Financial Results1st Quarter FP2011 ended 30 September 2011
Analyst Briefing 14 November 2011
Executive Summary
Financial Performance
Business ReviewBusiness Review
Country Review
Economic Update and Prospects
1
Key Highlights
PATAMI for 1QFP11 grew 25.1% YoY and 11.4% QoQ to RM1.29 billion supported by strong revenue and pre-tax profit growth from all business segments.
R 6 l t ll b i t d d d bl di itRevenue grew 17.6% as almost all business segments recorded double digit revenue growth.
QoQ revenue declined 2.7% due to RM321.1m year end transfer of actuarial surplus to insurance income in 4QFY11 Normalised QoQ revenue would be an increase of 6 3%insurance income in 4QFY11. Normalised, QoQ revenue would be an increase of 6.3% .
Allowance for losses on loans declined 62.7% YoY to RM98.7m due to better asset quality and higher bad debts recovery mainly from GWB’s Corporate Banking, CFS’s Business Banking and SME and SingaporeBanking and SME, and Singapore.
Group loans grew 17.6% on an annualised basis contributed by overseas loans growth of 41.4% with growth in Singapore of 41.0% and Indonesia of 26.6%. Domestic loans grew 7 2% YoY driven by 17 4% growth in mortgage7.2% YoY driven by 17.4% growth in mortgage.
Capitalisation remains healthy with Risk Weighted Capital Ratio at 14.86% and Core Capital Ratio at 10.83% at Group level and 13.58% at Bank level.
KPI achievement: Return on Equity of 15.8% was higher than FY11’s ROE of 15.2% and on track to achieve FP11’s ROE of 16.0%. Loans and Debt Securities growth of 20.5% was well ahead of the target of 12.0%.
2
Key Performance Indicators for 1Q FP11
Headline KPIs Target 1Q FP11 achievements
Return on Equity 16% 15.8% (annualised)
Financial Assets Growth 12% 20.5% (annualised)
Other targets Target 1Q FP11 achievements
Group Loans Growth 12% 17.6%
• Malaysia 12% 7.2%
• Singapore 8% 41.0%
• BII 24% 26.6%
Group Deposits Growth 14% 14.9%
Risk Weighted Capital Ratio (RWCR) > 12% 14 86%Risk Weighted Capital Ratio (RWCR) > 12% 14.86%
Note: Loans growth for Singapore and BII are in their local currencies
3
Executive Summary
Financial Performance
Business ReviewBusiness Review
Country Review
Economic Update and Prospects
4
1Q FP11 PATAMI rose 25.1% YoY to RM1.29 billion
1Q FP11 4Q FY11 1Q FY11
30 Sep 11 30 Jun 11 30 Sep 10
Net interest income 1,873.6 1,826.7 2.6% 1,774.5 5.6%
QoQ Change
YoY Change
Quarter
Net Fund based income (Islamic Banking) 438.5 365.4 20.0% 294.2 49.0%
Total net fund based income 2,312.1 2,192.1 5.5% 2,068.7 11.8%
Net income from insurance business* 96.5 345.4 -72.1% 86.8 11.2%
Non-interest income 1,222.7 1,196.7 2.2% 954.2 28.1%
Fee based income (Islamic Banking) 77.8 77.6 0.3% 44.0 76.8%
Total fee-based income 1,300.5 1,274.3 2.1% 998.2 30.3%
Net income 3,709.1 3,811.8 -2.7% 3,153.7 17.6%
Overhead expenses (1,887.9) (1,962.1) -3.8% (1,502.1) 25.7%p ( ) ( ) ( )Operating Profit before allowances forlosses on loans
1,821.3 1,849.7 -1.5% 1,651.6 10.3%
Allowance for losses on loans (98.7) (47.7) 106.9% (264.7) -62.7%
Impairment losses on securities, net 1.0 (114.0) -100.9% (13.9) -107.3%
O ti P fit 1 723 5 1 688 0 2 1% 1 373 0 25 5%Operating Profit 1,723.5 1,688.0 2.1% 1,373.0 25.5%
Share of profits in associates 36.5 40.5 -9.9% 31.4 16.5%
Profit before taxation and zakat 1,760.0 1,728.5 1.8% 1,404.3 25.3%
Taxation & Zakat (454.2) (475.3) -4.4% (350.7) 29.5%
Mi it I t t (19 5) (98 9) 80 3% (25 5) 23 7%Minority Interest (19.5) (98.9) -80.3% (25.5) -23.7%Profit after Tax and Minority Interest(PATAMI) 1,286.4 1,154.3 11.4% 1,028.1 25.1%
EPS (sen) 17.20 15.54 10.7% 14.53 18.4%
5
*net of insurance claims
Strong Balance Sheet: Total Assets grew 18.1% annualised
RM billion Sep 11 Jun 11AnnualisedGrowth
Sep 10YoY
Growth
Cash and short‐term funds 40.7 38.8 20.0% 27.1 50.2%Deposits with financial institutions 6.1 10.3 ‐164.8% 15.7 ‐61.6%Securities purchased under resale agreements 0.1 ‐ ‐ 0.2 ‐61.9%Securities portfolio 66.0 61.0 32.8% 58.7 12.4%Loans and advances 265 3 254 0 17 9% 206 8 28 3%Loans and advances 265.3 254.0 17.9% 206.8 28.3%Life, general takaful and family takaful fund assets 19.4 19.2 3.6% 18.3 6.1%Other assets 33.0 28.7 60.5% 20.3 62.4%Total Assets 430.6 412.0 18.1% 347.1 24.0%D it f t 293 3 282 0 16 0% 237 0 23 8%Deposits from customers 293.3 282.0 16.0% 237.0 23.8%Deposits and placements of banks and FI 36.1 33.3 33.2% 31.9 13.0%Borrowings 6.3 5.4 65.0% 3.3 91.4%Subordinated debts 13.0 10.8 80.9% 8.0 61.8%Capital Securities 6.1 6.1 1.4% 6.0 2.4%Insurance & Takaful liabilities & policyholders' funds 19.4 19.2 3.6% 18.3 6.1%Other liabilities 22.2 22.6 ‐8.0% 13.5 64.2%Total Liabilities 396.4 379.5 17.8% 318.0 24.6%Shareholders Funds 33.0 31.5 19.3% 28.3 16.5%Total Liabilities and Equity 430.6 412.0 18.1% 347.1 24.0%Loan‐to‐deposit Ratio 90.5% 90.1% 87.3%
6
Gross loans grew 17.6% annualised
Group loans growth driven by strong overseas loans growth of 41.4% with Singapore at 41.0% and BII at 26.6%. Domestically, loans grew 7.2% annualised and 18.7% YoY.
