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AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 1
AMMB Holdings Berhad
Ashok Ramamurthy Group Managing Director
Vision
solutions group, we take pride in growing your future with us
Investors Presentation 9MFY2013 Results 19 February 2013
AmBank Group
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 2
1. Executive summary
2. 9MFY2013 Group Financial Performance
3. Outlook
4. Integration Updates
5. Divisional Strategy & Performance
6. Supplementary Information
o Strategies in more detail
o Economic landscape
o Strategic partnerships
o Others
1. Executive Summary
Page 8
Page 21
Page 25
Page 34
Page 46
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 3
Scale & Presence
Reposition, Build New Growth Options
Improve Returns
FY2012 FY2007 - 11 Pre ANZ
Reported PATMI grew +9.1%, ROE at 14.2%
Net loans grew +9.6%, in profitable & viable segments
Strengthened capital & funding (CASA grew +26.5%, LDR at 89.4%)
Credit ratings upgraded: Baa1/P-2/Stable by 1
Kurnia & MBF Cards acquisitions completed, integration in progress
Repositioned AmLife and AmTakaful for new strategic options
9MFY2013
Aggressively Invest, Optimise & Leverage Connectivity
FY2013-2015
Grow retail assets
Lead in investment banking business
Leverage fixed income trading
3 Focus areas:
Strategic Business Transformation
High priority growth initiatives
Organisation and governance structures
5th consecutive year of record performance
Consistent & broad based revenue growth
Improved balance sheet & funding mix
Dividend payout: 40.1%
Pursue niche acquisitions such as Kurnia
AmBank Transformational Journey
1 AmBank (M) Bhd
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 4
Transaction* Islamic*
+57.8% +9.3%
Good 9MFY2013 results, in line with FY2013 expectations
PATMI#
EPS (basic)
ROA
ROE
1 Not annualised ^ Restated with retrospective application of MFRS, where applicable
# PATMI: profit after tax and non controlling interests * Performances integrated to divisional outcomes
YoY Change Q1FY12 Q1FY11 Q4FY11 FY11
1,238.8 mil 1,135.3 mil 9.1% 393.6 mil 396.6 mil 448.6 mil 341.4 mil 346.2 mil
14.2% 14.2% - 13.3% 13.5% 15.9% 12.5% 12.8%
1.43% 1.43% - 1.27% 1.39% 1.64% 1.30% 1.33%
41.31 sen 38.01 sen 8.8% 13.1 sen 13.21 sen 15.01 sen 11.41 sen 11.61 sen
9MFY13 9MFY12 ̂(restated) Q3FY13 Q2FY13 Q1FY13 Q4FY12 Q3FY12
Performance
9MFY2013 on track to achieve full year estimates
Improved net-interest income despite competitive pricing in selected segments
Credit quality improving with lower YTD charge offs/allowances
9MFY13 vs 9MFY12^ PAT growth
Retail Business Corporate & Institutional
Investment Markets General Life
+15.5% +60.2% +81.1% -54.4% -43.7% +66.0% ->100.0%
Divisional Growth
Retail Banking: higher profits from improved asset quality
Business and Corporate & Institutional Banking: strong income and deposits growth
Investment Banking and Markets: subdued performances with stable outlook
General insurance: improved underwriting profits and now includes 3-months performance
Life Assurance: results reflecting revisions to reporting requirements
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 5
2.04% 2.64% 0.60% 2.45%
15.9% 14.7% 1.2% 15.7%
11.1% 10.3% 0.8% 11.3%
89.4% 89.9% 0.5% 89.3%
44.5% 40.8% 3.7% 40.6%
43.0% 40.8% 2.2% 40.6%
Gross impaired loans
LD Ratio3
CTI
RWCAR
Tier 1 CAR
Risk, Capital & Funding Profile
Consistently strong deposits growth, improved funding and risk profiles
Net Lending1
Customer Deposits2
CASA
YoY Change Q1FY12 Q1FY11 Q4FY11
81.2 bil 74.1 bil 9.6% 75.6 bil
15.4 bil 12.2 bil 26.5% 13.2 bil
90.9 bil 82.4 bil 10.3% 84.7 bil
