investor presentation · 2018-02-28 · investor presentation financial results 4q fy2017 and full...

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Humanising Financial Services

Investor Presentation

Financial Results4Q FY2017 and Full Year FY2017 ended 31 December 2017

28 February 2018

1

Table of Contents

Executive Summary 2

Results Overview 5

Prospects & Outlook 19

Appendix:

1. Financial Performance 22

2. Community Financial Services 37

3. Global Banking 41

4. Maybank Singapore 45

5. Maybank Indonesia 48

6. Other segments 52

7. Affiliates 57

Financial Results: 4Q FY2017 and Full Year FY2017 ended 31 December 2017

2

Record net profit

of RM7.52 billion,

up 11.5% YoY

Maybank Group Full Year FY2017 OverviewNew net income high of RM23.27 billion with record net profit of RM7.52 billion

• Higher net income of 4.9% YoY as net fund based income grew 10.3% YoY on NIM

expansion of 9 bps to 2.36%

• Better NIM on improved Group CASA normalised growth of 7.2% YoY (Reported: 5.4%

YoY) and securities portfolio yield improvement.

• Operating profit growth of 14.0% YoY to RM9.88 billion supported by lower net

impairment losses of 32.7% YoY

• Return on Equity of 10.9%, within Group guidance of 10%-11%

• Normalised Group loan and deposit growth of 4.0% YoY respectively (Loan growth

reported: 1.7%, Deposit growth reported: 1.8%) supported by loan and CASA growth in

home markets. Growth guidance for Group loan and deposit was ~3% respectively

• Total Group RWA reduced 1.2% as credit RWA decreased 2.7% (vs loan growth of 1.7%)

1

• Healthy and stable liquidity risk indicators with Group LCR at 133.1%, Group LDR at

93.8%, Group LTF at 86.2% and Group LTFE at 75.7%

• Total capital and CET1 ratios at 18.80%* and 14.19%* respectively as at Dec 2017

• Attractive dividend yield of 5.6% with total dividend per share of 55 sen

Strong Liquidity

and Capital

Positions

3

Moderating asset

quality indicators

2 • Stable Group GIL ratio of 2.34% as at end Dec 2017 (Dec 2016: 2.28%), as GIL volume

growth formation slowed to 4.5% YoY (vs 29.2% YoY in 2016)

• Net credit charge off of 40 bps, as loan provisions reduced 30.8% YoY to RM1.96 billion

• Strong loan loss coverage (including regulatory reserve) of 95.3% (Dec 2016: 81.6%)

Note: *After proposed dividend and assumption of 85% reinvestment rate. Fully loaded Group CET1 capital ratio is at 14.01%.

3

• Group Wealth Management revenue grew 19.2% YoY, with assets under management (AUM) of RM278.2 billion

• Regional SME grew 8.3% YoY on its topline• Maybank remained No.1 in the Malaysia Net Promoter Score customer index

Maybank2020 - Strategic Objectives: Key FY2017 Achievements

The Leading

ASEAN Wholesale

Bank Linking

Asia

2 • Strengthened our lead as an ASEAN wholesale and investment bank, achieving: • 1st in Bloomberg’s Global Sukuk and ASEAN Loan Syndication league tables• 2nd in Bloomberg’s ASEAN Local Currency Bonds league table

• Malaysian market share leader in corporate lending, trade finance and corporate deposits• MKE was awarded Best Investment Bank in Malaysia by Global Finance and Euromoney

The Leading

ASEAN Insurer

3 • Recorded highest ever Profit Before Tax of RM1.0 billion in FY2017, up by 18.5% YoY• Maintained No.1 online insurance position with >70% market share• Improved motor claims approval TAT to under 30 minutes vs industry benchmark of 3 days• Regional business expansion with bancassurance business growth into the Philippines and

75% acquisition stake in Indonesia’s PT Asuransi Asoka Mas

The Global

Leader In Islamic

Finance

4 • No.1 Global Sukuk Lead Manager on Bloomberg’s Global Sukuk League Table• No.1 Lead Manager on Bloomberg’s Ringgit Malaysia Sukuk League Table• Joint lead arranger for one of the world’s largest green Sustainable & Responsible

Investment (SRI) Sukuk• Launched HouzKEY, the first rent-to-own scheme in Malaysia

Digital Bank of

Choice

5 • Awarded Best Digital Bank and Best Mobile App in Malaysia by World Finance Digital Banking Awards 2017, with over 4.6 million unique visitors monthly

• Launched new Maybank2u app in Malaysia with improved user-friendliness, biometric features (Face & Voice ID) as security authentication and Secure2u function

• Launched various first–to-market digital initiatives: Maybank QRPay, Alipay-enabled merchant terminals in Malaysia and Maybank2u Pay

The Top ASEAN

Community Bank

1

4

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


5

P&L Summary: FY2017Record net profit of RM7.52 billion on operating profit growth of 14.0% to RM9.88 billion

Note: Page 27 shows the quarterly trend of the P&L summary.

* From consolidated Group numbers, Insurance and Takaful accounts for 6.4% of net fund based income and 12.8% of net fee-based income

¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses

More

details on RM million FY2017 FY2016 YoY

s.24 Net fund based income * 16,627.7 15,074.4 10.3%

s.9/24/

29 Net fee based income * 6,640.7 7,098.8 (6.5%)

s.22/23 Net operating income 23,268.4 22,173.1 4.9%

s.10/30 Overhead expenses (11,357.1) (10,487.2) 8.3%

s.23 Pre-provisioning operating profit (PPOP) ¹ 11,911.3 11,686.0 1.9%

Net impairment losses (2,027.8) (3,015.0) (32.7)%

Operating profit 9,883.5 8,671.0 14.0%

s.22 Profit before taxation and zakat (PBT) 10,098.1 8,844.5 14.2%

Profit attributable to equity holders of the Bank (Net Profit) 7,520.5 6,743.0 11.5%

EPS - Basic (sen) 72.0 67.8 6.2%

6

2.43

2.31 2.31

2.27

2.36

FY2013 FY2014 FY2015 FY2016 FY2017

Net Fund Based Income: FY2017 (1/3)Strong net fund based income growth of 10.3% YoY supported by NIM improvement of 9 bps to 2.36%

Net Interest Margin (%)

5-Year Trend

7

20.7 22.1

18.0 18.5

Dec 16 Dec 17

Community Financial Services Global Banking

194.4 203.7

78.8 81.9

Dec 16 Dec 17

+2.6%

121.9 127.8

Dec 16 Dec 17

97.0 96.4

27.4 32.5

Dec 16 Dec 17

+18.6%

46.0 48.4

Dec 16 Dec 17

485.7 493.8

Dec 16 Dec 17

Net Fund Based Income: FY2017 (2/3)Loans growth across home markets supported by good CASA growth across the Group

272.0

38.9

124.7

RM

billion

SG

D b

illion

IDR

tri

llio

n

Gross Loans (YoY)

5.0% 4.3% 3.6% 1.7% (Reported)

RM

billion

Group Malaysia Singapore Indonesia

40.6

285.5 129.2

12.5 14.6

Dec 16 Dec 17

186.3 196.4

Dec 16 Dec 17

4.9%

RM

billion

RM

billion

SG

D b

illion

IDR

tri

llio

n

CASA (YoY)

+4.8%

5.4% (Reported) 16.6% 5.2%

+6.9%

(0.6)%

28.1% 31.6%40.5% 40.2%36.0% 37.3% 38.6% 39.8%CASA

Ratio:

Note:

• Industry loans growth for Malaysia is 4.1%, Singapore is 8.0% and Indonesia is 8.2%

• CASA ratio for Group and Malaysia includes investment accounts

• Refer to pages 31-33 for detailed information on loans and deposits growth by country and products.

