ammb investor presentation 9mfy20 - ambank · investor presentation 27 february 2020. gceo...

9MFY2020 RESULTSINVESTOR PRESENTATION

27 February 2020

GCEO PRESENTATIONDato’ Sulaiman Mohd Tahir

9MFY20 Financial snapshot

Outlook for 2020

3

4

9MFY20 Financial snapshot

9MFY2020 Results – Investor Presentation3

Financial Snapshot

9MFY20 Financials 9MFY20 Positive income momentum driving profit growth

Profitability(RM’ mil)

Income3,238

9MFY19: 2,968 9% • Continued strong income growth in Q3

Expenses1,607

9MFY19: 1,531 5% • Investing for growth while maintaining positive JAWS

PBP1,631

9MFY19: 1,437 14% • Robust PBP growth, CTI of 49.6%

(Recovery) / Impairment

1349MFY19: (33)

>100% • Credit costs normalising

PATMI1,093

9MFY19: 1,046 5% • Good profit growth

ROE8.1%

9MFY19: 8.2% 10bps • ROTE at 9.4%

Assets & Liabilities (RM’ bil)

Gross Loans104.5

FY19: 101.8 3% • Loans growth picked up in Q3, ex. auto loans +5%

Deposits105.7

FY19: 106.9 1% • Actively managing funding and liquidity requirements

Capital & Liquidity

FHC CET11 12.2%FY19: 11.9%

27 bps • Well capitalised

FHC LCR163%

FY19: 193% 3,000 bps • Sound liquidity position

1. After deducting proposed dividends

Outlook for 2020


Market Outlook

GDP growth: 4.2%

Banking Sector

Inflation: 1.2%

Export growth: 1.0% - 2.0%

USD/MYR outlook: 4.00

Loans growth: 4.3%

Asset quality: Stable

OPR: 2.25%

Resilient liquidity & capital positions

Malaysia

GCFO PRESENTATIONJamie Ling

Financial overview

Guidance & Expectations

6-19

20

Q3FY20 Results (QoQ)

Q3FY20 Financial overview


Financial Overview

Asset Quality Capital & Funding

➢ Income up 3% to RM1,105mil (+RM36mil):

- Steady NII growth, up 6% to RM721mil, NIM further expanded to 2.02% (+11bps)

- NoII declined 2% mainly from General Insurance, partially offset by higher Investment Banking fee income

➢ Expenses higher at 552mil. CTI at 50.0% (Q2FY20: 49.2%)

➢ PBP grew 2% to RM552mil

➢ Lower net impairment of RM57mil, mainly due to non-repeat of large corporate provisions

➢ PATMI increased 20% to RM382mil

➢ ROE higher at 8.3% (Q2FY20: 7.0%)

➢ GIL at 1.71% (Q2FY20: 1.77%)

➢ LLC1 at 105.2% (Q2FY20: 105.8%)

➢ Adequate capital position, FHC CET12 12.2%

➢ Highly liquid, FHC LCR of 163%

1. Includes regulatory reserve2. After deducting proposed dividend

Q3FY20 Q2FY20 QoQ Change 9MFY20 9MFY19 YoY Change

CTI 50.0% 49.2% 80bps 49.6% 51.6% 200bps

NIM 2.02% 1.91% 11bps 1.93% 1.93% ≈

ROE 8.3% 7.0% 130bps 8.1% 8.2% 10bps

EPS1 12.71 sen 10.62 sen 2.09 sen 36.35 sen 34.75 sen 1.60 sen

9MFY20 Performance summary – P&L


Financial Overview

1. Basic Earnings Per Share

Q3FY20 Q2FY20 QoQ Change 9MFY20 9MFY19 YoY Change

Total Income 1,105 1,069 3% 3,238 2,968 9%

Expenses 552 526 5% 1,607 1,531 5%

PBP 552 543 2% 1,631 1,437 14%

Net (Recovery) / Impairment

57 109 48% 134 (33) >100%

PATMI 382 320 20% 1,093 1,046 5%

P&L(RM’ mil)

FinancialIndicators

12.0% Q3FY20 Q2FY20 QoQ Change 9MFY20 FY19 YTD Change

FHC CET1 12.2% 12.6% 43bps 12.2% 11.9% 27bps

FHC Tier 1 12.2% 12.6% 43bps 12.2% 11.9% 27bps

FHC Total Capital 15.6% 16.1% 42bps 15.6% 15.4% 20bps

9MFY20 Performance summary – balance sheet


Financial Overview

Q3FY20 Q2FY20 QoQ Change 9MFY20 FY19 YTD Change

Gross Loans 104.5 102.0 3% 104.5 101.8 3%

GIL 1.71% 1.77% 6bps 1.71% 1.59% 12bps

LLC1 105.2% 105.8% 60bps 105.2% 114.0% 880bps

Customer Deposits 105.7 102.7 3% 105.7 106.9 1%

CASA 24.8 23.4 6% 24.8 24.9 ≈

Balance Sheet(RM’ bil)

