Malayan Banking Berhad (Maybank) 2Q FP11 Analyst Presentation

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Maybank 2Q FP11 Analyst Presentation

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Malayan Banking Berhad (Maybank) 2Q FP11 Analyst Presentation

  1. 1. Investor Presentation Financial Results 6-Month Financial Period ended 31 December 2011 23 February 2012 www.maybank.com0
  2. 2. Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects1Financial Results: 6-Month Financial Period ended 31 December 2011
  3. 3. Key Highlights: Financial performance continued to improve  Strong revenue growth and continued profit growth for 6-month Financial Period (FP) 2011  Revenue grew 21.6% YoY on the back 16.2% growth in fund based income and 32% growth in fee income  Revenue grew 17.3% excluding insurance surplus transfer & new takaful framework implementation.  6-month FP 2011 PATAMI grew 20.0% YoY to RM2.58 billion; 2QFP2011 PATAMI grew 15.2% YoY to RM1.30 bil  Growth seen across all business pillars  All business pillars recorded double digit revenue growth  PBT rose by RM597 million (+20.1%) YoY mainly due to growth in:  Community Financial Services (+RM257m, +18.0%)  Global Wholesale Banking (+RM90m, +7.8%)  Insurance & Takaful (+RM295m, +323.1% )  International (+RM159m, +19.4%)  On annualised basis Group loans grew 16.2% (23.7% YoY), driven by strong loans growth of 23.7% in Singapore (29.3% YoY) and 31.2% in BII (25.0% YoY) while domestic loans grew 10.0% (17.4% YoY).  Allowances for losses on loans for FP11 improved by 13.9% YoY primarily due to higher recovery and lower individual allowance. Net Impaired Loan ratio improved to 1.86% in Dec 2011 from 2.25% in Dec 2010.  Strong Financial Position  Group shareholders’ funds of RM33.4 billion, total assets of RM451.3 billion  Capital Adequacy Ratio of 16.26% (assuming a 85% DRP reinvestment rate)  Exceeded Headline KPIs for FP2011  ROE of 16.2% exceeded target of 16.0%, & Loans and Debt Securities growth of 16.3% against 12% target  Continued high dividend payout of 79.9%  Proposed final dividend of 36 sen per share less 25% tax.  The dividend consists of 4 sen cash portion and 32 sen electable portion for the DRP.2
  4. 4. Key Corporate Developments: Eventful 6-Month period  Change of Financial Year End from 30 June to 31 December.  Branding Initiatives  Prime Minister launched refreshed Maybank Group corporate identity  New corporate identity for Kim Eng (Maybank Kim Eng)  BII rebranding in progress  New Appointments  Dato’ Khairussaleh appointed as President Director/CEO of BII, subject to Bank Indonesia approval.  Michael Foong appointed Chief Strategy & Transformation Officer, Maybank Group  Network Expansion During the financial period Maybank added new branches in Malaysia (+6, bringing total to 392) and Indonesia (+7 to 346). Network expansion also took place the Philippines (+5 to 50) and Cambodia (+1 to 11) during the year.  Medium Term Funding  28 Dec 2011. Issuance of RM1.0 billion of Subordinated Notes under its RM3.0 billion Subordinated Note Programme in two tranches: RM750m, 10 non-callable 5 basis priced at 3.97% and RM250m, 12 non- callable 7 basis priced at 4.12%.  10 Feb 2012. Issuance of USD400 million Regulation S senior unsecured notes under its USD2.0 billion Multicurrency Medium Term Note Programme, priced at 3.0% and was 5 times oversubscribed.3
  5. 5. The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011….  Annualised loan growth for Jan-Dec 2011 of 16.2% 1. Growing loans & deposits with pricing exceeded loan growth 12-month of 12% discipline  NIM saw a marginal decline to 2.53%  Continued roll-out of our branch transformation 2. Reinforcing community banking & program with signature branches in various locations addressing SME fundamentals  Annualised loan growth of 9.1% for business banking & SME loans  International coverage teams in place to secure cross 3. Intensify client coverage collaboration with border deals & service regional clients product partners, with regional  Wholesale banking product heads in Singapore, responsibility. Indonesia, Hong Kong, China and Philippines.  Utilization of new regional franchise to distribute IPO transactions both domestically & regionally 4. Realise investment banking synergies  Maybank-KE post merger integration planning between Maybank IB & Kim Eng including quick wins completed & full implementation to follow in 20124
