53rd annual general meeting - maybank.com...mar 28, 2013 · 5 5 6.63 3.93 4.48 1.23 6.87 5.29 5.17...

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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

2


Delivering Results

Achieving Objectives

Looking Ahead

3 3

RM5.74billion

17.6%

Profit Attributable

to Shareholders

4.88 5.74

CY2011 FY2012

RM

billion

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

6 6

RM7.89billion

14.8%

Profit Before Tax

(PBT)

6.88

7.89

CY2011 FY2012

RM

billion

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

12


Delivering Results


Looking Ahead

1313

6 Our record-breaking results underline the success of our

transformation journey when we restructured the Group into the

new House of Maybank


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


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


RM 6.6 billion

Project Financing

San Miguel Corporation

Completed April 2012

RM 1.8 billion

Term Loan Facility

South Luzon Tollway

Corporation


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


SGD 5.0 billion

Term Loan

Khazanah Nasional


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


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


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


Bank Rakyat Indonesia

Bank Mandiri

Maybank

UOB

Bank Central Asia

OCBC

DBS

25


Delivering Results


Looking Ahead

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.

3232

We have presence in all 10 ASEAN countries

Worldwide Presence ASEAN Presence

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.

4141

53rd Annual General MeetingPresentation to Shareholders

Thank You

53rd annual general meeting - maybank.com...mar 28, 2013 · 5 5 6.63 3.93 4.48 1.23 6.87 5.29 5.17...

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