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Investor Presentation
Financial Results 2Q FY2015 and 1H FY2015 ended 30 June 2015
27 August 2015
Humanising Financial Services
1
Table of Contents
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
Appendix: Business Sector Review
7
2
23
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
4. Bank Internasional Indonesia
5. Other segments
6. Affiliates
27
32
37
41
46
51
Executive Summary
Financial Performance
Prospects & Outlook
7. Quarterly Financial Summary 54
2
Cost growth higher due to personnel and business-related activities but still
within 50% threshold
Stronger revenue growth in first half, net operating income up 10.8% YoY
Stable group level asset quality with GIL at 1.56%
LDR at 94.2%, but traction in Malaysia and Indonesia improved in 2Q
Strong capital positions with CET1 ratio at 11.48%*
and total capital ratio at 15.54%*
Group Overview 1H FY2015 performance supported by stronger revenue growth and asset position
4
7
6
5
*After proposed dividend and assumption of 80% reinvestment rate. Fully loaded Group CET1 ratio is 10.93%
1
Group NIM at 2.28%, a smaller contraction of 3bps from end Dec 2014 3
Loan growth in 1H FY2015 at YTD annualised growth of 11.1%, and 6.9%
with normalisation of exchange rate 2
3
Results Overview (1/2) Group net profit growth of 3.4% YoY to RM3.28 billion and higher net operating income of 10.8%
Net profit growth
of 3.4% YoY,
ROE at 12.1%
Net operating
income growth of
10.8%
NIM within
expectation
Net operating income growth of 10.8% from continued growth in all business pillars:
Community Financial Services (CFS) +11.6%
Global Banking (Malaysia) +7.2%
International Banking +9.5
Insurance & Takaful +2.3%
Net fund based income grew 11.2% from:
Net interest income growth of 10.1%, driven by Group loans growth of 15.4%
Islamic Banking fund based income growth of 14.7%
YoY net fee based income growth of 9.9% arising from:
Higher foreign exchange gains and commission, service charges and fees
Islamic Banking fee based income growth of 42.2%
Net profit growth of 3.4% YoY, offset by:
An increase in overheads, mainly arising from higher personnel costs and admin & general
expenses
Higher net impairment losses due to an increase in loan loss allowances and net allowances for
impairment losses on financial investments as well as lower recoveries on legacy loans
Group NIM decreased 3bps from end Dec 2014 position and 8bps YoY as:
Yields on loans in Malaysia and Singapore improved, and remained stable in Indonesia
But offset by higher deposit costs in Malaysia and Singapore
4
Group loans growth of 11.1% (ann.) driven by stronger momentum in 2Q:
Led by International loans growth of 20.1%
Malaysia annualised loans growth of 4.2%, supported by growth in the consumer (+8.3%) and
SME (+35.6%) portfolio
Offset by contraction in Global Banking loans due to selective lending
With normalisation of exchange rate, loans growth would be 6.9% (ann.)
Results Overview (2/2) Loans growth continues in the CFS portfolio and expansion in the region
Group deposit
growth of 6.3%
YTD (ann.)
Group GIL at 1.56%
Group loans
growth of 11.1%
YTD (ann.)
Group deposit gathering (6.3% ann.) supported by:
International markets deposit growth of 8.3%
Deposit growth of 5.1% in Malaysia
With normalisation of exchange rate, deposits growth would be 2.5% (ann.)
Group GIL at 1.56% as:
Singapore and Indonesia saw an uptick in their GIL
GIL in Malaysia stable at 1.62%
Capital ratios
remain healthy
Group total capital at 15.54% and CET1 at 11.48% as at 30 June 2015 (assuming an 80% DRP
reinvestment rate)
Interim dividend of 24 sen consisting of 4 sen cash portion and 20 sen electable portion for the
Dividend Reinvestment Plan
5
FY2015 Headline Key Performance Indicators Stable performance in 1H FY2015, but operating conditions are changing for 2H FY2015
Notes:
1Numbers are annualised based on June 2015 position for Malaysia, Singapore and Indonesia
2In local currency terms
3Singapore’s industry loan average comprises domestic business unit (DBU) and Asian currency unit (ACU) loans
Key Performance Indicators FY2015
Guidance
Annualised YoY
Maybank Achievement Industry
Average1 Industry
Average Maybank
1Q FY2015 2Q FY2015 1H FY2015
Headline KPI
Return on Equity 13.0%-14.0% 12.8% 11.7% 12.1% - -
Other Guidance
Group Loans Growth 9.0%-10.0% 8.4% 13.6% 11.1% - - 15.4%
• Malaysia 8.0%-9.0% 3.8% 4.6% 4.2% 7.2% 9.1% 9.9%
• Singapore2,3 8.0%-9.0% (1.1)% 17.5% 8.2% 2.0% 3.4% 9.9%
• Indonesia2 13.0%- 15.0% 5. 0% 2.6% 3.8% 8.5% 10.3% 2.8%
Group Deposits Growth 9.0%-10.0% 6.8% 5.7% 6.3% - - 11.5%
6
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
7
P&L Summary: 1H FY2015 Net profit growth of 3.4% YoY to RM3.3 billion
¹Fee-based income is the combined value of other operating income and fee-based income from Islamic Banking operations
²Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses
* From consolidated Group numbers, Insurance and Takaful accounts for 6.4% of net fund based income and 9.4% of net fee-based income
More
details
on RM million
1H
FY2015
1H
FY2014 YoY
2Q
FY2015
1Q
FY2015 QoQ
2Q
FY2014 YoY
s.11 Net fund based income * 6,958.7 6,258.9 11.2% 3,543.3 3,415.4 3.7% 3,134.6 13.0%
s.11 Net fee based income * 2,917.2 2,655.6 9.9% 1,345.1 1,572.1 (14.4)% 1,344.8 0.0%
Fee based income and net earned
insurance premiums 5,019.5 4,707.7 6.6% 2,349.6 2,669.9 (12.0)% 2,476.4 (5.1)%
s.12 Fee based income¹ 2,982.1 2,756.0 8.2% 1,299.3 1,682.8 (22.8)% 1,447.0 (10.2)%
s.8 Net earned insurance premiums 2,037.4 1,951.7 4.4% 1,050.3 987.1 6.4% 1,029.4 2.0%
s.8
Net insurance benefits & claims incurred,
net fee & commission expenses and life
& takaful fund tax
(2,102.3) (2,052.1) 2.4% (1,004.5) (1,097.8) (8.5)% (1,131.6) (11.2)%
s.10 Net operating income 9,875.9 8,914.5 10.8% 4,888.4 4,987.5 (2.0)% 4,479.4 9.1%
s.17 Overhead expenses (4,907.9) (4,254.8) 15.3% (2,418.6) (2,489.3) (2.8)% (2,086.4) 15.9%
s.10 Pre-provisioning operating profit (PPOP) ² 4,968.0 4,659.7 6.6% 2,469.8 2,498.2 (1.1)% 2,393.0 3.2%
Net impairment losses (693.6) (278.8) 148.7% (395.0) (298.6) 32.3% (183.4) 115.3%
Operating profit 4,274.4 4,380.9 (2.4)% 2,074.8 2,199.6 (5.7)% 2,209.5 (6.1)%
s.9 Profit before taxation and zakat (PBT) 4,392.5 4,454.6 (1.4)% 2,150.5 2,242.0 (4.1)% 2,246.8 (4.3)%
Profit attributable to equity holders of
the Bank (Net Profit) 3,284.9 3,177.1 3.4% 1,584.5 1,700.4 (6.8)% 1,575.5 0.6%
EPS - Basic (sen) 35.0 35.6 (1.5)% 16.8 18.3 (8.3)% 17.5 (4.1)%
8
Unaudited Income Statement for Insurance and Takaful Business Increased operating income on higher net earned premiums of 4.4%; PPOP was also higher at 6.1%
RM million 1H
FY2015
1H
FY2014 YoY
2Q
FY2015
1Q
FY2015 QoQ
2Q
FY2014 YoY
Interest income 470.9 487.4 (3.4)% 234.4 236.5 (0.9)% 254.3 (7.8)%