RM billion Sep 11 Jun 11 Sep 10Annualised Growth
YoY Growth
Community Financial Services 115.2 112.5 105.7 9.4% 9.0% Consumer 90.6 87.9 78.4 12.7% 15.6% Total Mortgage 40.3 38.6 35.2 17.4% 14.3% Auto Finance 26.6 26.0 23.3 9.7% 14.2% Credit Cards 5.0 4.9 4.2 9.8% 20.2% Unit Trust 17.5 17.1 14.2 8.4% 22.7% Other Retail Loans 1.3 1.3 1.5 ‐1.0% ‐14.4% Business Banking + SME 24.6 24.7 27.2 ‐2.2% ‐9.9%GWB (Corporate) (Malaysia) 57.9 57.4 40.1 3.2% 44.2%Total Domestic 173.2 170.1 146.0 7.2% 18.7%International 98.7 89.4 70.3 41.4% 40.4% Singapore (SGD'bn) 24.3 22.1 17.8 41.0% 37.0% BII (Rupiah'tril) 62.0 58.1 50.8 26.6% 21.9% Others 16.8 14.7 11.1 56.9% 51.7%Investment Banking 1.9 2.0 0.2 ‐27.3% 1076.6%Gross Loans 273.7 261.5 216.4 17.6% 26.5%
7
Deposits grew 14.9% annualised
i b li d d i i l b Si ( 6 ) d l i ( 6 )Deposits grew by 14.9% annualised driven mainly by Singapore (+36.5%) and Malaysia (+11.6%).
RM bilAnnualisedGrowth
SGD bilAnnualisedGrowth
Rupiah TrilAnnualisedGrowth
RM bilAnnualisedGrowth
Malaysia Singapore BII Group
Growth Growth Growth Growth
Fixed Deposits 82.5 ‐3.2% 18.9 43.2% 41.2 20.0% 157.7 13.7%Savings Deposits 32.0 8.7% 2.8 4.4% 14.8 3.5% 45.0 8.7%Current Accounts 50.7 31.9% 2.6 11.9% 10.8 ‐44.0% 60.6 16.5%Others 27 1 26 1% 0 5 132 0% ‐ ‐ 28 4 29 8%Others 27.1 26.1% 0.5 132.0% ‐ ‐ 28.4 29.8%Total Deposits 192.4 11.6% 24.8 36.5% 66.7 4.6% 293.3 14.9%*Low cost funds (CASA)LD Ratio
42.8% 21.7% 38.3% 36.0%86.1% 97.4% 91.0% 90.5%
* Normalised to exclude exchange rate fluctuation
Loans-to-Deposit Ratio
* Normalised to exclude exchange rate fluctuation
Malaysia Singapore BII Group
87 4% 86 8%
90.1% 90.5%89.2% 88.8% 87.7%
96.4%
97.4%
91.3%88 1%
91.0%
Malaysia Singapore BII Group
87.4% 86.8%86.1%86.3%
81.2% 80.9%
88.1%
8
Jun 09 Jun 10 Jun 11 Sep 11Jun 09 Jun 10 Jun 11 Sep 11 Jun 09 Jun 10 Jun 11 Sep 11 Jun 09 Jun 10 Jun 11 Sep 11
Asset Quality improved YoY with loan loss declining by 62.7% to RM98.7 million andNet Impaired Loan ratio declining to 2.19%
Net Impaired Loan RatioAllowance for losses on loans
2.99%264.7
2.83%2.74%‐62.7% YoY
2.39%
2.25%2.18%
117.598.7
+107.0% QoQ
2.18%72.2
47.7
Day 1 Sep 10 Dec 10 Mar 11 Jun 11 Sep 111Q11 2Q11 3Q11 4Q11 1Q FP11
1 Jul 10
9
Non-Interest Income including Net Income from Insurance Business and Fee Income from Islamic operations grew 28.7% YoY to RM1.40 billion
+28 1%
1,223 1Q FY11 1Q FP11
+46 1%
+28.1%
954 860
+46.1%
588
235299
+ 73.5%+69.2% ‐262.7% +11.2%+5814.2% +186.4%
RM m
illion
139 186
(5) 46 86.8 45.3
235
(303)
132 96.5 78.6
Total non‐interest Commission, Investment & Unrealised Foreign Exchange Other Income Net income from Fee income from income service charges
and feesTrading Income gain/(losses) on
securities & derivatives
profit Insurance Business
Islamic Operations
10
Overheads grew 25.7% YoY but declined by 3.8% QoQ
Admin, general expenses & fees & brokerage
Marketing Expenses
IT Expenses+25.7% YoY
QoQ YoYPersonnel costs ‐0.9% 23.1%
Overhead Expenses1Q FP11
Personnel costs +25.7% YoY
‐3.8% QoQ1 962 1
IT Expenses ‐18.2% 18.6%Marketing Expenses ‐26.3% 11.3%Admin, general expenses& fees & brokerage
‐0.2% 34.6%
634.8 633.7
1,887.91,962.1
1,502.1Overhead expenses rose 25 7% due to higher
& fees & brokerageTotal ‐3.8% 25.7%
161.2 131.9 87 3
131.8 97.2
470.9
million
Overhead expenses rose 25.7% due to higher personnel cost of 23.1% attributed to consolidation of Kim Eng and higher ESOS charge.
1,034.3 1,025.1
111.2 87.3
RM
As a result, the Group Cost to Income Ratio (CIR) rose to 50.4% from 47.6% in the corresponding period.
