FINAL SLIDES FY 2015 RESULTS PRESENTATION TO ANALYSTS/FUND MANAGERS 7 MARCH 2016

Transcription

1 FINAL SLIDES FY 2015 RESULTS PRESENTATION TO ANALYSTS/FUND MANAGERS 7 MARCH 2016

2 Key Highlights Financial Performance Strategic Focus Updates on Affin Hwang Capital 2

3 Key Highlights Financial Performance Strategic Focus Updates on Affin Hwang Capital 3

4 Key Highlights Income Statement ( RM mil ) Change ( % ) Profit Before Tax and Zakat (35.6) Net Profit (36.1) Earnings per share ( sen ) (44.9) Balance Sheet ( RM bil ) Dec 2015 Dec 2014 Change ( % ) Total Assets Gross Loans, advances & financing Deposits from customers (0.2) Key Financial Indicators Dec 2015 (%) Dec 2014 (%) Change (%) ROA after tax (0.3) ROE after tax (3.7) Cost-to-income ratio Gross impaired loans ratio Impaired Loan Loss Reserve (11.6) Loan to deposits ratio

5 Key Highlights Dividend Change (%) Total dividend per share ( sen ) (46.7) Total dividend payout ( RM mil ) (46.7) Dividend payout ratio *67.2% 58.4% 67.1 Note * : Based on total dividends paid and proposed for the financial year ended 31 December

6 Key Highlights Capital Adequacy CET 1 / Tier 1 / CCR Dec 2015 Dec 2014 Industry ave. (Dec 2015) AFFIN Bank Berhad 11.93% 12.32% 13.08% AFFIN Islamic Bank Berhad 13.20% 12.46% 11.54% AFFIN Hwang Investment Bank Berhad 32.07% 30.72% 32.69% Total Capital Ratio Dec 2015 Dec 2014 Industry ave. (Dec 2015) AFFIN Bank Berhad 14.33% 13.56% 15.26% AFFIN Islamic Bank Berhad 14.41% 13.67% 12.20% AFFIN Hwang Investment Bank Berhad 32.07% 30.72% 33.06% 6

7 Key Highlights Financial Performance Strategic Focus Updates on Affin Hwang Capital 7

8 RM Million PBT/PAT over the past 5 years CAGR PBT -3.7% PAT -4.4% PBT PAT 8

9 RM Million SEGMENTAL PROFITS BY SUBSIDIARIES PROFIT BEFORE TAX AND ZAKAT AFFIN Bank Group AFFIN Bank Group AFFIN Hwang IB Group * COMMENTARY AFFIN Moneybrokers Higher impairment allowance and decrease in other operating income due to volatility in the market condition. AFFIN Hwang Investment Bank Group 2015 PBT is the first full-year result post-merger between AFFIN Hwang Investment Bank and HwangDBS Investment Bank * PBT is before adjustments totaling RM24.5 million (FY 2014: RM18.5 million) at AFFIN Group level mainly comprised of fair value adjustment on held-to-maturity securities and amortisation of identifiable intangible assets upon the completion of purchase price allocation in relation to the acquisition of HwangDBS Investment Bank Berhad in

10 RESULTS OF JOINT VENTURE COMPANY AXA AFFIN LIFE INSURANCE BERHAD PBT 8.9 RM Million (35.8) COMMENTARY AXA AFFIN Life Insurance Berhad Business indicators continued to be encouraging in Gross Premiums grew 10%. Double digit growth in both first year and renewal year premiums. All distribution channels grew, contributed to overall 15% new business growth and outperformed the industry. New Business Value grew 21% with higher proportion of margin protection and health products. PBT impacted by measures taken to strengthen policyholders fund to support the future benefits of policyholders and lower gains on disposal of investment securities. 10

11 RESULTS OF ASSOCIATE AXA AFFIN GENERAL INSURANCE BERHAD PBT RM Million COMMENTARY AXA AFFIN GENERAL INSURANCE BERHAD Achieved GWP of RM1.33 billion in 2015, a growth of 17.7%. Currently ranked 5 th and is the fastest growing insurer in the market. Main drivers in 2015:- - Group Health (growth of 29%) - Motor (growth of 21%) - Motorcycle (growth of 33%) PBT is lower in 2015 due to lower underwriting results and forex losses, offset by higher investment income. 11

