53rd annual general meeting balance sheet liabilities rm billion term loan trade finance overdraft...
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53rd Annual General Meeting
Dato’ Sri Abdul Wahid OmarPresident and CEO 28 March 2013
Presentation to Shareholders
1 1
2012 was a great year for Maybank
We posted another record profit
Expanded our regional reach
Strengthened our fundamentals
Embedded a service ethos driven
by our core values
4 4
RM16.6b
+12.0%Revenue
(Net Income)
Fund based Income
Fee based Income
RM10.2b
+10.8%
RM6.4b
+14.0%
5 5
6.63
3.934.48
1.23
6.87
5.29 5.17
1.20
Community Financial Services
Global Banking International Banking
Insurance & Takaful
CY 2011
FY 2012
Revenue growth across all business pillars
5.1%normalised
15.5%
13.6%normalised
RM
billion
32.9%normalised
7 7
5.24
0.96
0.35 0.33
5.51
1.140.55 0.69
Malaysia Singapore Indonesia Others
CY 2011
FY 2012
5.2%
RM
billionGood PBT growth in
our home markets
18.9% 59.8% 109.1%
8 8
69.8%
14.4%
7.0%
8.8%
International:
30.2%
PBT contribution from International
increased to 30% from 24% in CY2011
Malaysia
Singapore
Indonesia
Others
9 9
120.7 135.4
57.8 64.5
Dec 2011 Dec 2012
CFS
GWB
282.8317.3
Dec 2011 Dec 2012
Group loans growth of 12% driven by stronger growth in Indonesia
12.2%
9.9 9.6
14.8 17.7
Dec 2011 Dec 2012
Consumer
Commercial
24.7 27.3
Malaysia (RM billion)
Indonesia (Rp trillion)
20.6 28.9
46.652.2
Dec 2011 Dec 2012
Consumer
Non-consumer
67.281.1
20.8%10.5%
11.8%
Singapore (SGD billion)
Group Gross Loans (RM billion)
178.6199.8
GB
1010
Headline KPIs Achievement Target
Return on Equity
(ROE)15.6%16.0%
15.2%12.9% Loans and Debt
Securities Growth
Excellent shareholder value creation
Adopted a more conservative growth plan to
minimise margin compression and focus on
profitability
1111
We are the most valuable company
listed on Bursa Malaysia
Market Capitalisation (RM bil.)
76.6
57.5
57.2
56.7
56.1
65.5
47.3
55.3
55.3
43.5
Maybank
Public Bank
Sime Darby
CIMB Group
Axiata Group
Dec 2012
Dec 2011
1313
6 Our record-breaking results underline the success of our
transformation journey when we restructured the Group into the
new House of Maybank
Community Financial Services
Global Banking (formerly Global
Wholesale Banking)
Insurance & Takaful
Enterprise Transformation Services
MaybankGroup CEO + Support
IslamicFinance
International Expansion
Enab
lem
en
t
1414
In line with our vision
To Be A Regional Financial Services Leaderwe made huge strides towards our 5 strategic goals
Undisputed No. 1 Retail Financial Services provider in Malaysia1
Leading ASEAN wholesale bank eventually expanding to
Middle East, China & India2
Undisputed Insurance & Takaful Leader in Malaysia and
Emerging Regional Player3
Truly regional organisation, with ~40% of pre-tax profit
derived from international operations4
Global leader in Islamic Finance5
1515
Market
Position
Market
Share
Growth
(YoY)
Value
(RM billion)Domestic
Unit Trust 60.2%No.1 18.1% 21.9
Mortgage No.2 13.4% 15.2% 48.5
No.2Auto Finance 20.2% 12.9% 31.2