4.0% (Normalised)

7.2% (Normalised)

+3.9%

8

459.4

485.7493.8

Dec 15 Dec 16 Dec 17

327.2 329.5320.7

11.312.9

14.4

34.937.2

40.1


Operational RWA

Market RWA

Credit RWA

Net Fund Based Income: FY2017 (3/3)Selective loan expansion managed in tandem with credit RWA

Group Gross Loans

RM

billion

Total Group RWA

+7.7%

RM

billion

+1.7%

+11.5%

(2.7)%

(1.2)%

379.6375.1

+5.7%

+6.6%

+14.4%

373.3

+0.7%

+1.7%

9

7,099 6,289

473

4,444

(4,108)

6,641 6,027

420

5,251

(5,057)

Total Other Operating Income Fee Income from IslamicOperations

Net Earned InsurancePremiums

Net Insurance Benefits& Claims Incurred, Net

Fee & CommissionExpenses and Life &

Takaful Fund Tax

FY2016

FY2017

RM

million

RM million FY2016 FY2017 YoY

Commission, service charges and fees 3,559 3,564 0.1%

Investment & Trading Income 1,363 1,057 (22.5)%

Unrealised gain/ (losses) on securities 70 143 >100%

Unrealised gain/ (losses) on derivatives (90) (125) 38.8%

Foreign Exchange Profit 620 559 (9.9)%

Other Income 767 830 8.3%

Net Fee Based Income: FY2017Lower net fee based income mainly from reduced investment and trading income

(6.5)% (4.2)% (11.4)% +18.2% +23.1%

10

Overheads: FY2017Overheads growth of 8.3% YoY; Group cost-to-income ratio of 48.7%, below threshold of 50%


Personnel Costs 6,128.0 5,638.9 8.7%

Establishment Costs 1,980.9 1,887.7 4.9%

Marketing Expenses 515.1 522.1 (1.3)%

Administration & General Expenses 2,733.1 2,438.5 12.1%

Total 11,357.1 10,487.2 8.3%

% FY2017 FY2016 YoY

Total Cost to Income ¹ 48.7 47.1 1.6%

Group JAW Position (3.4)%

Note: Page 30 shows the quarterly trend of overheads.

¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng

11

615.7 542.5

830.3

386.5 199.8

2,832.7

1,959.1

4QFY2016

1QFY2017

2QFY2017

3QFY2017

4QFY2017

FY2016 FY2017

Allowances for losses on loans

72.0%71.2%

70.1%

71.7% 71.5%*

Loan loss coverage

Allowance for losses on loans

Asset QualityLower YoY loan provisions of 30.8% for FY2017 on slower impaired loan formation growth

RM

million

Note:

*Loan loss coverage including Regulatory Reserve is 95.3%

11,055 11,658 12,158 12,155 11,550

Dec 16 Mar 17 Jun 17 Sep 17 Dec 17

RM

million

0.0% QoQ 4.3% QoQ

Slower YoY growth in Group GIL volume

from a year ago

(5.0)% QoQ 5.4% QoQ

8,55511,055 11,550


RM

million

4.5% YoY 29.2% YoY

12

Asset Quality for Group and Home MarketsStabilising QoQ asset quality trends for Group and home markets

Group GIL Ratio Composition

GIL Ratio Components Dec 2017 Sep 2017 Jun 2017 Mar 2017 Dec 2016

Non Performing Loans (NPL) 1.80% 1.97% 1.79% 1.77% 1.64%

Restructured & Rescheduled (R&R) 0.27% 0.32% 0.37% 0.33% 0.39%

Performing Loans Impaired Due to Judgmental/

Obligatory Triggers (IPL)0.27% 0.21% 0.37% 0.30% 0.25%

GIL Ratio 2.34% 2.50% 2.53% 2.40% 2.28%

2.06% 2.13%

2.12%2.06% 1.91%

1.30%1.68%

2.29% 2.31% 2.36%

4.36% 4.55% 4.42% 4.47%

3.56%


Malaysia Singapore Indonesia

GIL Ratio by Home Markets

13

Asset Quality by Line of BusinessBroadly stable QoQ asset quality trends across Malaysia and Singapore portfolios, with improvement in Indonesia

Mortgage Auto Finance Credit Cards

Retail SME Business Banking Corporate Banking

Consumer

Business

Note:

In Malaysia, industry GIL ratio for mortgage (purchase of residential property) is 1.0%, 1.0% for auto finance, and 1.2% for credit cards. In Singapore, industry GIL figure is only

available for mortgage, which was 0.4% as at December 2017.

In Indonesia, Business Banking includes Commercial, SME and Micro loans. Maybank Indonesia’s GIL ratios are mapped in accordance to its local regulatory reporting requirements

and does not include R&R.

0.57% 0.60% 0.60% 0.63% 0.61%

0.45%0.58% 0.60% 0.56% 0.56%

1.51% 1.76%2.22% 2.38% 2.14%


2.00% 2.06%

2.05% 2.02% 2.01%1.70%

2.09%2.39%

2.18%

2.27%

1.57%

1.87%

2.18%

2.44%

2.27%


0.51% 0.53% 0.53% 0.53% 0.50%

0.32% 0.34% 0.27% 0.23% 0.26%

1.32%1.23%

1.40% 1.44%

0.98%


0.72% 0.77% 0.80% 0.78% 0.77%

2.26% 2.08% 1.95% 1.86% 1.75%

2.35% 2.48% 2.67%2.37%

1.73%


11.92% 12.49% 12.50% 12.24% 12.05%

2.42% 2.66% 2.67% 2.80% 2.68%

1.77% 1.96% 1.93% 2.04% 2.23%


Malaysia Singapore Indonesia

10.51% 10.30%11.32% 11.02%

7.84%

1.85% 1.93% 1.97% 1.92% 1.58%

1.89% 2.62% 4.06% 4.07% 4.14%


14

42%

1%

40%

17%

Normal

Special Mention Account

Watchlist

GIL

30%

35%

7%

28%

Upstream

Supporting Upstream

Downstream

Supporting Downstream

85% comes

from

supporting

upstream

Commodities Exposure: 31 December 2017Maybank Group’s exposure to direct and indirect oil and gas borrowers as well as other commodities

Borrowers’ Status:

Segmental Exposure:

Direct & Indirect Oil & Gas:

Borrowers with O&G related exposure

Notes:

Supporting upstream includes services activities

incidental to crude oil and natural gas extraction

including surveying. This includes providers of

services/ activities related to O&G industry.

Oil & GasLoan

exposure

Maybank Group 3.54%

Malaysia 1.95%

Singapore 1.24%

Indonesia 0.18%

Others 0.17%

Group exposure of 3.54%

includes funded and non-

funded

Excluding non-funded,

exposure is 2.77%

Notes:

• Group exposure is for three home markets

Malaysia, Singapore and Indonesia, based on

Group gross loans as at end December 2017.

• Agriculture includes rubber, oil palm and

cocoa sectors

• Metals and mining includes coal, lignite,

peat, metal ores, tin, iron, steel and non-

ferrous metal sectors

AgricultureLoan

exposure

Maybank Group 1.74%

Malaysia 1.33%

Singapore 0.06%

Indonesia 0.35%

Metals & Mining

Maybank Group 1.22%

Malaysia 0.92%

Singapore 0.10%

Indonesia 0.19%

Other Sectors

15

151.9% 134.4% 145.6% 137.0% 133.1%

LCR

Borrowings, 5%

Capital Instruments,

3%

Customer Funding, 76%

FI Deposits, 6%

Equity, 11%

MYR, 32%

USD, 29%

JPY, 9%

IDR, 9%

SGD, 7%

HKD, 6%

Others, 8%

Liquidity Management: 31 December 2017 Maintained well-diversified funding sources and strong liquidity risk indicators

RM694.9

billionRM52.8

billion

Funding Breakdown

Note:

• Customer Funding comprises Deposits from Customers & Investment Accounts of Customers.

