Dato’ Sri Abdul Wahid Omar
Invest Malaysia 2010             President & CEO
                                 Maybank
Shang...
Introduction

 Recap from Invest Malaysia 2009:
    Leading b ki franchise i M l
    L di banking f          hi in Malaysi...
Leading Banking Franchise

Stronger Financial Footing

St    th i R i       lP
Strengthening Regional Presence

Strategy 2...
Malaysia’s Leading Banking Franchise

                             Total assets: RM331 billion
 Largest bank in Malaysia
 ...
Maybank continues to lead…

               Total Assets (RM bn): 31 Dec 2009                        Net Loans (RM bn): 31 ...
Domestic Market: Leading market position in most sectors

                                  Diversified across all financi...
Leading Banking Franchise

Stronger Financial Footing

St    th i R i       lP
Strengthening Regional Presence

Strategy 2...
Strong Performance in 1H 2010

                   Net Income grew 35% YoY                                                 ...
Stable Net Interest Margin and Improving Asset Quality

  Increasing Net Interest Income and                            Im...
Robust loans and business growth
Robust loans growth in key business segments particularly in the consumer segment
       ...
Leading Banking Franchise

Stronger Financial Footing

St    th i R i       lP
Strengthening Regional Presence

Strategy 2...
Our International Presence
                               Other Markets



                                  Bahrain      ...
Regional ranking

          Total Assets (RM bn): 31 Dec 2009                      Net Loans and Deposits (RM bn): 31 Dec ...
International: Enhancing Asset and Profit Contribution

Key Markets                                  Indonesia
           ...
International: Assets and profits contribution

International targeted to contribute 40% of loans and profits by 2015

As ...
Singapore: Financial Performance & Business Drivers

                       Financial Data                       1H10     ...
BII : Consolidated Income Statement
         Income Statement                                                   Jul - Dec ...
Pakistan: MCB Bank

                                                                        Net Income grew 30% YoY

     ...
Vietnam: An Binh Bank

■ Completed initial 15% stake in Sept 2008                           Net Income grew 166% YoY
  and...
Bank Internasional Indonesia (BII)




                                     20
Indonesia is the Most Profitable Market in Asia
 •    These conditions are unlikely t di i t soon
      Th         diti   ...
Our Aspirations




              5         x         5         x        5
      Top B k by
      T 5 Banks b            L...
Rationale to be in the areas we choose (1/2)

 1. Leading banker for transportation industry
      •   One of the banks th...
Rationale to be in the areas we choose (2/2)

 4. Corporate: No. 1 in Structured Trade Financing & Resource Based Industry...
Leverage Synergy Opportunities With Maybank

                  Nascent syariah banking operations 5 branches, USD35 millio...
BII among peers – as of Dec 2009

               Total Assets (Rp. Tn)                                          Total Depo...
Assets Growth
                                                                          In IDR billion
                   ...
Improvement in Key Drivers
                                                                          In IDR billion

   NI...
WOM: Improvement in Risk Area
Provision expense (monthly) for WOM portfolio All the work is paying off at the bottom line
...
WOM: Volume and Returns

  WOM is regaining market share                                              Turnaround to positi...
Summary and Prospects

   Indonesian macroeconomic outlook is positive on the back of infrastructure
   development, recov...
Leading Banking Franchise

Stronger Financial Footing

St    th i R i       lP
Strengthening Regional Presence

Strategy 2...
Strategy 2010 and beyond



          Focus on 3 key business p
                       y          pillars:

             C...
Community Financial Services

Bringing Maybank closer to the community, ‘Closer to You’. Our aspiration is to be a central...
Enhance
Wholesale Banking                    Credit &
                                     Innovative
                    ...
Insurance

Humanising Insurance and Takaful for our customers – making insurance accessible to all, ensuring
care for the ...
Capital Management & DRP
                                                   Proposed DRP process flow
Capital Ratios and D...
Other issues
                 Ready to
                 R d t comply by next fi
                               l b      t ...
Key Take Aways


     Maybank is strengthening its position as the leading banking
     franchise in M l
     f    hi i Ma...
Thank You




MALAYAN BANKING BERHAD         Khairussaleh Ramli              Hazimi Kassim                          Raja I...
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Maybank - Invest Malaysia 2010 Presentation

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Maybank - Invest Malaysia 2010 Presentation

