malayan banking berhad (maybank) 2q fp11 analyst presentation
DESCRIPTION
Maybank 2Q FP11 Analyst PresentationTRANSCRIPT
0
Investor Presentation
Financial Results6-Month Financial Period ended 31 December 2011
23 February 2012
www.maybank.com
1
Investor Presentation
Executive Summary
Financial Performance
Business Review
Country Review
Economic Update and Prospects
Financial Results: 6-Month Financial Period ended 31 December 2011
2
Key Highlights: Financial performance continued to improve
Strong revenue growth and continued profit growth for 6-month Financial Period (FP) 2011
Revenue grew 21.6% YoY on the back 16.2% growth in fund based income and 32% growth in fee income
Revenue grew 17.3% excluding insurance surplus transfer & new takaful framework implementation.
6-month FP 2011 PATAMI grew 20.0% YoY to RM2.58 billion; 2QFP2011 PATAMI grew 15.2% YoY to RM1.30 bil
Growth seen across all business pillars
All business pillars recorded double digit revenue growth
PBT rose by RM597 million (+20.1%) YoY mainly due to growth in: Community Financial Services (+RM257m, +18.0%)
Global Wholesale Banking (+RM90m, +7.8%)
Insurance & Takaful (+RM295m, +323.1% )
International (+RM159m, +19.4%)
On annualised basis Group loans grew 16.2% (23.7% YoY), driven by strong loans growth of 23.7% in
Singapore (29.3% YoY) and 31.2% in BII (25.0% YoY) while domestic loans grew 10.0% (17.4% YoY).
Allowances for losses on loans for FP11 improved by 13.9% YoY primarily due to higher recovery and lower
individual allowance. Net Impaired Loan ratio improved to 1.86% in Dec 2011 from 2.25% in Dec 2010.
Strong Financial Position
Group shareholders’ funds of RM33.4 billion, total assets of RM451.3 billion
Capital Adequacy Ratio of 16.26% (assuming a 85% DRP reinvestment rate)
Exceeded Headline KPIs for FP2011
ROE of 16.2% exceeded target of 16.0%, & Loans and Debt Securities growth of 16.3% against 12% target
Continued high dividend payout of 79.9%
Proposed final dividend of 36 sen per share less 25% tax.
The dividend consists of 4 sen cash portion and 32 sen electable portion for the DRP.
3
Key Corporate Developments: Eventful 6-Month period
Change of Financial Year End from 30 June to 31 December.
Branding Initiatives
Prime Minister launched refreshed Maybank Group corporate identity
New corporate identity for Kim Eng (Maybank Kim Eng)
BII rebranding in progress
New Appointments
Dato’ Khairussaleh appointed as President Director/CEO of BII, subject to Bank Indonesia approval.
Michael Foong appointed Chief Strategy & Transformation Officer, Maybank Group
Network Expansion
During the financial period Maybank added new branches in Malaysia (+6, bringing total to 392) and Indonesia
(+7 to 346). Network expansion also took place the Philippines (+5 to 50) and Cambodia (+1 to 11) during the
year.
Medium Term Funding
28 Dec 2011. Issuance of RM1.0 billion of Subordinated Notes under its RM3.0 billion Subordinated Note
Programme in two tranches: RM750m, 10 non-callable 5 basis priced at 3.97% and RM250m, 12 non-
callable 7 basis priced at 4.12%.
10 Feb 2012. Issuance of USD400 million Regulation S senior unsecured notes under its USD2.0 billion
Multicurrency Medium Term Note Programme, priced at 3.0% and was 5 times oversubscribed.
4
The 12-month priorities we set when we announced our FY2010/2011 results
1. Growing loans & deposits with pricing discipline
Annualised loan growth for Jan-Dec 2011 of 16.2% exceeded loan growth 12-month of 12%
NIM saw a marginal decline to 2.53%
2. Reinforcing community banking & addressing SME fundamentals
Continued roll-out of our branch transformation program with signature branches in various locations
Annualised loan growth of 9.1% for business banking & SME loans
3. Intensify client coverage collaboration with product partners, with regional responsibility.
International coverage teams in place to secure cross border deals & service regional clients
Wholesale banking product heads in Singapore, Indonesia, Hong Kong, China and Philippines.
4. Realise investment banking synergies between Maybank IB & Kim Eng
Utilization of new regional franchise to distribute IPO transactions both domestically & regionally
Maybank-KE post merger integration planning including quick wins completed & full implementation to follow in 2012
Our progress as at December 2011….
5
The 12-month priorities we set when we announced our FY2010/2011 results
5. Continue asset & network expansion in BII, fix WOM & grow Syariahbanking in Indonesia
Additional 19 branches & 136 ATMS to BII’s network between Jan-Dec 2011
Acquisition of minority interest in MSI & pursue acquisition of MSI by BII in 2012
6. Grow insurance assets under management & build agency force
Total AUM grew 8.7% on annualised basis Retained no.1 position in life/family Takaful & general
Takaful & largest agency force Roll out of development programmes to ensure a
professional and competent agency force
7. Enhance service quality, customer experience & satisfaction
Roll-out of service improvement programs such as problem resolution initiatives, ATM/CDM uptime performance, cut-down average waiting time, improve product knowledge among frontline staff
Results from external customer engagement surveys indicate continued improvement in service levels
8. Implement the Group IT Transformation
Roll-out of IT transformation programme on track for FY2012 (e.g. delivery of Branch Front End and Cash Management System)
Our progress as at December 2011….
6
The 12-month priorities we set when we announced our FY2010/2011 results
9. Complete infrastructure & framework across multiple products & countries
Establishment of international client coverage team, including wholesale banking product heads operating in Singapore, Indonesia, Hong Kong & Philippines
Planning of regional product initiatives (credit cards, wealth management, auto finance, stock broking and money market express.
10. Gear-up for Basel III requirement
Core equity ratio as at December 2011 at 9.13% (Group), assuming 85% DRP reinvestment rate
Mechanisms to manage capital base including placements, divestments and ESOS schemes.
11. Brand refresh for the Group
Completed Brand refresh for Maybank Group Continue to embed the Maybank brand across
business including Maybank KE and BII.
Our progress as at December 2011….
