Dato Sri Abdul Wahid Omar President & CEO

Transcription

1 50 th Annual General e Meeting Dato Sri Abdul Wahid Omar President & CEO 29 September 2010

2 FY2010: Exceeding our targets Headline KPIs Targets Achievements Return on Equity Revenue (net income) growth 11% (revised to 13%) 8% (revised to 15% normalised) 13.6% 22.4% (15.7% normalised) Other targets Targets Achievements Gross Loans growth High single digit 10.3% Net Interest Margin Stable +10 bp to 2.82% Asset quality Charge off rate: bps 53 bps Dividend Dividend payout : 40 60% 76.5% 1

3 We are the leading bank in Malaysia Total Assets (RM bn): 30 June 2010 Net Loans (RM bn): 30 June 2010 MAYBANK Maybank CIMB Public RHB Cap AMMB HL Bank EON Cap Affin Alliance MAYBANK Maybank CIMB Public Bank RHB Cap AMMB HL Bank EON Cap Affin Alliance Deposits (RM bn): 30 June 2010 Market Capitalisation ti (RM bn): 24 Sep 2010 MAYBANK Maybank CIMB Public Bank RHB Cap HL Bank AMMB EON Cap Affin Alliance MAYBANK Maybank CIMB Public Bank AMMB RHB Cap HL Bank EON Cap Alliance Affin

4 and among the Top 10 Banks in the Region Total lassets (RM bn): 30 June 2010 Net Loans and Deposits (RM bn): 30 June 2010 * SBI DBS OCBC UOB * ICICI Maybank CIMB Public Bank RHB Cap No.6 1,052 * SBI DBS UOB OCBC Maybank * ICICI CIMB Public Bank RHB Cap No Net Loans Net Deposits PATAMI (RM bn): (12 mths to June 2010) Market Capitalisation (RM bn): 24 Sep 2010 SBI UOB OCBC Maybank ICICI CIMB DBS Public RHB Cap No SBI ICICI DBS OCBC UOB Maybank CIMB Public No * As at 31 Mar 10 3

5 Share price rose 28% in FY2010 Maybank s share price rose 28.1% during FY2010 and 46.1% from 30 June 2009 to date Sep 09: Maybank s 49 th AGM +46.1% 30 Jun 10 X RM8.62 RM % X RM X X RM6.65 RM Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 4

6 Introduction Financial i Performance The Way Forward Prospects 5

7 Record PATAMI of RM3.8 billion RM million FY10 30 Jun 10 FY09 30 Jun 09 YoY change 4Q10 30 Jun 10 3Q10 31 Mar 10 QoQ change Net interest income 6, , % 1, , % Income from Islamic Banking 1, , % % Non interest income 4, , % 1, , % Total net income 12, , % 3, , % Overhead expenses (6,412.1) (5,559.2) 15.3% (1,616.4) (1,586.1) 1.9% Loan Loss Provision & Impairment on securities (1,211.0) (1,896.3) 36.1% (334.6) (173.0) 93.4% Operating Profit 5, , % 1, , % Write off and impairment losses on goodwill and investment Share of profits in associates (1,972.6) % % Profit Before Tax 5, , % 1, , % Profit After Tax and Minority Interest (PATAMI) 3, % , % Normalised PBT % 1, , % 6

8 Broad based Growth Record profits due to improved performance across all business segments 8.3% 302.2% 30.5% 135.1% 34.8% 18.8% on RM millio 7

9 Strong Profit growth from home markets 239% Profit Before Tax by Geographical Locations 4,243 (1.3%) RM million 1, % 290% (4.4%) International: 21.0% (15.2%) (79.0%) Malaysia Singapore Indonesia (BII) FY09 FY10 8

10 Consumer Banking: Housing Loans and Auto Loans 16% 15% 14% 13% 12% 11% 10% Housing Loans market share stabilising 14.9% 1.0% 13.9% 0.5% 13.4% RM millio on Uplift in new housing loans 400 FY09: RM0.63 bil % uplift FY10: RM2.14 bil. 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 FY08 FY09 FY10 Housing includes other mortgage loans Improving auto loans market share 18% 17.4% 17% 16.8% 16% 15.7% 15% 14% FY08 FY09 FY10 RM millio on 1, Uplift in new auto Loans FY09 RM1.98 b 25% uplift FY10 RM2.48 b 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 9

