q1fy2020 results · 13% • encouraging start to fy20 with double digit profit growth roe 8.8%...

Q1FY2020 RESULTSINVESTOR PRESENTATION

22 AUGUST 2019

GCEO PRESENTATIONDato’ Sulaiman Mohd Tahir

Q1FY20 Financial snapshot

Outlook for 2019

3

4

Q1FY20 Financial snapshot

Q1FY2020 Results – Investor Presentation3

Financial Snapshot

Q1FY20 Financials Q1FY20 A reasonable start

Profitability(RM’ mil)

Income1,065

Q1FY19: 1,014 5%

• Consistent NII growth and stronger trading & investmentincome

Expenses529

Q1FY19: 513 3% • Continuing focus on expenses management and efficiency

PBP536

Q1FY19: 501 7% • Sustained positive JAWS, CTI of 49.7%

(Recovery) / Impairment

(32)Q1FY19: 7

>100% • Continue to resolve certain large corporate loans

PATMI391

Q1FY19: 348 13% • Encouraging start to FY20 with double digit profit growth

ROE8.8%

Q1FY19: 8.3% 50bps • Making progress in delivering higher returns. ROTE circa 11%

Assets & Liabilities (RM’ bil)

Gross Loans100.8

FY19: 101.8 1% • Loans growth muted by large corporate repayments

Deposits102.8

FY19: 106.9 4% • Managing liquidity buffers

Capital & Liquidity

FHC CET111.9%

FY19: 11.9% 3 bps • Adequate capital levels

FHC LCR154%

FY19: 193% 3900 bps • Sound liquidity position

Outlook for 2019


Market Outlook

GDP growth: 4.5% - 4.7%

Banking Sector

Inflation: 1.0%

Export growth: 2.0%

USD/MYR outlook: 4.19 by end 2019

Loans growth: 4.6%

Asset quality: Stable

OPR: 2.75% - 3.00%

Resilient liquidity & capital positions

Malaysia

GCFO PRESENTATIONJamie Ling

Financial overview

Guidance & Expectations

6-19

20

Q1FY20 Results (QoQ)

Q1FY20 Financial overview


Financial Overview

Asset Quality Capital & Funding

Income up 12% to RM1,065mil:- NII of RM669mil (+6%), NIM recovered to 1.87% (+9bps)- NoII increased 21% from higher fee income and better contribution from General Insurance

Expenses lower by 12% at RM529mil. CTI of 49.7% Net recovery of RM32mil, mainly driven by a net writeback of provisions for corporate loans,

offsetting increase in provisions for retail portfolios PATMI down 15% to RM391mil on higher base last quarter (Q4FY19 included retail debt sale gain) ROE of 8.8%

NSFR2:

- AmBank (M) Berhad 114%- AmBank Islamic Berhad 109%- AmInvestment Bank Berhad 121%

GIL at 1.66% (Q4FY19: 1.59%) LLC1 at 111.5% (Q4FY19: 114.0%)

Adequate capitalisation, FHC CET1 11.9% FHC LCR of 154%

1. Includes regulatory reserve2. Under observation period

Q1FY20 Q4FY19 QoQ Change Q1FY19 YoY Change

CTI 49.7% 62.8% 1310bps 50.6% 90bps

NIM 1.87% 1.78% 9bps 2.02% 15bps

ROE 8.8% 10.7% 190bps 8.3% 50bps

EPS1 13.01 sen 15.28 sen 2.27 sen 11.56 sen 1.45 sen

Q1FY20 Performance summary – P&L


Financial Overview

1. Basic Earnings Per Share

Q1FY20 Q4FY19 QoQ Change Q1FY19 YoY Change

Total Income 1,065 955 12% 1,014 5%

Expenses 529 600 12% 513 3%

PBP 536 355 51% 501 7%

Net (Recovery) / Impairment

(32) (270) 88% 7 >100%

PATMI 391 460 15% 348 13%

P&L(RM’ mil)

FinancialIndicators

12.0% Q1FY20 Q4FY19 QoQ/YTD Change Q1FY19 YoY Change

FHC CET1 11.9% 11.9% 3bps 11.3% 56bps

FHC Tier 1 11.9% 11.9% 3bps 11.3% 56bps

FHC Total Capital 15.4% 15.4% 2bps 13.8% 157bps

Q1FY20 Performance summary – balance sheet


Financial Overview

Q1FY20 Q4FY19 QoQ/YTD Change Q1FY19 YoY Change

Gross Loans 100.8 101.8 1% 98.4 2%

GIL 1.66% 1.59% 7bps 1.77% 11bps

LLC1 111.5% 114.0% 250bps 106.3% 520bps

Customer Deposits 102.8 106.9 4% 98.6 4%

CASA 23.1 24.9 7% 20.8 11%

Balance Sheet(RM’ bil)

