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Maybank invest Malaysia 2011 Presentation

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Malayan Banking Berhad (Maybank) Invest Malaysia 2011 Presentation, Kuala Lumpur, Malaysia.

Malayan Banking Berhad (Maybank) Invest Malaysia 2011 Presentation, Kuala Lumpur, Malaysia.


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  • 1. Draft 5 7 April 2011Malayan Banking BerhadInvest Malaysia 2011Shangri-La Hotel, Kuala Lumpur12-13 April 2011
  • 2. Progress since Invest Malaysia 2010 Key takeaways from IM 2010 Progress since IM 2010 Maybank is strengthening its position as the Adopted new House of Maybank and expanded senior management leading banking franchise in Malaysia in line team structure from 1 July 2010 to reflect regional focus. with our transformation programme. Gross loans growth of 12.5% annualised vs 9.9% in corresponding period. Investment banking Income (fee income) growth of 18% YoY. Current capital position, strong profit Announced two successive Dividend Reinvestment Plans, the first generation capability and Dividend attracting a reinvestment rate of 89%. Reinvestment Plan helped strengthen our Adopted Basel II and FRS 139. Ready for Basel III. capital position and captured growth opportunities in domestic and overseas markets. Profitability in our key markets in the South Profit contribution from overseas of 27% compared to 28% in the East Asia and South Asia are gaining previous period. Singapore’s 1H11 PBT rose 16% YoY. momentum. BII recorded profit of Rp 461 bn for 2010 vs Rp 41 bn loss in 2009. Announced acquisition of Kim Eng to accelerate regional expansion of Investment Banking. Financial performance improved significantly Posted record Net Profit and exceeded KPIs in FY10. in FY10 and we exceeded our KPIs. On track for another record profit in FY11. 1
  • 3. Maybank: In a Position of StrengthFinancial HighlightsStrategic UpdatesChallenges and Key TakeawaysAppendix: Financial Performance1H FY11 ended 31 Dec 2010 2
  • 4. Maybank: In a position of strength Leadership Position An 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 in South East Asia ■ Over 1,750 branches and offices in 14■ 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 Loans, Deposits, Cards, Unit Trust Loans ■ No.1 Internet banking with 55% market share Strong Financial Position* Strong shareholders and credit ratings ■ Total Assets : RM 357.6 billion (USD 116.8 bn) ■ 55% owned by PNB and its funds, 12% by EPF ■ Total Equity : RM 29.7 billion (USD 9.7 bn) ■ Foreign shareholding 13.2% ■ 1H11 Net Profit : RM 2.153 billion (USD 703 mn) ■ S&P : A- ■ Moody’s: A3 ■ MARC: AAA ■ Market Cap.** : RM 65.6 billion (USD 21.7 bn) ■ Fitch : A- ■ RAM: AAA *as at 31 Dec 2010 ** as at 31 Mar 2011 3
  • 5. Leading Bank in Malaysia Total Assets (RM bn): 31 Dec 2010 Loans and Deposits (RM bn): 31 Dec 2010 358 248 228 269 226 177 200 Loans 157 168 Deposits 129 94 88 105 71 70 71 84 45 53 41 42 37 AMMB 22 28 26 32 38 Public CIMB HL Bank Maybank EON Cap RHB Cap Public EON Cap AMMB RHB Cap CIMB HL Bank Maybank Bank Alliance Affin Bank Affin Alliance PATAMI (RM bn): 4 Quarters to Dec 2010 Market Capitalisation (RM bn): 31 Mar 2011 4.1 60.9 65.6 3.5 3.0 46.3 1.3 1.4 18.5 19.6 1.1 15.6 0.4 0.4 0.5 4.9 4.9 5.2 Alliance Affin RHB Cap AMMB Public CIMB HL Bank Maybank EON Cap Bank RHB Alliance Affin AMMB Public CIMB HL Bank Maybank EON Cap Cap Bank 4