11 Business and Corporate Banking Loansgrowth led by Commercial and Corporate Banking Growth spearheaded by term loans lion RM bil Trade Bills STRC OD 0.3% 2.6% 1.4% FY10 FY09 Term Loans 17.8% Diversified loans by economic sector Improvement in Asset Quality (Gross NPL ratio) Transport & Comm. 8% Wholesale & Retails Trade 12% Construction 15% Utilities 7% Finance, Insurance, Real Estate 27% Manufacturing 23% Education & Health 2% Sectors N.E.C 2% Primary Agriculture 4% 10

12 Insurance and takaful Market Share: No. 1 in Life/Family (new business) Market Share: No. 1 in General Source : ISM Report Combined Gross Premium grew 27% YoY Combined Gross Premium Regular Premium Single Premium +54% +8% Life/Family +27% Overall Loss Ratio Lower Than Industry 55.3% (Maybank) vs 61.3% (Industry) Industry 61.3% 79.5% Total Life/Family Motor Fire Total General +8% +23% +33% FY % FY09 General 29.1% +16% 26.4% RM billion

13 Islamic Banking RM millio n Income and PBT +20% +12% RM billion Maybank Islamic financing (YoY growth) +17% FY09 FY % 15% +63% % +59% AITAB House Term Cash Trade Term Financing Financing Line-ii Financing Financing Am Islamic, 7% Leading market share (by Total Assets) Others, 42% Maybank Islamic, 17% Public Islamic, 11% Maybank Islamic s Total Asset grew 28% to RM44.5 bil. in FY10 CIMB Islamic, 12% Bank Islam, 11% Consumer: +16% Business: +14% Improving key ratios for Maybank Islamic Financing to Deposits Ratio FY10 FY % 105.0% Islamic Financing to Total Domestic 24.2% 2% 20.5% Loans 12

14 Singapore PBT rose 36% yoy Diversified LoanPortfolio llion SGD mi +36% n SGD billio % Others Car loans Housing Loans 5 0 FY09 FY10 General Commerce Building & Construction Loans Growth exceeds Industry Maybank Singapore Growth Asset Quality improving 13

15 Bank Internasional Indonesia Income Statementt t Rp Billion Jul 09-Jun 10 Contribution Jul 08-Jun 09 Contribution Interest t income ,065 4,915 Interest expense (2,753) (2,727) Net interest income 3,312 2,188 Non-interest income 1,762 1, Gross Operating income 5,074 3,375 Operating expenses (excluding prov.) (3,419) (2,147) Operating income before provision 1,655 1,228 Provisions (1,048) (1,082) Profit before taxation and zakat Net profit Note: Based on income statement consolidated into Group accounts. The accounts of BII were consolidated into Maybank Group beginning October 2008 after the acquisition of the 56% in BII was completed at the end of September In early December, Maybank completed the acquisition of 97.5% of BII. 14

16 Bank Internasional Indonesia Gross Loans: Composition (Rp trillion) and growth (+36%) (+37%) (+33%) (+4%) (+67%) (+33%) 0.5 Asset Quality 2.00% 3.20% 2.79% 4.74% 3.46% 3.49% 1.85% 1.90% 2.39% 1.56% 2.79% 2.88% 1.92% 1.87% Jun 09 Dec 09 Jun 10 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Corporate SMEC Consumer Syariah Gross NPL Net NPL Net Interest Margin 6.85% 6.15% 6.41% 6.62% Branches and ATM 6.10% 5.91% 5.90% Branches ATM + CDM 430 Local Statutory report & Local Accounting Policy NIM 2Q10 = 5.70% 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 De ec-08 Ma ar-09 Ju un-09 Se ep-09 De ec-09 Ma ar-10 Ju un-10 Ju un-11 Ju un-12 Projected 15