Capital Indicators

1. Includes regulatory reserves

613 611 617 643 642 648 661 629 669

369 356 342428 372 359 286 326

395

982 967 959

1,0711,014 1,007

947 955

1,065

Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20

Net Interest Income Non-interest Income

A reasonable start


Income

421 312

142

1. Investment share revaluation2. Gain on disposal of foreclosed properties

222

RM’ mil

Business SegmentsQ1FY20 Q4FY19 QoQ Change Q1FY19 YoY Change

(RM’ mil)

Wholesale Banking 302 281 8% 263 15%

Investment Banking 70 62 12% 69 1%

Retail Banking 358 342 5% 363 1%

Business Banking 86 86 ≈ 75 16%

Group Funding & Others 51 55 8% 62 18%

Total Income – Banking 867 826 5% 832 4%

General Insurance 187198

128129

46% 53%

168182

11% 9%

Life Insurance 11 1 >100% 14 22%

Total Income 1,065 955 12% 1,014 5%

429404

383

342

501 502

434

355

536

328 332

219

253

348 348 350

460

391

8.1% 8.1%

5.3%6.3%

8.3% 8.2% 8.1%

10.7%

8.8%


PBP PATMI ROE

Broad based improvement in operating leverage


PBP & PATMI


(RM’ mil)



Retail Banking 153 120 27% 142 8%

Business Banking 53 53 ≈ 45 16%

Group Funding & Others (38) (80) 54% (7) >100%

PBP – Banking 423 316 34% 400 6%

General Insurance 102113

3839

>100% >100%

87101

17% 12%

Life Insurance 11 1 >100% 14 22%

PBP 536 355 51% 501 7%

RM’ mil

348

39127

2439

16 27 4

A steady start to the year


Group P&L

YoY Growth 4% 6% 5% 3% 7% >100% 15% 24% 13% 13% 13%

RM’ milNet Interest

IncomeNon-Interest

IncomeTotal

IncomeExpenses PBP

(Recovery) /Impairment

PBT Tax & Zakat PAT MI PATMI

Q1FY20 669 395 1,065 529 536 (32) 568 137 432 40 391

Q1FY19 642 372 1,014 513 501 7 494 110 384 36 348

NIM: 1.87%

NoII%: 37.1%

CTI: 49.7%

GIL: 1.66%

EffectiveTax Rate:

24.0%79%

21%

78%

22%

Positive growth in Q1FY20 Contraction in Q1FY20 Conventional PATMI Islamic PATZ

178

187

7.0 0.1

4.9 0.2

0.9

3.4

0.3

3.9

3.3

Q4FY19 WholesaleBanking

InvestmentBanking

RetailBanking

BusinessBanking

Others Asset volume& mix

Interbank /Group

Funding

Depositsrates

Depositsmix

Q1FY20

Improved asset margins and lower liquidity


Net Interest Margin (NIM) Movement

NIM

DepositsAssets

Positive growth in Q1FY20 Contraction in Q1FY20

NIM movement:QoQ : 9%YoY : 15%

372

395 4

27 ≈

2

21 5

22

2

9

3

Improved trading and insurance income


NoII

YoY Growth 100% 11% >100% 1% 8% 18% 9% 16% 22% 93% 6%

RM’ milForeclosed Properties

Corporate Banking

Group Treasury

& Markets

Investment Banking &

Fund Mgmt

WealthMgmt

Other RetailBusiness Banking

General Insurance

Life Insurance

Group Funding &

OthersNoII

Q1FY20 - 45 38 58 20 40 20 154 11 9 395

Q1FY19 22 41 11 58 22 49 18 133 14 4 372

Q1FY19 NoII Q1FY20 NoIIPositive growth in Q1FY20 Contraction in Q1FY20

553 563 577

728

513 506 513600

529

56.3% 58.2% 60.1%

68.0%

50.6%50.2%

54.1%

62.8%

49.7%


Managing cost while continuing to invest


Expense Growth Driver Expense and CTI Trend

Expenses

Positive P&L impact in Q1FY20 Negative P&L impact in Q1FY201. Retail Operational Loss2. Mutual Separation Scheme


(RM’ mil)



Retail Banking 206 221 7% 222 7%

Business Banking 34 33 2% 29 16%

Group Funding & Others 88 135 35% 69 26%

Expenses – Banking 444 509 13% 432 3%

Insurance (General, life, takaful)

