaindra@maybank.com.myTel : (6)03-2070 8833www.maybank.com 52