Interest expense (17.0) (11.4) 48.4% (8.5) (8.4) 1.1% (6.3) 34.5%
Net interest income 453.9 476.0 (4.6)% 225.9 228.1 (1.0)% 247.9 (8.9)%
Net earned premiums 2,037.4 1,951.7 4.4% 1,050.3 987.1 6.4% 1,029.4 2.0%
Other operating income 319.1 321.3 (0.7)% 130.1 189.0 (31.1)% 243.1 (46.5)%
Total operating income 2,810.4 2,748.9 2.2% 1,406.3 1,404.1 0.2% 1,520.5 (7.5)%
Net insurance benefits & claims
incurred, net fee & commission
expenses and life & takaful fund tax
(2,153.7) (2,101.4) 2.5% (1,028.9) (1,124.8) (8.5)% (1,157.5) (11.1)%
Net operating income 656.7 647.5 1.4% 377.4 279.3 35.1% 363.0 4.0%
Overhead expenses (294.5) (306.2) (3.8)% (123.0) (171.5) (28.3)% (162.2) (24.1)%
PPOP 362.2 341.2 6.1% 254.4 107.8 135.9% 200.8 26.6%
Net impairment losses (174.7) (13.7) >100% (116.6) (58.0) 101.1% (13.3) >100%
Operating profit 187.5 327.6 (42.8)% 137.7 49.8 176.5% 187.5 (26.6)%
RM million 1H
FY2015
1H
FY2014 YoY
2Q
FY2015
1Q
FY2015 QoQ
2Q
FY2014 YoY
Net insurance benefits & claims
incurred, net fee & commission
expenses and life & takaful fund tax
(2,153.7) (2,101.4) 2.5% (1,028.9) (1,124.8) (8.5)% (1,157.5) (11.1)%
Less: intercompany elimination 51.5 49.4 4.3% 24.4 27.0 (9.6)% 25.8 (5.3)%
Total net insurance benefits & claims
incurred, net fee & commission
expenses and life & takaful fund tax
(2,102.3) (2,052.1) 2.4% (1,004.5) (1,097.8) (8.5)% (1,131.6) (11.2)%
Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax
9
70.4%
13.7%
2.0%
13.9%
Malaysia Singapore Indonesia Others
RM4.39b
69.8%
12.1%
3.4%
14.7%
International & Malaysia Portfolio Mix 1H FY2015 International contribution to Group gross loans at 42.2% and revenue contribution to Group at 35.7%
64.3%
16.0%
12.3%
7.4%
Overseas:
39.2%
1H FY2014
Net Operating Income Profit Before Tax 1H FY2015
Overseas:
35.5% Overseas:
30.2%
Gross loans*
(Jan 14 – Jun 14)
* Including Islamic loans sold to Cagamas and excludes unwinding of interest & EIR adjustment
57.8% 24.6%
7.4%
10.2% Overseas:
42.2%
Overseas:
35.7%
Overseas:
29.6%
(Jan 15 – Jun 15)
60.8% 23.5%
7.9% 7.8%
64.5% 15.7%
12.5%
7.3%
RM4.45b RM8.91b RM375.3b
RM433.3b RM9.88b
10
8,915
3,646
1,136 788 591 43
2,797
697
9,876
4,069
1,129 909 636 66
3,063
713
Total CommunityFinancial Services
(CFS)
CorporateBanking
Global Markets InvestmentBanking
AssetManagement
InternationalBanking
Insurance &Takaful
1H FY2014
1H FY2015
Business Segment Performance 1H FY2015 (1/2) All business sectors (CFS, GB, International Banking and Insurance & Takaful) recorded improved revenue momentum
Note: Net income & PPOP for group includes expenditures of Head Office & Others of RM783.1 million for 1H 2014 and RM710.4 million for 1H FY2015.
Net Operating Income
RM
million
4,660
1,920
909 702 113 2
1,398
400
4,968
2,022
840 785
120 7
1,486
418
Total CommunityFinancial Services
(CFS)
CorporateBanking
Global Markets InvestmentBanking
AssetManagement
InternationalBanking
Insurance &Takaful
1H FY2014
1H FY2015
+11.6% -0.6% +15.5%
+10.8%
+7.6% +55.4% +9.5% +2.3%
+5.3% -7.6% +11.9%
Global Banking (GB)
+6.6%
+6.7% +239.3% +6.3% +4.6%
+1.5%
PPOP
RM
million
Global Banking (GB) +7.2%
11
2,656
845
359 428 512
40
772
221
2,917
1,047
298 556 537
66
617 254
Total CommunityFinancial Services
(CFS)
CorporateBanking
Global Markets InvestmentBanking
AssetManagement
InternationalBanking
Insurance &Takaful
1H FY2014
1H FY2015
6,259
2,800
777 360 80 2
2,026
476
6,959
3,022
831 354 100 (0)
2,446
459
Total CommunityFinancial Services
(CFS)
CorporateBanking
Global Markets InvestmentBanking
AssetManagement
InternationalBanking
Insurance &Takaful
1H FY2014
1H FY2015
RM
million
+7.9% +7.0% -1.8%
+11.2%
+25.3% <-100.0% +20.7% -3.7%
+23.9% -17.2% +30.0%
Global Banking (GB) +9.9%
+4.9% +64.4% -20.0% +15.1%
+8.8%
RM
million
Global Banking (GB) +5.4%
Note: Net fund based income includes expenditures of Head Office & Others of RM261.9 million for 1H FY2014 and RM252.0 million for 1H FY2015.
Net fee based income includes expenditures of Head Office & Others of RM521.2 million for 1H FY2014 and RM458.4 million for 1H FY2015.
Net Fund Based Income
Net Fee Based Income
Business Segment Performance 1H FY2015 (2/2) Higher net fund based growth of 11.2% driven by International Banking and CFS
12
2,656 2,597
159
1,952
(2,052)
2,917 2,756
226
2,037
(2,102)
Total Other operatingincome
Fee Income fromIslamic Operations
Net Earned InsurancePremiums
Net Insurance Benefits& Claims Incurred, Net
Fee & CommissionExpenses and Life &
Takaful Fund Tax
1H FY2014
1H FY2015
RM
million
RM million 1H
FY2015 1H
FY2014 YoY
Commission, service charges and fees 1,883 1,687 11.6%
Investment & Trading Income 471 491 (4.0)%
Unrealised gain/ (losses) on securities & derivatives (267) 198 (234.6)%
Foreign Exchange Profit 507 111 355.1%
Other Income 162 110 47.9%
Net Fee Based Income: 1H FY2015 (YoY) Net fee based income growth of 9.9% driven by higher commission, service charges and fees and foreign exchange gain
+42.2% +4.4% +2.4%
+9.9% +6.1%
13
Group Loans Growth: 30 Jun 2015 Group loans growth of 11.1% (ann.) led by International loans growth of 20.1% (ann.)
% of
Portfolio
30 Jun
2015
31 Dec
2014
YTD
Annualised
30 Jun
2014 YoY
Group Gross Loans¹ 433.3 410.5 11.1% 375.3 15.4%
Malaysia (RM billion) ² 58% 248.8 243.6 4.2% 226.4 9.9%
Community Financial Services 70% 175.3 168.8 7.7% 159.4 10.0%
Global Banking 30% 73.4 74.8 (3.7)% 67.0 9.6%
International (RM billion) 41% 178.7 162.4 20.1% 144.7 23.5%
Singapore (SGD billion) 24% 36.6 35.1 8.2% 33.2 9.9%
Community Financial Services (reported) 52% 19.1 14.8 58.0% 13.3 43.4%
Community Financial Services (normalised) 46% 16.83 14.8 27.0% 13.3 26.3%
Global Banking (reported) 47% 17.2 20.1 (28.4)% 19.9 (13.6)%
Global Banking (normalised) 54% 19.43 20.1 (7.0)% 19.9 (2.5)%
Others 1% 0.3 0.3 (5.0)% 0.0 >100.0%
Indonesia (Rupiah trillion) 7% 111.4 109.3 3.8% 108.4 2.8%
Community Financial Services 80% 89.0 84.1 11.6% 77.9 14.2%
Global Banking 20% 22.2 24.9 (22.1)% 30.1 (26.4)%
Others 0% 0.3 0.3 5.1% 0.4 (27.8)%
Other markets (RM billion) 10% 44.6 38.8 30.0% 29.8 49.5%
Investment banking (RM billion) 1% 5.8 4.4 62.7% 4.2 37.8% ¹ Including Islamic loans sold to Cagamas and excludes unwinding of interest
² Takes into account others portion - Jun 15: RM15 million; Dec 14: RM7 million; Jun 14: RM87 million
³ Normalised loan growth as at 30 Jun 2015, prior to a transfer of SGD 2.2 billion from GB to CFS for Business Banking segment due to realignment to the Group Customer Segmentation
14
Malaysia Loans Growth: 30 Jun 2015 Consumer loan growth of 8.3% (ann.), driven by growth in mortgage and auto finance
¹ Re-based loan growth figures are based on adjusted 31 Dec 2014 position in line with migration of client accounts, implemented on 1 Jan 2015. Re-based YTD annualised growth
was 44.3% for SME and 3.5% for Business Banking.