832.7
11
1Q FY11 4Q FY11 1Q FP11
Capital Adequacy remained strong
Group
14.25% 14.86%14.72% 15.36%
11.21% 11.84% 10.23% 10.83%
30 Jun 11* 30 Jun 11** 30 Sep 11* 30 Sep 11**
Core capital ratio Risk‐weighted capital ratio * Full electable portion paid in cash
Bank
portion paid in cash
** Full electable portion reinvested
12.49% 13.32% 12.79% 13.58%
30 Jun 11* 30 Jun 11** 30 Sep 11* 30 Sep 11**
12
Core capital ratio & Risk‐weighted capital ratio
Maybank Group: Key Ratios
1Q FP11 4Q11 3Q11 2Q11 1Q11
Net Interest Margin 2.46% 2.50% 2.57% 2.70% 2.69%Return on Equity 15.8% 15.1% 15.5% 15.7% 14.6%Fee to Income Ratio 37.9% 42.3% 33.8% 33.5% 31.7%Cost to Income# 50.4% 51.5% 49.0% 49.8% 47.6%Loan‐to‐Deposit Ratio 90 5% 90 1% 89 4% 88 4% 87 3%Loan‐to‐Deposit Ratio 90.5% 90.1% 89.4% 88.4% 87.3%
Asset QualityGross NPL or Impaired Loan Ratio 3.23% 3.20% 3.66% 4.20% 4.70%Net NPL or Impaired Loan Ratio 2.18% 2.25% 2.39% 2.74% 2.99%Loan Loss Coverage 81.9% 86.0% 86.9% 84.6% 84.1%Charge off rate (bps) 15 8 13 22 49
Capital Adequacy (Group)Core Capital Ratio 10.83%^ 11.84%^ 11.60%* 11.85% 11.38%*Risk Weighted Capital Ratio 14.86%^ 15.36%^ 14.12%* 14.21% 14.05%*
# Total cost excludes amortisation of intangibles for BII and Kim Eng
^ Assuming full reinvestment of DRP
* After electable portion dividend reinvested
13
Executive Summary
Financial Performance
Business ReviewBusiness Review
Country Review
Economic Update and Prospects
14
Revenue and PBT growth seen in all segments, led by CFS, GWB, Insurance and International Banking
3,154
3,709 1Q FY11 1Q FP11
+69.4%
+18 8%
+17.6%
million)
Global Wholesale Banking (GWB)
1,349 961
1,603
425472
1,178
+2.8%+77.3% +566.3% +22.6%+12.3%
+18.8%
Revenu
e (RM
240 420 45 187
425 297 193
Total Community Financial Services
Corporate Banking Global Markets Investment Banking
International Banking
Insurance, Takaful & AssetFinancial Services Banking Banking & Asset
Management
+57.0%+25.3%
M m
illion)
Global Wholesale Banking (GWB)
1,404
542
1,760
816 408 454
+50.6%
+139.9% +10.4% +543.7% +56.4% +24.1%
before ta
x (RM
542 164
370 7
290 79
394 408
47
454 98
Total Community Financial Services
Corporate Banking Global Markets Investment Banking
International Banking
Insurance, Takaful & Asset
Profit
15
Financial Services Banking Banking & Asset Management
Note: Head Office & Others: Revenue and PBT : ‐RM47.9m (1QFY11) vs. –RM457.3m (1QFP11)* Includes overseas’ GWB # Includes Kim Eng
Revenue Growth Contribution
N t Fi i I (i l di I l i B ki I )
1,114 1,218
Net Financing Income (including Islamic Banking Income)
+9.3%
+14.4%
Global Wholesale Banking (GWB) +47.6%1QFY11 1QFP11
187 159
658
286 162
752 +53.4% +2.1%
%
+1,702.9% ‐37.9%
187 159 4 21
162 67 13
Community Financial Services
Corporate Banking Global Market Investment Banking International Banking Insurance, Takaful & Asset Management
Non‐Interest Income
426
Non‐Interest Income
+63.3%+40.5%
7 8%
Global Wholesale Banking (GWB) +90.9%
235
53
262
41
303
167
384
138
310 230
426
180
+161.7% +18.5% +463.3% +7.8%
Community Financial Services
Corporate Banking Global Market Investment Banking International Banking Insurance, Takaful & Asset Management*
■ Net interest income rose 13.1% YoY driven by Corporate Banking growth at 53.4% while International grew by 14.4%.
16
■ Non‐interest income grew by 26.7% due strong growth across the board.