  6. 6. The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011….  Additional 19 branches & 136 ATMS to BII’s network 5. Continue asset & network expansion between Jan-Dec 2011 in BII, fix WOM & grow Syariah  Acquisition of minority interest in MSI & pursue banking in Indonesia acquisition of MSI by BII in 2012  Total AUM grew 8.7% on annualised basis  Retained no.1 position in life/family Takaful & general 6. Grow insurance assets under Takaful & largest agency force management & build agency force  Roll out of development programmes to ensure a professional and competent agency force  Roll-out of service improvement programs such as problem resolution initiatives, ATM/CDM uptime performance, cut-down average waiting time, improve 7. Enhance service quality, customer product knowledge among frontline staff experience & satisfaction  Results from external customer engagement surveys indicate continued improvement in service levels  Roll-out of IT transformation programme on track for 8. Implement the Group IT FY2012 (e.g. delivery of Branch Front End and Cash Transformation Management System)5
  7. 7. The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011….  Establishment of international client coverage team, including wholesale banking product heads operating in Singapore, Indonesia, Hong Kong & Philippines 9. Complete infrastructure & framework  Planning of regional product initiatives (credit cards, across multiple products & countries wealth management, auto finance, stock broking and money market express.  Core equity ratio as at December 2011 at 9.13% (Group), assuming 85% DRP reinvestment rate 10. Gear-up for Basel III requirement  Mechanisms to manage capital base including placements, divestments and ESOS schemes.  Completed Brand refresh for Maybank Group  Continue to embed the Maybank brand across 11. Brand refresh for the Group business including Maybank KE and BII.6
  8. 8. Key Performance Indicators for 6-Month FP11 Headline KPIs Target 6-Month FP11 achievements Return on Equity 16% 16.2%* Loans and Debt Securities Growth 12% 16.3%* Other targets Target 6-Month FP11 achievements Group Loans Growth 12% 16.2%* • Malaysia 12% 10.0%* • Singapore 8% 23.7%* • BII 24% 31.2%* Group Deposits Growth 14% 22.5%* Risk Weighted Capital Ratio (RWCR) > 12% 16.4% Note: Loans growth for Singapore and BII are in their local currencies * Annualised growth7
  9. 9. Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects8Financial Results: 6-Month Financial Period ended 31 December 2011
  10. 10. 2Q FP11 PATAMI rose 15.2% YoY to RM1.30 billion Quarter RM million 2Q FP11 1Q FP11 QoQ 2Q FY11 YoY 31 Dec 11 30 Sep 11 Change 31 Dec 10 Change Net interest income 2,152.7 1,873.6 14.9% 1,813.2 18.7% Net Fund based income (Islamic Banking) 427.0 438.5 -2.6% 329.6 29.5% Total net fund based income 2,579.7 2,312.1 11.6% 2,142.9 20.4% Net income from insurance business* 322.3 96.5 234.0% 41.0 685.5% Non-interest income 1,151.5 1,222.7 -5.8% 1,034.9 11.3% Fee based income (Islamic Banking) 64.7 77.8 -16.8% 63.2 2.3% Total fee-based income 1,538.5 1,397.0 10.1% 1,139.2 35.1% Net income 4,118.2 3,709.1 11.0% 3,282.1 25.5% Overhead expenses (2,054.0) (1,887.9) 8.8% (1,634.1) 25.7% Operating Profit before allowances for losses 2,064.2 1,821.3 13.3% 1,648.0 25.3% on loans Allowance for losses on loans (230.3) (98.7) 133.3% (117.5) 96.0% Impairment losses on securities, net (68.3) 1.0 -6804.8% (6.3) 983.6% Operating Profit 1,765.6 1,723.5 2.4% 1,524.2 15.8% Share of profits in associates 37.7 36.5 3.3% 37.8 -0.2% Profit before taxation and zakat 1,803.4 1,760.0 2.5% 1,562.0 15.5% Taxation & Zakat (432.9) (454.2) -4.7% (435.4) -0.6% Minority Interest (73.8) (19.5) 279.0% (1.4) 5224.0% Profit after Tax and Minority Interest 1,296.7 1,286.4 0.8% 1,125.2 15.2% (PATAMI) EPS (sen) 17.22 17.20 0.1% 15.72 9.5% *net of insurance claims9