85 91 7% 81 5%

Expenses 529 600 12% 513 3%

RM’ mil

RM’ mil

1462

81191201

513

529

21

2

52

Q1FY19 Staff Cost Compliance &Governance

MFRS 16Impact

Others Q1FY20

776 649 681 728 820

925 1,000 749 676 613

40 208 217 240

1,701 1,689 1,638 1,621 1,673

1.94% 1.86%1.70%

1.59%1.66%

FY16 FY17 FY18 FY19 Q1FY20

Retail WholesaleBusiness GIL Ratio

81.2% 79.7%100.5% 114.0% 111.5%

208 200

393

94 49

187 215

843

-56

106

258

773

- -

IndividualAllowance

ECL Stage 3 /CP - Defaulted

ECL Stage 1 & 2 /CP - Non defaulted

Model RiskAdjustment

Macro Provision

FY18 FY19 Q1FY20

Higher net write-backs on corporate loans


Impairment Balance (Balance Sheet) Credit Cost (%) and New Impaired Loans Formation (RM’ mil)

Net Impairment (RM’ mil) Gross Impaired Loans, GIL and LLC Ratios

Asset Quality

2. Includes regulatory reserve

AmBank Group FY16 FY17 FY18 FY19 Q1FY20 Q1FY19

Credit cost (%) -0.19% -0.19% 0.00% -0.30% -0.18%4 0.03%4

Credit cost (excl. recoveries) (%)

0.47% 0.57% 0.47% 0.53% 0.19%4 0.51%4

New Impaired LoansFormation (RM’ mil)

1,418 1,330 1,162 1,123 560 429

RM’ mil

2Loan Loss Coverage

Positive P&L impact in Q1FY20 Negative P&L impact in Q1FY20

Non-performing / impaired assets

Performing assets

Stage 2

Stage 1282

FY18: 943FY19: 1,301

Q1FY20: 1,137

Total ProvisionsRM’ mil

1. Includes macro provisions

253

7.0

(32.4)27.2

24.12.4

57.0

36.1

Q1FY19 ECLStage 1 & 2

ECLStage 3

IndividualAllowance

Recoveries Others Q1FY20

3. W.e.f. Apr’19, macro risk adjustment has been classified as ECL Stage 1

1

3

4. Annualised

590

492

Strong~Very

Strong55%

Satisfactory~Moderate

41%

Marginal~ Substandard

1%

Impaired3%

Strong~Very

Strong51%


44%


4%

Impaired1%

Strong~Very

Strong48%


44%


4%

Impaired4%

8.3

8.3

7.9

FY18

FY19

Q1FY20

3.7

4.4

4.5

FY18

FY19

Q1FY20

1.8

1.6

1.6

FY18

FY19

Q1FY20

Watchful on asset quality


Loans to Real Estate Sector by Internal Risk Grades Loans to Construction Sector by Internal Risk Grades

Impaired Loans by Sector Loans to Oil & Gas (O&G) Sector by Internal Risk Grades

Asset Quality

SectorJun’19

YTD Growth CompositionRM’ mil

Real Estate 317 37% 19%

Residential Properties 410 9% 24%

Transport Vehicles 208 7% 12%

Manufacturing 284 72% 17%

Trading and hospitality 79 34% 5%

Mining and quarrying 55 31% 3%

Construction 72 >100% 4%

Others 248 11% 16%

Total 1,673 3% 100%

Approx. 8% of Total Gross Loans



RM’ bil

RM’ bilRM’ bil

101.8 100.8

0.1 0.6

≈0.2 0.1 0.1 0.2

1.2 0.7

FY19 MidCorp Large Corp &Others

InvestmentBanking

Mortgage Auto Finance Cards Retail SME Others BusinessBanking

Q1FY20

Muted loans growth


Gross Loans Movement (RM’ bil)

Loans

YTD Growth 1% 6% 4% 2% 5% 1% 6% 6% 1% 1%

Composition 14% 18% 2% 34% 14% 3% 3% 2% 10% 100%

LTAF2: 86.5%

Retail ≈1. Annualised2. Loan-to-Available-Funds ratio (LTAF) refers to gross loans (excluding financing funded by Islamic

Investment Accounts and loans sold to Cagamas) divided by deposits plus borrowings and sub debt3. Based on BNM data of Mar’19 – Jun’19 4. Based on BNM data following our financial year end

Wholesale 4%

Breakdown by rate sensitivity:Fixed rate – 25%Variable rate –75%

Breakdown by customers type:Retail – 55%Non-retail – 45%

Breakdown by concept:Islamic – 29%Conventional – 71%

Gross loans trend


YTD Growth Industry

1% 1%3

6% 5%4

6% 4%4

ROA1: 1.11%

RoTA1: 1.13%

96.3

101.8

100.8

FY18

FY19

Q1FY20

41.8 43.5 41.0 41.2 38.8

11.4 11.5 11.8 11.7 11.7

36.0 35.3 43.7 40.8 40.9

9.4 10.510.3 13.2

11.4

98.6 100.8106.8 106.9

102.8

5.5% 5.5% 5.7% 5.5%5.3%

Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20

Retail FD Retail CASA

Non-Retail FD Non-Retail CASA

AmBank Group Deposits Market Share (%)