Cards Receivables No.2 15.2% 1.5% 5.3
Business Banking/SME 22.1% 5.0% 27.1
Community Financial Services
Consistent market share growth
Undisputed No. 1 Retail Financial Services provider in Malaysia1
No.1
1616
15.8
2.7
29.2
25.9
18.1
2.6
29.4
32.5
Dec 12 Dec 11
Trade Finance
Off Balance
Sheet
Liabilities
RM billion
Term
Loan
Trade
Finance
Overdraft
Loans grew 11.5% to RM64.5 billion Trade Finance market share eased
due to settlements
Global Banking: Loans growth driven by term loans
3.9% 3.9%
1.3%
Dec 2010 Dec 2011 Dec 2012
Gross Impaired Loans Ratio improved
due to major recoveries
Leading ASEAN wholesale bank eventually expanding to Middle East,
China & India2
0.5%
YoY
23.3%
26.9% 26.5%
Dec 2010 Dec 2011 Dec 2012
25.4%
YoY
1717
1,2071,331
CY 2011 FY 2012
Revenue of RM 1,331m with
Malaysia contributing 41%
RM
million
Total Income for
Maybank Kim Eng
RM
million
Malaysia545.5, 41%
Singapore271.3, 20%
Thailand275.1, 21%
Philippines113.7, 9%
Indonesia33.2, 2%
Hong Kong 49.5, 4%
Others42.9, 3%
RM1,331
million
10.3%
Maybank Kim EngNow a major regional investment banking player
1818
League table
FY2012 Maybank IB’s (Malaysia)
Industry Position & Market Share
Sources: 1 Bloomberg, 2 Bursa Malaysia
Maybank IB
Industry
Rank
by Value
Total
Value
(RM bil.)
Deals /
Issues
Market
Share
M&A1 1 46.6 30 36.5%
Equity & Rights Offerings1 2 6.2 11 19.7%
Debt Markets -
Malaysia Domestic Bonds1 2 30.2 170 25.6%
Debt Markets -
Malaysian Ringgit Islamic Bonds1 2 26.5 159 27.7%
Equity Brokerage2 3 57.6 n.a. 7.1%
1919
Notable deals in 2012
Astro Malaysia Holdings Berhad
Completed October 2012
RM 15.6 billion
IPO
Sapura Kencana
Completed May 2012
RM 11.2 billion
Merger & Listing
Felda Global Ventures Holdings
Bhd
Completed June 2012
RM 10.4 billion
IPO
DanaInfra Nasional Bhd
Completed July 2012
RM 8.0 billion
Sukuk
DRB-Hicom Bhd
Completed June 2012
RM 3.02 billion
Term Loan/IB
Malaysia Airports Holdings
Berhad
Completed March 2012
RM 616 million
Private Placement
Gas Malaysia
Completed June 2012
RM 734.45 million
IPO
Tanjung Bin Energy
Completed March 2012
RM 6.6 billion
Project Financing
San Miguel Corporation
Completed April 2012
RM 1.8 billion
Term Loan Facility
South Luzon Tollway
Corporation
Completed March 2012
PHP 28.5 billion
Term Loan Facility
Marina Bay Sands Pte Ltd
Completed June 2012
SGD 5.1 billion
Term Loan & RCF
MS Commercial Pte Ltd/ Ophir-
Rochor Comm Pte Ltd
Completed April 2012
SGD 5.0 billion
Term Loan
Khazanah Nasional
Completed April 2012
SGD 750 million
Term Loan
Genting Hong Kong Limited
Completed August 2012
USD 600 millionTerm Loan & Revolving Credit
Facility
Malaysia Philippines
Hong KongSingapore
2020
4.70
2.05
2.65
5.38
2.26
3.12
Combined Gross Premium
Total General Total Life/Family
CY 2011
FY 2012
Insurance: Leading position
No. 1 in Life/Family
(New Business)
No. 1 in General
14. 7%
Combined Gross Premium
rose 14.7%
RM
billion
13.6%
13.9%
18.7%
Prudential Ins. & Tak.
Great Eastern Ins. & Tak.
Etiqa Ins. & Tak.
10.0%
10.8%
13.5%
Allianz Insurance
AmG+Kumia Insurance
Etiqa Ins. & Tak.