  11. 11. FP11 PATAMI rose 20.0% YoY to RM2.58 billion 6 Months RM million 6-Month FP11 6-Month FY11 YoY 31 Dec 11 31 Dec 10 Change Net interest income 4,026.3 3,587.8 12.2% Net Fund based income (Islamic Banking) 865.5 623.8 38.7% Total net fund based income 4,891.8 4,211.6 16.2% Net income from insurance business* 418.8 127.8 227.8% Non-interest income 2,374.2 1,989.2 19.4% Fee based income (Islamic Banking) 142.5 107.2 32.9% Total fee-based income 2,935.5 2,224.2 32.0% Net income 7,827.3 6,435.8 21.6% Overhead expenses (3,941.8) (3,136.1) 25.7% Operating Profit before allowances for 3,885.5 3,299.7 17.8% losses on loans Allowance for losses on loans (329.1) (382.2) -13.9% Impairment losses on securities, net (67.2) (20.2) 232.5% Operating Profit 3,489.2 2,897.2 20.4% Share of profits in associates 74.2 69.2 7.3% Profit before taxation and zakat 3,563.4 2,966.4 20.1% Taxation & Zakat (887.1) (786.1) 12.8% Minority Interest (93.3) (26.9) 246.5% Profit after Tax and Minority Interest 2,583.1 2,153.4 20.0% (PATAMI) EPS (sen) 34.42 30.25 13.8% *net of insurance claims10
  12. 12. Strong Balance Sheet: Total Assets grew 19.1% annualised, LDR improved to 87.5% Annualised YoY RM billion Dec 11 Jun 11 Dec 10 Growth Growth Cash and short-term funds 49.1 38.8 53.0% 24.6 99.5% Deposits with financial institutions 6.5 10.3 -74.6% 12.4 -47.8% Securities purchased under resale agreements 1.4 - - - - Securities portfolio 68.1 61.0 23.0% 61.9 10.0% Loans, advances and financing 274.4 254.0 16.1% 219.4 25.1% Life, general takaful and family takaful fund assets 19.9 19.2 7.4% 18.6 6.7% Other assets 32.0 28.7 23.1% 20.7 54.4% Total Assets 451.3 412.0 19.1% 357.6 26.2% Deposits from customers 313.7 282.0 22.5% 248.1 26.4% Deposits and placements of banks and FI 36.8 33.3 20.8% 28.8 27.4% Borrowings 7.2 5.4 63.8% 3.2 127.7% Subordinated debts 14.2 10.8 62.2% 7.0 101.6% Capital Securities 6.1 6.1 -0.2% 6.0 1.5% Insurance & Takaful liabilities & policyholders funds 19.9 19.2 7.4% 18.6 6.7% Other liabilities 18.8 22.6 -34.1% 16.1 16.6% Total Liabilities 416.6 379.5 19.6% 327.9 27.0% Shareholders Funds 33.4 31.5 12.6% 28.9 15.6% Non-controlling interest 1.2 1.0 44.0% 0.8 61.1% Total Liabilities & Equity 451.3 412.0 19.1% 357.6 26.2% Loan-to-deposit Ratio 87.5% 90.1% 88.4%11
  13. 13. Gross loans grew 16.2% annualised (23.7% YoY), driven by growth in BII of 31.2% (25.0% YoY) and Singapore 23.7% (29.3% YoY) Annualised YoY RM billion Dec 11 Jun 11 Dec 10 Growth Growth Community Financial Services 120.7 112.5 14.4% 106.1 13.7% Consumer 94.9 87.9 15.9% 81.2 16.8% Total Mortgage 42.1 38.6 18.1% 36.2 16.3% Auto Finance 27.7 26.0 12.8% 24.3 13.9% Credit Cards 5.3 4.9 17.6% 4.4 21.7% Unit Trust 18.5 17.1 16.3% 14.7 25.6% Other Retail Loans 1.3 1.3 2.7% 1.6 -21.7% Business Banking + SME 25.8 24.7 9.1% 24.9 3.5% GWB (Corporate) (Malaysia) 57.7 57.4 1.2% 45.9 25.9% Total Domestic 178.6 170.1 10.0% 152.2 17.4% International 102.2 89.4 28.7% 76.3 34.0% Singapore (SGDbn) 24.7 22.1 23.7% 19.1 29.3% BII (Rupiahtril) 67.2 58.1 31.2% 53.7 25.0% Others 18.4 14.7 49.7% 12.4 48.6% Investment Banking 1.9 2.0 -7.5% 0.2 1138.7% Gross Loans 282.8 261.5 16.2% 228.7 23.7% * Including Islamic loans sold to Cagamas and excludes unwinding of interest12
  14. 14. Deposits grew 22.5% annualised (26.4% YoY), driven mainly by growth in Singapore of 33.3% (21.5% YoY) and Malaysia 22.3% (28.4% YoY) Malaysia Singapore BII Group Annualised YoY Annualised YoY Annualised YoY Annualised YoY RM bil SGD bil Rupiah tril RM bil Growth Growth Growth Growth Growth Growth Growth Growth Savings Deposits 32.9 9.8% 11.6% 2.9 12.2% 10.1% 17.6 41.0% 28.1% 47.0 13.3% 14.0% Current Accounts 47.5 3.4% 14.5% 2.8 25.3% 19.7% 12.4 5.2% 21.4% 58.4 1.7% 13.8% Fixed Deposits 103.2 48.1% 41.0% 20.2 36.8% 23.0% 40.4 6.5% 21.7% 181.3 37.7% 33.0% Others 25.2 -10.4% 36.4% 0.5 83.7% 52.3% - - - 26.5 -7.8% 37.3% Total Deposits 208.8 22.3% 28.4% 26.5 33.3% 21.5% 70.4 14.0% 23.2% 313.7 22.5% 26.4% Low cost funds (CASA) 38.4% 21.8% 42.6% 33.6% LD Ratio 82.6% 92.5% 93.9% 87.5% 96.4% 93.9%89.2% 88.8% 88.9% 90.1% 92.5% 91.3% 90.7% 87.7% 88.1% 86.3% 87.5% 88.4% 82.6% 81.2% 80.9% 87.4% 87.5% 86.8%Jun 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 09 Jun 10 Dec 10 Jun 11 Dec 1113