² Including Islamic loans sold to Cagamas and excludes unwinding of interest and takes into accounts others portion – Jun 15: RM15 million; Dec 14: RM7 million; Jun 14: RM87 million
RM billion % of
Portfolio
30 Jun
2015
31 Dec
2014
YTD
Annualised 30 Jun
2014 YoY
Community Financial Services 70% 175.3 168.8 7.7% 159.4 10.0%
Consumer 57% 141.4 135.7 8.3% 128.4 10.1%
Total Mortgage 26% 65.1 60.9 13.6% 56.8 14.6%
Auto Finance 16% 40.4 38.6 9.0% 37.0 9.0%
Credit Cards 2% 6.0 5.8 4.5% 5.5 8.4%
Unit Trust 11% 27.7 28.3 (3.7)% 27.3 1.6%
Other Retail Loans 1% 2.3 2.1 15.5% 1.8 25.9%
Business Banking + SME 14% 33.9 33.1 5.3% 31.0 9.6%
Business Banking + SME (Re-based¹) 14% 33.9 31.9 12.8% 31.0 9.6%
SME 4% 8.9 7.5 35.6% 6.4 39.3%
Business Banking 10% 25.1 25.5 (3.6%) 24.6 2.0%
Global Banking (Corporate) 30% 73.4 74.8 (3.7%) 67.0 9.6%
Total Malaysia² 248.8 243.6 4.2% 226.4 9.9%
15
% of Portfolio 30 Jun 2015 31 Dec 2014 YTD
Annualised 30 Jun 2014 YoY
Group Gross Deposits 453.5 439.6 6.3% 406.5 11.5%
Malaysia (RM billion) 63% 285.4 278.3 5.1% 265.1 7.6%
Savings Deposits 14% 40.3 38.5 9.3% 38.7 4.0%
Current Accounts 26% 72.5 72.8 (0.7)% 67.1 8.0%
Fixed Deposits 54% 155.2 140.8 20.4% 137.4 12.9%
Others 6% 17.4 26.2 (67.5)% 21.8 (20.4)%
International 37% 169.6 162.9 8.3% 143.3 18.3%
Singapore (SGD billion) 24% 39.0 39.6 (2.9)% 35.0 11.6%
Savings Deposits 12% 4.5 4.5 (2.0)% 4.3 5.4%
Current Accounts 13% 5.1 5.3 (7.7)% 4.8 7.0%
Fixed Deposits 74% 28.9 29.0 (0.7)% 25.2 14.4%
Others 1% 0.5 0.8 (57.9)% 0.7 (22.6)%
Indonesia (Rupiah trillion) 7% 106.9 102.8¹ 8.0% 106.2 0.6%
Savings Deposits 23% 24.0 23.5 4.9% 24.3 (1.0)%
Current Accounts 17% 18.4 16.3 24.7% 16.4 11.9%
Fixed Deposits 60% 64.5 62.4 6.6% 65.5 (1.6)%
Group Deposit Growth: 30 Jun 2015 Group deposit growth of 6.3% (ann.) driven by international markets growth of 8.3% (ann.)
¹ Includes Others of Rupiah 0.6 trillion
16
90.6% 90.6% 91.8% 92.2% 94.2%
35.7% 34.5% 35.3% 35.4% 34.9%
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
LDR CASA
LDR and CASA Ratio: 30 Jun 2015 Group LDR at 94.2% arising from higher LDR in opportunistic markets
Singapore BII Group
Group Malaysia
86.8% 83.9% 89.5% 91.5% 90.8%
39.9% 38.1% 39.9% 41.2% 39.6%
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
101.1% 102.7% 105.3% 104.5% 102.8%
38.3% 38.4% 38.7% 39.2% 39.7%
90.8% 91.1% 92.7% 91.9% 89.7%
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
LDR (Bank Level)
94.7% 95.8% 88.4% 89.1% 93.4%
25.8% 25.2% 24.9% 24.5% 24.6%
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
17
Overheads: 1H FY2015 Operating expenses higher but cost to income ratio still within 50% threshold
(RM’ mil) 1H
FY2015
1H
FY2014
YoY
2Q FY2015 1Q FY2015 QoQ
Personnel Costs 2,792.7 2,380.1 17.3% 1,373.3 1,419.3 (3.2)%
IT Expenses 216.7 260.3 (16.7)% 117.4 99.4 18.1%
Establishment Costs 521.1 501.2 4.0% 242.1 279.0 (13.2)%
Marketing Expenses 354.7 327.9 8.2% 183.4 171.3 7.0%
Administration &
General Expenses 1,022.7 785.3 30.2% 502.4 520.3 (3.4)%
Total 4,907.9 4,254.8 15.3% 2,418.6 2,489.3 (2.8)%
Group overheads composition
Note: Excluding one-off expenses such as higher gift point expenses and operational costs as well as provisioning for Maybank staff union’s collective
agreement, overheads growth was 11.1% YoY for 1H FY2015 with CIR of 47.8%.
% 1H FY2015 1H FY2014 YoY 2Q FY2015 1Q FY2015 QoQ
Total Cost to Income 49.5 47.4 2.1% 49.2% 49.7 (0.5)%
Group JAW Position (4.5) 0.8
18
154.4
70.5
(34.6)
248.0
300.9
364.5
548.9
2QFY2014
3QFY2014
4QFY2014
1QFY2015
2QFY2015
1HFY2014
1HFY2015
Allowances for losses on loans
107.7% 95.4% 95.6% 93.5% 83.4%*
Loan loss coverage
1.09 1.06 0.95 0.99 0.97
1.13 1.04 1.06
1.15
1.86 1.83
1.48 1.52 1.50
1.65
1.52 1.50 1.56
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
Gross Impaired Loans Ratio (%)
Net Impaired Loans Ratio (%)
Asset Quality: 30 Jun 2015 Group GIL at 1.56% and provisioning costs higher YoY due to higher loan loss recoveries in prior year
Group Impaired Loans Ratio Allowance for losses on loans
*Loan loss coverage including Regulatory Reserve is 95.1%
RM
million
19
Asset Quality by Market Improved credit quality in Malaysia, with uptick in Singapore and Indonesia
0.26 0.24 0.23
0.30
0.41
0.20 0.18 0.18 0.24
0.33
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
Gross Impaired Loans Ratio (%)
Net Impaired Loans Ratio (%)
3.53 3.32 3.24 3.49
4.50*
2.95 2.82 2.63 2.78
3.55*
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
1.71 2.04 1.85 1.75 1.62
1.05 1.37 1.25 1.23 1.18
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
Malaysia Singapore BII Group
*BII reported gross NPL (3.48%) and net NPL (2.35%) whereas the chart above represents BII Group’s gross impaired loans ratio and net impaired loans ratio
20
11.69% 11.48% 11.45% 11.38%
13.37% 13.16% 13.13% 13.17%
15.75% 15.54% 15.51% 15.87%
Jun 15 Jun 15 Jun 15 Dec 14
Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio
After proposed
dividend and
reinvestment **
Group
Bank
Capital Adequacy: 30 Jun 2015 Total Capital Ratio and CET1 remain healthy at 15.54% and 11.48% (assuming 80% dividend reinvestment rate)
Before
proposed
dividend
After proposed
dividend,
assuming 80%
reinvestment rate
After proposed
dividend, based on
BNM’s Implementation
Guideline *
14.84% 14.56% 14.51% 15.76%
15.73% 15.44% 15.40% 15.76%
Jun 15 Jun 15 Jun 15 Dec 14
Tier 1 and Total Capital Ratio CET 1 Capital Ratio
Note:
• Based on 80% reinvestment rate under the DRP, the fully loaded CET1 Ratio would be at 10.93% (Group) and 9.89% (Bank) respectively.