10.5%17.9%
Undisputed Insurance & Takaful Leader in Malaysia and Emerging
Regional Player3
AmG + Kurnia
2121
Loans growth matched industry
Asset quality continued to improve
Revenue and PBT rose 1.4% and
8.8% YoY respectively
Singapore: Good performance despite economic slowdown
1.4%
8.8%
SG
D m
illion
Truly regional organisation, with ~40% of pre-tax profit derived from
international operations4
8.6%
25.4%28.6%
10.5%11.4%
14.8%
24.2%
10.4%
Jun 2010 Jun 2011 Dec 2011 Dec 2012
Maybank Singapore Growth Industry Growth
716.5
395.6
726.2
430.5
Net Income Profit Before Taxation
CY 2011
FY 2012
0.46% 0.47%0.53%
0.62% 0.53% 0.53%0.45%
0.14%0.18%
0.26%0.33% 0.32% 0.32% 0.31%
Jun2011
Sep2011
Dec2011
Mar2012
Jun2012
Sep2012
Dec2012
Gross Impaired Loans Ratio
Net Impaired Loans Ratio
2222
BII: Strong profit and loans growth
17.8%
72.2%
Rp t
rillio
n
Revenue and PBT rose 18%
and 72% respectively
Asset quality remains healthy
Net Interest Margin improved YoY
1.7%
1.2% 1.3%
Dec 2010 Dec 2011 Dec 20126.33
0.99
7.46
1.70
Total Revenue Profit Before Tax
CY2011
FY2012
5.2%5.5%
5.9% 5.9% 5.7%
Dec 2011 Mar 2012 Jun 2012 Sep 2012 Dec 2012
2323
0.95 1.19
CY2011 FY2012
Maybank Islamic: surpassed RM1 billion PBT
Dec 11 Jun 11 Dec 10
Financing to Deposit Ratio 83.7% 87.8% 97.9%
Islamic Financing to
Total Domestic Loans28.5% 27.4% 26.1%
Net Impaired Financing
Ratio1.03% 1.25% 1.90%
RM million 6-Month FP11 6-Month FY11YoY
Growth
Fund based income 865.5 623.8 38.7%
Fee based income 142.5 107.2 32.9%
Total income 1,008.0 731.1 37.9%
Allowance for losses on
financing(61.3) (11.7) 426.3%
Profit before tax and
zakat567.1 429.9 31.9%
Maybank Islamic financing
52.4 62.0
CY 2011 FY 2012
Maybank Islamic PBT
24.9%
RM
billion
28.5%30.6%
Dec 11 Dec 12
Islamic Financing to
Total Domestic Loans
Target to achieve 33% by 2015
RM
billion
18.3%
Global leader in Islamic Finance5
2424
We are one of the top banking groups in Southeast Asia
197
149
135
114
80
74
60
53
54
45
174
128
118
104
68
65
52
51
50
44
DBS
UOB
OCBC
Maybank
CIMB
Public Bank
Bangkok Bank
Siam Commercial Bank
Krung Thai Bank
Kasikorn Bank
Deposits
Loans
289
242
207
162
110
90
79
74
74
68
DBS
OCBC
UOB
Maybank
CIMB
Public Bank
Bangkok Bank
Siam Commercial Bank
Krung Thai Bank
Kasikorn Bank
3,197
3,055
2,245
1,989
1,860
1,651
1,407
1,295
1,253
1,240
OCBC
DBS
UOB
Bank Rakyat Indonesia
Maybank
Bank Mandiri
CIMB
Siam Commercial Bank
Public Bank
Bank Central Asia
Total Assets (USD bil): 31 Dec 2012 Loans and Deposits (USD bil): 31 Dec 2012
PATAMI (USD mil): 4 Quarters to 31 Dec 2012 Market Capitalisation (USD bil): 27 Mar 2013
No. 4 No. 4
No. 5 No. 5
18.3
18.4
20.8
22.3
24.0
25.6
26.1
27.9
29.2
31.3
Public Bank
CIMB
Siam Commercial Bank
Bank Rakyat Indonesia
Bank Mandiri
Maybank
UOB
Bank Central Asia
OCBC
DBS
2626
-1.6%
7.2%
5.1%5.6% 5.3%
2009 2010 2011 2012 2013
Malaysia: Growth to remain strong in 2013
Real GDP growth
Forecast
GDP growth forecast to
remain strong above 5%
in 2013
Investment will remain
key growth driver with
roll out of ETP projects
Higher inflation of 2.5%
(2012: 1.6%) on
minimum wage and
subsidy rationalisation
Pricing in OPR hike of
25bps in 4Q as inflation
picks up
2727
Malaysia: ETP to drive loans growth
Total Loans
RM
billion
Loans grew 10.4% in 2012
from 13.6% in 2011.