  1. 1. Dato’ Sri Abdul Wahid Omar Invest Malaysia 2010 President & CEO Maybank Shangri-La Hotel, Kuala Lumpur Ridha Wirakusumah 30-31 March 2010 President Director PT Bank Internasional Indonesia Tbk
  2. 2. Introduction Recap from Invest Malaysia 2009: Leading b ki franchise i M l L di banking f hi in Malaysia with market leadership across almost i ith k t l d hi l t all key business sectors. Stronger footing after recent RM6 billion rights iss e which has enabled issue hich Maybank to maintain its credit rating, weather the current economic downturn, and capture growth opportunities. Presence in key markets in the South East Asia and South Asia and is now strengthening its regional presence by capturing value from recent investments i.e. Bank Internasional Indonesia, MCB Bank and An Binh Bank. Well positioned to capture growth opportunities and we have embarked on our Strategic Transformation Plan with the vision of becoming one of the top 5 banks in South and South East Asia by 2015. 2
  3. 3. Leading Banking Franchise Stronger Financial Footing St th i R i lP Strengthening Regional Presence Strategy 2010 and beyond 3
  4. 4. Malaysia’s Leading Banking Franchise Total assets: RM331 billion Largest bank in Malaysia Largest market capitalisation of RM52 billion. Largest branch network in 386 branches, 2,800 ATMs, 9 million customers. Malaysia No.1 Internet banking with a dominant market share of 55% Presence in key growth Over 1,700 branches and offices in 14 countries. markets in South & 16 million customers in the South East Asia region South East Asia with GDP of 5.3% for 2011 S&P : A- Moody’s: A3 Strong credit rating, on par with sovereign Fitch : A A- RAM: AAA Complete financial Extensive range of products and services covering Consumer, Corporate services provider p & SME, Islamic banking, Investment banking and Insurance. Strong momentum in revenue and profitability. Two strong quarters of performance for 1H10 1H10 revenue grew 35.5% YoY, PATAMI rose 43.5% YoY Margins stable at 2 8% improving asset quality with Net NPL at 1 43% 2.8%, 1.43%. 4
  5. 5. Maybank continues to lead… Total Assets (RM bn): 31 Dec 2009 Net Loans (RM bn): 31 Dec 2009 Maybank 331 Maybank 195 CIMB 240 CIMB 142 Public Bank 217 Public Bank 135 RHB Cap 115 RHB Cap 67 AMMB 95 AMMB 64 HL Bank 80 HL Bank 35 EON Cap 46 EON Cap 32 Affin 40 Affin 22 Alliance 32 Alliance 20 Deposits (RM bn): 31 Dec 2009 Market Capitalisation (RM bn): 26 March 2010 Maybank 231 Maybank 52.4 CIMB 179 CIMB 49.4 49 4 Public… 171 Public Bank 41.1 RHB Cap 85 AMMB 15.0 AMMB 67 HL Bank 13.6 HL Bank 66 RHB Cap 12.1 EON Cap 35 EON Cap 4.9 Affin 29 Alliance 4.3 Alliance 24 Affin 4.3 5
  6. 6. Domestic Market: Leading market position in most sectors Diversified across all financial products and services Within the top 3 in almost all key business sectors Network Consumer Corporate Islamic Deposit Cards Investment Insurance & Banking Asset Mgmt %) 55% Market Share (% New Business Premium 30% 29% 27% 24% 22% 21% 21%23% 20% 19% 16% 17% 17%17% 16% 15% 14% 14% 15% 14% 10% Industry y Position n 8% 7% 1 1 1 2 2 3 2 1 1 1 1 2 1 1 1 1 1 3 2 4 2 4 1 1 iting M&A amily ities ATM king osits osits oans ance anch oans osits ombined General osits ales ASA oans Corporate Loan SME Loan ance Asset Under Mgmt Credit Card Base cing Merchant Sa M CA Internet Bank A Depo Fixed Depo Saving Depo Equi Demand Depo Underwri Trade Fina Bra Consumer Lo Auto Lo Housing Lo Debt Issua Life/Fa Financ Co D A * As at Dec 2009, except for Insurance & Asset Mgt (Sep 09) 6
  7. 7. Leading Banking Franchise Stronger Financial Footing St th i R i lP Strengthening Regional Presence Strategy 2010 and beyond 7