  15. 15. Asset Quality improved with Net Impaired Loan ratio declining to 1.86% Allowance for losses on loans Net Impaired Loan Ratio -13.9% +96.0% YoY 382.2 2.99% YoY 329.1 2.83% 2.74% +133.3% 264.7 QoQ 2.39% 230.3 2.25% 2.18% 1.86% 117.5 98.7 72.2 47.71Q FY11 2Q FY11 3Q FY11 4Q FY11 1Q FP11 2Q FP11 6-Month 6-Month Day 1 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 FY11 FP11 1 Jul 1014
  16. 16. Group Non-Interest Income increased 32% YoY to RM2.94 billion. Excluding Kim Eng & surplus transfers for the life fund, it totaled RM2.66 bil - a 19.6% YoY increase +19.4% 2,374 6 Months FY11 6 Months FP11 ended 31 Dec 2010 ended 31 Dec 2011 1,989 +27.4% 1,567 1,230 RM million +18.1% -31.1% -38.6% +156.0% +227.8% + 32.9% 419 342 357 289 143 219 230 90 128 107 24 16 Total non-interest Commission, service Investment & Trading Unrealised gain on Foreign Exchange Other Income Net income from Fee income from income charges and fees Income securities & profit Insurance Business Islamic Operations derivatives#Excluding +4.8% +7.1% +11.5% -151.1% -39.1% +88.6% +217.9% +32.9%Kim Eng 2,085 1,318 323 59 217 169 406 143Excluding insurancesurplus transfer & new +1.6%takaful framework 130implementation Includes net income from insurance business & fee income from Islamic operations 15 # Interest rate derivatives
  17. 17. Overheads grew 25.7% YoY due to KE consolidation & higher personnel costs – trending CIR slightly higher to 49.8% from 48.1%. Excluding KE, overheads grew 13.8% YoY. Personnel costs IT Expenses +25.7% YoY Marketing Expenses 3,941 Admin, general expenses & fees & 6 Months FP11 2Q FP11 brokerage Overhead Expenses With KE Without KE 3,136 1,332 QoQ YoY YoY YoY +25.7% YoY Personnel costs 4.5% 27.8% 25.5% 15.2% IT Expenses 7.0% 15.4% 16.9% 8.9% +8.8% QoQ 1,021 Marketing Expenses 47.0% 15.6% 13.9% 10.3% RM million 240 Admin, general expenses 2,054 273 10.2% 27.0% 30.5% 13.3% 1,887 & fees & brokerage 211 Total 8.8% 25.7% 25.7% 13.8% 1,634 233 698 634 550 143 97 141 124 132 2,097 122 1,671 1,025 1,072 838 2Q FY11 1Q FP11 2Q FP11 6 Months 6 Months FY11 FP1116
  18. 18. Capital Adequacy remained strong with DRP and RWA optimisation Adjusted for dividend payment and reinvestment made under Full electable Assuming 85% Full electable the Dividend Reinvestment Plan (DRP) portion paid reinvestment rate portion in cash reinvested 15.20% 14.16% 14.12% 14.71% 16.26% 16.37% 15.66% 11.80% 11.60% 11.68% 10.68% 11.55% 11.65% 10.95% 8.73% 8.55% 8.77% 8.22% 8.53% 9.13% 9.23% 31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11 31 Dec 11 31 Dec 11 31 Dec 11 Core Equity Ratio* Core Capital Ratio Risk Weighted Capital Ratio 13.38% 13.62% 13.19% 13.12%(3) 15.54% 15.68% 14.73% 13.15% 13.04% 13.12%# 13.19% 14.23% 14.37% 13.45% 31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11 31 Dec 11 31 Dec 11 31 Dec 11 Core Equity Ratio* Core Capital Ratio & Risk Weighted Capital Ratio Note: * Core Equity Ratio computation is based on phase-in / transitional arrangements announced by BNM & BCBS # Core Equity Ratio is capped at Core Capital Ratio & Risk Weighted Capital Ratio17
  19. 19. Consistently rewarding shareholders with high dividend payout ratio  Final dividend payout of 36 sen  Net dividend of 27 sen = 3 sen cash portion + 24 sen electable portion  Dividend Payout Ratio of 79.9% exceeds policy of 40% – 60% Gross Dividend (sen) and Payout Ratio (%) 76.5% 74.9% 79.9% 70.0% 60.0% 61.0% 29 32* 18 44* Final Interim 36 * 29 26 28* 8 11 FY07** FY08** FY09 FY10 FY11 FP11 * subject to Dividend Reinvestment Plan ** adjusted for 1:4 Bonus Issue in February 2008 and 9:20 Rights Issue at RM2.74 in March 200918
