Maybank 1Q FY12 Analyst Presentation
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  • 1. Investor Presentation Financial Results First Q t Fi t Quarter FY2012 ended 31 M h 2012 d d March 24 May 2012 www.maybank.com0
  • 2. Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review y Economic Update and Prospects1Financial Results: First Quarter ended 31 March 2012
  • 3. Key Highlights: Sustainable Profit Growth Profit continued to grow in 1Q FY2012 Year on year, revenue grew 27.7% YoY on the back of 14.0% growth in fund based income and 54.5% growth in fee income. Quarter on quarter, revenue grew 5.4% after normalising for insurance surplus transfer and the new takaful framework adjustment. PATAMI of RM1.35 billion grew 3.9% QoQ and 17.9% YoY. Growth seen across all business pillars All business pillars recorded double digit revenue growth except for Community Financial Services which grew 1.6%. PBT rose by RM319 million (+20.2%) YoY mainly due to growth in Global Wholesale Banking (+RM294.4m, +46.4%) and International (+RM135.0m, +41.2%) Group loans grew 6.1% annualised (18.2% YoY) driven by growth of 9.5% in domestic loans (13.8% YoY) and 15.7% growth in BII (23.2% YoY) Gross and Net Impaired Loan ratio continues to improve to 2.44% (March 2011: 3.67%) and 1.57% (March 2011: 2.39%) respectively as at March 2012. Strong Financial Position Group shareholders’ funds of RM34.0 billion, total assets of RM463.3 billion Capital Adequacy Ratio of 15.4% as at 31 March 2012 (based on 88.5% reinvestment rate) Headline KPIs for FY2012 Annualised ROE of 16.0% is above target of 15.6% but Loans and Debt Securities growth of 7.0% is b l 7 0% i below target of 15 2% f 15.2%2
  • 4. Key Corporate Developments Strengthening of Management Dato’ Khairussaleh Ramli officially began as President Director/CEO of BII on 6 April 2012. Appointment of Mohamed Rafique Merican as Group CFO on 1 June 2012 Appointment of Herminio M Famatigan Jr as new CEO of Maybank Philippines M. Jr. Continued Regional Expansion Local incorporation of Maybank (Cambodia) Plc to facilitate further expansion beyond current branch operations in Cambodia Representative office opened in Myanmar in anticipation of market opening ff d f k Putting in place mechanism to acquire full control of 48.5%-owned Kim Eng Vietnam Securities via call option Proposed increase in equity interest in Anfaal Capital ( p q y p (Saudi Arabian Investment Bank) from ) 18% to 35% Continued branch expansion in Indonesia with BII adding 17 branches to 368 in 1QFY12 Dividend Reinvestment Plan to Support Organic Growth Reinvestment rate of 88.5% achieved for Final Dividend for 6 months ended 31 Dec 2011. 88 5% 2011 New shares to be listed on 5 June 2012. Medium Term Financing Improved Funding Profile With: 28 February 2012: Establishes RM7 billion Subordinated Note Programme – Issued Subordinated Notes of RM2.1 billion on 10 May 2012 13 April 2012: Redeems RM1.5 billion Subordinated Bonds 25 April 2012: Redeems US$300 million Subordinated Sukuk 8 May 2012: Issues Senior Notes of US$500 million y $ 14 May 2012: Establishes US$5 billion Multicurrency Medium Term Note Programme3
  • 5. Key Performance Indicators for 1Q FY12 Target 1Q FY12 * Headline KPIs Return on Equity 15.6% 16.0% Loans and Debt Securities Growth 15.2% 7.0% Other targets Group Loans Growth 16.2% 6.1% • Malaysia 13.6% 9.5% • Singapore 11.4% 11 4% -3.6% 3 6% • Indonesia 20.9% 15.7% Group Deposits Growth 12.3% 8.3% Note: Loans growth for Singapore and Indonesia are in their local currencies * Annualised4
  • 6. Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review y Economic Update and Prospects5Financial Results: First Quarter ended 31 March 2012
  • 7. 1Q FY12 PATAMI rose 17.9% YoY to RM1.35 billion Quarter 1Q FY12 2Q FP11 QoQ 3Q FY11 YoY 31 Mar 12 31 Dec 11 Change 31 Mar 11 Change Net interest income , 2,020.7 2,152.7 , -6.1% % 1,771.4 , 14.1% % Net Fund based income (Islamic Banking) 375.6 427.0 -12.0% 329.9 13.8% Total net fund based income 2,396.3 2,579.7 -7.1% 2,101.4 14.0% Net income from insurance business* 87.2 322.3 -72.9% 84.1 3.7% Non-interest income 1,408.0 , 1,151.5 , 22.3% 928.8 51.6% Fee based income (Islamic Banking) 159.2 64.7 146.1% 57.8 175.3% Total fee-based income 1,654.5 1,538.5 7.5% 1,070.8 54.5% Net income 4,050.8 4,118.2 -1.6% 3,172.1 27.7% Overhead expenses (1,994.8) (2,054.0) -2.9% (1,554.0) 28.4% Operating Profit before allowances for 2,056.0 2,064.2 -0.4% 1,618.2 27.1% losses on loans Allowance for losses on loans (195.9) (230.3) -14.9% (72.2) 171.3% Impairment losses on securities, net (0.5) (68.3) -99.3% 4.3 -111.0% Operating Profit 1,859.6 1,765.6 5.3% 1,550.3 20.0% Share of profits in associates 35.0 37.7 -7.2% 25.3 38.3% Profit before taxation and zakat 1,894.6 1,803.4 5.1% 1,575.6 20.2% Taxation & Zakat (528.9) (432.9) 22.2% (389.3) 35.9% Minority Interest Mi it I t t (18.8) (18 8) (73.8) (73 8) -74.5% 74 5% (43.7) (43 7) -57.0% 57 0% Profit after Tax and Minority Interest 1,346.9 1,296.7 3.9% 1,142.6 17.9% (PATAMI) EPS (sen) 17.63 17.22 2.4% 15.60 13.0% *net of insurance claims6
