ANAL YST S BRIE F ING HAL F YE AR E NDE D 30 JUNE 2017 - PowerPoint PPT Presentation

ANAL YST S’ BRIE F ING HAL F YE AR E NDE D 30 JUNE 2017 GROUP F I NANCE & PL ANNI NG Stric tly Priva te & Co nfide ntia l

CE O’s Pre se nta tion Pag e 1 GROUP F I NANCE & PL ANNI NG

ST RAT E GIC F OCUS IN 2017 & HOW T O PL AN T O GE T T HE RE • F o c us o n CASA (Driving Sa la ry a c c o unts, Ca sh Mg t e - b a nke r, Mud a ra b a h CA, Driving T ra nsa c tio na l I A – Al Awfa r) De posit Dr ive • Rig htsizing o f F unding Mix (Ca g a ma s & I ssua nc e o f MT N) • Ca utio us Asse ts Gro wth (8%) • Ca pita l e ffic ie nt stra te g y (Driving I A & I AP) De fe nsive Str ate gy • Ba la nc e d g ro wth (Driving SME& Supply Cha in) • Pre se rve Asse t Qua lity • Stra te g ic Co lla b o ra tio n with F inT e c h c o mpa nie s Digitalisation • Building Dig ita l Ca pa b ility / Dig ita l b a nking divisio n • Dig ita l tra nsfo rma tio n – c ha nne ls, pro c e sse s, pro duc tivity a nd a na lytic s Pag e 2 GROUP F I NANCE & PL ANNI NG

ST RAT E GY AGE NDA VAL UE BASE D DIGIT AL ISAT ION INT E RME DIARY (VBI) Pag e 3 GROUP F I NANCE & PL ANNI NG

VAL UE BASE D INT E RME DIAT ION An inte rme diatio n func tio n that aims to de live r the inte nde d o utc o me s o f Shar iah thr o ugh pr ac tic e s, ings that g e ne rate po sitive and c o nduc t and o ffe r sustainable impac t to the e c o no my, c o mmunity o nme nt , witho ut c o mpro mising the and e nvir financ ial re turns to share ho lde rs PROF IT PE OPL E PL ANE T T riple Bo tto m-L ine Appro a c h Pag e 4 GROUP F I NANCE & PL ANNI NG

RE SPONSIBL E F INANCE •Pre -sc re e ning Pro c e ss (in Cre dit Asse ssme nt Pro c e ss •Ne w T a rg e t Ma rke t E SG Complia nc e Asse t •Gre e n F ina nc ing & Re ne wa b le E ne rg y •Minimum c o mplia nc e to Ma la ysia n Sta nda rd  Produc tive •Driving SME Po rtfo lio  We a lth •Supply Cha in F ina nc ing Cre a tion •Co lla b o ra te with SME Re a l E c onomy  E Co rp, Bio T e c h & Othe r c onomic Ag e nc ie s (to b e ne fit Multiplie r fro m te c hnic a l a sse ssme nt) •F le xi Ho use F ina nc ing – F o c us o n Owne r T he ma tic / Oc c upie d Prog ra m •E duc a tio n F ina nc ing L e nding Prosperity •Clinic E xpa nsio n F ina nc ing Pag e 5 GROUP F I NANCE & PL ANNI NG

DIGIT AL ISAT ION Str ate gic Collabor ation with F inT e c h Building Digital c ompanie s Capability (Re ve nue Shar ing Mode l) Digital tr ansfor mation – Digital Banking c hanne ls, (a division of the pr oc e sse s, Bank) pr oduc tivity and analytic s GROUP F I NANCE & PL ANNI NG Pag e 6

GCF O’S PRE SE NT AT ION Pag e 7 GROUP F I NANCE & PL ANNI NG

BIMB HOL DINGS Pag e 8 GROUP F I NANCE & PL ANNI NG

1H 2017 HIGHL IGHT S T otal r e ve nue RM1,862.8 million, + 5.1% (1H 17 vs. 1H 16) PBZT RM461.4 million, + 5.3% (1H 17 vs. 1H 16) ROE : 20.0% & ROA: 1.5% (base d on PBZT ) T otal Asse ts RM61.9 billion, + 8.2% Y- o- Y Ne t F inanc ing RM40.5 billion, + 11.5% Y- o- Y Pag e 9 GROUP F I NANCE & PL ANNI NG