7
Headline KPIs Target 6-Month FP11 achievements
Return on Equity 16% 16.2%*
Loans and Debt Securities Growth 12% 16.3%*
Other targets Target 6-Month FP11 achievements
Group Loans Growth 12% 16.2%*
• Malaysia 12% 10.0%*
• Singapore 8% 23.7%*
• BII 24% 31.2%*
Group Deposits Growth 14% 22.5%*
Risk Weighted Capital Ratio (RWCR) > 12% 16.4%
Key Performance Indicators for 6-Month FP11
Note: Loans growth for Singapore and BII are in their local currencies
* Annualised growth
8
Investor Presentation
Executive Summary
Financial Performance
Business Review
Country Review
Economic Update and Prospects
Financial Results: 6-Month Financial Period ended 31 December 2011
9
2Q FP11 PATAMI rose 15.2% YoY to RM1.30 billion
*net of insurance claims
2Q FP11 1Q FP11 2Q FY11
31 Dec 11 30 Sep 11 31 Dec 10
Net interest income 2,152.7 1,873.6 14.9% 1,813.2 18.7%
Net Fund based income (Islamic Banking) 427.0 438.5 -2.6% 329.6 29.5%
Total net fund based income 2,579.7 2,312.1 11.6% 2,142.9 20.4%
Net income from insurance business* 322.3 96.5 234.0% 41.0 685.5%
Non-interest income 1,151.5 1,222.7 -5.8% 1,034.9 11.3%
Fee based income (Islamic Banking) 64.7 77.8 -16.8% 63.2 2.3%
Total fee-based income 1,538.5 1,397.0 10.1% 1,139.2 35.1%
Net income 4,118.2 3,709.1 11.0% 3,282.1 25.5%
Overhead expenses (2,054.0) (1,887.9) 8.8% (1,634.1) 25.7%
Operating Profit before allowances for losses
on loans2,064.2 1,821.3 13.3% 1,648.0 25.3%
Allowance for losses on loans (230.3) (98.7) 133.3% (117.5) 96.0%
Impairment losses on securities, net (68.3) 1.0 -6804.8% (6.3) 983.6%
Operating Profit 1,765.6 1,723.5 2.4% 1,524.2 15.8%
Share of profits in associates 37.7 36.5 3.3% 37.8 -0.2%
Profit before taxation and zakat 1,803.4 1,760.0 2.5% 1,562.0 15.5%
Taxation & Zakat (432.9) (454.2) -4.7% (435.4) -0.6%
Minority Interest (73.8) (19.5) 279.0% (1.4) 5224.0%
Profit after Tax and Minority Interest
(PATAMI)1,296.7 1,286.4 0.8% 1,125.2 15.2%
EPS (sen) 17.22 17.20 0.1% 15.72 9.5%
Quarter
QoQ
Change
YoY
Change
RM million
10
FP11 PATAMI rose 20.0% YoY to RM2.58 billion
*net of insurance claims
6-Month FP11 6-Month FY11
31 Dec 11 31 Dec 10
Net interest income 4,026.3 3,587.8 12.2%
Net Fund based income (Islamic Banking) 865.5 623.8 38.7%
Total net fund based income 4,891.8 4,211.6 16.2%
Net income from insurance business* 418.8 127.8 227.8%
Non-interest income 2,374.2 1,989.2 19.4%
Fee based income (Islamic Banking) 142.5 107.2 32.9%
Total fee-based income 2,935.5 2,224.2 32.0%
Net income 7,827.3 6,435.8 21.6%
Overhead expenses (3,941.8) (3,136.1) 25.7%
Operating Profit before allowances for
losses on loans3,885.5 3,299.7 17.8%
Allowance for losses on loans (329.1) (382.2) -13.9%
Impairment losses on securities, net (67.2) (20.2) 232.5%
Operating Profit 3,489.2 2,897.2 20.4%
Share of profits in associates 74.2 69.2 7.3%
Profit before taxation and zakat 3,563.4 2,966.4 20.1%
Taxation & Zakat (887.1) (786.1) 12.8%
Minority Interest (93.3) (26.9) 246.5%
Profit after Tax and Minority Interest
(PATAMI)2,583.1 2,153.4 20.0%
EPS (sen) 34.42 30.25 13.8%
6 Months
YoY
Change
RM million
11
Strong Balance Sheet: Total Assets grew 19.1% annualised, LDR improved to 87.5%
RM billion Dec 11 Jun 11Annualised
GrowthDec 10
YoY
Growth
Cash and short-term funds 49.1 38.8 53.0% 24.6 99.5%
Deposits with financial institutions 6.5 10.3 -74.6% 12.4 -47.8%
Securities purchased under resale agreements 1.4 - - - -
Securities portfolio 68.1 61.0 23.0% 61.9 10.0%
Loans, advances and financing 274.4 254.0 16.1% 219.4 25.1%
Life, general takaful and family takaful fund assets 19.9 19.2 7.4% 18.6 6.7%
Other assets 32.0 28.7 23.1% 20.7 54.4%
Total Assets 451.3 412.0 19.1% 357.6 26.2%
Deposits from customers 313.7 282.0 22.5% 248.1 26.4%
Deposits and placements of banks and FI 36.8 33.3 20.8% 28.8 27.4%
Borrowings 7.2 5.4 63.8% 3.2 127.7%
Subordinated debts 14.2 10.8 62.2% 7.0 101.6%
Capital Securities 6.1 6.1 -0.2% 6.0 1.5%
Insurance & Takaful liabilities & policyholders' funds 19.9 19.2 7.4% 18.6 6.7%
Other liabilities 18.8 22.6 -34.1% 16.1 16.6%
Total Liabilities 416.6 379.5 19.6% 327.9 27.0%
Shareholders Funds 33.4 31.5 12.6% 28.9 15.6%
Non-controlling interest 1.2 1.0 44.0% 0.8 61.1%
Total Liabilities & Equity 451.3 412.0 19.1% 357.6 26.2%
Loan-to-deposit Ratio 87.5% 90.1% 88.4%
12
RM billion Dec 11 Jun 11Annualised
GrowthDec 10
YoY
Growth
Community Financial Services 120.7 112.5 14.4% 106.1 13.7%
Consumer 94.9 87.9 15.9% 81.2 16.8%
Total Mortgage 42.1 38.6 18.1% 36.2 16.3%
Auto Finance 27.7 26.0 12.8% 24.3 13.9%
Credit Cards 5.3 4.9 17.6% 4.4 21.7%
Unit Trust 18.5 17.1 16.3% 14.7 25.6%
Other Retail Loans 1.3 1.3 2.7% 1.6 -21.7%
Business Banking + SME 25.8 24.7 9.1% 24.9 3.5%
GWB (Corporate) (Malaysia) 57.7 57.4 1.2% 45.9 25.9%
Total Domestic 178.6 170.1 10.0% 152.2 17.4%
International 102.2 89.4 28.7% 76.3 34.0%
Singapore (SGD'bn) 24.7 22.1 23.7% 19.1 29.3%
BII (Rupiah'tril) 67.2 58.1 31.2% 53.7 25.0%
Others 18.4 14.7 49.7% 12.4 48.6%
Investment Banking 1.9 2.0 -7.5% 0.2 1138.7%
Gross Loans 282.8 261.5 16.2% 228.7 23.7%
Gross loans grew 16.2% annualised (23.7% YoY), driven by growth in BII of 31.2%
(25.0% YoY) and Singapore 23.7% (29.3% YoY)
* Including Islamic loans sold to Cagamas and excludes unwinding of interest
13
Deposits grew 22.5% annualised (26.4% YoY), driven mainly by growth in Singapore of
33.3% (21.5% YoY) and Malaysia 22.3% (28.4% YoY)
89.2% 88.8% 88.9%
87.7%
82.6%
Jun 09 Jun 10 Dec 10 Jun 11 Dec 11
86.3%
81.2%
87.5%
96.4%
92.5%
Jun 09 Jun 10 Dec 10 Jun 11 Dec 11
80.9%
91.3% 90.7%88.1%
93.9%
Jun 09 Jun 10 Dec 10 Jun 11 Dec 11
87.4%86.8%
88.4%
90.1%