By maturity:

≤ 1 Year 29%

> 1 Year 71%

Borrowings and

Capital Instruments

by Currency

Note: 1) BNM’s minimum LCR requirement for 2017 is 80%

93.9%95.7%

93.8% 94.0% 93.8%

84.9%86.2% 85.5% 85.8% 86.2%

75.1% 75.9% 75.1% 75.4% 75.7%


LDR LTF LTFE

2) LTF is gross loans divided by (deposits + borrowings +

subdebt) while LTFE’s denominator is (deposits +

borrowings + subdebt + equity + capital securities)

Liquidity Risk Indicators

16

13.99% 14.77% 14.19%

15.66% 16.46% 15.88%

19.29% 19.38% 18.80%


Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

Group

Bank

Strong Capital Position: 31 December 2017Total capital and CET1 ratios (assuming 85% dividend reinvestment rate) at 18.80% and 14.19% respectively

Before proposed

dividend

After proposed

dividend,

assuming 85%

reinvestment rate2017 2018

Jan 2019

Onwards

Minimum Common Equity Tier

1 Capital4.5% 4.5% 4.5%

Minimum Tier 1 Capital 6.0% 6.0% 6.0%

Minimum Total Capital 8.0% 8.0% 8.0%

Capital Conservation Buffer

(Phase in)1.250% 1.875% 2.500%

Other Capital Buffers

D-SIB Buffer

Countercyclical Capital buffer

Regulatory Requirements

0% - 2.5%

Note: Based on 85% reinvestment rate under the DRP, the fully loaded CET1 Ratio would be at 14.01% (Group) and 13.29% (Bank) respectively.

15.88% 15.85% 15.02%

18.23% 17.95% 17.11%

19.43% 19.31% 18.48%


Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

To be determined

17

76.5%74.9%

79.9%

74.7%71.9%

78.5%76.3%

78.1% 78.5%

11

28 3222.5 24

2420 23

44

32

36

33

3133 30

3232

FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17

Final

Interim

85.7%*

27%

13% 11% 12%

20%25%

19%

27%

42%

Gross Dividend (sen), Payout Ratio (%) and Cash Component (%)

Dividend: FY2017Total dividend of 55 sen per share with a 42% cash component for FY2017, and a strong dividend yield of 5.6%

* Actual Reinvestment Rate for Dividend Reinvestment Plan. The reinvestment rate for Final Dividend FY2017 is pending the execution of the 16th DRP.

# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend.

• Maybank adopted the single-tier dividend regime with effect from FYE 31 Dec 2012

85.9%*

85.7%*

88.2%*85.9%*

88.5%*91.1%*

86.1%*

88.6%*

#

82.6%*

55.060.0

36.0

65.0

53.557.0

84.0%*

DividendPayout Ratio

83.7%*

54.0

87.5%*

89.1%*

52.0

83.5%*

55.0

CashComponent

18

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


19

Key Indicators Industry Outlook

Singapore

Malaysia

Indonesia

• GDP (f): 5.3% (2018) vs 5.9% (2017)

• System loan (f): 4.5% (2018) vs 4.1% (2017)

• OPR (f): 3.25% (2018) vs 3.00% (2017)

• USD/MYR average (f): 3.83 (2018) vs 4.30 (2017)

• Inflation (f): 2.8% (2018) vs 3.7% (2017)

• GDP (f): 2.8% (2018) vs 3.6% (2017)

• System loan (f): 7%-8% (2018) vs 8.0% (2017)

• 3M SIBOR (f): 1.55% (2018) vs 1.50% (2017)

• USD/SGD average (f): 1.26 (2018) vs 1.37 (2017)

• Inflation (f): 0.9% (2018) vs 0.6% (2017)

• GDP (f): 5.3% (2018) vs 5.1% (2017)

• System loan (f): 10.2% (2018) vs 8.2% (2017)

• Reference Rate (f): 4.50% (2018) vs 4.25% (2017)

• USD/IDR average (f): 13,640 (2018) vs 13,397

(2017)

• Inflation average (f): 3.5% (2018) vs 3.8% (2017)

• The momentum of the domestic economic

recovery, subdued interest rate

environment and government projects

should provide support for credit growth

in 2018.

• Sufficient liquidity in the system will

enable lending growth.

• Loan growth supported by domestic

economic growth and pick-up in Singapore

property market.

• NIMs expected to improve from repricing

due to higher rates.

• No significant weakness in asset quality for broader portfolio.

• Loan growth supported by corporate

lending pick-up and stable consumer

lending.

• NIMs to remain stable in 2018 on 25 bps

OPR hike in January 2018.

• Stable to marginally higher ROEs for

banks; manageable MFRS 9 impact.

Market Outlook2018 industry outlook for our home markets

20

Maintain stable liquidity risk indicators ahead of NSFR adoption in 2019

Day 1 capital impact of ~40 bps with MFRS 9 adoption

Maybank Performance OutlookGroup guidance for FY2018

5

Effective NIM management in rising rate environment1

3

Managed cost growth with CIR ~48%4

Maintain pricing discipline of loans under new MFRS 9 environment2

Group ROE guidance of ~11%6

21

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


22

Overseas:

28.7%

71.3%

9.4%

8.6%

10.7%

Malaysia Singapore Indonesia Others

59.5%18.2%

14.4%

7.9%

58.5%25.7%

7.8%8.0%

77.2%

9.9%

8.9%4.0%

62.1%15.8%

14.6%

7.5%

56.7%25.5%

8.6%

9.1%

International & Malaysia Portfolio Mix FY2017

Overseas:

43.3%

FY2016

Net Operating Income Profit Before Tax

FY2017

Overseas:

37.9%

Overseas:

22.8%

Gross loans*

(Jan 16 – Dec 16)

Overseas:

41.5%

Overseas:

40.5%

(Jan 17 – Dec 17)

RM8.84

billion

RM485.7

billion

RM22.17

billion

RM10.10

billionRM493.8

billionRM23.27

billion

Note:

* Including Islamic loans sold to Cagamas and excludes unwinding of interest

23

22,173

12,685

7,555

1,409 137

1,593

23,268

13,497

7,658

1,337 247

1,891

Total Group CommunityFinancial Services

Group CorporateBanking & Global

Markets

Group InvestmentBanking

Group AssetManagement

Group Insurance &Takaful

FY2016

FY2017

11,686

5,929 5,717

346 (8)906

11,911

6,275 5,653

193 80 1,071



Markets




FY2016

FY2017

Segmental Performance of Businesses: FY2017 (1/2)

Net Operating Income

RM

million

+4.9%

RM

million

PPOP

+6.4% +1.4% (5.1)% +18.7%

+1.9%

+5.8% (1.1)% (44.1)% (>100)%

+80.3%

+18.2%

Group Global Banking (GB) (2.1)%

Group Global Banking (GB) +1.6%

FY2016: 9,101 FY2017: 9,242

FY2016: 6,055 FY2017: 5,927

Note:

Net income & PPOP for group includes expenditures of “Head Office & Others” of RM1,204.9 million for FY2016 and RM1,361.7 million for FY2017.

