0www.maybank.com
Humanising Financial Services
Investor Presentation
Financial Results4Q FY2017 and Full Year FY2017 ended 31 December 2017
28 February 2018
1
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
2
Record net profit
of RM7.52 billion,
up 11.5% YoY
Maybank Group Full Year FY2017 OverviewNew net income high of RM23.27 billion with record net profit of RM7.52 billion
• Higher net income of 4.9% YoY as net fund based income grew 10.3% YoY on NIM
expansion of 9 bps to 2.36%
• Better NIM on improved Group CASA normalised growth of 7.2% YoY (Reported: 5.4%
YoY) and securities portfolio yield improvement.
• Operating profit growth of 14.0% YoY to RM9.88 billion supported by lower net
impairment losses of 32.7% YoY
• Return on Equity of 10.9%, within Group guidance of 10%-11%
• Normalised Group loan and deposit growth of 4.0% YoY respectively (Loan growth
reported: 1.7%, Deposit growth reported: 1.8%) supported by loan and CASA growth in
home markets. Growth guidance for Group loan and deposit was ~3% respectively
• Total Group RWA reduced 1.2% as credit RWA decreased 2.7% (vs loan growth of 1.7%)
1
• Healthy and stable liquidity risk indicators with Group LCR at 133.1%, Group LDR at
93.8%, Group LTF at 86.2% and Group LTFE at 75.7%
• Total capital and CET1 ratios at 18.80%* and 14.19%* respectively as at Dec 2017
• Attractive dividend yield of 5.6% with total dividend per share of 55 sen
Strong Liquidity
and Capital
Positions
3
Moderating asset
quality indicators
2 • Stable Group GIL ratio of 2.34% as at end Dec 2017 (Dec 2016: 2.28%), as GIL volume
growth formation slowed to 4.5% YoY (vs 29.2% YoY in 2016)
• Net credit charge off of 40 bps, as loan provisions reduced 30.8% YoY to RM1.96 billion
• Strong loan loss coverage (including regulatory reserve) of 95.3% (Dec 2016: 81.6%)
Note: *After proposed dividend and assumption of 85% reinvestment rate. Fully loaded Group CET1 capital ratio is at 14.01%.
3
• Group Wealth Management revenue grew 19.2% YoY, with assets under management (AUM) of RM278.2 billion
• Regional SME grew 8.3% YoY on its topline• Maybank remained No.1 in the Malaysia Net Promoter Score customer index
Maybank2020 - Strategic Objectives: Key FY2017 Achievements
The Leading
ASEAN Wholesale
Bank Linking
Asia
2 • Strengthened our lead as an ASEAN wholesale and investment bank, achieving: • 1st in Bloomberg’s Global Sukuk and ASEAN Loan Syndication league tables• 2nd in Bloomberg’s ASEAN Local Currency Bonds league table
• Malaysian market share leader in corporate lending, trade finance and corporate deposits• MKE was awarded Best Investment Bank in Malaysia by Global Finance and Euromoney
The Leading
ASEAN Insurer
3 • Recorded highest ever Profit Before Tax of RM1.0 billion in FY2017, up by 18.5% YoY• Maintained No.1 online insurance position with >70% market share• Improved motor claims approval TAT to under 30 minutes vs industry benchmark of 3 days• Regional business expansion with bancassurance business growth into the Philippines and
75% acquisition stake in Indonesia’s PT Asuransi Asoka Mas
The Global
Leader In Islamic
Finance
4 • No.1 Global Sukuk Lead Manager on Bloomberg’s Global Sukuk League Table• No.1 Lead Manager on Bloomberg’s Ringgit Malaysia Sukuk League Table• Joint lead arranger for one of the world’s largest green Sustainable & Responsible
Investment (SRI) Sukuk• Launched HouzKEY, the first rent-to-own scheme in Malaysia
Digital Bank of
Choice
5 • Awarded Best Digital Bank and Best Mobile App in Malaysia by World Finance Digital Banking Awards 2017, with over 4.6 million unique visitors monthly
• Launched new Maybank2u app in Malaysia with improved user-friendliness, biometric features (Face & Voice ID) as security authentication and Secure2u function
• Launched various first–to-market digital initiatives: Maybank QRPay, Alipay-enabled merchant terminals in Malaysia and Maybank2u Pay
The Top ASEAN
Community Bank
1
4
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
5
P&L Summary: FY2017Record net profit of RM7.52 billion on operating profit growth of 14.0% to RM9.88 billion
Note: Page 27 shows the quarterly trend of the P&L summary.
* From consolidated Group numbers, Insurance and Takaful accounts for 6.4% of net fund based income and 12.8% of net fee-based income
¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses
More
details on RM million FY2017 FY2016 YoY
s.24 Net fund based income * 16,627.7 15,074.4 10.3%
s.9/24/
29 Net fee based income * 6,640.7 7,098.8 (6.5%)
s.22/23 Net operating income 23,268.4 22,173.1 4.9%
s.10/30 Overhead expenses (11,357.1) (10,487.2) 8.3%
s.23 Pre-provisioning operating profit (PPOP) ¹ 11,911.3 11,686.0 1.9%
Net impairment losses (2,027.8) (3,015.0) (32.7)%
Operating profit 9,883.5 8,671.0 14.0%
s.22 Profit before taxation and zakat (PBT) 10,098.1 8,844.5 14.2%
Profit attributable to equity holders of the Bank (Net Profit) 7,520.5 6,743.0 11.5%
EPS - Basic (sen) 72.0 67.8 6.2%
6
2.43
2.31 2.31
2.27
2.36
FY2013 FY2014 FY2015 FY2016 FY2017
Net Fund Based Income: FY2017 (1/3)Strong net fund based income growth of 10.3% YoY supported by NIM improvement of 9 bps to 2.36%
Net Interest Margin (%)
5-Year Trend
7
20.7 22.1
18.0 18.5
Dec 16 Dec 17
Community Financial Services Global Banking
194.4 203.7
78.8 81.9
Dec 16 Dec 17
+2.6%
121.9 127.8
Dec 16 Dec 17
97.0 96.4
27.4 32.5
Dec 16 Dec 17
+18.6%
46.0 48.4
Dec 16 Dec 17
485.7 493.8
Dec 16 Dec 17
Net Fund Based Income: FY2017 (2/3)Loans growth across home markets supported by good CASA growth across the Group
272.0
38.9
124.7
RM
billion
SG
D b
illion
IDR
tri
llio
n
Gross Loans (YoY)
5.0% 4.3% 3.6% 1.7% (Reported)
RM
billion
Group Malaysia Singapore Indonesia
40.6
285.5 129.2
12.5 14.6
Dec 16 Dec 17
186.3 196.4
Dec 16 Dec 17
4.9%
RM
billion
RM
billion
SG
D b
illion
IDR
tri
llio
n
CASA (YoY)
+4.8%
5.4% (Reported) 16.6% 5.2%
+6.9%
(0.6)%
28.1% 31.6%40.5% 40.2%36.0% 37.3% 38.6% 39.8%CASA
Ratio:
Note:
• Industry loans growth for Malaysia is 4.1%, Singapore is 8.0% and Indonesia is 8.2%
• CASA ratio for Group and Malaysia includes investment accounts
• Refer to pages 31-33 for detailed information on loans and deposits growth by country and products.