87.5%
Jun 09 Jun 10 Dec 10 Jun 11 Dec 11
RM bilAnnualised
Growth
YoY
GrowthSGD bil
Annualised
Growth
YoY
GrowthRupiah tril
Annualised
Growth
YoY
GrowthRM bil
Annualised
Growth
YoY
Growth
Savings Deposits 32.9 9.8% 11.6% 2.9 12.2% 10.1% 17.6 41.0% 28.1% 47.0 13.3% 14.0%
Current Accounts 47.5 3.4% 14.5% 2.8 25.3% 19.7% 12.4 5.2% 21.4% 58.4 1.7% 13.8%
Fixed Deposits 103.2 48.1% 41.0% 20.2 36.8% 23.0% 40.4 6.5% 21.7% 181.3 37.7% 33.0%
Others 25.2 -10.4% 36.4% 0.5 83.7% 52.3% - - - 26.5 -7.8% 37.3%
Total Deposits 208.8 22.3% 28.4% 26.5 33.3% 21.5% 70.4 14.0% 23.2% 313.7 22.5% 26.4%
Low cost funds (CASA)
LD Ratio
Malaysia Singapore BII Group
33.6%
87.5%
38.4%
82.6%
21.8%
92.5%
42.6%
93.9%
14
264.7
117.5
72.247.7
98.7
230.3
382.2
329.1
1Q FY11 2Q FY11 3Q FY11 4Q FY11 1Q FP11 2Q FP11 6-Month FY11
6-Month FP11
Asset Quality improved with Net Impaired Loan ratio declining to 1.86%
+96.0% YoY
+133.3% QoQ
Net Impaired Loan RatioAllowance for losses on loans
1 Jul 10
2.83%
2.99%
2.74%
2.39%
2.25%2.18%
1.86%
Day 1 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
-13.9% YoY
15
1,989
1,230
289
24
357
90 128 107
2,374
1,567
342
16
219 230
419
143
Total non-interest income
Commission, service charges and fees
Investment & Trading Income
Unrealised gain on securities & derivatives#
Foreign Exchange profit
Other Income Net income from Insurance Business
Fee income from Islamic Operations
6 Months FY11 6 Months FP11
Group Non-Interest Income increased 32% YoY to RM2.94 billion. Excluding Kim Eng &
surplus transfers for the life fund, it totaled RM2.66 bil - a 19.6% YoY increase
+27.4%
+ 32.9%+18.1% -31.1% +227.8%+156.0%
RM
mill
ion
+19.4%
ended 31 Dec 2011ended 31 Dec 2010
2,085 1,318 323 59 217 169 406 143
Excluding Kim Eng
+4.8% +7.1% +11.5% -151.1% +88.6% +217.9% +32.9%
Includes net income from insurance business & fee income from Islamic operations# Interest rate derivatives
-38.6%
Excluding insurance surplus transfer & new takaful framework implementation
130
+1.6%
-39.1%
16
Overheads grew 25.7% YoY due to KE consolidation & higher personnel costs – trending
CIR slightly higher to 49.8% from 48.1%. Excluding KE, overheads grew 13.8% YoY.
838 1,025 1,072
1,671
2,097 122
132 141
233
273
124 97
143
211
240
550
634 698
1,021
1,332
2Q FY11 1Q FP11 2Q FP11 6 Months FY11
6 Months FP11
Personnel costs
IT Expenses
Marketing Expenses
Admin, general expenses & fees & brokerage
RM
mill
ion
3,136
1,634
2,0541,887
3,941
+25.7% YoY
+8.8% QoQ
+25.7% YoY
With KE Without KE
QoQ YoY YoY YoY
Personnel costs 4.5% 27.8% 25.5% 15.2%
IT Expenses 7.0% 15.4% 16.9% 8.9%
Marketing Expenses 47.0% 15.6% 13.9% 10.3%
Admin, general expenses
& fees & brokerage10.2% 27.0% 30.5% 13.3%
Total 8.8% 25.7% 25.7% 13.8%
6 Months FP112Q FP11
Overhead Expenses
17
13.45%14.23% 14.37%
14.73%
15.54% 15.68%
31 Dec 11 31 Dec 11 31 Dec 11
13.15% 13.04% 13.12%# 13.19%
13.62% 13.19% 13.12%(3)13.38%
31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11
8.53% 9.13% 9.23%
10.95%11.55% 11.65%
15.66%16.26% 16.37%
31 Dec 11 31 Dec 11 31 Dec 11
8.73% 8.55% 8.77% 8.22%
11.80% 11.60% 11.68%10.68%
14.16% 14.12%15.20%
14.71%
31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11
Capital Adequacy remained strong with DRP and RWA optimisation
Adjusted for dividend payment and reinvestment made under
the Dividend Reinvestment Plan (DRP)
Full electable
portion paid
in cash
Full electable
portion
reinvested
Assuming 85%
reinvestment rate
Core Equity Ratio* Core Capital Ratio Risk Weighted Capital Ratio
Core Equity Ratio* Core Capital Ratio & Risk Weighted Capital Ratio
Note:
* Core Equity Ratio computation is based on phase-in / transitional arrangements announced by BNM & BCBS# Core Equity Ratio is capped at Core Capital Ratio & Risk Weighted Capital Ratio
18
Consistently rewarding shareholders with high dividend payout ratio
29 26
11
28
29
18
8
44
32
36
FY07** FY08** FY09 FY10 FY11 FP11
Final
Interim
70.0%60.0% 61.0%
76.5% 74.9% 79.9%
Final dividend payout of 36 sen
Net dividend of 27 sen = 3 sen cash portion + 24 sen electable portion
Dividend Payout Ratio of 79.9% exceeds policy of 40% – 60%
* subject to Dividend Reinvestment Plan
** adjusted for 1:4 Bonus Issue in February 2008 and 9:20 Rights Issue at RM2.74 in March 2009
Gross Dividend (sen) and Payout Ratio (%)
*
*
* *
19
FP11 FY11 FY10 FY09
Net Interest Margin 2.53% 2.56% 2.80% 2.72%
Return on Equity 16.2% 15.2% 14.5% 12.8%
Fee to Income Ratio 37.6% 36.6% 33.4% 33.0%
Cost to Income# 49.8% 49.6% 47.3% 52.8%
Loan-to-Deposit Ratio 87.5% 90.1% 86.8% 87.4%
Asset Quality
Gross NPL or Impaired Loan Ratio 2.85% 3.20% 2.90% 3.46%
Net NPL or Impaired Loan Ratio 1.86% 2.25% 1.22% 1.64%
Loan Loss Coverage 86.9% 82.3% 124.5% 120.3%
Charge off rate (bps) 25 23 53 59
Capital Adequacy (Group)
Core Capital Ratio 11.55%^ 11.68%* 10.88%* 10.81%
Risk Weighted Capital Ratio 16.26%^ 15.20%* 14.49%* 14.81%
Maybank Group: Key Ratios
# Total cost excludes amortisation of intangibles for BII and Kim Eng
^ Assuming 85% DRP reinvestment rate
*
Pre-FRS 139Post-FRS 139
20
Investor Presentation
Executive Summary
Financial Performance
Business Review
Country Review
Economic Update and Prospects
Financial Results: 6-Month Financial Period ended 31 December 2011
21
2,966
1,432
439 659
62
818
91
3,563
1,689
596 602
52
977
386
Total Community Financial Services
Corporate Banking Global Markets Investment Banking
International Banking
Insurance, Takaful & Asset Management
6,436
2,985
594 812
144
2,139
295
7,827
3,386
806 790 550
2,438
595
Total Community Financial Services
Corporate Banking Global Markets Investment Banking
