56th annual general meeting - maybank.com€¦ · 07-04-2016 · programme (scmp), resulting in a...
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000
56th Annual General MeetingPresentation to Shareholders
by Datuk Abdul Farid Alias, Group President & CEO
7 April 2016
Humanising Financial Services
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To strengthen the Group’s revenue growth
To continue focus on productivity Group-wide
To deploy a capital efficient strategy
To continue with international market performance
To solidify our position in ASEAN for AEC opportunities
e.g. Qualified ASEAN bank
Group Strategic Priorities for FY2015
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Jan 1
5
Feb 1
5
Mar
15
Apr
15
May 1
5
Jun 1
5
Jul 15
Aug 1
5
Sep 1
5
Oct
15
Nov 1
5
Dec 1
5
2
Significant Change in Market Environment in 2015
35
40
45
50
55
60
65
70
75
Jan 1
5
Feb 1
5
Mar
15
Apr
15
May 1
5
Jun 1
5
Jul 15
Aug 1
5
Sep 1
5
Oct
15
Nov 1
5
Dec 1
5
5
7
9
11
13
15
17
19
Jan 1
5
Feb 1
5
Mar
15
Apr
15
May 1
5
Jun 1
5
Jul 15
Aug 1
5
Sep 1
5
Oct
15
Nov 1
5
Dec 1
5
Declining oil prices, weakening ringgit, higher market volatility and
rising credit default swap spreads
Brent Crude Oil (USD) MYR/USD
FBM KLCI Volatility Index (%) Malaysia CDS Spread (bps)
100
120
140
160
180
200
220240
260
Jan 1
5
Feb 1
5
Mar
15
Apr
15
May 1
5
Jun 1
5
Jul 15
Aug 1
5
Sep 1
5
Oct
15
Nov 1
5
Dec 1
5
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We mobilised our balance sheet management initiatives in 2H 2015 through:
More selective asset growth
Growing our liquidity position
Proactive management of asset quality
Continued focus on productivity
Maintaining strong capital position
Changing Risk Posture
We also revised our guidance for FY2015 to reflect the strategy above:
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As a result of our proactive balance sheet management, we were able to
meet most of our revised KPI targets for FY2015:
Our Performance in 2015
Key Performance IndicatorsFY2015
Guidance
FY2015
Achievement
Return on Equity 12.0% - 13.0% 12.2%
Group Loans Growth 8.0% - 9.0% 12.0%
• Malaysia 6.0% - 7.0% 5.3%
• Singapore 5.0% - 6.0% 6.0%
• Indonesia 10.0% - 13.0% 5.0%
Group Deposits Growth 10.0% - 11.0% 12.8%
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Summary Financial Performance for FY2015
Net fund based income rose as Group loans grew 12.0% and net
interest margin remained stable at 2.31% …
… while net fee based income increased due to higher net earned
premiums, forex gains and Islamic operations fee income …
… that was kept under control through Strategic Cost Management
Programme (SCMP), resulting in a positive JAW position …
… but performance was affected by higher loan loss provisions
and impairment in securities leading to a…
… net profit of RM6.8 billion, which was 1.8% higher than the
previous year.
EPS declined due to expanded capital base from the DRP.
Net Fund Based Income
RM14.5b, +15.3%
Net Fee Based Income
RM6.7b, +13.2%
Net Income
RM21.2b, +14.6%
Overhead Expenses
RM10.3b, +12.9%
Impairment Losses
RM2.0b, +327.5%
Net Profit
RM6.8b, +1.8%
Earnings per Share
72.0 sen, -2.9%
… resulting in net income growth outpacing growth in
overheads …
PPOP
RM11.0b, +16.3%… and enabling Pre-Provision Operating Profit to grow by 16.3%...
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Higher net fund based income of 15.3% due to:
Growing While Maintaining NIM
2.53 2.48
2.43
2.31 2.31
CY2011 FY2012 FY2013 FY2014 FY2015
Group NIM (%)
● Stable net interest margin (NIM)
of 2.31% through repricing of
loans
● Group loans growth of 12.0%
led by retail franchise growth
in home markets:
CFS Malaysia +8.2% YoY
CFS Singapore +36.6%* YoY
CFS Indonesia +9.9% YoY
* Loan growth post transfer of SGD2.2 billion from GB to CFS for
Business Banking segment. Normalised loan growth of 20.4%.
