Financial Results 1 st Quarter FP2011 ended 30 September 2011 Analyst Briefing 14 November 2011
Executive Summary Financial Performance Business Review Business Review Country Review Economic Update and Prospects 1
Key Highlights � PATAMI for 1QFP11 grew 25.1% YoY and 11.4% QoQ to RM1.29 billion supported by strong revenue and pre-tax profit growth from all business segments. � R � Revenue grew 17.6% as almost all business segments recorded double digit revenue 6 l t ll b i t d d d bl di it growth. � QoQ revenue declined 2.7% due to RM321.1m year end transfer of actuarial surplus to insurance income in 4QFY11. Normalised, QoQ revenue would be an increase of 6.3% . insurance income in 4QFY11 Normalised QoQ revenue would be an increase of 6 3% � Allowance for losses on loans declined 62.7% YoY to RM98.7m due to better asset quality and higher bad debts recovery mainly from GWB’s Corporate Banking, CFS’s Business Banking and SME and Singapore Banking and SME, and Singapore. � Group loans grew 17.6% on an annualised basis contributed by overseas loans growth of 41.4% with growth in Singapore of 41.0% and Indonesia of 26.6%. Domestic loans grew 7 2% YoY driven by 17 4% growth in mortgage 7.2% YoY driven by 17.4% growth in mortgage. � Capitalisation remains healthy with Risk Weighted Capital Ratio at 14.86% and Core Capital Ratio at 10.83% at Group level and 13.58% at Bank level. � KPI achievement: Return on Equity of 15.8% was higher than FY11’s ROE of 15.2% and on track to achieve FP11’s ROE of 16.0%. Loans and Debt Securities growth of 20.5% was well ahead of the target of 12.0%. 2
Key Performance Indicators for 1Q FP11 Headline KPIs Target 1Q FP11 achievements Return on Equity 16% 15.8% (annualised) Financial Assets Growth 12% 20.5% (annualised) Other targets Target 1Q FP11 achievements Group Loans Growth 12% 17.6% • Malaysia 12% 7.2% • Singapore 8% 41.0% • BII 24% 26.6% Group Deposits Growth 14% 14.9% Risk Weighted Capital Ratio (RWCR) Risk Weighted Capital Ratio (RWCR) > 12% > 12% 14 86% 14.86% Note: Loans growth for Singapore and BII are in their local currencies 3
Executive Summary Financial Performance Business Review Business Review Country Review Economic Update and Prospects 4
1Q FP11 PATAMI rose 25.1% YoY to RM1.29 billion Quarter 1Q FP11 4Q FY11 1Q FY11 QoQ YoY Change Change 30 Sep 11 30 Jun 11 30 Sep 10 Net interest income 1,873.6 1,826.7 2.6% 1,774.5 5.6% Net Fund based income (Islamic Banking) 438.5 365.4 20.0% 294.2 49.0% Total net fund based income 2,312.1 2,192.1 5.5% 2,068.7 11.8% Net income from insurance business* 96.5 345.4 -72.1% 86.8 11.2% Non-interest income 1,222.7 1,196.7 2.2% 954.2 28.1% Fee based income (Islamic Banking) 77.8 77.6 0.3% 44.0 76.8% Total fee-based income 1,300.5 1,274.3 2.1% 998.2 30.3% Net income 3,709.1 3,811.8 -2.7% 3,153.7 17.6% Overhead expenses p (1,887.9) ( ) (1,962.1) ( ) -3.8% (1,502.1) ( ) 25.7% Operating Profit before allowances