International Banking
Insurance, Takaful & Asset Management
6 Months FY11 6 Months FP11
+7.8%
+18.0%
+35.7% +19.4%
+20.1%
+323.1%
+38.4%
+101.6%+35.7% +281.2% +14.0%-2.7%
+13.4%
+21.6%
Revenue and PBT growth across most sectorsR
even
ue
(RM
mill
ion
)P
rofi
t b
efo
re t
ax (
RM
mill
ion
)
Global Wholesale Banking (GWB)
Global Wholesale Banking (GWB)
Note: Head Office & Others: Revenue and PBT : -RM534.3m (6 Months FY11) vs. –RM738.7m (6 Months FP11)
-8.6% -14.8%
ended 31 Dec 2011ended 31 Dec 2010
(Inc. Kim Eng)
(Inc. Kim Eng)
22
2,116
642 182
475 137
759 251
2,793
765 232
478 425 839 560
Total# Community Financial Services
Corporate Banking Global Markets Investment Banking
International Banking
Insurance, Takaful & Asset
Management^
4,319
2,343
413 337 8 1,381
43
5,034
2,621
575 312 125
1,600
35
Total# Community Financial Services
Corporate Banking Global Markets Investment Banking
International Banking
Insurance, Takaful & Asset Management
6 Months FY11 6 Months FP11
Revenue recorded double digit growth across most sectors
Net Fund Based Income (including Islamic Banking Income) rose 16.6%
Non-Interest Income grew by 19.4%
+16.6%
+11.9%
+39.3% +15.9%
+19.4%
+19.2% +0.6% +210.9%+10.5%
+122.7%
Global Wholesale Banking (GWB) +43.0%
Global Wholesale Banking (GWB) +33.6%
+1,545.2%-18.0%-7.4%
+27.5%
ended 31 Dec 2011ended 31 Dec 2010
RM
mill
ion
RM
mill
ion
# Includes expenditures of Head Office & Others of RM505 million for 6 Months FP11 and RM329 million for 6 Months FY11^ Includes net income from insurance business of RM419 million for 6 months FP11 and RM128 million for 6 Months FY11
# Includes expenditures of Head Office & Others of RM234 million for 6 Months FP11 and RM204 million for 6 Months FY11
23
63%
22%
8%7%
65%
21%
8%6%
RM7.83b
68%12%16%4%Malaysia Singapore Indonesia Others
Revenue and PBT by geography
RM3.56b
Revenue Profit Before Tax6-Month FP11
6-Month FY11
International:36%
International:33%
International:27%
International:27%
RM6.44b RM2.97b
Gross loans
RM282.8b*Dec 2011
RM261.5b*June 2011
International:35%
International:37%
(July 10 – Dec 10)
(July 11 – Dec 11)
67%
11%
16%
6%
* Including Islamic loans sold to Cagamas and
excludes unwinding of interest
73%
14%
3%10%
73%
16%
5%6%
64%
16%
15%
5%
24
31.7 33.6 36.4
4.5 5.05.7
Dec 10 Jun 11 Dec 11
Housing loans Shophouse loans
42.138.636.2
Strong growth despite intense competition Asset quality continued to improve
Market share increasing Strong Growth in Mortgage Approval*
+18.1% annualised
Community Financial Services: Mortgage grew 18.1% with strong growth in approvals
+16.3% YoY4.5%
3.1%
2.2%
Dec 10 Jun 11 Dec 11
Impaired loan ratio - Mortgage
13.0%12.9% 12.9%
13.0%13.1%
13.2%
Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
Total Mortgage Market Share
+51.1% YoY
16.815.1
22.8
Dec 09 Dec 10 Dec 11
Mortgage Approval
* Based on new extraction rule
RM
bill
ion
RM
bill
ion
25
0.7%0.5% 0.5%
18.4%18.8%
19.4%
0.0%
0.5%
1.0%
1.5%
2.0%
17.0%
17.5%
18.0%
18.5%
19.0%
19.5%
20.0%
Dec 10 Jun 11 Dec 11
Impaired loan ratio - AutoHire Purchase Market Share
Community Financial Services: Auto Finance improved in volume
and market share
Auto Finance grew 14.2% YoY in Dec 11
+13.3% annualised
Asset quality remained stable with increasing market share
Non-national cars form 65% of total Auto Finance loans New cars form 87% of total Auto Finance loans
23.825.5
27.2
Dec 10 Jun 11 Dec 11
+14.2% YoY
35%
65%
National Cars
Non-national cars
13%
87%
Used cars
New cars
RM
bill
ion
Auto Finance Market Share
26
Community Financial Services: Cards continued to grow above market growth
Cards receivables Card base (‘000)
• Card base excludes Debit cards• Merchant and Billings consist of transactions done through
Credit, Charge and Debit cards
• Industry figures for cards includes commercial banks and non-FI players
Cards Market Share Cards performance outperforming industry
4.384.78
5.20
Dec 10 Jun 11* Dec 11*
+17.7% annualised
+18.7% YoY
1,410 1,474 1,487
Dec 10 Jun 11 Dec 11
+1.8% annualised
+5.5% YoY
Dec 11 Dec 10
Cardbase 17.9% 16.3%
Billings 24.3% 22.5%
Receivables 15.3% 14.0%
Merchant Sales 30.4% 29.3%
YoY Maybank Industry*
Cardbase 5.5% -4.0%
Billings 21.5% 12.5%
Receivables 18.7% 9.0%
Merchant Sales 16.5% 12.0%
*Based on new market segmentation effective June 11 onwards
RM
bill
ion
27
17.2%16.4%
15.5%14.9%
15.5%
16.5%17.0%
17.4%
19.2%
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
57.860.4
67.9
41.247.3
50.7
Sep 10 Dec 10 Mar 11 Jun 11* Sep 11* Dec 11*
24.2 25.3 25.0 24.7 24.6 25.8
Sep 10 Dec 10 Mar 11 Jun 11* Sep 11* Dec 11*
+46.3% annualised+9.1%
annualised
Business Banking and SME: Deposits grew at 46.3% annualised
Loans improved by 9.1% annualised Strong deposits growth at 46.3% annualised
Business Banking and SME NPL remained stableSME loans market share improving(based on Bank Negara definition*)
RM
bill
ion
RM
bill
ion
Post FRS139Pre-FRS139
*Figures are based on new market segmentation effective June 11
*SME includes loans under GWB (Corporate) ); Classification by Loan Size
11.5% 11.4%10.2%
17.1% 16.2%14.9%
13.0% 13.0%11.8%
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
*Figures are based on new market segmentation effective June 11
28
12.5
18.1
26.8
11.6
18.5
27.7
11.2
18.9
27.6
Trade Finance
Short Term Revolving Credit &
Overdraft
Term Loans
Dec 11
Sep 11
Jun 11
Global Wholesale Banking: Loans growth driven by Term Loans and STRC &
Overdraft
+6.1%
+8.8%
-20.5%
Total GWB loans recorded 1.2% annualised growth Strong position in terms of Trade Finance Market Share
Total GWB loans grew 1.2% to RM57.7 billion as at 31 Dec 2011.