4.0% (Normalised)
7.2% (Normalised)
+3.9%
8
459.4
485.7493.8
Dec 15 Dec 16 Dec 17
327.2 329.5320.7
11.312.9
14.4
34.937.2
40.1
Dec 15 Dec 16 Dec 17
Operational RWA
Market RWA
Credit RWA
Net Fund Based Income: FY2017 (3/3)Selective loan expansion managed in tandem with credit RWA
Group Gross Loans
RM
billion
Total Group RWA
+7.7%
RM
billion
+1.7%
+11.5%
(2.7)%
(1.2)%
379.6375.1
+5.7%
+6.6%
+14.4%
373.3
+0.7%
+1.7%
9
7,099 6,289
473
4,444
(4,108)
6,641 6,027
420
5,251
(5,057)
Total Other Operating Income Fee Income from IslamicOperations
Net Earned InsurancePremiums
Net Insurance Benefits& Claims Incurred, Net
Fee & CommissionExpenses and Life &
Takaful Fund Tax
FY2016
FY2017
RM
million
RM million FY2016 FY2017 YoY
Commission, service charges and fees 3,559 3,564 0.1%
Investment & Trading Income 1,363 1,057 (22.5)%
Unrealised gain/ (losses) on securities 70 143 >100%
Unrealised gain/ (losses) on derivatives (90) (125) 38.8%
Foreign Exchange Profit 620 559 (9.9)%
Other Income 767 830 8.3%
Net Fee Based Income: FY2017Lower net fee based income mainly from reduced investment and trading income
(6.5)% (4.2)% (11.4)% +18.2% +23.1%
10
Overheads: FY2017Overheads growth of 8.3% YoY; Group cost-to-income ratio of 48.7%, below threshold of 50%
RM million FY2017 FY2016 YoY
Personnel Costs 6,128.0 5,638.9 8.7%
Establishment Costs 1,980.9 1,887.7 4.9%
Marketing Expenses 515.1 522.1 (1.3)%
Administration & General Expenses 2,733.1 2,438.5 12.1%
Total 11,357.1 10,487.2 8.3%
% FY2017 FY2016 YoY
Total Cost to Income ¹ 48.7 47.1 1.6%
Group JAW Position (3.4)%
Note: Page 30 shows the quarterly trend of overheads.
¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng
11
615.7 542.5
830.3
386.5 199.8
2,832.7
1,959.1
4QFY2016
1QFY2017
2QFY2017
3QFY2017
4QFY2017
FY2016 FY2017
Allowances for losses on loans
72.0%71.2%
70.1%
71.7% 71.5%*
Loan loss coverage
Allowance for losses on loans
Asset QualityLower YoY loan provisions of 30.8% for FY2017 on slower impaired loan formation growth
RM
million
Note:
*Loan loss coverage including Regulatory Reserve is 95.3%
11,055 11,658 12,158 12,155 11,550
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
RM
million
0.0% QoQ 4.3% QoQ
Slower YoY growth in Group GIL volume
from a year ago
(5.0)% QoQ 5.4% QoQ
8,55511,055 11,550
Dec 15 Dec 16 Dec 17
RM
million
4.5% YoY 29.2% YoY
12
Asset Quality for Group and Home MarketsStabilising QoQ asset quality trends for Group and home markets
Group GIL Ratio Composition
GIL Ratio Components Dec 2017 Sep 2017 Jun 2017 Mar 2017 Dec 2016
Non Performing Loans (NPL) 1.80% 1.97% 1.79% 1.77% 1.64%
Restructured & Rescheduled (R&R) 0.27% 0.32% 0.37% 0.33% 0.39%
Performing Loans Impaired Due to Judgmental/
Obligatory Triggers (IPL)0.27% 0.21% 0.37% 0.30% 0.25%
GIL Ratio 2.34% 2.50% 2.53% 2.40% 2.28%
2.06% 2.13%
2.12%2.06% 1.91%
1.30%1.68%
2.29% 2.31% 2.36%
4.36% 4.55% 4.42% 4.47%
3.56%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
Malaysia Singapore Indonesia
GIL Ratio by Home Markets
13
Asset Quality by Line of BusinessBroadly stable QoQ asset quality trends across Malaysia and Singapore portfolios, with improvement in Indonesia
Mortgage Auto Finance Credit Cards
Retail SME Business Banking Corporate Banking
Consumer
Business
Note:
In Malaysia, industry GIL ratio for mortgage (purchase of residential property) is 1.0%, 1.0% for auto finance, and 1.2% for credit cards. In Singapore, industry GIL figure is only
available for mortgage, which was 0.4% as at December 2017.
In Indonesia, Business Banking includes Commercial, SME and Micro loans. Maybank Indonesia’s GIL ratios are mapped in accordance to its local regulatory reporting requirements
and does not include R&R.
0.57% 0.60% 0.60% 0.63% 0.61%
0.45%0.58% 0.60% 0.56% 0.56%
1.51% 1.76%2.22% 2.38% 2.14%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
2.00% 2.06%
2.05% 2.02% 2.01%1.70%
2.09%2.39%
2.18%
2.27%
1.57%
1.87%
2.18%
2.44%
2.27%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
0.51% 0.53% 0.53% 0.53% 0.50%
0.32% 0.34% 0.27% 0.23% 0.26%
1.32%1.23%
1.40% 1.44%
0.98%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
0.72% 0.77% 0.80% 0.78% 0.77%
2.26% 2.08% 1.95% 1.86% 1.75%
2.35% 2.48% 2.67%2.37%
1.73%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
11.92% 12.49% 12.50% 12.24% 12.05%
2.42% 2.66% 2.67% 2.80% 2.68%
1.77% 1.96% 1.93% 2.04% 2.23%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
Malaysia Singapore Indonesia
10.51% 10.30%11.32% 11.02%
7.84%
1.85% 1.93% 1.97% 1.92% 1.58%
1.89% 2.62% 4.06% 4.07% 4.14%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
14
42%
1%
40%
17%
Normal
Special Mention Account
Watchlist
GIL
30%
35%
7%
28%
Upstream
Supporting Upstream
Downstream
Supporting Downstream
85% comes
from
supporting
upstream
Commodities Exposure: 31 December 2017Maybank Group’s exposure to direct and indirect oil and gas borrowers as well as other commodities
Borrowers’ Status:
Segmental Exposure:
Direct & Indirect Oil & Gas:
Borrowers with O&G related exposure
Notes:
Supporting upstream includes services activities
incidental to crude oil and natural gas extraction
including surveying. This includes providers of
services/ activities related to O&G industry.
Oil & GasLoan
exposure
Maybank Group 3.54%
Malaysia 1.95%
Singapore 1.24%
Indonesia 0.18%
Others 0.17%
Group exposure of 3.54%
includes funded and non-
funded
Excluding non-funded,
exposure is 2.77%
Notes:
• Group exposure is for three home markets
Malaysia, Singapore and Indonesia, based on
Group gross loans as at end December 2017.
• Agriculture includes rubber, oil palm and
cocoa sectors
• Metals and mining includes coal, lignite,
peat, metal ores, tin, iron, steel and non-
ferrous metal sectors
AgricultureLoan
exposure
Maybank Group 1.74%
Malaysia 1.33%
Singapore 0.06%
Indonesia 0.35%
Metals & Mining
Maybank Group 1.22%
Malaysia 0.92%
Singapore 0.10%
Indonesia 0.19%
Other Sectors
15
151.9% 134.4% 145.6% 137.0% 133.1%
LCR
Borrowings, 5%
Capital Instruments,
3%
Customer Funding, 76%
FI Deposits, 6%
Equity, 11%
MYR, 32%
USD, 29%
JPY, 9%
IDR, 9%
SGD, 7%
HKD, 6%
Others, 8%
Liquidity Management: 31 December 2017 Maintained well-diversified funding sources and strong liquidity risk indicators
RM694.9
billionRM52.8
billion
Funding Breakdown
Note:
• Customer Funding comprises Deposits from Customers & Investment Accounts of Customers.