  • 8. Strong Balance Sheet: Total Assets grew 10.6% annualised, LDR stable at 87.2% Annualised YoY RM billion Mar 12 Dec 11 Mar 11 Growth Growth Cash and short-term funds 44.9 49.1 -34.1% 32.0 40.4% Deposits with financial institutions 12.8 6.5 394.2% 8.5 50.8% Securities purchased under resale agreements 1.0 1.4 -120.9% 0.5 101.5% Securities portfolio 71.2 68.1 18.6% 64.2 10.9% Loans, advances and financing 279.1 274.4 6.8% 234.1 19.2% Statutory Deposits with Central Banks 11.1 11 1 10.6 10 6 20.3% 20 3% 4.4 44 151.4% 151 4% Life, general takaful and family takaful fund assets 20.1 19.9 4.0% 19.0 6.0% Other assets 23.1 21.4 31.1% 17.7 30.4% Total Assets 463.3 451.3 10.6% 380.3 21.8% Deposits from customers 320.2 313.7 8.3% 260.7 22.8% Deposits and placements of banks and FI 39.3 36.8 27.5% 34.0 15.7% Borrowings 8.4 7.2 67.8% 4.8 73.4% Subordinated debts 14.2 14.2 0.5% 8.0 77.1% Capital Securities 6.1 6.1 1.0% 6.0 1.6% Insurance & Takaful liabilities & policyholders funds 20.1 19.9 4.0% 19.0 6.0% Other liabilities 19.7 18.8 19.0% 17.1 14.9% Total Li biliti T t l Liabilities 428.0 428 0 416.6 416 6 10.9% 10 9% 349.7 349 7 22.4% 22 4% Shareholders Funds 34.0 33.4 6.8% 29.9 13.8% Non-controlling interest 1.2 1.2 5.8% 0.8 55.2% Total Liabilities & Equity 463.3 451.3 10.6% 380.3 21.8% Loan-to-deposit Ratio 87.2% 87.5% 89.8%7
  • 9. Gross loans grew 6.1% annualised (18.2% YoY), driven by 11.9% growth in Consumer, 12.7% growth in GWB Malaysia and 15.7% growth in BII Annualised YoY RM billion Mar 12 Dec 11 Mar 11 Growth Growth Community Financial Services 123.2 120.7 8.4% 110.0 12.0% Consumer 97.7 94.9 11.9% 84.8 15.1% Total Mortgage 43.4 42.1 12.5% 37.2 16.8% Auto Finance 28.6 27.7 13.0% 25.5 12.0% Credit Cards 5.2 5.3 -7.4% 4.5 16.5% Unit Trust 19.2 18.5 16.1% 16.4 17.7% Other Retail Loans 1.3 1.3 -3.4% 1.3 -4.9% Business Banking + SME 25.5 25.8 -4.4% 25.1 1.7% SME 4.4 4.5 -8.6% 8.6% 14.5 -70.0% 70.0% Business Banking 21.2 21.4 -3.5% 10.6 100.0% GWB (Corporate) (Malaysia) 59.7 57.8 12.7% 50.7 17.7% Other Loans (0.0) 0.1 -441.3% 0.0 -138.2% Total Domestic 182.8 182 8 178.6 178 6 9.5% 9 5% 160.7 160 7 13.8% 13 8% International 102.1 102.2 -0.6% 81.5 25.3% Singapore (SGD billion) 24.5 24.7 -3.6% 20.1 21.8% BII (Rupiah trillion) 69.8 67.2 15.7% 56.7 23.2% Others 19.1 19 1 18.4 18 4 16.6% 16 6% 13.5 13 5 41.5% 41 5% Investment Banking 2.1 1.9 42.7% 0.6 242.2% Gross Loans * 287.1 282.8 6.1% 242.8 18.2% * Including Islamic loans sold to Cagamas and excludes unwinding of interest8
  • 10. Deposits grew 8.3% annualised (22.8% YoY), driven mainly by growth in Singapore of 23.1% (28.0% 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 33.9 12.1% 11.0% 3.0 8.4% 7.5% 16.1 -35.1% 14.7% 47.1 1.1% 10.4% Current Accounts 49.2 14.4% 11.5% 2.6 -28.6% 9.2% 12.3 -2.4% 33.8% 60.5 14.4% 11.6% Fixed Deposits 105.2 7.7% 29.8% 21.8 31.8% 32.8% 43.8 33.1% 16.8% 188.0 14.8% 30.3% Others 23.4 -39.6% 23.3% 0.6 52.0% 115.0% - - - 24.7 -28.1% 25.7% Total Deposits 211.7 4.1% 21.2% 28.0 23.1% 28.0% 72.2 9.8% 26.0% 320.2 8.3% 22.8% Low cost funds (CASA) 39.3% 20.1% 39.3% 33.6% LD Ratio 83.9% 86.6% 95.4% 87.2% Loans-to-Deposit Ratio Malaysia Singapore BII Group 88.8% 88 8% 90.1% 96.4% 93.9% 91.3% 89.2% 88.9% 87.7% 95.4% 87.5% 88.4% 92.5% 90.7% 88.1% 87.5% 86.3% 86 3% 86.6% 86 6% 80.9% 87.4% 87.2% 81.2% 83.9% 86.8% 82.6% Jun  Jun  Dec  Jun  Dec  Mar  Jun Jun Dec Jun Dec Mar Jun  J J Jun  D Dec  J Jun  D Dec  M Mar  Jun  J J Jun  D Dec  J Jun  D Dec  M Mar  Jun  J J Jun  D Dec  J Jun  D Dec  M Mar  09 10 10 11 11 12 09 10 10 11 11 12 09 10 10 11 11 12 09 10 10 11 11 129
  • 11. Asset Quality continues to improve with Gross and Net Impaired Loan ratio declining to 2.44% and 1.57% respectively Allowance for losses on loans Net Impaired Loan Ratio 4.60% +171.3% YoY 4.67% ‐14.9% QoQ 14.9% QoQ 4.20% 4 20% 3.67% 230.3 3.35% 2.99% 3.23% 195.9 2.74% 2.39% 2.84% 2.83% 2.25% 2.18% 2.44% 1.86% 1 86% 98.7 72.2 1.57% 47.7 3Q FY11 4Q FY11 1Q FP11 2QFP11 1Q FY12 Day 1 Sep y p Dec Mar Jun Sep p Dec Mar 1 Jul 10 2010 2010 2011 2011 2011 2011 201210
  • 12. Group Fee-Based Income increased 55% YoY to RM1.65 billion*. Excluding Kim Eng it increased 37% YoY. +51.6% 1,408 1 408 3Q FY11 ended 31 Mar 11 +25.6% 1Q FY12 ended 31 Mar 12 929 787RM million 626 +238.8 ‐95.4% +99.3% +105.7% + 3.7% +175.3% 362 149 182 159 109 84 87 44 24 53 58 1 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 and  profit insurance business Islamic operations derivatives # Excluding         +33.1% +5.9% +210.5% ‐183.3% +98.9% +78.1%% ‐10.5% +175.3% Kim Eng 1,236 664 137 ‐20 361 95 75 159 * Includes net income from insurance business & fee income from Islamic operations # Interest rate derivatives11