  20. 20. Maybank Group: Key Ratios FP11 FY11 FY10 FY09 Net Interest Margin 2.53% 2.56% 2.80% 2.72% Return on Equity 16.2% 15.2% 14.5% 12.8% Fee to Income Ratio 37.6% 36.6% 33.4% 33.0% Cost to Income# 49.8% 49.6% 47.3% 52.8% Loan-to-Deposit Ratio 87.5% 90.1% 86.8% 87.4% Post-FRS 139 Pre-FRS 139 Asset Quality Gross NPL or Impaired Loan Ratio 2.85% 3.20% 2.90% 3.46% Net NPL or Impaired Loan Ratio 1.86% 2.25% 1.22% 1.64% Loan Loss Coverage 86.9% 82.3% 124.5% 120.3% Charge off rate (bps) 25 23 53 59 Capital Adequacy (Group) Core Capital Ratio 11.55%^ 11.68%* 10.88%* 10.81% Risk Weighted Capital Ratio 16.26%^ 15.20%* 14.49%* 14.81% # Total cost excludes amortisation of intangibles for BII and Kim Eng ^ Assuming 85% DRP reinvestment rate *19
  21. 21. Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects Financial20 Results: 6-Month Financial Period ended 31 December 2011
  22. 22. Revenue and PBT growth across most sectors 6 Months FY11 6 Months FP11 ended 31 Dec 2010 ended 31 Dec 2011Revenue (RM million) +21.6% Global Wholesale Banking (GWB) +38.4% 7,827 +13.4% 6,436 +35.7% -2.7% +281.2% +14.0% +101.6% 3,386 2,985 2,438 2,139 806 812 594 790 144 550 295 595 Total Community Corporate Banking Global Markets Investment International Insurance, Takaful & Financial Services Banking Banking Asset Management (Inc. Kim Eng) Profit before tax (RM million) +20.1% Global Wholesale Banking (GWB) 3,563 +7.8% 2,966 +18.0% 1,689 +35.7% -8.6% -14.8% +19.4% +323.1% 1,432 818 977 596 659 602 439 386 62 52 91 Total Community Corporate Banking Global Markets Investment International Insurance, Takaful & Financial Services Banking Banking Asset Management (Inc. Kim Eng)21 Note: Head Office & Others: Revenue and PBT : -RM534.3m (6 Months FY11) vs. –RM738.7m (6 Months FP11)
  23. 23. Revenue recorded double digit growth across most sectors Net Fund Based Income (including Islamic Banking Income) rose 16.6% 6 Months FY11 6 Months FP11 ended 31 Dec 2010 ended 31 Dec 2011RM million +16.6% Global Wholesale Banking (GWB) +33.6% 5,034 +11.9% 4,319 2,621 +39.3% -7.4% +15.9% -18.0% +1,545.2% 2,343 1,600 1,381 413 575 337 312 8 125 43 35 Total# Community Corporate Banking Global Markets Investment International Insurance, Takaful & Financial Services Banking Banking Asset Management # Includes expenditures of Head Office & Others of RM234 million for 6 Months FP11 and RM204 million for 6 Months FY11 Non-Interest Income grew by 19.4% Global Wholesale Banking (GWB) +43.0% +19.4% RM million 2,793 2,116 +10.5% +19.2% +27.5% +0.6% +210.9% +122.7% 642 765 759 839 560 475 478 425 182 232 137 251 Total# Community Corporate Banking Global Markets Investment International Insurance, Takaful & Financial Services Banking Banking Asset # Includes expenditures of Head Office & Others of RM505 million for 6 Months FP11 and RM329 million for 6 Months FY11 Management^ ^ Includes net income from insurance business of RM419 million for 6 months FP11 and RM128 million for 6 Months FY1122
  24. 24. Revenue and PBT by geography Revenue Profit Before Tax Gross loans6-Month FP11 * Including Islamic loans sold to Cagamas and(July 11 – Dec 11) excludes unwinding of interest International: International: International: 36% 27% 37% 5% 6% 7% 5% 8% 15% 16% RM7.83b RM3.56b 22% RM282.8b* 16% Dec 2011 64% 63% 73% Malaysia Singapore 4% 16% 12% 68% Indonesia Others6-Month FY11(July 10 – Dec 10) 6% 10% 6% 3% 8% 16% 14% RM6.44b RM2.97b 21% RM261.5b* 11% June 2011 67% 65% 73% International: International: International: 33% 27% 35% 23
  25. 25. Community Financial Services: Mortgage grew 18.1% with strong growth in approvals Strong growth despite intense competition Asset quality continued to improve +16.3% YoY 4.5% +18.1% annualised 42.1 3.1% 36.2 38.6 5.7 4.5 5.0 RM billion 2.2% 33.6 36.4 31.7 Dec 10 Jun 11 Dec 11 Dec 10 Jun 11 Dec 11 Impaired loan ratio - Mortgage Housing loans Shophouse loans Market share increasing Strong Growth in Mortgage Approval* +51.1% YoY 22.8 13.2% 16.8 15.1 RM billion 13.1% 13.0% 13.0% 12.9% 12.9% Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Dec 09 Dec 10 Dec 11 Total Mortgage Market Share Mortgage Approval24 * Based on new extraction rule