12 RM Million Income composition 3,000 2,500 2,535 2, % 2,000 1, , % % % - Interest Income Fees and brokerage Income Income from financial instruments Other income 12

13 Margin Compression 3.20% Net Interest Margin 2.48% 2.40% 2.25% 2.17% 2.10% 2.02% 1.93% 1.60% 0.80%

14 Cost-to-income ratio Establishment 24% Promotion & Mktg 12% Personnel 55% 2015 RM mil 2014 RM mil Change (%) Personnel Admin & General (13.2) Promotion & Mktg Establishment Total * 1, Admin & General 9% 46.9% 47.7% 46.0% 47.0% 54.8% 60.2% * The increase in overhead expenses was mainly attributable to the full year s operation of Affin Hwang Investment Bank Berhad in 2015 vs. 9 months in

15 Steady loans, advances & financing growth CAGR 12.3% % % 11.7% 10.4% 10.6% 7.9% 9.6% 8.7% 7.9% 6.9% AFFIN Industry 15

16 Steady loans, advances & financing growth Loans, advances & financing by business segments Composition as at Dec 31, 2015 RM billion Consumer 45.8% Corporate 54.2% Consumer Corporate 16

17 Loans, advances & financing consumer segments Composition as at Dec 31, 2015 Hire purchase loans (RM billion) CAGR 10.8% Others 9.5% Mortgage 30.8% Hire Purchase 59.7% Mortgage loans (RM billion) CAGR 11.8%

18 Loans, advances & financing Corporate Loans CAGR 14.5% (RM billion) Corporate 18

19 Improving asset quality Net Impaired Loan ratio (%) FY2011 FY2012 FY2013 FY2014 FY2015 As at 31 December 2015, the Group s net impaired loan ratio is favourable as compared to the industry of 1.32% 19

20 Monitoring asset quality Gross NPL/Impaired Loans RM Million Gross Impaired Loan Ratio-AFFIN vs. Industry (%) % AFFIN Industry 20

21 Total deposits CAGR 10.4 % Composition as at Dec 31, Others 17.8% CASA 19.2 % CASA FD Others FD 63.0% 21

22 Deposits at AFFIN Bank s level Current Account (RM billion) CAGR 10.2% CASA Deposits (RM billion) CAGR 9.8% Savings Account (RM billion ) CAGR 8.6%

23 Loans to deposits ratio Gross Loan/Deposit from customers ratio AFFIN vs Industry % AFFIN Industry

24 Key Highlights Financial Performance Strategic Focus Updates on Affin Hwang Capital 24

25 AFFIN s Growth Strategy AFFIN s strategy; to optimise shareholder returns, to develop a rigorous financial services landscape and provide service excellence. Robust organic growth Service excellence Innovation Resource optimisation Achieved through overall business remodelling with emphasise on key business segments Critical customer interactions must be orchestrated to impart memorable positive experiences Precision and accuracy, scalable and reliable Adopt a performance based culture in human capital through streamlining manpower Attained through a needs-based development of a complete product suite Strong core products that are simple to understand, hasslefree, offer utility and value as customer progresses through life stages Solution oriented, segment relevance, value long term relationship, satisfy current needs and prepare for future aspirations Develop talent pool, hire best in class & promote key competencies 25

26 Transformation Program Objectives Affin Bank/Affin Islamic 1. Creating a discernible impact in the marketplace- change in scale and performance along key measures 2. Establishing a cohesive franchise across distribution channels, products and customer segments 3. Aligning assets and resources to deliver on planned goals 4. Fostering a culture and governance which will enable ownership and accountability for results 5. Increasing staff engagement to create a sense of ownership of the destiny and future of Affin Bank Group 6. Elevating leadership to drive changes required to achieve the transformation objectives 26

27 Transformation Program Holistic Change To create the necessary impact and outcomes which are sustainable over the long term, the Transformation Program aims for major and deep-seated changes which cover an end-to-end view of the business. Performance Comprehensive Competency Culture Coherent Technology Business Process Organization Cohesive 27