Capital Indicators2

1. Includes regulatory reserves2. After deducting proposed dividends

613 611 617 643 642 648 661 629 669 680 721

369 356 342428 372 359 286 326

395 389383

982 967 959

1,0711,014 1,007

947 955

1,065 1,0691,105

Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20

Net Interest Income Non-interest Income

Stepping up revenue growth


Income

421 312

142

1. Investment share revaluation2. Gain on disposal of foreclosed properties

222

RM’ mil

Business SegmentsQ3FY20 Q2FY20 QoQ Change 9MFY20 9MFY19 YoY Change

(RM’ mil)

Wholesale Banking 317 334 5% 953 794 20%

Investment Banking 85 69 24% 224 180 24%

Retail Banking 386 369 5% 1,112 1,109 ≈

Business Banking 94 90 4% 271 236 14%

Group Funding & Others 87 46 88% 183 176 4%

Total Income – Banking 968 908 7% 2,743 2,496 10%

General Insurance 133137

171161

22% 15%

491495

461472

7% 5%

Life Insurance 4 (10) >100% 4 11 64%

Total Income 1,105 1,069 3% 3,238 2,968 9%

9MFY18: 2,908

5% YoY

9MFY19: 2,968

2% YoY

9MFY20: 3,238

9% YoY

429404

383

342

501 502

434

355

536 543 552

328 332

219253

348 348 350

460

391

320

382

8.1% 8.1%

5.3%6.3%

8.3% 8.2% 8.1%

10.7%

8.8%

7.0%

8.3%


PBP PATMI ROE

Strong PBP growth, improving operating leverage


PBP & PATMI

RM’ mil


(RM’ mil)



Retail Banking 171 149 14% 472 489 3%


Group Funding & Others (4) (18) 79% (59) (47) 25%

PBP – Banking 501 468 7% 1,392 1,223 14%

General Insurance 4751

8575

45% 32%

235239

203214

16% 12%

Life Insurance 4 (10) >100% 4 11 64%

PBP 552 543 2% 1,631 1,437 14%

2171

1. Retail debt sale gain

1,0461,093

119

152

3176

167 12

Net profit higher from stronger income growth and improved cost efficiency


Group P&L

YoY Growth 6% 15% 9% 5% 14% >100% 2% 9% 5% 14% 5%

RM’ milNet Interest

IncomeNon-Interest

IncomeTotal

IncomeExpenses PBP

(Recovery) /Impairment

PBT Tax & Zakat PAT MI PATMI

9MFY20 2,070 1,168 3,238 1,607 1,631 134 1,497 311 1,186 93 1,093

9MFY19 1,952 1,016 2,968 1,531 1,437 (33) 1,470 342 1,127 82 1,046

NIM: 1.93%

NoII%: 36.1%

CTI: 49.6%

GIL: 1.71%

EffectiveTax Rate:

20.6%79% 74%

Positive growth in 9MFY20 Contraction in 9MFY20 Conventional PATMI Islamic PATZ

21% 26%

191

202

6.7 0.7

0.3

11.4

2.0 1.1

0.9

3.3

1.3

Q2FY20 WholesaleBanking

InvestmentBanking

RetailBanking

BusinessBanking

Others Asset volume& mix

Interbank /Group

Funding

Depositsrates

Depositsmix

Q3FY20

NIM expanded QoQ, stable YoY


Net Interest Margin (NIM) Movement

NIM

YTD NIM

9MFY19: 1.93%

9MFY18: 1.93%

Funding + DepositsAssets

Positive growth in Q3FY20 Contraction in Q3FY20

NIM movement:QoQ : 11bpsYoY : ≈

Sustaining strong trading gains and higher IB fee and General Insurance income


NoII

YoY Growth 100% 5% >100% 35% 3% 11% 12% 9% 64% 28% 15%

RM’ milForeclosed Properties

Corporate Banking

Group Treasury

& Markets

Investment Banking &

Fund Mgmt

WealthMgmt

Other RetailBusiness Banking

General Insurance

Life Insurance

Group Funding &

OthersNoII

9MFY20 - 120 187 195 67 120 65 392 4 19 1,168

9MFY19 22 126 67 144 69 134 58 360 11 26 1,016

9MFY19 NoII 9MFY20 NoIIPositive growth in 9MFY20 Contraction in 9MFY20

Q1FY20: 395Q2FY20: 389Q3FY20: 383

NoII

1,016

1,168

120

51 7

32

22 6

2 14

7 7

553 563 577

728

513 506 513

600

529 526552

56.3% 58.2% 60.1%

68.0%

50.6% 50.2%54.1%

62.8%

49.7% 49.2% 50.0%


Cost well managed while continuing to invest


Expense Growth Driver Expense and CTI Trend

Expenses

Positive P&L impact in 9MFY20 Negative P&L impact in 9MFY201. Retail Operational Loss2. Mutual Separation Scheme


(RM’ mil)



Retail Banking 215 220 2% 640 620 3%


Group Funding & Others 90 63 41% 242 222 8%

Expenses – Banking 466 440 6% 1,350 1,273 6%

Insurance (General, life, takaful)

