Humanising Financial Services Across Asia 52 nd Annual General Meeting Presentation to Shareholders Dato Sri Abdul Wahid Omar President and CEO 29 March 2012 0 0 www.maybank.com
For the 6-month financial period We posted another record profit despite challenging global economic conditions Exceeded d our headline Key Performance Indicators (KPIs) Consolidated our position as one of the top ASEAN Banks and maintained pole position in Malaysia Achieved improvements regionwide across all our business segments Note: All growth references to P&L items are for 6-month Financial Period 2011 (FP11) ended 31 Dec 2011 against 1H (6-month) FY11 ended 31 Dec 2010; all growth references to Balance Sheet items are annualised growth for 31 Dec 2011 against 30 Jun 2011 1 1
Headline KPIs Target Achievement Target Met Return on Equity (ROE) Loans and Debt Securities Growth 16% 16.2% 12% 16.3% 2 2
Presentation to Shareholders Financial Performance Strategy Prospects 3Financial Results: 6-Month Financial Period ended 31 December 2011
RM2.58 billion Profit Attributable to Shareholders 2.15 b 20.0% 0% 2.58 b 6m FY11 6m FP11 4 4
489 RM4.89b 783. RM7.83b +16.2% Fund based Income +21.6% 294 RM2.94b Revenue (Net Income) +32.0% Fee based Income 5 5
RM7.83b +21.6% Revenue (Net Income) +16.2% excluding Kim Eng RM3 94b +25.7% RM3.94b Higher Overhead Expenses +13.8% excluding Kim Eng RM0 33b -13.9% RM0.33b Lower Allowances for losses on loans 6 6
20.1% RM3.56 billion 2.97 b 3.56 b Profit Before Tax 6m FY11 6m FP11 7 7
22% 2625 Stronger PBT growth in our Home Markets 2143 RM mil llion 414 38% 67% 33% 569 304 100 166 203 Malaysia Singapore Indonesia Others 6m FY11 6m FP11 8 8
PBT contribution from International increased to 27% International:27% Indonesia Others 5% 6% Singapore 16% RM3.56b 73% Malaysia 9 9
PBT growth across all business pillars 18.0% 1,432 1,689 7.8% 19.4% 1,160 1,250 977 6m FY11 6m FP11 llion 818 977 323.1% RM mi 91 386 Community Global l Wholesale l International Insurance, Takaful Tkfl Financial Services Banking Banking & Asset Management 1010
Loans growth of 16% driven by International al 16.2% 8 261.5 282.8 10.0% Jun 11 Dec 11 RM bill lion 170.1 178.6 28.7% 102.2 89.4 Gross Loans Malaysia International 1111
Domestic Loans driven by Consumer Segment RM billion Malaysia 178.6 Annualised Growth 10.0% Community Financial Services 120.7 14.4% 4% Consumer 94.9 15.9% Mortgage 42.1 18.1% Auto Finance 27.7 12.8% Cards 5.3 17.6% Unit Trust 18.5 16.3% Business Banking / SME 25.8 9.1% Global Wholesale Bkg (Malaysia) 57.77 12% 1.2% 1212
Community Financial Services Improving towards becoming the undisputed No.1 Retail Financial Services Provider Domestic Market Market Growth Value Position Share (annualised) (RM billion) Mortgage No.3 13.2% 18.1% 1% 42.1 Auto Finance No.2 19.4% 13.3% 3% 27.22 Cards Receivables No.2 15.3% 17.7% 7% 5.2 Unit Trust No.1 63.9% 16.3% 18.5 Business Banking/SME No.2 19.2% 9.1% 25.8 1313
Global Wholesale Banking We target to be a regional wholesale banking powerhouse by 2015 Retained domestic leadership Grew wholesale deposits through enhanced cash management Began integrating Maybank Kim Eng, leveraging on its regional distribution ib ti 1414
Global Wholesale Banking Loans growth driven by Term Loans and STRC & Overdraft Loans grew 1.2% to RM57.7 billion Rising Trade Finance Market Share 23.3% 25.6% 26.4% 27.6 Term Loans +6.1% 26.8 Dec 11 Short Term Revolving 18.9 +8.8% Credit & 18.1 Overdraft 3.9% Jun 11 Dec 2010 Jun 2011 Dec 2011 Asset quality remained stable 34% 3.4% 3.7% Trade Finance 32.8 30.8 +13.0% Dec 2010 Jun2011 Dec 2011 1515
Maybank Kim Eng Revenue of RM510.8m with Malaysia contributing 41% Hong Kong 2% Indonesia 3% Others 13% Malaysia 41% Revenue for Malaysia 35% YoY millionincreased RM m 322.8 214.9 214.0 Thailand 28% RM510.8m RM million Singapore 13% FY10 FY11 6m FP11 1616
League Table Maybank IB s (Malaysia) Industry Position & Market Share Maybank IB (July December 2011) Industry Rank by Value Total Value (RM bil.) Deals / Issues Market Share M&A 1 2 27.5 29 34.6% Equity & Rights Offerings 1 2 0.8 4 15.9% Debt Markets - Malaysia Domestic Bonds 1 2 9.6 62 27.1% Debt Markets - Malaysian Ringgit Islamic Bonds 1 2 4.5 43 22.2% Equity Brokerage 2 4 26.3 n.a. 6.5% Sources: 1 Bloomberg, 2 Bursa Malaysia 1717