11.4 11.5 11.8 11.7 11.7

9.410.5 10.3

13.211.4

20.822.0 22.1

24.9

23.1

21.1%21.8%

20.7%

23.3%22.5%


Retail CASA Non-Retail CASA CASA Composition (%)

23.1

24.9

20.4

Q1FY20

FY19

FY18

102.8

106.9

95.8

Q1FY20

FY19

FY18

Reducing excess liquidity buffers


Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%)

Deposits

1. Based on BNM data of Mar’19 – Jun’192. Based on BNM data following our financial year end

Retail DepositMix

53.9% 54.6% 49.4% 49.4% 49.1%

Customer deposits trend CASA trendYTD Growth Industry

4% 1%1

12% 5%2

2% 5%2

YTD Growth Industry

7% 1%1

22% 3%2

3% 6%2

1

Retail CASAMix

54.7% 52.3% 53.5% 47.0% 50.5%

11.3% 11.6% 11.1% 11.9% 11.9%

12.3% 12.5%

16.1% 16.3%

13.6%15.4% 15.4%


CET 1 Tier 1 Total CAR

11.89%11.86%

0.05%

0.11%

0.16%0.02% 0.01%

Q4FY19 Transfer toReg Reserve

from RE

Credit RWA Market RWA Operational &other RWA

Others Q1FY20

133.8 134.8 137.9158.8 156.3

71.2% 72.2% 72.2%

65.0% 66.0%

59.6% 59.5% 59.3% 58.5% 58.4%


Total Assets RWA/Total Assets Peers

Capitalisation adequate


Financial Holding Company CET1

RWA/Total Assets Capital Adequacy Ratios3

Capital

RM’ bil

1. Based on an average of our seven peer domestic banks as at 31 March 20192. FHC RWA/Total Assets

1

4


3. After deducting proposed dividends 4. Aggregated banking entities5. FHC CET 1 and Tier 1 Ratio are the same

FHCAggregated basis4

22

5 555

2

5

Guidance & Expectations


Guidance

8.8%

49.7%

N/A

11.9%

Reported ROE

CTI

Dividend Payout

FHC CET 1

Q1FY20 Actual FY20 Guidance

~ 9%

≤ 52.5%

40% - 45%

11.5% ± 1%

Thank You

Group Performance

43.3 44.137.6

50.0

11.6 13.0

1.05%1.09%

0.91%1.08% 1.10% 1.11%

FY16 FY17 FY18 FY19 Q1FY19 Q1FY20

EPS ROA

3,696 3,766 3,979 3,922

1,014 1,065

36%39% 38%

34% 37% 37%


Total Income Non-interest Income %

1,302 1,325 1,132

1,505

348 391

8.8% 8.5%7.0%

8.8% 8.3% 8.8%


PATMI ROE (%)

58.8% 57.4% 60.8%54.3% 50.6% 49.7%

0.8% -0.6%

12.0%

-12.0% -9.5%

3.1%


CTI Expenses Growth

Yearly performance


Cost to Income Ratio and Expenses Growth (%) ROA (%) and EPS (Basic)

PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%)

Q1FY2020 Results

PATMI: ROE:CAGR FY16-FY19: 4.9% CAGR FY16-FY19: ≈YoY Growth 12.6% YoY Growth 0.5%

Total IncomeCAGR FY16-FY19: 2.0%YoY Growth 5.0%

CTI: Expenses:CAGR FY16-FY19: 1.5% CAGR FY16-FY19: 0.7%YoY Growth 0.9%

ROA: EPS:CAGR FY16-FY19: ≈ CAGR FY16-FY19: 4.9%YoY Growth ≈ YoY Growth 12.5%

1

1. AnnualisedSource : BNM, financial statements

98.4

99.9 100.4

101.8100.8


91.0

96.3

101.8

FY17 FY18 FY19

Net interest margin and gross loans


Quarterly Gross Loans (RM ‘bil)

