9MFY2016 Results, Investor Presentation...Investor Presentation 26 February 2016 Your Bank....
Transcript of 9MFY2016 Results, Investor Presentation...Investor Presentation 26 February 2016 Your Bank....
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9MFY2016 Results,
Investor Presentation 26 February 2016
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AmBank . 9MFY2016 Results Investor Presentation
Retail Banking
Enhance customer service
rhythm, build sustainable
growth
Wholesale Banking
Recognition by our customers as
their preferred top tier Malaysian
Bank
General Insurance
To be the most trusted insurer in
Malaysia
Islamic Banking
To be known as the Islamic Bank which prospers
with society
Life & Family Takaful
To be a leading customer centric
and modern insurer in Malaysia
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AmBank . 9MFY2016 Results Investor Presentation
Strategic Agenda Highlights update
3
Deliver on focused organic growth
Retail Targeted segment play - Continue to focus on growing CASA through payroll
acquisitions, SBB, Priority Banking and leveraging on partners (merchants & dealers)
- Support mortgage growth by strengthening strategic partnerships and emphasis on secondary market
- Focus on new business partnerships
Wholesale Grow customer share of wallet - Focus on SME segments with new strategy &
business structure - On-going collaboration with CGC and Islamic CGC
facility to be launched - Cross -selling of high flow FX, trade finance and cash
management business with additional value propositions for customers
General insurance Grow share in non -motor - Launched AmDrive Plus in Q3 which covers 24 hour
emergency towing and minor roadside repairs
Leverage strategic partnerships & deliver on acquisition
General insurance (acquisition of Kurnia ) - Leveraging on dynamic agency force - Focus on growing non -motor insurance through
product bundling, cross -selling to existing motor customer base and via Banca channels
Life assurance and family takaful (MetLife) - Rebuilding agency force, infrastructure and enhance
banca channel capabilities
Merchant and cards issuance business (MBf Cards) - Developing and expanding small business solutions
(e .g. current account, lending facilities, merchant facilities) to increase our product penetration
Continue to optimize efficiency
Upgrading of collection & recovery system to increase productivity and sustain asset quality
Process simplification initiatives across all line of business to deliver better customer experience
General Insurance is strengthening retention capabilities via review of renewal process, KPIs and behaviour /needs
Build sustainability
Phase 2 of core banking project completed, which will progressively improve experience and productivity
Infrastructure modernisation programmes to improve security, reliability and efficiency of Group data centre
Developing pricing and service differentiation capabilities in preparation for de- tariffication of general insurance business
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AmBank . 9MFY2016 Results Investor Presentation
Headline results
Lower inflow of NPLs, asset
quality remains good
Subdued economy, with
some headwinds
Income impacted by
NIM compression
Loan growth predominantly
mortgages
Balancing expenses between
efficiency & growth
expenditure
9MFY16 Reported
9MFY16 Underlying 1
YoY growth (Underlying)
Total income
2,791.3 2,791.3 -13 .1%
Expenses 1,553.7 1,500.0 2.3%
Profit before allowances
1,237.6 1,291.3 -23 .0%
Allowances -151.6 -151.6 >100%
PATMI 1,022.2 1,075.9 -9.0%
Sustaining focus on low cost deposits
Lower performance in
Q3
1. 9MFY16 adjusted for regulatory penalty of RM53.7 mil
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AmBank . 9MFY2016 Results Investor Presentation
Performance indicators
Q3FY16 Reported
9MFY16 Reported
FY16 Guidance
PATMI - - Growth (%)
300.2
-21.5% 1
1,022.2 -27.0% 2
1,300
ROE 8.0% 9.2% Circa ~ 9.0%
CTI 63.5% / 57.5% 3 55.7% / 53.7% 3
Gross impaired loans ratio 1.80%
Dividend 5.0 sen per share 40 45% payout
Other details:
Gross loan growth - Excluding Auto Finance
-0.7% 4
2.1% 4 -1% 1%
CASA composition 20.4%
Capital ratios, Proforma 5
- CET 1 - Tier 1 - Total
11.1% 6 12.3% 6
16.4% 6
Note: 1. QoQ growth 2. YoY growth 3. CTI excluding regulatory penalty incurred in Q3FY16 4. YoY growth 5. Based on Aggregated Banking Entities 6. Proforma , based on Retained Earnings @ 31 Dec 2015
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AmBank . 9MFY2016 Results Investor Presentation
New Group CEO
AmBank Group
AmBank (M) Berhad
AmInvestment Bank Berhad
AmBank Islamic Berhad
AmGeneral Insurance Berhad
AmMetLife Insurance Berhad
AmMetLife Takaful Berhad
Background :
Dato Sulaiman who was appointed on 23 November 2015 has a wealth of knowledge backed by a total of 28 years of experience being in the forefront of growth in commercial/corporate and consumer banking and transformational programmes .
An accounting graduate from the Royal Melbourne Institute of Technology in Australia, Sulaiman served PriceWaterhouse before repositioning his career in banking with the Bank of Commerce (M) Berhad in 1987 .
Prior to joining AmBank Group , he was previously Chief Executive Officer/Executive Director of CIMB Bank Berhad, where he spearheaded the overall development, management and performance of the sales and distribution channels of the bank . In addition, he was responsible for the management of the Retail Banking in Singapore and Cambodia, and chaired several Management Committees .
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AmBank . 9MFY2016 Results Investor Presentation
Group CEO, Initial Action Plans
Getting to know customers and its people via business review sessions with senior management and their respective teams
Focus on building the performance of AmBank Group by pursuing immediate opportunities to drive revenue uplift , be more customer focused and enhance collaborative work across the Group
Create a leaner and simpler organization through process reorganization and structural reform whilst reinforcing compliance
Focus on quick wins including (1) SME & Corporate ; (2) Deposits and (3) Retail value propositions and some bright spots in the economy
Initiated comprehensive review of our current business operating models to develop our FY17 -19 strategic priorities and new growth plans
Engage external stakeholders
23 Nov 15
Appointment as Group CEO
Jan
Formulate FY17 -19 strategies & business plans
FY16 results and communicate
FY17-19 business plans & targets
7
onwards
Initated Business Reviews
Activated quick wins programme
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AmBank . 9MFY2016 Results Investor Presentation
2.6%
87.1
63.8
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2010 2011 2012 2013 2014 2015
CPIBusiness Conditions IndexConsumer Sentiment Index
97
62 80
111 112 109 99
52
- 4.8
- 7.0 - 5.6 - 4.8 - 4.5 - 3.9
- 3.4 - 3.2
3.33 3.52 3.22 3.06 3.09 3.15 3.27 4.29
2008 2009 2010 2011 2012 2013 2014 2015*
Avg Crude Oil Price/Barrel (US$)
Fiscal Deficit (%)
Avg USDMYR
Headwinds in the domestic economy
Fiscal Deficit vs Avg Oil Price & Exchange Rate
Performance of Financial Indices 2010 - 2015
Crude oil price dropped to a 12 year low, driving revision to 2016 Budget to maintain national fiscal deficit target at 3.1% of GDP
Budget allocation reduced by 1.7% YoY to RM256 .2B stemming from allocation reduction for development & operating expenditure . USD strength vs MYR is exerting stress on BNM foreign exchange reserves . Low oil prices, GST implementation , ringgit depreciation and rise in cost of living has impacted sentiment (inflationary)
The recent 50 bps SRR cut by BNM provides some breathing space to the household sector . Optional 3% cut in employee EPF contribution aims to spur private consumption expenditure . GDP likely to bottom out in 3Q2016 or 4Q2016 . We project a moderate growth of 4.25 % for 2016
Growth will be supported by domestic demand (rebounded in 4Q15 ), namely private and public expenditure, complemented by exports .