* Capital ratios are computed based on BNM’s implementation Guidelines on Capital Adequacy Framework (Capital Components) issued on 8th May 2013.
** Adjusted based on acceptance rate of 82.55% under the 10th DRP.
21
61.0%
76.5% 74.9%
79.9% 74.7% 71.9%
78.5%
69.7%
11
28 32 22.5
24 24
8
44
32
36
33
31 33
FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15
Final
Interim
Dividend Board recommended single-tier interim dividend of 24 sen consisting of 4 sen cash portion and 20 sen electable portion
* Reinvestment rate for the Dividend Reinvestment Plan
# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend.
Gross Dividend (sen) and Payout Ratio (%)
85.9%*
85.7%*
88.2%* 85.9%*
88.5%* 91.1%*
86.1%*
88.6%*
#
82.6%*
8.0
55.0
60.0
36.0
65.0
53.5 57.0
84.0%*
Dividend Payout Ratio
N.A.*
22
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
23
Market Outlook Key trends and developments affecting the banking industry in 2H FY2015
Key Indicators Outlook
Singapore
Malaysia
Indonesia
• GDP(f) 4.9% (2014: 6.0%)
• System loan(f) 7-8%
• System deposit(f) 6-7%
• OPR 3.25% (2014: 3.25%)
• USD/MYR(f) 3.95 (end period) (end 2014: 3.50)
• Inflation (f) 2.0%-2.5% (2014: 3.2%)
• GDP(f) 2.3% (2014: 2.9%)
• System loan(f) 4%-5%
• System deposit(f) 4%-5%
• USD/SGD (f) 1.40 (2014: 1.28)
• Inflation (f) 0%-0.5% (2014: 1.0%)
• GDP(f) 4.9% (2014: 5.0%)
• System loan(f) 12.10%
• System deposit(f) 14.04%
• Reference Rate (f) 7.25% (2014: 7.75%)
• USD/IDR average (f) 13750 (2014: 11885)
• Inflation average (f) 4.12% (2014: 8.36%)
• Bank Indonesia expected to cut rates in 4Q FY2015,
likely to lead to increased refinancing activity
• Corporate lending to improve as government
infrastructure projects gain traction
• Lending environment expected to moderate
• Stable to modest improvement in NIMs from uptick in
rates
• Asset quality to remain stable with sporadic
weaknesses
• Household loan growth to continue moderating amid
weak consumer sentiment
• Business sentiment to remain cautious, loan demand to
be supported by ongoing infrastructure projects
• NIM compression to continue amid a challenging funding
cost environment
• Credit costs set to normalise with lower recoveries
• Cost efficiency to continue to be a key focus
24
Guidance for FY2015
ROE
Group Loans Growth
Malaysia Loans Growth
Singapore Loans Growth
Indonesia Loans Growth
Group Deposits Growth
12% - 13%
8% - 9%
6% - 7%
5% - 6%
10% - 13%
10% - 11%
25
Strategic Priorities for 2H FY2015
Continued focus on productivity
More selective asset growth in view of market conditions
Maintain strong capital position 4
5
1
Remain focused on monitoring and proactive management of asset
quality 3
Continued focus on deposit taking but expect higher funding costs 2
26
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
27
Community Financial Services (1/4) Market share in deposits and key consumer loans portfolio strengthened
*Refers to housing and shophouse loans
**Credit Cards market share refers to Receivables for commercial banks
Loans
Total Consumer / Household 17.0% 17.2% 17.4% 17.4% 17.4% 0.0 2
Auto (Purchase of Transport Vehicles) 20.2% 21.5% 23.0% 23.4% 23.6% 0.0 2
Total Mortgage* 13.4% 13.1% 13.1% 13.1% 13.2% 0.0 2
Credit Cards** 15.9% 15.7% 16.1% 16.6% 16.9% 0.0 2
Unit Trust 60.2% 55.8% 52.7% 51.7% 51.4% 0.0 1
Deposits
Total Deposits 17.1% 18.5% 19.0% 18.6% 18.8% 0.0 1
Total Core Retail Deposits 18.3% 19.0% 19.4% 19.3% 19.4% 0.0 2
Retail CASA 23.6% 24.8% 24.8% 25.3% 25.3% 0.0 1
-Retail Savings 28.2% 29.8% 29.9% 30.1% 30.8% 0.0 1
Retail Fixed Deposits (FD) 15.2% 15.7% 16.5% 16.1% 16.2% 0.0 2
Internet Banking -Subscriber Base 48.0% 45.0% 43.0% 43.0% 43.0% 0.0 1
Mobile Banking -Subscriber Base 36.0% 34.0% 32.0% 31.0% 30.0% 0.0 1
Branch Network 20.0% 20.0% 20.0% 20.0% 20.0% 0.0 1
Market
PositionDec-14
Jun-15
vs
Mar-15
Market
PositionMar-15
Mar-15
Jun-15
Dec-12 Dec-13
Dec-14
Jun-15
vs
Mar-15
Market Share Dec-12 Dec-13
Market Share Jun-15
28
31.0 31.4
33.1 33.0 33.9
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
BB+SME Loan Balance RM'b
128.4
131.3
135.7
138.9 141.4
120.0
125.0
130.0
135.0
140.0
145.0
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
Consumer Loan Balance RM'b
SME & BB Loans grew by 12.8%* (ann.) to RM33.9 billion
HNW & Affluent Customer TFA grew 10.9% YoY with
higher product cross sell ratio
Mass Customer TFA grew 1.4% YoY with higher cross
sell ratio
Community Financial Services (2/4) Sustained consumer loans growth with increase in HNW and Affluent segments
Consumer Loans grew 8.3% (ann.) to RM141.4 billion
31.9*
141.6 145.3
150.4 153.5
157.4
6.54 6.59 6.65
6.70
7.09
6.00
6.50
7.00
7.50
110.0
160.0
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015TFA RM'b Product per customer
104.7 105.5 106.4 107.4 106.2
3.08 3.11 3.12
3.15 3.18
3
3.5
80.0
100.0
120.0
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
TFA RM'b Product per customer
Mass Customer TFA grew 1.4% YoY with higher
cross sell ratio
2.2 Re-based
Mass to
HNW &
Affluent
*Re-based loan growth figures are based on adjusted 31 Dec 2014 position in line with migration of client accounts to Global Banking
**Customer classification: HNW (IA > RM250K, TFA > RM1M); Affluent (IA between RM 50K to RM250K, TFA between RM250K to < RM1M)
***TFA: Total Financial Assets (Deposits, Investments, Financing & Protection), IA: Investable Assets (Deposits & Investments)
29
61.8
64.6
69.7 70.6 71.0
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
SME + BB Deposit Balance RM'b
112.4
114.1
116.9
119.4
121.5
106.0
108.0
110.0
112.0
114.0
116.0
118.0
120.0
122.0
124.0
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
Consumer Deposit Balance RM'b
174.2
178.7
186.6
190.0 192.4
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
CFS Deposits Balance RM'b
Community Financial Services (3/4) Continued growth in customer deposits by 6.8%, driven by Consumer and SME portfolios
• Consumer deposits YTD growth of RM4.6 billion in 1H 2015 was
largely driven by Retail CASA which grew by 9.6% (ann.). This
resulted in Retail Savings market share improving to 30.8% as
at June 2015.
• Retail SME YTD growth of RM1.9 billion or 7.6% (ann.) was
contributed by strong growth in Fixed Deposits which grew
24.3% (ann.).
Retail SME & Business Banking deposits growth of 5.1%* (ann.)
Consumer Deposits growth of 7.8% (ann.) driven by CASA
growth of 9.6% (ann.) CFS Deposits growth of 6.8%* (ann.) led by consumer and
SME portfolios
186.1*
69.2*
* Re-based deposit growth figures are based on adjusted 31 Dec 2014 position in line with
migration of client accounts to Global Banking.
30
2,143
2,999 2,803
2,585 2,458
7.0%
9.6% 8.5%
7.9% 7.3%
3.0% 2.7% 2.4% 2.3% 2.1%
0.1% -
500
1,000
1,500
2,000
2,500
3,000
3,500
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
GIL RM'm GIL % for SME & BB GIL % for SME
2,813
3,658 3,457
3,334 3,109
1.8% 2.2%
2.0% 1.9% 1.8%
-1.8% -
1,200
2,400
3,600
4,800
2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015
GIL RM'm GIL %
Community Financial Services (4/4) Continued improvement in asset quality with GIL at 1.8%
CFS GIL continued its improving trend at 1.8%
Continued improvement in SME & Business Banking GIL
at 7.3%
Consumer GIL held steady, SME & Business Banking improves
• GIL ratio for consumer financing portfolios held steady on a
YoY and QoQ basis.