  • 13. Overheads grew 28.4% YoY due to Kim Eng consolidation & higher personnel costs. Excluding Kim Eng, overheads grew 18.4% YoY. Personnel costs IT Expenses Marketing Expenses Admin, Admin general expenses and establishment costs +28.4% YoY ‐2.9% QoQ 2,054.0 1,994.8 With KE Without KE 1Q FY12 QoQ YoY YoY on Personnel costs 4.6% 4 6% 29.9% 29 9% 21.2% 21 2% RM millio 1,554.0 698.4  635.4  IT Expenses -7.6% 12.9% 4.7% 440.6  142.9  108.2  Marketing Expenses -24.3% -20.1% -22.1% 141.1  130.3  135.3  Admin, general expenses 115.4  -9.0% 44.2% 28.8% & establishment costs Total -2.9% 28.4% 18.4% 1,071.6  1,120.9  862.6  862 6 3Q FY11 3Q FY11 2Q FP11 2Q FP11 1Q FY12 1Q FY12 ended 31 Mar 11 ended 31 Dec 11 ended 31 Mar 1212
  • 14. Capital Adequacy remains stable and initiatives to optimise RWA will continue Adjusted for dividend payment and reinvestment made under the Based on 88.5%^ Based on 88.5%^ Dividend Reinvestment Plan (DRP) reinvestment rate reinvestment rate 15.20% 16.29%Group 14.16% 14.12% 14.71% 15.35% 11.80% 11.60% 11.68% 11.57% 10.68% 10.97% 8.73% 8.55% 8.77% 9.21% 8.73% 8.22% 31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12 Core Equity Ratio* q y Core Capital Ratio p Risk Weighted Capital Ratio g p 14.46% 15.54% 15.57% 15.54% 13.38% 13.62% 13.19% 13.12% (3)Bank 13.15% 13.12% # 13.19% 14.66% 14.69% 14.26% 14.26% 13.04% 31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12 31 Dec 11 31 Dec 11 Core Equity Ratio* Core Capital Ratio & Risk Weighted Capital Ratio Note: ^ Based on latest indicative acceptance rate on the electable portion of the 4th DRP * 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 Ratio13
  • 15. Maybank Group: Key Ratios 1Q FY12 FP11 FY11 FY10 FY09 Net Interest Margin 2.37% 2.53% 2.56% 2.80% 2.72% Return on Equity 16%** 16.2% 16 2%** 15.2% 15 2% 14.5% 14 5% 12.8% 12 8% Fee to Income Ratio 40.8% 37.6% 36.6% 33.4% 33.0% Cost to Income # 48.7% 49.8% 49.6% 47.3% 52.8% Loan to Deposit Loan-to-Deposit Ratio 87.2% 87.5% 90.1% 86.8% 87.4% Post‐FRS 139 Pre‐FRS 139 Asset Quality Gross NPL or Impaired Loan Ratio 2.45% 2.85% 3.20% 2.90% 3.46% Net NPL or Impaired Loan Ratio 1.57% 1.86% 2.25% 1.22% 1.64% Loan Loss Coverage 94.5% 86.9% 82.3% 124.5% 112.9% Charge off rate (bps) 28 25 23 53 59 Capital Adequacy (Group) Core Capital Ratio* 10.97% 11.57% 11.68% 10.88% 10.81% Risk Weighted Capital Ratio* 15.35% 16.29% 15.20% 14.49% 14.81% # Total cost excludes amortisation of intangibles for BII and Kim Eng * Adjusted for d de d pay e t a d reinvestment made u de t e Dividend Reinvestment Plan ( djusted o dividend payment and e est e t ade under the de d e est e t a (DRP) ) ** Annualised14
  • 16. Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review y Economic Update and Prospects Financial Results: First Quarter ended 31 March 201215
  • 17. Revenue and PBT growth across most sectorsRevenue (RM million) +27.7% 3Q FY11 Global Wholesale Banking (GWB) +61.7% ended 31 Mar 2011 4,051 4 051 1Q FY12 3,172 +1.6% ended 31 Mar 2012 +40.9% +23.9% +331.1% +29.1% +15.9% 1,589 1,614 , , 1,308 1 308 1,013 330 465 373 462 335 78 167 194 Total Community y Corporate Banking p g Global Markets Investment Banking g International Banking g Insurance, Takaful &  , Financial (Inc. Kim Eng) Asset Management Services M million) +20.2% +46.4% 3Q FY11 Global Wholesale Banking (GWB) 1,895 ended 31 Mar 2011 Profit before tax (RM 1,576 1Q FY12 ‐19.7% ended 31 Mar 2012 911 +57.6% +16.7% +315.3% +41.2% +22.4% 731 3 404 408 463 257 350 328 28 116 81 100 Total Community Corporate Banking Corporate Banking Global Markets Global Markets Investment Banking Investment Banking International Banking International Banking Insurance, Takaful &  Insurance, Takaful & Financial Asset Management (Inc. Kim Eng) Services16 Note: Head Office & Others: Revenue and PBT : –RM378.4m (3Q FY11) vs. –RM327.7m (1Q FY12)
  • 18. Revenue grew due to higher fee-based income mainly from GWB and International Net Fund Based Income rose 14.0% 3Q FY11 ended 31 Mar 2011 +14.0% Global Wholesale Banking (GWB) +19.8% 1Q FY12 llion 2,396 , ended 31 Mar 2012RM mil 2,101 +2.5% 1,190 1,221 +40.8% -16.1% +542.4% +20.8% +14.5% 690 832 213 300 188 158 4 28 20 23 Total # Community Corporate Banking Global Markets Investment Banking International Banking Insurance, Takaful &  Financial Asset Management Services # Includes expenditures of Head Office & Others of RM165.4 million for 1Q FY12  and RM204.8 million for 3Q FY11 3Q FY11 Fee‐based Income grew by 54.5% ended 31 Mar 2011 +54.5% Global Wholesale Banking (GWB) +107.0% 1Q FY12 1,654 ended 31 Mar 2012 M million 1,071 -1.4% +41.2% +64.6% +318.5% +47.3% +16.1% RM 399 393 476 304 307 323 117 165 184 73 147 171 Total # Community Corporate Banking Global Markets Investment Banking International Banking Insurance, Takaful &  Financial ^ Asset Management Services S i # Includes expenditures of Head Office & Others of RM162.3 million for 1Q FY12  and RM173.7 million for 3Q FY11 ^ Includes net income from insurance business of RM87.2 million for 1Q FY12 and RM84.1 million for 3Q FY1117