BIMB vs KL CI – ONE YE AR SNAPSHOT 1850 4.8 Sha re holding % a s a t 30 June 2017 1800 4.6 1750 4.4 1 L T H 52.48 1700 4.2 2 E PF 12.47 1650 4 3 PNB 5.78 1600 3.8 1550 3.6 4 KWAP 5.46 1500 3.4 5 Ama na h Sa ha m 5.31 Bumipute ra FBMKLCI Index (R2) BIMB MK Equity (R1) ∆ fr om Jul 16 vs Aug 17 F o re ig n 2.00 BI MB 11.3% K L CI 6.4% Pag e 10 GROUP F I NANCE & PL ANNI NG

PROF IT ABIL IT Y T RE ND – BHB GROUP Consiste nt Re sults Pr ofit be for e zakat & taxation RM million 869.2 834.4 819.4 815.4 9 months 6 mths Sept 2016 June 16 461.4 474.1 438.2 F Y2013 F Y2014 F Y2015 F Y2016 1H 2017 GROUP F I NANCE & PL ANNI NG Pag e 11

PROF IT ABIL IT Y T RE ND – BHB GROUP Profit be fore za ka t a nd ta xa tion (RM million) Bank Islam Group STMB Group 720.4 702.8 ↑ 12.7% 685.7 677.3 ↑ 2.3% 223.9 206.5 186.0 367.8 173.7 359.7 131.6 116.8 FY2013 FY2014 FY2015 FY2016 1H 2017 FY2013 FY2014 FY2015 FY2016 1H 2017 BIMB Securities Group 1.7 1.1 0.9 0.7 0.7 FY2013 FY2014 FY2015 FY2016 1H 2017 GROUP F I NANCE & PL ANNI NG Pag e 12

GROUP KE Y F INANCIAL INDICAT ORS Ac tua l Ac tual De c 16 June 17 Re turn o n E q uity (%) – b a se d o n PBT 22.0% 20.0% * Re turn o n Asse ts (%) – b a se d o n PBT 1.4% 1.5% * Re turn o n E q uity (%) – b a se d o n PAT 15.9% 14.2% * Re turn o n Asse ts (%) – b a se d o n PAT 1.0% 1.1% * Co st I nc o me Ra tio (%) 59.1% 58.7% E a rning s pe r sha re (se n) 35.25 17.60 Ne t ta ng ib le a sse ts pe r sha re (RM) 2.69 2.44 * Annualised GROUP F I NANCE & PL ANNI NG Pag e 13

SE L E CT E D F INANCIAL HOL DING CONGL OME RAT E S - ROE RE T URN ON E QUIT Y - PAT 22% 20.6% 20% 18% 16.4% 16.1% 16% 15.2% 15.2% 14.5% 14.8% 14% 13.7% 12% 10.4% 10.3% 11.4% 10% 9.9% 9.2% 8% 8.5% 6% De c 13 De c 14 De c 15 De c 16 Ma r 17 E xc luding BHB Gro up, the o the r financ ial c o ng lo me rate s o pe rate b o th I slamic and c o nve ntio nal b anking o pe ratio ns Pag e 14 GROUP F I NANCE & PL ANNI NG

F INANCIAL HOL DING CONGL OME RAT E S – SNAPSHOT @ 30 JUNE 2017 Pag e 15 GROUP F I NANCE & PL ANNI NG

Pag e 16 GROUP F I NANCE & PL ANNI NG

KE Y F INANCIAL HIGHL IGHT S 1H F Y2016 1H F Y2017 PBZT RM360.1 m RM367.0 m As a t De c 16 June 17 Ne t fina nc ing RM39.2 b RM40.5 b Gro ss impa ire d ra tio 0.98% 1.02% Ne t impa ire d ra tio -0.75% -0.62% F ina nc ing to de po sit ra tio (F DR) 78.5% 83.9% F ina nc ing to fund ra tio (F T F ) 77.3% 82.5% F ina nc ing to fund a nd e q uity ra tio (F T F E ) 72.3% 74.2% Ne t inc o me ma rg in 2.74% 2.57% Co st inc o me ra tio 52.6% 54.1% Pag e 17 GROUP F I NANCE & PL ANNI NG