  8. 8. Strong Performance in 1H 2010 Net Income grew 35% YoY PATAMI grew 44% YoY RM 7,500 million 1875.3 Net 6408.2 Income: +35% 21.3% YoY Non-Interest 1,500 4729.9 2,360.1 1306.7 5,000 54.1% Income: +78% YoY 1,327.2 3151.1 3257.1 737.5 Islamic Banking Income: +25% 1,000 2684.7 590.3 2,500 1,142.0 1,218.1 2045.2 832.2 2045 2 832 2 3,310.7 Net-Interest 2,812.4 495.0 381.6 355.9 500 305.1 285.2 Income: +18% 1,683.1 1,627.6 1,547.4 1,265.0 1 1 1 0 0 1Q09 2Q09 1Q10 2Q10 1H09 1H10 1H 09 1H 10 8
  9. 9. Stable Net Interest Margin and Improving Asset Quality Increasing Net Interest Income and Improving Group Gross & Net NPL Ratio, Stable Net Interest Margin and Higher Loan Loss Coverage 2.82% 2.77% 5.12% 2.79% 2.87% 4.80% 117.8% 112.9% 2.70% 101.5% 99.2% 100.2% 99 2% 100 2% 99.8% 113.2% 1.68 2.52% 1.63 3.76% 1.55 1.54 1.56 83.6% 3.60% 3.55% 3.46% 3.50% 87.2% 1.26 1 26 3.59% 2.69% Net NPL Ratio 3.26% Gross NPL Ratio 2.43% Loan Loss Coverage 1.92% 1.80% 1.64% 1.84% 1.43% 1.73% 1.60% Dec 07 Sep 08 Dec08 Sep 09 Dec 09 Mar 08 Jun 08 Mar 09 Jun 09 2Q09 4Q08 4Q09 3Q08 3Q09 2Q08 1Q09 1Q10 2Q10 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Net Interest Income (RM billion) NIM (%) 9
  10. 10. Robust loans and business growth Robust loans growth in key business segments particularly in the consumer segment segments, Housing Loan Growth Cards Growth 1H FY10 YoY 800 Market share: 14% Maybank Industry * RM million 600 Card base 4.4% - 0.2% 400 Billings 12.2% 6.9% Receivables 8.3% % 5.3% % 200 Merchant Sales 23.9% 4.9% 0 * Industry figures for cards includes 2Q09 3Q09 4Q09 1Q10 2Q10 commercial banks and non FI players non-FI Auto Loan Growth Corporate & Business Loans Growth 800 Market share: 17% Trade bills RM million Total Loans grew 600 5.6% annualised STRC 400 Dec 09 OD June 09 200 Term Loans 0 RM 2Q09 3Q09 4Q09 1Q10 2Q10 0 20 40 billion 10
  11. 11. Leading Banking Franchise Stronger Financial Footing St th i R i lP Strengthening Regional Presence Strategy 2010 and beyond 11
  12. 12. Our International Presence Other Markets Bahrain Pakistan China Papua New Brunei Guinea An Binh Bank Treasury Centres (91 branches). To increase branches to Treasury 150 Centres New York Growth in Vietnam (2 branches) Exploring selected to open 1 additional assets branch. and London Treasury activities ASEAN Cambodia Hong Kong (7 branches) To branches). increase branches to 11 by FY2011 Philippines Singapore (22 branches) to focus on BII (250 branches). To add 200 (45 branches). building strength in key products such branches by 2011 & Double ATMs to Further expansion of as Auto & Housing Loan 1,500 by 2011. operations in For Corporate/SMEs, to selectively Possible conversion of Bank Maybank Philippines grow customer base Indocorp into Syariah Bank 12
  13. 13. Regional ranking Total Assets (RM bn): 31 Dec 2009 Net Loans and Deposits (RM bn): 31 Dec 2009 535 SBI 709 SBI 938 DBS 327 DBS 633 437 UOB 249 OCBC 476 279 Maybank 203 UOB 454 231 OCBC 202 ICICI 346 246 Net Loans Maybank 330 No.6 ICICI 194 176 Net Deposits CIMB 240 CIMB 149 179 Public Bank 217 Public Bank 138 No.4 by Net Loans 171 RHB Cap p 115 RHB Cap 70 No.5 by Net Deposits 85 PATAMI (RM bn): 1H to Dec 2009 Market Capitalisation (RM bn): 26 Mar 2010 SBI 4.6 46 SBI 96 DBS 2.6 DBS 79 UOB 2.5 ICICI 77 OCBC 2.3 OCBC 70 Maybank 1.9 19 No.5 No 5 ICICI 1.7 UOB 67 CIMB 1.5 Maybank 52 No.6 Public 1.3 CIMB 49 RHB Cap 0.7 07 Public 41 13
  14. 14. International: Enhancing Asset and Profit Contribution Key Markets Indonesia I d i Senior management team in BII in place. Continue building scale and scope for Seeing turnaround of profitability Singapore and Indonesia which already Recorded annualised loans growth of 23% to Dec 09 have infrastructure and capabilities, to Planned 200 branch expansion drive International’s growth greater th di I t ti l’ th t than 20% for profitability and loans target. Singapore Biggest International profit contributor. Strong loans growth outpacing the industry Excellent asset quality Markets to Develop Cambodia Develop these growing markets in the To increase to 11 branches in FY11 and introduce off site ATMs. medium to long-term by both building To increase capital, introduce new products and build branding. scale and scope organically. Vietnam GDP growth rates of 6.5%, 4.0% and To add 3rd branch and seek for local incorporation. 