*Insurance, Takaful & Asset Management includes net income from insurance business
Revenue and PBT by geography
Revenue Profit Before Tax1QFP11
International: International:23%
Gross loans*
International:36%
(Jun 11 – Sep 11)
22%
8%6%
14%
6% 3%
RM3 71b RM1.76b
36% 23%
RM273.7b
36%
15%4%
64%
77%
RM3.71b64%
18%
68%12%16%4%Malaysia Singapore Indonesia Others
1QFY11(Jun 10 – Sep 10)
19%
8%5%0%0%0%0%
15%
RM3 15b RM1 40b RM216.4b
13%
2%7%
10%
17%4%
68%
International: International:
RM3.15b RM1.40b RM216.4b
International:
78%70%
10%
17
30% 22% 32%
*figures exclude unwinding of interest
Strong growth despite intense competition Asset quality continued to improve
Community Financial Services: Mortgage grew 17.6% with strong growth in approvals
Strong growth despite intense competition Asset quality continued to improve
+17.6% annualised(Industry: 14%) 5.0%
4 5%
35 0
4.3 5.0 5.3
40.338.635.2
4.5%3.9%
3.3%2.9%
30.9 33.6 35.0
Sep 10 Jun 11 Sep 11Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
Housing loans Shophouse loans
Market share stabilised Strong Growth in Mortgage Approval
Gross NPL / Impaired loan ratio ‐Mortgage
+52.4% annualised
13.0%
13.0%13.0%
16.5 17.719.6
22.925.9
annualised
12.9% 12.9%
Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
18
Total Mortgage Market shareApproval (in RM billion)
Community Financial Services: Hire Purchase improved in loans growth and market share
Hire purchase grew 9 4% in Sep 11 Asset quality remained stable withHire purchase grew 9.4% in Sep 11
+9.4% annualised
Asset quality remained stable with stable market share
25 5 26 118.7% 18.8% 18.8% 18.5%
19.0%
2.0%
2.5%
22.8 25.5 26.1
0.7% 0.7% 0.7%0 5% 0.6%
17.7%18.3%
17.5%
18.0%
0.5%
1.0%
1.5%
Sep 10 Jun 11 Sep 11
Hire Purchase
0.5%17.0%0.0%
Sep 10 Dec 10 Mar 11 Jun 11 Aug 11
Gross NPL / Impaired loan ratio
Transport Vehicle Market share
Non‐national cars form 65% of total Hire Purchase loans New cars form 86% of total Hire Purchase loans
86%New cars65%Non‐national cars
14%Used cars35%National cars
19
0% 20% 40% 60% 80% 100%0% 10% 20% 30% 40% 50% 60% 70%
Community Financial Services: Cards continued to grow above market growth
Cards Market Share Cards performance outperforming industryCards Market Share Cards performance outperforming industry
Sep 11 Sep 10
Cardbase 17.7% 16.4%YoY Maybank Industry*
Cardbase 0.4% ‐6.8%Billings 23.8% 22.6%
Receivables 15.0% 14.1%
Merchant Sales 30 4% 29 3%
Cardbase 0.4% 6.8%Billings 22.5% 16.5%Receivables 17.1% 9.6%Merchant Sales 19.7% 15.4%
• Card base excludes Debit cards• Merchant and Billings consist of transactions done through
Credit, Charge and Debit cards
• Industry figures for cards includes commercial banks and non‐FI players
Merchant Sales 30.4% 29.3% Merchant Sales 19.7% 15.4%
Cards receivables Card base (‘000)+9.2% annualised ‐0.0%
1,467 1,474 1,473
4.18
4.784.89
S 10 J 11 S 11S 10 J 11 S 11
20
Sep 10 Jun 11 Sep 11Sep 10 Jun 11 Sep 11
Business Banking and SME: Deposits grew at 59.2% annualised
Loans declined marginally at 1 6% annualised Strong deposits growth at 59 2% annualised
+59.2% annualised
‐1.6% annualised
Loans declined marginally at 1.6% annualised Strong deposits growth at 59.2% annualised
64 770.2
24.2
25.1 25.124.7 24.6
M billion
M billion
58.964.7
41.247.3
Sep 10 Dec 10 Mar 11 Jun 11* Sep 11*
RMRM
Sep 10 Dec 10 Mar 11 Jun 11* Sep 11*
Business Banking and SME NPL remained stableSME loans market share recovering(based on Bank Negara definition*) Post FRS139Pre‐FRS139
*Figures are based on new market segmentation effective post‐June'11 onwards. *Figures are based on new market segmentation effective post‐June'11 onwards.
15.8%
14.2%
15.0%
14 9%
15.5%16.5%
17.0%17.4%
11.5% 11.4% 10.3%
17.1% 16.2% 14.9%12.9% 13.0%
14.2% 14.9%
D 09 M 10 J 10 S 10 D 10 M 11 J 11 A 11 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
21
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Aug 11 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
*SME includes loans under GWB (Corporate)
Global Wholesale Banking: Loans growth driven by term loans
l l li d hTotal GWB loans: annualised growth Strong position in terms of Trade Finance Market Share
25.1%
12.5
11.6Trade Finance
Sep 11
‐27.5%
22.5% 22.6%23.3%
24.5%25.6%
18.1
18.5Short TermRevolvingCredit
& O d ft
Jun 11
+7.8% Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
billion
27.7
& Overdraft
Corporate banking: Asset Quality remained stable
Post FRS139
RM b
26.8Term loans +14.3%
Post FRS139Pre‐FRS139
4.2% 3.9% 3.4% 3.4% 3.5%
0.0 20.0 40.0
Total GWB loans grew 3.2% to RM57.8 billion as at 30 Sep 2011.
1.3% 1.2% 1.5%
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q FP11
22
Note: GWB loans for June 11 are based on revised figures. Gross NPL / Impaired Loan Ratio
Global Markets: Revenue growth supported by non interest income
Growth in Revenue Credit Rating for Private Debt Securities in Malaysia+12.3%
Growth in Revenue Credit Rating for Private Debt Securities in Malaysia
420.4472.1
158.8 162.2
261.6 310.0 +18.5%
+2.1%RM m
illion
AAA, 35.7%A and below, 35.4%