28 Building a Strong Brand Franchise & Scale Brand positioning Research & advisory Network expansion Technology & innovation Market positioning Human capital Market segmentation Product differentiation 28

29 Key Highlights Financial Performance Strategic Focus Updates on Affin Hwang Capital 29

30 We aim to remain a Top 3 equity brokerage house in Malaysia We maintained our position as the top equity brokerage house in our domestic market despite strong competition and a challenging market environment We retained our #1 position for total value and volume traded in the domestic market in 2015 Bursa Malaysia Broker Awards 2014 Best Equities (Investment Bank) 2015 Bursa Malaysia Broker Awards 2014 Best Institutional Equities (Investment Bank) 2015 Volume Traded Value Traded (Volume in % Market Share) AHC RHB Kenanga CIMB Maybank TA Hong AM Public CS 4.78% 4.05% 2.65% 1.26% % 8.97% 7.71% 13.66% 12.22% % (Volume in % Market Share) (Value in % Market Share) AHC CIMB RHB Maybank Kenanga CS AM Hong Leong TA UBS 4.25% 4.10% 3.04% 6.07% 5.38% 9.52% 9.23% 9.06% % 10.98% (Value in % Market Share) Source: Bursa Malaysia as of December

31 We embark on partnerships to expand our regional foothold We have taken steps to broaden our equity trading coverage through alliances with our key strategic partners Daiwa Securities (Japan, Hong Kong, Singapore) and Thanachart Securities (Thailand) Thanachart Securities Plc. ("Thanachart"), a wholly-owned securities subsidiary of Thanachart Bank in Thailand, operates securities businesses including securities brokerage, securities analysis service, proprietary trading, securities borrowing and lending and investment advisory service. Through Our Partnership: Equity Trading Capabilities on the Stock Exchange of Thailand ( SET ) for our institutional investors Sole Distributor of Thanachart s Research of SET-listed companies to our institutional investors (on a co-branded basis). Corporate Access by Thanachart & Affin Hwang Capital to Malaysian & Thai investors bases Daiwa Securities Group ( Daiwa ) is one of the leading, comprehensive financial service firms in Japan and across Asia. Daiwa operates core businesses such as Retail, Global Markets, Global Investment Banking, Asset Management, and Investment. Through Our Partnership: Equity Trading Capabilities on all exchanges of which Daiwa has a presence for our institutional investors Sole Distributor of Daiwa s Global Research to our institutional investors (on a co-branded basis). Corporate Access by Daiwa & Affin Hwang Capital to Malaysian & global investors bases 31

32 We continue to strive for consistent AUM growth and performance Our Asset Management business has continued to perform well: AUM growth is resilient despite market conditions, and continues to win accolades for performance and excellence Affin Hwang AM & AIIMAN are recognised as one of the top fund houses in Malaysia for 2015 and 2016 Euromoney Private Banking Survey Best Asset Manager In Malaysia 2016 AsianInvestor Asset Management Awards Fund House of the Year (Malaysia) 2015 IFN Islamic Investor Awards Best Islamic Asset Management Company in Asia 2015 Affin Hwang AM and AIIMAN have a strong track record of AUM growth CAGR: 43.4% 32

33 Building a strategic relationship with Daiwa A submission has been made to BNM on 29 February 2016 on the proposed acquisition of a minority stake in Affin Hwang Investment Bank Berhad by Daiwa Securities Group Inc. or one of its wholly-owned subsidiaries Potential Value Add to Shareholder Solidify Existing Working Relationships Expand Our Capabilities & Network Enable Us to Expand within ASEAN Transfer of Market Best Practices Daiwa s presence in over 20 countries across Asia Pacific, Europe and North America can potentially enable AHC to benefit from Daiwa s global business and operational expertise Daiwa strongly anchors its performance on robust risk management by establishing rules to govern all activities within the Daiwa group Develop Global Perspective Development of Global Perspectives Transfer Market Leading Best Practices AHC can potentially benefit from Daiwa s global perspective in crafting business strategies in line with the evolving Malaysian financial market and regional growth plans. 33

34 THANK YOU 34