• SME and Business Banking GIL continued to improve for a
third consecutive quarter.
• Higher Business Banking GIL in FY2014 was due to
impairments of legacy loans, originated prior to the Business
Banking transformation undertaken in FY2010 to improve its
asset quality position. Improved GIL in 1H 2015 reflects the
continuous monitoring of asset quality and recovery efforts.
GIL % Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015Industry GIL
Q2 2015
CFS 1.8 2.2 2.0 1.9 1.8 N/A
Consumer 0.5 0.5 0.5 0.5 0.5 1.1
Mortgage 0.7 0.7 0.6 0.6 0.6 1.2
Auto 0.5 0.5 0.5 0.5 0.5 1.1
Credit Cards 0.8 0.8 0.7 0.8 0.7 1.3
Unit Trust Loan 0.1 0.1 0.1 0.4 0.1 0.1
SME & Business Banking 7.0 9.6 8.5 7.9 7.3 N/A
SME 3.0 2.7 2.4 2.3 2.1 2.6
Business Banking 8.0 11.5 10.3 9.6 9.1 2.0
31
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
32
2.6
28.8
35.5
2.3
37.5
35.0
2.2
37.7
33.5
Jun'15
Dec'14
Jun'14
Trade Finance and Others
Overdraft
Trade Finance market share ¹
Corporate Banking GIL ratio improved to 1.27% on a YoY
and QoQ basis
Total GB loans decreased by 3.7% (ann.) to RM73.4 billion
but grew 9.6% YoY
+1.5%
(ann.)
-14.6%
(ann.)
RM billion
1 Market share of total trade products (On Balance Sheet items, Contingent
Liabilities and Others)
-8.5%
(ann.)
1.59% 1.57% 1.43%
1.31% 1.27%
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
Term Loan
Global Banking (1/4) Corporate banking asset quality improved to 1.27%
24.8%
25.4%
25.8%
24.6% 24.9%
Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
33
Group Securities Portfolio:
38.8% Foreign Securities as at 1H FY2015
45.3% 32.1%
20.6%
0.3%
0.9% 0.8%
56.6% 20.8%
18.9%
0.4%
0.8% 2.5%
RM21.1
billion
A
<A
RM17.8
billion
50.9 51.5 50.9 48.0 47.6
41.4 44.5 44.5 45.5 46.6
8.7 11.8 9.2 10.3 14.6
Jun 14 Sep 14 Dec 14 Mar 14 Jun 15
Others
PDS/CorpBondsGovt.Securities
Commercial
Papers
1,078.2
1,157.0
1H FY2014 1H FY2015
23.5%
20.2% 24.2%
18.6%
13.4%
645.5 756.5
607.7 627.5
1H FY2014 1H FY2015
Net interest income
Non-interest income
+10.4%
Global Banking (2/4) Revenue growth of 10.4% YoY for Global Markets’ business regionally
Group Securities Portfolio grew 7.8% YoY
+7.8% YoY
101.0 103.8 108.8 104.6
PBT and Revenue grew by 7.3% and 10.4% YoY respectively
+7.3%
1,253.2
PBT Revenue
RM
million
Note: PBT & Revenue includes regional performance
RM 108.8
billion
39.7% of GM PDS (Maybank Conventional Malaysia) rated
“AA” or above as at 1H FY2015
RM
billion
1H FY2015
Government
Securities
-Domestic
Government
Securities
-Foreign
PDS/Corp
Bonds
-Domestic
PDS –
Foreign
Others
(NIDs, BA, etc)
27.3%
23.1% 24.1%
17.0%
8.6%
RM101.0
billion
Government
Securities
-Domestic
Government
Securities
-Foreign
PDS –
Foreign
Others
(NIDs, BA, etc)
1H FY2014
SA
(Govt.
Guaranteed) AAA
AA
SA
(Govt.
Guaranteed) AAA
AA
A Commercial
Papers
Note: Group PDS (Maybank Malaysia) for 1H FY2014 and 1H FY2015 are
RM20.6 billion and RM22.6 billion respectively
107.8
1H FY2015 1H FY2014
<A
1,384.1
PDS/Corp
Bonds
-Domestic
34 34
Global Banking (3/4) Maybank Kim Eng saw total income growth of 7.6% YoY to RM636.4 mil for 1H FY2015
1H FY2015 Equity Brokerage League Table by Country
* Ranking is not disclosed in respective exchanges
Note: Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings
591.2
636.4
RM
’Million
1H FY2014 1H FY2015
+7.6%
Country Rank Market Share Trading Value
(USD m)
Thailand 1 9.2% 29,049
Malaysia 4 8.6% 12,167
Indonesia 11 3.2% 3,928
Philippines 7 4.8% 2,569
Singapore N/A* 4.5% 8,918
Hong Kong Tier2 0.7% 26,071
1H FY2015 Fee-based Income for Malaysia
1H FY2015 Total Income Total Income for Maybank Kim Eng increased by 7.6% YoY
Arrangers' Fees 21%
Brokerage 54%
Other Fee Income
6%
Agency/ Guarantee Fees
3%
Advisory Fees 5%
Placement Fees 6%
Primary Subscribers'
1% Underwriting
Fees 4%
Malaysia, (RM191.1 mil,
30%)
Singapore (RM136.8 mil,
22%)
Thailand (RM195.3 mil,
31%)
Indonesia (RM9.3 mil, 1%)
Philippines (RM29.0 mil,
5%)
Hong Kong (RM45.5 mil,
7%)
Others (RM29.4 mil,
5%)
RM636.4 mil
35 35
Global Banking (4/4) Notable Deals for 1H FY2015
Malaysia
Jun 2015
Malaysia
Sukuk Murabahah
Issuance
Joint Lead Manager
Joint Book Runner
Genting Plantations
Berhad
Sukuk Wakalah
Co-Manager
Jun 2015
Hong Kong
The Government of the Hong
Kong Special Administrative
Region of the People’s
Republic of China
Syndicated Term Loan
Mandated Lead Arranger and
Bookrunner
May 2015
Hong Kong
Fosun International
Limited
Jun 2015
Philippines
National Grid Corporation
of the Philippines
Fixed Rate Corporate
Notes
Lead Arranger
Jun 2015
Indonesia
PT Buana Finance
Syndicated Loan
Lender
Jun 2015
UAE
Sukuk Wakalah
Joint Lead Manager
Joint Bookrunner
Dubai Islamic Bank
Jun 2015
Philippines
San Miguel Consolidated
Power Corporation
7-Year Syndicated
Term Loan Facility
Lead Arranger
PETRONAS Global Sukuk
Ltd
Mar 2015
Malaysia
PETRONAS Capital Ltd
Global Medium Term
Note Programme
Joint Bookrunner
Mar 2015
Turkey
KT Kira Sertifikalari Varlik
Kiralama A.Ş.