Foreign Exchange Reserves (USD' bil ) 2011 - 2015
Source: Bank Negara Malaysia Source: Bank Negara Malaysia, *Internal resource as at 31 Dec
Source: Bank Negara Malaysia, MIER
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AmBank . 9MFY2016 Results Investor Presentation
51.4%
48.2%
49.4%
48.5%
2012 2013 2014 2015
2016, anticipating slower pace for the banking sector
Loan Approval Rate in the Malaysian Banking Sector
Source: Bank Negara Malaysia
Net Interest Margin (NIM) Compression Across the Industry
Source: Industry Data Annual Report
Asset Quality of Banks
Source: Bank Negara Malaysia
10.6%
9.1% 9.5%
10.6% 10.2%
9.3% 9.0%
9.3% 9.2% 9.1% 9.7% 7.9%
11.5% 11.8%
12.9% 10.2%
6.7%
3.6%
0.4%
-1.4% -1.1% -2.0%
-5.0%
-6.4%
Mar 13Jun 13Sep 13Dec 13Mar 14Jun 14Sep 14Dec 14Mar 15Jun 15Sep 15Dec 15
Loans Deposits
Industry loans and deposit¹ downward trend
Source: Bank Negara 1. Deposits refers to core deposits only
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883 1,004
1,108 1,226
1,340 1,445
3.4%
2.7%
2.0% 1.9%
1.7% 1.6%
Dec Dec Dec Dec Dec Dec
2010 2011 2012 2013 2014 2015
Total Loans (RM' bil) GIL
2.07%
1.97%1.89%
1.76%1.72%
2012 2013 2014 2015 2016
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2016... selected bright spots & opportunities
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Despite easing of banking sector growth numbers at the back of a slower but
stable economic growth, with NIM and fee income remaining subdued, key
financial and credit metrics of the banking industry continue to hold up well,
reflecting a stable financial sector .
Malaysian SME sector:
Consistently outpaced the economy as a whole, and still has room for growth (SME GDP growth has consistently outpaced overall GDP growth since 2005)
SMEs continue to receive active government support and benefits from investment inflows from foreign countries
Retail/Domestic consumption, supported by:
Reduction of EPF contribution by 3%
Liberalise control on APs of 8 agricultural produce
Increase in fair price shops, minimum wage, tax reliefs, etc. should sustain private consumption, given the stable wage growth and labor market conditions
Crystalising mega projects with focus in transportation projects, including development of public transportation, highways, public and rural infrastructure
Ongoing government land & strategic property developments and affordable housing
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AmBank . 9MFY2016 Results Investor Presentation
536.9 445.8 416.6 519.2 339.5 382.5 300.2
16.0% 12.7% 11.8%
15.1%
9.3% 10.2%
8.0%
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16
PATMI Reported ROE
95.1 94.8 99.8 102.8 99.8 99.7 103.2
90.0% 89.3% 85.9% 83.8% 84.3% 85.6% 82.8%
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16
Customer deposits Adjusted LDR ratio
1. Customer deposits include stable funding sources
Q3 performance lower
Cost - to - income ratio and expense growth (%) Customer deposits 1 bil ) and LDR ratio (%)
ROE (%)
61.0 60.6 62.4 63.5 61.9 63.5 63.8
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16
Loans excluding Auto Finance Total
QoQ growth: 0.1% QoQ growth excluding Auto : 0.53% YoY growth: -0.4%
PATMI QoQ growth: -21.5%, -7.5% underlying ROE QoQ growth: -2.2%, -0.7% underlying
85.6 84.7 86.2 85.7 84.1 85.3
Net lending bil )
85.4
Customer deposits QoQ growth : 3.5%
57.5%
11
57.5%
QoQ CTI change : 10.1%, 4.1% underlying Expense growth change: 11.0%, 0.2% underlying
42.8% 44.0% 49.2% 47.9% 50.5%
53.4%
63.5%
30.3%
-21.1%
0.3% 7.3%
-8.5%
2.5%
13.5%
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16
CTI % Expenses growth %
Underlying ROE is 9.5%
Underlying PATMI is
RM353.9m
Underlying growth is
2.7%
Underlying CTI is 57.5%
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AmBank . 9MFY2016 Results Investor Presentation
1,343 1,484 1,621 1,782 1,919
1,399
13.6% 13.8% 13.9% 14.1%
13.8% 13.5%
9.2%
FY11 FY12 FY13 FY14 FY15 9MFY15 9MFY16
PATMI
ROE
44.7
49.6 54.0
59.3 63.8 62.0
45.4
FY11 FY12 FY13 FY14 FY15 9MFY15 9MFY16
CAGR FY11-15: 9.3% YoY growth: -26.8%
RM ( sen ), annualised
9MFY2016 results reflect subdued operating environment
- interest income (%)
EPS (basic ) ROA (%)
& ROE (%)
ROE CAGR FY11-15: 0.1 % YoY growth: 4.3%, -3.8% underlying
PATMI CAGR FY11-15: 5.1% YoY growth: -27.0%, -9% underlying
1.39% 1.39% 1.37%
1.45%
1.60% 1.56%
1.08%
FY11 FY12 FY13 FY14 FY15 9MFY15 9MFY16
CAGR FY11-15: 0.05% YoY growth: -0.48%
3,926 4,306 4,379 4,743
4,263 3,612
2,791
30% 34% 31% 34% 41% 42%
35%
FY11 FY12 FY13 FY14 FY15 9MFY15 9MFY16
Total income (reported)
Non-interest income %
CAGR FY11-15: 2.1% YoY growth: -23%
1,022
12
Underlying PATMI is
RM1,076m
Underlying ROE is 9.7%
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AmBank . 9MFY2016 Results Investor Presentation
3,612.4 3,213.2
2,855.6 2,791.3 2,791.3
399.2 288.8
23.2 22.8 22.8 28.0 36.3
9MFY15reported
Divestmentgain
9MFY15underlying
Net interest Credit cardfees
Asset,wealth
mgmt &brokerage
WB fee Markets Insurancepremium
9MFY16reported
Better retail contribution , margin compression persists
Retail
Banking
34%
Wholesale
Banking
59%
Insurance
12%
Operating
-5%
PATMI ( ) and divisional contribution (%) NIM Movement
Top line performance influenced by:
- NIM compression: driven by softer market and focus on better asset quality segments
- Investment banking: impacted by weaker brokerage volumes
- Insurance income: lower on higher general claims experience and slower national car sales