  • 19. Increasing contribution from international operations Revenue R Profit B f P fi Before T Tax Gross loans 1Q FY2012 * Including Islamic loans sold to Cagamas(Jan 12 – Mar 12) and excludes unwinding of interest 5.0% 6.5% International: 6.2% International: International: 37% 27% 36% 6.8% 8.3% 15.5% 15.2% RM4.05b RM1.89b 21.3% RM287.1b* 15.7% Mar 2012 Mar 2012 62.6% 63.9% 73.0% Malaysia Singapore 4% 16% 12% 68% Indonesia Others 3Q FY2011 3.6% 5.0% 5.5% 4.1%(Jan 11 – Mar 11) 8.2% 8 2% 16.5% 13.7% 19.9% RM242.8b* 11.7% RM3.17b RM1.58b Mar 2011 68.2% 66.4% 77.2% International: International: International: 32% 23% 34%18
  • 20. Community Financial Services: Mortgage grew 12.5% annualised with improving asset quality Continued growth despite intense competition Asset quality continued to improve +16.8% YoY * +12.5% annualised 3.9% 42.1 43.4 43 4 3.1% 37.2 2.8% 5.7 6.1 2.2% RM billion 4.7 1.9% 37.3 37 3 M 32.5 36.4 Mar 11 Dec 11 Mar 12 Mar 11 Mar 11 Jun 11 Sep 11 p Dec 11 Mar 12 * Industry grew 14.3% YoY Housing loans Shophouse loans Gross Impaired loan ratio - Mortgage Mortgage market share stable in the  latest quarter Mortgage Approvals *: Still at healthy levels at RM4.6 bil.  6.4 6.0 5.3 5.1 13.2% 13.2% 4.6 RM billion 13.1% 13.0% 13 0% 12.9% Mar 11 Jun 11 Sep 11 p Dec 11 Mar 12 Mar-11 Jun-11 Sep-11 p Dec-11 1QFY12 Mar‐12 * Based on new extraction rule19
  • 21. Community Financial Services: Auto Finance* business improved in volume and market share Auto Finance* grew 12.9% annualised in March 12 Asset quality remained stable with increasing market share +12.3% YoY 20.5% 3.0% 20.0% 2.5% +12.9% annualised 27.2 27 2 28.0 28 0 19.5% 18.8% 18 8% 19.9% 19 9% % 2.0% 25.0 19.0% 19.4% 1.5% 18.5% 19.0% 18.8% 0.7% 1.0%RM billion 18.0% 0.5% 0.6% 0.5% 0.6% 17.5% 17 5% 0.5% 17.0% 0.0% Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Gross Impaired loan ratio Mar 11 Mar 11 Dec 11 Dec 11 Mar 12 Mar 12 Hire Purchase Market Share Hire Purchase Market Share Proportion of national cars increasing New cars form 87% of total Auto Finance* loans 64% Non‐national cars 65% 87% 66% New cars 87% 86% 36% Mar 12 13% Mar 12 National Cars 35% Dec 11 Used cars 13% Dec 11 34% Mar 11 Mar 11 14%20 * Auto Finance data refers to hire purchase arrangements only
  • 22. Community Financial Services: Cards continued to grow ahead of industry Cards Market Share d k h Cards performance outperforming industry  f f Mar 12 Mar 11 YoY Maybank Industry* Cardbase 18.1% 17.0% Cardbase 2.5% -3.4% Billings 24.7% 22.8% Billings 21.0% 11.6% Receivables 15.4% 14.5% Receivables 13.7% 7.2% Merchant Sales 31.0% 29.3% Merchant Sales 18.0% 11.7% • Market Share based on 12‐months running performance • 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) +4.5% YoY +13.7% YoY ‐0.9% annualised ‐7.0% annualised 7 0% li d 4,445  4,435  4,246  5.2 5.1 4.5 RM billion n Mar 11 Mar 11 Dec 11 Dec 11 Mar 12 Mar 12 Mar11 M 11 Dec 11 D 11 Mar12 M 12 *Based on new market segmentation effective June 11 onwards21
  • 23. Business Banking and SME: Deposits grew at 6.8% annualisedLoans decline in 1Q due to repayments ‐ 4.4% ann. Deposits growth at 6.8% on annualised basis +6.8% ann. 25.3 24.7 24.6 25.8 25.5 50.7 51.5 47.3 39.9 39 9 41.2RM billion RM billion Mar 11 Jun 11* Sep 11* Dec 11* Mar 12 Mar 11 Jun 11* Sep 11* Dec 11* Mar 12* *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:  Gross Impaired Loans  Ratio continues to improve 22.0% % 20.0% 14.9% 18.0% 19.9% 12.9% 19.2% 13.0% 16.0% 17.4% 11.7% 16.5% 17.0% 17 0% 14.0% 10.6% 12.0% 10.0% Mar 11 Mar 11 Jun 11 Jun 11 Sep 11 Sep 11 Dec 11 Dec 11 Mar 11 Mar 11 Mar 11 Mar 11 Jun 11 Jun 11 Sep 11 Sep 11 Dec 11 Dec 11 Mar 12 Mar 12 * Classification by Loan Size based on Bank Negara definition, SME includes loans under GWB (Corporate)22
  • 24. Global Wholesale Banking: Loans growth driven by Term Loans Total GWB loans* increased by 2.6% to Strong position in terms of RM57.6 billion between December 2011 Trade Finance Market Share and March 2012. Mar 12 Dec 11 Sep 11 RM billion 28.4  Term Loans 25.9  +9.5% 27.7  26.6  Gross Impaired Loans Ratio improved to 2.72% in March 2012Trade Finance 27.5  ‐3.2% 27.5  2.5  Trade Finance consists of: ‐Short Term Revolving Credits Overdraft O d f 2.7  ‐4.8% 4 8% ‐ Offshore Foreign Currency Loans ‐ Factoring 2.6  ‐ Other Trade Products * Total GWB loans excludes USD (COF) loans amounting to RM2.1 billion 23 Note: Latest available Trade Finance market share data as at February 2012
  • 25. Global Markets: Revenue growth supported by non interest incomePBT and R d Revenue grew 17% and 24% Y Y respectively d YoY i l Credit Rating for Private Debt Securities in Malaysia Profit Before  +16.7% Non‐Interest Income +23.9% Not Rated, Tax Net Interest Income 462 33% 408 373 Commercial AAA, 36% Papers, 2% 304 184 350 BBB & 188 158 below, 0% A, 5% 3Q FY11 1Q FY12 3Q FY11 1Q FY12 AA, 24% ended ended ended ended 31 Mar 2011 31 Mar 2012 31 Mar 0 3 Ma 2011 31 Mar 0 3 Ma 2012 Note: Commercial Papers of RM 0.3mil excluded from the  ote Co e c a ape s o 0 3 e c uded o t e above as short‐term papers are not ratedGroup Securities Portfolio grew 18.7% annualised Group Securities Portfolio: 38.5% foreign securitiesand 10.9% YoY +18.7% YoY Government  Securities ‐ +10.9% annualised Domestic Government  30.7% Securities ‐ 68.1 71.2 Foreign 22.4% 64.2 4.6  4.8  • 95.9% ASEAN 4.6  Others Others (NIDs,  ( , • 4 1% non ASEAN 4.1% non‐ASEAN 23.7  28.4  28.8  Bas etc) RM71.2 PDS 6.4% billion Gov Sec 35.9  34.8  37.8  PDS ‐ Foreign 16.1% PDS ‐ Domestic • 48.1% ASEAN 24.4% • 51.9% non‐ASEAN Mar 11 Dec 11 Mar 1224