9MFY13 9MFY12 ̂(restated)
FY12 ̂(restated)
Growth
Stronger loans growth targeting profitable & viable segments Maintained strong CASA growth via expanded product and service offerings Implementing customer segmentation to enhance share of wallet and increase cross-selling across divisions
Proactive and consistent risk management
LDR at preferred levels (circa 90% ± 2%) Continued investments to build capacity for growth
9MFY13 9MFY12 ̂(restated)
FY12 ̂(restated)
^ Restated with retrospective application of MFRS, where applicable 1 Includes Islamic loans sold with recourse
2 Adjusted customer deposits include term funding and loans sold with recourse 3 Based on net loans including loans sold with recourse over adjusted customer deposit
4 Exclude acquisition & synergistic benefit costs
Underlying4
Reported
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 6
4.8%1; positive domestic sentiment but not immune to global economy
Domestic business and government spending is expected to support economic activities, spurred by Budget 2013 incentives & plans, accommodative policies and continued roll-out of ETP
Domestic demand is expected to moderate with lower household spending
Short term uncertainties may impact private sector investments, but ETP programs expected to offset this
What is ahead
Malaysia: Anticipating stable outlook for 2013
Ongoing ETP supported lending and capital market activities
New Responsible Lending Guidelines and regulatory reforms moderating consumer loans growth
Moderating economy and price-based competitions for loans and deposits are ongoing challenges to maintain margins
Tougher economic environment may put some pressure on improving asset quality trends
OPR expected to remain at 3% for 2013
Banking: Opportunities & challenges
Source: BNM and PEMANDU websites
4.8%
-1.5%
7.2%
5.1% 5.0% 4.8%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
580,000
600,000
620,000
640,000
660,000
680,000
700,000
720,000
CY2008 CY2009 CY2010 CY2011 CY2012f CY2013e
%
GDP (RM'mil) GDP (%)
ETP execution gaining momentum
Initiatives
Investment ( )
GNI Impact ( )
Job creation
2011 2012 Total
110 39 149
179.2 32.8 212.0
129.5 8.1 137.6
313,741 97,151 410,892
1 Based on Bloomberg consensus as at 10 Jan 2013
1 1
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 7
Execute program to strengthen brand positioning in affluent segments
Centralize functions to improve customer experience via reengineering and process automation
Optimize operating and support segments to deliver productivity and efficiency gains, maintaining upper tier CTI
Commenced AmG-Kurnia and MBF Cards integration and delivering on synergies & benefits
Exploring strategy options for Life & Takaful business
AmBank Group: Execute to Strategic Priorities
Accelerate Growth &
Business Mix Changes
Strengthen Customer
Centricity & Connectivity
Increase Productivity &
Efficiency
Acquire & Integrate
Accelerate execution of Retail reshaping programme and grow main bank relationships
Grow Transaction Banking and Markets businesses for non-interest income
Enhance focus on AmLife and AmTakaful to deliver growth
Uplift ANZ International Connectivity via joint account planning / aligned pricing and propositions to customers
Targeting increased investments in growth, productivity and infrastructure to support MTA
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 8
AMMB Holdings Berhad
Investors Presentation 9MFY2013 Results 19 February 2013
AmBank Group
Mandy Simpson Chief Financial Officer
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 9
1. Executive Summary
2. FY2012 Group Financial Performance
3. Outlook
4. Integration Updates