NIM Trend

NIM & Gross Loans

4.96% 4.94% 5.02%

3.27% 3.26%3.45%

1.98% 2.00% 1.89%

1.69% 1.68% 1.57%

FY17 FY18 FY19

1. Net spread equals to Gross Yield less COF

1

5.08% 5.07% 5.03% 4.92% 4.93%

3.39% 3.47% 3.46% 3.45% 3.37%

2.02% 1.91% 1.88% 1.78% 1.87%

1.69% 1.60% 1.57% 1.47% 1.56%


Gross Yield COF NIM Net Spread

QoQ Growth: 1%YoY Growth: 2%

Retail Banking

18%

Wholesale Banking

66%

Investment Banking 5%

Business Banking

8%

Insurance13%

Group Funding &

Others-10%

ReportedRM391mil

Wholesale Banking

21%

Investment Banking

15%

Business Banking

5%Retail

Banking15%

Insurance & Others

44%

Corporate Banking12%

Group Treasury & Market

10%

Investment Banking

8%

Fund Management6%

Business Banking5%

Wealth Management

5%Cards

5%

Other Retail5%

Insurance42%

Others2%

Non-interest income and PATMI mix


Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY)

NoII & PATMI

1%

93%

9%

1%

4%

>100%

9%

20%

>100%

12%

43%

15%

14%

17%

15%

6%

16%

3%

1

1. After deducting share of minority interests

27%

8%

12%Non-interest

incomeRM395 mil

Total impairments by category (RM’ mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 QoQ Change YoY Change

ECL Stage 1 & 2 / CP – Non defaulted1 (71) (9) 50 (14) (128) >100% 80%

ECL Stage 3 / CP – Defaulted 136 144 138 131 163 24% 20%

Individual Provisions 46 34 (17) (17) 10 >100% 80%

Recoveries (117) (134) (215) (371) (92) 75% 21%

Other Provisions2 13 (24) (7) 1 15 >100% 15%

Total net impairments / (writeback) 7 11 (51) (270) (32) 88% >100%

Total impairments by divisions (RM’ mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 QoQ Change YoY Change

Wholesale Banking (39) (12) (142) (32) (106) >100% >100%

Investment Banking (5) 1 (1) (1) (0) 74% 95%

Retail Banking 42 19 51 (251) 59 >100% 39%

Business Banking 2 1 12 16 14 11% >100%

Group Funding & Others 5 3 32 (3) (1) 75% >100%

General Insurance 2 (1) (2) 0 2 >100% 18%

Total net impairment / (writeback) 7 11 (51) (270) (32) 88% >100%

GIL Ratio (%) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 QoQ Change YoY Change

Wholesale Banking 2.54% 2.27% 2.18% 2.01% 1.90% 11bps 64bps

Investment Banking 0.12% 0.12% 0.13% 0.10% 0.11% 1bps 1bps

Retail Banking 1.26% 1.32% 1.32% 1.28% 1.44% 16bps 18bps

Business Banking 2.41% 2.53% 1.68% 2.18% 2.39% 21bps 2bps

Group 1.77% 1.72% 1.62% 1.59% 1.66% 7bps 11bps

Industry 1.59% 1.53% 1.45% 1.46% 1.57% 11bps 2bps

Impairments


Net Impairment / (Writebacks) and GIL Ratio

Asset Quality

1. Includes macro provision 2. Includes foreclosed property, trade & sundry debtors and provision for contingencies

MFRS 9

LoansComposition 3% 2% 12% ≈ 4% 7% 3% 5% 8% 1% 55% ≈ 100%

YTDGrowth 1% ≈ 1% 24% 1% 1% 4% 4% 5% 20% 1% 2% 1%

Loans by sector vs. industry


Industry (RM’ bil)

AmBank Group (RM’ bil)

Loans

Source : BNM, financial statements

LoansComposition 2% 1% 7% 1% 5% 7% 2% 6% 7% 3% 58% 1% 100%

YTDGrowth 2% 5% ≈ 3% 3% ≈ 2% 5% 2% 4% 1% 1% 1%

AgricultureMining & Quarrying

ManufacturingElectricity,

Gas & WaterConstruction

Wholesale, Retail, Hotels &

Restaurant

Transport, Storage & Com

Finance, Insurance, & Biz Act

Real EstateEducation &

HealthHousehold Others Total Loans

35.6 8.7114.7

12.9 93.3126.7

38.4109.3 117.4

42.7

1,003.9

24.7

1,728.4

Jun-19

3.3 1.7 11.7 0.3 4.4 6.7 2.6 4.77.9 1.9

55.4

0.2

100.8Jun-19

83%

14%

2% 1%

< 6 mth 6-12 mth 1-3 yr 3-5 yr

35%

65%

< 1 yr > 1 yr

Funding profile


LDR / LTAF2

Funding Composition vs. Peers Funding Maturity Profiles

Funding

FY16 FY17 FY18 FY19 Q1FY20 Peers1

Equity & debt capital 16% 16% 16% 15% 16% 16%

Customer deposits 73% 74% 74% 74% 72% 75%

Term funding & loans soldwith recourse

10% 9% 7% 6% 6% 5%

Deposits from banks & FIs 1% 1% 3% 5% 6% 4%

Deposits from Customers, Banks & FIs

Term Funding and Debt Capital

1. Based on an average of seven peer domestic banks as at 31 March 2019

Q1FY20:RM7.8 bil

Q1FY20:RM112.0 bil


LDR2 96.4% 95.3% 98.1% 91.1% 94.5%

LTAF3 83.0% 86.5%

2. Loans-to-Deposits ratio (LDR) refers to gross loans divided by deposits from customers and financial institutions minus interbank borrowings