By maturity:
≤ 1 Year 29%
> 1 Year 71%
Borrowings and
Capital Instruments
by Currency
Note: 1) BNM’s minimum LCR requirement for 2017 is 80%
93.9%95.7%
93.8% 94.0% 93.8%
84.9%86.2% 85.5% 85.8% 86.2%
75.1% 75.9% 75.1% 75.4% 75.7%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
LDR LTF LTFE
2) LTF is gross loans divided by (deposits + borrowings +
subdebt) while LTFE’s denominator is (deposits +
borrowings + subdebt + equity + capital securities)
Liquidity Risk Indicators
16
13.99% 14.77% 14.19%
15.66% 16.46% 15.88%
19.29% 19.38% 18.80%
Dec 16 Dec 17 Dec 17
Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio
Group
Bank
Strong Capital Position: 31 December 2017Total capital and CET1 ratios (assuming 85% dividend reinvestment rate) at 18.80% and 14.19% respectively
Before proposed
dividend
After proposed
dividend,
assuming 85%
reinvestment rate2017 2018
Jan 2019
Onwards
Minimum Common Equity Tier
1 Capital4.5% 4.5% 4.5%
Minimum Tier 1 Capital 6.0% 6.0% 6.0%
Minimum Total Capital 8.0% 8.0% 8.0%
Capital Conservation Buffer
(Phase in)1.250% 1.875% 2.500%
Other Capital Buffers
D-SIB Buffer
Countercyclical Capital buffer
Regulatory Requirements
0% - 2.5%
Note: Based on 85% reinvestment rate under the DRP, the fully loaded CET1 Ratio would be at 14.01% (Group) and 13.29% (Bank) respectively.
15.88% 15.85% 15.02%
18.23% 17.95% 17.11%
19.43% 19.31% 18.48%
Dec 16 Dec 17 Dec 17
Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio
To be determined
17
76.5%74.9%
79.9%
74.7%71.9%
78.5%76.3%
78.1% 78.5%
11
28 3222.5 24
2420 23
44
32
36
33
3133 30
3232
FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17
Final
Interim
85.7%*
27%
13% 11% 12%
20%25%
19%
27%
42%
Gross Dividend (sen), Payout Ratio (%) and Cash Component (%)
Dividend: FY2017Total dividend of 55 sen per share with a 42% cash component for FY2017, and a strong dividend yield of 5.6%
* Actual Reinvestment Rate for Dividend Reinvestment Plan. The reinvestment rate for Final Dividend FY2017 is pending the execution of the 16th DRP.
# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend.
• Maybank adopted the single-tier dividend regime with effect from FYE 31 Dec 2012
85.9%*
85.7%*
88.2%*85.9%*
88.5%*91.1%*
86.1%*
88.6%*
#
82.6%*
55.060.0
36.0
65.0
53.557.0
84.0%*
DividendPayout Ratio
83.7%*
54.0
87.5%*
89.1%*
52.0
83.5%*
55.0
CashComponent
18
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
19
Key Indicators Industry Outlook
Singapore
Malaysia
Indonesia
• GDP (f): 5.3% (2018) vs 5.9% (2017)
• System loan (f): 4.5% (2018) vs 4.1% (2017)
• OPR (f): 3.25% (2018) vs 3.00% (2017)
• USD/MYR average (f): 3.83 (2018) vs 4.30 (2017)
• Inflation (f): 2.8% (2018) vs 3.7% (2017)
• GDP (f): 2.8% (2018) vs 3.6% (2017)
• System loan (f): 7%-8% (2018) vs 8.0% (2017)
• 3M SIBOR (f): 1.55% (2018) vs 1.50% (2017)
• USD/SGD average (f): 1.26 (2018) vs 1.37 (2017)
• Inflation (f): 0.9% (2018) vs 0.6% (2017)
• GDP (f): 5.3% (2018) vs 5.1% (2017)
• System loan (f): 10.2% (2018) vs 8.2% (2017)
• Reference Rate (f): 4.50% (2018) vs 4.25% (2017)
• USD/IDR average (f): 13,640 (2018) vs 13,397
(2017)
• Inflation average (f): 3.5% (2018) vs 3.8% (2017)
• The momentum of the domestic economic
recovery, subdued interest rate
environment and government projects
should provide support for credit growth
in 2018.
• Sufficient liquidity in the system will
enable lending growth.
• Loan growth supported by domestic
economic growth and pick-up in Singapore
property market.
• NIMs expected to improve from repricing
due to higher rates.
• No significant weakness in asset quality for broader portfolio.
• Loan growth supported by corporate
lending pick-up and stable consumer
lending.
• NIMs to remain stable in 2018 on 25 bps
OPR hike in January 2018.
• Stable to marginally higher ROEs for
banks; manageable MFRS 9 impact.
Market Outlook2018 industry outlook for our home markets
20
Maintain stable liquidity risk indicators ahead of NSFR adoption in 2019
Day 1 capital impact of ~40 bps with MFRS 9 adoption
Maybank Performance OutlookGroup guidance for FY2018
5
Effective NIM management in rising rate environment1
3
Managed cost growth with CIR ~48%4
Maintain pricing discipline of loans under new MFRS 9 environment2
Group ROE guidance of ~11%6
21
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
22
Overseas:
28.7%
71.3%
9.4%
8.6%
10.7%
Malaysia Singapore Indonesia Others
59.5%18.2%
14.4%
7.9%
58.5%25.7%
7.8%8.0%
77.2%
9.9%
8.9%4.0%
62.1%15.8%
14.6%
7.5%
56.7%25.5%
8.6%
9.1%
International & Malaysia Portfolio Mix FY2017
Overseas:
43.3%
FY2016
Net Operating Income Profit Before Tax
FY2017
Overseas:
37.9%
Overseas:
22.8%
Gross loans*
(Jan 16 – Dec 16)
Overseas:
41.5%
Overseas:
40.5%
(Jan 17 – Dec 17)
RM8.84
billion
RM485.7
billion
RM22.17
billion
RM10.10
billionRM493.8
billionRM23.27
billion
Note:
* Including Islamic loans sold to Cagamas and excludes unwinding of interest
23
22,173
12,685
7,555
1,409 137
1,593
23,268
13,497
7,658
1,337 247
1,891
Total Group CommunityFinancial Services
Group CorporateBanking & Global
Markets
Group InvestmentBanking
Group AssetManagement
Group Insurance &Takaful
FY2016
FY2017
11,686
5,929 5,717
346 (8)906
11,911
6,275 5,653
193 80 1,071
Total Group CommunityFinancial Services
Group CorporateBanking & Global
Markets
Group InvestmentBanking
Group AssetManagement
Group Insurance &Takaful
FY2016
FY2017
Segmental Performance of Businesses: FY2017 (1/2)
Net Operating Income
RM
million
+4.9%
RM
million
PPOP
+6.4% +1.4% (5.1)% +18.7%
+1.9%
+5.8% (1.1)% (44.1)% (>100)%
+80.3%
+18.2%
Group Global Banking (GB) (2.1)%
Group Global Banking (GB) +1.6%
FY2016: 9,101 FY2017: 9,242
FY2016: 6,055 FY2017: 5,927
Note:
Net income & PPOP for group includes expenditures of “Head Office & Others” of RM1,204.9 million for FY2016 and RM1,361.7 million for FY2017.
24
15,074
9,627
4,792
293 (7) 1,009
16,628
10,292
5,058
302 (1) 1,094
Total Group CommunityFinancial Services
Group CorporateBanking & Global
Markets
Group InvestmentBanking
Group AssetManagement
Group Insurance &Takaful
FY2016
FY2017 +10.3%
Net Fund Based Income
7,099
3,058 2,762
1,116
145 584
6,641
3,205 2,600
1,035
248 797
Total Group CommunityFinancial Services
Group CorporateBanking & Global
Markets
Group InvestmentBanking
Group AssetManagement
Group Insurance &Takaful
FY2016
FY2017 (6.5)%
(7.3)%
Group Global Banking (GB) +5.5%
Net Fee Based Income
RM
million
RM
million
+3.3% (88.0)%
+71.6%
+6.9% +5.5% +8.4%
FY2016: 5,078 FY2017: 5,359
Group Global Banking (GB) (3.5)%
FY2016: 4,023 FY2017: 3,883
Segmental Performance of Businesses: FY2017 (2/2)
Note:
Net fund based income includes expenditures of “Head Office & Others” of RM638.7 million for FY2016 and RM116.9 million for FY2017.