5. Divisional Strategy & Performance
6. Supplementary Information
o Strategies in more detail
o Economic landscape
o Strategic partnerships
o Others
2. 9MFY2013 Group Financial Performance
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 10
PATMI H1FY12*Net interest incomeNon Interest IncomeTotal income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI H1FY13PATMI H1FY12*Net interest incomeNon Interest IncomeTotal income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interests PATMI H1FY13
5.9% 79.6% 9.0% 3.5%
1,238.8 mil
9.1% 9.9% 0.02% 6.2% 9.2% 9.0%
1,135.3 mil
PATMI* 9MFY12
Net Interest Income
Non-Interest Income
Total income
Expenses PBP Provisions/ Allowances
PBT Tax & Zakat PAT MI Reported PATMI* 9MFY13
One-off expenses#
Underlying PATMI* 9MFY13
9MFY13 ( )
2,122.8 1,022.8 3,145.6 1,398.5 1,747.1 65.8 1,681.3 410.3 1,271.0 32.2 1,238.8
9MFY12 ̂( )
2,058.4 1,086.5 3,144.9 1,282.5 1,862.4 322.5 1,539.9 373.5 1,166.4 31.1 1,135.3
3.1%
9M FY13 PATMI 9M FY12 PATMI Positive growth in 9M FY13 Contraction in 9M FY13
* PATMI: profit after tax and non controlling interests ^ Restated with retrospective application of MFRS, where applicable
Net interest income and lower allowances underpinned 9MFY2013 results
Reflects (1) acquisition & operating costs to deliver synergies, and (2) ongoing medium term investments
Growth
PATMI 9MFY12*Net interest incomeNon Interest IncomeTotal income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interestsPATMI 9MFY13
PATMI 9MFY12 Retail banking Business banking Corporate &Institutional
InvestmentBanking
Markets General InsuranceLife Assurance OperatingSegments
PATMI 9MFY13
1,264.8 mil
11.4%
PATMI 9MFY12*Net interest incomeNon Interest IncomeTotal income Expenses PBP Impairments PBT Taxation & zakat PAT Minority interestsPATMI 9MFY13
# one-off acquisitions related expenses
26.0 mil
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 11
PATMI 9MFY12Retail banking Businessbanking
Corporate &Institutional
InvestmentBanking
Markets GeneralInsurance
Life Assurance OperatingSegments
MinorityInterest
PATMI 9MFY13
Diversified contributions with acquisitions contributing to growth
81.1% 43.7% 66.0% 54.4% 9.1% >100.0% 9.2%
* Performances reflected within divisional outcomes ̂Restated with retrospective applications of MFRS, where applicable
2. Includes expenses for recently set-up AmFamily Takaful business
84%
15.5% 60.2% >100.0% 57.8%
PATMI (by division)
PATMI* 9MFY12
Retail Business Corporate & Institutional
Investment Markets General
Insurance Life
Assurance1 Operating Segments
MI
Transaction* Islamic*
PATMI* 9MFY13
% of Composition
35% 22% 26% 4% 11% 9% -3% -1% -3%
9MFY13 ( )
437.6 269.8 323.7 47.7 132.3 106.9 -38.9 -8.12 -32.2 147.4 196.1
9MFY12^ ( )
378.9 168.4 178.7 104.6 235.1 64.4 4.7 31.6 -31.1 93.4 179.5
Conventional PATMI Islamic PATMI Positive growth in 9M FY13 Contraction in 9M FY13
1,135.3 mil
84%
16%
1,238.8 mil
16%
Growth
Note: Includes 3-months -month performance
Includes 3 months profit of RM31.2 mil
month profit of RM5.2 mil
3.5%
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 12
610.3 674.3 701.6
543.0 574.0
288.1
302.4
562.218.2 5.2
302.0
123.7
172.0
146.5
127.1
18.2
21.6
21.7
15.4
118.2 20.6
FY10 FY11 FY12 9MFY12* Fee Income Trading & InvestmentInsurance Business Others 9MFY13
Fee Income Trading & Investment Insurance Business Others
31.0
419.2
108.9
Non-interest income movement
Lower non-interest income from trading & investments, stronger general insurance contribution
As % of total income 29% 30% 34% 35% 33%
5.9%
1,432.0
1,040.3
1,170.2
1,022.8
5.7% 28.2% 16.8% 34.4%
1,086.5