AAA
‐AA to AA
A and below
1QFY11 1QFP11
Net interest income Non interest income
2.1%
‐AA to AA, 28.9%
10 4%
Group Securities Portfolio grew 32.2% annualised to RM65.9 billion
PBT grew 10.4% attributed to 12.3% growth in revenue and absence of impairment losses on securities
6.2
28.6
5.4
PDS / Corporate B d
Others
Sep 11+39.7%
‐52.4%+10.4%
on
370
408
28.8
26.0
32.0Government Securities
Bonds Sep 11
Jun 11
+43.5%
+39.7%
RM m
illio
23
0.0 10.0 20.0 30.0 40.01QFY11 1QFP11
Fee based income continued strong growth at 85.7%
Fee based Income rose 85 7% YoY 1Q FP11 Fee based Income SegmentationFee based Income rose 85.7% YoY 1Q FP11 Fee‐based Income Segmentation
228 0
86.2
FY11
1Q12Underwriting/Placement
8%
Agency/Guarantee
17%
98.2
173.3
228.0
FY09
FY10
FY11Miscellaneous
1%
Arrangers'
97.9
198.3
0 0 50 0 100 0 150 0 200 0 250 0
FY07
FY08 Brokerage34%
g18%
Corporate d i
RM million
Industry Position & Market Shares Improved
M b k IB ( ith t Ki E )Industry Rank Industry Rank Total Value
D l /I M k t Sh
0.0 50.0 100.0 150.0 200.0 250.0 advisory14%
ombe
rg
Maybank IB (without Kim Eng)y
FY2011y
1Q FP11 (billion) Deals/Issues Market Share
M&A 3 1 USD 5.0 14 39.2%
Equity & Rights Offerings 2 1 USD 0.73 2 9.6%
Source: B
loo
Debt Markets ‐Malaysia Domestic Bonds 2 1 RM 4.9 13 26.5%
Debt Markets ‐Malaysian Ringgit Islamic Bonds
1 3 RM 1.8 10 21.8%
E it B k 3 7 RM 13 4 5 7%
24
Equity Brokerage 3 7 RM 13.4 n.a. 5.7%
Investment Banking: Recent Notable Deals
Equity Capital Market
July 2011RM392.3 mil
July 2011RM2,662.0 milB i A d
July 2011RM74.4 mil
Sole Adviser
Bumi Armada
Joint Principal Adviser Sole Adviser, Underwriter and
Bookrunner
IPO
Joint Principal AdviserJoint Global Co-ordinator
Joint BookrunnerJoint Managing Underwriter
IPO
Sole Placement Agent
Private Placement
Debt Capital Market
Global Trust Certificates (Wakala Global Sukuk)
USD2,000,000,000
WAKALA GLOBAL SUKUK BERHAD
Dim Sum Bonds
Joint Bookrunner
RMB1,380,000,000
GENTING HONG KONG LIMITED
Medium Term Notes Programme
Joint Principal Adviser/Joint Lead
RM5,000,000,000,000
YTL POWER INTERNATIONAL BHD
Ringgit Malaysia Subordinated Notes Programme
RM3,000,000,000
MALAYAN BANKING BHD
Guaranteed Islamic Medium Term Notes Programme
RM2,000,000,000
SYARIKAT PRASARANA NEGARA BERHAD
Joint Malaysian Adviser, Joint Lead Manager, Joint Bookrunner
June 2011
Joint Bookrunner
June 2011
Arranger/Joint Lead Manager
August 2011
Joint Lead Arranger
July 2011
Joint Lead Arranger / Joint Lead Manager / Joint Bookrunner
August2011
25
Within Group Islamic Banking business, Maybank Islamic sustainedstrong financing growth of 24%
Maybank Islamic financing (24% annualised)l i ki d **
+13% +31% +17%
Maybank Islamic financing (24% annualised)Total Gross Financing = RM50.4 billion as at Sep 2011
Group Islamic Banking Income and PBT**
RM million 1Q FP11 1Q FY11YoY
Growth
16.3
15.8
13.9
Fund based income 438.5 294.2 49%
Fee based income 77.8 44.0 77%
Total income 516 3 338 2 53%
7.9
11.2
.3
10.7 0% +130%+0% +72% ‐19%‐28%
Total income 516.3 338.2 53%
Allowance for losses on financing
(30.0) (4.1) 633%
Profit before tax and zakat 292.3 195.3 50%
7
4.4
4.3
4.2
7 .
3.3 3.6 4.
4
6.6
4.8
.2
3.9
3.3 Maybank Islamic: Improving key ratios
0.3 0.8 1.1
0.3 0.9 1.1
0.2 0.
9 1.1
2
AITAB Mortgage Financing
Term Financing
Cards Cashline‐i (CFS)
Cashline‐i (GWB)
STRC‐i Term Financing
Trade Financing
Sep 11 Jun 11 Sep 10
Financing to Deposit Ratio 96.6% 87.8% 96.6%
Islamic Financing to Financing Financing (CFS)
(CFS) (GWB) Financing (GWB)
Financing
Sep 11 Jun 11 Sep 10
Islamic Financing to Total Domestic Loans
28.2% 27.4% 24.5%
Net Impaired Financing Ratio 1.18% 1.25% 1.93%
26
Consumer: +16% Business: +56%
**Islamic Banking (includes Maybank Islamic and the Group’s other Islamic operations)
Etiqa: No. 1 Position in Life/Family (new business) and General Business
Overall Loss Ratio Lower Than Industry Combined Gross 15%
Industry
Credit
Regular Premium
Single Premium
Overall Gross Premium 58.2% (Etiqa) vs. 59.0% (Industry)Premium
+9%
+15%
14%
59.0%
27.1%‐65%
19.8%
33.4%
29.5%Fire1QFP11
Fire
Total Life
Group
Credit
+9%
+198%
‐14%
6%75.6%
29.9%-5.4%MAT
71.6%75.3%
72.8% 74.7%Motor
20.0%1QFP11
1QFY11
Misc
MAT
Motor +29%
+130% 41.3%‐6%
38.2% 35.8%32.4%
32.4%Misc
-7.0%3.8% 13.7%
‐ 500.0 1,000.0 1,500.0
Total General
Total Assets (RM billion) New Products Launched
+32% Dec10 Mar11 Jun11 Sept11Industry Source: Loss ratio for Malaysia’s Conventional business only with rolling 12 Months (Jul10 ‐Jun11). Company Source: Loss ratio for Malaysia’s Insurance and Takaful General business with rolling 12Months (Oct10 ‐Sept11)
22.8 22.7
Total Assets (RM billion)
‐2% annualised
New Products Launched
■ 1Malaysia Micro Protection Plan An affordable insurance protection plan benefiting the small business owners. L h d 8 S t 2011
+6 YoY
21.5
S 10 J 11 S 11
Launched on 8 Sept 2011.
■ Fortune8A Single Premium close‐end investment‐linked plan offering a combination of insurance and
h d
27
Sep 10 Jun 11 Sep 11 investment. Launched on 1 Nov 2011.