86 86 ≈ 257 258 1%

Expenses 552 526 5% 1,607 1,531 5%

RM’ mil

RM’ mil 1462

81191201

1,531

1,607

72 85

9

9MFY19 Staff Cost Compliance &Governance

MFRS 16 Impact Others 9MFY20

208 200

441

94

187 215

898

-

181

251

711

-

IndividualAllowance

ECL Stage 3 /CP - Defaulted

ECL Stage 1 & 2 /CP - Non defaulted

Model Risk Adjustment

FY18 FY19 9MFY20

776 649 681 728 747 894

925 1,000 749 676 723 600

40 209 217 152 296

1,701 1,689 1,638 1,621 1,623 1,791

1.94% 1.86%1.70%

1.59% 1.62%1.71%

FY16 FY17 FY18 FY19 9MFY19 9MFY20

Retail Wholesale

Business GIL Ratio

81.2% 79.7%100.5% 114.0% 116.8% 105.2%

(33.4)

133.5

58.6

113.8

176.4

165.0

16.9

9MFY19 ECLStage 1 & 2

ECLStage 3

IndividualAllowance

Recoveries Others 9MFY20

Credit costs remained low whilst normalising

9MFY2020 Results – Investor Presentation

Impairment Balance (Balance Sheet) Credit Cost (%) and New Impaired Loans Formation (RM’ mil)

Net Impairment (RM’ mil) Gross Impaired Loans, GIL and LLC Ratios

Asset Quality

2. Includes regulatory reserve

AmBank Group FY16 FY17 FY18 FY19 9MFY20 9MFY19

Credit cost (%) -0.18% -0.19% 0.00% -0.30% 0.16%4 -0.04%4

Credit cost (excl. recoveries) (%)

0.46% 0.56% 0.47% 0.53% 0.53%4 0.58%4

New Impaired LoansFormation (RM’ mil)

1,418 1,330 1,162 1,123 1,257 1,142

RM’ mil

2Loan Loss Coverage

Positive P&L impact in 9MFY20 Negative P&L impact in 9MFY20

Non-performing / impaired assets

Performing assets

Stage 2

Stage 1226

FY18: 943FY19: 1,301

9MFY20: 1,143

Total ProvisionsRM’ mil

1. Includes macro provisions

276

3. Includes macro provisions

1

3

4. Annualised

622

485

15

Q1FY20: (32.5)Q2FY20: 109.1Q3FY20: 56.9

Strong~Very

Strong79%

Satisfactory~Moderate

18%

Marginal~ Substandard

1%

Impaired2%

Strong~Very

Strong57%

Satisfactory~Moderate

35%


4%

Impaired4%

Strong~Very

Strong45%Satisfactory~

Moderate47%


4%

Impaired4%

1.8

1.6

2.0

FY18

FY19

9MFY20

3.7

4.4

4.3

FY18

FY19

9MFY20

8.3

8.3

7.5

FY18

FY19

9MFY20

Watchful on credit quality


Loans to Real Estate Sector by Internal Risk Grades Loans to Construction Sector by Internal Risk Grades

Impaired Loans by Sector Loans to Oil & Gas (O&G) Sector by Internal Risk Grades

Asset Quality

SectorDec’19

Composition YTD Growth QoQ GrowthRM’ mil

Real Estate 316 18% 37% 4%

Residential Properties 473 26% 26% 5%

Transport Vehicles 163 9% 16% 15%

Manufacturing 246 14% 50% 18%

Trading and hospitality 128 7% >100% 31%

Mining and quarrying 51 3% 35% 6%

Construction 122 7% >100% 28%

Others 291 16% 31% 4%

Total 1,791 100% 11% 1%

Approx. 7% of Total Gross Loans



RM’ bil

RM’ bilRM’ bil

101.8

104.5

0.9

0.0

1.7

0.2 0.7

0.5

0.9

0.5 1.7

FY19 MidCorp Large Corp &Others

InvestmentBanking

Mortgage Auto Finance Cards Retail SME Others BusinessBanking

9MFY20

Loans growth boosted by higher disbursements in Q3


Gross Loans Movement (RM’ bil)

Loans

YTD Growth 6% 3% 3% 5% 11% 7% 25% 22% 9% 3%

Composition 15% 17% 2% 34% 13% 3% 3% 3% 10% 100%

Retail 2%

1. Annualised2. Based on BNM data from Mar’19 to Dec’193. Based on BNM data and in accordance with AMMB’s financial period

Wholesale 1%

Breakdown by rate sensitivity:Fixed rate – 24%Variable rate –76%

Breakdown by customers type:Retail – 56%Non-retail – 44%

Breakdown by concept:Islamic – 29%Conventional – 71%

Gross loans trend

Positive growth in 9MFY20 Contraction in 9MFY20

YTD Growth Industry

3% 3%2

6% 5%3

6% 4%3

ROA1: 1.02%

RoTA1: 1.03%

Ex. Auto : 5%

96.3

101.8

104.5

FY18

FY19

9MFY20

41.3 42.9 40.0 40.1 38.6 35.3 34.0

11.3 11.4 11.7 11.4 11.611.8 12.2

36.6 35.9 44.7 42.0 41.0 44.1 47.0

9.5 10.610.4 13.4

11.5 11.6 12.598.6 100.8

106.8 106.9102.8 102.7

105.7

5.5% 5.5% 5.7% 5.5%

5.3% 5.3%5.4%

Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20

Retail FD Retail CASA

Non-Retail FD Non-Retail CASA

AmBank Group Deposits Market Share (%)