Corporate banking: Asset Quality remained stable
Post FRS139Pre-FRS139
RM
bill
ion
22.5% 22.6%23.3%
24.5%
25.6%25.1%
26.9%
Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
1.3% 1.2%1.5%
4.2%3.9%
3.4% 3.4% 3.5% 3.7%
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
29
28.8
26.0
6.2
32.4
28.3
7.4
Government Securities
PDS / Corporate Bonds
Others
Dec 11
Jun 11
337.0 311.9
475.0 477.9
6-Month FY11 6-Month FP11
Net Interest Income Non Interest Income
+24.6%
+17.3%
+39.8%
-2.7%
Global Markets: Revenue growth supported by non interest income
Revenue performance
Group Securities Portfolio grew 23.0% annualised to RM68.1billion
Credit Rating for Private Debt Securities in Malaysia
PBT fell 8.6% attributed to lower net interest income and higher impairment losses on securities
812.0 789.8
+0.6%
-7.4%RM
mill
ion
RM
mill
ion
-8.6%658.9
602.1
6-Month FY11 6-Month FP11
AAA47.0%
-AA to AA25.4%
A and below27.6%
AAA
-AA to AA
A and below
30
239.8
216.7
214.9
322.8
190.419.4
4.2
FY08
FY09
FY10
FY11
6M FP11
30
Maybank Kim Eng reported a total income of RM510.8 million
with Malaysia contributing 41% of the total income
Equity brokerage league table by country
Total Income – Maybank Kim Eng
RM
million
6-Month FP11 Total Income for Malaysia increased
35% YoY
RM
million
6-Month FP11 Fee-based Income Segmentation
209.8
64.3
145.3
17.2 9.4
64.8
Malaysia Singapore Thailand Indonesia Hong Kong Others
Rank Market ShareTrading Value
(RM million)
Philippines 1 9.3% 19,252
Thailand 1 11.9% 149,357
Indonesia 5 4.7% 40,455
Malaysia 5 6.0% 55,271
Singapore 5* 7.4% 124,285
Vietnam 6 3.6% 2,799
Hong Kong Tier 2 0.2% 32,717
January - December 2011
Country
* Rank is estimated based on market share
0.0 500.0
FY08
Fee based income
Fund based income
Other Income
31 31
Recent Notable Deals
We utilised our new regional franchise to distribute the IPO transactions both domestically and regionally
Sources:
1 Bloomberg
2 Bursa Malaysia
Eversendai Corporation Berhad
IPO
Sole Adviser, Underwriter and
Bookrunner
RM392,300,000
July 2011
Pavilion Real Estate Investment
Trust’s (REIT)
IPO
Joint Principal Adviser, Joint Global
Co-ordinator, Joint Bookrunner,
Underwriter
RM710,300,000
December 2011
Weiye Holdings Limited
RTO
Financial Advisor
SGD600,000,000
August 2011
Titan Chemicals
Mandatory General Offer made
by Honam Petrochemical
Corporation
Advisor
RM4,060,000
October 2011
Malayan Banking Berhad
Ringgit Malaysia Subordinated
Notes Programme
Principal Adviser, Lead
Arranger, Lead Manager
Up to RM3,000,000,000
August 2011
YTL Power International Berhad
Medium Term Notes
Programme
Joint Lead Arranger, Joint
Lead Manager
Up to RM5,000,000,000
August 2011
DRB-HICOM Berhad
Islamic Medium Term
Notes Programme
Principal Adviser, Lead
Arranger, Lead Manager
Up to RM1,800,000,000
November 2011
PT Bank Internasional Indonesia TBK
Fixed Rate Senior Unsecured and
Subordinated Bond Programme
Joint Lead Managers and Bookrunners
IDR6,000,000,000,000
December 2011
Maybank IB’s (Malaysia) Industry Position & Market Share
(July – December 2011)
IPO
Joint Principal Adviser, Joint Global
Co-ordinator, Joint Bookrunner,
Joint Managing Underwriter
RM2,662,000,000
July 2011
Bumi Armada Berhad Maybank IB Industry Rank
by Value
Total Value
(RM billion)
Deals /
Issues Market Share
M&A1 2 27.5 29 34.6%
Equity & Rights Offerings1 2 0.8 4 15.9%
Debt Markets -
Malaysia Domestic Bonds1 2 9.6 62 27.1%
Debt Markets -
Malaysian Ringgit Islamic
Bonds1
2 4.5 43 22.2%
Equity Brokerage2 4 26.3 n.a. 6.5%
32 32
Highlights of Post-Merger Integration
Estimated
Timing 6 Weeks 6 Months 18 Months
III. Execute Integration PlansII. Conduct Integration PlanningI. Establish Merger
Framework
Phase I Phase II Phase IIIActivities
involved
CompletedKick-started on
1st Jan 2012
The merger of the two entities is planned to take place over a period of 2 years
1. Finalised scope and objectives of PMI
workstreams
2. Completed baselining for all
countries
3. Analysed and defined Target
Operating Model for combined
organisation
4. Revealed new organisation structure
and leadership team
5. Rolled out regional internal
communications channels
6. Executed quick wins
7. Completed 5-year combined business
plan, financial projections and
synergy targets
8. Launched new Maybank Kim Eng
brand
9. Developed business cases and
implementation plans for Phase III
Completed
1. Set directional strategy
2. Established and launched
communications
3. Mobilised and launched
Programme Management Office
(PMO)
4. Developed merger integration
guiding principles
5. Defined merger integration
organisation
6. Prepared high-level merger
integration roadmap
1. Roll out initiatives identified in
Phase II across all countries using a
strategic and systematic approach
to realise revenue and cost
synergies. These initiatives consist
of deployment of employee
programmes, rollout of regional
operating model, setting up of
regional IT framework, etc
2. Initiatives would eventually
transition to business as usual
We are here
33
14.6
6.7
8.6
2.5
7.3
15.8
6.8
12.3
3.7
8.8
16.6
8.1
13.2
4.7
9.7
AITAB Mortgage Financing
Others Term Financing
Others
Dec 10 Jun 11 Dec 11
+10%
+38% +14% +55% +20%
Group Islamic Banking business sustained strong financing and profit
growth
Maybank Islamic financing (21% annualised)Total Gross Financing = RM52.4 billion as at Dec 2011
Maybank Islamic: Improving key ratios
Consumer: +17% Business: +31%
Group Islamic Banking Income and PBT**