for 1,821.3 1,849.7 -1.5% 1,651.6 10.3% losses on loans Allowance for losses on loans (98.7) (47.7) 106.9% (264.7) -62.7% Impairment losses on securities, net 1.0 (114.0) -100.9% (13.9) -107.3% Operating Profit O ti P fit 1 723 5 1,723.5 1 688 0 1,688.0 2 1% 2.1% 1,373.0 1 373 0 25 5% 25.5% Share of profits in associates 36.5 40.5 -9.9% 31.4 16.5% Profit before taxation and zakat 1,760.0 1,728.5 1.8% 1,404.3 25.3% Taxation & Zakat (454.2) (475.3) -4.4% (350.7) 29.5% Minority Interest Mi it I t t (19.5) (19 5) (98 9) (98.9) -80.3% 80 3% (25 5) (25.5) -23.7% 23 7% Profit after Tax and Minority Interest 1,286.4 1,154.3 11.4% 1,028.1 25.1% (PATAMI) EPS (sen) 17.20 15.54 10.7% 14.53 18.4% *net of insurance claims 5
Strong Balance Sheet: Total Assets grew 18.1% annualised Annualised YoY RM billion Sep 11 Jun 11 Sep 10 Growth Growth Cash and short ‐ term funds 40.7 38.8 20.0% 27.1 50.2% Deposits with financial institutions 6.1 10.3 ‐ 164.8% 15.7 ‐ 61.6% Securities purchased under resale agreements 0.1 ‐ ‐ 0.2 ‐ 61.9% Securities portfolio 66.0 61.0 32.8% 58.7 12.4% Loans and advances Loans and advances 265 3 265.3 254 0 254.0 17 9% 17.9% 206.8 206 8 28.3% 28 3% Life, general takaful and family takaful fund assets 19.4 19.2 3.6% 18.3 6.1% Other assets 33.0 28.7 60.5% 20.3 62.4% Total Assets 430.6 412.0 18.1% 347.1 24.0% Deposits from customers D it f t 293 3 293.3 282 0 282.0 16 0% 16.0% 237 0 237.0 23 8% 23.8% Deposits and placements of banks and FI 36.1 33.3 33.2% 31.9 13.0% Borrowings 6.3 5.4 65.0% 3.3 91.4% Subordinated debts 13.0 10.8 80.9% 8.0 61.8% Capital Securities 6.1 6.1 1.4% 6.0 2.4% Insurance & Takaful liabilities & policyholders' funds 19.4 19.2 3.6% 18.3 6.1% Other liabilities 22.2 22.6 ‐ 8.0% 13.5 64.2% Total Liabilities 396.4 379.5 17.8% 318.0 24.6% Shareholders Funds 33.0 31.5 19.3% 28.3 16.5% Total Liabilities and Equity 430.6 412.0 18.1% 347.1 24.0% Loan ‐ to ‐ deposit Ratio 90.5% 90.1% 87.3% 6
Gross loans grew 17.6% annualised Group loans growth driven by strong overseas loans growth of 41.4% with Singapore at 41.0% and BII at 26.6%. Domestically, loans grew 7.2% annualised and 18.7% YoY. Annualised YoY RM billion Sep 11 Jun 11 Sep 10 Growth Growth Community Financial Services 115.2 112.5 105.7 9.4% 9.0% Consumer 90.6 87.9 78.4 12.7% 15.6% Total Mortgage 40.3 38.6 35.2 17.4% 14.3% Auto Finance 26.6 26.0 23.3 9.7% 14.2% Credit Cards 5.0 4.9 4.2 9.8% 20.2% Unit Trust 17.5 17.1 14.2 8.4% 22.7% Other Retail Loans 1.3 1.3 1.5 ‐ 1.0% ‐ 14.4% Business Banking + SME 24.6 24.7 27.2 ‐ 2.2% ‐ 9.9% GWB (Corporate) (Malaysia) 57.9 57.4 40.1 3.2% 44.2% Total Domestic 173.2 170.1 146.0 7.2% 18.7% International 98.7 89.4 70.3 41.4% 40.4% Singapore (SGD'bn) 24.3 22.1 17.8 41.0% 37.0% BII (Rupiah'tril) 62.0 58.1 50.8 26.6% 21.9% Others 16.8 14.7 11.1 56.9% 51.7% Investment Banking 1.9 2.0 0.2 ‐ 27.3% 1076.6% Gross Loans 273.7 261.5 216.4 17.6% 26.5% 7