11.3 11.4 11.7 11.4 11.6 11.8 12.2

9.510.6 10.4

13.411.5 11.6

12.5

20.822.0 22.1

24.9

23.1 23.424.8

21.1%21.8%

20.7%

23.3%22.5% 22.8%

23.4%


Retail CASA Non-Retail CASA CASA Composition (%)

Driving CASA growth


Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%)

Deposits

1. Based on BNM data from Mar’19 to Dec’192. Based on BNM data and in accordance with AMMB’s financial period

Retail DepositMix

53.3% 53.8% 48.4% 48.2% 48.9% 45.8% 43.7%

Customer deposits trend CASA trendYTD Growth Industry

1% 2%1

12% 5%2

2% 5%2

YTD Growth Industry

≈ 6%1

22% 3%2

3% 6%2

1

Retail CASAMix

54.2% 51.6% 52.8% 46.0% 50.1% 50.3% 49.3%

105.7

106.9

95.8

9MFY20

FY19

FY18

24.8

24.9

20.4

9MFY20

FY19

FY18

133.8 134.8 137.9158.8 157.9

71.2% 72.2% 72.2%

65.0% 66.9%

59.6% 59.5% 59.3% 58.4% 58.4%

FY16 FY17 FY18 FY19 9MFY20

Total Assets RWA/Total Assets Peers

12.58%

12.15%

12.51%

0.02%

0.36%0.08%

0.35% 0.02% 0.02%

Q2FY20 Transfer ofReg reserve to RE

Credit RWA Market RWA Operational & otherRWA

Others Q3FY20 Q3FY20 ProformaProfit

Q3FY20 ProformaFHC CET 1

11.3% 11.6% 11.1% 11.9% 12.2%

12.3% 12.5%

16.1% 16.3%

13.6%15.4% 15.6%


CET 1 Tier 1 Total CAR

Adequate capital levels


Financial Holding Company CET1

RWA/Total Assets Capital Adequacy Ratios3

Capital

RM’ bil

1. Based on an average of our seven peer domestic banks as at 30 September 20192. FHC RWA/Total Assets

1

Positive growth in Q3FY20 Contraction in Q3FY20

3. After deducting proposed dividends 4. Aggregated banking entities5. FHC CET 1 and Tier 1 ratios are the same

FHCAggregated basis4

2

2

55

2

5

6

6. Q3FY20 profit has not been audited, therefore has not been recognised for regulatory purpose

Guidance & Expectations


Guidance

8.1%

49.6%

N/A

12.2%

Reported ROE

CTI

Dividend Payout

FHC CET 1

9MFY20 ActualRevised

FY20 Guidance

~ 8.0% - 8.5%

≤ 50.0%

45% - 50%

11.5% ± 1%

Thank You

Group Performance

3,696 3,766 3,979 3,922 2,968 3,238

36%39% 38%

34% 34% 36%


Total Income Non-interest Income %

43.3 44.137.6

50.0

34.8 36.4

1.05%1.09%

0.91%1.08% 1.02% 1.02%


EPS ROA

58.8% 57.4% 60.8%54.3% 51.6% 49.6%

0.8% -0.6%

12.0%

-12.0% -9.5%

5.0%


CTI Expenses Growth

1,302 1,325 1,132

1,505

1,046 1,093

8.8% 8.5%7.0%

8.8% 8.2% 8.1%


PATMI ROE (%)

Yearly performance


Cost to Income Ratio and Expenses Growth (%) ROA (%) and EPS (Basic)

PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%)

9MFY2020 Results

PATMI: ROE:CAGR FY16-FY19: 4.9% CAGR FY16-FY19: ≈YoY Growth 4.5% YoY Growth 0.1%

Total IncomeCAGR FY16-FY19: 2.0%YoY Growth 9.1%

CTI: Expenses:CAGR FY16-FY19: 1.5% CAGR FY16-FY19: 0.7%YoY Growth 2.0%

ROA: EPS:CAGR FY16-FY19: ≈ CAGR FY16-FY19: 4.9%YoY Growth ≈ YoY Growth 4.6%

1

1. AnnualisedSource : BNM, financial statements

91.0

96.3

101.8

FY17 FY18 FY19

Net interest margin and gross loans


Quarterly Gross Loans (RM ‘bil)