4.2% for Vietnam, Cambodia and To increase collaboration with An Binh Bank. Philippines. Philippines Contributed RM25.6 m to Group PBT Strategy to expand asset base, intensify asset management and St t t d tb i t if t t d for 1H10. upgrade infrastructure. Associates An Binh Bank Increase collaboration in Increased b I d branches f h from 66 t 86 d i 2009 to during 2009. all areas of business and Currently, there are 91 branches. operations. MCB Bank PBT grew 2% YoY to PKR22.9 billion despite slowdown in economy. 14
  15. 15. International: Assets and profits contribution International targeted to contribute 40% of loans and profits by 2015 As at 31 December 2009 1H 10 11.1 Others: 5% International Loans PBT ational 14.6 Indonesia: 7% Singapore: 15% (RM b) (RM m) 27% 759 Indonesia: 5% 3% Interna 2 33 Singapore: 21% Oth Others: 7% 41.6 175 Insurance: 6% 103 Investment Banking: 4% 69.0 Business & 688 Global Corporate: 34% stic Markets: 24% Domestic c Domes 73% % 67% Business & 464 Corporate: 16% Consumer: 33% 66.7 Consumer: 23% 665 15
  16. 16. Singapore: Financial Performance & Business Drivers Financial Data 1H10 1H09 YoY growth Loan Loss Provision Income Statement (S$ m) 60 50.7 Total Profit/(Loss) Before Tax 170.7 98.6 73.2% 50 42.4 SGD million Loans & Deposits (S$ m) 40 31.3 Total Loans 17,027 15,967 6.6% 30 24.4 Total Deposits 20,237 17,083 18.5% 16.7 16.2 16.8 17.3 20 NPL 10 Gross NPL ratio 0.77% 1.21% -0.44% 0 Net NPL ratio 0.09% 0.18% -0.09% 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Gross Loans General Loans Growth Commerce, Non-Bank 18,000 35% 11.9% Financial 16,000 32.0% Corporate: Inst,, 9.3% 30% 14,000 27.8% 52% Building & Transport, S 25% Construction torage & SGD million 12,000 8,823 7,946 8,452 Manufacturin , 19.2% Comm, 5.2 10,000 6,541 20% g, 4.3% % Others Other 8,000 5,370 15% 14.3% Consumer Corporate S 6,000 6 000 Loans, 3.2% Loans, 1.8% 10% 4,000 6,924 7,441 7,699 8,204 Housing 5% Car Consumer: 2,000 5,162 6.6% Share Loans, 19.2 Loans, 24.8 5.0% Financing, 0. 48% % % - 0% 3% FY06 06 FY07 0 FY08 08 FY09 09 1H10 0 Credit Gross loans SGD17b Cards, 0.7% as at 31 Dec 09 Business Consumer 16
  17. 17. BII : Consolidated Income Statement Income Statement Jul - Dec 09 Oct - Dec 08 Rp billion (Rp1000 = RM0.36) Contribution Contribution Interest Income 2,993 1,654 Interest Expenses -1402 -992 Net Interest Income 1,591 662 Non Interest Income N I t tI 960 466 Gross Operating Income 2,551 1,128 Operating Expenses (excl. Provision) -1603 -681 Operating Income before Provision 948 447 Provisions -394 -320 Profit Before Tax 554 127 Net Profit 457 103 Note: N t • The results exclude loan loss provisions on certain accounts which had already been accounted for at the Group level in the last financial year as part of the purchase price allocation exercise following the acquisition of BII. • The accounts of BII were consolidated into Maybank Group beginning October 2008 after the acquisition of the 56% in BII was completed at the end of September 2008. In early December, Maybank completed the acquisition of 97.5% of BII. 17
  18. 18. Pakistan: MCB Bank Net Income grew 30% YoY 45,000 Net ■ Completed 20% stake purchase in 41,157 Income: +30% August 2008. 40,000 5,553 Non-Fund ■ Represented by 2 members to the based 35,000 31,614 Board I 6% Income: -6% PKR million 30,000 ■ Management has focused on asset 5,908 portfolio and cost control amid slowing 25,000 R economy economy. 35,604 20,000 Fund-based ■ Loans fell 4% in 2009 to 254.9 billion Income: +39% 25,706 ■ PBT grew 2% YoY to PKR22.9 billion 15,000 despite slowdown in economy. 10,000 Contributed RM53.2 million to 1H10 Group profit. 5,000 , 0 2008 2008 2009 2009 18