Deposits grew 14.9% annualised Deposits grew by 14.9% annualised driven mainly by Singapore (+36.5%) and Malaysia (+11.6%). i b li d d i i l b Si ( 6 ) d l i ( 6 ) Malaysia Singapore BII Group Annualised Annualised Rupiah Tril Annualised Annualised RM bil SGD bil RM bil Growth Growth Growth Growth Growth Growth Growth Growth Fixed Deposits 82.5 ‐ 3.2% 18.9 43.2% 41.2 20.0% 157.7 13.7% Savings Deposits 32.0 8.7% 2.8 4.4% 14.8 3.5% 45.0 8.7% Current Accounts 50.7 31.9% 2.6 11.9% 10.8 ‐ 44.0% 60.6 16.5% Others Others 27.1 27 1 26.1% 26 1% 0.5 0 5 132.0% 132 0% ‐ ‐ ‐ ‐ 28 4 28.4 29 8% 29.8% Total Deposits 192.4 11.6% 24.8 36.5% 66.7 4.6% 293.3 14.9%* Low cost funds (CASA) 42.8% 21.7% 38.3% 36.0% 86.1% 97.4% 91.0% 90.5% LD Ratio * Normalised to exclude exchange rate fluctuation * Normalised to exclude exchange rate fluctuation Loans-to-Deposit Ratio Malaysia Malaysia Singapore Singapore BII BII Group Group 97.4% 96.4% 90.5% 90.1% 89.2% 91.0% 88.8% 91.3% 87.7% 87 4% 87.4% 88 1% 88.1% 86.8% 86 8% 86.1% 86.3% 81.2% 80.9% Jun 09 Jun 10 Jun 11 Sep 11 Jun 09 Jun 10 Jun 11 Sep 11 Jun 09 Jun 10 Jun 11 Sep 11 Jun 09 Jun 10 Jun 11 Sep 11 8
Asset Quality improved YoY with loan loss declining by 62.7% to RM98.7 million and Net Impaired Loan ratio declining to 2.19% Allowance for losses on loans Net Impaired Loan Ratio 2.99% 264.7 2.83% 2.74% ‐ 62.7% YoY +107.0% QoQ 2.39% 117.5 2.25% 98.7 2.18% 2.18% 72.2 47.7 1Q11 2Q11 3Q11 4Q11 1Q FP11 Day 1 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 1 Jul 10 9
Non-Interest Income including Net Income from Insurance Business and Fee Income from Islamic operations grew 28.7% YoY to RM1.40 billion +28 1% +28.1% 1,223 1Q FY11 1Q FP11 +46 1% +46.1% 954 860 RM million 588 ‐ 262.7% +5814.2% +186.4% + 73.5% +69.2% +11.2% 299 235 235 186 139 132 96.5 86.8 78.6 46 45.3 (5) (303) Total non ‐ interest Commission, Investment & Unrealised Foreign Exchange Other Income Net income from Fee income from income service charges Trading Income gain/(losses) on profit Insurance Islamic Operations and fees securities & Business derivatives 10
Overheads grew 25.7% YoY but declined by 3.8% QoQ Admin, general expenses & fees & brokerage 1Q FP11 Marketing Expenses Overhead Expenses QoQ YoY IT Expenses Personnel costs ‐ 0.9% 23.1% +25.7% YoY +25.7% YoY Personnel costs IT Expenses ‐ 18.2% 18.6% Marketing Expenses ‐ 26.3% 11.3% ‐ 3.8% QoQ Admin, general expenses ‐ 0.2% 34.6% 1,962.1 1 962 1 & fees & brokerage & fees & brokerage 1,887.9 Total ‐ 3.8% 25.7% 634.8 1,502.1 633.7 Overhead expenses rose 25 7% due to higher Overhead expenses rose 25.7% due to higher personnel cost of 23.1% attributed to 470.9 131.8 consolidation of Kim Eng and higher ESOS million 97.2 charge. 161.2 131.9 87 3 87.3 RM 111.2 As a result, the Group Cost to Income Ratio (CIR) rose to 50.4% from 47.6% in the corresponding period. 1,034.3 1,025.1 832.7 1Q FY11 4Q FY11 1Q FP11 11
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