3. Loan-to-Available-Funds ratio (LTAF) refers to gross loans (excluding financing funded by Islamic Investment Accounts and loans sold to Cagamas) divided by deposits plus borrowings and sub debt

Divisional Performance

181171

243

182

258


Wholesale Banking

Coverage45%

Group Treasury & Markets

30%

Transaction Banking

25%Wholesale

Banking Coverage 36%

Group Treasury & Markets56%

Transaction Banking 8%

Total AssetsRM76.9b


Disbursement Repayment

Wholesale Banking


Total Income (YoY Movement) and Total Assets by Line of Business QoQ PAT (RM’ mil)

Wholesale Banking

Corporate Banking Loan Disbursement and Repayment

Total IncomeRM302 mil

9%

>100%


≈

Wholesale Banking


Balance Sheet (RM’ mil/%)

Income Statement

Key Ratios

Wholesale Banking

YoY Growth 15% 14% 15% 7% 18% >100% 43% 46% 43%

RM' milNet Interest

IncomeNon-Interest

IncomeTotal Income Expenses PBP Impairment PBT Tax PAT

Q1FY20 218 84 302 71 231 (106) 337 79 258

Q1FY19 190 73 263 67 196 (39) 235 54 181

Q1FY20 FY19 YTD Change

Gross Loans / Financing 32,161 33,519 4%

Gross Impaired Loans 611 675 9%

Customer Deposits 45,969 47,797 4%

CASA 9,633 11,196 14%


GIL Ratio 1.90% 2.01% 11bps

CTI 23.6% 26.8% >100bps

Loan Loss Coverage1 42.8% 62.3% >100bps

ROA2 1.42% 1.32% 10bps

Q1FY20 PAT Q1FY19 PAT Positive growth in Q1FY20 Contraction in Q1FY20

1.Includes regulatory reserve2. Annualised

36.2 37.135.7

40.542.4


5.7%5.5%

5.0%4.9%

4.8%

3.9% 3.8%

3.6%3.4%

3.6%

2015 2016 2017 2018 2Q19

Trading Value Trading Volume

Investment Banking


Fund Management – AUM (RM’ bil)

League Table Market Share of Value and Volume Traded on Bursa (KLSE)1

Investment Banking

Market Share1 As At 30 Jun 2019 (%)

Rank2

DCM (Overall MYR Bonds) 7.9% 4

Islamic Sukuk 7.3% 5

Unit Trust 8.3% 5

Stockbroking 4.8% 7

M&A 7.3% 5

Fund Raising 8.0% 4

1. Calendar Year data2. Comparing rank movement with 31 March 2019

Investment Banking



Income Statement

Key Ratios

Investment Banking

YoY Growth 2% 1% 1% 1% 2% 95% 16% 14% 16%

RM' milNet Interest

IncomeNon-Interest


Q1FY20 12 58 70 45 25 (0) 25 5 20

Q1FY19 12 57 69 45 24 (5) 29 6 23




Customer Deposits 822 744 10%

CASA 158 123 28%



CTI 65.0% 71.7% >100bps


ROA2 3.28% 2.23% >100bps

Average AUM 51,392 47,311 9%



Auto13%

Mortgage14%

Cards16%

Personal Financing2%

Deposits41%

Wealth5%

Retail SME8%

Others1%

Auto 26%

Mortgage61%

Cards 4%

Retail SME 5%

Others4%

Total loansRM57.1 bil

76

115

99

282

71


Retail Banking


Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil)

Retail Banking

Total IncomeRM358 mil


3%

≈

11%

22%

19%

2%

19%

16%


Mortgage Auto Finance

-

200

400

600

-

20

40

60

80


Car

ds

in c

ircu

lati

on

Ne

w c

ard

s is

sue

d

New cards issued ('000) Cards in circulation ('000)

2,688 2,764 2,629 2,625 2,553

5351

44

38 37


Merchant volume (RM'mil)

Merchants in force ('000)