24

15,074

9,627

4,792

293 (7) 1,009

16,628

10,292

5,058

302 (1) 1,094



Markets




FY2016

FY2017 +10.3%

Net Fund Based Income

7,099

3,058 2,762

1,116

145 584

6,641

3,205 2,600

1,035

248 797



Markets




FY2016

FY2017 (6.5)%

(7.3)%

Group Global Banking (GB) +5.5%

Net Fee Based Income

RM

million

RM

million

+3.3% (88.0)%

+71.6%

+6.9% +5.5% +8.4%

FY2016: 5,078 FY2017: 5,359

Group Global Banking (GB) (3.5)%

FY2016: 4,023 FY2017: 3,883

Segmental Performance of Businesses: FY2017 (2/2)

Note:

Net fund based income includes expenditures of “Head Office & Others” of RM638.7 million for FY2016 and RM116.9 million for FY2017.

Net fee based income includes expenditures of “Head Office & Others” of RM566.2 million for FY2016 and RM1,244.8 million for FY2017.

(5.9)% +4.8% +36.6%

25

Income Statement for Insurance and Takaful Business: YoY


Net interest income 1,086.9 995.0 9.2%

Net earned premiums 5,250.9 4,444.1 18.2%

Other operating income 806.6 408.1 97.7%

Total operating income 7,144.4 5,847.1 22.2%

Net insurance benefits & claims incurred, net fee &

commission expenses and life & takaful fund tax(5,274.9) (4,285.4) 23.1%

Net operating income 1,869.5 1,561.7 19.7%

Overhead expenses (807.9) (700.0) 15.4%

PPOP 1,061.6 861.7 23.2%

Net impairment losses (62.4) (25.8) >100%

Operating profit 999.2 835.9 19.5%



commission expenses and life & takaful fund tax(5,274.9) (4,285.4) 23.1%

Less: intercompany elimination 217.7 177.5 22.7%

Total net insurance benefits & claims incurred,

net fee & commission expenses and life & takaful

fund tax

(5,057.1) (4,107.9) 23.1%

Reconciliation of net insurance benefits & claims incurred, net fee & commission

expenses and life & takaful fund tax

Note: Page 28 shows the quarterly trend of the Income Statement for Insurance and Takaful business

26

Key Operating Ratios: YoY

% FY2017 FY2016 YoY FY2015 FY2014

Return on Equity 10.9 10.6 0.3% 12.2 13.8

Net Interest Margin 2.36 2.27 9 bps 2.31 2.31

Fee to Income Ratio 28.5 32.0 (3.5)% 31.5 31.9

Loans-to-Deposit Ratio 1 93.8 93.9 (0.1)% 92.7 91.8

Cost to Income Ratio 2 48.7 47.1 1.6% 48.2 48.9

Asset Quality

Gross Impaired Loans Ratio 2.34 2.28 6 bps 1.86 1.52

Loans Loss Coverage 71.5 72.0 (0.5)% 72.0 95.6

Net Charge off rate (bps) (40) (62) 22 bps (41) (11)

Capital Adequacy (Group) 3

CET1 Capital Ratio 14.19 13.63 56 bps 12.53 11.38

Total Capital Ratio 18.80 18.94 (14) bps 17.49 15.87

Note: Page 35 shows the quarterly trend of key operating ratios.1 LDR excludes structured deposits as per BNM’s circular dated 21 June 2017 “Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013”2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Kim Eng.3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period

27

P&L Summary: QoQ

RM million1Q

FY2017

2Q

FY2017

3Q

FY2017

4Q

FY2017QoQ

4Q

FY2016YoY

Net fund based income 4,117.9 4,143.5 4,205.1 4,161.3 (1.0)% 3,917.9 6.2%

Net fee based income 1,412.1 1,640.8 1,692.6 1,895.2 12.0% 2,123.4 (10.7)%

Net operating income 5,530.0 5,784.3 5,897.7 6,056.4 2.7% 6,041.3 0.3%

Overhead expenses (2,779.3) (2,768.5) (2,886.4) (2,922.8) 1.3% (2,606.8) 12.1%

Pre-provisioning operating profit (PPOP) ¹ 2,750.6 3,015.8 3,011.3 3,133.6 4.1% 3,434.5 (8.8)%

Net impairment losses (542.8) (835.7) (409.6) (239.7) (41.5)% (624.5) (61.6)%

Operating profit 2,207.9 2,180.1 2,601.7 2,893.9 11.2% 2,810.0 3.0%

Profit before taxation and zakat (PBT) 2,249.1 2,244.5 2,678.4 2,926.1 9.3% 2,873.0 1.8%

Profit attributable to equity holders of

the Bank (Net Profit)1,702.8 1,658.4 2,027.2 2,132.1 5.2% 2,360.6 (9.7)%

EPS - Basic (sen) 16.7 16.1 19.9 19.9 0.4% 23.2 (14.1)%

Note:

¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses

28

Income Statement for Insurance and Takaful Business: QoQ

RM million1Q

FY2017

2Q

FY2017

3Q

FY2017

4Q

FY2017QoQ

4Q

FY2016YoY

Net interest income 251.1 299.1 260.6 276.0 5.9% 261.8 5.4%

Net earned premiums 1,253.9 1,255.8 1,307.4 1,433.8 9.7% 1,192.5 20.2%

Other operating income 259.8 172.3 84.4 290.2 >100% (280.7) >100%

Total operating income 1,764.8 1,727.2 1,652.5 2,000.0 21.0% 1,173.6 70.4%


commission expenses and life & takaful fund tax(1,424.0) (1,265.3) (1,289.2) (1,296.4) 0.6% (637.4) >100%

Net operating income 340.8 461.9 363.2 703.6 93.7% 536.2 31.2%

Overhead expenses (166.3) (186.8) (189.3) (265.4) 40.2% (209.4) 26.7%

PPOP 174.5 275.1 173.9 438.2 >100% 326.7 34.1%

Net impairment losses (1.8) (9.8) (23.9) (26.8) 12.3% 7.8 (>100)%

Operating profit 172.6 265.3 150.0 411.3 >100% 334.5 23.0%

RM million1Q

FY2017

2Q

FY2017

3Q

FY2017

4Q

FY2017QoQ

4Q

FY2016YoY


commission expenses and life & takaful fund tax(1,424.0) (1,265.3) (1,289.2) (1,296.4) 0.6% (637.4) >100%

Less: intercompany elimination 45.6 35.1 73.9 63.1 (14.6)% 42.1 49.9%

Total net insurance benefits & claims incurred,

net fee & commission expenses and life & takaful

fund tax

(1,378.4) (1,230.2) (1,215.3) (1,233.2) 1.5% (595.3) >100%

Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax

29

1,412 1,405

131

1,254

(1,378)

1,641 1,527

88

1,256

(1,230)

1,693

1,497

104

1,307

(1,215)

1,895

1,598

97

1,434

(1,233)

Total Other Operating Income Fee Income from IslamicOperations

Net Earned InsurancePremiums

Net Insurance Benefits &Claims Incurred, Net Fee &Commission Expenses andLife & Takaful Fund Tax

1Q FY2017

2Q FY2017

3Q FY2017

4Q FY2017

RM

million

RM million1Q

FY2017

2Q

FY2017

3Q

FY2017

4Q

FY2017QoQ

Commission, service charges and fees 835 883 923 923 (0.1)%

Investment & Trading Income 232 301 312 211 (32.4)%

Unrealised gain/ (losses) on securities 206 113 (179) 2 >100%

Unrealised gain/ (losses) on derivatives (76) 65 69 (183) >(100)%

Foreign Exchange Profit 76 48 244 191 (21.9)%

Other Income 132 118 126 454 >100%

Net Fee Based Income: QoQ

+3.2%

+12.0%

+16.2%

(2.0)%

+6.8%

+8.7%

+18.0%

(7.1)%

(32.9)%

+4.1%

+9.7%

+0.2%

(1.2)%

+1.5%

(10.8)%

30

Overheads: QoQ

RM million1Q

FY2017

2Q

FY2017

3Q

FY2017

4Q

FY2017QoQ

4Q

FY2016YoY

Personnel Costs 1,504.0 1,540.1 1,527.4 1,556.5 1.9% 1,351.2 15.2%

Establishment Costs 482.3 459.6 479.6 559.4 16.6% 451.0 24.0%

Marketing Expenses 135.3 109.8 116.7 153.3 31.4% 130.7 17.3%

Administration & General Expenses 657.7 659.0 762.7 653.6 (14.3)% 673.9 (3.0)%

Total 2,779.3 2,768.5 2,886.4 2,922.8 1.3% 2,606.8 12.1%

%1Q

FY2017

2Q

FY2017

3Q

FY2017

4Q

FY2017QoQ

4Q

FY2016YoY

Total Cost to Income ¹ 50.1% 47.7% 48.9% 48.2% (0.7)% 43.0 5.2%

Group JAW Position 1.4% (11.8)%

Note:

¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng

31

Group Gross Loans Growth: 31 December 2017

Note:

¹ Re-based loan growth figures are based on adjusted 31 December 2016 position in line with migration of client accounts, effective 1 January 2017

% of

Portfolio

31 Mar

2017

30 Jun

2017

30 Sep

2017

31 Dec

2017QoQ

31 Dec

2016YoY

Group Gross Loans 486.1 480.1 485.9 493.8 1.6% 485.7 1.7%

Malaysia (RM billion) 58% 270.7 273.8 278.7 285.5 2.4% 272.0 5.0%

Community Financial Services 71% 195.6 197.1 199.8 203.7 1.9% 194.4 4.8%

Community Financial Services ¹ 71% 195.6 197.1 199.8 203.7 1.9% 193.7 5.1%

Global Banking 29% 76.4 78.0 79.1 81.9 3.6% 78.8 3.9%

Global Banking ¹ 29% 76.4 78.0 79.1 81.9 3.6% 79.5 3.1%

International (RM billion) 41% 207.8 199.0 199.8 200.9 0.6% 206.8 (2.9)%

Singapore (SGD billion) 61% 39.1 38.5 39.1 40.6 3.7% 38.9 4.3%


Global Banking 46% 18.0 17.2 17.6 18.5 5.1% 18.0 2.6%

Indonesia (IDR trillion) 19% 122.6 123.1 125.0 129.2 3.4% 124.7 3.6%

Community Financial Services 75% 94.7 93.5 94.5 96.4 2.1% 97.0 (0.6)%

Global Banking 25% 27.6 29.3 30.2 32.5 7.6% 27.4 18.6%

Other markets (RM billion) 20% 43.3 39.3 38.9 39.5 1.5% 44.6 (11.6)%

Investment banking (RM billion) 1% 7.6 7.3 7.4 7.4 (0.1)% 6.9 6.8%

32

Malaysia Loans Growth: 31 December 2017

% of

Portfolio

31 Mar

2017

30 Jun

2017

30 Sep

2017

31 Dec

2017QoQ

31 Dec

2016YoY


Community Financial Services ¹ 71% 195.6 197.1 199.8 203.7 1.9% 193.7 5.1%

Consumer 57% 156.3 157.7 160.0 163.3 2.1% 155.3 5.2%

Total Mortgage 28% 76.2 77.6 79.0 80.7 2.2% 75.0 7.6%

Auto Finance 16% 44.2 44.6 45.2 45.7 1.2% 43.4 5.3%

Credit Cards 3% 6.5 6.6 6.8 7.2 6.2% 6.7 7.3%

Unit Trust 9% 26.8 26.2 26.4 27.0 2.1% 27.6 (2.1)%

Other Retail Loans 1% 2.5 2.6 2.6 2.7 2.4% 2.6 2.6%

SME + Business Banking 14% 39.3 39.4 39.7 40.3 1.5% 39.1 3.2%

SME + Business Banking ¹ 14% 39.3 39.4 39.7 40.3 1.5% 38.4 5.0%

SME 5% 13.2 13.8 14.3 14.9 3.8% 12.6 18.3%

SME ¹ 5% 13.2 13.8 14.3 14.9 3.8% 12.4 19.7%

Business Banking 9% 26.1 25.6 25.4 25.4 0.2% 26.5 (4.0)%

Business Banking ¹ 9% 26.1 25.6 25.4 25.4 0.2% 25.9 (2.0)%

Global Banking (Corporate) 29% 76.4 78.0 79.1 81.9 3.6% 78.8 3.9%

Global Banking (Corporate) ¹ 29% 76.4 78.0 79.1 81.9 3.6% 79.5 3.1%

Total Malaysia 270.7 273.8 278.7 285.5 2.4% 272.0 5.0%

Note:

¹ Re-based loan growth figures are based on adjusted 31 December 2016 position in line with migration of client accounts, effective 1 January 2017

33

Group Deposits Growth: 31 December 2017

% of

Portfolio

31 Mar

2017

30 Jun

2017

30 Sep

2017

31 Dec

2017QoQ

31 Dec

2016YoY

Group Gross Deposits 508.1 511.7 517.2 526.6 1.8% 517.1 1.8%

Malaysia (RM billion) 60% 301.8 304.9 310.4 317.8 2.4% 300.9 5.6%

Savings Deposits 13% 41.2 41.1 40.9 40.7 (0.5)% 38.8 5.0%

Current Accounts 27% 83.2 82.1 81.8 87.1 6.6% 83.2 4.8%

Fixed Deposits 53% 159.5 159.8 165.2 169.8 2.8% 163.5 3.9%

Others 6% 17.9 21.9 22.5 20.1 (10.7)% 15.5 29.9%

International 40% 208.2 208.8 208.3 210.3 0.9% 217.7 (3.4)%

Singapore (SGD billion) 67% 42.3 42.1 44.2 46.2 4.6% 44.5 3.8%

Savings Deposits 15% 5.8 5.8 6.4 7.0 8.3% 5.7 22.1%

Current Accounts 17% 7.1 7.6 7.6 7.6 (0.2)% 6.8 12.1%

Fixed Deposits 68% 29.4 28.8 30.1 31.6 5.0% 32.0 (1.2)%

Indonesia (IDR trillion) 17% 118.0 120.1 119.4 121.5 1.8% 119.3 1.8%

Savings Deposits 20% 24.8 24.5 24.4 24.8 1.6% 25.6 (3.1)%

Current Accounts 19% 18.9 20.2 20.8 23.6 13.7% 20.4 15.5%

Fixed Deposits 60% 74.3 75.4 74.2 73.1 (1.5)% 73.3 (0.3)%

Note:

Deposits figures are restated following a BNM circular dated 21 June 2017 which excludes structured deposits

34

93.9% 95.7% 93.8% 94.0% 93.8%

36.0%37.4% 36.8% 36.8% 37.3%

34.6% 35.7% 35.1% 35.0% 35.4%


LDR CASA CASA (without IA)

91.5% 90.8% 90.9% 90.7% 91.2%

40.5% 41.2% 40.4% 39.5% 40.2%

38.0% 38.4% 37.6% 36.6% 37.1%


LDR and CASA Ratio

Singapore Indonesia

Group Malaysia

104.5% 103.9% 102.4% 104.7% 106.3%

38.6% 37.0% 37.2% 37.8% 39.8%

88.9% 88.4% 86.7% 87.6% 88.1%


LDR (Bank Level)

87.4%92.4% 91.4% 88.5% 87.8%

28.1% 30.5% 31.7% 31.9% 31.6%

Dec 16 Mar 17 Jun 17 Sep 17 Dec 17Note:

• LDR excludes structured deposits as per BNM’s circular dated 21 June 2017 “Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013”

• Group and Malaysia LDRs include investment accounts totaling RM24.56 billion for 31 Dec 2017, RM26.80 billion for 30 Sep 2017, RM27.79 billion for 30 June 2017, RM31.71 billion for