  26. 26. Community Financial Services: Auto Finance improved in volume and market share Auto Finance grew 14.2% YoY in Dec 11 20.0% Asset quality remained stable with increasing 2.0% +14.2% YoY market share 19.5% +13.3% annualised 1.5% 19.0% 19.4% 27.2 25.5 18.4% 23.8 18.5% 18.8% 1.0% RM billion 18.0% 0.5% 17.5% 0.7% 0.5% 0.5% 17.0% 0.0% Dec 10 Jun 11 Dec 11 Impaired loan ratio - Auto Dec 10 Jun 11 Dec 11 Hire PurchaseMarket Share Auto Finance Market Share Non-national cars form 65% of total Auto Finance loans New cars form 87% of total Auto Finance loans Non-national cars 65% New cars 87% National Cars 35% Used cars 13%25
  27. 27. Community Financial Services: Cards continued to grow above market growth Cards Market Share Cards performance outperforming industry Dec 11 Dec 10 YoY Maybank Industry* Cardbase 17.9% 16.3% Cardbase 5.5% -4.0% Billings 24.3% 22.5% Billings 21.5% 12.5% Receivables 15.3% 14.0% Receivables 18.7% 9.0% Merchant Sales 30.4% 29.3% Merchant Sales 16.5% 12.0% • Industry figures for cards includes commercial banks and non-FI • Card base excludes Debit cards players • Merchant and Billings consist of transactions done through Credit, Charge and Debit cards Cards receivables Card base (‘000) +18.7% YoY +5.5% YoY +17.7% annualised +1.8% annualised 1,474 1,487 5.20 1,410 4.78 4.38 RM billion Dec 10 Jun 11* Dec 11* Dec 10 Jun 11 Dec 11 *Based on new market segmentation effective June 11 onwards26
  28. 28. Business Banking and SME: Deposits grew at 46.3% annualised Loans improved by 9.1% annualised Strong deposits growth at 46.3% annualised 67.9 +46.3% +9.1% 60.4 annualised 57.8 annualised 50.7 25.8 47.3 24.2 25.3 25.0 24.7 24.6 41.2RM billion RM billion Sep 10 Dec 10 Mar 11 Jun 11* Sep 11* Dec 11* Sep 10 Dec 10 Mar 11 Jun 11* Sep 11* Dec 11* *Figures are based on new market segmentation effective June 11 *Figures are based on new market segmentation effective June 11 SME loans market share improving Business Banking and SME NPL remained stable (based on Bank Negara definition*) Pre-FRS139 Post FRS139 19.2% 17.1% 16.2% 17.2% 17.4% 14.9% 17.0% 13.0% 13.0% 16.4% 16.5% 11.5% 11.8% 11.4% 15.5% 15.5% 10.2% 14.9% Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 *SME includes loans under GWB (Corporate) ); Classification by Loan Size27
  29. 29. Global Wholesale Banking: Loans growth driven by Term Loans and STRC & Overdraft Total GWB loans recorded 1.2% annualised growth Strong position in terms of Trade Finance Market Share 27.6 26.9% +6.1% Term Loans 27.7 25.6% 25.1% 24.5% 26.8 23.3% 22.5% 22.6% Dec 11 Short Term 18.9RM billion Sep 11 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Revolving +8.8% 18.5 Credit & Jun 11 Overdraft 18.1 Corporate banking: Asset Quality remained stable 11.2 Pre-FRS139 Post FRS139 Trade Finance 11.6 -20.5% 12.5 4.2% 3.9% 3.7% 3.4% 3.4% 3.5% 1.3% 1.5% 1.2% Total GWB loans grew 1.2% to RM57.7 billion as at 31 Dec 2011. Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 1128
  30. 30. Global Markets: Revenue growth supported by non interest income Revenue performance Credit Rating for Private Debt Securities in Malaysia -2.7% 812.0 789.8 475.0 477.9 +0.6% A and below RM million AAA AAA 27.6% 47.0% -AA to AA 337.0 311.9 -7.4% A and below -AA to AA 6-Month FY11 6-Month FP11 25.4% Net Interest Income Non Interest Income PBT fell 8.6% attributed to lower net interest income and Group Securities Portfolio grew 23.0% annualised to higher impairment losses on securities RM68.1billion -8.6% Others 7.4 +39.8% 658.9 6.2 602.1 PDS / 28.3 +17.3% Dec 11 RM million Corporate Bonds 26.0 Jun 11 Government 32.4 +24.6% Securities 28.8 6-Month FY11 6-Month FP1129
  31. 31. Maybank Kim Eng reported a total income of RM510.8 million with Malaysia contributing 41% of the total income Total Income – Maybank Kim Eng 6-Month FP11 Total Income for Malaysia increased 35% YoY 209.8 19.4 6M FP11 190.4 4.2 145.3 RM million FY11 322.8RM million FY10 214.9 Fee based income 64.3 64.8 FY08 based income Fund FY09 216.7 17.2 9.4 0.0 500.0 Other Income FY08 239.8 Malaysia Singapore Thailand Indonesia Hong Kong Others Equity brokerage league table by country 6-Month FP11 Fee-based Income Segmentation January - December 2011 Country Trading Value Rank Market Share (RM million) Philippines 1 9.3% 19,252 Thailand 1 11.9% 149,357 Indonesia 5 4.7% 40,455 Malaysia 5 6.0% 55,271 Singapore 5* 7.4% 124,285 Vietnam 6 3.6% 2,799 Hong Kong Tier 2 0.2% 32,717 * Rank is estimated based on market share30 30