NIM Trend

NIM & Gross Loans

1. Net spread equals to Gross Yield less COF

1

QoQ Growth: 3%YTD Growth: 3%

5.08% 5.07% 5.03% 4.92% 4.93% 4.83% 4.84%

3.39% 3.47% 3.46% 3.45% 3.37%3.22% 3.11%

2.02% 1.91% 1.88% 1.78% 1.87% 1.91% 2.02%

1.69% 1.60% 1.57% 1.47% 1.56% 1.61% 1.73%


Gross Yield COF NIM Net Spread

4.96% 4.94% 5.02%4.87%

3.27% 3.26%3.45%

3.23%

1.98% 2.00% 1.89% 1.93%

1.69% 1.68% 1.58% 1.64%

FY17 FY18 FY19 9MFY20

98.499.9 100.4

101.8100.8

102.0

104.5


Retail Banking23%

Wholesale Banking

56%

Investment Banking

7%

Business Banking

7%

Insurance9%

Group Funding & Others

-2%

ReportedRM1,093mil

Corporate Banking10%

Group Treasury &

Market16%

Investment Banking

10%

Fund Management7%

Business Banking

6%

Wealth Management

6%

Cards5%

Other Retail5%

Insurance34%

Others1%

Wholesale Banking

26%

Investment Banking

17%

Business Banking

6%

Retail Banking

16%

Insurance & Others

35%

Non-interest income and PATMI mix


Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY)

NoII & PATMI

63%

12%

35%

10%

>100%

12% 13%

79%

23%

2%

4%

43%

9%

8%

13%

59%

6%

1

1. After deducting share of minority interests

19%

3%

7%

Non-interest income

RM1,168 mil

28%

Total impairments by category (RM’ mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 QoQ Change 9MFY19 9MFY20 YoY Change

ECL Stage 1 & 2 / CP – Non defaulted1 (71) (9) 50 (14) (128) (38) (29) 24% (30) (195) >100%

ECL Stage 3 / CP – Defaulted 136 144 138 131 163 182 132 28% 418 477 14%

Individual Provisions 46 34 (17) (17) 9 123 44 64% 63 177 >100%

Recoveries (117) (134) (215) (371) (93) (120) (77) 36% (466) (290) 38%

Other Provisions2 13 (24) (7) 1 15 (37) (13) 64% (18) (35) 93%

Total net impairments / (writeback) 7 11 (51) (270) (32) 109 57 48% (33) 134 >100%

Total impairments by divisions (RM’ mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 QoQ Change 9MFY19 9MFY20 YoY Change

Wholesale Banking (39) (12) (142) (32) (106) 48 1 98% (193) (58) 70%

Investment Banking (5) 1 (1) (1) (0) 1 (8) >100% (6) (7) 26%

Retail Banking 42 19 51 (251) 59 37 49 34% 112 145 30%

Business Banking 2 1 12 16 14 27 21 21% 15 62 >100%

Group Funding & Others 5 3 32 (3) (1) (1) (4) >100% 40 (6) >100%

General Insurance 2 (1) (2) 0 2 (2) (2) 15% (2) (2) 22%

Total net impairment / (writeback) 7 11 (51) (270) (32) 109 57 48% (33) 134 >100%

GIL Ratio (%) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 QoQ Change YoY Change

Wholesale Banking 2.54% 2.27% 2.18% 2.01% 1.90% 2.06% 1.77% 29bps 41bps

Investment Banking 0.12% 0.12% 0.13% 0.10% 0.11% 0.11% 0.11% ≈ 2bps

Retail Banking 1.26% 1.32% 1.32% 1.28% 1.44% 1.51% 1.54% 3bps 22bps

Business Banking 2.41% 2.53% 1.68% 2.18% 2.39% 2.52% 2.73% 21bps 105bps

Group 1.77% 1.72% 1.62% 1.59% 1.66% 1.77% 1.71% 6bps 9bps

Industry 1.59% 1.53% 1.45% 1.48% 1.57% 1.61% 1.51% 10bps 6bps

Impairments


Net Impairment / (Writebacks) and GIL Ratio

Asset Quality

1. Includes macro provision 2. Includes foreclosed property, trade & sundry debtors and provision for contingencies

LoansComposition 3% 2% 13% 1% 4% 7% 3% 5% 7% 2% 53% ≈ 100%

YTDGrowth 8% 17% 19% 33% 3% 8% 7% ≈ 9% 26% ≈ 77% 3%

Loans by sector vs. industry


Industry (RM’ bil)

AmBank Group (RM’ bil)

