Maybank Investor Day
Transcript of Maybank Investor Day
Maybank Investor Day –Maybank Singapore
A story of Maybank Singapore 3 Sep 2012
• Overview of Maybank Singapore• Our History • Our Strengths
• Our Performance Drivers
• Going forward – Regionalization Initiatives
Agenda
2
• Started operations since 1960 as a full licensed commercial bank with itsfirst branch opened at South Bridge Road
• Expanded footprint from a “coffee–shop” bank to a niche market leaderwith contemporary branches of unique branch concept and atmospherics
• Awarded Qualifying Full Bank (QFB) status by the MAS in 2001 to increasepresence in mass retail market
• Partnered other QFBs since 2002, to share ATM network, with a combinedreach of more than 140 ATMs
Our History of over 50 years
3
Woodlands
Yishun
Kovan
Tampines
Bedok
Choa Chu Kang
Jurong East
Jurong PointClementi
Chinatown
Maybank Tower
Geylang Serai
Robinson
North Bridge
Balestier
Marine Parade
Textile Centre
HDB Hub
Bukit Timah
Holland Village
Ang Mo Kio
Nex
Our Strategic Retail Presence – operate one of the largest networks
of branches and ATMs with 27 service locations (22 Branches & 5 Offsite ATMs)
4
Core Strengths as a Niche Market Player– asset size of S$40 billion and staff strength of over 1,400 as of Jun 12
5
1. Global Wholesale Banking holds traditional strengths in areas of– Construction & Real Estate Property Development
– Commerce & Services
– Trade finance
– Vessel Financing
2. Consumer Banking Developments– Market Leader in Auto Finance
– Making market presence in Housing Loan, Cards
– Wealth Management Business
3. Focus on Organizational Excellence
4. Integrated efforts in community giving (Corporate Social Responsibility)
For every four locally financed vehicles, one isfinanced by Maybank Singapore
Maybank auto loan business in the localmarket can be traced back 50 years ago.Currently the business is worth close to 4billion, almost equivalent to the bank’shousing loans business – a total of 4 billion.
~ Lianhe Zaobao 5 Sept 2010
Others
BII Indonesia
Singapore46%
Others
Singapore59%
BII Indonesia
Singapore 13%
Malaysia
BII Indonesia Others
Contribution to Maybank Group’s PBT
Contribution to International PBT Composition of International Loans
Our contribution to Group & International – leading contributor in terms of profit and loan portfolio as of Jun 12
6
Our Beginning from Ground Zero – showing strategic resilience amidst volatile market conditions
7
(100)
0
100
200
300
400
-5
0
5
10
15
20
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Singapore GDP Growth, % MBS Pre-tax Profits, S$m (RHS)
Our Overarching Vision and Mission
8
Group Vision, Mission
Maybank Singapore Mission
Maintain Leadership in specific products &Markets
Compete Effectively with Regional & GlobalPlayers in Singapore
TIG
ER V
alue
s
Vision
Mission
Objectives
Systems and Process
CONTROLCOLLABORATION
VALUE CREATION
People Excellence Engaged Staff
Visionary & Collaborative Leadership
Strategic Planning guided by MVV, on realism, clarity and sustainability
Organizational Culture
Community Giving
Our Underlying Formula – the making of our organization that is more than the sum of our parts
9
People ProcessResults Customer>
InnovationExcellence Driven by our passion for
constant Improvement
Committed Innovation Focus
ServiceExcellence Customer Centricity
Customer Engagement
Service Benchmarks
Organizational Excellence
9
Achieving Organizational Excellence
10
Maybank is the first bank in Singapore to achieve all four certifications inBusiness Excellence - Singapore Quality Class, Singapore ServiceClass, People Developer and Singapore Innovation Class at an enterpriselevel.
Maybank Singapore is also the first and only winner to be conferred the2011 People Excellence Award at an enterprise level.