  • 26. Maybank Kim Eng* reported a total income of RM340.1 millionwith Malaysia contributing 40% of the total income Total Income (RM mil.): RM340.1 mil Total Income for Malaysia rose 77% YoY and 73% QoQ 160.0 Malaysia,  6.4 Others, 7.6,  140.0 2% 135.3, 40% 135 3 40% 120.0 Indonesia,  RM million 8.7, 3% 100.0 Other income Hong Kong,  8.9 3.2 80.0 17.1, 5% RM340.1m 9.5 131.6 Fund based 5.2 R 60.0 60 0 Philippines,  27.7, 8% 40.0 Fee based 62.3 65.4 20.0 Singapore,  Thailand,  0.0 78.1, 23% 65.5, 19% 65 5 19% 3QFY11 2QFP11 1QFY121Q FY2012 Equity Brokerage League Table by Country 1Q FY2012 Fee-based Income for Malaysia Other Fee Country Trading Volume Market Share Rank Agency/ Income, 2.6% (RM mil) il) Guarantee G arantee Fees, 1.4% Thailand 41,081 12.5% 1 Primary Subscribers Singapore* 32,615 7.9% 5 Underwriting Fees, 53.1% Fees, 2.1% Malaysia 16,538 7.1% 2 Indonesia 9,732 5.2% 5 Placement Fees, 3.6% Hong Kong 6,921 0.2% Tier 2 Brokerage, Philippines 6,653 9.3% 2 Arrangers 26.4% Fees, 4.8%* Rank is estimated based on market share Advisory Fees, 6.1% 25 Maybank Kim Eng represents the combined business of Maybank-IB and business segments under Kim Eng Holdings 25
  • 27. Maybank Kim Eng has maintained a strong position withseveral notable deals 1Q FY2012 Maybank IB’s (Malaysia) Industry Position & Recent Notable Deals Market Share Industry Total Deals / Market Rank by Value Issues Share Value (RM bil) M&A1 1 6.2 9 14.3% Equity & Rights 1 0.5 3 30.7% Offerings Off i 1 Debt Markets – 2 9.6 62 27.1% Malaysia Domestic Bonds1 PT ASTRA SEDAYA FINANCE Debt Markets – 2 4.5 43 22.2% Up to IDR5,000,000,000,000 Malaysia Ringgit Public Offering of Shelf Registration Bond Issuance I 2012 Islamic Bonds1 Joint Bookrunner, Joint Mandated Lead Arranger Equity 2 16.5 - 7.1% February 2012 Brokerage2 Source: 1 Bloomberg         2 Bursa Malaysia Xiwang Special Steel Co. Ltd. GT Capital Holdings, Inc Civmec Limited USD171,000,000 USD501,560,000 SGD40,400,000 IPO IPO IPO Participating Underwriter Issuer Manager, Underwriter, Joint Book Runner Placement Agent February 2012 April 2012 April 201226 26
  • 28. Group Islamic Banking business sustained profit growth Group Islamic Banking Income and PBT* Maybank Islamic: Total Gross Financing grew 5%  annualised to RM53.0 billion YoY RM million 1Q FY12 3Q FY11 Growth ‐4%Fund basedF d b d iincome 375.6 375 6 329.9 13.9% 329 9 13 9% 16.6 16.4Fee based income 159.2 57.8 175.4% 15.4Total income 534.8 387.7 37.9% +36% ‐3% ‐31% +29% +4%Allowance for losses on 40.1 40 1 (23.8) 268.5% (23 8) -268 5%financing 11.911.8Profit before tax and 352.9 201.9 74.8%zakat 9.1 RM billion 8.8 8.1 81 8 0 8.1 8.0 6.9 Maybank Islamic: Improving key ratios  6.4 5.0 4.7 Mar 12 Dec 11 Mar 11 3.1 2.8 3.0 Financing to Deposit Ratio 80.8% 83.7% 87.2% 2.8 Islamic Financing to 28.2% 28.5% 26.7% Total Domestic Loans G Gross Impaired Financing p g 1.23% 1 23% 1.62% 1 62% 2.48% 2 48% AITAB Mortgage Term Others Term Others Ratio ** Financing Financing (CFS) Financing Net Impaired Financing 0.92% 1.03% 1.58% Mar 11 Dec 11 Mar 12 Ratio Consumer: +2% Business: +13% *Islamic Banking  (includes Maybank Islamic and the Group’s other Islamic operations)27 ** Includes financing sold to Cagamas
  • 29. Etiqa: No. 1 Position in Life/Family (new business) and General Business Loss Ratio 53.0% CombinedGross Premium +38.1% 65.1% 56.5% 60.0% 55.2% OverallGroup Premium -2.8%Credit Premium +4.1% Jan-Mar 2012 30.7% 33.4% Regular Jan- Mar 2011 +3.4% Fire Premium 19.8% 20.0% 19.7%Single Premium +248.6% 83.9% 80.0%Total Life/Family +17.5% 75.3% 72.8% Motor 70.4% Misc Mi -7.5% -7 5% 197.7% MAT +399.4% 94.3% MAT Motor +20.0% 3.8% 3.7% -7.0% Fire -5.4% 30.8% 35.8% 35 8% 35.1% 35 1% 32.4% 29.0% Total General + 68.1% Misc RM Million 0 500 1000 1500 Mar11 Jun11 Sept11 Dec11 Mar12 Total Assets (RM billion)  Total Assets (RM billion) Life/Family (New Business) Market Share +7.6% YoY Etiqa Ins.  &  Tak. 16.4% No. 1 in Life/Family  +1.3%  YTD Great Eastern Ins.  &  Tak. 14.7% (New Business)  Prudential Ins.  & Tak. 14.4% 24.2 23.9 13.0% 14.0% 15.0% 16.0% 17.0% Source: ISM Statistics (Jan11‐ General Market Share Dec11). 22.2 Etiqa Ins.  &  Tak. 12.7% No. 1 in   March 2011 Dec 2011 March 2012 Allianz Insurance 9.3% General HL‐MSIG Ins.  & Tak. 8.5% Source: LIAM/ISM Statistics Note: Dec 2011’s figure of RM23.9 billion differ from financial statements of RM25.2 billion due to (Jan11‐Dec11) reclassification of reinsurance and retakaful assets. 0.0% 5.0% 10.0% 15.0% 28