17 Introduction Financial i Performance The Way Forward Prospects 16

18 Transformation Journey 2008 Phase 1 LEAP30 Creates Momentum CEO driven agenda 1st wave target to deliver PBT impact to Groupwide performance. Building up project execution capabilities. Centralised Transformation office as key driver of change. 30 initiatives cutting across all areas 2010 Phase 2 Converging Aspirations. Active Sectoral Participation Sector driven agenda agenda framed and owned organisationwide. Sectors become key drivers of change. Execution led by sectors and supported by the Transformation team Beyond Transformation 17

19 Reframing our Vision, Mission and Strategic Objectives By 2015 Our Vision To be a Regional Financial Services Leader Our Mission Humanising Financial Services from the Heart of ASEAN Strategic Objectives 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by Leading ASEAN wholesale l bank eventually expanding to Middle East, China & India 3. Domestic Insurance Champion and emerging regional player 4. Truly regional organisation, with ~40% of pre tax profit derived from international operations by Largest til Islamic bank kin ASEAN 18

20 Our Mission Humanising Financial Services from the Heart of ASEAN Providing the people with access to financing Fair terms and pricing Being at the heart of the community 19

21 Strategic Objectives: Retail Financial Services 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by 2015 Grow market share of individual and non retail deposits domestically and leverage on shared distribution synergies Re align SME market segment focus. 20

22 Strategic Objectives: Wholesale Banking 2. Leading ASEAN wholesale bank eventually expanding to Middle East, China & India Ramp up universal wholesale banking model growth in core ASEAN markets Strengthen transaction banking franchise Grow investment banking capabilities and deals 21

23 Strategic Objectives: Insurance and takaful 3. Domestic Insurance Champion and emerging regional player Gain leadership in domestic insurance business Market Share: No. 1 in Life/Family (new business) Market Share: No. 1 in General Source : ISM Report 22

24 Strategic Objectives: International Operations 4. Truly regional organisation, with ~40% of pre tax profit derived from international operations by 2015 For Indonesia, achieve leadership in 5 key business segments by 2015 Plan to expand into Middle East, China and India at the right time and right opportunity. Ramping up Universal Wholesale Banking model in Singapore and Indonesia. Regional Center of Excellence to enhance global market trading activities Full llintegrated t end to end d regional ltrade finance and cash management platform Effective IT infrastructure and risk management systems. 23

25 Strategic Objectives: Islamic Banking 5. Largest Islamic bank in ASEAN Maybank Islamic is Malaysia s largest Islamic financial services provider. Maybank Islamic s Total Asset grew 28% to RM44.5 bil. in FY10. Others, 42% Maybank Islamic, 17% Public Islamic, 11% Conversion of Bank Maybank 11% Indocorp into Maybank Syariah Indonesia. CIMB Islamic, 12% Am Islamic, 7% Market share by Total TtlAssets Bank Islam, 11% 24

26 New Group Organisation Structure to support aspirations Maybank Group CEO + Support (CFO, CRO,GHC, Legal, Compliance, Communications) ISLAMIC INSPIRED INTERNATIONAL EXPANSION Community Financial Services Leveraging shared distribution, Customer Segment driven, Community Bank Global Wholesale Banking Regaining domestic leadership and aggressively pursuing ASEAN market expansion by humanising client interaction Insurance & Takaful Being the National Insurance Champion and Living the ETIQA way E N A B L E M E N T Enterprise Transformation Services 25

27 Expanded Group Executive Committee with key divisions represented 26

28 Introduction Financial i Performance The Way Forward Prospects 27

29 Malaysia: Economic Rebound GDP to rebound with 7.5% growth in 2010; 6.1% in 2011 Inflation expected to rise to 2.0% in 2010 (2009: 0.6%) 150 Quarterly GDP and annual growth rate 12 CPI and components (% YoY) (3) 100 (6) 90 (9) 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q RMb (LHS) % YoY (RHS) % QoQ (RHS) After July 8 hike to 2.75%, interest rate is not Ringgit to expected to rise to RM by year end expected to rise in the next 9 12 months Ringgit Malaysia per USD Overnight Policy Rate: Bank Negara Malaysia Overnight Policy Rate Overnight Policy Rate: Bank Negara Malaysia 25bp hikes in Mar, May and July Apr-0 Aug-0 Dec-0 Apr-0 Aug-0 Dec-0 Apr-0 Aug-0 Dec-0 Apr-0 Aug-0 Dec-0 Apr-0 Aug-0 Dec-0 Apr-0 Aug-0 Dec-0 Apr-1 Aug-1 01-Jul Nov Mar Jul Nov Mar Jul Nov Mar Jul Nov Mar Jul Nov Mar Jul