  32. 32. Recent Notable Deals Maybank IB’s (Malaysia) Industry Position & Market Share (July – December 2011) Industry Rank Total Value Deals / Bumi Armada Berhad Eversendai Corporation Berhad Malayan Banking Berhad Maybank IB Market Share by Value (RM billion) Issues RM2,662,000,000 RM392,300,000 Up to RM3,000,000,000 IPO IPO Ringgit Malaysia Subordinated M&A1 2 27.5 29 34.6% Notes Programme 1 Joint Principal Adviser, Joint Global Sole Adviser, Underwriter and Equity & Rights Offerings 2 0.8 4 15.9% Co-ordinator, Joint Bookrunner, Bookrunner Principal Adviser, Lead Joint Managing Underwriter Arranger, Lead Manager Debt Markets - 2 9.6 62 27.1% July 2011 July 2011 August 2011 Malaysia Domestic Bonds 1 Debt Markets - Malaysian Ringgit Islamic 2 4.5 43 22.2% 1 Bonds Weiye Holdings Limited YTL Power International Berhad Titan Chemicals Equity Brokerage 2 4 26.3 n.a. 6.5% SGD600,000,000 Up to RM5,000,000,000 RM4,060,000 Sources: RTO Medium Term Notes Mandatory General Offer made 1 Bloomberg Financial Advisor Programme by Honam Petrochemical Corporation 2 Bursa Malaysia Joint Lead Arranger, Joint Lead Manager Advisor August 2011 August 2011 October 2011 Pavilion Real Estate Investment DRB-HICOM Berhad PT Bank Internasional Indonesia TBK Trust’s (REIT) Up to RM1,800,000,000 IDR6,000,000,000,000 RM710,300,000 Fixed Rate Senior Unsecured and IPO Islamic Medium Term Subordinated Bond Programme Notes Programme Joint Principal Adviser, Joint Global Co-ordinator, Joint Bookrunner, Principal Adviser, Lead Underwriter Arranger, Lead Manager Joint Lead Managers and Bookrunners November 2011 December 2011 December 2011 We utilised our new regional franchise to distribute the IPO transactions both domestically and regionally31 31
  33. 33. Highlights of Post-Merger IntegrationThe merger of the two entities is planned to take place over a period of 2 years We are here Estimated Timing 6 Weeks 6 Months 18 Months I. Establish Merger II. Conduct Integration Planning III. Execute Integration Plans Framework Kick-started on Phase I Completed Phase II Completed Phase III 1st Jan 2012 Activities involved 1. Set directional strategy 1. Finalised scope and objectives of PMI 1. Roll out initiatives identified in workstreams Phase II across all countries using a 2. Established and launched strategic and systematic approach communications 2. Completed baselining for all to realise revenue and cost countries 3. Mobilised and launched synergies. These initiatives consist Programme Management Office 3. Analysed and defined Target of deployment of employee (PMO) Operating Model for combined programmes, rollout of regional organisation operating model, setting up of 4. Developed merger integration regional IT framework, etc guiding principles 4. Revealed new organisation structure and leadership team 2. Initiatives would eventually 5. Defined merger integration transition to business as usual organisation 5. Rolled out regional internal communications channels 6. Prepared high-level merger integration roadmap 6. Executed quick wins 7. Completed 5-year combined business plan, financial projections and synergy targets 8. Launched new Maybank Kim Eng brand 9. Developed business cases and implementation plans for Phase III32 32
  34. 34. Group Islamic Banking business sustained strong financing and profit growth Group Islamic Banking Income and PBT** Maybank Islamic financing (21% annualised) Total Gross Financing = RM52.4 billion as at Dec 2011 YoY RM million 6-Month FP11 6-Month FY11 Growth Fund based income 865.5 623.8 38.7% +10% Fee based income 142.5 107.2 32.9% Total income 1,008.0 731.1 37.9% 16.6 15.8 +38% +14% +55% +20% Allowance for losses on (61.3) (11.7) 426.3% 14.6 financing 13.2 Profit before tax and 12.3 567.1 429.9 31.9% zakat 9.7 RM billion 8.6 8.8 8.1 7.3 6.7 6.8 4.7 Maybank Islamic: Improving key ratios 3.7 2.5 Dec 11 Jun 11 Dec 10 Financing to Deposit Ratio 83.7% 87.8% 97.9% AITAB # Mortgage Others Term Others Islamic Financing to Financing Financing 28.5% 27.4% 26.1% Total Domestic Loans Net Impaired Financing Dec 10 Jun 11 Dec 11 1.03% 1.25% 1.90% Ratio Consumer: +17% Business: +31% **Islamic Banking (includes Maybank Islamic and the Group’s other Islamic operations)33 # Includes financing sold to Cagamas