Executive Summary
Financial Performance
Business ReviewBusiness Review
Country Review
Economic Update and Prospects
28
Singapore: PBT surged 43% boosted by higher fee income and lower provision
3 31 01.1
Others (Consumer)
Car Loans
Diversified Loan PortfolioRevenue and PBT rose 33% and 43% YoY respectively
Consumer
22.0
17 8
SGD million 1Q FP11 1Q FY11 YoY
Growth 24.2
41% YoYannualised
2 72.9
1 92.6
3.0 4.0
5.0 5.3
3.3
3.3 3.3
0.7
1.0
Housing Loans
Others (Corporate)
GD billion
Consumer
C t
17.840%
Net fund based income 119.0 113.7 4.7%
Non interest income 90.8 44.5 104.2%
Total income 209.9 158.2 32.7%
3.7 4.6 5.5 2.1
2.8 3.1 2.0
2.7 1.9
Sep 10 Jun 11 Sep 11
Non‐bank Financial Institution
General Commerce
Building & Construction
SG Corporate
60% Provision (1.3) (3.6) ‐64.9%
Profit before tax 120.5 84.1 43.3%
0 93%
Sep 10 Jun 11 Sep 11
Maybank Singapore loans growth outpaced industry‘sAsset Quality remains robust
0.93%0.77% 0.75%
0.63% 0.58% 0.65% 0.58%0.46% 0.47%
18.4%23.4%
25.4%
32.7%
16.2%
30.6%
11.4% 14.8%19.4%
0.10% 0.09% 0.07% 0.09% 0.07%0.25%
0.23%0.14%
0.18%
Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
5.0%8.6%
‐1.4%Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Sep 11
29
Gross NPL Net NPL Maybank Singapore Growth Industry Growth
BII: Profit before tax grew 251.2% YoY
Income Statement
Rp Billion Jul 11-Sep 11 Contribution
Jul 10-Sep 10 Contribution
YoY% Change
Interest income 2,047 1,688 21.3%
Interest expense (1,041) (739) 40.9%
Net interest income 1,006 949 6.0%
Non-interest income 562 512 9.8%
Gross Operating income 1,568 1,461 7.3%
Operating expenses (excluding prov.) (1,055) (984) 7.2%
Operating income before provision 513 477 7 5%Operating income before provision 513 477 7.5%
Provisions (218) (393) -44.5%
Profit before taxation and zakat 295 84 251.2%
Note:• Based on income statement consolidated into Group accounts.
• PBT is inclusive of amortisation of CDI of IDR32.5 billion (Jul 11‐Sep 11)
30
BII: Revenue grew 16.0% on the back of 26.6% consolidated loans growth
Net Interest MarginGroup Revenue and PBT (Rp billion) for 9M11 (as reported in BII)
4,063 4,712
Net Interest Margin Group Revenue and PBT (Rp billion) for 9M11 (as reported in BII)
+16.0%
5.78%5.89%
5 67%
696 790
+13.6%
5.67%
5.43% 5.28%
9M10 9M11
Revenue PBT
Sep’10 : before adoption SFAS No.50/55; Sep’11 after Adoption SFAS No.50/55
Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
Sep’10 : before adoption SFAS No.50/55; Sep’11 after Adoption SFAS No.50/55
85.9% 85.4% 85.8%19 0 19.9
21.3 22.2
Loan‐to‐Deposit Ratio (Bank only)Loan composition (Rp trillion)
22%
Ann. growth
83.2% 83.0%
12.0 12.2 13.3 14.1 14.8
4 6
17.6 19.0
18.617.7 18.8 19.1 20.111%
28%
Sep 10 Dec 10 Mar 11 Jun 11 Sep 11
3.6 4.2 4.6 4.5
0.40.40.40.40.5
3.0
Sep-10 Dec-10 Mar-11 Jun-11 Sep-11
C t SMEC C S i h S b idi i
33%
0%
31
Corporate SMEC Consumer Syariah Subsidiaries
Modified LDR (Bank Only) as of Sep’11 : 82.29%
BII : Branches and touch points expansion on track
A Q liBranches and ATM Asset QualityBranches and ATM
893952 1,009 1,017
1,088 3.5%3.1%
255 255 260 274 295 327 337 344 346
748 787 806 844 893
2.0% 1.7%1.4% 1 2% 1 4%
2.6% 2.5% 2.5%
Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11
1.4% 1.2% 1.4%
Sep/10 Dec/10 Mar/11 Jun/11 Sep/11
Net NPL Gross NPL
Capital Adequacy : consolidated(credit, operational & market risk)
Cost to Income RatioSep’10 : before adoption SFAS No.50/55; Sep’11 after Adoption SFAS No.50/55
13.16% 13.06%
63.9%66.4% 12.50%
11.68%
12.33%
Sep-10 Sep-11
68%
32
p p
Cost to Income Ratio (Bank Only) as of : Sep’10 : 60.4%, Sep’11: 61.4%, Sep-10 Dec-10 Mar-11 Jun-11 Sep-11
R d PBT (R billi )
WOM : 7.3% growth in revenue, whilst PBT impacted by provisions
Unit Financing
1,116 1,198
Revenue and PBT (Rp billion) Unit Financing(In 000 unit)+7.3%
486
374424
178‐94.9%
368
118
374
178
9
9M10 9M11
R PBT
50
New Used Total
Revenue PBT
Asset Quality Financing Amount(In IDR bn)
Sep 10 Sep 11
3.41%
1 85%2.17%
2.43%2.69%
%
1.99%
Gross NPL
Net NPL
4,839 5,243
3,072 3,309
1.85%
0.73% 1.09% 0.94%1.09% 403 238
New Used Total
33
3Q10 4Q10 1Q11 2Q11 3Q11New Used Total
Sep 10 Sep 11
MCB Bank: Financial Highlights
YTD PBT i d i di
39 2
Revenue and PBTYTD PBT increased 24.4% against corresponding period mainly contributed by 22% increase in net interest income on the back of higher KIBOR, while non interest income rose 31% mainly due to h i f i i f
+23.4%
31.7
39.2
11.0 12.4 19.5
24.3
8 0
the increase from investment income, fee, commission and brokerage income and income from dealing in foreign currencies.
Loans declined slightly by 5.1% but deposits grew
+13.1%
+12.0%
+24.4%
PKR
Billi
ons
7.1 8.0
9M10 9M11 3Q10 3Q11
strongly, with low-cost CASA constitutes of 81% of total customer deposit portfolio.