  • 30. Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review y Economic Update and Prospects Financial Results: First Quarter ended 31 March 201229
  • 31. Singapore: 1Q PBT up 7% to S$96m on improved fund and fee based income, partly offset by higher provision and overheads Revenue and PBT rose 8% and 7% YoY respectively Diversified Loan Portfolio ‐3.8%   annualised 20.1 24.6 24.3  1Q FY12   1Q FY11   YoY SGD million SGD million Mar 12  Mar 11  Growth  0.8 1.2 1.3 Other (Consumer) Consumer Net fund based income      117.8      112.9 4.4% 3.3 3.3 3.3 40% Car Loan Housing Loan Non interest income        62.4        53.8 16.1% 4.6 5.3 5.3 Others (Corporate) SGD billion Total income Total income      180 3 180.3     166 7 8 2% 166.7 8.2% 2.4 2.8 2.7 Non‐Bank financial Inst Non Bank financial Inst 1.8 General Commerce  Provision           5.9        (1.4) ‐523.9% 2.4 3.5 Corporate  Building & Const 3.8 60%  Profit before tax         95.5       89.3 6.9% 2.6 3.2 3.9 5.3 6.2 Mar 11 Dec‐11 Mar‐12 Asset Quality remains healthy YoY loans growth outpaced industry‘s 28.60% 0.75% 25.40% 0.63% 0.58% 0.65% 0.58% 0.53% 0.62% 21.40% 0.46% 0.47% 24.20% 20.10% 0.25% 0 23% 0.23% 0.26% 0.33% 11.40% 14.80% 0.07% 0.09% 0.07% 0.25% 0.23% 0 26% 4.97% 8.60% ‐1.38% Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun‐09 Jun‐10 Jun‐11 Dec‐11 Feb‐12 Maybank Singapore Growth Industry Growth Gross NPL ratio Net NPL ratio30
  • 32. BII: Net Profit growth by 78% YoY Income Statement Rp. Rp Billion Q1 2012 Q1 2011 % Net Interest Income 1,167 975 20% Non Interest Income 628 586 7% Gross Operating Income 1,796 1,561 15% Operating Expenses (excl. provision) (1,247) (1,060) 18% Total Operating Income 549 501 9% Provisions (220) (347) -37% Net Operating Income 329 154 113% Non operating income (expense) 51 62 -18% Profit Before Tax 380 216 76% Tax / Deferred Tax (121) (64) 91% Net Profit After Tax 259 152 70% Minority Interest & Profit before Acquisition 8 (2) -495% Net Profit 267 150 78%31
  • 33. BII: PBT grew 76% on the back of 23% consolidated loans growth Revenue and PBT (Rp billion)  Net Interest Margin  +15.1% 1,796 5.67% 1,561 , 5.43% 5.51% 5.28% Revenue +75.9% PBT 5.22% 380 216 Mar-11 Mar-12 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Loan composition (Rp trillion) Loan‐to‐Deposit Ratio (Bank only) 90.4% 67.2 69.8 88.9% 62.0 0.4 59.5 0.4 56.7 0.4 04 18.2 0.4 0.4 17.3 14.1 14.8 85.4% 85.8% 13.3 25.5 22.2 24.1 83.0% 19.9 21.3 18.8 19.1 20.1 21.0 21.6 4.2 4.6 4.5 4.4 4.2 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Subsidiaries Consumer SMEC Corporate Syariah Modified LDR (consolidated)  as of Mar’12 : 83.4% Modified LDR (bank only)  as of Mar’12 : 81.3%32
  • 34. BII: Branches and touch points expansion on track Branches and ATM Asset Quality A Q li 1,190 4.95% 1,152 1,017 1,088 4.15% 4.03% 1,009 952 844 893 806 3.54% 2.27% 2.88% 2.08% 368 2.75% 327 337 344 346 351 260 274 295 1.11% 1.25% Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Branches ATM+CDM Net Impaired Loans ratio Gross Impaired Loans ratio Capital Adequacy : consolidated Cost to Income Ratio (credit, operational & market risk) 13.06% 69.43% 12.71% 67.88% 65.67% 12.46% 12.33% 11.68% Bank k Only Mar-11 Jan‐00 Mar-12 Jan‐00 Mar-12 Jan‐00 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 CAR  as of Dec‐11 after taking into account Tier 2 capital of Rp500 bln subordinated bond33
  • 35. WOM : 5.5% growth in revenue, whilst PBT impacted by provisions arising from 2011 portfolio Revenue and PBT (Rp billion) d ( billi ) Unit Financing Unit Financing +5.5% (In 000 unit) 381  402  142 128 115 116 DR Billion ‐414.3% 26 in ID 13 7  (22) New Used Total YTD Mar11 YTD Mar12 Mar‐11 M 11 Mar‐12 M 12 Total Revenue Profit Before Tax Asset Quality Financing Amount (In IDR bn) 3.28% 3.20% 1,721  3.04% 1,582  2.72% 1,477  1,498  2.51% 1.16% 1 16% 1.25% 1.29% 1.19% 1 19% 0.82% 224  105  New Used Total Mar11 Jun11 Sep11 p Dec11 Mar12 Mar‐11 Mar‐12 Gross NPL Net NPL34
  • 36. An Binh Bank: Financial Highlights PBT increased by VND30 0 bil or 20% largely due VND30.0 to higher net interest income of VND91.5 bil. Revenue and PBT The increase is mitigated by the drop in non- +22% interest income of VND12.3 bil, higher overheads 433.3 of VND28 0 bil and higher provisioning of f VND28.0 d high i i i g f 354.3 VND21.1 bil as compared to previous VND Billion +20% corresponding period. Revenue 177.6 Gross loans slightly increased by VND188.4 bil or 147.6 PBT V 1%, contributed by corporate customers. Meanwhile, the deposit from customers is higher by VND5,752.9 bil or 25% due to increase in 1QFY11 1QFY12 corporate and retail deposits. NPL ratio improved from 4.32% to 2.89% on the Gross Loans and Deposits back of lower NPL and higher loans portfolio. +25% +1% 28,976.3 28 976 3 Key Ratios K R ti As at 31 Mar 12 As at 31 Mar 11 A t 31 M 12 A t 31 M 11 Return on assets 1.28% 1.23% 23,223.4 ND Billion Return on equity 11.51% 8.83% 18,977.7 19,166.1 Loans Cost‐to‐income ratio 49.45% 52.59% Customer Deposits Customer Deposits VN Loans to deposit ratio 66.14% 81.72% NPL Ratio 2.89% 4.32% Net Interest Margin 5.41% 5.20% As at 31 Mar 11  A t 31 M 11 As at 31 Mar 12  A t 31 M 1235