  35. 35. Etiqa: No. 1 Position in Life/Family (new business) and General Business Combined Gross Overall Loss Ratio in line with Industry Industry Premium +20.2% 60.0% (Etiqa) vs. 58.4% (Industry) 58.4% Group Premium +57.6% Fire 33.4% 30.7% Credit Premium -2.6% 2Q FP11 20.0% 19.8% 20.0% 28.3% Regular Premium +7.4% 2Q FY11 Single Premium +187.2% Motor 80.0% 75.3% 74.7% 71.6% 72.8% Total Life/Family +20.5% 70.4% MAT 197.7% Misc -10.0% 29.2% -5.4% -7.0% 3.8% 3.7% MAT +35.5% Motor +31.5% Misc 40.8% 38.2% 35.8% 32.4% 30.8% 29.0% Fire +4.5% Total General +19.8% Dec10 Mar11 Jun11 Sept11 Dec11 Industry Source: Loss ratio for Malaysia’s Conventional business only with rolling 12 Months (Oct10 -Sep11). 0 500 1000 1500 2000 2500 Company Source: Loss ratio for Malaysia’s Insurance and Takaful General business with rolling 12 Months (Jan11- Dec11)Total Assets (RM billion) Life/Family (New Business) Market Share +8.9 YoY Prudential 15.1% No. 2 in +8.7% annualised Etiqa 14.8% Life/Family (New Great Eastern 14.6% Business) 23.8 22.8 21.9 General Market Share Etiqa 12.7% No. 1 in General Allianz 9.2% Dec 10 jun 11 Dec 11 MSIG & HLMT 8.5%34
  36. 36. Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects Financial35 Results: 6-Month Financial Period ended 31 December 2011
  37. 37. Singapore: PBT rose 10% boosted by higher fee income Revenue and PBT rose 16.4% and 10.4% YoY respectively Diversified Loan Portfolio 23.8% annualised 6-Month FP11 6-Month FY11 YoY Consumer SGD million 24.6 31 Dec 11 31 Dec 10 Growth 22.0 +92.8% 1.2 19.1 0.8 3.3 Consumer -3.8% 0.8 3.3 SGD billion Net fund based income 240.3 226.2 6.3% 5.3 40% +12.6% 3.3 5.0 Non interest income 144.2 104.2 38.4% 4.3 2.8 Corporate 2.6 +17.4% 2.1 3.5 Total income 384.6 330.4 16.4% 2.7 Corporate +58.7% 2.8 3.2 2.8 2.0 60% +25.1% Provision 8.6 (11.8) -172.8% 3.8 4.6 5.3 +33.0% Profit before tax 218.1 197.5 10.4% Dec 10 Jun-11 Dec-11 Asset Quality relatively stable Maybank Singapore loans growth outpaced industry‘s 0.77% 0.75% 0.63% 0.65% 30.6% 28.6% 0.58% 0.58% 25.4% 0.53% 0.46% 0.47% 14.8% 24.2% 0.25% 0.23% 0.26% 23.4% 11.4% 0.14% 0.18% 0.09% 0.07% 0.09% 0.07% 5.0% -1.4% 8.6% Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Jun 08 Jun 09 Jun 10 Jun 11 Dec 11 Gross NPL ratio Net NPL ratio Maybank Singapore Growth Industry Growth36
  38. 38. BII: Profit before tax grew 108.8% YoY Income Statement 2H FY11 2H FY10 YoY Rp Billion Jul - Dec 11 Jul - Dec 10 % Change Interest income 4,196 3,365 24.7% Interest expense (2,060) (1,556) 32.4% Net interest income 2,136 1,809 18.1% Non-interest income 1,113 1,055 5.5% Gross Operating income 3,249 2,864 13.4% Operating expenses (excluding prov.) (2,345) (2,069) 13.3% Operating income before provision 904 795 13.7% Provisions (453) (579) -21.8% Profit before taxation and zakat 451 216 108.8% Note: Based on numbers consolidated by Group37
  39. 39. BII: Revenue grew 12% on the back of 31.2% consolidated annualised loans growthGroup Revenue and PBT (Rp billion) – Full Year Net Interest Margin +12% 6,332 5,645 5.87% Rp billion +25% 5.67% Revenue 5.43% 985 PBT 5.28% 790 5.22% FY10 FY11 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 FY10 : before adoption SFAS No.50/55; FY11 after Adoption SFAS No.50/55 FY10 : before adoption SFAS No.50/55; FY11 after Adoption SFAS No.50/55 Loan composition (Rp trillion) Loan-to-Deposit Ratio (Bank only) 62.7 88.9% 62.0 85.4% 85.8% 59.5 0.4 83.2% 83.0% 53.7 56.7 0.4 0.4 0.4 17.3 0.4 14.1 14.8 12.2 13.3 21.3 22.2 24.1 19.0 19.9 18.6 18.8 19.1 20.1 21 3.6 4.2 4.6 4.5 4.4 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Subsidiaries Consumer SMEC Corporate Syariah Modified LDR (consolidated) as of Dec 11 : 81.2% Modified LDR (bank only) as of Dec 11 : 78.9% 38
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