31 March 2017 and RM31.54 billion for 31 Dec 2016

35

Key Operating Ratios: QoQ

%1Q

FY2017

2Q

FY2017

3Q

FY2017

4Q

FY2017QoQ

4Q

FY2016YoY

Return on Equity 10.0 9.6 11.6 12.4 0.8% 14.8 (2.4)%

Net Interest Margin 2.43 2.39 2.35 2.30 (5) bps 2.32 (2) bps

Fee to Income Ratio 25.5 28.4 28.7 31.3 2.6% 35.1 (3.8)%

Loans-to-Deposit Ratio 1 95.7 93.8 94.0 93.8 (0.2)% 93.9 (0.1)%

Cost to Income Ratio 2 50.1 47.7 48.9 48.2 (0.7)% 43.0 5.2%

Asset Quality

Gross Impaired Loans Ratio 2.40 2.53 2.50 2.34 (16) bps 2.28 6 bps

Loans Loss Coverage 71.2 70.1 71.7 71.5 (0.2)% 72.0 (0.5)%

Net Charge off rate (bps) (45) (68) (32) (16) (16) bps (54) (38) bps

Capital Adequacy (Group) 3

CET1 Capital Ratio 13.02 13.56 13.50 14.19 69 bps 13.63 56 bps

Total Capital Ratio 18.50 18.98 18.03 18.80 77 bps 18.94 (14) bps

Note:1 LDR excludes structured deposits as per BNM’s circular dated 21 June 2017 “Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013”2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Maybank Kim Eng.3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period

36

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


37

Community Financial Services: Overview of Market Share for Malaysia

Note:

¹ Rebased market share due to adjustment made to Industry data by BNM from Jan-15.

* Refers to housing, shophouse and other mortgage loans

** Credit cards market share refer to receivables for commercial

*** Total bank deposits inclusive of investment asset (“IA”)

^ Without IA. With IA, the market share as at Dec’17 for Total Core Retail Deposits, Retail

CASA, Retail Savings, Demand Deposits and Retail Fixed Deposits are 18.9%, 25.4%,

28.2%, 20.9% and 16.4% respectively (against MBB retail IA).

^^ Excluding non-financial transactions as per BNM guidelines

^^^ Industry numbers only available half yearly

Loans

Total consumer (Household) 17.6% 17.5% 17.5% 17.6% 17.6% # 2

Auto (Purchase of transport vehicles) 25.0% 25.4% 25.7% 26.1% 26.5% # 2

Total mortgage * 13.3% 13.3% 13.2% 13.2% 13.3% # 2

Credit cards ** 18.0% 17.9% 17.9% 18.4% 18.8% # 1

Unit trust 51.6% 51.8% 51.8% 51.7% 51.1% # 1

Deposits

Total deposits *** 17.9% 17.6% 17.9% 18.1% 18.4% # 1

Total core retail deposits ^ 17.9% 18.0% 17.6% 17.5% 17.7% # 2

Retail CASA ^ 24.6% 25.1% 24.9% 24.9% 24.5% # 1

Retail savings ^ 27.9% 28.3% 28.3% 28.3% 28.2% # 1

Demand deposits ^ 19.2% 19.7% 19.4% 19.1% 18.3% # 1

Retail fixed deposits ^ 14.5% 14.3% 13.9% 13.8% 14.4% # 2

Channels

Internet banking - Subscriber base 44.6% 44.3% 43.6% 42.2% 41.0% # 1

Mobile banking - Subscriber base 31.4% 32.0% 31.7% 31.8% 31.7% # 1

Internet banking - Transaction Volume ^^ 52.2% 55.1% 55.1% 55.1% 54.8% # 1

Mobile banking - Transaction Volume ^^ 59.3% 42.7% 43.5% 48.7% 49.3% # 1

Branch network ^^^ 18.8% 18.8% 18.6% 18.6% 18.6% # 1

Sep-17

vs

Dec-17

Market

positionDec-16 Jun-17 Sep-17 Dec-17Mar-17Market share

1

38

Business Banking + SME loans grew by 3.2% YoY to RM40.3

billion led by SME growth of 18.3% YoY

Community Financial Services: Overview of Malaysia Loans Portfolio

186.5 193.9 197.5

7.38 7.52 7.57

Dec 16 Sep 17 Dec 17

TFA Product per customer

103.8 104.1 104.6

3.363.52 3.55


TFA Product per customer

39.1 39.7 40.3


155.3 160.0163.3


+5.2% YoY

Consumer loans grew 5.2% YoY to RM163.3 billion led by

mortgage and auto finance growth

Note:

• Customer classification: HNW (IA>RM3m, TFA>RM4m); Affluent (IA between RM250k to RM3m, TFA between RM1m to <RM4m)

• TFA: Total Financial Assets (Deposits, Investments, Financing & Protection).

+2.1% QoQ

HNW and Affluent customer TFA grew 5.9% YoY to

RM197.5 billion

Mass customer TFA on an upward trend of 0.8% YoY and

0.5% QoQ

+3.2% YoY

+1.5% QoQ

RM

billion

+0.8% YoY

RM

billion

+5.9% YoY

RM

billion

RM

billion

+1.9% QoQ

Note:

• Business Banking and SME figures are before migration of accounts.

+0.5% QoQ

39

Community Financial Services: Overview of Malaysia Deposits Portfolio

214.0 206.2 212.3


+3.0% QoQ

136.8 137.3 137.5


+0.5 % YoY

+0.1 % QoQ

Our deposit strategy is focused on growing CASA,

which has improved our NIM.

Consumer deposits showed positive growth of 0.5% YoY,

mainly driven by growth in CASA of 3.3% YoY.77.2

68.874.9


(3.0)% YoY

+8.7% QoQ

Total CFS deposits contracted by 0.8% YoY, due to

reduction in high cost deposits

Business Banking + SME deposits contracted by 3.0% YoY

Consumer deposits grew 0.5% YoY

(0.8)% YoY

RM

billion

RM

billion

RM

billion

40

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


41

11.7

27.9

39.2

11.5

28.5

39.1

11.7

28.2

42.0


RM billion

Note: ‘Term Loan’ includes foreign currency denominated accounts, while ‘Trade

Finance and Others’ is combined with ‘Overdraft’.

Term Loan

Global Banking: Overview of Malaysia Corporate Banking Portfolio

Trade Finance market shareTotal GB loans increased 3.9% YoY to RM81.9 billion

Corporate Banking GIL ratio at 1.58% as at Dec 2017

Short Term

Revolving

Credit

Trade

Finance and

Others

Note: Market share of total trade products (On Balance Sheet items, Contingent

Liabilities and Others)

+1.0% YoY

+0.4 % YoY

+7.1% YoY

26.2%

25.1%

24.7%24.5% 24.4%


1.85% 1.93% 1.97% 1.92%

1.58%


42

57.8%

25.4%

14.1%

2.3%

0.1%

0.3%

RM34.4

billion

Commercial

Papers

, AA

, A

, AAA

, <A

Others

24.8%

19.1%31.7%

18.5%

5.9%

RM 154.4

billion

Government

Securities

- Domestic

Government

Securities

- Foreign

PDS/Corp

Bonds

- Domestic

PDS –

Foreign

Others

(NIDs, BA, etc)

21.7%

22.5%

29.4%

18.6%

7.8%

RM 130.9

billion

Government

Securities

- Domestic

Government

Securities

- ForeignPDS/Corp

Bonds

- Domestic

PDS –

Foreign

Others

(NIDs, BA, etc)