Loans

Source : BNM, financial statements

LoansComposition 2% 1% 7% 1% 5% 7% 2% 7% 7% 2% 58% 1% 100%

YTDGrowth 3% 25% 6% 27% 1% 4% 1% 2% 1% 2% 4% 10% 3%

AgricultureMining & Quarrying

ManufacturingElectricity,

Gas & WaterConstruction

Wholesale, Retail, Hotels &

Restaurant

Transport, Storage & Com

Finance, Insurance, & Biz Act

Real EstateEducation &

HealthHousehold Others Total Loans

3.0 2.0 14.0 0.6 4.3 7.3 2.9 4.97.5 2.0

55.9

0.1

104.5Dec-19

36.0 10.3 121.6

15.8 91.2 131.2 39.6 117.4 115.7

40.3

1,030.4

22.0

1,771.6

Dec-19

14%

86%

< 1 yr > 1 yr

89%

8%

2% 1%

< 6 mth 6-12 mth 1-3 yr 3-5 yr

Funding profile


LDR / LTAF2

Funding Composition vs. Peers Funding Maturity Profiles

Funding

FY16 FY17 FY18 FY19 9MFY20 Peers1

Equity & debt capital 16% 16% 16% 15% 15% 16%

Customer deposits 73% 74% 74% 74% 73% 74%

Term funding & loans soldwith recourse

10% 9% 7% 6% 5% 5%

Deposits from banks & FIs 1% 1% 3% 5% 7% 5%

Deposits from Customers, Banks & FIs

Term Funding and Debt Capital

1. Based on an average of seven peer domestic banks as at 30 September 2019

9MFY20:RM6.1 bil

9MFY20:RM116.7 bil


LDR 97.3% 96.9% 100.5% 95.3% 98.9%

LTAF2 83.0% 85.4%

2. Loan-to-Available-Funds ratio (LTAF) refers to gross loans (excluding financing funded by Islamic Investment Accounts and loans sold to Cagamas) divided by deposits plus borrowings and sub debt

Divisional Performance


Disbursement Repayment

182 173

244

184

259

165188

Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20Wholesale

Banking Coverage

41%

Group Treasury & Markets

36%

Transaction Banking

23%

Wholesale Banking

Coverage 37%

Group Treasury

& Markets

54%

Transaction Banking 9%

Total AssetsRM77.0b

Wholesale Banking


Total Income (YoY Movement) and Total Assets by Line of Business QoQ PAT (RM’ mil)

Wholesale Banking

Corporate Banking Loan Disbursement and Repayment

Total IncomeRM953 mil

5%

>100%

QoQ Growth: 14%YoY Growth: 2%

6%

9MFY19: 599 9MFY20: 611

Wholesale Banking


Balance Sheet (RM’ mil/%)

Income Statement

Key Ratios

Wholesale Banking

YoY Growth 11% 43% 20% 6% 25% 70% 1% ≈ 2%

RM' milNet Interest

IncomeNon-Interest

IncomeTotal Income Expenses PBP Impairment PBT Tax PAT

9MFY20 645 308 953 220 733 (58) 790 179 611

9MFY19 579 215 794 208 586 (193) 779 180 599

9MFY20 FY19 YTD Change

Gross Loans / Financing 33,927 33,519 1%

Gross Impaired Loans 599 675 11%

Customer Deposits 52,766 49,002 8%

CASA 10,373 11,411 9%


GIL Ratio 1.77% 2.01% 24bps

CTI 23.1% 26.3% >100bps

Loan Loss Coverage 38.4% 62.3% >100bps

ROA1 1.07% 1.09% 2bps

9MFY20 PAT 9MFY19 PAT Positive growth in 9MFY20 Contraction in 9MFY20

1. Annualised

36.2 37.1 35.7

40.544.1


5.7%5.5%

5.0%4.9%

4.8%

3.9% 3.8%

3.6%3.4%

3.6%

2015 2016 2017 2018 2019

Trading Value Trading Volume

Investment Banking


Fund Management – AUM (RM’ bil)

League Table Market Share of Value and Volume Traded on Bursa (KLSE)1

Investment Banking

Market Share1 As At 31 Dec 2019 (%)

Rank2

DCM (Overall MYR Bonds) 10.9% 3

Islamic Sukuk 10.7% 4

Unit Trust 8.2% 5

Stockbroking 4.8% 7

M&A 10.6% 4

Fund Raising 4.7% 3

1. Calendar Year data2. Comparing rank movement with 30 September 2019

Investment Banking



Income Statement

Key Ratios

Investment Banking

YoY Growth 19% 35% 24% 7% 70% 26% 65% 93% 59%

RM' milNet Interest

IncomeNon-Interest


9MFY20 29 195 224 138 86 (7) 93 20 74

9MFY19 37 144 180 130 50 (6) 56 10 46




Customer Deposits 850 744 14%

CASA 153 123 25%



CTI 61.7% 71.7% >100bps


ROA1 4.26% 2.23% >100bps

Average AUM 52,761 47,311 12%


1. Annualised

Auto13%

Mortgage15%

Cards16%

Personal Financing2%

Deposits37%

Wealth6%

Retail SME8% Others

3%

Auto 23%

Mortgage62%

Cards 5%

Retail SME 6%

Others4%

Total loansRM58.2 bil

75

114

98

281

71

8692


Retail Banking


Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil)

Retail Banking

Total IncomeRM1,112 mil

QoQ Growth: 8%YoY Growth: 13%

5%

9%

3%

7%

22%

11%

16%

35%

9MFY19: 287 9MFY20: 249

-

200

400

600

-

20

40

60

80


Car

ds

in c

ircu

lati

on

Ne

w c

ard

s is

sue

d

New cards issued ('000) Cards in circulation ('000)

2,688 2,764 2,629 2,625 2,553 2,594 2,473

5351

44

38 37 36 36


Merchant volume (RM'mil)