“
11
• Our Performance Drivers • sustaining profitability with niche focus
Agenda
12
13
Building & Construction - Corresponding growth in our construction portfolio as Singapore renewed and expanded its infrastructure over the years
-2
0
2
4
6
8
10
12
-10
0
10
20
30
40
50
60
2007 2008 2009 2010 2011 2012
Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %
Source: Monetary Authority of Singapore, Audited Financials
14
General Commerce – growth in line with our increasing presence in SME market
-4
-2
0
2
4
6
8
10
12
14
-20
-10
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012
Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %
Source: Monetary Authority of Singapore, Audited Financials
15
Trade Finance – driven by structured trade since its inception 5 years ago as we capitalize on Asia’s booming supply chain
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2007 2008 2009 2010 2011 2012
Other Trade Finance Structured Trade & Commodity Finance
Source: Monetary Authority of Singapore, Audited Financials
CAGR: 52%
16
Car Loans - maintain our leadership despite keener competition and a tighter COE supply
-5
0
5
10
15
20
25
30
-5
0
5
10
15
20
25
30
2007 2008 2009 2010 2011 2012*
Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %
Source: Monetary Authority of Singapore, Audited Financials
*Note: Includes GE Money, which was acquired by Standard Chartered Singapore in late 2011
17
Credit Card Base - customers doubled over last 5 years
0
1
2
3
4
0
10
20
30
40
2007 2008 2009 2010 2011 2012
Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %
Source: Monetary Authority of SingaporeIncludes both main and supplementary cards
18
Credit Card Loans – increasing card base plus stronger branding & merchant network facilitate our growing market share
-1
0
1
2
3
4
-10
0
10
20
30
40
2007 2008 2009 2010 2011 2012
Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %
Source: Monetary Authority of Singapore, Audited Financials
19
Building up scale and capacity - domestic loan driven model funded largely with customer deposits over past decade
0
5,000
10,000
15,000
20,000
25,000
30,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Loans
Deposits
S$ millions
Loan portfolio increased By 5 folds over last decade
Non Performing Loan Ratio, %
20
Credit Management - Proactive account management to ensure our asset quality
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2007 2008 2009 2010 2011Major QFBs Maybank Singapore
Source: Audited Financials
21
Customer Deposits – integrated deposit collection & customer acquisition strategy
0
1
2
3
4
5
6
7
0
5
10
15
20
25
30
35
2007 2008 2009 2010 2011 2012
Maybank Singapore Market Share, % (RHS) Industry Growth, % Maybank Singapore Growth , %
Deposits from Non-bank Customers, % Change
Source: Monetary Authority of Singapore, Audited Financials
Loan-to-Deposit Ratio, %
22
Funding Liquidity - strong deposit growth improved our funding position
0
20
40
60
80
100
2007 2008 2009 2010 2011 2012
Industry Major QFBs Maybank Singapore
Source: Ministry of Trade & Industry, Audited Financials
Cost-to-Income Ratio, %
23
Cost Management – streamline processes & optimize resource usage as we expand our business
35
40
45
50
55
2007 2008 2009 2010 2011Major QFBs Maybank Singapore
Source: Audited Financials
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010 2011
Net Interest Income Non-Interest Income
24
Revenue Diversification – loan driven model augmented by diversifying into new fee income streams
S$ millions
0
50
100
150
200
250
2006 2011Non-Interest Income
25
Non-interest income Growth –driven by core operating business
S$ millions
Non-Operating Income
Other Fee Income
Trade Related
Commission
Wealth Management
Treasury & Investment
Income
Credit Related
Fees
Composition, 2011
CAGR: 23%
• Our Performance Drivers• Service excellence & innovation changes
Agenda
26
Service Excellence Culture – benchmark against industry practices to promote continuous service excellence culture
27
MBB RHB HSBC SCB OCBC DBS UOB
200920102011
Excellent Service Award Inspire service staff Develop service models Create service champions Recognize efforts Professionalise service
% of Excellent Service Award (EXSA)
Maybank Citibank SCB HSBC DBS OCBC UOB All other Banks
200920102011
Customer Satisfaction Index of Singapore – CSISG
Measure of Customer
Satisfaction Across Banking
Industry Deliver consistent customer satisfaction
Service Innovation – bringing banking convenience and offering more
options to customers
Unique branch concepts and atmospherics that resonate with the needs of customer segments served in the neighbourhood and developments in the location
Interactive Kiosk at Maybank@Clementi
“Garden City” which reflects the rich heritage
that surrounds its presence and yet project a modern and futuristic
outlook in keeping with a booming financial hub.iAppointment service
28
Partner with QFB Banks to share ATM network
Joint bill payment services through D-Pay (direct pay) at AXS stations
Service Innovation - Serving customers and communities in urban and heartland areas
“Kaleide culture” that plays out the community buzz and
kampong spirit that are prevalent of thelocal neighbourhood
Contemporary Family Lifestyle
Concept BranchesBoth the brick-and-mortar and thesoft components of our Branchnetwork are transformed. Uniquebranch concepts andatmospherics that resonate withthe needs of customer segmentsserved in the neighbourhood anddevelopments in the location areintroduced.