NPL ratio increased to 10%, due largely to the increase of NPL by 8% and decline in loans
Revenue PBT
Loans and Deposits
ygrowth.
496 2
+15.0%Key Ratios
Return on assets 4 70% 4 80%
9M11 9M10
254.6 241.6
431.3
496.2
R B
illio
nsLoans ‐ 5.1%
Return on assets 4.70% 4.80%
Return on equity 25.78% 24.19%
Cost‐to‐income ratio 31.45% 32.70%
Loans to deposit ratio 53 12% 58 47%
PK
R DepositsLoans to deposit ratio 53.12% 58.47%
NPL Ratio 10.04% 9.68%
Net Interest Margin 7.01% 6.86%
34
As at Dec '10 As at Sept '11
An Binh Bank: Financial Highlights
1,257
Revenue and PBTPBT declined due largely to the higher operating expenses and the increase in loan loss provisioning, on the back of higher NPL. This if offset by the increase in revenue by 27 6%
+27.6%
985
355 441
546
329192
offset by the increase in revenue by 27.6%, contributed by the increase of net interest income.
Loans declined due partly to the compliance to t b th t l b k i l di
‐39.7%
+24.4%
‐88.6%VND Billion
22
9M10 9M11 3Q10 3Q11
Revenue PBT
measures set by the central bank, including a cap to annual loans growth and reduction of exposures to non-productive sectors.
NPL ratio increased from 1.62% to 5.79% on the
Loans and Depositsback of increase in NPL and decrease in loans portfolio.
Key Ratios 9M109M11‐0.6%
Key Ratios
Return on assets 1.09% 2.01%
Return on equity 7.17% 13.24%
Cost‐to‐income ratio 45.05% 37.01%
9M109M11
19,87717,777
25,947 25,787Billion
L
‐10.6%
Cost to income ratio 45.05% 37.01%
Loans to deposit ratio 68.94% 75.21%
NPL Ratio 5.79% 1.62%
Net Interest Margin 5.04% 4.03%
VND B Loans
Deposits
35
e e es a g 5 0 % 03%
As at Dec '10 As at Sept '11
Executive Summary
Financial Performance
Business ReviewBusiness Review
Country Review
Economic Update and Prospects
36
Malaysia: Sustained growth for 2011
Inflation expected to rise to 3.1% in 2011 & 2.6% in 2012Growth to be sustained at 4.5% in 2011 & 3.5% ‐ 4.0% in 2012
10
15
20
25
10
12
14 CPI and components (% YoY)
Inflation expected to rise to 3.1% in 2011 & 2.6% in 2012 (2010: 1.7%)
Growth to be sustained at 4.5% in 2011 & 3.5% 4.0% in 2012 (2010: 7.2%)
Quarterly GDP and annual growth rateSeptember CPI: +3.4% YoY
Q2 GDP: +4% YoY
(10)
(5)
0
5
10
4
6
8
10
Food & Non‐Alcoholic Beverages
Transport (RHS)
(25)
(20)
(15)
0
2
ul‐02
ec‐02
ay‐03
ct‐03
ar‐04
ug‐04
an‐05
un‐05
ov‐05
pr‐06
ep‐06
eb‐07
ul‐07
ec‐07
ay‐08
ct‐08
ar‐09
ug‐09
an‐10
un‐10
ov‐10
pr‐11
ep‐11
Utilities, Housing & Other Fuels
4.5
Ju De
Ma Oc
Ma
Au Ja Ju No Ap
Se Fe Ju De
Ma Oc
Ma
Au Ja Ju No Ap
Se
Ringgit/USD: RM3.20 by end 2011
Ringgit Malaysia per USD 25bp hikes in OPR in Mar, May, July 10 and
OPR to remain unchanged at 3% until end of 2012RM3.11 per USD
as at Nov 9
2.5
3.0
3.5
4.0 May 112.903.003.103.203.303.40
0.5
1.0
1.5
2.0
07 07 07 08 08 08 09 09 09 10 10 10 11 11 11
OPR SRR
3.503.603.703.803.90
05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11
37
Jan‐0
May‐0
Sep‐0
Jan‐0
May‐0
Sep‐0
Jan‐0
May‐0
Sep‐0
Jan‐1
May‐1
Sep‐1
Jan‐1
May‐1
Sep‐1
Sep
-0D
ec-0
Mar
-0Ju
n-0
Sep
-0D
ec-0
Mar
-0Ju
n-0
Sep
-0D
ec-0
Mar
-0Ju
n-0
Sep
-0D
ec-0
Mar
-0Ju
n-0
Sep
-0D
ec-0
Mar
-Ju
n-S
ep-
Dec
-M
ar-
Jun-
Sep
-
Malaysia: Banking Sector
Total Loans grew 13.8% YoY for September 2011 Total Deposits grew 12.6% YoY for September 2011Total Loans grew 13.8% YoY for September 2011
n
Total Deposits grew 12.6% YoY for September 2011
n14%
16%
18%
900
950
1,000
Total Loans Total Loans YoY GrowthHousehold YoY Growth Business YoY Growth
20%
25%
1100
1150
1200
1250 Total Deposits Total Deposits YoY Growth
RM billion
RM billio
8%
10%
12%
14%
700
750
800
850
900
10%
15%
900
950
1000
1050
1100
2%
4%
6%
550
600
650
n‐07
y‐07
p‐07
n‐08
y‐08
p‐08
n‐09
y‐09
p‐09
n‐10
y‐10
p‐10
n‐11
y‐11
p‐11
0%
5%
750
800
850
n‐07
y‐07
p‐07
n‐08
y‐08
p‐08
n‐09
y‐09
p‐09
n‐10
y‐10
p‐10
n‐11
y‐11
p‐11
Capital Adequacy remains strong Gross NPL RM27.2b, Net NPL ratio: 1.96%
Jan
May Sep
Jan
May Sep
Jan
May Sep
Jan
May Sep
Jan
May Sep
Jan
May Sep
Jan
May Sep
Jan
May Sep
Jan
May Sep
Jan
May Sep
2.5%35 Gross NPL ‐ 3 Months (LHS) Net NPL (RHS)15
16
%
RM billion
14.6%
12.5%
2.0%
2.3%
15
20
25
30
10
11
12
13
14R
1.5%
1.8%
0
5
10
10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 11
7
8
9
10
07 07 07 08 08 08 09 09 09 10 10 10 11 11 11
Risk Weighted Capital RatioCore Capital Ratio
38
Jun‐1
Jul‐1
Aug
‐1
Sep‐1
Oct‐1
Nov
‐1
Dec‐1
Jan‐1
Feb‐1
Mar‐1
Apr‐1
May‐1
Jun‐1
Jul‐1
Aug
‐1
Sep‐1
Jan‐
May‐
Sep‐
Jan‐
May‐
Sep‐
Jan‐
May‐
Sep‐
Jan‐
May‐
Sep‐
Jan‐
May‐
Sep‐
Singapore: Economic growth expected to moderate in 2012
R l GDP h f d b fGDP growth forecast: 3% to 5% for 2011 and below 3% to 5% for2012, with future economic growth expected to be between 3-4% over the next decade.