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439.6
495.8
Dec 14 Dec 15
Group deposit growth of 12.8% ahead of loan growth of 12.0% led to
improved Group Loan to Deposit ratio (LDR) of 91.5%
Group Liquidity Coverage Ratio of 148% as at end-2015
Conservative Management of Liquidity
RM
billion
91.8% 92.2% 94.2% 95.3% 91.5%
35.3% 35.4% 34.9% 35.3% 33.7%
Dec 14 Mar 15 Jun 15 Sep 15 Dec 15
LDR CASA
Group Gross Deposits Group LDR
+12.8%
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Cost Income Ratio (CIR) of 48.2% with positive JAW position as
income growth of 14.6% outpaced overheads growth of 12.9%
Managing discretionary spend as part of SCMP initiatives
Continuously maintained CIR below 50% over the last five years
Productivity Drive via SCMP
49.9
48.6
47.8
48.9
48.2
CY2011 FY2012 FY2013 FY2014 FY2015
Group CIR (%)
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999
1.52%
1.86%
Dec 14 Dec 15
Group Gross Impaired Loans (GIL) ratio rose to 1.86% attributed to
specific accounts in Malaysia and international markets
Asset Quality
Group
1.85%1.76%
Dec 14 Dec 15
0.23%0.45%
Dec 14 Dec 15
Malaysia Singapore
3.24%
4.15%
Dec 14 Dec 15
Indonesia
GIL Ratio
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Asset Quality for Malaysia
0.6%0.5%
1.2%
Dec 14 Dec 15 Industry
0.5% 0.5%
1.0%
Dec 14 Dec 15 Industry
0.7%0.8%
1.3%
Dec 14 Dec 15 Industry
Consumer
2.4%
2.0%
2.4%
Dec 14 Dec 15 Industry
Business
10.3% 10.0%
2.0%
Dec 14 Dec 15 Industry
1.4% 1.5%
2.0%
Dec 14 Dec 15 Industry
Mortgage Auto Finance Credit Cards
SME Business Banking Corporate Banking
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410.5
459.8
Dec 14 Dec 15
352.9 373.3
Dec 14 Dec 15
Total capital ratio of
17.49% and CET1 capital
ratio of 12.53% (after
proposed dividend and
assuming 85% dividend
reinvestment rate)
Strong Capital While Growing Responsibly
11.38% 12.53%
13.17% 14.22%
15.87%17.49%
Dec 14 Dec 15
Total Capital Ratio
Tier 1 Capital Ratio
CET 1 Capital Ratio
Managed Risk Weighted Assets growth
of 5.8% vs loan growth of 12.0%
Group Gross Loans
RM
billion
Total Group RWA
+5.8%
RM
billion
+12.0%
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The Banker Magazine
• Bank of the Year
PWM The Banker Global Private Banking Awards 2015
• Country Awards: “Best Domestic Private Bank in
Malaysia”
Euromoney Private Banking Awards 2015
• Best Private Banking Services Overall in Malaysia
(6th time)
CFS Malaysia
Customer Experience in Financial Services (CXFS) Asia
Awards 2015
• Winner: Best Use of Social Media
Maybank Indonesia
Markplus WOW Service Excellence Award 2015
• The Best Champion for Jabodetabek WOW Service –
Excellence for Conventional Banking (Buku III)
Maybank Singapore
Customer Satisfaction Index of Singapore (CSISG)
• No.1 in the annual Customer Satisfaction Index of
Singapore (score: 71.9)
Annual Islamic Finance News (IFN) Awards
• Best Takaful Provider
KLIFF Islamic Finance Awards 2015
• The Most Outstanding Takaful Company
Private Baking Takaful
Customer ExperienceGroup Awards
Maybank’s Awards & Recognition
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Remain focused on selective asset growth in line with capital
position
Manage liquidity effectively through high-quality liquid assets
Improve productivity and manage discretionary spend
Downside risks include further global macroeconomic headwinds
Credit cost expected to remain elevated
Priorities for 2016
2016 KPIs
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5-Year Transformation Journey concluded in FY2015
Undisputed No. 1 Retail Financial Service provider in Malaysia by 20151
Market share leader in Unit Trust, Total Deposits, Retail CASA and Internet Banking (subscriber base)
Leading ASEAN wholesale bank, eventually expanding further into
the Middle East, China and India
Top 4 in regional league tables for Investment Banking & Advisory, Debt Capital Market and M&A deals
Undisputed Insurance & Takaful leader in Malaysia and
emerging regional player
Malaysia’s market leader for General Insurance & Takaful, with presence in Singapore and the Philippines
International FY2015 PBT under 30% due to lack of attractive M&A opportunities. However, our
complete ASEAN footprint positions us to capture trade, capital, investment and wealth flows in Asia
Truly regional organisation, with ˜40% of pre-tax profit derived
from international operations by 2015
Global leader in Islamic Finance
Leading Islamic bank in ASEAN and one of the top 5 Islamic banks globally
2
3
4
5
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The AEC is expected to drive further
intra- & inter-regional trade activities,
including capital raising and transactions
Significant upside for Insurance
penetration in ASEAN
Islamic Banking is a differentiation
opportunity in an industry entrenched
with conventional banking solutions
1
2
3
4
Young population with 60% millennials –
the Digital Native generation
5
ASEAN population, with 660 million
people, swelling middle class, growing
SMEs
Maybank2020 Strategy: The Next 5 Years in ASEAN
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Strategic Objectives of Maybank2020
The Top ASEAN Community Bank
The Leading ASEAN Wholesale Bank Linking Asia
The Leading ASEAN Insurer
The Global Leader In Islamic Finance
Digital Bank Of Choice
By leveraging on our regional presence, banking expertise and ASEAN growth opportunities
By leveraging on our ASEAN leadership capabilities to deliver client solutions across Asia
By enhancing synergies between Maybank’s regional banking footprint and
Etiqa’s expertise in takaful & bancassurance
By continuing to deliver innovative client-centric universal financial solutions,
building on our global leadership position
By putting our customers’ preferences first and transforming to deliver next-generation
customer experience on mobile and digital platforms
1
2
3
4
5
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Looking Ahead
We remain resolved in managing challenges
Road ahead won’t be easy, but we always look
to do the “right things right”
Commitment to making the next five-year
transformation journey an impactful one
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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.
Humanising Financial Services
Dato’ Mohamed Rafique Merican
Group Chief Financial Officer
Contact: (6)03-2074 7878
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
Jeeva Arulampalam
Acting Head, Group Investor Relations
Contact: (6)03-2074 8346
Email: [email protected]
Investor Relations Contact