-16%
14%
1,399.4
1,022.2
9MFY15 9MFY16
Reported Reported
27%
-42%
-17.2 % YoY growth
-25.9 % -11.3 % -27.6% -11.1 %
-13.1%
-22.7 %
Total income ( )
Total fee income: 9MFY15 RM533m 9MFY16 RM454m Non - interest income: 9MFY15* RM1,109m / 34.5% 9MFY16 RM975m / 34.9% * Underlying
QoQ FY15 vs 9MFY16
NIM Driver
Portfolio rebalancing -7 -9
Asset re -pricing -7 -13
Deposits/Funding -4 -9
Underlying movement -18 -31
One-offs - -6
NIM movement - 18 - 37
-13.6%
>100%
13
Underlying PATMI is
RM1,076m
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AmBank . 9MFY2016 Results Investor Presentation
87.5
86.9
0.1 0.0
1.9 1.9
0.2
0.5
9MFY15 Corporatebanking
Investmentbanking
Mortgage Autofinance
Cards Others 9MFY16
Targeted loans growth in preferred segments
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Auto Finance
25%
Mortgage 23%
Cards 2%
Corp & Comm
Banking 45%
Investment Banking
2%
Others 3%
bil ) Loan composition by type
Greater sales focus and relationship management to drive loans growth
Focus in preferred segments lifted mortgage (+10.7%) and wholesale banking loans (+0.3%)
A balanced portfolio composition with retail 53% and non - retail loans 47%
48.1 47.6 46.8 46.3 45.9 45.8 46.0
39.5 39.0 40.7 41.5 39.8 41.0 40.9
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Retail Non-retail
86.8 85.7 87.8 87.5 86.6
2.7% -8.0% 10.7% YoY growth -10.5% -0.7% -17.0%
Breakdown by rate sensitivity: Fixed rate 35% Variable rate 65%
Breakdown by concept: Islamic 32% Conventional 68 %
QoQ Total growth: 0.1% Retail growth : 0.4% Non -retail growth : -0.2 %
Total retail/non - retail 53% - 47%
bil )
2.1% Excluding Auto Finance
Retail loans: YoY growth: -1.7% YoY growth excluding Auto Finance: 4.9%
86.9 87.6
Non -retail
Retail
0.2%
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AmBank . 9MFY2016 Results Investor Presentation
4.8%
4.3% 4.3% 4.6% 4.6%
4.2% 4.4% 4.3% 4.3% 4.4% 4.3%
Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15
Industry - CASA AmBank Grp Mkt Share
Sustaining focus on low cost deposits (CASA)
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CASA market share and industry CASA balance 1
bil ) bil )
CASA composition sustained through active relationship management and payroll acquisition programmes
CASA balance and market share relatively flat QoQ; industrytrending down in 2015
18.8 17.1 18.5 18.7 18.8 18.8 18.5
86.9 85.3 90.0
92.1 89.8 89.3 90.9
21.6% 20.1% 20.5% 20.3% 21.0% 21.1% 20.4%
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Customer deposits CASA CASA Composition (%)
39.7 37.2 40.6 42.0 39.9 39.6 41.6
34.7 35.6 35.8 35.6 35.5 35.2 35.2
13.1 13.4 13.8 14.4 14.4 14.2 14.1
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Biz Ent Individuals Govt & Others
89.3 90.9 89.8 92.1 90.0 85.3
1. Source: BNM Monthly Statistics
QoQ growth : 1.8%
bil )
86.9
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AmBank . 9MFY2016 Results Investor Presentation
28.9
(124.5)
8.8
158.4
0.2
(14.0)
-0.50%
0.50%
1.50%
Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15
AmBank
Asset quality remains good, allowances lower
16
Credit costs ( annualised ) vs. industry 1
Credit costs improved further in the 3Q
GIL ratio improved to 1.80% from 1.95% rising loan
defaults
Adequate coverage based on current servicing assessment discounted with internal buffers on seasonal impacts
1. An average of eight peer domestic banks
AmBank Group
FY12 FY13 FY14 FY15 9MFY15 9MFY16
Credit cost 0.50% 0.21% 0.08% -0.04% 0.04% -0.19%
9MFY15 Individual Allowance
Collective Allowance
Recoveries Others 9MFY16
Gross impaired loans ratios
2.51% 2.43% 2.17%
2.01%
1.95%
1.91% 1.74%
1.08% 0.98%
1.53% 1.55% 1.63%
2.00%
1.86%
1.87% 1.79%
1.88% 1.79%
1.80% 1.95%
1.80%
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Retail Wholesale Group
Credit costs tracking
below industry
Consists of loan loss allowances only. Sharp
spike due to lower recoveries from WB
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AmBank . 9MFY2016 Results Investor Presentation
1,625.2 1,535.4 1,446.1 1,500.0
1,553.7
41.2 12.7 53.7
89.8 49.3
9.2 30.8
35.0%
40.0%
45.0%
50.0%
55.0%
Ma
r-08
Ma
r-09
Ma
r-10
Ma
r-11
Ma
r-12
Ma
r-13
Ma
r-14
Ma
r-15
Continued emphasis on cost discipline
17
Business growth:
Bank -wide data centre upgrade
Enhancement of Cash Management System for Transaction Banking
Replacement of Collection & Recovery System
Enhancement of infrastructure to support digital banking
Consolidate and enhance multi -channel payment switch
Enhancement of Murex Commodities module
Regulatory and compliance (systems & process enhancement)
credit card chip
prevent ATM malware attack
adopt MFRS 9
adopt Basel AIRB
prevent fraud for internet and mobile banking
Compliance systems
Cost - to - income ratio vs. industry 1
Key capital expenditure planned for FY16/FY17
Balancing between BAU expenses and
strategic agenda
Slowing income growth has seen an increase in CTI ratio in spite of the
Task force set up to focus on creating leaner organization through process reorganization and structural reform
1. An average of eight peer domestic banks
AmBank Group
Industry
4.4%
CTI ratio: 9MFY15 45.0% 9MFY16 55.7%
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AmBank . 9MFY2016 Results Investor Presentation
FY07 FY10 FY13 FY15 9MFY16 Industry
Ave
Equity & debt capital
10% 15% 14% 15% 23% 15%
Customer deposits
60% 77% 75% 74% 72% 73%
Term funding & loans with recourse >1year
4% 2% 7% 8% 9%
5% Term funding & loans with recourse 100 % for all banking entities