30 Economic Transformation Plan (ETP): Economic targets Stth Sets the key economic targets t for the next 10 years Malaysia s real GDP needs to grow by 6% p.a. Lifting per capita income to USD15,000 (2020) from USD6,700 (2009) Malaysia: Increase in GNI Between 2009 and 2020 via 6% p.a. Real GDP Growth to Double Per Capita Income 600 USD523b (RM1,733b) USD188b (RM661b) Per Capita Income Per Capita Income USD6,700 (RM23,770) USD15,000 (RM48,000) : 29

31 Economic Transformation Plan (ETP): Banks to benefit Banks to benefit from the filtering down of a larger domestic economic activity base Potential loan base of RM1.29 trillion Based on RM1.4 trillion investment requirement under the ETP ( ) Of which 92% is targeted to come from the private sector (8% from public sector) Banks to also benefit indirectly from enlarged activities under the 10 Entry Point Projects (EPP) for Financial Services NKEA: Revitaliseequity equity markets Deepen and broaden bond markets Transform development financial institutions Create integrated payment eco system Insuring our population Accelerate private pensions Spur growth of wealth management Kick start and sustain an asset management industry Create regional champions Global Islamic financial hub 30

32 Prospects for FY2011 Recovering regional economies to spur demand with loans growth of 12% in Malaysia, 24% at BII and 5% in Singapore. International contribution is expected to increase mainly from 2 key home markets of Singapore and Indonesia and leveraging on Global Wholesale Banking platform. Islamic Banking is identified as key differentiator with target financing growth of 25%. Margins expected to be stable. 31

33 Prospects for FY2011 The reframed vision and mission supported by new organisation structure is expected to drive growth. Investment in people, technology and processes to realise vision and strategic objectives, with efforts to reduce costs through synergies and centre of excellence. Dividend Reinvestment Plan in place to ensure robust capital adequacy. Two Key Performance Indicators (KPIs) for FY2011: Group s loans and debt securities growth of 12% and ROE of 14 %. 32

34 Basel III: Maybank able to comply Lt Latest tproposals Impact on Maybank k(bank level) l) 1. Minimum Core Equity Ratio (CER) of 4.5% by Staggered implementation of capital conservation buffer up to 2.5% in Minimum Risk Weighted Capital Ratio (RWCR) to remain at 8%. 1. Proforma CER as at 30 June 2010 above 10%. Going forward, expect to meet minimum CER of 7% without any equity capital raising. Awaiting clarity of Basel III rules on capital securities and sub debt. db 2. Minimum leverage ratio of 3% 2. Proforma leverage ratio of 48% 4.8% (31 March 2010), well above min. 3% requirement. 3. Introduction of Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSF) in 2015 and 2018 respectively. 3. LCR and NSF ratio at above 100%. 33

35 Key Performance Indicators (KPI) for FY2011 Headline KPIs Rt Return on Equity 14% Loans and Debt Securities Growth 12% Oh Other targets Loans Growth Malaysia 12% Singapore 5% BII 24% Net Interest Margin Stable Dividend Payout Ratio 40% 60% Note: Loans growth for Singapore and BII are in local currency 34

36 As we celebrate our 50 th anniversary ar in 2010, Maybank has proven its worth as a bank built on an unshakeable foundation capable of withstanding crises, and always delivering on its promise. 35

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38 Thank You 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. MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak Kuala Lumpur, Malaysia Tel : (6) Khairussaleh Ramli Chief Financial Officer Contact: (6) khairul@maybank.com.my Hazimi Kassim Head, Strategy and Corporate Finance Contact: (6) hazimik@maybank.com.my Raja Indra Putra Head, Investor Relations Contact: (6) rajaindra@maybank.com.my 37