675 702

866

677

800


Retail Banking


Credit Cards Mortgage and Auto Finance Quarterly Disbursement

Wealth Sales (RM’ mil) Merchant Volume

Retail Banking

QoQ Growth: 3% YoY Growth: 5%

QoQ Growth: 2% YoY Growth: 30%QoQ Growth: 18%YoY Growth: 19%

Mortgage QoQ Growth: 6%Auto Finance QoQ Growth: 1%

Retail Banking



Income Statement

Key Ratios

Retail Banking

RM' milNet Interest

IncomeNon-Interest


Q1FY20 299 60 359 206 153 59 94 23 71

Q1FY19 293 71 364 222 142 43 99 24 75


Gross Loans / Financing 57,050 56,865 ≈



CASA 11,655 11,677 ≈



CTI 57.4% 57.9% 50bps


ROA2 0.50% 1.01% 51bps

Average AUM 1,328 1,379 4%

YoY Growth 2% 15% 1% 7% 8% 39% 6% 6% 6%



AmBank Islamic

branches

Weekend banking

branches

ATMs @ 7-Eleven

Electronicbanking centres

Internet &mobile banking

AmGeneral AmMetlifeAmInvestment

Bank

AmCardServices

MBC

Distribution Channels


Retail Banking

Branches ATM Regional Offices

Perlis 1 3

Kedah 6 24

Pulau Pinang 14 50 2

Perak 18 45 1

Selangor 36 218 2

Kuala Lumpur 23 100 4

Putrajaya 1 3

Negeri Sembilan 7 39

Melaka 6 34 1

Johor 21 82 1

Pahang 8 28 1

Terengganu 2 14

Kelantan 2 17

Sabah 9 40 1

Labuan 1 3

Sarawak 15 58 1

170 758 14

1. Data shown as at 30 June20192. MBC – Merchant Business Centres

Other Customer Touch Points

Population Density

< 100 persons per km2

101-500 persons per km2

501-1,000 persons per km2

1,001-1,500 persons per km2

> 1,501 persons per km2

2 2 258 179 AmOnline 29 branches4 counters

15 branches40 agencies

6 retail broking7 branches

15

34

37

30

29

30


1,420 1,781 1,861 2,037 2,095

3,019

3,237 3,448 3,654 3,896

4,439

5,018 5,309

5,691 5,991


CASA FD

5,934 6,364 6,833 7,523 7,607

2,060 2,219

2,222 2,441 2,4627,994

8,583 9,055

9,964 10,069


Non-trade Trade

Business Banking


Customer Deposits (RM’ mil)

Gross Loans (RM’ mil) QoQ PAT (RM’ mil)

Business Banking




Business Banking



Income Statement

Key Ratios

Business Banking

YoY Growth 18% 9% 16% 16% 16% >100% 11% 8% 12%

RM' milNet Interest

IncomeNon-Interest


Q1FY20 66 20 86 34 53 14 39 9 30

Q1FY19 56 19 75 29 46 2 44 10 34





CASA 2,095 2,037 3%



CTI 39.0% 37.6% >100bps


ROA2 1.22% 1.52% 30bps




GIF Ratio 2.10% 1.95% 15bps

CTI 35.0% 38.0% >100bps

Financing Loss Coverage1 103.1% 103.2% 10bps

ROA2 0.84% 0.82% 2bps


Gross Financing 28,826 29,330 2%

Gross Impaired Financing 607 573 6%


CASA Deposits 8,818 8,969 2%

Islamic Banking



Income Statement

Key Ratios

Islamic Banking

RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ

Q1FY20 216 76 140 31 109 24 85

Q1FY19 207 87 120 26 94 21 73

YoY Growth 4% 13% 17% 18% 17% 19% 16%

Q1FY20 PATZ Q1FY19 PATZ Positive growth in Q1FY20 Contraction in Q1FY20


194 192

282

242

86100

180170

246

198

72 82


PBT PAT

64% 63% 57% 58% 47% 56%

96% 97%92% 92%

78%

91%


Loss Ratio Combined Ratio

General Insurance


Gross Premium Mix and Growth (RM’ mil)

Loss Ratio and Combined Ratio YoY PBT and PAT (RM’ mil)

General Insurance

1. Includes write-back of prior year tax provisions

1

YoY PBT Growth: 17%YoY PAT Growth: 13%

YoY GWP Growth: 5%YoY Motor Growth: 5%

YoY Non-motor Growth: 5%

82% 81%79% 79%

79% 79%

18% 19%21% 21%

21% 21%

1,567 1,5801,474

1,527

361 378


Motor Non-Motor

Insurance and Group Funding & Others


Income Statement – Group Funding & Others

Income Statement – Insurance (General, Life & Takaful)

Insurance & Others

RM'mil Total Income Expenses PBP Impairment PBT Tax PAT

Q1FY20 198 85 113 2 111 19 92

Q1FY19 182 81 101 2 99 13 86

RM'mil Total Income Expenses PBP Impairment PBT Tax PAT MI PATMI

Q1FY20 50 87 (37) (1) (36) 3 (39) 40 (79)