Notable Deals (July December 2011) Investment Banking / Equity Capital Market Corporate Finance RM2,662,000,000 RM392,300,000 RM710,300,000 SGD600,000,000 RM4,060,000,000 IPO IPO IPO Reverse Takeover Privatisation Bumi Armada Berhad Eversendai Pavilion Real Estate t Weiye Holdings Exercise Corporation Berhad Investment Trust s Limited (REIT) Titan Chemicals July 2011 July 2011 December 2011 August 2011 October 2011 Debt Capital Market MIDCITI RESOURCES ANIH Up to Up to Up to Up to Up to RM3,000,000,000 RM5,000,000,000 RM880,000,000000 000 RM1,800,000,000 000 000 RM2,500,000,000 000 000 Subdebt MTN Islamic MTN Islamic MTN Sukuk Musharakah Malayan Banking Berhad YTL Power International Berhad Midciti Resources Sdn Bhd DRB-HICOM Berhad ANIH Berhad August 2011 August 2011 October 2011 November 2011 November 2011 1818
Islamic Banking sustained strong financing and profit growth Maybank Islamic Profit Before Tax financingi rose 32% to RM567m RM bil llion 47.2 21% 52.4 Islamic Finance to Total Domestic Loans rose to 28.5% in Dec 2011 from 26.1% a year ago Jun 2011 Dec 2011 1919
Insurance gaining market share No. 2 in Life/Family (New Business) Prudential Etiqa 15.1% 1% 14.8% RM million Combined Gross Premium rose 20% 3000 2Q FY11 2500 Great 14.6% Eastern 1500 No. 1 in General Etiqa Allianz MSIG & HLMT 9.2% 85% 8.5% 12.7% 20.2% 2% 2000 20.5% 1000 500 0 Combined Gross Premium Total Life / Family 2Q FP11 19.8% Total General 2020
Singapore PBT boosted by fee income Revenue and PBT rose 16.4% and 10.4% YoY respectively 16.4% 384.6 330.4 10.4% Loans growth outpaced industry Maybank Industry 11.4% 8.6% 28.6% 25.4% 24.2% 14.8% GD mi illion S 197.5 218.1 Jun 2010 Jun 2011 Dec 2011 Good Asset Quality (Net NPL) 0.25% 0.26% 6m 6m 6m 6m FY11 FP11 FY11 FP11 0.14% Revenue Profit Before Tax Dec 2010 Jun 2011 Dec 2011 2121
BII: 25% PBT growth, 31% annualised loans growth Revenue and PBT rose 12% and 25% respectively Loan Composition: SMEC is largest segment llion DR bi 12% Sariah Syariah 6,332 1% Corporate 5,645 26% 25% Rp67.2t +31.2% I31.2% 790 985 Subsidiaries 6% Consumer 31% FY10 FY11 FY10 FY11 Revenue Profit Before Tax SMEC 36% 2222
BII: continued branch expansion, improving asset quality 787 Continued branch and ATM expansion 952 1017 1152 Asset Quality: Net NPL improving 1.70% 1.20% 1.10% Dec 2010 Jun 2011 Dec 2011 255 327 344 351 Pressure on Net Interest Margin 5.87% Dec 09 Dec 10 Jun 11 Dec 11 5.43% 5.22% Branches ATM+ CDM Dec 2010 Jun 2011 Dec 2011 2323
Robust Capital Adequacy Core Equity Ratio is comfortable to meet Bank Negara requirements 4.71% 2.42% 4.71% 4.72% Risk Weigted Capital Ratio 2.42% 2.42% Core Capital Ratio 8.53% 9.13% 9.23% Ratio Core Equity Ratio Fully electable portion paid in cash Assuming 85% reinvestment rate Full electable portion reinvested 2424
Presentation to Shareholders Financial Performance Strategy Prospects 25
6 House of Maybank began delivering game-changing difference in customer experience Maybank Group CEO + Support Islamic Finance International Expansion Community Global Insurance & Financial Wholesale Takaful Services Banking Enab blement Enterprise Transformation Services 2626 26
Humanising Financial Services Across Asia Providing customers with convenient access to financing Consistent, t integrated t and holistic financial i services New locations and new products New initiatives to add to customer appeal Regional client coverage teams MaybankOne Strategy: Multi-channel business model based on branchless concept Fair terms and pricing Advise customers based on their needs 2727
Humanising Financial Services Across Asia Being at the heart of community User friendly facilities for physically challenged customers Ramps to ease access Maybankers participating in group-wide volunteerism Automated sliding doors 2828
IT Transformation Programme: 5 year international roadmap House of Maybank Enterprise Implementation Launched Architecture Roadmap July 2010 October 2010 December 2010 Year 1 Projects and Programme Directors April 2011 Completed 70% of Year 1 Tactical Projects ahead of schedule Branch Front End Replacement & Cash Management System 2Q 2012 Roll out of subsequent releases i.e. Regional Credit Cards, Core Banking and Management Information System 2013-2015 Full IT Transformation Deployment 2015 2929