Higher composition of stable medium term funding vis -à-vis industry, creates stability though weighs on cost of funds
Whilst capital ratios remain adequate, the Group is reviewing long term capital plans and structure (Basel III FHC @ FY2020 )
Basel III FHC indicative ratios as at 31 December 2015 (no requirements until FY2020 ) CET 1: 9.3%
81%
13%
5%
1%
< 6 mth
6-12 mth
1-3 yr
3-5 yr
6%
94%
< 1 yr > 1 yr
Deposits from customers and Banks & FIs Term funding & Debt capital
9.3% 9.7% 10.5% 11.1%
9.8% 10.4%
11.0% 11.2% 11.8% 12.3%
14.0% 14.7% 14.8% 15.5%
15.8% 16.4%
FY11 FY12 FY13 FY14 FY15 9MFY16Proforma
RWCAR/Total Capital RatioTier 1 CAR CET 1 Ratio
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AmBank . 9MFY2016 Results Investor Presentation
Market Share As At 31 Dec 15 (%)
Rank
DCM 17.9% 3
M&A League 6.1% 5
MYR Islamic Bonds 13.8% 4
FUM1 10.9% 3
Wholesale Banking, subdued activities in loans & capital markets
QoQ
Net loan disbursement (RM) movement League table
QoQ, income higher as fixed income trading picked up, offset by lower recoveries and weaker loans momentum
Capital markets fund raising better in 3Q
Decline in corporate loans driven by lower refinancing needs in oil and gas and lower growth in other sectors
Key Priorities:
SME enhance value proposition, structure and turnaround time
Cross -Sell & Efficiency optimize cross functional and value chain synergy, covering structure, people , processes, risk and digital strategy
Funding reposition funding composition to optimize returns
216.4 260.9 241.3 268.8 191.5 233.1 180.9
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
1. FUM data consists of unit trust funds only
1. Net movement equals to disbursement less repayment
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Disbursement
Net movement
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QoQ growth: -22.42 %
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AmBank . 9MFY2016 Results Investor Presentation
Retail Banking, focus is on main bank relationships & CASA
QoQ
Mortgage and auto finance disbursement QoQ bil )
QoQ deposit balance ( )
PAT growth of 13.8% YoY reflecting improvement in asset quality
Retail continues to focus on expanding mortgage business. Excluding the auto finance segment, gross loan growth was 4.9%
increased focus in lending, QoQ sales increased by 42%
increased by 45% and 32% respectively QoQ.
Priorities: Driving CASA growth through AmBank@Work payroll solutions Driving foreign exchange in collaboration with Markets via retail distribution channels
123 103 77.8 119.3 120.4 86.1 139.1
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Mortgage Auto Finance
36.5% 34.2% 33.1% 33.6% 33.9% 34.2% 33.4%
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Total deposits CASA %
41.8 41.4 42.1 42.7 42.1 40.9
20
40.0
QoQ growth: 61.6%
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AmBank . 9MFY2016 Results Investor Presentation
Small Business Banking (SBB) update
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A total banking solution, driven by dedicated Small Business Specialists for enhanced personalised banking experience
Non - Individuals who appreciate a one -stop personalised banking experience Target segment
Market leading customer experience
Develop consistent total customer needs approach
Dedicated Small Business sales force
Superior financial returns
Customer centric strategy in lending and deposit taking activities
Enablers
Increase customer responsiveness
Process simplification & automation
Best practice sales productivity via introduction of BizReview for customers
FY
17
S
trate
gic
fo
cu
s
BizReview Dedicated Specialists and Managers for that Single Point of Contact experience Enhanced scorecards and simplified processes for speedy turnaround time
How to win?
banking transactions whilst assisting to grow their businesses via BizReview
What is SBB?
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AmBank . 9MFY2016 Results Investor Presentation
314.6 334.2 318.3 316.1 315.0 310.9 307.6
72.2 69.7 69.9 70.5 70.7 67.3 70.7
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Motor Non-Motor
General insurance, reflecting higher claims experience and lower investment income
22
QoQ
QoQ Loss ratio and combined ratio
Gross written premium was flat QoQ with growth in fire and personal accident offset by lower motor business
Lower PBT QoQ from higher claims experience and expenses
Priorities for Q4:
Motor Renewal
New customer friendly renewal notices
Gamification renewal monitoring tool
Call -centre outbound and SMS renewal reminder
initiatives
Non -Motor
New product launches
Enhancing sales kits for Banca and branch agents
62.6 69.9 61.4 62.5 58.9 51.5
22.8
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
81.3% 57.5% 65.4% 63.8% 63.0% 62.3% 66.6%
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
Loss Ratio Combined Ratio
93.9% 92.5% 89.3% 99.5%
93.2%
QoQ growth: -56%
85.3%
403.9 388.2 386.6 385.7 378.3 378.2
93.4%
386.8
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AmBank . 9MFY2016 Results Investor Presentation
AmBank Group FY16 Considerations and Expectations
23
Lower Q3 performance amidst a challenging economy
Disciplined lending in targeted sectors to
continue
Pricing competition to continue stressing
NIM
Sound asset quality , focusing on recoveries
and collection efficiency
Active management of BAU expense required
Governance and compliance remain a
key focus