  • 37. MCB Bank: Financial Highlights PBT iincreased b PKR847 3 mil or 11% against d by PKR847.3 il i Revenue and PBT corresponding period, mainly contributed by increase in non-interest income (NOII) of +2% PKR463.1 mil and lower provisioning by PKR1.1 13,223.5 12,978.9 bil. Higher bil Hi h NOII i contributed b the i is ib d by h increase +11% from dividend income, commission and PKR million 8,816.5  brokerage fees. 7,969.2  Revenue However, the increase in PBT is mitigated by the PBT drop in net interest income by PKR218.5 mil and also higher overheads by PKR509.8 mil. Gross loans declined by 10% given the challenging e v o e t. oweve , deposits g ew environment. However, depos ts grew by 11%. %. 1QFY11 Q 1QFY12 Q NPL ratio increased from 8.91% to 10.39%, due Gross Loans and Deposits largely to the increase of NPL by PKR1.4 bil or 5%. Decline in loan balance also contributed to +11% the higher NPL ratio ratio. 504,982.0 504 982 0 456,494.7 PKR million Key Ratios As at 31 Mar 12 As at 31 Mar 11 Return on assets 3.42% 3.43% 279,657.5 Gross Loans 252,772.6 Return on equity R t it 28.09% 28 09% 28.48% 28 48% Customer Deposits Customer Deposits ‐10% Cost‐to‐income ratio 33.74% 30.45% Loans to deposit ratio 50.06% 61.26% NPL Ratio 10.39% 8.91% As at 31 Mar 11  As at 31 Mar 11 As at 31 Mar 12  As at 31 Mar 12 Net Interest Margin 7.65% 9.13%36
  • 38. Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review y Economic Update and Prospects Financial Results: First Quarter ended 31 March 201237
  • 39. Malaysia: Sustained Economic Growth for 2012Growth to be moderate at 4.0% ‐ 5.0% in 2012 (2011: 5.1%)Growth to be moderate at 4 0% ‐ 5 0% in 2012 (2011: 5 1%) Inflation expected to moderate to 2.7% in 2012 (2011: 3.2%) Inflation expected to moderate to 2 7% in 2012 (2011: 3 2%) Q411 GDP:  160 +5.2% YoY 12 14 CPI and components (% YoY) 25 Quarterly GDP and annual growth rate Mar ‘12 CPI:  20 150 9 12 Transport (RHS) +2.1% YoY 15 140 6 10 10 8 5 130 3 0 120 0 6 Food & (5) Non-Alcoholic 110 ( ) (3) 4 Beverages g (10) (15) 100 (6) 2 (20) Utilities, Housing & Other Fuels 90 (9) 0 (25) Aug-07 Nov-07 Aug-08 Nov-08 Aug-09 Nov-09 Aug-10 Nov-10 Aug-11 Nov-11 May-07 May-08 May-09 May-10 May-11 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 3 4 2 3 4 2 3 4 2 3 4 2 3 4 2 3 4 M M M M M A A A A A F F F F F F N N N N N RMb (LHS) % YoY (RHS) % QoQ (RHS)Ringgit/USD: RM3.16 by end 2012 OPR expected to remain unchanged at 3% until end of 2012 Ringgit Malaysia per USD 4.5 25bp hikes in OPR in 2.90 4.0 Mar, May, July 10 and 2.95 May 11 3.53.00 3.03.05 2.5 2.03.10 1.5 153.15 1.03.20 RM3.12 per USD as at 22nd May 2012 0.5 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-123.25 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 -11 -11 -11 -11 -11 -11 -11 -11 -12 -12 -12 -12 -11 -11 -11 -11 -12 Feb- Mar- Apr- May- Jul- Oct- Nov- Dec- Feb- Mar- Apr- May- Jan- Jun- Aug- Sep- Jan- SRR OPR38
  • 40. Malaysia: Banking Sector to Remain Healthy Total Loans grew 12.2% YoY for 1Q12 (Maybank Domestic: 13.8% YoY) Total Loans grew 12.2% YoY for 1Q12 (Maybank Domestic: 13.8% YoY) Total Deposits grew 13.7% YoY Total Deposits grew 13.7% YoY (Maybank Domestic 21.2%) Domestic 21.2%) Total Loans Total Loans YoY Growth Total Deposits Total Deposits YoY Growth 1250 25% Household YoY Growth Business YoY Growth 1,050  18% 1200 1,000  16% 1150 20% 950  1100 RM billionRM billion n 14% 900  1050 15% 850  12% 1000 800  10% 950 10% 750  8% 900 700  700 850 5% 6% 650  800 600  4% 750 0% 550  2% Sep‐07 Sep‐08 Sep‐09 Sep‐10 Sep‐11 Jan‐07 May‐07 Jan‐08 May‐08 Jan‐09 May‐09 Jan‐10 May‐10 Jan‐11 May‐11 Apr‐12 n‐07 Apr‐07 Jul‐07 t‐07 n‐08 Apr‐08 Jul‐08 t‐08 n‐09 Apr‐09 Jul‐09 t‐09 n‐10 Apr‐10 Jul‐10 t‐10 n‐11 Apr‐11 r‐12 M M M M M A S S S S S Oct Oct Oct Oct Jan Jan Jan Jan Jan Apr Capital Adequacy remains strong at 14.7% for 1Q12 1Q12 Gross NPL RM26.0b, Net NPL ratio: 1.74% 16(Maybank Domestic: 15.35%) Gross NPL ‐ 3 Months (LHS) Net NPL (RHS) 15 14.7% 14 7% 35 2.5% 14 30 M billion 13 13.0% 2.3% 25 12 % 20 11 2.0% RM 15 10 10 1.8% 9 Core Capital Ratio 5 8 Risk Weighted Capital Ratio 0 1.5% 7 Feb‐11 Mar‐11 Apr‐11 May‐11 Jun‐11 Jul‐11 Aug‐11 Sep‐11 Oct‐11 Dec‐11 Feb‐12 2 Mar‐12 2 Jan‐11 Nov‐11 Jan‐12 2 Apr‐08 Jul‐08 Oct‐08 Apr‐09 Jul‐09 Oct‐09 Apr‐10 Jul‐10 Oct‐10 Apr‐11 Jul‐11 Oct‐11 Apr‐12 Jan‐08 Jan‐09 Jan‐10 Jan‐11 Jan‐12 39