Group Securities Portfolio¹: 37.6% Foreign Securities as at FY2017

Group Securities Portfolio¹ grew 17.9% YoY

40% of PDS (Maybank Conventional Malaysia) rated “AA” or

above as at FY2017

Global Banking: Overview of Group Securities and Global Markets Portfolio

FY2017FY2016

57.968.2 67.7 73.6 67.7

62.8

68.6 71.477.1

77.6

10.2

11.9 9.6

9.59.1


Govt. Securities PDS/Corp Bonds Others

+17.9 %

130.9

148.7 148.7

FY2016 FY2017

Note:

¹ Group Securities Portfolio is inclusive of Financial assets designated upon initial

recognition( part of FVTPL)

160.2

Note:

‘Others’ category refers to Government Guaranteed bonds, Partially Government

Guaranteed bonds and non rated bonds

154.4

62.0%

16.2%

20.6%

0.4%

0.1%0.7%

RM21.8

billion

RM

billion

, <A

, A

Commercial

Papers

, AA

, AAA

Others

43

Malaysia39%

Singapore26%

Thailand21%

Indonesia4%

Philippines2%

Hong Kong4%

Others4%

FY2017 Brokerage Market Share by Country

Note: 1 Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings

Global Banking: Overview of Group Investment Banking Portfolio

Country RankMarket

Share

Trading Value

(USD’mil)

Thailand 1 6.8% 45,715.7

Malaysia 3 9.8% 28,816.1

Philippines 7 4.4% 3,440.3

Indonesia 19 2.1% 5,610.8

Hong Kong Tier 2 0.6% 33,342.5

Singapore 12 4.1% 18,113.8

Vietnam > 10 2.1% 2,372.0

FY2017 Fee-based Income for Malaysia

Brokerage Fees41.0%

Arranger Fees15.9%

Underwriting & Placement

Fees6.3%

Advisory Fees16.6%

Agency/ Guarantee Fees

3.1%

Other Fee Income17.1%

FY2017 Total Income Breakdown by Country

RM1,337.3

million

Total Income for Maybank Kim Eng1

1,408.8 1,337.3

FY2016 FY2017

(5.1)%

RM

million

44

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


45

Maybank Singapore: P&L Summary

SGD million FY2017 FY2016* YoY

Net fund based income 685.72 521.00 31.6%

Net fee based income 326.79 274.35 19.1%

Net income 1,012.51 795.35 27.3%

Overhead expenses (387.87) (352.72) 10.0%

Operating profit 624.64 442.63 41.1%

Profit before taxation 315.48 240.99 30.9%

Net fund-based income rose 31.6%, largely driven by net interest margin improvement.

Fee-based income increased 19.1%, led by higher wealth management, trade-related and treasury income.

Overhead expenses rose 10.0% arising from higher revenue-related spend.

Buoyed by a combination of broad-based revenue growth and disciplined cost management, operating profit expanded

41.4%.

PBT rose by a slightly slower pace of 30.9% to reach SGD315.48 million as additional loan loss allowances were set aside,

mainly for oil & gas related exposure.

Note:

* FY2016 figures are restated numbers to align the Islamic banking income re-classification adjustments made effective 2017.

46

6.1 6.8

14.9 15.7

6.4 7.8

17.1 15.8

Dec 16 Dec 17

Consumer -Time Deposits

Consumer CASA

Business TimeDeposits

Business CASA

5.7 7.0

6.8 7.6

32.0 31.6

Dec 16 Dec 17

Time Deposits

Demand Deposits

Savings

8.4 8.5

4.9 4.5

4.2 4.5

6.3 6.7

9.7 10.6

1.8 2.13.5 3.5

Dec 16 Dec 17

Other(Consumer)

Car Loan

Housing Loan

Others(Corporate)

Non-Bankfinancial Inst

GeneralCommerce

Building &Construction

Maybank Singapore loans rose 4.3% YoY

Diversified Loan Portfolio

Consumer

40%

Corporate

60%

4.5%6.4%

4.9% 4.6%4.3%

0.5%

5.8%

6.4%8.1% 8.0%


Maybank Singapore Growth Industry Growth

+4.3% YoY

Maybank Singapore: Overview of Loans and Deposits Portfolio

% YoY change

40.638.9

Consumer

51%

Corporate

49%

SG

D b

illion

Consumer deposits account for 51% of deposits

SG

D b

illion

CASA Ratio:

31.6%SG

D b

illion

Robust CASA growth of 16.6% YoY; CASA ratio also

improved to 31.6% in Dec 2017 from 28.1% a year ago

Consumer deposits rose marginally to S$23.6 billion as a 21.3%

jump in CASA was partially offset by an outflow of FD.

Business deposits were higher on the back of a 11.8% increase in

CASA

44.5 46.2

+3.8% YoY

47

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


48

Maybank Indonesia: P&L Summary

IDR billion FY2017 FY2016 YoY 4Q FY2017 3Q FY2017 QoQ

Net Fund Based income 7,702 7,430 3.7% 1,975 1,891 4.4%

Net Fee Based income 2,729 2,656 2.8% 588 685 (14.2)%

Net income 10,431 10,086 3.4% 2,563 2,576 (0.5)%

Overhead expenses (5,793) (5,517) 5.0% (1,300) (1,429) (9.1)%

Personnel (2,387) (2,381) 0.3% (516) (637) (19.0)%

General and Administrative (3,406) (3,137) 8.6% (784) (792) (1.1)%

Operating profit 4,638 4,569 1.5% 1,264 1,147 10.2%

Provisions Expenses (2,134) (1,980) 7.8% (787) (511) 54.0%

Non Operating (Expense)/Income 15 25 (36.9)% 44 (18) (>100)%

Profit Before Tax and Non-Controlling Interest 2,520 2,614 (3.6)% 521 618 (15.8)%

Tax and Non-Controlling Interest (716) (665) 7.5% (165) (168) (1.5)%

Profit After Tax and Non-Controlling Interest 1,804 1,948 (7.4)% 355 450 (21.1)%

EPS - Basic (IDR) 26.63 28.76 (7.4)% 5.25 6.64 (21.0)%

Note:

FY2016 figures are the restated to reflect Indonesia long form report for consistency

49

47,529

398

47,927 44,145

327

44,472

New Used Total

Dec 16 Dec 17

947 1,088

334 357

FY2016 FY2017

Revenue Profit Before Tax

Financing – stand aloneIDR billion

(7.1)%

(17.8)%

(7.2)%

+15.0% +14.5%

Asset Quality Unit Financing (unit)

Revenue and Profit Before Tax IDR billion

Maybank Indonesia: Overview of Maybank Finance Operations

+7.2%

0.32% 0.33% 0.32%0.30%

0.22%

0.39%0.41%

0.39%0.36%

0.26%


NPL Net NPL Gross

5,979

6,843

Dec 16 Dec 17

50

231

48

145

425

241

33

191

465

New Used Multipurpose Total

Dec 16 Dec 17

1,928 2,154

30 237

FY2016 FY2017

Revenue Profit Before Tax

Financing – stand aloneIDR billion

+11.8% +14.6%

Asset Quality Unit Financing (‘000 unit)

Revenue and Profit Before Tax IDR billion

+>100%

1.25% 1.17% 1.21% 1.08% 1.05%

3.32%2.96% 2.84%

2.60%2.17%


NPL Net NPL Gross

6,051

6,935

Dec 16 Dec 17

+4.2% (32.3)%

+9.5%

+31.9%

Maybank Indonesia: Overview of WOM Finance Operations

51

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


52

31.4

37.7

33.3

5.5

19.822.2

32.4

42.6

35.4

6.1

24.622.6

AITAB Mortgage Term Financing Others (CFS) Term Financing Others (GB)