Conservative funding profiles and efficient
capital positioning
Focusing on immediate quick wins whilst developing new Strategic Agenda for
FY17 - 19
-
AmBank . 9MFY2016 Results Investor Presentation
Appendix
-
AmBank . 9MFY2016 Results Investor Presentation
Islamic PATMI
H1FY16 H1FY15
Conventional PATMI Positive growth in 9MFY16 Contraction in 9MFY16
-22.7% -28.2% -37.7 % -4.4 % >100 % -31.8 %
2,104.4
-35.3 %
86%
9%
Appendix Income Statement
Net
Interest Income
Non -Interest Income
Total Income
Expenses PBP Provisions/ Allowances
PBT Tax & Zakat
PAT MI PATMI
9MFY16 1,815.7 975.6 2,791.3 1,553.7 1,237.6 -151.6 1,389.1 300.9 1,088.3 66.1 1,022.2
9MFY15 2,104.4 1,508.0 3,612.4 1,625.2 1,987.2 51.3 1,935.9 441.4 1,494.5 95.1 1,399.4
-13.7 %
85%
YoY growth
25
-27.2 % -30.5 % -27.0%
1,815.7
14%
96%
4 %
4%
9 6%
-
AmBank . 9MFY2016 Results Investor Presentation
2.68%
2.92%
3.13% 3.10% 3.10% 3.09% 3.17% 3.38%
2.98% 2.94%
2.75% 2.68% 2.72% 2.68% 2.43%
2.05%
2.25%
2.75%
3.00% 3.00% 3.00% 3.00% 3.25% 3.25%
1.00% 1.00%
4.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Note: 1 NIM includes Net Financing Income from Islamic Banking
business 2 FY10-FY14 based on internal data computation
3 FY2013 has been restated to reflect adoption of new MFRS
MF
RS
10
2.68%
2.92%
3.13% 3.10% 3.10% 3.09%2.98% 2.94%
2.75%2.68% 2.72% 2.69%
2.25%
2.75%
3.00% 3.00% 3.00% 3.00%
1.00% 1.00%
4.00% 4.00% 4.00% 4.00%
FY10 FY11 FY12 FY13 1 Apr 2013 FY14Cost of funds NIM OPR SRR
COF
NIM
SRR
OPR
Appendix Net interest margin
FY10 FY11 FY12 FY13 FY13
[Restated] 3 FY14 FY15 9MFY16
NIM Driver
Q3FY16 vs. Q2FY16
Portfolio rebalancing -7
Asset re -pricing -7
Deposits/Funding -4
Underlying movement -18
One-offs -
QoQ NIM movement - 18
Breakdown of NIM Driver (bps):
26
NIM and COF ( YoY )
Quarterly NIM (bps) drivers
2.45% 2.54%
2.38% 2.33%
2.13% 2.12%
1.94%
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
FY15 2.43% 9MFY16 2.05%
-
AmBank . 9MFY2016 Results Investor Presentation
37.6 14.0 102.3 11.5 62.8
106.7 34.3 99.9 97.9
39.3
820.9
18.0
1,445.1
Dec-15
4.3 3.0 8.6 0.6 3.7 4.3 2.7 3.5 8.5 1.5
45.7
0.4
86.9
Dec-15
Source : BNM, financial statement
Agriculture Mining &
Quarrying Manufacturing
Electricity , Gas & Water
Construction Wholesale,
Retail, Restaurant
Transport, Storage &
Com
Finance, Insurance, & Biz Act
Real Estate Education & Health
Household Others Total Loans
YoY growth
Agriculture Mining &
Quarrying Manufacturing
Electricity , Gas & Water
Construction Wholesale,
Retail, Restaurant
Transport, Storage &
Com
Finance, Insurance, & Biz Act
Real Estate Education & Health
Household Others Total Loans
Appendix Loans by sector vs. Industry
YoY growth
Loans by purpose
bil YoY
growth Composition
Purchase of transport vehicles
22.4 -9.5% 25.8%
Working capital 25.1 +12.9% 28.9%
Purchase of resi property
17.6 +13.4% 20.2%
Purchase of non - resi property
7.6 -10.6% 8.8%
Other purpose 4.1 -23.0% 4.8%
Purchase of securities 2.8 -21.4% 3.2%
Construction 3.1 -6.0% 3.5%
Personal use 1.6 -0.8% 1.9%
Credit card 1.4 -16.0% 1.6%
Purchase of fixed assets 1.2 +21.9% 1.4%
Consumer durables - - -
86.9 - 0.7% 100.0%
Loans by purpose
bil YoY
growth Composition
Purchase of transport vehicles
169.8 +2.3% 11.8%
Working capital 349.2 +10.4% 24.2%
Purchase of resi property
437.0 + 11.9% 30.2%
Purchase of non - resi property
197.0 + 10.6% 13.6%
Other purpose 64.3 -2.4% 4.5%
Purchase of securities 75.2 -1.9% 5.2%
Construction 42.7 +7.6% 3.0%
Personal use 63.7 +5.9% 4.4%
Credit card 36.0 +1.2% 2.5%
Purchase of fixed assets 10.1 -4.3% 0.7%
Consumer durables 0.1 -77.3% 0.0%
1,445.1 +7.9% 100.0%
Loans by Sector
Loans by Sector
bil
bil
27
AmBank Group
Industry
9.9% 64. 1% 3.9 % 56.2 % 15. 4% 0.2 % 26.9% 6.3 % 0.2 % 3.8 % 0.3 % 75.2 % 0.7 %
4.9% 3.5% 9.9% 0.6% 4.3% 5.0% 3.1% 4.0% 9.7% 1.8% 52.6% 0.5%
Loans composition
19.4% 47.8 % 1.4 % 11.2 % 8.6 8.2 % 4.5% 6.3 % 14.6 % 6.3 % 7.7 % 3.9% 7.9 %
2.6% 1.0% 7.1% 0.8% 4.3% 7.4% 2.4% 6.9 % 6.8% 2.7% 56.8 % 1.2%
Loans composition
-
AmBank . 9MFY2016 Results Investor Presentation
5.2 13.4 18.5
72.3
90.9
Dec'15
Appendix Deposits by sector vs. Industry
bil
28
Savings Current Account CASA Fixed Deposits Core Deposits
Savings Current Account CASA Fixed Deposits Core Deposits
YoY growth
bil
Savings
14%
Current
Account
29%
Fixed
Deposits
57%
Core Deposits Composition (AmBank Group)
Core Deposits Composition (Industry)
AmBank Group
Industry
Source : BNM, financial statement
0.7% 0.4 % 0.5 % 1.2% 1.0 %
135.6 291.8
427.4 562.1
989.5
Dec'15
0.5% 2.1 % 1.6 % 11.6 % 6.4 %
Savings
6%
Current
Account
15%
Fixed
Deposits
79%
YoY growth
-
AmBank . 9MFY2016 Results Investor Presentation
66% 70% 73%
34% 30% 27%
FY14 FY15 Dec-15
Other Income brackets
( >RM3K )
Vulnerable Income bracket
(
-
AmBank . 9MFY2016 Results Investor Presentation
32%
9MFY16 PAT 9MFY15 PAT Positive growth in 9MFY16 Contraction in 9MFY16
9MFY16 PAT (composition to Group)
Total Income Expenses PBP Provisions/ Allowanc es
PBT Tax & Zakat PAT
9MFY16 1,138.9 691.6 447.3 -6.2 453.5 108.0 345.6
9MFY15 1,301.2 686.4 614.9 210.9 404.0 100.2 303.8
Income Statement ( )
Balance Sheet ( /%)
YoY growth - 12.5 % - 27.3 % 0.8 % -103.0 % 12 .3 % 7.8 % 13.8 %
Appendix Retail Banking
30
-
AmBank . 9MFY2016 Results Investor Presentation
Corp &
Comm
Bkg
67%
Markets
10%
IB
14%
Funds
Mgmt
9%
9MFY16 PAT 9MFY15 PAT Positive growth in 9MFY16 Contraction in 9MFY16
Income Statement ( )
Balance Sheet ( /%)
- 13.5 % - 11.4 % -17.2 % - 53.1 % - 17.9 % -24.5 % - 15.7 %
Appendix Wholesale Banking