**Islamic Banking (includes Maybank Islamic and the Group’s other Islamic operations)# Includes financing sold to Cagamas
Dec 11 Jun 11 Dec 10
Financing to Deposit Ratio 83.7% 87.8% 97.9%
Islamic Financing to
Total Domestic Loans28.5% 27.4% 26.1%
Net Impaired Financing
Ratio1.03% 1.25% 1.90%
RM million 6-Month FP11 6-Month FY11YoY
Growth
Fund based income 865.5 623.8 38.7%
Fee based income 142.5 107.2 32.9%
Total income 1,008.0 731.1 37.9%
Allowance for losses on
financing(61.3) (11.7) 426.3%
Profit before tax and
zakat567.1 429.9 31.9%
RM
bill
ion
#
34
0 500 1000 1500 2000 2500
Total General
Fire
Motor
MAT
Misc
Total Life/Family
Single Premium
Regular Premium
Credit Premium
Group Premium
2Q FP11
2Q FY11
Etiqa: No. 1 Position in Life/Family (new business) and General Business
Overall Loss Ratio in line with Industry 60.0% (Etiqa) vs. 58.4% (Industry)
Combined Gross Premium
-2.6%
-10.0%
+187.2%
+20.2%
+7.4%
+35.5%
+31.5%
+20.5%
Total Assets (RM billion)
+8.7% annualised
Industry
58.4%
28.3%
74.7%
29.2%
40.8%+4.5%
+19.8%
+57.6%
Industry Source: Loss ratio for Malaysia’s Conventional business only with rolling 12 Months (Oct10 -Sep11).Company Source: Loss ratio for Malaysia’s Insurance and Takaful General business with rolling 12 Months (Jan11-Dec11)
+8.9 YoY
21.9
22.8
23.8
Dec 10 jun 11 Dec 11
20.0% 19.8%33.4% 30.7%
20.0%Fire
71.6%75.3%
72.8%70.4%
80.0%Motor
-5.4% -7.0% 3.8% 3.7%
197.7%MAT
38.2% 35.8% 32.4% 30.8% 29.0%
Dec10 Mar11 Jun11 Sept11 Dec11
Misc
14.6%
14.8%
15.1%
Great Eastern
Etiqa
Prudential
8.5%
9.2%
12.7%
MSIG & HLMT
Allianz
Etiqa
Life/Family (New Business) Market Share
General Market Share
No. 2 in Life/Family (New Business)
No. 1 in General
35
Investor Presentation
Executive Summary
Financial Performance
Business Review
Country Review
Economic Update and Prospects
Financial Results: 6-Month Financial Period ended 31 December 2011
36
3.8 4.6 5.32.0
2.8 3.22.82.7
3.52.12.6
2.84.35.0
5.33.33.3
3.3
0.80.8
1.2
Dec 10 Jun-11 Dec-11
Maybank Singapore loans growth outpaced industry‘s
Diversified Loan Portfolio
Asset Quality relatively stable
Revenue and PBT rose 16.4% and 10.4% YoY respectively
SGD
bill
ion
Consumer
Corporate
22.019.1
40%
60%
Singapore: PBT rose 10% boosted by higher fee income
24.6
23.8% annualised
0.77% 0.75%
0.63%0.58%
0.65%0.58%
0.46% 0.47%0.53%
0.09% 0.07% 0.09% 0.07%
0.25% 0.23%0.14% 0.18%
0.26%
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
Gross NPL ratio Net NPL ratio
23.4%
5.0%
8.6%
25.4%28.6%30.6%
-1.4%
11.4%14.8% 24.2%
Jun 08 Jun 09 Jun 10 Jun 11 Dec 11
Maybank Singapore Growth Industry Growth
6-Month FP11 6-Month FY11
31 Dec 11 31 Dec 10
Net fund based income 240.3 226.2 6.3%
Non interest income 144.2 104.2 38.4%
Total income 384.6 330.4 16.4%
Provision 8.6 (11.8) -172.8%
Profit before tax 218.1 197.5 10.4%
YoY
Growth SGD million
+92.8%
-3.8%
+12.6%
+17.4%
+58.7%
+25.1%
+33.0%
Consumer
Corporate
37
BII: Profit before tax grew 108.8% YoY
Income Statement
Rp Billion2H FY11
Jul - Dec 11
2H FY10
Jul - Dec 10
YoY
% Change
Interest income 4,196 3,365 24.7%
Interest expense (2,060) (1,556) 32.4%
Net interest income 2,136 1,809 18.1%
Non-interest income 1,113 1,055 5.5%
Gross Operating income 3,249 2,864 13.4%
Operating expenses (excluding prov.) (2,345) (2,069) 13.3%
Operating income before provision 904 795 13.7%
Provisions (453) (579) -21.8%
Profit before taxation and zakat 451 216 108.8%
Note: Based on numbers consolidated by Group
38
3.6 4.2 4.6 4.5 4.4
18.6 18.8 19.1 20.1 21
19.0 19.9 21.3 22.2 24.1
12.2 13.3 14.1 14.817.3
0.4 0.4 0.4 0.40.4
Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
Subsidiaries Consumer SMEC Corporate Syariah
5,645 6,332
790 985
FY10 FY11
Revenue
PBT
BII: Revenue grew 12% on the back of 31.2% consolidated annualised
loans growth
Loan-to-Deposit Ratio (Bank only)
Net Interest Margin
Loan composition (Rp trillion)
Group Revenue and PBT (Rp billion) – Full Year
53.7 56.7 59.5 62.0
+12%
+25%
FY10 : before adoption SFAS No.50/55; FY11 after Adoption SFAS No.50/55 FY10 : before adoption SFAS No.50/55; FY11 after Adoption SFAS No.50/55
Modified LDR (consolidated) as of Dec 11 : 81.2%Modified LDR (bank only) as of Dec 11 : 78.9%
Rp
bill
ion 5.87%
5.67%
5.43%5.28% 5.22%
Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
62.783.2% 85.4% 83.0% 85.8% 88.9%
Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
39
BII : Branches and touch points expansion on track
Asset QualityBranches and ATM
Cost to Income Ratio
Normalised Cost to Income Ratio (consolidated) as of Dec 11: 61.33%,
3.1%
2.6% 2.5% 2.5%
2.1%
1.7%1.4%
1.2%1.4%
1.1%
Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
Gross NPL Net NPL
255 260 274 295 327 337 344 346 351
787 806 844 893952 1009 1017
10881152
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
Branches ATM+CDM
66.52%
68.74%
Dec 10 Dec 11
Capital Adequacy : consolidated(credit, operational & market risk)
12.51%11.68%
13.06%12.33% 12.46%
Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
40
1,492 1,655
194
15
FY10 FY11
Revenue PBT
Revenue and PBT (Rp billion)
Asset Quality
WOM : 10.9% growth in revenue, whilst PBT impacted by provisions arising
from 2010 portfolio
Financing Amount(In IDR bn)
Unit Financing(In 000 unit)
+10.9%
-92.2%
Rp
bill
ion
3.01%3.28% 3.20% 3.04%
2.72%
1.00% 1.16%0.82%
1.26% 1.29%
Dec 10 Mar 11 Jun 11 Sep 11 Dec 11
Gross NPL Net NPL
486
136
622
501
73
574
New bikes Used bikes Total
FY10 FY11
6,146