  • 6. One of the Top 10 Banks in ASEAN Total Assets (RM bn): 31 Dec 2010 Net Loans and Deposits (RM bn): 31 Dec 2010 DBS 676 DBS 362 462 OCBC 547 OCBC 274 339 UOB 510 UOB 250 294 MAYBANK 358 MAYBANK 228 No.4 248 No.4 CIMB 269 CIMB 168 200 Public Bank 226 157 Public Bank 176 128 Total Loans Bangkok Bank 199 Bangkok Bank 142 127 Total Deposits Krung Thai Bank 179 Krung Thai Bank 127 Kasikornbank 158 110 Kasikornbank 112Siam Commercial Bank 150 Siam Commercial Bank 108 111 PATAMI (RM bn): 4 Quarters to Dec 2010 Market Capitalisation (RM bn): 31 Mar 2011 UOB 6.4 DBS 81.2 OCBC 5.3 OCBC 76.7 MAYBANK 4.1 UOB 70.4 No.3 DBS 3.9 MAYBANK 65.6 No.4 CIMB 3.5 CIMB 60.9 Bank Mandiri 3.2 Bank Mandiri 55.1Bank Rakyat Indonesia 3.1 Bank Rakyat Indonesia 49.3 Public Bank 3.0 Public Bank 46.3 Bangkok Bank 2.5 Siam Commercial Bank 36.6Siam Commercial Bank 2.5 Bangkok Bank 32.8 5
  • 7. Maybank Group’s Global Network (including Kim Eng) Worldwide Presence In 8 ASEAN countries China • Philippines 1 branch (50 branches) 1 rep office Thailand: Kim Eng Hong • Kim Eng (4 branches) Kong (41 branches) London 1 branch 1 branch New York • An Binh Bank 1 branch • Cambodia (118 branches) (9 branches) • Vietnam (2 branches) Bahrain • Kim Eng (5 branches) 1 branch Pakistan • Malaysia Brunei MCB: 1,101 (386 branches) (3 branches) branches • Kim Eng (6 branches) ASEAN Singapore (22 branches) Papua New Kim Eng (3 Guinea branches) 2 branches Indonesia: BII (327branches) Kim Eng (6 branches) 6
  • 8. Maybank: In a Position of StrengthFinancial HighlightsStrategic UpdatesChallenges and Key TakeawaysAppendix: Financial Performance1H FY11 ended 31 Dec 2010 7
  • 9. 1H11 results on track ■ Better Financial Performance ■ PATAMI for 2Q11 grew 9.4% QoQ and 13.3% YoY to RM1.13 billion. 1H11 PATAMI grew 14.8% YoY to RM2.15 billion. ■ Revenue for 1H11 grew 5.1% contributed by revenue growth from Community Financial Services (6.1%), Corporate Banking (11.8%), Singapore (8.3%) and BII (16.0%). ■ Group loans grew 12.5%, contributed by CFS consumer loans growth (12.3%), recovery in Domestic Corporate Loans (4.8%), Singapore (17.8%) and BII (27.3%). ■ Allowances for loss on loans declined due to higher bad debt recovery. Net Impaired Loan ratio declined to 2.74% from 2.99% the preceding quarter. ■ KPIs on track to achieve targets for FY2011. Normalised ROE of 15.0% is ahead of full year target of 14%. ■ Transformation making good progress ■ Global Wholesale Banking regionalisation: Kim Eng acquisition a significant step for Group to become a leading ASEAN wholesale bank. ■ Community Financial Services: Improved SME loans growth through branches. ■ IT transformation programme: Phased roll-out beginning with front-end systems. ■ Islamic Banking: Expanding in Indonesia with launch of Maybank Syariah Indonesia. ■ High Dividend Payout ■ Dividend Payout Ratio of 71.4% with the benefit of Dividend Reinvestment Plan (DRP) exceeds dividend policy rate of between 40-60%. ■ Interim gross dividend of 28 sen (21 sen net) with 18 sen electable portion eligible for DRP. 8
  • 10. On track to achieve KPI for FY2011 KPI for FY2011 Headline KPIs Target 1H11 achievements Return on Equity 14% 15.0% (normalised) Loans and Debt Securities Growth 12% 12.4% (annualised) Other targets Target 1H11 achievements Loans Growth • Malaysia 12% 8.5% • Singapore 5% 17.8% • BII 24% 27.3% Net Interest Margin 10bps reduction* 2.70% (-8 bps YoY) Dividend Payout Ratio 40%-60% 71.4% Note: Loans growth for Singapore and BII are in local currency * Targeted to be stable at beginning of FY 9