YoY growth
54.7%
Total Income Expenses PBP Provisions/ Allowanc es
PBT Tax & Zakat PAT
9MFY16 1,087.1 376.3 710.8 -69.8 780.6 175.1 605.5
9MFY15 1,256.3 454.3 801.9 -148.7 950.6 232.0 718.6
9MFY16 PAT (composition to Group)
9MFY16 Income (composition by sub -segments)
56%
31
-
AmBank . 9MFY2016 Results Investor Presentation
9MFY16 PAT 9MFY15 PAT Positive growth in 9MFY16 Contraction in 9MFY16
Income Statement - Insurance ( )
Income Statement Group Funding & Others ( )
Appendix Insurance and Group Funding & Others
Total Income Expenses PBP Provisions/ Allowanc es
PBT Tax & Zakat PAT
9MFY16 366.4 216.2 150.2 4.6 145.6 22.6 123.0
9MFY15 455.8 209.0 246.8 -30.7 277.5 65.8 211.8
- 19.6 % - 39.1 % 3.4 % >100 % - 47.5 % -65 .7 % - 41.9 % YoY growth 9MFY16 PAT (composition to Group)
11%
32
Total
Income Expenses PBP
Provisions/ Allowanc es
PBT Tax & Zakat PAT MI PAT
9MFY16 198.9 269.7 - 70.7 -80.2 9.5 -4.7 14.2 65.2 - 51.0
9MFY15 599.2 275.6 323.6 19.8 303.8 43.4 260.4 95.0 165.4
9MFY16 PAT (composition to Group)
1 %
YoY growth - 66.8 % >100.0 % -2.1 % > 100.0 % - 96.9 % >100.0 % - 94.5 % -31.4 % >100.0 %
-
AmBank . 9MFY2016 Results Investor Presentation
PATZ: profit after tax and zakat
Appendix Islamic Banking
9MFY16 Gross Financing (composition to Group)
Income Statement ( )
mil Total Income Expenses PBP Provisions/ Allowanc es
PBT Tax & Zakat PATZ FY16
9MFY16 671.1 420.9 250.2 19.5 230.7 59.2 171.4
9MFY15 690.6 331.3 359.3 121.6 237.7 53.4 184.3
YoY growth -2.8 % - 30.4 % 27.0 % -84.0 % - 2.9 % 10.9 % 7.0 %
Balance Sheet ( /%)
9MFY16 PAT (composition to Group)
9MFY16 PAT 9MFY15 PAT Positive growth in 9MFY16 Contraction in 9MFY16
16%
32%
33
-
AmBank . 9MFY2016 Results Investor Presentation
LDR 1 of 82.8%
AmBank Islamic Berhad
1. RM2b Subordinated Sukuk Musharakah Programme
2. RM3b Senior Sukuk Musharakah Programme
3. RM3b Basel III - compliant Subordinated Sukuk Murabahah Programme via Tawarruq arrangement
AMMB Holdings Berhad
1. RM2b Medium Term Notes Programme (Senior and/or Subordinated)
Funding diversity underpinned by
CASA: RM18.5 billion Fixed deposits: RM72.3 billion
(strong retention)
Supplemented by term funding & debt capital
AmBank (M) Berhad
1. RM500m Innovative Tier -1 Capital Securities Programme
2. RM500m Non - innovative Tier 1 Capital Securities Programme
3. USD200m USD Subordinated Term Loan 3
4. RM2b Medium Term Notes
5. RM4b Tier -2 Subordinated Notes
6. RM7b Senior Notes 2
7. USD2b Euro Medium Term Notes
1. Includes stable funding sources 2. 1st senior notes issuance by a financial institution in Malaysia 3. Redeemed on 27 January 2016
AmBank (M) Berhad &
AmBank Islamic Berhad
Loans with Recourse
Recourse obligations on loans sold to Cagamas - maturing in 2018
Islamic financing sold to Cagamas maturing in 2018
Statutory reserve and liquidity requirement savings
Reduced exposure to interest rate risks
Funding characteristics
Improve funding stability, maturity gap and liquidity ratios
Reduce dependence on short -dated deposits to fund long -dated fixed rate loan assets which incur liquidity risk and interest rate risk
Diversifies investor base
No obligation for buy back since we are not exposed to withdrawal risks and the notes are traded in the open market
Enable depositors to invest in long and medium dated papers
Appendix Funding sources and maturity profile
34
-
AmBank . 9MFY2016 Results Investor Presentation
ANZ diversified footprints in Asia
Value proposition
Seconding ANZ staff into key roles
Providing technical expertise
Support new product development
Two -way customer referrals
Joint account planning
Access to regional network & connectivity
Board representation AMMB Holdings Berhad
Shayne Elliott, CFO (resigned on 15 October 2015 and he assumed the role as CEO starting 1 January 2016 )
Mark Whelan Director (CEO Australia)
Suzette Corr Director (General Manager HR Australia and Group General Manager Talent & Culture, ANZ)
Board representation AmBank (M) Berhad, AmBank Islamic Berhad & AmInvestment Bank Berhad
Graham Hodges Director (Deputy Chief Executive Officer, ANZ)
Management representation
Mandy Simpson Chief Financial Officer
Nigel Denby Chief Risk Officer
Tan Chin Aun - Transaction Banking
Partnership with ANZ since 2007
Source: ANZ website
Appendix ANZ & AmBank Group Partnership
29 Asian markets, 5 Partnerships
35
-
AmBank . 9MFY2016 Results Investor Presentation
IAG diversified footprints in Asia
Value proposition
Involved in the management of AmGeneral Insurance, offering skills transfer, partnership and relationship models of IAG
Adding value through claims re -engineering savings, increased revenue via product development, underwriting and pricing
Board representation
Duncan Brain Director ( CEO, IAG Asia)
Aidan Pallister Director (Deputy CEO / COO of IAG Asia)
Management representation
Derek Roberts CEO, AmGeneral Insurance Berhad
Arron Mann General Manager, Claims
Chris Tandy General Manager, Personal and Commercial Pricing
Partnership with IAG
Appendix AmGeneral Partnership
2 subsidiaries in Thailand & Vietnam Investment in associates in Malaysia, China & India
Source: IAG annual report 2014
36
https://www.kurnia.com/malaysia
-
AmBank . 9MFY2016 Results Investor Presentation
Perlis
Kedah
PulauPinang
Perak
SarawakKuala Lumpur
Putrajaya
NegeriSembilan
Melaka Johor
Pahang
Selangor
Labuan
SabahTerengganu
Kelantan
Brunei Darussalam
Branches ATM RO
Perlis 1 4
Kedah 6 29
Pulau Pinang 14 49 1
Perak 18 47
Selangor 38 242
Kuala Lumpur 23 132 2