  19. 19. Vietnam: An Binh Bank ■ Completed initial 15% stake in Sept 2008 Net Income grew 166% YoY and additional 5% stake in Dec 2009. 900 Net ■ Appointed 1 member to the Supervisory Income: +166% 778.2 Committee and 1 to Board of Directors. 800 Non-Fund ■ Seconded a Chief Risk Officer 700 87.9 based ■ Increased branches from 66 to 86 during I Income: +304% VND million 2009. Currently, there are 91 branches. 600 ■ Business cooperation in the areas of 500 D Consumer banking (credit cards, remittances), trade finance, sharing 400 Fund-based 690.3 risk management framework 292.6 Income: +155% 300 21.8 21 8 ■ Improving economic sentiment in the country even as VND faces devaluation 200 270.8 pressure. 100 ■ L Loans grew 93% to VND12 6 billi VND12.6 billion. ■ PBT grew 535% in 2009 to VND415.5 m. 0 Contributed RM4.5 million to 1H10 Group 1H 09 2008 1H 10 2009 profit. fit 19
  20. 20. Bank Internasional Indonesia (BII) 20
  21. 21. Indonesia is the Most Profitable Market in Asia • These conditions are unlikely t di i t soon Th diti lik l to dissipate • Assuming a doubling of bank assets by 2015, Indonesian banks will have a future earnings of US$5.0billion which implies a future sector market capitalization of US$65billion (against US$28billion at present) 2.5 25 2.3 Asian Bank ROA - 2008 2.0 1.5 1.3 1.2 1.2 1.0 1.0 1.0 1.0 1.0 0.8 0.7 0.5 0.2 0.0 Indonesia India China Thailand Australia Malaysia Singapore Hong Kong South Philippine Taiwan Korea NIM (%) Asian Bank NIM 2010E ROA (%) Asian Bank ROA 2010E 8.0 80 by Credit Suisse In November 2009 3.0 30 by Credit Suisse In November 2009 6.8 2.5 7.0 2.5 2.3 5.8 6.0 2.0 5.0 4.0 4.0 3.5 35 1.5 3.3 33 1.1 1.1 1.1 2.6 1.0 1.0 1.0 1.0 3.0 2.4 2.3 1.0 2.2 2.0 2.0 0.6 1.3 0.5 0.3 1.0 - - ID PK PH TH IN MY CN KR HK SG TW ID PK IN TH HK CN MY SG PH KR TW 21
  22. 22. Our Aspirations 5 x 5 x 5 Top B k by T 5 Banks b Leading in 5 By 2015 Assets & Areas Returns In line with Maybank’s aspiration to be One of SEA & South Asia Top 5 Banks by 2015 22
  23. 23. Rationale to be in the areas we choose (1/2) 1. Leading banker for transportation industry • One of the banks that own motorcycle financing companies, both 2 wheelers and 4 wheelers • One of the banks that lend to shipping industry • Have a good base for airline business by partnering with Lion Air 2. USD Payment Bank • BII has a strong customer base with USD transactions • BII has a strong USD funding, with a composition FCY funding 26% compared to average industry of 17% • 65% of the FCY funding is in CASA (while industry average is 51%), indicating the heavy usage for transactions • BII is the long time player i USD t i th l ti l in transactions and well k ti d ll known of : f • Offering competitive FX rate amongst other peer banks • Having flexibility to accept USD notes with substandard conditions while other banks would not accept 3. SME/Commercial: No. 1 in Supply Chain Financing • Multiplier effect, i.e. end to end financial solution start collection to payment in each flow of business creation • Powerful cross sell engine, i.e. funding, lending and transaction • Unique positioning, with limited competition and relatively low risk • Economic of scale and time to market 23
  24. 24. Rationale to be in the areas we choose (2/2) 4. Corporate: No. 1 in Structured Trade Financing & Resource Based Industry • Lucrative business given limited players in the market, very structured (minimize credit risk), short tenor and self liquidating • Indonesia is a resource based (commodity) country, be it soft (sugar, rice, coffee, etc) and hard (coal, tin, iron, oil n gas, etc) commodities. Normally in sourcing and transporting these commodities are not straight forward g g given limited working capital; and we are as bank sees this opportunity to finance this g p pp y business and to move the products either locally or globally 5. No. 1 in Credit Card • High margin business and provide entrance to other cross selling opportunities for deepening relationship • Card represent consumer lifestyle and behavior. Being number 1 in cards means most consumers / population will use Bii credit card and Bii is on top of everyone's mind • By having credit card customer, it is a lifetime relationship as it is an open ended p y g , p p product 24