  • 11. Growing contribution from International operations Gross Loans Gross Revenue Profit Before Tax International: International: International: 34% 5% 33% 6% 27% 3% 10% 8% 11% 14% 20% Dec 2010 16% 1H11 1H111H11 RM227.5b RM6.435b RM2.966b 67% 67% 73% Malaysia Singapore Indonesia Others 6% 4% 7% 12% 5% 6% 20% Dec 2009 15% 1H10 1H10 1H10 RM203.0b RM6.125b 17% RM2.556b 67% 69% 72% International: International: International: 33% 31% 28% 10
  • 12. Maybank: In a Position of StrengthFinancial HighlightsStrategic UpdatesChallenges and Key TakeawaysAppendix: Financial Performance1H FY11 ended 31 Dec 2010 11
  • 13. 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 12
  • 14. New “House of Maybank” Organisation Structure to support aspirations 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 MINTERNATIONAL Bank market expansion by Living the ETIQA E EXPANSION humanising client way N interaction T Enterprise Transformation Services 13
  • 15. Expanded Group Executive Committee to drive business growth 14
  • 16. Five Strategic Objectives to realise Vision 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 15
  • 17. 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 16
  • 18. Progress of Strategic Objectives: Community Financial Services 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by 2015Strategic Objectives1. No. 1 Retail Financial Services provider Initiatives2. Leading ASEAN wholesale bank ■ Community Financial Services: Serving consumers and3. Domestic Insurance Champion businesses through a One-Stop Shop concept4. Truly regional organisation ■ SME and Business Banking origination at branches5. Leading Islamic bank ■ Focus on Customer Segmentation ■ Non-retail deposit through branches ■ Industrialisation of Sales and Business Process 17
  • 19. Progress of Strategic Objectives: Global Wholesale Banking 2. Leading ASEAN wholesale bank eventually expanding to Middle East, China & IndiaStrategic Objectives1. No. 1 Retail Financial Services provider Initiatives2. Leading ASEAN wholesale bank ■ Launched Corporate Client Coverage model supported by3. Domestic Insurance Champion product experts4. Truly regional organisation ■ Kim Eng to accelerate objective of regional investment banking5. Leading Islamic bank ■ In-country and regionalisation of trade finance and cash management 18
  • 20. 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 19
  • 21. Progress of Strategic Objectives: Insurance and Takaful 3. Domestic Insurance Champion and emerging regional playerStrategic Objectives1. No. 1 Retail Financial Services provider Initiatives2. Leading ASEAN wholesale bank ■ Completed the General IT System consolidation.3. Domestic Insurance Champion ■ Currently consolidating the Life IT system4. Truly regional organisation ■ Keeping track with industry growth ■ Maintaining healthy portfolio mix, having better5. Leading Islamic bank combined ratio compared to market ■ Growing and strengthening agency force ■ Growing Bancasssurace business through emphasis on Regular Premium ■ Growing 3rd party Asset Under Management through Mayban Investment Management (MIM) 20
  • 22. Progress of Strategic Objectives: International 4. Truly regional organisation, with ~40% of pre-tax profit derived from international operations by 2015Strategic Objectives Initiatives1. No. 1 Retail Financial Services provider ■ Singapore2. Leading ASEAN wholesale bank ■ Grow SME segment and expand structured trade business ■ Upstream into Investment Banking through collaboration with Kim Eng3. Domestic Insurance Champion ■ Increase income contribution from Wealth Management and kick-start Regional Wealth Management Programme4. Truly regional organisation ■ Indonesia (BII)5. Leading Islamic bank ■ Continue network expansion ■ Transaction Banking build out ■ Build an innovative and relationship bank for businesses and communities ■ Philippines ■ Regionalization efforts ■ Increased capital to boost growth ■ Cards with focus on Corporate, ■ Internet Banking Commercial and Consumer ■ Wealth Management ■ Cambodia ■ 2 more branches by year end ■ Incorporating operations locally 21