^ Restated with retrospective application of MFRS, where applicable
610.3 674.3701.60
378.2 373.2
288.1 302.4
562.20
19.6
191.5
123.7
172.0
146.50
5.0
89.6
18.2
21.6
21.70
10.1 127.1 8.7
FY10 FY11 FY12 H1FY12* Fee Income Trading & InvestmentInsurance Business Others H1FY13
Fee Income Trading & Investment Insurance Business Others
FY10 FY11 FY12 ̂ 9MFY12 ̂ Fee Income Trading &
Investment Insurance Business
Others 9MFY13
56%
29%
2%
13%
Sales: 27% Trading: 43% Others: 30%
Partly from higher retail fee income inline with stronger lending & deposits activities as well as wealth propositions
Good premium growth in general insurance, partly offset by revision in life assurance reporting requirement
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 13
Note : 1 Net Interest Margin includes Net Financing Income from Islamic Banking business
2 FY10-H1FY13 based on internal data computation
NIM and COF (YoY)
Lower NIM as expected, COF up with acquisition funding partly offset by CASA growth
^ Restated with retrospective application of MFRS, where applicable
Q1FY12 ̂ Q2FY12 ̂ Q3FY12 ̂ Q4FY12 ̂ Q1FY13 Q2FY13 Q3FY13
NIM and COF (QoQ)
FY10 FY11 FY12 9MFY13
COF
NIMF
SRRF
OPRF
COF
NIMF
SRRF
OPRF
3.44%
2.68%
2.92% 2.92% 2.86% 2.91% 2.90% 2.85%
2.92%
3.04%
2.98% 2.94% 2.94%3.05%
2.95% 2.90%3.01%
2.94%
FY09 FY10 FY11 Q1FY12 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12
Cost of funds NIMCost of Fund NIM OPR SRR
3.44%
2.68%
2.92% 2.92% 2.86% 2.91% 2.90% 2.85%
2.92%
3.04%
2.98% 2.94% 2.94%3.05%
2.95% 2.90%3.01%
2.94%
FY09 FY10 FY11 Q1FY12 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12
Cost of funds NIM
3.44%
2.68%
2.92% 2.92% 2.86% 2.91% 2.90% 2.85%
2.92%
3.04%
2.98% 2.94% 2.94%3.05%
2.95% 2.90%3.01%
2.94%
FY09 FY10 FY11 Q1FY12 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12
Cost of funds NIM
2.50%2.75% 2.75% 2.75%
3.00%
3.00%
1.00% 1.00% 1.00% 1.00%
2.00%
3.00%
4.00%
Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
OPR SRR
SRR
OPR
2.50%2.75% 2.75% 2.75%
3.00%
3.00%
1.00% 1.00% 1.00% 1.00%
2.00%
3.00%
4.00%
Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
OPR SRR
SRR
OPR
3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
2.00%
3.00%
3.50%4.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
OPR SRR
3.14% 3.18% 3.19% 3.21% 3.14% 3.13% 3.15%
2.66% 2.71%2.85%
2.74% 2.71% 2.60%
2.56%
Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
Cost of funds NIM
NIM
COF
2.68%
2.92%
3.18% 3.15%2.98% 2.94%
2.74%2.63%
FY10 FY11 FY12 9MFY13
Cost of funds NIM
NIM
COF
2.25%2.75% 3.00% 3.00%
1.00% 1.00%
4.00% 4.00%
FY10 FY11 FY12 9MFY13
OPR SRR
Acquisition funding cost (RM1.0 bil) : 1 bps; Term funding raised (RM0.9 bil): 1bps
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 14
1,049.8
797.2 848.3
362.6
274.2 318.4
127.7
94.6
1,282.6
93.0
154.5
116.6 51.1 21.5
FY12 9MFY12 Personnel Establishment Mkt & Comm Admin Integration Acquisition 9MFY13
RM' MilRM' Mil
1,398.5
1,694.6
21.544.2
-1.6 -23.5 24.224.293.1
43.3% 42.0% 39.9% 40.6%44.5%
46.9% 47.3%43.2% 44.3%
44.1%
FY09 FY10 FY11 FY12 9MFY13
AMMB CTI Peer banks
Cost-Income Ratio
FY09 FY10 FY11 FY12 (restated)
9MFY13
Underlying CTI within expectations, reported CTI reflecting acquisition costs
9MFY12 Personnel Establishment Marketing & Comm Admin & others Synergistic benefit cost
Acquisitions cost 9MFY13
Expense growth drivers
Personnel & Staff Establishment Marketing & Communication Administration & Others
^ Restated with retrospective application of MFRS, where applicable
Establishment 23%
Personnel 61%
Marketing & Communication
6%
Admin & others 7%
Acquisition & synergistic benefit cost
3%
Operating Expenses % Composition (9MFY13)
43.3%42.0%