  25. 25. Leverage Synergy Opportunities With Maybank Nascent syariah banking operations 5 branches, USD35 million loans Syariah Define business model and alignment with Bank Maybank Indocorp Banking Investment I t t Replicate Maybank-IB in Indonesia Banking Create a program to allow Singapore accounts to be opened p g g p p Maybank from Jakarta (Priority and Private banking) NIAGA Singapore Singapore domiciled companies belonging to Indonesians Maybank Corporate CIMB-N Continue existing cross referrals of customers banking Increasing trade business between Malaysia and Indonesia Trade Need to N d t ensure adequacy of t d and counterparty facilities d f trade d t t f iliti Significant potential to capture Insurance Improve bancassurance relationships p p Align development of BII’s future IT architecture with Maybank Internet banking Others Sharing f t l t Sh i of talent as a regional expert and regional program l d i l t d i l leader 25
  26. 26. BII among peers – as of Dec 2009 Total Assets (Rp. Tn) Total Deposits (Rp. Tn) Total Loan (Rp. Tn) Mandiri 375 BRI 255 BRI 206 BRI 318 BCA 245 Mandiri 178 BCA 283 Mandiri 230 BCA 123 BNI 227 BNI 189 BNI 120 CIMB Niaga 107 CIMB Niaga 86 CIMB Niaga 82 Danamon 97 Danamon 68 Danamon 60 Panin 76 Panin 56 Panin 41 From No.10 in From No.9 in BII 59 8 June 2009 BII 48 8 Permata 41 June 2009 BTN 58 Permata 46 BTN 41 Remained at No.10 Permata 56 BTN 40 BII 37 10 since June 2009 Source: Indonesian Banking Statistics 26
  27. 27. Assets Growth In IDR billion I billi Industry: 7% Industry: y 60,966 16% 12% Industry: 17% 3% 56,867 56,833 4% 55,972 55,016 54,556 53,040 Dec-06 Dec-07 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 27
  28. 28. Improvement in Key Drivers In IDR billion NII Gross Operating 4,779 3,100 7% Income 13% 4,446 2,756 2 756 Dec-08 Dec-09 Dec/08 Dec/09 Overhead Cost Total Operating Income 3% 3,049 Before Provision 2,963 1,729 1 729 17% 1,483 Dec-08 Dec-09 Dec/08 D /08 Dec/09 D /09 28
  29. 29. WOM: Improvement in Risk Area Provision expense (monthly) for WOM portfolio All the work is paying off at the bottom line P i i ( thl ) f tf li in BII (Rp. Billion) Monthly Profit (Net Profit, Rp. billion) 10.17 9.98 76 8.54 8.37 8 37 8.23 8.16 8 23 8 16 65 58 56 5.79 51 45 40 3.04 35 1.16 1.21 31 29 1.04 23 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 15 09 09 09 09 09 09 09 09 09 09 09 09 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- -5.02 09 09 09 09 09 09 09 09 09 09 09 09 29
  30. 30. WOM: Volume and Returns WOM is regaining market share Turnaround to positive returns Monthly Sales Volume (# units) M hl S l V l i ) ROA & ROE (%) 42,107 40,891 38,358 36,051 36 051 36,773 36 773 35,663 32.4% 31,109 18.0% 29,933 7.5% 8.9% 27,032 2.4% 0.6% 24,346 25,257 22,066 2007 2008 2009 2010 F -6.0% ROA ROE Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 09 09 09 09 09 09 09 09 09 09 09 09 -110.5% 30
  31. 31. Summary and Prospects Indonesian macroeconomic outlook is positive on the back of infrastructure development, recovery in consumer spending, domestic investment and FDI, as well as stab e IDR stable 2009 was a year of consolidation in Bii, 2010-11 will be concentration on strengthening the infrastructure ( and network) in order to build a sustainable g g (IT ) foundation for exceptional growth and in order to compete effectively in an ever tightening market One of two top ten banks that has dedicated two wheelers subsidiary. Our prospect is to strengthen this and to expand it into a full fledge consumer financing business Leverage our subsidiaries and increase cross-sell Continue to maintain and strengthen our service differentiation g Develop winning businesses in key areas and utilize synergy with Maybank to the fullest 31