Net fee based income includes expenditures of “Head Office & Others” of RM566.2 million for FY2016 and RM1,244.8 million for FY2017.
(5.9)% +4.8% +36.6%
25
Income Statement for Insurance and Takaful Business: YoY
RM million FY2017 FY2016 YoY
Net interest income 1,086.9 995.0 9.2%
Net earned premiums 5,250.9 4,444.1 18.2%
Other operating income 806.6 408.1 97.7%
Total operating income 7,144.4 5,847.1 22.2%
Net insurance benefits & claims incurred, net fee &
commission expenses and life & takaful fund tax(5,274.9) (4,285.4) 23.1%
Net operating income 1,869.5 1,561.7 19.7%
Overhead expenses (807.9) (700.0) 15.4%
PPOP 1,061.6 861.7 23.2%
Net impairment losses (62.4) (25.8) >100%
Operating profit 999.2 835.9 19.5%
RM million FY2017 FY2016 YoY
Net insurance benefits & claims incurred, net fee &
commission expenses and life & takaful fund tax(5,274.9) (4,285.4) 23.1%
Less: intercompany elimination 217.7 177.5 22.7%
Total net insurance benefits & claims incurred,
net fee & commission expenses and life & takaful
fund tax
(5,057.1) (4,107.9) 23.1%
Reconciliation of net insurance benefits & claims incurred, net fee & commission
expenses and life & takaful fund tax
Note: Page 28 shows the quarterly trend of the Income Statement for Insurance and Takaful business
26
Key Operating Ratios: YoY
% FY2017 FY2016 YoY FY2015 FY2014
Return on Equity 10.9 10.6 0.3% 12.2 13.8
Net Interest Margin 2.36 2.27 9 bps 2.31 2.31
Fee to Income Ratio 28.5 32.0 (3.5)% 31.5 31.9
Loans-to-Deposit Ratio 1 93.8 93.9 (0.1)% 92.7 91.8
Cost to Income Ratio 2 48.7 47.1 1.6% 48.2 48.9
Asset Quality
Gross Impaired Loans Ratio 2.34 2.28 6 bps 1.86 1.52
Loans Loss Coverage 71.5 72.0 (0.5)% 72.0 95.6
Net Charge off rate (bps) (40) (62) 22 bps (41) (11)
Capital Adequacy (Group) 3
CET1 Capital Ratio 14.19 13.63 56 bps 12.53 11.38
Total Capital Ratio 18.80 18.94 (14) bps 17.49 15.87
Note: Page 35 shows the quarterly trend of key operating ratios.1 LDR excludes structured deposits as per BNM’s circular dated 21 June 2017 “Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013”2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Kim Eng.3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period
27
P&L Summary: QoQ
RM million1Q
FY2017
2Q
FY2017
3Q
FY2017
4Q
FY2017QoQ
4Q
FY2016YoY
Net fund based income 4,117.9 4,143.5 4,205.1 4,161.3 (1.0)% 3,917.9 6.2%
Net fee based income 1,412.1 1,640.8 1,692.6 1,895.2 12.0% 2,123.4 (10.7)%
Net operating income 5,530.0 5,784.3 5,897.7 6,056.4 2.7% 6,041.3 0.3%
Overhead expenses (2,779.3) (2,768.5) (2,886.4) (2,922.8) 1.3% (2,606.8) 12.1%
Pre-provisioning operating profit (PPOP) ¹ 2,750.6 3,015.8 3,011.3 3,133.6 4.1% 3,434.5 (8.8)%
Net impairment losses (542.8) (835.7) (409.6) (239.7) (41.5)% (624.5) (61.6)%
Operating profit 2,207.9 2,180.1 2,601.7 2,893.9 11.2% 2,810.0 3.0%
Profit before taxation and zakat (PBT) 2,249.1 2,244.5 2,678.4 2,926.1 9.3% 2,873.0 1.8%
Profit attributable to equity holders of
the Bank (Net Profit)1,702.8 1,658.4 2,027.2 2,132.1 5.2% 2,360.6 (9.7)%
EPS - Basic (sen) 16.7 16.1 19.9 19.9 0.4% 23.2 (14.1)%
Note:
¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses
28
Income Statement for Insurance and Takaful Business: QoQ
RM million1Q
FY2017
2Q
FY2017
3Q
FY2017
4Q
FY2017QoQ
4Q
FY2016YoY
Net interest income 251.1 299.1 260.6 276.0 5.9% 261.8 5.4%
Net earned premiums 1,253.9 1,255.8 1,307.4 1,433.8 9.7% 1,192.5 20.2%
Other operating income 259.8 172.3 84.4 290.2 >100% (280.7) >100%
Total operating income 1,764.8 1,727.2 1,652.5 2,000.0 21.0% 1,173.6 70.4%
Net insurance benefits & claims incurred, net fee &
commission expenses and life & takaful fund tax(1,424.0) (1,265.3) (1,289.2) (1,296.4) 0.6% (637.4) >100%
Net operating income 340.8 461.9 363.2 703.6 93.7% 536.2 31.2%
Overhead expenses (166.3) (186.8) (189.3) (265.4) 40.2% (209.4) 26.7%
PPOP 174.5 275.1 173.9 438.2 >100% 326.7 34.1%
Net impairment losses (1.8) (9.8) (23.9) (26.8) 12.3% 7.8 (>100)%
Operating profit 172.6 265.3 150.0 411.3 >100% 334.5 23.0%
RM million1Q
FY2017
2Q
FY2017
3Q
FY2017
4Q
FY2017QoQ
4Q
FY2016YoY
Net insurance benefits & claims incurred, net fee &
commission expenses and life & takaful fund tax(1,424.0) (1,265.3) (1,289.2) (1,296.4) 0.6% (637.4) >100%
Less: intercompany elimination 45.6 35.1 73.9 63.1 (14.6)% 42.1 49.9%
Total net insurance benefits & claims incurred,
net fee & commission expenses and life & takaful
fund tax
(1,378.4) (1,230.2) (1,215.3) (1,233.2) 1.5% (595.3) >100%
Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax
29
1,412 1,405
131
1,254
(1,378)
1,641 1,527
88
1,256
(1,230)
1,693
1,497
104
1,307
(1,215)
1,895
1,598
97
1,434
(1,233)
Total Other Operating Income Fee Income from IslamicOperations
Net Earned InsurancePremiums
Net Insurance Benefits &Claims Incurred, Net Fee &Commission Expenses andLife & Takaful Fund Tax
1Q FY2017
2Q FY2017
3Q FY2017
4Q FY2017
RM
million
RM million1Q
FY2017
2Q
FY2017
3Q
FY2017
4Q
FY2017QoQ
Commission, service charges and fees 835 883 923 923 (0.1)%
Investment & Trading Income 232 301 312 211 (32.4)%
Unrealised gain/ (losses) on securities 206 113 (179) 2 >100%
Unrealised gain/ (losses) on derivatives (76) 65 69 (183) >(100)%
Foreign Exchange Profit 76 48 244 191 (21.9)%
Other Income 132 118 126 454 >100%
Net Fee Based Income: QoQ
+3.2%
+12.0%
+16.2%
(2.0)%
+6.8%
+8.7%
+18.0%
(7.1)%
(32.9)%
+4.1%
+9.7%
+0.2%
(1.2)%
+1.5%
(10.8)%
30
Overheads: QoQ
RM million1Q
FY2017
2Q
FY2017
3Q
FY2017
4Q
FY2017QoQ
4Q
FY2016YoY
Personnel Costs 1,504.0 1,540.1 1,527.4 1,556.5 1.9% 1,351.2 15.2%
Establishment Costs 482.3 459.6 479.6 559.4 16.6% 451.0 24.0%
Marketing Expenses 135.3 109.8 116.7 153.3 31.4% 130.7 17.3%
Administration & General Expenses 657.7 659.0 762.7 653.6 (14.3)% 673.9 (3.0)%
Total 2,779.3 2,768.5 2,886.4 2,922.8 1.3% 2,606.8 12.1%
%1Q
FY2017
2Q
FY2017
3Q
FY2017
4Q
FY2017QoQ
4Q
FY2016YoY
Total Cost to Income ¹ 50.1% 47.7% 48.9% 48.2% (0.7)% 43.0 5.2%
Group JAW Position 1.4% (11.8)%