In 2012, household loans
grew 11.4% and non-
household loans rose 9.2%.
For 2013, loans expected
to grow 10-11% amid stable
economic growth and flow
through from ETP projects.
Less margin compression in
2013 as lending rates have
stabilised although funding
remains competitive.
500
600
700
800
900
1,000
1,100
1,200
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
Jan 0
7
Oct
07
Jul 08
Apr
09
Jan 1
0
Oct
10
Jul 11
Apr
12
Jan 1
3
Total Loans YoY growth
Gro
wth
2828
Singapore: Stronger growth in 2013
GDP growth to improve to 3.0%
from 1.3% in 2012 as rising
external demand.
Lower inflation of 3.8% (2012:
4.6%) on softer property rents
and SGD appreciation.
Interest rates to remain low.
Systems loans is expected to
grow at 9-11% for 2013.
Housing loan demand to
weaken after 7th round of
property tightening measures
to curb investment purchases.
Real GDP growth
Forecast
-0.9%
14.8%
5.2%
1.3%
3.0%
2009 2010 2011 2012 2013
2929
4.6%
6.2%6.5%
6.2%6.7%
2009 2010 2011 2012 2013
Indonesia: Growth to sustain above 6%
Real GDP growth
Forecast
GDP growth to sustain above 6% on
demography, FDI and
infrastructure developments
Higher inflation of 5.3% (2012:
4.3%) on cut in fuel subsidy.
Benchmark interest rate to rise to
6.25% by end-2013 from 5.75%.
High capital adequacy ratio (2012:
17.4%), lower NPL ratio (2012:
1.9%) and loans grew 23.1%.
Loan to deposit ratio improved to
85.6% (2011: 78.8%).
Cost to income ratio declined to
74.1% (2011: 85.4%).
Systems loans is expected to grow
18%-20% for 2013.
3030
In 2013, the Group will focus on
3 key priorities
Raise the tempo for Regionalisation1
Accelerate the move to a High Performance Culture2
Change the Cost Structure3
3131
We firmly believe in the great potential of the
ASEAN Economic Community 2015
Economic Size & Population
600 million people, third largest in Asia
Combined GDP of USD2 trillion, the third largest economy
straddling China and India
Increased Intra-Regional Trade & Investment Flows
ASEAN Free Trade Agreement (AFTA) boosted intra-ASEAN
trade to USD520b in 2010 from just USD90b in 1993.
Demand for Infrastructure Development
Total infrastructure development required over next decade
is USD60 billion per annum.
Lower Cost, More Business Opportunities
Lower business, production, distribution and employment
costs from free flows of goods, services, investment & people
as well as from efficiency gains.