Putrajaya 1 3
Negeri Sembilan 7 38
Melaka 6 37
Johor 21 91 1
Pahang 9 32 1
Terengganu 4 20
Kelantan 2 22
Sabah 9 36 1
Labuan 1 2
Sarawak 15 50 1
175 834 7
Population Density: 1,501 persons per km 2
AmBank Islamic
branches
Weekend Banking
Branches
ATMs @ 7 - Eleven
Electronic Banking Centres
Internet & Mobile
Banking AmGeneral AmMetlife AmInvestment
AmCard Services
3 75 365 182 AmOnline AmGenie
32 (include 28
dual branded branches)
18 branches 52 agencies
14 26
Note(s):
Brunei: AmCapital (B) Sdn Bhd
Appendix Distribution channels
RO: Regional Offices
37
Nationwide Branch Network
Other Customer Touch Points
-
AmBank . 9MFY2016 Results Investor Presentation
AMMB Holdings Berhad
23.8% 1 AmCorp 13.0% EPF 16.5% Others 46.7%
100% AmBank (M) Berhad
100% AmInvestment Group Berhad
100% AmInvestment Bank Berhad
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 9MFY2016
27% 27% 26% 29% 31% 29% 26%
1. ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited 2. Formerly known as AmG Insurance Berhad 3. Formerly know as Kurnia Insurans (Malaysia) Berhad 4. 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 ( ) Sdn Bhd
33.33% Bonuskad Loyalty Sdn Bhd
100% AMAB Holdings Sdn Bhd
51% AmGeneral Holdings Berhad 2
~50 % AmMetLife Takaful Berhad 4
~50 % AmMetLife Insurance Berhad 4
100% AmGeneral Insurance Berhad 3
49%
~50%
~50%
As at 31 December 2015
Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance &
Takaful
Appendix Shareholding structure & franchise value
38
-
AmBank . 9MFY2016 Results Investor Presentation
6.00 5.60 5.60 5.42 5.40 5.25 5.20 5.20 5.10 5.10 5.00 5.00 4.90 4.90 4.80 4.80 4.80 4.75 4.45 4.20 4.00 4.00 3.50
- 23.7%
- 6.5%
15.7%
24.7%
20.1%
95.2%
97.6%
-35.0% -15.0% 5.0% 25.0% 45.0% 65.0% 85.0% 105.0%
CIMB
MBB
AMMB
KLCI
RHB Cap
PBB
HLBK
(Note: 18 May 2007 vs . 31 Dec 2015)
Ratings FY2007 FY2015
AmBank (M) RAM LT: A2 , ST: P1 Outlook: Stable
LT: AA2 , ST: P1 Outlook: Stable
S&P
LT: BBB - , ST: A-3 Outlook: Stable
LT: BBB+, ST: A-2 Outlook: Stable
LT: Baa2 , ST: P-3 Outlook: Stable BFSR: D -
LT: Baa1 , ST: P-2 Outlook: Stable *BCA: baa3 * Adj BCA: baa3
AmInvestment RAM LT: AA3 , ST: P1 Outlook: Stable
LT: AA2 , ST: P1 Outlook: Stable
AmBank Islamic
RAM LT: A2 , ST: P1 Outlook: Stable
LT: AA2 , ST: P1 Outlook: Stable
AMMB RAM NA LT: AA3 , ST: P1 Outlook: Stable
Source : Bloomberg as at 12 January 2016
+3
+3
+1 Notches of ratings upgrades since 2007
+1
AMMB HOLDINGS BERHAD P/EPS : 17.75 P/BV : 0.92
Market Price : RM4.53
+3
Average TP : RM4.91 Buy : 4 (17%) Sell : 6 (26%) Hold : 14 (57%) Average TP / Average CP : 1.11x
Appendix Banking sector share price movement / target price and recommendations
* Maintained since 16 Jun 15
+2
39
Buy/Outperform/Overweight/Add P/EPS & P/BV as at 31 December 2015
TP: target price Sell/Underperform/Fully valued/Reduce/Underweight
Hold/Neutral/Market perform
Banking Sector Share Price Movement Upgraded ratings
Target Price and Recommendations
-
AmBank . 9MFY2016 Results Investor Presentation
Business Conditions Index
points
Source: BNM, MIER, Department of Statistics & Bloomberg
Appendix Key economy indicators: As per 9MFY2016
40
Business confidence index FDI flow
CPI and unemployment rate GDP, consumption and investment growth
3.9%
-
AmBank . 9MFY2016 Results Investor Presentation
To be updated for the his
* Retail comprise purchase of transport vehicle, purchase of residential property, personal use and credit card
Source: BNM & Bloomberg
* Effective 2 January 2015, the Base Rate would replace the Base Lending Rate as the main reference rate for new retail floating rate loans
41
Appendix Banking system data: As per 9MFY2016
Key interest rates Asset quality
Household debt movement Household debt, national savings and retail impaired loan ratio
34.2% 34.6% 33.0% 31.2% 30.9%
74.5% 76.2% 81.3%
86.7% 87.9%
24.9% 19.7% 16.3% 14.7% 13.3% 0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
2010 2011 2012 2013 2014
Gross national savings Household debt/GDP
Retail impaired loans ratio*
6.8 6.1 6.8
2.4 1.4 0.6
3.2
1.7 0.8
1.4
2.3 1.7
13.8
11.5
9.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2012 2013 2014
Annual Change
(%)
Residential property Hire purchase Personal use
Others* Annual Change (%)
4.57%
3.25%
6.79%
3.86%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Avg lending rate (commercial banks) Average OPR
Average BLR Base rate
1.2%
96.2%
Mar
Ju
n
Sep
t
De
c
Mar
Ju
n
Sep
t
De
c
Mar
Ju
n
Sep
t
De
c
Mar
Ju
n
Sep
t
De
c
Mar
Ju
n
Sep
t
De
c
Mar
Ju
n
Sep
t
De
c
2010 2011 2012 2013 2014 2015
GIL LLC
Loan loss coverage
Gross impaired loans
-
AmBank . 9MFY2016 Results Investor Presentation
Source: BNM & Bloomberg
Beginning January 2013, capital components are reported based on Basel III Capital Adequacy Framework
Basel II Basel III
42
Appendix Banking system data : As per 9MFY2016
Capital ratios Capital activities
Loan growth Deposit growth
8.3%
7.4%
7.9%
Mar JunSeptDecMar JunSeptDecMar JunSeptDecMar JunSeptDecMar JunSeptDecMar JunSeptDec
2010 2011 2012 2013 2014 2015
Retail yoy growth Non Retail yoy growthTotal loans yoy growth
-
AmBank . 9MFY2016 Results Investor Presentation
RM48k (USD15k) GNI
per capita
RM1.7 trillion GNI
6% annual GDP growth
GROSS NATIONAL INCOME
JOBS
31.6m population
3.3m additional jobs
TRANSFORMATIONAL ACTIONS
INVESTMENT
Focus Drivers:
12 NKEAs, 131 EPPs
60 Biz Opportunities
Private -sector led
6 SRIs & 51 Policy Measures
RM1.4 trillion investment
92% private investment
8% public investment
73% DDI, 27% FDI