Note:
¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng
31
Group Gross Loans Growth: 31 December 2017
Note:
¹ Re-based loan growth figures are based on adjusted 31 December 2016 position in line with migration of client accounts, effective 1 January 2017
% of
Portfolio
31 Mar
2017
30 Jun
2017
30 Sep
2017
31 Dec
2017QoQ
31 Dec
2016YoY
Group Gross Loans 486.1 480.1 485.9 493.8 1.6% 485.7 1.7%
Malaysia (RM billion) 58% 270.7 273.8 278.7 285.5 2.4% 272.0 5.0%
Community Financial Services 71% 195.6 197.1 199.8 203.7 1.9% 194.4 4.8%
Community Financial Services ¹ 71% 195.6 197.1 199.8 203.7 1.9% 193.7 5.1%
Global Banking 29% 76.4 78.0 79.1 81.9 3.6% 78.8 3.9%
Global Banking ¹ 29% 76.4 78.0 79.1 81.9 3.6% 79.5 3.1%
International (RM billion) 41% 207.8 199.0 199.8 200.9 0.6% 206.8 (2.9)%
Singapore (SGD billion) 61% 39.1 38.5 39.1 40.6 3.7% 38.9 4.3%
Community Financial Services 54% 20.9 21.1 21.5 22.1 2.6% 20.7 6.9%
Global Banking 46% 18.0 17.2 17.6 18.5 5.1% 18.0 2.6%
Indonesia (IDR trillion) 19% 122.6 123.1 125.0 129.2 3.4% 124.7 3.6%
Community Financial Services 75% 94.7 93.5 94.5 96.4 2.1% 97.0 (0.6)%
Global Banking 25% 27.6 29.3 30.2 32.5 7.6% 27.4 18.6%
Other markets (RM billion) 20% 43.3 39.3 38.9 39.5 1.5% 44.6 (11.6)%
Investment banking (RM billion) 1% 7.6 7.3 7.4 7.4 (0.1)% 6.9 6.8%
32
Malaysia Loans Growth: 31 December 2017
% of
Portfolio
31 Mar
2017
30 Jun
2017
30 Sep
2017
31 Dec
2017QoQ
31 Dec
2016YoY
Community Financial Services 71% 195.6 197.1 199.8 203.7 1.9% 194.4 4.8%
Community Financial Services ¹ 71% 195.6 197.1 199.8 203.7 1.9% 193.7 5.1%
Consumer 57% 156.3 157.7 160.0 163.3 2.1% 155.3 5.2%
Total Mortgage 28% 76.2 77.6 79.0 80.7 2.2% 75.0 7.6%
Auto Finance 16% 44.2 44.6 45.2 45.7 1.2% 43.4 5.3%
Credit Cards 3% 6.5 6.6 6.8 7.2 6.2% 6.7 7.3%
Unit Trust 9% 26.8 26.2 26.4 27.0 2.1% 27.6 (2.1)%
Other Retail Loans 1% 2.5 2.6 2.6 2.7 2.4% 2.6 2.6%
SME + Business Banking 14% 39.3 39.4 39.7 40.3 1.5% 39.1 3.2%
SME + Business Banking ¹ 14% 39.3 39.4 39.7 40.3 1.5% 38.4 5.0%
SME 5% 13.2 13.8 14.3 14.9 3.8% 12.6 18.3%
SME ¹ 5% 13.2 13.8 14.3 14.9 3.8% 12.4 19.7%
Business Banking 9% 26.1 25.6 25.4 25.4 0.2% 26.5 (4.0)%
Business Banking ¹ 9% 26.1 25.6 25.4 25.4 0.2% 25.9 (2.0)%
Global Banking (Corporate) 29% 76.4 78.0 79.1 81.9 3.6% 78.8 3.9%
Global Banking (Corporate) ¹ 29% 76.4 78.0 79.1 81.9 3.6% 79.5 3.1%
Total Malaysia 270.7 273.8 278.7 285.5 2.4% 272.0 5.0%
Note:
¹ Re-based loan growth figures are based on adjusted 31 December 2016 position in line with migration of client accounts, effective 1 January 2017
33
Group Deposits Growth: 31 December 2017
% of
Portfolio
31 Mar
2017
30 Jun
2017
30 Sep
2017
31 Dec
2017QoQ
31 Dec
2016YoY
Group Gross Deposits 508.1 511.7 517.2 526.6 1.8% 517.1 1.8%
Malaysia (RM billion) 60% 301.8 304.9 310.4 317.8 2.4% 300.9 5.6%
Savings Deposits 13% 41.2 41.1 40.9 40.7 (0.5)% 38.8 5.0%
Current Accounts 27% 83.2 82.1 81.8 87.1 6.6% 83.2 4.8%
Fixed Deposits 53% 159.5 159.8 165.2 169.8 2.8% 163.5 3.9%
Others 6% 17.9 21.9 22.5 20.1 (10.7)% 15.5 29.9%
International 40% 208.2 208.8 208.3 210.3 0.9% 217.7 (3.4)%
Singapore (SGD billion) 67% 42.3 42.1 44.2 46.2 4.6% 44.5 3.8%
Savings Deposits 15% 5.8 5.8 6.4 7.0 8.3% 5.7 22.1%
Current Accounts 17% 7.1 7.6 7.6 7.6 (0.2)% 6.8 12.1%
Fixed Deposits 68% 29.4 28.8 30.1 31.6 5.0% 32.0 (1.2)%
Indonesia (IDR trillion) 17% 118.0 120.1 119.4 121.5 1.8% 119.3 1.8%
Savings Deposits 20% 24.8 24.5 24.4 24.8 1.6% 25.6 (3.1)%
Current Accounts 19% 18.9 20.2 20.8 23.6 13.7% 20.4 15.5%
Fixed Deposits 60% 74.3 75.4 74.2 73.1 (1.5)% 73.3 (0.3)%
Note:
Deposits figures are restated following a BNM circular dated 21 June 2017 which excludes structured deposits
34
93.9% 95.7% 93.8% 94.0% 93.8%
36.0%37.4% 36.8% 36.8% 37.3%
34.6% 35.7% 35.1% 35.0% 35.4%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
LDR CASA CASA (without IA)
91.5% 90.8% 90.9% 90.7% 91.2%
40.5% 41.2% 40.4% 39.5% 40.2%
38.0% 38.4% 37.6% 36.6% 37.1%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
LDR and CASA Ratio
Singapore Indonesia
Group Malaysia
104.5% 103.9% 102.4% 104.7% 106.3%
38.6% 37.0% 37.2% 37.8% 39.8%
88.9% 88.4% 86.7% 87.6% 88.1%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
LDR (Bank Level)
87.4%92.4% 91.4% 88.5% 87.8%
28.1% 30.5% 31.7% 31.9% 31.6%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17Note:
• LDR excludes structured deposits as per BNM’s circular dated 21 June 2017 “Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013”
• Group and Malaysia LDRs include investment accounts totaling RM24.56 billion for 31 Dec 2017, RM26.80 billion for 30 Sep 2017, RM27.79 billion for 30 June 2017, RM31.71 billion for
31 March 2017 and RM31.54 billion for 31 Dec 2016
35
Key Operating Ratios: QoQ
%1Q
FY2017
2Q
FY2017
3Q
FY2017
4Q
FY2017QoQ
4Q
FY2016YoY
Return on Equity 10.0 9.6 11.6 12.4 0.8% 14.8 (2.4)%
Net Interest Margin 2.43 2.39 2.35 2.30 (5) bps 2.32 (2) bps
Fee to Income Ratio 25.5 28.4 28.7 31.3 2.6% 35.1 (3.8)%
Loans-to-Deposit Ratio 1 95.7 93.8 94.0 93.8 (0.2)% 93.9 (0.1)%
Cost to Income Ratio 2 50.1 47.7 48.9 48.2 (0.7)% 43.0 5.2%
Asset Quality
Gross Impaired Loans Ratio 2.40 2.53 2.50 2.34 (16) bps 2.28 6 bps
Loans Loss Coverage 71.2 70.1 71.7 71.5 (0.2)% 72.0 (0.5)%
Net Charge off rate (bps) (45) (68) (32) (16) (16) bps (54) (38) bps
Capital Adequacy (Group) 3
CET1 Capital Ratio 13.02 13.56 13.50 14.19 69 bps 13.63 56 bps
Total Capital Ratio 18.50 18.98 18.03 18.80 77 bps 18.94 (14) bps
Note:1 LDR excludes structured deposits as per BNM’s circular dated 21 June 2017 “Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013”2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Maybank Kim Eng.3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period
36
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
37
Community Financial Services: Overview of Market Share for Malaysia
Note:
¹ Rebased market share due to adjustment made to Industry data by BNM from Jan-15.