  • 23. Progress of Strategic Objectives: Islamic Banking 5. Leading Islamic Bank in ASEANStrategic Objectives1. No. 1 Retail Financial Services provider Initiatives2. Leading ASEAN wholesale bank ■ Deposit drive to improve Financing to Deposit Ratio3. Domestic Insurance Champion ■ Building the global wholesale market : Debt Capital4. Truly regional organisation Market and Equity Markets5. Leading Islamic bank ■ Focus on ICBU business ■ Regional expansion by working with GWB in line with the Global Islamic Banking Strategy 22
  • 24. Progress of Transformation Programme: Enterprise Transformation Services Deployment of regional IT platform with priorities set to customer-focused capabilities To deliver best in class service experience and leadership by 2013 ■ Development and finalisation of Enterprise IT Architecture ■ Embarked on IT Transformation Program (ITTP): Deployment of regional platform with priorities set to customer-focused capabilities ■ Enhancement of Service Quality ■ Process improvements initiatives 23
  • 25. 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 24
  • 26. 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. Largest 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 25
  • 27. Maybank: In a Position of StrengthFinancial HighlightsStrategic UpdatesChallenges and Key TakeawaysAppendix: Financial Performance1H FY11 ended 31 Dec 2010 26
  • 28. Macro Challenges Inflationary pressure in Malaysia and Indonesia could 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. 27
  • 29. 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. 28
  • 30. DRP for Interim Dividend FY11: 18 sen electable portion High Dividend Payout Ratio Capital Adequacy ■ Dividend Reinvestment Plan (DRP) for Final Dividend FY10 was a success with 89% reinvestment rate. 14.04% 14.21% ■ Interim dividend payout of 28 sen (21 sen net) 13.66% subject to DRP ■ Net dividend of 21 sen = 3 sen cash portion + 18 sen electable portion ■ Dividend Payout Ratio of 71.4% exceeds policy of 40- 60% Dividend Payout Ratio. 13.82% 13.68% 12.98% 11.37% 11.29% 11.85% Key dates for current DRP Events Date Dividend Ex-date 12-Apr-11 Book Closure Date 14-Apr-11 Despatch of Info Memo and 30 SepSep 10 10 30 1030 Sep 31 Dec Dec 10 10 31 1031 Dec 31 Dec 1031 Dec 10 31 Dec 10 18-Apr-11 Notice of Election 89% electable Assume no Assume full Last date to submit the portion reinvested reinvestment of DRP reinvestment of 29-Apr-11 DRP Dividend Reinvestment Form Issuance of new shares Risk-weighted capital capital ratio Group risk-weighted ratio 12-May-11 Core capital ratio ratio Group core capital and payment of cash div. Core capitalcapitalDec 10 risk-weighted capital ratio Bank Sep 10 31 &ratio & 31 Dec 10 30 core ratio Risk-weighted capital ratio Listing of new Maybank Shares 13-May-11 29
  • 31. Appendix Financial Performance 1H FY11 ended 31 Dec 2010 Market share, ranking and annual growth 31 Group Revenue and PATAMI 33 PBT by sector 34 Loans growth by country 35 NIM, Cost-to-Income Ratio, Asset quality 36 CFS: Mortgage and auto finance 37 CFS: Cards and SME 38 Insurance 39 Singapore 40 Indonesia: Bank Internasional Indonesia 41 Pakistan: MCB 43 Vietnam: An Binh Bank 44 Maybank Islamic 45 30