Dec 16

Dec 17

Year Contribution

Dec 2016 54.5%

Mar 2017 54.9%

Jun 2017 55.8%

Sep 2017 56.0%

Dec 2017 56.9%

Maybank Islamic, 56.9%

Maybank Conventional Malaysia, 43.1%

Key Financial Ratios FY2017 FY2016

Net Profit Margin (YTD) 1.90% 1.82%

Total Capital Ratio (TCR) 20.78% 18.55%

Cost to Income Ratio (CIR) 35.12% 36.30%

Direct FDR1 95.1% 95.7%

Islamic Banking: Performance Overview

Group Islamic Banking Financial Performance

Maybank Islamic: Key Financial Ratios

Maybank Islamic: Total Gross Financing grew to RM163.6

billion

CFS:8%

Maybank Islamic Contribution to Maybank Malaysia Loans

and Financing as at Dec 17

Note:

¹ Direct Financing to Deposits Ratio (FDR) comprising gross financing against deposit

and Unrestricted Investment Account (exc. RPSIA assets and liabilities)

GB:12%

13%

6%

11%

2%

3%

24%

Note: Figures are as per latest segmentation breakdown

Group Islamic Banking’s performance has improved YoY, deriving from key markets in

Malaysia, Indonesia and Singapore


Total Income 4,600.4 3,874.2 18.7%

Profit Before Tax 2,751.6 1,945.4 41.4%

Financing & Advances 174,907.7 159,479.3 9.7%

Deposits & Investment Account: 162,986.9 145,216.7 12.2%

Deposits from Customers 138,431.5 113,672.1 21.8%

Investment Account 24,555.4 31,544.6 (22.2)%

RM

billion

53

Global Sukuk League Table

Ranking

Market Share

(%)

Amount

(USD million)Issues

#1 Maybank 13.07% 7,173 230

MYR Sukuk League Table

Ranking

Market Share

(%)

Amount

(USD million)Issues

#1 Maybank 30.88% 6,314 188

Key Products Dec 17 Dec 16

Automobile Financing 45.0% 44.3%

Home 27.7% 28.4%

Term financing 31.6% 30.1%

Maybank Islamic ranks No.1 by Asset Market Share

in Malaysia

Source: Latest BNM monthly statistical bulletin & respective Bank’s Financial Statements

MalaysiaAsset Market Share

Sep 17Rank

Maybank Islamic 31% 1

CIMB Islamic 12% 2

RHB Islamic 9% 3

Source: Bloomberg

Sukuk League Table Ranking Dec 17

Source for industry numbers: Latest BNM Monthly Statistical Bulletin

Islamic Banking: Market Share

Market Share by Product (Malaysia)Maybank Islamic Market Share (Malaysia)

Source for industry numbers: Latest BNM Monthly Statistical Bulletin

34.1%33.5% 33.6% 33.6% 33.8%

30.4%29.8% 29.6% 29.7%

30.4%


Financing Deposits & Investment Accounts

54

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Total Life/Family & General

Total General

Misc

Personal Accident

MAT

Motor

Fire

Total Life/Family

Group Premium

Credit Premium

Regular Premium

Single Premium

RM million

FY2017

FY2016

316.6 350.1

323.4 231.8

170.3391.5

Dec 16 Dec 17

Life/Family General Shareholder's Fund

31.9 33.3

Dec 16 Dec 17

Insurance and Takaful: Performance Overview

Total Assets

Gross Premium

Profit Before Tax

Life / Family (New Business) Market Share

No. 4 in Life/Family

(New Business)

No. 1 in General

Insurance and

Takaful

General Insurance and Takaful Market Share

20.1% YoY 4.4% YoY

Note: PBT presented here refers to Maybank Ageas Holdings Berhad (MAHB), and

includes an estimated transfer of RM100.8 million from Family Fund in 4Q FY2017.

Note: Market Share is for period Oct’16 – Sep’17 (Source: LIAM / ISM Statistics)

>100%

22.3%

35.0%

2.6%

30.0%

7.7%

9.1%

(3.7)%

(24.9)%

(4.0)%

(6.9)%

11.7%

8.9%

13.6%

14.5%

21.5%

0.0% 10.0% 20.0%

Etiqa Ins. & Tak.

GE Ins. & Tak.

Prudential Ins. & Tak.

AIA Ins. & Tak.

8.0%

10.5%

11.8%

0.0% 5.0% 10.0% 15.0%

HL-MSIG Ins. & Tak.

Allianz Insurance

Etiqa Ins. & Tak.

810.3

973.4

RM

million

RM

billion

55

61,136.8

71,803.5 72,949.6 76,157.8

Dec 16 Dec 17

Gross Loans

CustomersDeposits

5,314.2 5,889.9

328.8

1,496.7

FY2016 FY2017

Revenue

PBT

Maybank Philippines: Performance Overview

Revenue increased by 10.8% YoY, led by higher net interest

income (NII).

Increase in NII contributed by higher interest income from

term loans.

PBT increased to PESO1,496.7 million, driven by higher

revenue, coupled with lower provisioning.

Gross loans rose by 17.4% YoY driven by growth in term loans.

Customer deposits advanced by 4.4% YoY mainly supported by

growth in CASA.

Gross impaired loans ratio improved by 124 bps to 2.11% due

to decrease in NPL.

+10.8% YoY

+>100% YoY

Revenue and PBT

Gross Loans and Deposits

Key Highlights

PESO

million

PESO

million

+17.4% YoY

+4.4% YoY

Key Ratios FY2017 FY2016

Return on assets 1.46% 0.34%

Return on equity 9.56% 1.75%

Cost-to-income ratio 70.46% 70.13%

Loans-to-Deposit ratio 94.28% 83.81%

Gross Impaired Loans Ratio 2.11% 3.35%

No. of branches 74 80

56

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:







7. Affiliates 57


57

49,555.2

57,174.5 52,227.5

60,120.7

Dec 16 Dec 17

Gross Loans

CustomersDeposits

2,177.4

2,597.6

288.2

619.0

FY2016 FY2017

Revenue

PBT

An Binh Bank: Performance Overview

Revenue increased by 19.3% YoY, mainly due to higher net

interest income.

PBT increased to VND619.0 billion, mainly contributed by

higher revenue.

Gross loans expanded by 15.4% YoY driven by growth in retail

lending.

Customer deposits rose by 15.1% YoY mainly due to growth in

certificate deposit.

Gross NPL ratio increased by 33 bps YoY to 2.19%, mainly

contributed by higher NPL.

Key Ratios FY2017 FY2016





Gross NPL Ratio 2.19% 1.86%

+19.3 % YoY

+>100% YoY

+15.4 % YoY

+15.1% YoY


Revenue and PBTKey Highlights

VN

D b

illion

VN

D b

illion

58

61.1 61.9

36.7 30.6

FY2016 FY2017

Revenue

PBT

MCB Bank: Performance Overview

1.3% YoY

(16.6)% YoY

384.0 425.2

776.0

907.2

Dec 16 Dec 17

Gross Loans

CustomersDeposits

+16.9% YoY

+10.7% YoYKey Ratios FY2017 FY2016





Gross NPL Ratio 9.47% 5.65%


Revenue increased by 1.3% YoY, led by higher non interest

income (NOII).

PBT decreased by 16.6% YoY, mainly attributed by higher

administrative expenses.

Gross loans increased by 10.7% YoY, mainly driven by growth

in domestic loans and Islamic financing.

Customer deposits grew by 16.9% YoY mainly contributed by

higher CASA.

Gross NPL ratio increased mainly due to higher NPL.

Revenue and PBTKey Highlights

PK

R b

illion

PK

R b

illion

59

Dato’ Amirul Feisal Wan Zahir

Group Chief Financial Officer

Contact: (6)03-2074 7703

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

Jeeva Arulampalam

Head, Group 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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investor presentation · 2018-02-28 · investor presentation financial results 4q fy2017 and full...

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