Investment in Branch Re-engineeringThe Branches have undergone many changes:
29
Key Product Innovations over last 3 Years
FIRST to launch a “Privilege Plus Savings” with higher savings rates and free personal accident insurance coverage for customers aged 50 years and above.
FIRST to launch “Pocket Me Giro” with S$5m to reward customers when making GIRO payments
FIRST to offer complimentary travel insurance for online savings accounts
FIRST QFB to launch all-in-one Mastercard debit card with NETS Flashpay
Launch of Maybank Manchester United Platinum Visa Card with United Legends
Re-launch of Maybank Business Platinum MasterCard - the FIRST bank to include an option for companies to feature their company logo and name on a business credit card
ePins is a NEW payment system that operates like Nets. Maybank and Citibank are the first two foreign banks to offer to their customers 1,200 payment points across merchants. With this move, customers of QFBs will now have an added payment channel, with their ATM / debit cards.
FIRST to launch Syariah-compliant savings account for Hajj pilgrims
FIRST to offer Islamic Term Financing to SMEs
Launch two new FIRST-in-market home loan packages - Hybrid Rate & Ceiling Rate Home Loan
Regional Maybank Diamanté Private Client Programme for Selected High Net-Worth Individuals
30
• Our Performance Drivers• Human Capital
Agenda
31
32
33
Asian Banking & Finance Retail Banking Awards 2012: Website of the Year - Singapore & Employer Award of the Year - Gold Award
Arts Supporter Award
Banking & Payments Asia Trailblazer Awards 2012 - Special Commendation for Service Excellence in Customer Experience.
Excellence Award (Corporate Partner) in the People's Association Community Awards 2012 –Maybank Singapore received this award second year running.
• Going forward – Regionalization Initiatives
Agenda
34
Strategic Plan – achieving long term sustainable growth
35
1. Building Skills for Higher
Competency• Investment in Human Capital to
build up competency as well as commitment
2. Increasing Scope for
Wider Capabilities • Investment in technology & systems
to enhance processes, widen distribution capabilities and penetrate new business areas
3. Expanding scale for
Bigger Capacity • Continual expansion of market
share and customer base in key areas to build on economies of scale
Flexible Business Strategies & Approach in response to market without losing focus on LT goals & support
Value creation
Innovation,
Strategic Resilience
in order to achieve sustainable growth & LT financial goals
Business Excellence Framework
deployment
Group Strategic Objectives – a common regional aspiration
36
Our Vision To be a Regional Financial Services Leader
Our Mission Humanising Financial Services Across Asia
Strategic Objectives 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by 2015
2. Leading ASEAN wholesale bank eventually expanding to Middle East, China & India
3. Sustainable Champion for Insurance & Takaful
4. Truly regional organisation, with ~40% of pre-tax profit derived from international operations by 2015
5. Leading Islamic bank in ASEAN
By 2015
S’pore to contribute over 40% of International Profit
Leverage on technology to strengthen Offerings & Deepen Customer penetration
Global Markets Position Singapore as the Derivative Risk Centre for Global Markets
Regional Cash ManagementLeverage on the regional Cash Management platform and build up an underlying suite of Cash Management, Trade Financeand FX products to serve the regional corporate clients
Regionalization of Cards BusinessTo be among Top-5 market share leaders for cards business in the ASEAN region (currently at No.8 ) and contribute at least 8% of group revenue (current contribution at 5%)
Regional Wealth ManagementTo develop RWM capabilities as a strategic step to achieve our aspiration in becoming a regional financial services leader.
Regional Initiatives – build on our organizational capabilities to achieve value creation, innovation and strategic resilience for sustainable growth
37
Optimize business synergies within Group with overall client coverage focus
Increase Penetration through Mobile BankingProvide convenience and flexibility to optimize reach to customers with no geographical limit
MBB (Past)
20102005 Future20112006 2008 2012(p)
USD 1 Billion
38
Our Triple-One Aspiration
SGD 1 Billion
RM 1 Billion