Sukuk Wakalah Joint Principal Adviser
Joint Lead Arranger
Joint Lead Manager
Joint Bookrunner
Joint Shariah Advisor
Sukuk Trustee
Mar 2015
Hong Kong
Samson Paper Company
Ltd
Syndicated Term
Financing
Joint Mandated Lead Arranger
Bookrunner
Joint Under Writer
Mar 2015
Malaysia
Mah Sing Group Berhad
Rights Issue
Joint Managing Underwriter
Joint Underwriter
Sapurakencana TMC Sdn Bhd
Jan 2015
Malaysia
Sapurakencana TMC Sdn
Bhd
Syndicated Term
Financing Coordinating Bank
Joint Mandated Lead
Arranger
Investment Agent
Security Agent
Jan 2015
Singapore
Pacific Andes Resources
Dev’t
Initial Public Offering
Sole Financial Adviser
Sole Bookrunner
Joint Underwriter
Feb 2015
Singapore
Hap Seng Consolidated
Berhad
Partial Offer on 51% of
Hafary Holdings Limited
Sole Financial Adviser
Feb 2015
Malaysia
Weststar Aviation
Services Sdn Bhd
Syndicated Murabahah
Term Financing &
Islamic Working Capital
Facilities Mandated Lead Arranger
Lender
Malaysia
Apr 2015
IJM Corporation Berhad
Privatisation of
IJM Land Berhad
Principal Adviser
May 2015
Malaysia
Malakoff Corporation
Berhad
Initial Public Offering Transaction Manager
Joint Principal Advisor
Joint Global Coordinator
Joint Bookrunner
Joint Managing Underwriter
Joint Underwriter
Apr 2015
Singapore
Pacificlight Power Pte
Ltd / Pacificlight Energy
Pte Ltd
Syndicated Credit
Facilities Financial Advisor
Mandated Lead Arranger
Underwriter
SBLC Issuing Bank
Facility/Security Agent
Mar 2015
Thailand
Platinum Group
Initial Public Offering
Sole Financial Adviser
Sole Bookrunner
Joint Underwriter
May 2015
Malaysia
Eco World – Ballymore
Holding Company Limited
Syndicated Loan
Joint Mandated Lead Arranger
Joint Bookrunner
May 2015
Jambatan Kedua Sdn Bhd
Malaysia
Islamic Medium Term
Note Joint Lead Arranger
Joint Lead Manager
Joint Bookrunner
Facility Agent
Financial Adviser
Malaysia
Mar 2015
Islamic Trust
Certificates
Joint Bookrunner
PETRONAS Global Sukuk
Ltd
Apr 2015
Cititower Sdn Bhd
JV KLCC (Holdings) Sdn
Bhd & QD Asia Pacific Ltd
Syndicated Islamic Term
Financing
Joint Mandated Lead Arranger
Bookrunner
Joint Underwriter
Malaysia
MYR 1.98 Billion UP TO MYR 1.5 Billion SGD 1.1 Billion THB 5.18 billion UP TO GBP 1.1 Billion UP TO MYR 4.6 Billion USD 1.25 Billion UP TO MYR 3.2 Billion
USD 15 Billion MYR 300 million HKD 728 million MYR 629 Million USD 2.32 Billion SGD 195.5 Million UP TO SGD52.5 Million MYR 1.9 Billion
UP TO MYR1.0 Billion USD 1 Billion USD 800 Million PHP1.0 Billion USD50 Million USD750 Million USD60 Million
36
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
37
Maybank Singapore (1/3) Net income of SGD 398 million, on higher net fund based income
(SGD mil) 1H FY2015 1H FY2014 YoY
Net Fund Based income 277.02 244.62 13.2%
Net Fee Based income 121.10 150.77 (19.7)%
Net income 398.12 395.39 0.7%
Overhead expenses 176.67 164.94 7.1%
Operating profit 221.45 230.45 (3.9)%
Profit before taxation 199.64 211.03 (5.4)%
PBT was lower by 5.4% YoY or SGD 11.4 million to SGD 199.64 million for 1H FY2015.
Net fund-based income increased by 13.2% YoY on the back of expanded loan base.
Fee-based income declined 19.7% YoY as a decline in both treasury and wealth management
income overshadowed a rise in credit-related fees.
Overhead expenses increased by 7.1% YoY mainly arising from higher personnel cost from
expanded headcount.
38
0.30 0.31 0.28 0.26 0.24 0.31
0.42
0.24 0.23 0.22 0.20 0.20 0.25
0.35
Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
GIL Ratio NIL Ratio
7.6 8.5 8.5
4.8 4.2 4.3
4.2 4.4 3.9
4.5 5.6 5.8
6.6 7.5 8.9
2.3 2.1 1.9 2.3 2.6 3.1
Jun 14 Dec 14 Jun 15
Other(Consumer)
Car Loan
Housing Loan
Others(Corporate)
Non-Bankfinancial Inst
GeneralCommerce
Building &Const
Asset Quality increased YoY, on specific accounts Maybank Singapore loans up 9.9% YoY, ahead of industry
growth of 3.4%
Diversified Loan Portfolio
33.2 36.5
Consumer
38%
Corporate
62%
SG
D b
illion
As at 30 June 2015, total loans rose by 8.2% YTD
annualised.
Consumer loans expanded by 29.1% YTD (ann.) to
SGD 14.0 billion, lifted by strong growth in both
housing and other personal loans. Car loans
continued to decline in line with industry trend.
In comparison, business loans contracted by 3.0%
YTD to SGD 22.5 billion. Trade finance loans fell
amid a slowdown in regional trade flows and lower
commodity prices.
13.8% 13.3%
18.8%
21.3%
13.4% 11.6%
9.9%
19.6% 17.3% 16.5%
14.0%
9.3%
6.7% 3.4%
Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15
Maybank Singapore Growth Industry Growth
+9,9% YoY
35.0
+8.2% ann.
Maybank Singapore (2/3) Loans up by 8.2% YTD (ann.) on the back of higher consumer loans
39
4.3 4.8 4.5
9.9 12.1 11.9
4.7 5.1 5.1
16.0 17.6 17.5
Jun-14 Dec-14 Jun-15
Consumer -Time Deposits
Consumer CASA
Business TimeDeposits
Business CASA
Maybank Singapore (3/3) Deposits YoY growth of 11.6% outpaced industry growth of 6.4%
Maybank Singapore deposit up 11.5% YoY in Jun-15,
as compared to the 6.4% rise in system-wide deposit
Consumer deposits account for 58% of our deposits
+11.6% YoY
35.0 39.0
Consumer
58%
Corporate
42%
SG
D b
illion
4.3 4.5 4.5
4.8 5.3 5.1
26.0 29.7 29.4
Jun-14 Dec-15 Jun-15
Time Deposits
Demand Deposits
Savings
CASA Ratio:
24.6%
CASA growth of 6.3% YoY
13.7%
4.1%
3.3%
7.3%
16.5% 17.0%
11.6%
8.7% 6.8% 5.0%
4.4%
7.0%
8.0%
6.4%
Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun-15
Maybank Singapore Growth Industry Growth
As at 30 June 2015, deposits declined by 2.9% YTD (ann.)
to SGD 39.0 billion.
Consumer deposits declined by 0.8% YTD (ann.) to SGD
22.6 billion. Consumer CASA was largely unchanged but
time deposits fell by 1.0% YTD (ann.)
Meanwhile, business deposits fell by 5.9% YTD (ann.) to
SGD 16.4 billion on the back of lower CASA (-12.5% YTD
ann.) and time deposits (-3.3% YTD ann.)
39.6
- 2.9% ann.
40
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
41
(IDR billion) 1H FY2015 1H FY2014 YoY 2Q FY2015 1Q FY 2015 QoQ
Net Fund Based income 3,088 2,785 11% 1,502 1,586 (5)%
Net Fee Based income 1,081 997 8% 461 621 (26)%
Net income 4,170 3,782 10% 1,962 2,207 (11)%
Overhead expenses (2,767) (2,469) 12% (1,314) (1,453) (10)%
Personnel (1,230) (1,088) 13% (600) (630) (5)%
General & Administrative (1,537) (1,381) 11% (714) (823) (13)%
Operating profit 1,403 1,313 7% 648 755 (14)%
Provisions Expenses (952) (703) 35% (525) (426) 23%
Non Operating Income/ Expenses 73 (93) 178% 49 24 101%
Profit Before Tax before Minority
Interest 524 517 1% 172 353 (51)%
Net Profit 388 341 14% 133 256 (48)%
EPS - Basic (IDR) 5.73 5.59 3% 1.96 3.77 (48%)
Bank Internasional Indonesia (1/4) Net profit increased by 14% YoY on higher net fund based income and net fee based income
42
17.7 16.4 16.3 18.4
24.7 24.3 23.5 24.0
64.9 65.2 62.7 64.7
Dec-13 Jun-14 Dec-14 Jun-15
Current Account Saving Account Time Deposit
4.94%4.48%
4.76% 4.73%
Dec-13 Jun-14 Dec-14 Jun-15
30.9 29.4 24.0 21.4
35.3 38.3 40.8 43.3
35.8 38.3 41.5 43.8
Dec-13 Jun-14 Dec-14 Jun-15
Global Banking Business Banking Retail Banking
Net Interest Margin (Consolidated)
Asset Quality (Consolidated)*
Loans composition (Consolidated) IDR Trillion
Deposits (Consolidated) IDR Trillion
108.5 106.3 106.0
2.4% YoY
4.1% ann.
102.0
107.1 102.5 105.9
1.1% YoY
8.9% ann.