Q1FY19 61 69 (8) 5 (13) 3 (16) 36 (52)

YoY Growth 9% 5% 12% 18% 11% 39% 7%

YoY Growth 19% 26% >100% >100% >100% 32% >100% 13% 53%


Shareholding structure


Corporate Structure

AMMB Holdings Berhad

23.8%1 AmCorp 13.0% PNB 8.9%2 EPF 7.6% Others 46.7%

100% AmBank (M) Berhad

100% AmInvestment Group Berhad

100% AmInvestment Bank Berhad


26% 26% 23% 26% 27%

1.ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited2.Based on amalgamation of shares held by funds managed by PNB3.MetLife owns 50% plus one share in AmMetLife Insurance Berhad, with the remaining shares held by AmBank Group, and AmBank Group owns 50% plus one share in AmMetLife Takaful Berhad, with the remaining

shares owned by MetLife

Foreign shareholding excluding ANZ

100% AmBank Islamic Berhad

100% MBF Cards (M’sia) Sdn Bhd

33.33% Bonuskad Loyalty Sdn Bhd

100% AMAB Holdings Sdn Bhd

51% AmGeneral Holdings Berhad

~50% AmMetLife Takaful Berhad3

~50% AmMetLife Insurance Berhad3

100% AmGeneral Insurance Berhad

49%

~50%

~50%

As at 28 June 2019

Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful

4.12 4.39 4.40 4.50 4.60 4.65 4.70 4.70 4.70 4.70 4.75 4.80 4.90 5.08 5.10 5.20 5.28

UOB CIMB CLSA MIDF HLIB RHB JP KAF MBB TA ADBS AFFIN PIVB CITI KEN NOMURA MACQ

Credit ratings, target price and recommendations


Ratings & Target Price

Credit Ratings

Target Price and Recommendations

Buy / Outperform / Overweight / AddAverage target priceSell / Underperform / Fully valued / Reduce / Underweight

Hold / Neutral / Market perform / Equalwt / In line Source Bloomberg, Research House Report as at 30 June 2019

P/EPS : 8.45 Closing Price: RM 4.23 Average TP : RM 4.74

P/BV : 0.72 Market Cap: RM 12.75 bil Buy : 7 (41%)

Hold : 9 (53%)

Sell : 1 (6%)

Ave. TP/ Ave. CP : 1.08x

Q1FY20Ratings

AMMB AmBank (M) AmBank Islamic AmInvestment

RAM LT: AA2*, ST: P1 Outlook: Stable

*upgraded on 19 Dec 2018

LT: AA2, ST: P1Outlook: Stable

LT: AA2, ST: P1 Outlook: Stable

LT: AA2, ST: P1 Outlook: Stable

S&P LT: BBB+, ST: A-2Outlook: Stable

Moody’s LT: A3*, ST: P-2Outlook: Stable*BCA: baa2*Adj BCA: baa2

*upgraded on 28 Mar 2019

RH1 RH2

Glossary & Disclaimer of warranty and limitation of liability


Glossary & Disclaimer

Reported PerformanceReported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market

Growth DefinitionQoQ/YTD growth refers to Q1FY20 vs Q4FY19YoY growth refers to Q1FY20 vs Q1FY19

Disclaimer on rounding differencesNumbers may not add up due to rounding

The information has been prepared by AMMB Holdings Berhad (AmBank Group or the Group) for information purpose and is believed to be correct at the time of presentation. No representationor warranty, express or implied, is given by or on behalf of AMMB Holdings as to the accuracy and completeness of the information or opinion contained in this presentation.

This presentation does not purport to contain all information that may be required to evaluate AmBank Group or its financial position and should not be construed as an offer or recommendationto buy or sell securities. Neither does this presentation to form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

Certain statements in this presentation may contain forward-looking statements. These forward-looking statements are based on current beliefs and expectations of the Group and are subject tosignificant risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

The term “AMMB Holdings” and “AmBank Group” denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to thefinancial institutions under AMMB Holdings.

For further information, visit www.ambankgroup.com;

or contact

Chelsea Cheng Chuan Shing

Head, Group Finance – Investor Relations

Tel : +603 2036 1425

Fax: +603 2070 8262

Email: [email protected] / [email protected]

Teng Li Lin

Vice President, Group Finance – Investor Relations

Tel : +603 2036 1435

Fax: +603 2070 8262

Email: [email protected]

http://www.ambankgroup.com/

mailto:[email protected]



q1fy2020 results · 13% • encouraging start to fy20 with double digit profit growth roe 8.8%...

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