Merchants in force ('000)

675 702

866

677

800 822 831



Mortgage Auto Finance

Retail Banking


Credit Cards Mortgage and Auto Finance Quarterly Disbursement

Wealth Sales (RM’ mil) Merchant Volume

Retail Banking

QoQ Growth: 5% YoY Growth: 6%

QoQ Growth: 1% YoY Growth: 19%QoQ Growth: 1%YoY Growth: 9%

Mortgage QoQ Growth: 10%Auto Finance QoQ Growth: 21%

9MFY20: 2,453

9MFY20 7,620

9MFY19: 2,243

9MFY20: 8,081

Retail Banking



Income Statement

Key Ratios

Retail Banking

RM' milNet Interest

IncomeNon-Interest


9MFY20 926 186 1,112 640 472 145 327 78 249

9MFY19 906 203 1,109 620 489 112 377 90 287





CASA 12,215 11,448 7%



CTI 57.6% 58.0% 40bps


ROA1 0.64% 1.01% 37bps

Average AUM 1,409 1,379 2%

YoY Growth 2% 8% ≈ 3% 3% 30% 13% 13% 13%


1. Annualised

AmBank Islamic

branches

Weekend banking

branches

ATMs @ 7-Eleven

Electronicbanking centres

Internet &mobile banking

AmGeneral AmMetlifeAmInvestment

Bank

AmCardServices

MBC

Distribution Channels


Retail Banking

Branches ATM Regional Offices

Perlis 1 3

Kedah 6 24

Pulau Pinang 14 50 2

Perak 18 45 1

Selangor 36 212 3

Kuala Lumpur 23 97 3

Putrajaya 1 3

Negeri Sembilan 7 39

Melaka 6 32 1

Johor 21 82 1

Pahang 8 28 1

Terengganu 2 14

Kelantan 2 17

Sabah 9 39 1

Labuan 1 3

Sarawak 15 56 1

170 744 14

1. Data shown as at 31 December 20192. MBC – Merchant Business Centres

Other Customer Touch Points

Population Density

< 100 persons per km2

101-500 persons per km2

501-1,000 persons per km2

1,001-1,500 persons per km2

> 1,501 persons per km2

2 2 255 178 AmOnline 29 branches4 counters

15 branches40 agencies

6 retail broking7 branches

15

5,934 6,364 6,833 7,523 7,607 7,898 8,264

2,060 2,219

2,222 2,441 2,462 2,527

2,5857,994

8,583 9,055

9,964 10,06910,425

10,850


Non-trade Trade

1,439 1,804 1,881 2,052 2,099 2,176 2,382

3,085 3,292 3,498

3,776 3,808 4,017 3,907

4,524

5,096 5,379

5,827 5,907 6,193 6,290


CASA FD

33

36

2927

29

19

27


Business Banking


Customer Deposits (RM’ mil)

Gross Loans (RM’ mil) QoQ PAT (RM’ mil)

Business Banking

QoQ Growth: 42%YoY Growth: 23%YTD Growth: 9%

YTD Growth: 8%

9MFY19: 99 9MFY20: 76

Business Banking



Income Statement

Key Ratios

Business Banking

YoY Growth 15% 12% 14% 19% 11% >100% 24% 26% 23%

RM' milNet Interest

IncomeNon-Interest


9MFY20 206 65 271 110 160 62 98 22 76

9MFY19 179 58 236 93 144 15 129 30 99





CASA 2,382 2,052 16%



CTI 40.8% 39.4% >100bps


ROA1 0.99% 1.47% 48bps


1. Annualised


GIF Ratio 1.93% 1.95% 2bps

CTI 34.3% 38.0% >100bps

Financing Loss Coverage 102.9% 103.2% 30bps

ROA1 0.93% 0.80% 16bps


Gross Financing 30,282 29,330 3%

Gross Impaired Financing 586 573 2%


CASA Deposits 8,458 8,969 6%

Islamic Banking



Income Statement

Key Ratios

Islamic Banking

RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ

9MFY20 664 227 436 71 365 81 285

9MFY19 623 231 391 110 281 64 217

YoY Growth 7% 2% 12% 36% 30% 26% 31%

9MFY20 PATZ 9MFY19 PATZ Positive growth in 9MFY20 Contraction in 9MFY20

1. Annualised

82% 81% 79% 79%

79% 79%

18% 19%21% 21%

21% 21%

1,567 1,580 1,474 1,527

1,1161,173


Motor Non-Motor

64% 63% 57% 58% 55% 59%

96% 97%92% 92%

89%92%


Loss Ratio Combined Ratio

194192

282

242

204

237

180170

246

198

165190


PBT PAT

General Insurance


Gross Premium Mix and Growth (RM’ mil)

Loss Ratio and Combined Ratio YoY PBT and PAT (RM’ mil)

General Insurance

2. Includes write-back of prior year tax provisions

2

YoY PBT Growth: 16%YoY PAT Growth: 15%

YoY GWP Growth: 5%YoY Motor Growth: 5%

YoY Non-motor Growth: 6%1

1. Includes motor PA

Insurance and Group Funding & Others


Income Statement – Group Funding & Others

Income Statement – Insurance (General, Life & Takaful)