* Refers to housing, shophouse and other mortgage loans
** Credit cards market share refer to receivables for commercial
*** Total bank deposits inclusive of investment asset (“IA”)
^ Without IA. With IA, the market share as at Dec’17 for Total Core Retail Deposits, Retail
CASA, Retail Savings, Demand Deposits and Retail Fixed Deposits are 18.9%, 25.4%,
28.2%, 20.9% and 16.4% respectively (against MBB retail IA).
^^ Excluding non-financial transactions as per BNM guidelines
^^^ Industry numbers only available half yearly
Loans
Total consumer (Household) 17.6% 17.5% 17.5% 17.6% 17.6% # 2
Auto (Purchase of transport vehicles) 25.0% 25.4% 25.7% 26.1% 26.5% # 2
Total mortgage * 13.3% 13.3% 13.2% 13.2% 13.3% # 2
Credit cards ** 18.0% 17.9% 17.9% 18.4% 18.8% # 1
Unit trust 51.6% 51.8% 51.8% 51.7% 51.1% # 1
Deposits
Total deposits *** 17.9% 17.6% 17.9% 18.1% 18.4% # 1
Total core retail deposits ^ 17.9% 18.0% 17.6% 17.5% 17.7% # 2
Retail CASA ^ 24.6% 25.1% 24.9% 24.9% 24.5% # 1
Retail savings ^ 27.9% 28.3% 28.3% 28.3% 28.2% # 1
Demand deposits ^ 19.2% 19.7% 19.4% 19.1% 18.3% # 1
Retail fixed deposits ^ 14.5% 14.3% 13.9% 13.8% 14.4% # 2
Channels
Internet banking - Subscriber base 44.6% 44.3% 43.6% 42.2% 41.0% # 1
Mobile banking - Subscriber base 31.4% 32.0% 31.7% 31.8% 31.7% # 1
Internet banking - Transaction Volume ^^ 52.2% 55.1% 55.1% 55.1% 54.8% # 1
Mobile banking - Transaction Volume ^^ 59.3% 42.7% 43.5% 48.7% 49.3% # 1
Branch network ^^^ 18.8% 18.8% 18.6% 18.6% 18.6% # 1
Sep-17
vs
Dec-17
Market
positionDec-16 Jun-17 Sep-17 Dec-17Mar-17Market share
1
38
Business Banking + SME loans grew by 3.2% YoY to RM40.3
billion led by SME growth of 18.3% YoY
Community Financial Services: Overview of Malaysia Loans Portfolio
186.5 193.9 197.5
7.38 7.52 7.57
Dec 16 Sep 17 Dec 17
TFA Product per customer
103.8 104.1 104.6
3.363.52 3.55
Dec 16 Sep 17 Dec 17
TFA Product per customer
39.1 39.7 40.3
Dec 16 Sep 17 Dec 17
155.3 160.0163.3
Dec 16 Sep 17 Dec 17
+5.2% YoY
Consumer loans grew 5.2% YoY to RM163.3 billion led by
mortgage and auto finance growth
Note:
• Customer classification: HNW (IA>RM3m, TFA>RM4m); Affluent (IA between RM250k to RM3m, TFA between RM1m to <RM4m)
• TFA: Total Financial Assets (Deposits, Investments, Financing & Protection).
+2.1% QoQ
HNW and Affluent customer TFA grew 5.9% YoY to
RM197.5 billion
Mass customer TFA on an upward trend of 0.8% YoY and
0.5% QoQ
+3.2% YoY
+1.5% QoQ
RM
billion
+0.8% YoY
RM
billion
+5.9% YoY
RM
billion
RM
billion
+1.9% QoQ
Note:
• Business Banking and SME figures are before migration of accounts.
+0.5% QoQ
39
Community Financial Services: Overview of Malaysia Deposits Portfolio
214.0 206.2 212.3
Dec 16 Sep 17 Dec 17
+3.0% QoQ
136.8 137.3 137.5
Dec 16 Sep 17 Dec 17
+0.5 % YoY
+0.1 % QoQ
Our deposit strategy is focused on growing CASA,
which has improved our NIM.
Consumer deposits showed positive growth of 0.5% YoY,
mainly driven by growth in CASA of 3.3% YoY.77.2
68.874.9
Dec 16 Sep 17 Dec 17
(3.0)% YoY
+8.7% QoQ
Total CFS deposits contracted by 0.8% YoY, due to
reduction in high cost deposits
Business Banking + SME deposits contracted by 3.0% YoY
Consumer deposits grew 0.5% YoY
(0.8)% YoY
RM
billion
RM
billion
RM
billion
40
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
41
11.7
27.9
39.2
11.5
28.5
39.1
11.7
28.2
42.0
Dec 17 Sep 17 Dec 16
RM billion
Note: ‘Term Loan’ includes foreign currency denominated accounts, while ‘Trade
Finance and Others’ is combined with ‘Overdraft’.