  • 41. Singapore: Growth has stabilised but inflation remains a concern Singapore s Singapore’s economy remains on track to expand by 1‐3% in 2012 but 2012, R l GDP growth f 2012 expected t b 1% – 3% Real th for t d to be renewed problems in the Eurozone and a persistent slowdown in (2011: 4.9% ) China’s manufacturing sector could hurt prospects of the country’ 80 20 trade‐related industries in the near term. 75 15 Inflation rate forecast for 2012 has been raised from 2 5% ‐ 3 5% to 2.5% 3.5% 70 10 3.5% ‐ 4.5%, with the tightening of COE supply expected to push up the 65 5 cost of private car ownership. Core inflation forecast has also been 60 0 raised to 2.5% ‐ 3.0% in 2012 on the back of higher oil and food prices. 55 (5) Unemployment rate is expected to rise from 2.0% in 2011 to 2.2% – 50 (10) 2.4% in 2012 as companies hire more cautiously. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q DBU Loan growth to ease to around 7% ‐ 10% in 2012 (from +30% in 09 09 09 09 10 10 10 10 11 11 11 11 12 2011), weighed by a slowdown in trade financing. transportation and (E) p ope y oa s property loans. Real R l GDP (S$B) % YoY Growth (RHS) Y YG th Net interest margin (NIM) to increase marginally to 1.8% ‐ 2.1% in 2012 (vs. 1.7% – 2.0% in 2011) as banks factor in higher risk premiums in 3‐month SIBOR to range between 0.35%‐0.45% in 2012 response to the uncertain economic climate. 0.70 Loan Growth expected to moderate to 7%‐10% in 2012 Loan Growth expected to moderate to 7% 10% in 2012 50% % YoY Growth 0.60 40% 30% 0.50 20% 0.40 10% 0% 0.30 -10% un-09 Oct-09 ec-09 un-10 un-11 Oct-10 ec-10 Oct-11 ec-11 Apr-09 ug-09 eb-10 Apr-10 ug-10 eb-11 Apr-11 ug-11 eb-12 Apr-12 De De De Au Au Au Ju Ju Ju Fe Fe Fe O O O A A A A 3-month SIBOR Total Loans Business Loans Consumer Loans40
  • 42. Indonesia: Moderating but Respectable Growth for 2012■ Q1 2012 GDP growth around 6.31%, lower than the growth in Q4 Real GDP Growth: Slowing growth  2011 at 6.49%. Slowing growth in Q1 2012 mainly come from (y-y) slowing growth of exports (7.81% in Q1 2012 compared to 7.91% 8.00% in Q4 2011) and investment (9.94% in Q1 2012 compare 11.52% in Q4 2011) 7.00%■ Despite higher inflation expectation this year, Bank Indonesia stays to stimulate economic growth by maintain key policy rate 6.00% 6.31% at 5.75%. 5.00%■ USD/IDR will hover around 9000 area due to strong capital inflow and better risk appetite assuming the euro zone debt crisis 4.00% solved. Yet with some volatility that might appear, we expect rupiah will most likely be in the range of 9000 – 9,400 3.00% Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1■ Loans growth is expected to grow 20% by the end of 2012 with 2003 2003 2004 2005 2006 2006 2007 2008 2009 2009 2010 2011 2012 the investment segment driving growth.■ NPL is expected to reach 3.01% for 2012. Bank’s loan growth: Stable as at February 2012 Bank Indonesia maintain key policy rate at 5.75% 30.0% (y y ) (y-y %) 14.0 Loan Deposits 23.6% 25.0% Inf lat ion y-y BI rat e 12.0 20.0% 10.0 20.0% 15.0% 8.0 10.0% 6.0 4.0 5.0% 2.0 0.0% 0.0 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct -11 Mar-1241
  • 43. Prospects Global GDP growth is forecast at 3% in 2012 (2011 est.3.8%) The Eurozone, US and China expected to record slower economic growth in 2012. Group expects to see reasonable business growth in 2012 – Malaysia: Economic Transformation Program (ETP) projects and relatively low interest rates (OPR at 3% throughout 2012) in Malaysia – Indonesia: Strong domestic demand and a relatively under-penetrated banking sector. – Singapore: export-oriented economy will record slower growth than in 2011 2011. Strategy of responsible growth, equal focus on managing asset quality and liquidity through sound risk management practices, particularly given the current global environment. Regionalisation initiatives: building a truly regional organisation and governance structure across all functions by building physical infrastructure, such as IT, and in delivering value in areas such as investment banking, global wholesale banking, credit cards, global markets and payments. Focus on further raising customer service quality, embedding right risk culture, and driving greater effectiveness and efficiency and improved cost structure. BNM is expected to release a concept paper detailing out the revised definition of regulatory capital computation for industry consultation soon. Barring unforseen circumstances, the Bank is well prepared to comply with the BNM requirements for 2013 2013. Notwithstanding the global challenges, the Group expects to maintain a satisfactory financial performance for FY2012 in view of expected growth in the key ASEAN markets where the Group operates. The Group is on track to achieve target Return on Equity of 15.6% on an enlarged equity base (FP11:16.2% annualised).42
  • 44. MALAYAN BANKING BERHAD 14th Floor Menara Maybank Floor, 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com Investor Relations Contact Ronnie Royston Fernandiz Head, Head Finance & Treasury Operations Contact: (6)03-2074 8963 Email: ronnie@maybank.com.my Narita Naziree Head, Group Strategy Management Contact: (6)03-2074 8101 Email: naritanaziree.a@maybank.com.my Raja Indra Putra Head, Investor Relations Contact: (6)03 2074 8582 (6)03-2074 Email: rajaindra@maybank.com.my 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 of, with, contract, 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.43