107.3
Bank Internasional Indonesia (2/4) Loans growth of 4.1% (ann.) driven by strong growth in retail and business banking
3.61%3.42% 3.34%
3.59%
4.62%
2.77%2.62%
2.44% 2.56%
3.29%
Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
Impaired Loans - Gross Impaired Loans - Net
BII’s reported numbers are based on Bank Indonesia’s accounting classification regulations while
the Maybank Group numbers for BII are based on Group’s management reporting classification
43
0.12%
0.19% 0.15%
0.30% 0.25% 0.14%
0.23%
0.18%
0.37% 0.33%
Jun-14 Sept-14 Dec-14 Mar-15 Jun-15
NPL Net NPL Gross
22,534
630
23,164 25,537
304
25,841
New Used Total
Jun-14 Jun-15
349
420
154 190
Jun-14 Jun-15
Revenue Profit Before Tax
Asset Quality
Revenue and Profit Before Tax IDR billion
Bank Internasional Indonesia (3/4) BII Finance’s PBT increased by 23.8% YoY
Consumer Financing IDR billion 37.3%
23.8%
Unit Financing (unit)
11.6%
51.7%
13.3%
3,001
4,119
Jun-14 Jun-15
44
4,149
4,596
Jun-14 Jun-15
1.47% 1.24% 1.07% 1.09%
1.45%
3.08% 3.03% 2.75% 2.81% 2.91%
Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
NPL Net NPL Gross
Bank Internasional Indonesia (4/4) WOM Finance revenue increased by 16.9% and asset quality remained stable
Consumer Financing IDR billion
716
837
35 (27)
Jun-14 Jun-15
Revenue Profit Before Tax
201
77
278
186
113
300
New Used Total
Jun-14 Jun-15
10.8%
7.5%
47.9%
7.7%
Asset Quality
Revenue and Profit Before Tax IDR billion
Unit Financing (‘000 unit)
16.9%
45
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
46
27.61
24.48 25.93
4.70
10.70
15.13
30.23
28.33 27.98
4.64
12.28
18.40
AITAB Mortgage Term Financing Others (CFS) Term Financing Others (GB)
RM b
illio
n
Dec-14 Jun-15
GB: 37%
Islamic Banking (1/2) Higher Group Islamic Banking PBT of 12.3% for 1H FY2015 on the back of strong financing growth
Group Islamic Banking Financial Performance
Note: Group Islamic Banking includes Maybank Islamic and the Group’s
other Islamic operations
RM million 1H
FY2015
1H
FY2014 YoY
Total Income 1,899.8 1,617.7 17.4%
Profit Before Tax 748.6 666.6 12.3%
Maybank Islamic: Improving key ratios
1H
FY2015
1H
FY2014
Net Profit Margin (NPM) YTD 1.96% 1.89%
Return on Risk-Weighted Assets
(RRWA) 2.55% 2.40%
Cost to Income Ratio* 38.14% 37.50%
*Cost for 1H FY2014 is normalised after adjustment
CFS: 21 %
Maybank Islamic: Total Gross Financing grew by
25% (ann.) to RM121.9 billion p19%
p31% p16%
q3%
p30%
p43%
Maybank Islamic contribution to Maybank
Malaysia Financing as at June 2015
47
Islamic Banking (2/2) Maybank Islamic Malaysia maintained its leadership for both financing and deposit
Jun 15 Jun 14
Automobile financing 41.5% 37.5%
Home Financing 26.8% 24.3%
Term financing 30.1% 29.8%
CASA Deposits 31.8% 31.4%
Maybank Islamic Market Share (Malaysia) Market Share by Product
30.7% 31.1% 31.6%32.7% 33.0% 33.4%
24.1%25.1% 24.7% 24.9% 24.4% 24.8%
15.0%
20.0%
25.0%
30.0%
35.0%
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15
Financing Deposit
Maybank ranks No.1 by Asset Market Share in Malaysia
Source: BNM monthly statistical bulletin Mar-15 and respective Bank’s Financial
Statements
Malaysia Asset Market Share
Mar 15 Rank
Maybank Islamic 30% 1
CIMB Islamic 11% 2
Bank Islam 9% 3
Source: Bloomberg
Sukuk League Table Ranking for 1H 2015
48
Insurance and Takaful Gross premiums for life/family and general rose 3.8% YoY
Total Assets (RM billion)
Gross Premium
Profit Before Tax (RM million)
-43.9% YoY
• PBT includes estimated transfer of RM30.4 million from Family Fund in 1H FY2015.
- 0.7% YoY
- 3.1% YTD
Life / Family (New Business) Market Share
No. 4 in Life/Family
(New Business)
No. 1 in General
Insurance and
Takaful
* Market Share is for period Apr’14 – Mar’15 (Source: LIAM / ISM Statistics)
10.2%
14.3%
14.9%
18.6%
0.0% 5.0% 10.0% 15.0% 20.0%
Etiqa Ins. & Tak.
GE Ins. & Tak.
Prudential Ins. & Tak.
AIA Ins. & Tak.
8.3%
11.1%
13.1%
0.0% 5.0% 10.0% 15.0%
AmGeneral Insurance
Allianz Insurance
Etiqa Ins. & Tak.
General Insurance and Takaful Market Share
27.3 27.5 27.1
Jun 14 Dec 14 Jun 15
355.0
199.0
1H FY2014 1H FY2015
49
48,670.6
53,110.5 52,483.0
50,400.7
Dec 14 Jun 15
PESO
Mil
GrossLoans
CustomerDeposits
1,882.3
2,323.3
295.9 383.7
1H FY2014 1H FY2015
PESO
Mil
Revenue
PBT
Maybank Philippines PBT growth of 29.7% YoY driven by higher net interest income and non-interest income
Revenue and PBT
Revenue improved by 23.4% or PESO441.0 mil YoY due to higher
net interest income and non-interest income, on the back of
positive loan growth, increase in commissions and higher gain on
sale of securities.
PBT increased by 29.7% or PESO87.8 mil YoY on the back of
higher income but was partly offset by the increase in overheads
and higher loan loss provisions.
Gross Loans grew by 18.2% (ann.) driven by the increase in
corporate loans and auto loans.
Customer Deposits declined by 7.9% (ann.) caused by the drop in
Current Accounts and Fixed Deposits.
Gross impaired loans ratio was higher by 19 bps to 3.70% from
3.51% previously, impacted by the Credit Card and Auto
segments.
Gross Loans and Deposits
Key Highlights
*Annualised growth
+23.4% YoY
29.7% YoY
+18.2%*
-7.9%*
Key Ratios 1H FY2015 1H FY2014
Return on assets 0.96% 0.81%
Return on equity 6.07% 1.17%
Cost-to-income ratio 73.76% 80.04%
Loans-to-deposit ratio 105.38% 95.03%
Gross Impaired Loans Ratio 3.70% 3.51%
No. of branches 79 79
50
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
51
42,633.1 42,116.6
45,403.7
43,127.8
Dec 14 Jun 15
GrossLoans
CustomerDeposits
784.4
986.0
170.3 161.1
1H FY2014 1H FY2015
Revenue
PBT
An Binh Bank Higher revenue growth of 25.7% YoY on higher fee income
Revenue and PBT
Gross Loans and Deposits
-2.4%*
-10.0%*
-5.4% YoY
+25.7% YoY
Key Highlights
VN
D B
il
VN
D B
il
*Annualised growth
Revenue increased 25.7% or VND201.6 billion primarily
contributed by higher fee income.
However, PBT dropped by 5.4% or VND9.2 billion due to
higher loan loss provision made.
Overheads increased by 10.2% due to higher admin and
general expenses.
Gross Loans was marginally lower by 2.4% (ann.) or
VND516.5 billion due to lower FI lending.
Customer Deposits decreased by 10.0% (ann.) or VND2,275.9
billion mainly due to the drop in corporate fixed deposits by
VND1,816.0 billion.
Gross NPL ratio improved to 2.8% from 5.6% contributed by
lower NPL amount compared to prior year.
Key Ratios 1H FY2015 1H FY2014
Return on assets 0.50% 0.60%
Return on equity 5.60% 5.90%
Cost-to-income ratio 56.58% 64.56%
Loans to deposit ratio 97.66% 92.05%
Gross NPL Ratio 2.80% 5.58%
52
322.8 333.5
676.0 738.4
Dec 14 Jun 15
Gross Loans
CustomerDeposits
PKR b
illion
27.1
34.4
18.1
24.2
1H FY2014 1H FY2015
Revenue
PBT
+33.7% YoY
PBT increased by 33.7% YoY contributed by higher revenue.