Term Loan
Global Banking: Overview of Malaysia Corporate Banking Portfolio
Trade Finance market shareTotal GB loans increased 3.9% YoY to RM81.9 billion
Corporate Banking GIL ratio at 1.58% as at Dec 2017
Short Term
Revolving
Credit
Trade
Finance and
Others
Note: Market share of total trade products (On Balance Sheet items, Contingent
Liabilities and Others)
+1.0% YoY
+0.4 % YoY
+7.1% YoY
26.2%
25.1%
24.7%24.5% 24.4%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
1.85% 1.93% 1.97% 1.92%
1.58%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
42
57.8%
25.4%
14.1%
2.3%
0.1%
0.3%
RM34.4
billion
Commercial
Papers
, AA
, A
, AAA
, <A
Others
24.8%
19.1%31.7%
18.5%
5.9%
RM 154.4
billion
Government
Securities
- Domestic
Government
Securities
- Foreign
PDS/Corp
Bonds
- Domestic
PDS –
Foreign
Others
(NIDs, BA, etc)
21.7%
22.5%
29.4%
18.6%
7.8%
RM 130.9
billion
Government
Securities
- Domestic
Government
Securities
- ForeignPDS/Corp
Bonds
- Domestic
PDS –
Foreign
Others
(NIDs, BA, etc)
Group Securities Portfolio¹: 37.6% Foreign Securities as at FY2017
Group Securities Portfolio¹ grew 17.9% YoY
40% of PDS (Maybank Conventional Malaysia) rated “AA” or
above as at FY2017
Global Banking: Overview of Group Securities and Global Markets Portfolio
FY2017FY2016
57.968.2 67.7 73.6 67.7
62.8
68.6 71.477.1
77.6
10.2
11.9 9.6
9.59.1
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
Govt. Securities PDS/Corp Bonds Others
+17.9 %
130.9
148.7 148.7
FY2016 FY2017
Note:
¹ Group Securities Portfolio is inclusive of Financial assets designated upon initial
recognition( part of FVTPL)
160.2
Note:
‘Others’ category refers to Government Guaranteed bonds, Partially Government
Guaranteed bonds and non rated bonds
154.4
62.0%
16.2%
20.6%
0.4%
0.1%0.7%
RM21.8
billion
RM
billion
, <A
, A
Commercial
Papers
, AA
, AAA
Others
43
Malaysia39%
Singapore26%
Thailand21%
Indonesia4%
Philippines2%
Hong Kong4%
Others4%
FY2017 Brokerage Market Share by Country
Note: 1 Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings
Global Banking: Overview of Group Investment Banking Portfolio
Country RankMarket
Share
Trading Value
(USD’mil)
Thailand 1 6.8% 45,715.7
Malaysia 3 9.8% 28,816.1
Philippines 7 4.4% 3,440.3
Indonesia 19 2.1% 5,610.8
Hong Kong Tier 2 0.6% 33,342.5
Singapore 12 4.1% 18,113.8
Vietnam > 10 2.1% 2,372.0
FY2017 Fee-based Income for Malaysia
Brokerage Fees41.0%
Arranger Fees15.9%
Underwriting & Placement
Fees6.3%
Advisory Fees16.6%
Agency/ Guarantee Fees
3.1%
Other Fee Income17.1%
FY2017 Total Income Breakdown by Country
RM1,337.3
million
Total Income for Maybank Kim Eng1
1,408.8 1,337.3
FY2016 FY2017
(5.1)%
RM
million
44
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
45
Maybank Singapore: P&L Summary
SGD million FY2017 FY2016* YoY
Net fund based income 685.72 521.00 31.6%
Net fee based income 326.79 274.35 19.1%
Net income 1,012.51 795.35 27.3%
Overhead expenses (387.87) (352.72) 10.0%
Operating profit 624.64 442.63 41.1%
Profit before taxation 315.48 240.99 30.9%
Net fund-based income rose 31.6%, largely driven by net interest margin improvement.
Fee-based income increased 19.1%, led by higher wealth management, trade-related and treasury income.
Overhead expenses rose 10.0% arising from higher revenue-related spend.
Buoyed by a combination of broad-based revenue growth and disciplined cost management, operating profit expanded
41.4%.
PBT rose by a slightly slower pace of 30.9% to reach SGD315.48 million as additional loan loss allowances were set aside,
mainly for oil & gas related exposure.
Note:
* FY2016 figures are restated numbers to align the Islamic banking income re-classification adjustments made effective 2017.
46
6.1 6.8
14.9 15.7
6.4 7.8
17.1 15.8
Dec 16 Dec 17
Consumer -Time Deposits
Consumer CASA
Business TimeDeposits
Business CASA
5.7 7.0
6.8 7.6
32.0 31.6
Dec 16 Dec 17
Time Deposits
Demand Deposits
Savings
8.4 8.5
4.9 4.5
4.2 4.5
6.3 6.7
9.7 10.6
1.8 2.13.5 3.5
Dec 16 Dec 17
Other(Consumer)
Car Loan
Housing Loan
Others(Corporate)
Non-Bankfinancial Inst
GeneralCommerce
Building &Construction
Maybank Singapore loans rose 4.3% YoY
Diversified Loan Portfolio
Consumer
40%
Corporate
60%
4.5%6.4%
4.9% 4.6%4.3%
0.5%
5.8%
6.4%8.1% 8.0%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
Maybank Singapore Growth Industry Growth
+4.3% YoY
Maybank Singapore: Overview of Loans and Deposits Portfolio
% YoY change
40.638.9
Consumer
51%
Corporate
49%
SG
D b
illion
Consumer deposits account for 51% of deposits
SG
D b
illion
CASA Ratio:
31.6%SG
D b
illion
Robust CASA growth of 16.6% YoY; CASA ratio also
improved to 31.6% in Dec 2017 from 28.1% a year ago
Consumer deposits rose marginally to S$23.6 billion as a 21.3%
jump in CASA was partially offset by an outflow of FD.
Business deposits were higher on the back of a 11.8% increase in
CASA
44.5 46.2
+3.8% YoY
47
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
48
Maybank Indonesia: P&L Summary
IDR billion FY2017 FY2016 YoY 4Q FY2017 3Q FY2017 QoQ
Net Fund Based income 7,702 7,430 3.7% 1,975 1,891 4.4%
Net Fee Based income 2,729 2,656 2.8% 588 685 (14.2)%
Net income 10,431 10,086 3.4% 2,563 2,576 (0.5)%
Overhead expenses (5,793) (5,517) 5.0% (1,300) (1,429) (9.1)%
Personnel (2,387) (2,381) 0.3% (516) (637) (19.0)%
General and Administrative (3,406) (3,137) 8.6% (784) (792) (1.1)%
Operating profit 4,638 4,569 1.5% 1,264 1,147 10.2%
Provisions Expenses (2,134) (1,980) 7.8% (787) (511) 54.0%
Non Operating (Expense)/Income 15 25 (36.9)% 44 (18) (>100)%
Profit Before Tax and Non-Controlling Interest 2,520 2,614 (3.6)% 521 618 (15.8)%
Tax and Non-Controlling Interest (716) (665) 7.5% (165) (168) (1.5)%
Profit After Tax and Non-Controlling Interest 1,804 1,948 (7.4)% 355 450 (21.1)%
EPS - Basic (IDR) 26.63 28.76 (7.4)% 5.25 6.64 (21.0)%
Note:
FY2016 figures are the restated to reflect Indonesia long form report for consistency
49
47,529
398
47,927 44,145
327
44,472
New Used Total
Dec 16 Dec 17
947 1,088
334 357
FY2016 FY2017
Revenue Profit Before Tax
Financing – stand aloneIDR billion
(7.1)%
(17.8)%
(7.2)%
+15.0% +14.5%
Asset Quality Unit Financing (unit)
Revenue and Profit Before Tax IDR billion
Maybank Indonesia: Overview of Maybank Finance Operations
+7.2%
0.32% 0.33% 0.32%0.30%
0.22%
0.39%0.41%
0.39%0.36%
0.26%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
NPL Net NPL Gross
5,979
6,843
Dec 16 Dec 17
50
231
48
145
425
241
33
191
465
New Used Multipurpose Total
Dec 16 Dec 17
1,928 2,154
30 237
FY2016 FY2017
Revenue Profit Before Tax
Financing – stand aloneIDR billion
+11.8% +14.6%
Asset Quality Unit Financing (‘000 unit)
Revenue and Profit Before Tax IDR billion
+>100%
1.25% 1.17% 1.21% 1.08% 1.05%
3.32%2.96% 2.84%
2.60%2.17%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
NPL Net NPL Gross
6,051
6,935
Dec 16 Dec 17
+4.2% (32.3)%
+9.5%
+31.9%
Maybank Indonesia: Overview of WOM Finance Operations
51
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