  32. 32. Leading Banking Franchise Stronger Financial Footing St th i R i lP Strengthening Regional Presence Strategy 2010 and beyond 32
  33. 33. Strategy 2010 and beyond Focus on 3 key business p y pillars: Community Financial Services Wholesale Banking Insurance & Takaful Supported by strong Enterprise Transformation Services, covering Operations and IT 33
  34. 34. Community Financial Services Bringing Maybank closer to the community, ‘Closer to You’. Our aspiration is to be a central part of a growing community, engaging them for a mutually sustainable future. Reposition customer value proposition around convenience and Repositoning serving the needs of the community. of Maybank Leveraging o s a ed d s bu o model to leverage a pa s o e e ag g on shared distribution ode o e e age all parts of Maybank’s network. Focusing on Customer Segment-driven model allowing for Customer customisation and differentiation. Segment- Driven Model Embedding SME-loans and all deposits to grow and expand market share. Leverage on technology, developing customer centric distribution Industrialisation strategy. Operating O ti Hub and Spoke model with seamless straight through processing. Model Faster turnaround, through embedded credit decision making within Enhancement consumer. 34
  35. 35. Enhance Wholesale Banking Credit & Innovative Product Realising the t ti l f R li i th potential of our CCorporate, B i t Business , I Investment B ki and Gl b l M k t aims t t Banking d Global Markets i to become a truly wholesale bank. Relationship Become a trusted advisor and nurturing proactive relationship via break-through break through Management conversations with clients. as a single Provide targeted account planning approach supplemented by product specialist. point of Offer product neutral solution based on client needs. contact Leverage on capital market solutions and investment banking deals. Sharpen focus on different SME segments. Scaling S li up Global T Gl b l Transaction S i ti Services, cash management, t d and t h t trade d treasury Enhance solutions. Credit & Ability to provide reduced Turnaround Time (TAT) via improved credit process. Innovative Product Islamic I l i embedded i product and solutions set. b dd d in d d l i Provide industry specific regional product offerings. Regional Ability to leverage on cross border business opportunities opportunities. Geographic Ability to offer best available products and services offerings to cross border Platform & customers. Capabilities Provide regional p g g p p y platform and integrated operations capability. 35
  36. 36. Insurance Humanising Insurance and Takaful for our customers – making insurance accessible to all, ensuring care for the community. Transforming th Lif A T f i the Life Agency f force and b ildi a T 3 agency player i M l d building Top-3 l in Malaysia. i Strategy Strengthening the Bancassurance distribution leveraging on the group’s extensive touchpoints, and growing insurance penetration from corporate customers. Cross Selling the Enterprise General portfolio into Group Life “Brand Leadership” – Turning Etiqa into a Top 3 insurance brand in Malaysia. Business “S i E “Service Excellence” t achieve near “Best in Class” ll ” to hi “B t i Cl ” Enhancement “Human Capital Development” - in line with the renewed Talent Management of the Group. Revenue/ Boosting life regular premium and improving persistency. Premiums Protecting market share in profitable segments Regional Expand regionally taking advantage of Maybank’s significant presence. Aspiration 36