  • 32. Domestic Market: Leading market position Market Share: Dec 10 (Dec 08) Growth (YoY) Industry Ranking 1Loans Domestic Total loans 17% (18%) 11% Domestic Total Deposits 15% (15%) 8% 1 Consumer loans 17% (16%) 14% 2Consumer Mortgage 13% (14%) 10% 3 HP Loans 18% (16%) 14% 2 Unit trust 69% (73%) 32% 1SME SME loans 16% (14%) 7% 2 Receivables 14% (14%) 13% 2Cards Billings 22% (20%) 18% 1 Merchant Sales 30% (25%) 12% 1 Card Base 16% (15%) -17% 1 Demand Deposits 20% (21%) 4% 1Deposits Savings Deposits 28% (28%) 8% 1 Fixed Deposits 14% (12%) 14% N.A. CASA 24% 6% 1 Network Internet Banking 55% 20% 1 ATM 28% 1% 1 Branch 19% 0% 1 31
  • 33. Domestic Market: Leading market position Market Share: Dec 10 (Dec 08) Growth (YoY) Industry Ranking Islamic Islamic Financing 24% (22%) 26% 1 Islamic Deposits 21% (16%) 33% 1 Debt Markets 29% 1 Investment Banking M&A 16% Not applicable 3 Equity & Rights Offerings 7% 2 Equity Brokerage 8% 3 Business Trade Financing 19% (22%) 9% 1 Management* Combined Life/Family 21% 29% 1 Insurance & Asset Combined General 12% 27% 1 Asset Under Management 19% 16% 4 *Source for Insurance and Asset Management: LIAM & ISM Statistics (Jan10-Dec10) 32
  • 34. Sustained profit growth: PATAMI for 1H11 rose 14.8% YoY Revenue (RM million) 1H11 Revenue Composition +22.4% YoY +5.1% YoY 12,871.7 Income from Islamic 10,519.0 Banking 11% 6,125.2 6,435.8 Net interest Net income income from 56% Insurance 2% FY09 FY10 1H10 1H11 PATAMI (RM million) Non interest +43.3% YoY +14.8% YoY income 31% 3,818.2 2,664.0 (normalised) 2153.4 1875.3 Note: Fee income = Non-interest income + net income from insurance and fee income from Islamic 691.9 operation. For 1H11 fee income ratio is 34.6% FY09 FY10 1H10 1H11 33
  • 35. Strong performance in CFS, GWB’s Corporate and International Banking Group PBT by business sector (RM billion) 1H10 1H11 16.0% Global Wholesale Banking (GWB) 2,966.4 2,556.2 54.0% 13.9% -6.7% -39.3% 16.0% -48.0% 1,431.8 929.6 658.9 818.1 706.5 705.5 439.1 385.7 101.4 175.4 61.6 91.2 Total Community Financial Corporate Banking Global Market Investment Banking International Banking Insurance, Takaful & Services Asset Management Note: Head Office & Others: Revenue : -RM351.1m (1H10) vs -RM534.3m (1H11) PBT : -RM447.9m (1H10) vs -RM534.3m (1H11) 34
  • 36. Robust loans growth in 3 home markets Group (RM billion) Malaysia (RM billion) 11.7% YoY 11.0% YoY 12.5% annualised 8.5% annualised 228.7 152.2 215.2 146.0 204.7 195.4 137.1 131.0 Jun 09 Dec 09 Jun 10 Dec 10 Jun 09 Dec 09 Jun 10 Dec 10 Singapore (SGD billion) Indonesia (BII) (Rupiah trillion) 12.1% YoY 35.5% YoY 17.8% annualised 27.3% annualised 19.1 53.7 47.3 39.6 17.5 35.5 17.0 16.2 Jun 09 Dec 09 Jun 10 Dec 10 Jun 09 Dec 09 Jun 10 Dec 10 35
  • 37. Resilient NIM and improving asset quality Net Interest Margin Asset Quality 6.45% 6.58% 6.16% Pre-FRS 139 Post-FRS 139 5.95% 120.5% 124.5% 125.6% 131.8% 3.07% 2.89% 2.83% 2.83% 2.76% 2.70% 2.70% 2.69% 1.85% 87.6% 84.1% 84.6% 1.74% 1.68% 1.51% 2.83% 2.99% 2.74% 1.36% 1.22% 1.20% 1.00% 3Q10 4Q10 1Q11 2Q11 9.96 10.12 9.6 Group Malaysia Singapore BII Cost-to-income ratio 6.31 6.19 6.02 5.63 53.4% 48.7% 47.5% 3Q10 4Q10 1Q11 2Q11 Day 1 1Q11 2Q11 Gross NPL / Impaired Loans (RM bn) Loan loss coverage 1H09 1H10 1H11 Net Impaired Loan Ratio 36