52
31.4
37.7
33.3
5.5
19.822.2
32.4
42.6
35.4
6.1
24.622.6
AITAB Mortgage Term Financing Others (CFS) Term Financing Others (GB)
Dec 16
Dec 17
Year Contribution
Dec 2016 54.5%
Mar 2017 54.9%
Jun 2017 55.8%
Sep 2017 56.0%
Dec 2017 56.9%
Maybank Islamic, 56.9%
Maybank Conventional Malaysia, 43.1%
Key Financial Ratios FY2017 FY2016
Net Profit Margin (YTD) 1.90% 1.82%
Total Capital Ratio (TCR) 20.78% 18.55%
Cost to Income Ratio (CIR) 35.12% 36.30%
Direct FDR1 95.1% 95.7%
Islamic Banking: Performance Overview
Group Islamic Banking Financial Performance
Maybank Islamic: Key Financial Ratios
Maybank Islamic: Total Gross Financing grew to RM163.6
billion
CFS:8%
Maybank Islamic Contribution to Maybank Malaysia Loans
and Financing as at Dec 17
Note:
¹ Direct Financing to Deposits Ratio (FDR) comprising gross financing against deposit
and Unrestricted Investment Account (exc. RPSIA assets and liabilities)
GB:12%
13%
6%
11%
2%
3%
24%
Note: Figures are as per latest segmentation breakdown
Group Islamic Banking’s performance has improved YoY, deriving from key markets in
Malaysia, Indonesia and Singapore
RM million FY2017 FY2016 YoY
Total Income 4,600.4 3,874.2 18.7%
Profit Before Tax 2,751.6 1,945.4 41.4%
Financing & Advances 174,907.7 159,479.3 9.7%
Deposits & Investment Account: 162,986.9 145,216.7 12.2%
Deposits from Customers 138,431.5 113,672.1 21.8%
Investment Account 24,555.4 31,544.6 (22.2)%
RM
billion
53
Global Sukuk League Table
Ranking
Market Share
(%)
Amount
(USD million)Issues
#1 Maybank 13.07% 7,173 230
MYR Sukuk League Table
Ranking
Market Share
(%)
Amount
(USD million)Issues
#1 Maybank 30.88% 6,314 188
Key Products Dec 17 Dec 16
Automobile Financing 45.0% 44.3%
Home 27.7% 28.4%
Term financing 31.6% 30.1%
Maybank Islamic ranks No.1 by Asset Market Share
in Malaysia
Source: Latest BNM monthly statistical bulletin & respective Bank’s Financial Statements
MalaysiaAsset Market Share
Sep 17Rank
Maybank Islamic 31% 1
CIMB Islamic 12% 2
RHB Islamic 9% 3
Source: Bloomberg
Sukuk League Table Ranking Dec 17
Source for industry numbers: Latest BNM Monthly Statistical Bulletin
Islamic Banking: Market Share
Market Share by Product (Malaysia)Maybank Islamic Market Share (Malaysia)
Source for industry numbers: Latest BNM Monthly Statistical Bulletin
34.1%33.5% 33.6% 33.6% 33.8%
30.4%29.8% 29.6% 29.7%
30.4%
Dec 16 Mar 17 Jun 17 Sep 17 Dec 17
Financing Deposits & Investment Accounts
54
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Total Life/Family & General
Total General
Misc
Personal Accident
MAT
Motor
Fire
Total Life/Family
Group Premium
Credit Premium
Regular Premium
Single Premium
RM million
FY2017
FY2016
316.6 350.1
323.4 231.8
170.3391.5
Dec 16 Dec 17
Life/Family General Shareholder's Fund
31.9 33.3
Dec 16 Dec 17
Insurance and Takaful: Performance Overview
Total Assets
Gross Premium
Profit Before Tax
Life / Family (New Business) Market Share
No. 4 in Life/Family
(New Business)
No. 1 in General
Insurance and
Takaful
General Insurance and Takaful Market Share
20.1% YoY 4.4% YoY
Note: PBT presented here refers to Maybank Ageas Holdings Berhad (MAHB), and
includes an estimated transfer of RM100.8 million from Family Fund in 4Q FY2017.
Note: Market Share is for period Oct’16 – Sep’17 (Source: LIAM / ISM Statistics)
>100%
22.3%
35.0%
2.6%
30.0%
7.7%
9.1%
(3.7)%
(24.9)%
(4.0)%
(6.9)%
11.7%
8.9%
13.6%
14.5%
21.5%
0.0% 10.0% 20.0%
Etiqa Ins. & Tak.
GE Ins. & Tak.
Prudential Ins. & Tak.
AIA Ins. & Tak.
8.0%
10.5%
11.8%
0.0% 5.0% 10.0% 15.0%
HL-MSIG Ins. & Tak.
Allianz Insurance
Etiqa Ins. & Tak.
810.3
973.4
RM
million
RM
billion
55
61,136.8
71,803.5 72,949.6 76,157.8
Dec 16 Dec 17
Gross Loans
CustomersDeposits
5,314.2 5,889.9
328.8
1,496.7
FY2016 FY2017
Revenue
PBT
Maybank Philippines: Performance Overview
Revenue increased by 10.8% YoY, led by higher net interest
income (NII).
Increase in NII contributed by higher interest income from
term loans.
PBT increased to PESO1,496.7 million, driven by higher
revenue, coupled with lower provisioning.
Gross loans rose by 17.4% YoY driven by growth in term loans.
Customer deposits advanced by 4.4% YoY mainly supported by
growth in CASA.
Gross impaired loans ratio improved by 124 bps to 2.11% due
to decrease in NPL.
+10.8% YoY
+>100% YoY
Revenue and PBT
Gross Loans and Deposits
Key Highlights
PESO
million
PESO
million
+17.4% YoY
+4.4% YoY
Key Ratios FY2017 FY2016
Return on assets 1.46% 0.34%
Return on equity 9.56% 1.75%
Cost-to-income ratio 70.46% 70.13%
Loans-to-Deposit ratio 94.28% 83.81%
Gross Impaired Loans Ratio 2.11% 3.35%
No. of branches 74 80
56
Table of Contents
Executive Summary 2
Results Overview 5
Prospects & Outlook 19
Appendix:
1. Financial Performance 22
2. Community Financial Services 37
3. Global Banking 41
4. Maybank Singapore 45
5. Maybank Indonesia 48
6. Other segments 52
7. Affiliates 57
Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017
57
49,555.2
57,174.5 52,227.5
60,120.7
Dec 16 Dec 17
Gross Loans
CustomersDeposits
2,177.4
2,597.6
288.2
619.0
FY2016 FY2017
Revenue
PBT
An Binh Bank: Performance Overview
Revenue increased by 19.3% YoY, mainly due to higher net
interest income.
PBT increased to VND619.0 billion, mainly contributed by
higher revenue.
Gross loans expanded by 15.4% YoY driven by growth in retail
lending.
Customer deposits rose by 15.1% YoY mainly due to growth in
certificate deposit.
Gross NPL ratio increased by 33 bps YoY to 2.19%, mainly
contributed by higher NPL.
Key Ratios FY2017 FY2016
Return on assets 0.80% 0.40%
Return on equity 10.50% 5.00%
Cost-to-income ratio 56.70% 53.28%
Loans-to-Deposit ratio 95.10% 94.88%
Gross NPL Ratio 2.19% 1.86%
+19.3 % YoY
+>100% YoY
+15.4 % YoY
+15.1% YoY
Gross Loans and Deposits
Revenue and PBTKey Highlights
VN
D b
illion
VN
D b
illion
58
61.1 61.9
36.7 30.6
FY2016 FY2017
Revenue
PBT
MCB Bank: Performance Overview
1.3% YoY
(16.6)% YoY
384.0 425.2
776.0
907.2
Dec 16 Dec 17
Gross Loans
CustomersDeposits
+16.9% YoY
+10.7% YoYKey Ratios FY2017 FY2016
Return on assets 1.89% 2.11%
Return on equity 17.65% 18.76%
Cost-to-income ratio 50.14% 40.62%
Loans-to-Deposit ratio 46.87% 49.51%
Gross NPL Ratio 9.47% 5.65%
Gross Loans and Deposits
Revenue increased by 1.3% YoY, led by higher non interest
income (NOII).
PBT decreased by 16.6% YoY, mainly attributed by higher
administrative expenses.
Gross loans increased by 10.7% YoY, mainly driven by growth
in domestic loans and Islamic financing.
Customer deposits grew by 16.9% YoY mainly contributed by
higher CASA.
Gross NPL ratio increased mainly due to higher NPL.
Revenue and PBTKey Highlights
PK
R b
illion
PK
R b
illion
59
Dato’ Amirul Feisal Wan Zahir
Group Chief Financial Officer
Contact: (6)03-2074 7703
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
Head, Group Investor Relations
Contact: (6)03-2074 8017
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.
Investor Relations Contact
Humanising Financial Services