  37. 37. Capital Management & DRP Proposed DRP process flow Capital Ratios and Dividend Policy Strong profit generation together with RM6bil Escrow rights issue in 2009 improved capital adequacy Account Step 5 Step 4 Cash to be paid to the ratios to : Maybank to transfer the respective Shareholders in funds amounting to net • RWCR - 14.6%. payment of the Electable respect of the Remaining Portion and the Electable • Tier 1 Capital Ratio -10.8%. Portion and the Remaining Portion (where Shareholders Portion to escrow account • Core Equity Ratio – 8.0%. Step 5 choose to receive in cash) ( A at 31 D 2009) As t Dec The reinvested amount will be transferred to Maybank Dividend payout policy of 40-60%. Maybank Shareholders Step 5 Dividend Reinvestment Plan (DRP) Maybank to allot and credit new Maybank Shares into the Central Depository System Accounts of Shareholders who choose to reinvest into new Maybank Shares To enhance and maximise shareholders’ value Step 1 via the subscription of new Maybank shares. • Maybank to declare Dividend to which the Dividend Reinvestment Plan applies DRP provides shareholders flexibility either : • Notice of Election and information memorandum/ modified prospectus • receiving cash; or (as the case may be) to be dispatched to Shareholders Step 2 • Reinvesting through share subscription. Yes To elect to reinvest into Maybank to benefit by conserving capital and Step 3 new Maybank Shareholders to complete and return the Notice of Election to the p Shares adding liquidity of M b k shares. ddi li idit f Maybank h registered office of Maybank (or such other addresses as may be announced by Maybank from time to time) Expected to be put in place by the second No quarter of 2010. No action required 37
  38. 38. Other issues Ready to R d t comply by next fi l b t financial year. Ad ti subject t B k N i l Adoption bj t to Bank Negara FRS 139 approval. Impact expected to be positive Maybank has adopted: Foundation Internal Rating Base (FRIB) for credit risk Internal Model Approach ( pp (IMA) for market risk ) The Standardised Approach (TSA) for operational risk Basel II Currently in parallel run. Basel II undergoing certification by Bank Negara. FY2011 is expected to be completely under Basel II. Impact expected to be neutral. Key areas of New Basel Committee's proposals : Capital base to focus on core equity capital base; Basel III, Capital Risk coverage to strengthen capital requirements for counterparty risks; Management g Leverage Ratio to prevent excessive leverage; and Liquidity Procyclicality to promote building of Capital Buffers for period of stress. Risk Global Liquidity standards requirements. Though the details are being finalised, engaging regulators to prepare for compliance 38
  39. 39. Key Take Aways Maybank is strengthening its position as the leading banking franchise in M l f hi i Malaysia in line with our transformation programme. i i li ith t f ti Current capital position, strong profit generation capability and Dividend Reinvestment Plan will strengthen our capital position and capture growth opportunities in domestic and overseas markets. Profitability in our key markets in the South East Asia and South Asia are gaining momentum. With the improving economic environment in the markets that we operate, the Group expects its financial performance for the current financial year ending 30 June 2010 to improve significantly and we expect to exceed our KPIs. 39
  40. 40. Thank You MALAYAN BANKING BERHAD Khairussaleh Ramli Hazimi Kassim Raja Indra Putra Raja Ismail 14th Floor, Menara Maybank Chief Financial Officer Head, Strategy and Corporate Finance Head, Investor Relations 100, 100 Jalan Tun Perak Contact: (6)03-2074 4288 (6)03 2074 Contact: (6)03-2074 8101 (6)03 2074 Contact: (6)03-2074 8582 (6)03 2074 50050 Kuala Lumpur, Malaysia Email: khairul@maybank.com.my Email: hazimik@maybank.com.my Email: rajaindra@maybank.com.my Tel : (6)03-2070 8833 www.maybank.com 40
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