  • 38. Consumer Loans: Mortgage and Auto Finance Mortgage Loans: Recording Consistent Growth Auto Loans: Consistent Growth 10.0% YoY 13.7% YoY 9.4% annualised 13.5% annualised 36.2 24.3 34.6 22.8 21.4 32.9 Dec 09 Jun 10 Dec10 Dec 09 Jun 10 Dec10 Total Mortgage (RM billion) Auto Loans (RM billion) Mortgage Loans: Market share vs asset quality Auto Loans: Market Share vs asset quality 3.0% 14.3% 16.0% 18.0% 13.7% 17.0% 18.1% 13.1% 14.0% 17.0% 2.5% 16.0% 12.0% 16.0% 2.0% 10.0% 15.0% 8.3% 1.4% 6.9% 14.0% 1.2% 1.5% 8.0% 4.6% 6.0% 13.0% 1.0% 0.7% 4.0% 12.0% 0.5% 2.0% 11.0% 0.0% 10.0% 0.0% Dec 08 Dec 09 Dec10 Dec 08 Dec 09 Dec10 Gross NPL Mortgage Loan Market Share Gross NPL Auto Loan Market Share 37
  • 39. Cards and SME Cards growth: Maybank vs Industry Business Banking and SME (RM billion) 5.3% YoY Merchant Sales (%) 12.9% Industry 11.6% 3.2% annualised Maybank 24.9 Receivables (%) 15.1% 24.5 13.3% 23.7 Billings (%) 13.6% 17.5% -21.2% Cardbase (%) -16.8% -30% -20% -10% 0% 10% 20% Dec 09 Jun 10 Dec 10 Cards Market Share SME Loans Market Share* 29.1% 29.8% 15.8% Dec 09 Dec 10 15.0% 15.6% 21.6% 22.0% 13.6% 15.5% 16.3% 14.1% 14.0% 13.5% Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Receivables Cardbase Billings Merchant Sales *The SME loans has been rebased up to Dec 09 38
  • 40. Insurance: Etiqa maintains strong overall position Combined Gross Premium Overall Loss Ratio Lower Than Industry Industry 51.3% (Maybank) vs 60.8% (Industry) 60.8%Combined Gross Premium +9.7% +2.7% 9.5% Regular Premium Fire 17.4% 16.1% 25.6% 14.3% +23.5% 11.1% Credit Premium 1H10 75.8% 78.0% Single Premium -53.6% Motor 1H11 70.6% 69.7% 70.6% +2.5% 22.8% Total Life/Family 66.7% 31.7% MAT Motor +17.1% -25.6% 6.0% 5.0% 4.7% Fire +2.2% 44.2% 42.8% 45.6% 41.9% 46.4% Total General +22.9% 46.0% Misc Sep09 Dec09 Mar10 Jun10 Sep10 0 500 1000 1500 2000 Source : Rolling 12 months (Oct09-Sep10) Total Assets grew 8.9% YoY Etiqa ‘s industry position 8.9% 21.9 ■ No. 1 in Life/Family (new business) with 20.1 market share of 20.9% ■ No. 1 in General with market share of RM billion 10.9% ■ No. 2 market share in Total Premium Dec 09 Dec 10 39
  • 41. Singapore: Stronger growth in business loans Strategy Diversified Loan Portfolio +12.1% YoY +17.8% annualised ■ Shift towards corporate loan growth 19.01 17.53 Others 17.03 ■ Broaden customer base: Key driver 4.4 5.7 4.2 from cards Car loans SGD billion 3.3 3.3 3.3 ■ Improve interest margin on credit cards Housing loans 4.2 4.1 4.3 and consumer credit 2.0 2.2 2.0 General Commerce ■ Increase CASA ratio 3.3 3.6 3.8 Building & 2Q10 4Q10 2Q11 Construction Strong financial performance Loans Growth vs Industry ■ Revenue and PBT rose 8.3% and 15.7% YoY driven 32.0% 30.6% by 25.7% growth in business loans (industry grew 18.4% 11.9% 14.1% 11.7%) 13.6% 23.4% 4.97% 11.4% 16.2% 11.10% ■ Strong growth in fee income led by improvement 8.6% 6.6% in core business areas e.g. wealth management -1.38% (+25%) and credit cards (+12%) ■ Low cost deposits grew 9% for savings and 10% Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Sep-10 Nov-10 for demand deposits Maybank Singapore Growth Industry Growth 40
  • 42. Indonesia: Bank Internasional Indonesia Ongoing / Near term Medium Term long term Achievements - Target 2011 - 2012/13 initiatives Long term, Delivering on innovative, relationship positioning culture, Loans growth of - Communication positioning 27% - New products e.g. mobile build SME risk management Net NPL declined to - Process, portfolio 1.74% from 1.97% in approach, previous quarter standardisation, risk appetite Critical for 2011 Funding strategy targets LD ratio declined to -Analytics; Gold, 89.0% from 91.3% -PA expansion; Transaction Banking build out Branch expansion to 327 (Dec 10) from Network 255 (Dec 09) - Regional structure, sales model, branch Bank wide classification optimisation CIR declined to 65.4% from 66.0% YoY Operational process streamlining Page 41 41