Strengthening Management Appointed Chief Strategy & Transformation Officer and Assigning Group CFO to lead BII 3030
Building the Brand New Corporate Identity: Maybank Kim Eng BII rebranding in progress Inculcating our Brand Personality: Empathetic, Collaborative, Courageous, Genuine and Creative Changing Mayban to Maybank globally 3131
Four key ypriorities for FY2012 to support our objectives 1 Create and Embed Right Risk Culture 2 Significantly raise Customer Service quality 3 Drive Greater Efficiency & Effectiveness 4 Create a truly Regional Financial Services group 3232
In 2012 we will: Introduce regional support infrastructure Realise synergies from regional distribution networks with regionwide consistency in systems Optimise costs and resources across the Group Increase funding capabilities in our overseas markets Open branches in Beijing and Laos (subject to approval) Continue to grow profitably and responsibly 3333
Presentation to Shareholders Financial Performance Strategy Prospects 34
Malaysia: Sustained growth for 2012 GDP growth forecast to Inflation expected to moderate to 4.0% in 2012 decline to 2.7% in 2012 7.2% 3.2% 5.1% 4.0% 2.7% 1.7% 0.6% -1.6% 2009 2010 2011 2012 2009 2010 2011 2012 Forecast Forecast Real GDP growth Consumer Price Index (CPI) 3535
Malaysia: Sustained growth for 2012 Ringgit/USD: Forecast OPR to remain unchanged RM2.95 by end 2012 at 3% until end of 2012 2.90 4.5 4.0 3.10 3.5 330 3.30 3.0 2.5 3.50 2.0 3.70 15 1.5 1.0 3.90 0.5 OPR 4% SRR 3% Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Real GDP growth Overnight Policy Rate and Statutory Reserve Requirement 3636
Healthy Banking Sector Loans expected to grow 10.5% in 2012 from 13.6% in 2011 Deposits expected grow 10.3% in 2012 from 14.3% in 2011 RM bi illion Total Loans 1,000 Total Loans YoY Growth 900 800 700 600 16% 14% 12% 10% 8% 6% 4% RM bi illion 1250 1150 1050 950 850 Total Deposits Total Deposits YoY Growth 25% 20% 15% 10% 5% 500 2% 750 0% Jan-0 07 Jul-0 07 Jan-0 08 Jul-0 08 Jan-0 09 Jul-0 09 Jan-1 10 Jul-1 10 Jan-1 11 Jul-1 11 Jan-0 07 Jul-0 07 Jan-0 08 Jul-0 08 Jan-0 09 Jul-0 09 Jan-1 10 Jul-1 10 Jan-1 11 Jul-1 11 Total Loans Total Deposits 3737
Sound Banking Sector Capital Adequacy expected to remain strong at 14.7% for 2012 16 15 14 13 12 11-07 -08-08 -09-09 -10-10 -11 Dec Jun Dec Jun Dec Jun Dec Jun 14.9% Risk Weighted Capital Ratio Asset Quality: Net Impaired Loans ratio expected to stabilise at 1.85% 2.5% 2.3% 2.1% 19% 1.9% 1.7% 1.5% Jun n-10 Sep p-10 Dec c-10 Mar r-11 Jun n-11 Sep p-11 1.83% Dec c-11 Net Impaired Loans Ratio 3838
Prospects Reasonable able business growth in 2012 Malaysia: Economic Transformation Program (ETP) projects and relatively low interest rates (OPR at 3% throughout 2012) in Malaysia Indonesia: Strong domestic demand and a relatively under-penetrated banking sector. Singapore: export-oriented t economy will record slower growth than in 2011. Strategy of responsible growth, equal focus on managing asset quality and liquidity through sound risk management practices. 3939
Prospects Regionalisation o initiatives: building a truly regional organisation and governance structure across all functions by building physical infrastructure, such as IT, and in delivering value in areas such investment banking, global wholesale banking, credit cards, global markets and payments. Focus on further raising customer service quality, embedding right risk culture, and driving greater effectiveness and efficiency and improved cost structure. Notwithstanding the global challenges, the Group expects to maintain a satisfactory financial performance for FY2012 in view of expected growth in the key ASEAN markets where the Group operates. 4040
Key Performance Indicators Headline KPIs Target Return on Equity (ROE) Loans and Debt Securities Growth 15.6% 15.2% Other KPIs Group Loans Growth 16.2% Malaysia 13.6% Singapore Bank Internasional Indonesia 11.4% 20.9% Group Deposits Growth 11.6% 4141
Thank you for your trust in us 52 52Years of Growth Total Assets RM451 billion Profit After Tax RM2.6 billion (6 months) Human Capital 45,000 Maybankers Global Network 2,200200 Offices Customers Worldwide in 17 Countries 22 million Customers Shareholders 60,000000 Shareholders Public Ownership > 10.5 million Unit Holders 4242