ECONOMIC TRANSFORMATION
PROGRAMME
ETP Overview Achievement of 12 NKEAs in 2013 and 2014
2020 Target
2011 2012 2013 2014 To - date % of
Target
Investment ( ) 444.0 94.8 21.7 15.2 14.4 146.1 32.9%
GNI per capita (USD per capita) 15,000 9,710 228 168 320 10,426 69.5%
Job Creation (mil) 3.3 0.2 0.4 0.4 0.5 1.5 45.5% Note:
Scoring is calculated by a simple comparison against set 2013 and 2012 targets respectively. (*) The overall NKEA composite scoring is the average of all scores. Data was correct as on ETP announcement date, the ETP is an evolving programme , in the past 2 years, some EPPs have been dropped, some new ones were added
ETP : Economic Transformation Programme Source ETP Annual Report 2013 & 2014, Resaerch House Report
Tracking of EPPs
NKEAs
2020 Target KPI Scoring*
GNI ( )
New Jobs 2014 2013
Greater KL/ Klang Valley 190 320,000 103% 98%
Oil, Gas & Energy 131.4 52,300 108% 97%
Financial Services 180.2 275,400 121% 117%
Wholesale & Retail 55.4 454,190 104% 124%
Palm Oil & Rubber 230.9 41,600 106% 78%
Tourism 66.7 497,000 126% 115%
Electrical & Electronics 53.4 157,000 104% 105%
Business Services 78.7 245,000 96% 102%
Communications Content & Infrastructure
57.7 43,162 110% 101%
Education 31.8 535,000 116% 102%
Agriculture 28.9 109,335 120% 98%
Healthcare 35.3 181,000 105% 103%
43
Appendix Economic Transformation Programme : As per H1FY2016
-
AmBank . 9MFY2016 Results Investor Presentation
Glossary / Disclaimer of warranty and limitation of liability
Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the ma rket One Offs One offs comprise those impacts on financial performance that arise from changes to :
accounting and provisioning policies ( eg 5 and 7 year rules) differences between economic and accounting hedges prior period catch ups ( eg backdated salary costs) strategic investments and divestments ( eg ANZ partnership), and tax and regulatory regimes ( eg deferred tax asset write off due to reduction in corporate tax rates)
Underlying Performance Underlying performance refers to the financial performance adjusted for one off impacts as above Business Divisions Business divisions
comprise AmBank have relatively more stable income streams, incur the bulk of the costs and typically have a lower risk profile in most instances have market shares and growth metrics that can be measured and benchmarked externally
Operating Segments Operating segments
have more volatile and lumpy income streams, with the former a direct function of risk appetite include
income and expenses associated with shareholder funds, loan rehabilitation and legacy businesses, plus costs associated with corporate, shared services and governance functions currently not charged back to the business units
The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad AMMBmake any representation or warranty, express or implied, as to the adequacy, accuracy, completeness or fairness of any such i nfo rmation and opinion contained and shall not be liable for any consequences of any reliance thereon. Neither AMMB Holdings nor its affiliates are act ing as your financial advisor or agent. The individual is responsible to make your own independent assessment of the information herein and should not trea t s uch content as advice relating to legal, accounting, and taxation or investment matters and should consult your own advisers.
Forward looking statements are based upon the current beliefs and expectations of the AMMB Holdings and are subject to signif icant risks and uncertainties. Actual results may differ from those set forth in the forward looking statements. AMMB Holdings does not undertake to update the forward looking statements to reflect impact of circumstances or events that may arise after the date of this presentation.
The information in the presentation is not and should not be construed as an offer or recommendation to buy or sell securitie s. Neither does this presentation purport to contain all the information that a prospective investor may require. Because it is not possible for A MMB Holdings or its affiliates to have regard to the investment objectives, financial situation and particular needs of each individual who reads the informati on contained thus the information presented may not be appropriate for all persons. The information contained is not allowed to be reproduced, redistributed, transmitted or passed on, directly or indirectly, t o a ny other person or published electronically or via print, in whole or in part, for any purpose.
Warranty and Limitation of Liability policy applies to the financial institutions under AMMB Holdings.
Disclaimer of Warranty and Limitation of Liability
-
AmBank . 9MFY2016 Results Investor Presentation
Glossary/ Disclaimer of warranty and limitation of liability
The material in this presentation is general background information about AmBank activities current at the date of the presentation . It is information given in
summary form and does not purport to be complete . It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor . These should be considered, with or without professional advice when deciding if an investment is appropriate .
For further information, visit www.ambankgroup.com ;
or contact
Ganesh Kumar Nadarajah
Executive Vice President, Group Finance Business Performance & Investor Relations
Tel: +603 2036 1435
Fax: +603 2031 7384
Email: ganesh [email protected] /
http://www.ambankgroup.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]