1,180
7,326 6,476
594
7,070
New bikes Used bikes Total
FY10 FY11
41
273.2247.1
423.0
481.6
Dec 10 Dec 11
Gross Loans Customer Deposits
42.24
51.82
25.51 30.32
FY10 FY11
Revenue PBT
MCB Bank: Financial Highlights
Revenue and PBT
Loans and Deposits+13.8%
-9.5%
+22.7%
+18.9%
PK
R b
illio
ns
PK
R b
illio
n
Key Ratios FY11 FY10
Return on assets 5.11% 4.91%
Return on equity 25.35% 25.51%
Cost-to-income ratio 33.65% 31.00%
Loans to deposit ratio 51.42% 64.65%
NPL Ratio 10.75% 8.95%
Net Interest Margin 25.18% 23.64%
42
1,343.9
1,828.2
661.4
400.5
FY10 FY11
Revenue PBT
An Binh Bank: Financial Highlights
Revenue and PBT
Loans and Deposits
+0.2% -13.2%
-39.5%
+36.0%
VN
D b
illio
nV
ND
bill
ion
19,876.9 19,915.5
23,457.3
20,351.2
Dec 10 Dec 11
Loans Customer Deposits
Key Ratios FY11 FY10
Return on assets 1.89% 2.05%
Return on equity 6.40% 10.85%
Cost-to-income ratio 46.90% 43.82%
Loans to deposit ratio 97.86% 84.74%
NPL Ratio 2.79% 1.16%
Net Interest Margin 16.14% 12.55%
43
Investor Presentation
Executive Summary
Financial Performance
Business Review
Country Review
Economic Update and Prospects
Financial Results: 6-Month Financial Period ended 31 December 2011
44
Ringgit/USD: RM2.95 by end 2012
(25)
(20)
(15)
(10)
(5)
0
5
10
15
20
25
0
2
4
6
8
10
12
14
Jul-
02
Dec
-02
May
-03
Oct
-03
Mar
-04
Au
g-0
4
Jan
-05
Jun
-05
No
v-0
5
Ap
r-0
6
Sep
-06
Feb
-07
Jul-
07
Dec
-07
May
-08
Oct
-08
Mar
-09
Au
g-0
9
Jan
-10
Jun
-10
No
v-1
0
Ap
r-1
1
Sep
-11
Malaysia: Sustained growth for 2012
CPI and components (% YoY)
Inflation expected to moderate to 2.7% in 2012 (2011: 3.2%)
25bp hikes in OPR in Mar, May, July 10 and May 11
Food & Non-Alcoholic Beverages
Utilities, Housing & Other Fuels
Transport (RHS)
OPR to remain unchanged at 3% until end of 2012
December CPI: +3.0% YoY
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Jan
-07
May
-07
Sep
-07
Jan
-08
May
-08
Sep
-08
Jan
-09
May
-09
Sep
-09
Jan
-10
May
-10
Sep
-10
Jan
-11
May
-11
Sep
-11
Jan
-12
OPR SRR
Growth to be moderate at 3.5% - 4.0% in 2012 (2011: 5.1%)
Quarterly GDP and annual growth rateQ4 GDP: +5.2% YoY
(9)
(6)
(3)
0
3
6
9
12
90
100
110
120
130
140
150
160
1Q
07
2Q
07
3Q
07
4Q
07
1Q
08
2Q
08
3Q
08
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
RMb % YoY (RHS) % QoQ (RHS)
Ringgit Malaysia per USDRM3.03 per USD
as at Feb 21
2.903.003.103.203.303.403.503.603.703.803.90
Sep
-05
Dec
-05
Mar
-06
Jun
-06
Sep
-06
Dec
-06
Mar
-07
Jun
-07
Sep
-07
Dec
-07
Mar
-08
Jun
-08
Sep
-08
Dec
-08
Mar
-09
Jun
-09
Sep
-09
Dec
-09
Mar
-10
Jun
-10
Sep
-10
Dec
-10
Mar
-11
Jun
-11
Sep
-11
Dec
-11
45
Malaysia: Banking Sector
Total Loans grew 13.6% YoY for 2011
RM
bill
ion
Total Deposits grew 14.3% YoY for 2011
RM
bill
ion
%
Capital Adequacy remains strong
RM
bill
ion
Gross NPL RM26.8b, Net NPL ratio: 1.83%
14.9%
12.9%
2%
4%
6%
8%
10%
12%
14%
16%
18%
550
600
650
700
750
800
850
900
950
1,000
Jan
-07
May
-07
Sep
-07
Jan
-08
May
-08
Sep
-08
Jan
-09
May
-09
Sep
-09
Jan
-10
May
-10
Sep
-10
Jan
-11
May
-11
Sep
-11
Total Loans Total Loans YoY Growth
Household YoY Growth Business YoY Growth
0%
5%
10%
15%
20%
25%
750
800
850
900
950
1000
1050
1100
1150
1200
1250
Jan
-07
May
-07
Sep
-07
Jan
-08
May
-08
Sep
-08
Jan
-09
May
-09
Sep
-09
Jan
-10
May
-10
Sep
-10
Jan
-11
May
-11
Sep
-11
Total Deposits Total Deposits YoY Growth
7
8
9
10
11
12
13
14
15
16
Jan
-07
May
-07
Sep
-07
Jan
-08
May
-08
Sep
-08
Jan
-09
May
-09
Sep
-09
Jan
-10
May
-10
Sep
-10
Jan
-11
May
-11
Sep
-11
Risk Weighted Capital Ratio
Core Capital Ratio
1.5%
1.8%
2.0%
2.3%
2.5%
0
5
10
15
20
25
30
35
Jun
-10
Au
g-1
0
Oct
-10
Dec
-10
Feb
-11
Ap
r-1
1
Jun
-11
Au
g-1
1
Oct
-11
Dec
-11
Gross NPL - 3 Months (LHS) Net NPL (RHS)
46
Singapore: Growth to Moderate on Weak External Demand
Singapore’s economy is projected to expand by 1 – 3% in 2012 asuncertainties in the external environment – especially Europe andChina - continue to persist.
Inflation rate for 2012 forecast at 2.5% – 3.5%, with accommodationand private transportation costs likely to remain elevated in nearterm. Core inflation, which excludes these items, will range between1.5% – 2.0%.
Unemployment rate is expected to rise from 2.0% in 2011 to 2.2% –2.5% in 2012 as hiring slowed.
DBU Loan growth to ease to around 7% - 10% in 2012 (from +30% in2011), weighed by a slowdown in trade financing and property loans.
Net interest margin (NIM) to increase marginally to 1.8% - 2.1% in2012 (vs. 1.7% – 2.0% in 2011) as banks factor in higher riskpremiums in response to the uncertain economic climate.
3-month SIBOR to range between 0.35%-0.45% in 2012
-10%0%
10%20%30%40%50%
Dec-0
8
Feb
-09
Ap
r-09
Jun-0
9
Aug
-09
Oct-
09
Dec-0
9
Feb
-10
Ap
r-10
Jun-1
0
Aug
-10
Oct-
10
Dec-1
0
Feb
-11
Ap
r-11
Jun-1
1
Aug
-11
Oct-
11
Dec-1
1
Total Loans Business Loans Consumer Loans
Loan Growth expected to moderate to 7%-10% in 2012
0.30
0.40
0.50
0.60
0.70
Sep 0
9
Nov 0
9
Jan 1
0
Mar 10
May 1
0
Jul 1
0
Sep 1
0
Nov 1
0
Jan 1
1
Mar 11
May 1
1
Jul 1
1
Sep 1
1
Nov 1
1
Jan 1
2
3-Month SIBOR
(10)
(5)
0
5
10
15
20
50
55
60
65
70
75
80
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
Real GDP (S$B) % YoY Growth (RHS)
Real GDP growth for 2012 expected to be 1% – 3% (2011: 4.9% )
47
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Jan
-10
Jun
-10
No
v-1
0
Ap
r-1
1
Sep
-11
Loan Deposits
Indonesia: Continued growth
■ 2012 GDP growth expected to reach 6.3%, lower than the growth in 2011 at 6.46%. Growth in Q4 2011 recorded 6.6% expansion.