  • 43. Indonesia: Bank Internasional IndonesiaRevenue and PBT (Rp billion) for full FY10 (as reported by BII) Net Interest Margin + 17% 5,773 4,934 6.10% 5.89% 5,634 Revenue 5.55% PBT + 2.093% 790 860 Without PSAK 39 790 50/55 FY08 FY09 FY10 YTDDec09 YTDDec10* * Full implementation of PSAK 50/55 (equivalent to IFRS 139) Gross Loans: Composition (Rp trillion) Capital Adequacy: bank only(Credit & Market risk) 19.0 17.1 17.6 (+35%) 20.20% 19.73% 19.44% 19.04% 14.3 18.6 (+35%) 14.0 17.7 15.9 15.57% 14.2 14.71% 14.39% 14.35% 13.68% 13.0 12.2 12.3 (+23%) 11.3 10.0 9.1 2.5 2.9 3.3 (+6%) 2.1 2.2 0.4 0.5 0.5 0.5 0.4 (+1%) Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Corporate SMEC Consumer Syariah Subsidiaries Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 42
  • 44. Pakistan: MCB Bank■ PBT grew 13% YoY to PKR26.5 billion despite a weakening macroeconomic environment. It contributed Revenue and PBT RM57.1 million to 1H11 Group profit. +15.9%■ Loans rose slightly by 0.5% in 2010 to 254.6 billion. 39.6 34.2 +13.5%■ Maintained conservative lending approach due to PKR Billion 26.5 economic conditions and to clean up portfolio to avoid 23.3 risk provisions. Revenue PBT■ Focus is to provide value added services with operational expansion geographically and upgraded systems. FY09 FY10■ Maintaining strong capital position with effective and regularised risk management mechanism and cost Loans and Deposits control via internal measures. +17.3% 431.3 Key Ratios FY09 FY10 367.6 PKR Billion ROA 3.3% 3.1% +0.5% ROE 27.4% 25.9% 254.6 Loans Cost to Income Ratio 32.4% 33.8% 253.2 Deposits Loan-Deposit Ratio 68.9% 59.0% NPL Ratio 8.6% 9.0% EPS (Rupees) 20.38 22.2 FY09 FY10 43
  • 45. Vietnam: An Binh Bank Revenue and PBT ■ PBT grew 53.6% in FY10 to VND638.2 billion. Contributed RM10.6 million to +56.6% 1,321.9 1H11 Group profit. +53.6% VND billion ■ Loans grew 55.4% to VND20.0 billion. 843.9 638.2 ■ Increased branches from 86 to 95 during 415.5 Revenue 2010. Currently, there are 118 branches. PBT FY09 FY10 Loans and Deposits Key Ratios FY09 FY10 +55.4% ROA 1.6% 1.7% +73.0% Cost to Income Ratio 41.7% 42.6% 25,952 Loan-Deposit Ratio 85.9% 77.1% 20,019 Cost to Income Ratio 32.4% 33.8% VND billion 12,883 15,002 Loans Loan-Deposit Ratio 68.9% 59.0% Deposits NPL Ratio 1.5% 1.2% FY09 FY10 44
  • 46. Maybank Islamic maintains strong financing growth of 23.5% annualised Income and PBT (in million) Maybank Islamic financing (23.5% annualised growth) 101.5 Total Gross Financing of RM38.7 billion as at Dec 10 +20.6% 65.5 429.9 13.7 586.5 12.4 220.3 239.6 377.2 11.6 11.7 +9.9% +46.4% +26.5% 6.8 5.8 +16.1% 1H10 1H10 1H10 1H11 1H11 1H11 6.3 5.6 3.6 6.0 5.1 +18.4% Fund based income Fee based income 5.3 3.9 2.3 4.7 Allowance for losses on financing PBT and zakat 3.3 +81.5% 2.1 3.1 2.3 0.3 Improving key ratios for Maybank Islamic 0.2 0.1 AITAB Cards Cashline-i Term Financing Term Financing House Financing Trade Financing 2Q10 4Q10 2Q11 Financing to Deposit Ratio 106.0% 96.6% 97.9% Islamic Financing to 22.7% 24.0% 26.1% Total Domestic Loans 2Q10 4Q10 10 Dec 09 Jun 2Q11 Dec 10 Net ratio of impaired 1.5% 0.9% 1.9% financing Consumer: +24% annualised Business: +22% annualised 45
  • 47. Thank YouMALAYAN BANKING BERHAD Khairussaleh Ramli Hazimi Kassim Raja Indra Putra Raja Ismail14th Floor, Menara Maybank 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 46