Insurance & Others

RM'mil Total Income Expenses PBP Impairment PBT Tax PAT

9MFY20 496 257 239 (2) 241 47 194

9MFY19 472 258 214 (2) 216 39 177

RM'mil Total Income Expenses PBP Impairment PBT Tax PAT MI PATMI

9MFY20 183 241 (59) (6) (53) (36) (17) 93 (110)

9MFY19 176 222 (47) 40 (87) (7) (80) 82 (162)

YoY Growth 5% 1% 12% 19% 12% 20% 10%

YoY Growth 4% 8% 25% >100% 39% >100% 79% 14% 32%


Shareholding structure


Corporate Structure

AMMB Holdings Berhad

23.8%1 AmCorp 13.0% PNB 9.0%2 EPF 7.9% Others 46.3%

100% AmBank (M) Berhad

100% AmInvestment Group Berhad

100% AmInvestment Bank Berhad


26% 26% 23% 26% 26%

1.ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited2.Based on amalgamation of shares held by funds managed by PNB3.MetLife owns 50% plus one share in AmMetLife Insurance Berhad, with the remaining shares held by AmBank Group, and AmBank Group owns 50% plus one share in AmMetLife Takaful Berhad, with the remaining

shares owned by MetLife

Foreign shareholding excluding ANZ

100% AmBank Islamic Berhad

100% MBF Cards (M’sia) Sdn Bhd

33.33% Bonuskad Loyalty Sdn Bhd

100% AMAB Holdings Sdn Bhd

51% AmGeneral Holdings Berhad

~50% AmMetLife Takaful Berhad3

~50% AmMetLife Insurance Berhad3

100% AmGeneral Insurance Berhad

49%

~50%

~50%

As at 31 December 2019

Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful

3.88 4.05 4.20 4.20 4.30 4.30 4.40 4.40 4.40 4.40 4.48 4.50 4.60 4.75 4.80 4.90

UOB HLIB KAF MIDF ADBS RHB CLSA JP MBB TA CITI PIVB CIMB KEN NOMURA AFFIN

Credit ratings, target price and recommendations


Ratings & Target Price

Credit Ratings

Target Price and Recommendations

Buy / Outperform / Overweight / AddAverage target priceSell / Underperform / Fully valued / Reduce / Underweight

Hold / Neutral / Market perform / Equalwt / In line Source Bloomberg, Research House Report as at 31 December 2019

P/EPS : 7.74 Closing Price: RM 3.91 Average TP : RM 4.41

P/BV : 0.65 Market Cap: RM 11.78 bil Buy : 10 (62%)

Hold : 6 (38%)

Sell : 0 (0%)

Ave. TP/ Ave. CP : 1.14x

9MFY20Ratings

AMMB AmBank (M) AmBank Islamic AmInvestment

RAM LT: AA2, ST: P1 Outlook: Stable

LT: AA2, ST: P1Outlook: Stable

LT: AA2, ST: P1 Outlook: Stable

LT: AA2, ST: P1 Outlook: Stable

S&P LT: BBB+, ST: A-2Outlook: Stable

Moody’s LT: A3, ST: P-2Outlook: StableBCA: baa2Adj BCA: baa2

RH1 RH2

Glossary & Disclaimer of warranty and limitation of liability


Glossary & Disclaimer

Reported PerformanceReported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market

Growth DefinitionQoQ growth refers to Q3FY20 vs Q2FY20YoY growth refers to 9MFY20 vs 9MFY19YTD growth refers to 9MFY20 vs FY19

Disclaimer on rounding differencesNumbers may not add up due to rounding

Disclaimer on restatement of comparativesThe comparatives for business segments’ financials have been restated to reflect current business realignment

The information has been prepared by AMMB Holdings Berhad (AmBank Group or the Group) for information purpose and is believed to be correct at the time of presentation. No representationor warranty, express or implied, is given by or on behalf of AMMB Holdings as to the accuracy and completeness of the information or opinion contained in this presentation.

This presentation does not purport to contain all information that may be required to evaluate AmBank Group or its financial position and should not be construed as an offer or recommendationto buy or sell securities. Neither does this presentation to form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

Certain statements in this presentation may contain forward-looking statements. These forward-looking statements are based on current beliefs and expectations of the Group and are subject tosignificant risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

The term “AMMB Holdings” and “AmBank Group” denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to thefinancial institutions under AMMB Holdings.

For further information, visit www.ambankgroup.com;

or contact

Chelsea Cheng Chuan Shing

Head, Group Finance – Investor Relations

Tel : +603 2036 1425

Fax: +603 2070 8262

Email: [email protected] / [email protected]

Teng Li Lin

Vice President, Group Finance – Investor Relations

Tel : +603 2036 1435

Fax: +603 2070 8262

Email: [email protected]

http://www.ambankgroup.com/

mailto:[email protected]



ammb investor presentation 9mfy20 - ambank · investor presentation 27 february 2020. gceo...

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