■ Despite higher inflation expectation this year, Bank Indonesia stays aggressive to stimulate economic growth by cutting key policy rate another 25bps to 5.75%.
■ USD/IDR will hover around 8,800 area due to strong capital inflow and better risk appetite assuming the eurozone debt crisis solved. Yet with some volatility that might appear, we expect rupiah will most likely be at the range 8,800 – 9,200
■ Loan growth is expected to grow 23% with the investment segment driving growth.
■ NPL is expected to reach 3.01% for 2012.
Bank’s loan growth: trending upwards Bank Indonesia cut BI rate to 5.75%
Real GDP Growth: Growing faster
25.2%
18.7%
4Q11 GDP: +6.6% YoY
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
No
v-0
8
May
-09
No
v-0
9
May
-10
No
v-1
0
May
-11
No
v-1
1
Inflation y-y BI rate(y-y %)
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Q1 2003
Q4 2003
Q3 2004
Q2 2005
Q1 2006
Q4 2006
Q3 2007
Q2 2008
Q1 2009
Q4 2009
Q3 2010
Q2 2011
(y-y)
48
As we progress into FY2012, we remain focused on our strategic objectives
Our Vision
Our Mission
Strategic Objectives
By 2015
To be a Regional Financial Services Leader
Humanising Financial Services Across Asia
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. Undisputed Insurance & Takaful Leader in Malaysia & Emerging
Regional Player
4. Truly regional organisation, with ~40% of pre-tax profit derived
from international operations by 2015
5. Global leader in Islamic Finance
Providing people with convenient access to financing
Having fair terms and pricing
Advising customers based on their needs
Being at the heart of community
49
To support our objectives, we have set out four key priorities for FY2012
Create and
Embed Right
Risk Culture
• Optimizing RWA & enhancing our capital management framework
• Continued improvement of our risk management processes
including TAT, reporting & resourcing frameworks
Significantly
raise Customer
Service quality
Drive Greater
Efficiency &
Effectiveness
• Continued focus on service improvement projects (e.g. reduce
Branch waiting times, problem resolutions, product knowledge,
frontliner capabilities, customer approval turnaround time)
• Continued improvement in our external and internal service
quality indicators
• Stay on course with our branch transformation program &
channel developments
• Delivering ITTP capabilities for Branch Front End, Enterprise
Service Business and Cash Management System
1
2
3
Create a truly
Regional
Financial
Services group
• Continue to develop regional infrastructure, governance & platform
• Unlock value from acquisitions: MIB-KE, BII
• Further roll out of regional business initiatives (e.g. credit card,
transaction banking, payments, global markets & treasury services, and
client coverage)
4
50
We seek to continue to strengthen our leadership in key market segments domestically,
whilst pursuing regional excellence
CFS
• Continue to achieve growth in all key segments , and sustain
leadership in domestic franchise
• Continue with branch transformation initiatives – modernization of
branches, branch resources optimization, roll-out light branch format
• Continue innovation in internet and mobile banking and expand
presence of Maybank2u to regional markets
• Capture greater SME business – straight through processing and simpler
products structure
GWB
• Grow regional investment banking & advisory capabilities and track
record
• Strengthen lead in regional retail equities business
• Increase revenue from institutional equities business & research
franchise
• Build trade finance capabilities to support trade flows between
China, HK and ASEAN
• Build regional cash management platform and operating model in
Singapore and Malaysia
• Build regional Global Markets & Treasury platform to strengthen our
risk management across the region
1
2
51
We also seek to increase value from domestic & intra-group business opportunities in our
core markets and beyond
Islamic Banking
• Maintain the domestic market leadership and profitability
• Explore growth in other key markets in Islamic banking business
regionally
• Strengthening the overall Shariah governance and risk
management
Singapore
Indonesia
• Maintain leadership in key products
• Increase deposits via flagship deposit products
• Increase eChannel usage & acquisition & Provide electronic platform
for cash management & trade finance corporate customers
• Continue to build a diversified loan portfolio across consumer, SME &
corporate business
• Build new capabilities in line with Group’s regional thrusts (e.g.
Synergy with Kim Eng, Wealth Management & Credit Card)
• Provide electronic platform for trade finance corporate customers
4
5
6
Insurance &
Takaful
• Maintaining a complete business portfolio in Life, Family,
General and General Takaful for retail and corporate, including:
• Private retirement scheme products
• Investment linked products
• Education products
• Pursue regional expansion & collaboration
3
52
IT Transformation Programme: Integrated five-year regional implementation
roadmap
House of Maybank
Launched
July 2010
Visioning workshops with
senior Maybank leadership
to prioritise strategic
initiatives and find our
Essential Advantage
Enterprise
Architecture
October 2010
Documented the target
state Enterprise
Architecture with views
including the business
architecture, functions,
key process design
Implementation
Roadmap
December 2010
Maybank-wide board
endorsed Transformation
Roadmap
Year 1 Projects and
Programme Directors
April 2011
Completed 20 (of 28)
projects ahead of schedule,
which represents approx 70%
of tactical projects for Year-
1.
BFE
Replacement
& CMS
Targeted to roll
out BFE and CMS
by second
quarter 2012
Full IT
Transformation
Deployment
In 2015
2013 - 2015
Targeted to roll out
subsequent
releases i.e.
Regional Credit
Cards, Core Banking
and Management
Information System
53
Key Performance Indicators (KPIs) for financial year ending 31 Dec 2012
Return on Equity 15.6%
Loans and Debt Securities Growth 15.2%
Group Loans Growth 16.2%
Malaysia 13.6%
Singapore 11.4%
BII 20.9%
Group Deposits Growth 11.6%
Headline KPIs
Other KPIs
54
Prospects
Global GDP growth is forecast at 3% in 2012 (2011 est.3.3%)
The Eurozone, US and China will all 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.
Strategy of responsible growth, equal focus on managing asset quality and liquidity through
sound risk management practices. Potential for higher credit costs,
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 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.
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 has two headline KPIs: Return on Equity of 15.6% on an enlarged
equity base (FP11:16.2% annualised) and growth in loans and debt securities of 15.2% (FP11:
16.3% annualised).
55
RM451 BILLION
RM2.6 BILLION (6-Month Period)
45,000 MAYBANKERS
2,200 OFFICES
21 MILLION CUSTOMERS
Total Assets
Profit After Tax
Human Capital
Global Network
Customers
WORLDWIDE
IN 17 COUNTRIES
51Years
Of Growth
Maybank: Thank you for your support
Public Ownership
60,000 SHAREHOLDERS> 10.5 MILLION UNITHOLDERS
56
Dato’ Khairussaleh Ramli
Group Chief Financial Officer
Contact: (6)03-2074 4288
Email: [email protected]
MALAYAN BANKING BERHAD
14th Floor, Menara Maybank
100, Jalan Tun Perak
50050 Kuala Lumpur, Malaysia
Tel : (6)03-2070 8833
www.maybank.com
Narita Naziree
Head, Group Strategy Management
Contact: (6)03-2074 8101
Email: [email protected]
Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the
information that may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or on behalf of the
Company as to the accuracy or completeness of the information or opinions contained in this presentation.
The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of
it form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.
The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or their contents or otherwise arising in
connection therewith.
Raja Indra Putra
Head, Investor Relations
Contact: (6)03-2074 8582
Email: [email protected]
Investor Relations Contact