PROF IT CONT INUE S T O GROW Pr ofit be for e zakat and tax 720.4 701.2 685.1 1.9% 367.0 RM millio n 360.1 Net fund based income ↑ 3.3% F Y 2014 F Y 2015 F Y 2016 1H 2017 Pag e 18 GROUP F I NANCE & PL ANNI NG

NE T INCOME MARGIN T RE ND – COMPRE SSION 2.77% 2.77% 2.74% 2.60% 2.57% Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 GROUP F I NANCE & PL ANNI NG Pag e 19

ROBUST F INANCING GROWT H Ne t F ina nc ing vs. Dec 16 ↑ RM1.3 b Growth 3.4% vs. Jun 16 ↑ RM4.2 b Growth 11.5% 40,504 39,189 34,295 June 16 29,525 36,332 RM million De c 14 De c 15 De c 16 June 17 GROUP F I NANCE & PL ANNI NG Pag e 20

GROSS F INANCING – DRIVE N MAINL Y BY CONSUME R Comme r c ial Consume r RM million ↑ 0.4% RM million ↑ 4.7% 5,633 5,608 4,787 June 16 4,116 30,333 4,968 3,206 28,959 25,634 June 16 De c 13 De c 14 De c 15 De c 16 June 17 27,200 22,357 Cor por ate RM million ↓ 0.9% 18,238 4,965 5,011 4,301 June 16 3,518 4,605 2,632 De c 13 De c 14 De c 15 De c 16 June 17 De c 13 De c 14 De c 15 De c 16 June 17 GROUP F I NANCE & PL ANNI NG Pag e 21

CONSUME R F INANCING DRIVE N MAINL Y BY HOUSE F INANCING 20,000 ↑ 7.3% ↑ 3.6% 15,000 10,000 ↓ 3.7% 5,000 0 Ho use Pe rso na l Ve hic le Cre dit Ca rd Ar-Ra hnu F ina nc ing F ina nc ing F ina nc ing De c 15 12,138 10,387 2,592 443 74 June 16 13,448 10,707 2,524 445 76 De c 16 14,675 11,299 2,440 459 85 June 17 15,752 11,701 2,351 447 82 GROUP F I NANCE & PL ANNI NG Pag e 22

GROSS F INANCING : SE CURE D VS UNSE CURE D & F IXE D VS F L OAT ING ina nc ing # Gross F Gross F ina nc ing Se c ure d vs. Unse c ure d F ixe d vs. F loa ting 55% 86% 87% 54% 52% 82% 48% 46% 45% 18% 14% 13% Dec 15 Dec 16 June 17 Dec 15 Dec 16 June 17 Fixed Floating Secured Unsecured # excludes Corporate Banking GROUP F I NANCE & PL ANNI NG Pag e 23

F INANCING – VUL NE RABL E SE CT ORS Dec 16 June 17 Gross Gross As % of As % to As % of As % to Impaired Impaired Impaired Impaired Amount Corp & Gross Amount Corp & Gross Financing Financing Financing Financing Comm Financing Comm Financing Ratio Ratio RM million Plantation 747.4 7.0% 1.9% - 0.0% 688.3 6.5% 1.7% - 0.0% Real Estate 1,205.7 11.4% 3.0% - 0.0% 1,392.1 13.1% 3.4% 1.5 0.1% 373.2 3.5% 0.9% 34.0 9.1% Oil & Gas 443.7 4.2% 1.1% 34.8 7.9% Total Corporate 10,619.4 10,597.6 & Commercial Total Gross 39,872.4 41,176.6 Financing Pag e 24 GROUP F I NANCE & PL ANNI NG

E XPOSURE T O OIL & GAS INDUST RY T RE ND 3,272 Total Exposure 3,537 3,597 3,594 RM million Dec 15 June 16 Dec 16 June 17 Corporate & Commercial 457 498 444 373 Consumer (under Package Financing) 2,815 3,039 3,153 3,221 % Total Exposure to Gross Financing 9.36% 9.55% 9.02% 8.73% of which Impaired Financing – amount 3 44 58 54 Gross impaired ratio 0.09% 1.26% 1.61% 1.49% Pag e 25 GROUP F I NANCE & PL ANNI NG