3333
Maybank: One of the banks with the largest presence across ASEAN
BANK
MARKET
CAP
@ 31 Dec 12
(USD bil)
TOTAL
ASSETS
@ Dec 12
(USD bil)
MALAYSIA
SIN
GAPO
RE
IND
ON
ESIA
TH
AIL
AN
D
PH
ILIP
PIN
ES
BRU
NEI
VIE
TN
AM
CAM
BO
DIA
LAO
S
MYA
NM
AR
1 DBS 29.3 289
2 OCBC 27.1 242
3 MAYBANK 25.2 162
4 UOB 25.2 207
5 BCA 23.2 46
6 MANDIRI 19.5 66
7 CIMB 18.7 110
8 SCB 20.4 74
9 PUBLIC 18.6 90
10 BANGKOK 12.2 79
11 BDO 6.4 30
12 METROBANK 5.3 23
Investment Banking Affiliate/Representative OfficeUniversal Banking Retail & Commercial Banking
3434
Raise the tempo for Regionalisation
Start harvesting value from regional initiatives
Accelerate transformation program in Indonesia
Develop clear growth strategy in Singapore
Implement transformation to hyper-grow in
Philippines
Increase network and human capital in Growth
markets
3535
Prospects for 2013
Optimistic on the growth prospects of ASEAN,
as countries take on infrastructure
investments to structurally improve domestic
economies.
Singapore will continue to be an important hub
for trade finance and M&A activity, while
Indonesia expected to build on strong domestic
economy & maintain growth projections.
Malaysia, where 66% of the Group's gross loans
originate from, expected to continue with ETP
investment momentum.
3636
Prospects for 2013 (cont.)
Maybank is now strategically positioned across
ASEAN, and well placed to further grow
international operations towards a 40% PBT
contribution.
Strategic capabilities across consumer and
global wholesale banking are building up in key
markets, supported by a strong home base.
Strong capital position to support at least 12%
growth in risk-weighted assets in the near
term, with a focus on providing sustainable
returns to shareholders.
3737
Robust Capital Adequacy
Capital Adequacy remained strong with DRP
and following equity placement
Strong RWCR ahead of Basel III and to fund growth
10.3% 11.0 11.1%
12.8% 13.4% 13.5%
16.6% 17.2% 17.4%
Fully electable portion paid in cash
Assuming 85% reinvestment rate
Full electable portion reinvested
Risk Weighted Capital Ratio (RWCR)
Core Capital Ratio
Common Equity Tier 1 Ratio
3838
Headline KPIs Target
Return on Equity (ROE) 15%
12%
Other KPIs
12%
Group Loans Growth
Loans Growth
Group Deposits Growth
12% Malaysia
11% Singapore
22% Indonesia
Key Performance Indicators FY2013
3939
Strong improvement in our External Customer Engagement (ECES)
index reflecting traction on our transformation efforts
Overall customer engagement score is 48.3% with an improvement of 7.9%
Source: Towers Watson , 95% confidence level
External Customer
Engagement Score (%)
n=2,296 n=25,486 n=30,747 n=33,142 n=28,173
48.3%
40.4%34.2%32.6%
29.0%
7.9%
4040
For FY2012, we recorded Pre-tax Profit of RM7.9 billion and provided RM2.0 billion in taxes. We declared total net dividends of RM4.3 billion to our 58,000 shareholders. 49% of the dividends or RM2.1 billion are payable to PNB and the various funds managed by PNB. Another 14% or RM600 million are payable to EPF. These dividends indirectly benefit more than 11 million unit holders of ASN, ASB, AS1Malaysia, ASW and 13 million EPF contributors. That means people like you and us.
To our customers, shareholders & business partners,
we are grateful to you for your continued support
With total assets of RM495 billion (USD160 billion), we are the number one banking group in Malaysia and one of the largest in Southeast Asia.
We continue to play our primary role in mobilising deposits from customers and channelling them toproductive sectors of the economy. One in five cars in Malaysia are financed by us. One in six homes arefinanced by us. And we are the largest financier to the business community with 20% market share. In short, as the highest rated bank in Malaysia, we not only keep people’s money safe, but we make it productive to help grow the economy.
Beyond business, we also play a part in touching the lives of communities wherever we operate, throughnumerous corporate responsibility programmes. These initiatives are intended to build a sustainable and progressive future for all and are very much in line with our commitment to be at the heart of the communities we serve.
Our heartfelt appreciation to you. Indeed, our success is due to you. Our success is for you.From 47,000 Maybankers here in Malaysia and across the region.