Inflation rate forecast at 5.0% for 2011, 2.5% to 3.5% in 2012. 15
20
7580
Real GDP growth for 2011 expected to be 3-5% for 2011 (2010: 14.5% )
DBU loan growth accelerated to 29.7% y-o-y, as at August 2011,led by stronger lending to General Commerce sector. However,full-year loan growth could moderate to 11% as uncertainties inthe private property market weigh on mortgage demand. (5)
0
5
10
15
5560657075
Net interest margin (NIM) could dip marginally to 1.7% – 2.0%in 2011, from 1.8%–2.1% in 2010. The spread could howevercould see slight increase subsequently in 2012-13, as banks inSingapore charge higher risk/liquidity premiums amid a more
(10)
(5)
5055
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Real GDP (S$B) % YoY Growth (RHS)uncertain economic climate and tightening in deposit funding.
Loan Growth expected to moderate to 11% in 20113-month SIBOR to range between 0.4%-0.6% in 2011
Real GDP (S$B) % YoY Growth (RHS)
39
Indonesia: Continued growth of 6.4% in 2012
Real GDP Growth: growing faster ■ GDP growth is expected to reach 6.5% in 2011 and 6.4% in
2012, higher than the growth of 6.1% in 2010■ Inflation rate will likely to stay soft at 4.56% due to easing
commodity prices this year. BI has recently cut its BI rate
g g
Sector Contribution (% of GDP Growth)
6 0
8.0
by 50bps to 6% on the concern of global economic slowdown next year. Inflation is expected to be at 5.80%.
■ USD/IDR will likely to hover around 9,000 toward end of 2011 amid uncertain global condition. Hence, some 2.0
4.0
6.0
volatility might appear as well. For 2012, expected USD/IDR is around 8,800.
■ Loan growth is expected to reach 22.0% in 2011 and 22.6% in 2012 with the investment segment driving
th
-2.0
-Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010
Agriculture Mining Manufacturing ElectricityConst Trade TransComm Financegrowth.
■ NPL is expected to reach 3.80% for 2011 and 3.90% for 2012.
Bank’s loan growth: trending upwards Bank Indonesia cut BI rate to 6%
Const Trade TransComm FinanceServices GDP
( %)
23.37%
20.00%
25.00%
30.00%
Loan Deposit
(y-y %) g g p
8 0
10.0
12.0
14.0Inflation y-y BI rate
(y-y %)
19.07%
5.00%
10.00%
15.00%
2.0
4.0
6.0
8.0
40
0.00%
Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-110.0
Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11
Prospects
l k f h l b l h ll l h h l d dEconomic outlook for the global economy remains challenging. Although external demand could weaken in ASEAN, domestic demand should be generally resilient and continue to support credit growth.
L th i M l i i t d t b i l d i b th ll t f ETP j t dLoans growth in Malaysia is expected to be mainly driven by the rollout of ETP projects and domestic consumption. Singapore’s credit demand is expected to moderate with growth remaining broad based but the external sector could be vulnerable to slower global economic growth. In Indonesia, the strong loans growth is expected to be sustained due to robust g , g g pdomestic demand.
The Group will continue to be selective in pursuing loans growth and will focus on pricing and asset quality to ensure sustained profitability.q y p y
�Leveraging on the regional investment banking platform of Kim Eng and the expertise of Maybank IB will further boost the Group's fee income base although brokerage income contribution may see weaknesses as a result of volatile market condition.
The Group’s healthy capitalisation will be maintained through improved funding initiatives and capital conservation through the dividend reinvestment plan while monitoring for the forthcoming Basel III capital requirements to be introduced by Bank Negara.
Barring any unforeseen circumstances, the Group expects its financial performance for the financial period ending 31 December 2011 to be satisfactory and on track to achieve its target Return on Equity of 16.0% (FY 30 June 2011: 15.2%) and growth in financial assets of 12% (FY 30
)
41
June 2011: 22.6%).
Thank You
Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain allDisclaimer. This presentation has been prepared by Malayan Banking Berhad (the Company ) for information purposes only and does not purport to contain allthe information that may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or onbehalf 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 partof it form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.
Th C d t t li bilit h t f l h i i f f thi t ti th i t t th i i i i
Khairussaleh RamliGroup Chief Financial Officer
MALAYAN BANKING BERHAD14th Floor Menara Maybank
Narita NazireeHead, Group Strategy Management
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 inconnection therewith.
Raja Indra PutraHead, Investor RelationsGroup Chief Financial Officer
Contact: (6)03‐2074 4288 Email: [email protected]
14th Floor, Menara Maybank100, Jalan Tun Perak50050 Kuala Lumpur, MalaysiaTel : (6)03‐2070 8833
wwwmaybank com
Head, Group Strategy ManagementContact: (6)03‐2074 8101Email: [email protected]
Head, Investor RelationsContact: (6)03‐2074 8582Email: [email protected]
42
www.maybank.com