Net interest income grew by 15.9% YoY, in tandem with
the growth in loans and investments.
Non-interest income grew by 68.7% YoY mainly
contributed by higher gain on sale of securities and
higher commissions and brokerage income.
Gross Loans rose by 6.6% (ann.) driven by higher domestic
loans.
Customer Deposits increased by 18.5% (ann.) contributed
by an increase in CASA.
Gross NPL ratio improved by 93 bps due to a decrease in
NPL balance and higher loan balance.
MCB Bank PBT increased by 33.7% YoY, on higher revenues and lower provisions
Revenue and PBT
Gross Loans and Deposits
+18.5%*
+26.9% YoY
Key Highlights
PKR b
illion
*Annualised growth
+6.6%*
Key Ratios 1H FY2015 1H FY2014
Return on assets 2.73% 2.79%
Return on equity 24.60% 22.99%
Cost-to-income ratio 33.41% 37.92%
Loans to deposit ratio 45.16% 45.08%
Gross NPL Ratio 6.36% 7.29%
53
Table of Contents
Executive Summary
Financial Performance
Prospects & Outlook
Appendix: Business Sector Review
1. Community Financial Services
2. Global Banking
3. Maybank Singapore
5. Other segments
6. Affiliates
4. Bank Internasional Indonesia
Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015
7. Quarterly Financial Summary
7
2
23
27
32
37
41
46
51
54
54
Key Operating Ratios
¹ Total cost excludes amortisation of intangibles for BII and Kim Eng.
² The capital ratios are adjusted based on the assumption of 80% reinvestment rate under the DRP for 1H FY2015 and 85% reinvestment rate for 1Q FY2015 and 1H FY2014
(%) 1H
FY2015
1H
FY2014
Variance
YoY
2Q
FY2015
1Q
FY2015
Variance
QoQ
2Q
FY2014
Return on Equity 12.1 13.5 (1.4)% 11.7 12.8 (1.1)% 13.4
Net Interest Margin 2.28 2.36 (8) bps 2.28 2.26 2 bps 2.35
Fee to Income Ratio 29.5 29.8 (0.3)% 27.5 31.5 (4.0)% 30.0
Loans-to-Deposit Ratio 94.2 90.6 3.6% 94.2 92.2 2.0% 90.6
Cost to Income Ratio1 49.5 47.4 2.1% 49.2 49.7 (0.5)% 46.3
Asset Quality
Gross Impaired Loans Ratio 1.56 1.50 6 bps 1.56 1.50 6 bps 1.50
Net Impaired Loans Ratio 1.15 0.97 18 bps 1.15 1.06 9 bps 0.97
Loans Loss Coverage 83.4 107.7 (24.3)% 83.4 93.5 (10.1)% 107.7
Net Charge off rate (bps) (27) (20) (7) bps (29) (24) (5) bps (17)
Capital Adequacy (Group)²
CET1 Capital Ratio 11.48 11.44 4 bps 11.48 11.15 33 bps 11.44
Total Capital Ratio 15.54 15.96 (42) bps 15.54 15.35 19 bps 15.96
55
Group Gross Loans by quarter
¹ Including Islamic loans sold to Cagamas and excludes unwinding of interest
²Takes into account others portion - Jun 15: RM15 million; Mar 15: RM7 million; Dec 14: RM7 million
³ Normalised loan growth as at 31 Mar 2015 & 30 Jun 2015, prior to a transfer of SGD 2.2 billion from GB to CFS for Business Banking segment due to realignment to the Group
Customer Segmentation
31 Dec 2014 31 Mar 2015
1Q
Annualised 30 Jun 2015
2Q
Annualised
Group Gross Loans¹ 410.5 419.0 8.4% 433.3 13.6%
Malaysia (RM billion) ² 243.6 245.9 3.8% 248.8 4.6%
Community Financial Services 168.8 171.8 7.2% 175.3 8.1%
Global Banking 74.8 74.1 (3.9)% 73.4 (3.5)%
International (RM billion) 162.4 167.0 11.3% 178.7 28.1%
Singapore (SGD billion) 35.1 35.0 (1.1)% 36.6 17.5%
Community Financial Services (reported) 14.8 17.7 79.7% 19.1 30.3%
Community Financial Services (normalised) 14.8 15.5³ 18.9% 16.8³ 33.5%
Global Banking (reported) 20.1 17.0 (60.6)% 17.2 4.4%
Global Banking (normalised) 20.1 19.2³ (17.9)% 19.4³ 6.3%
Others 0.3 0.3 (1.1)% 0.3 (9.2)%
Indonesia (Rupiah trillion) 109.3 110.7 5.0% 111.4 2.6%
Community Financial Services 84.1 85.6 7.3% 89.0 15.6%
Global Banking 24.9 24.7 (3.6)% 22.2 (41.0)%
Others 0.3 0.4 99.0% 0.3 (70.8)%
Other markets (RM billion) 38.8 41.3 26.2% 44.6 31.8%
Investment banking (RM billion) 4.4 6.1 152.8% 5.8 (19.7)%
56
Malaysia Gross Loans by quarter
¹ Re-based loan growth figures are based on adjusted 31 Dec 2014 position in line with migration of client accounts, implemented on 1 Jan 2015.
² Including Islamic loans sold to Cagamas and excludes unwinding of interest and takes into accounts others portion - Jun 15: RM15 million; Mar 15: RM7 million; Dec 14: RM7 million
RM billion 31 Dec 2014 31 Mar 2015 1Q
Annualised 30 June 2015
2Q
Annualised
Community Financial Services 168.8 171.8 7.2% 175.3 8.1%
Consumer 135.7 138.9 9.2% 141.4 7.3%
Total Mortgage 60.9 62.8 12.1% 65.1 14.7%
Auto Finance 38.6 39.7 10.7% 40.4 7.0%
Credit Cards 5.8 6.0 12.7% 6.0 (3.5)%
Unit Trust 28.3 28.3 0.4% 27.7 (7.8)%
Other Retail Loans 2.1 2.1 3.8% 2.3 26.9%
Business Banking + SME 33.1 33.0 (0.9)% 33.9 11.5%
Business Banking + SME (Re-based¹) 31.9 33.0 13.7% 33.9 11.5%
SME 7.5 7.9 21.7% 8.9 46.8%
Business Banking 25.5 25.1 (7.5)% 25.1 0.3%
Global Banking (Corporate) 74.8 74.1 (3.9)% 73.4 (3.5)%
Total Malaysia² 243.6 245.9 3.8% 248.8 4.6%
57
31 Dec 2014 31 Mar 2015 1Q
Annualised 30 Jun 2015
2Q
Annualised
Group Gross Deposits 439.6 447.1 6.8% 453.5 5.7%
Malaysia (RM billion) 278.3 278.6 0.4% 285.4 9.7%
Savings Deposits 38.5 39.7 12.6% 40.3 5.9%
Current Accounts 72.8 74.9 11.7% 72.5 (12.9)%
Fixed Deposits 140.8 143.6 8.1% 155.2 32.2%
Others 26.2 20.3 (89.7)% 17.4 (58.5)%
International 162.9 170.0 17.5% 169.6 (0.8)%
Singapore (SGD billion) 39.6 39.2 (3.9)% 39.0 (1.9)%
Savings Deposits 4.5 4.3 (20.9)% 4.5 17.8%
Current Accounts 5.3 5.3 0.2% 5.1 (15.7)%
Fixed Deposits 29.0 28.7 (3.3)% 28.9 2.0%
Others 0.8 0.9 45.6% 0.5 (144.9)%
Indonesia (Rupiah trillion) 102.8¹ 104.7 7.6% 106.9 8.3%
Savings Deposits 23.5 23.7 4.2% 24.0 5.6%
Current Accounts 16.3 17.3 23.8% 18.4 24.1%
Fixed Deposits 62.4 63.7 8.1% 64.5 5.1%
Group Gross Deposit by quarter
¹ Includes Others of Rupiah 0.6 trillion
58
Mohamed Rafique Merican
Group Chief Financial Officer
Contact: (6)03-2074 7878
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
Narita Naziree
Head, Group Performance Reporting & 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
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