39.9% 40.6%42.4%
46.9% 47.3%
43.2%
44.3%44.5%
FY09 FY10 FY11 FY12 H1FY13
AMMB CTI Peer banks
IT cost : 15%
Synergistic benefit costs Acquisition
6.4% 16.1% 1.7% 20.1%
43.3% 42.0% 39.9% 40.6%
46.9% 47.3%43.2% 44.3%
44.1%
FY09 FY10 FY11 FY12 9MFY13
AMMB CTI Peer banks
Underlying 43.0%
44.5%
43.3% 42.0% 39.9% 40.6%
46.9% 47.3%43.2% 44.3%
44.1%
FY09 FY10 FY11 FY12 9MFY13
AMMB CTI Peer banks
Underlying CTI excluded acquisition and synergistic benefit costs Reported CTI
43.3%42.0%
39.9% 40.6%42.4%
46.9% 47.3%
43.2%
44.3%44.5%
FY09 FY10 FY11 FY12 H1FY13
AMMB CTI Peer banksPeer banks average CTI
9.0%
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 15
3.182.02 1.50 1.01
5.53
3.602.43
1.87 2.54 2.45 1.91 1.70
56.6%67.3%
75.1%
99.5%114.5% 123.7%
Net NPL Gross NPL Gross Impaired Loans Loan Loss Coverage Allowance Coverage (MFRS 139)
3.18%
0.97%0.60%
0.88%
6.2%
3.7%
2.6%
1.5%
10.4%
6.3%
4.1%
2.8%
3.81%3.33%
2.45%
2.03%
0.51%0.10%
Net Provisions Charge Net NPL Ratio Gross NPL Ratio Gross Impaired Loans Loan Loss Charge(MFRS139)
3.182.02 1.50 1.01
5.53
3.602.43
1.87 2.54 2.45 1.91 1.82
56.6%67.3%
75.1%
99.5%114.5% 121.8%
Net NPL Gross NPL Gross Impaired Loans Loan Loss Coverage Allowance Coverage (MFRS 139)
3.18%
0.97% 0.60%0.88%
6.2%
3.7%
2.6%
1.5%
10.4%
6.3%
4.1%
2.8%
3.81%3.33%
2.45%
2.38%
0.51%0.08%
FY2007 FY2008 FY2009 FY2010 Day 1 FY2011 FY2012 Q1FY2013
Net Provisions Charge Net NPL Ratio Gross NPL Ratio Gross Impaired Loans Loan Loss Charge(MFRS139)
Provisioning levels have commenced normalizing, asset quality continues to improve Asset Quality Indicators
MF
RS
139
177bps
35bps
Allowance Coverage: Retail Bkg: 82.6% Business Bkg: 153.6%
Gross Impaired Loans Retail Bkg: 2.66% Business Bkg: 0.92%
3.18%
0.97% 0.60%0.88%
6.2%
3.7%
2.6%
1.5%
10.4%
6.3%
4.1%
2.8%
3.81%3.33%
2.45%
2.38%
0.51%0.08%
FY2007 FY2008 FY2009 FY2010 Day 1 FY2011 FY2012 Q1FY2013
Net Provisions Charge Net NPL Ratio Gross NPL Ratio Gross Impaired Loans Loan Loss Charge (MFRS139)
MF
RS
139
3.18%
0.97% 0.60%0.88%
6.2%
3.7%
2.6%
1.5%
10.4%
6.3%
4.1%
2.8%
3.81%3.33%
2.45%
2.38%
0.51%0.08%
FY2007 FY2008 FY2009 FY2010 Day 1 FY2011 FY2012 Q1FY2013
Net Provisions Charge Net NPL Ratio Gross NPL Ratio Gross Impaired Loans Loan Loss Charge (MFRS139)
Gross Impaired loans
GP
3 G
P3
3.182.02 1.50 1.01
5.53
3.602.43
1.87 2.54 2.45 1.91 1.91
56.6%67.3%
75.1%
99.5%114.5%
116.3%
FY2007 FY2008 FY2009 FY2010 Day 1 FY2011 FY2012 Q1FY2013
Net NPL Gross NPL Gross Impaired Loans Loan Loss Coverage Allowance Coverage (MFRS 139)Net NPL Gross NPL
3.182.02 1.50 1.01
5.53
3.602.43
1.87 2.54 2.45 1.91 1.82
56.6%67.3%
75.1%
99.5%114.5% 121.8%
Net NPL Gross NPL Gross Impaired Loans Loan Loss Coverage Allowance Coverage (MFRS 139)
2.04%
123.5%
0.16%
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 9MFY13 Day 1
[1 April 10]
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 16
0.00%
0.50%
1.00%
1.50%
2.00%
Q1 Q2 Q3 Q4
% Write-Offs to Avg Gross Loans
0.00%
0.60%
1.20%
1.80%
Q1 Q2 Q3 Q4
% New Gross NPL / Gross Impaired Loans to Gross Loans
Note :
1 FY2004 and FY2005 financials based on gross before IIS
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
New gross impaired loans formation within expectations
Impairments caused by a previously restructured Business Banking loan
Prudently accelerated write-offs of partial provisions post system enhancements
0.00%
0.60%
1.20%
1.80%
Q1 Q2 Q3 Q4
% New Gross NPL / Gross Impaired Loans to Gross Loans
FY2004-FY2007 FY2008-FY2010 FY2011
FY2012 FY2013
GP 3
FY 2004 - FY 2007 FY 2008-FY2010 FY 2011
MFRS 139
0.00%
0.60%
1.20%
1.80%
Q1 Q2 Q3 Q4
% New Gross NPL / Gross Impaired Loans to Gross Loans
FY2004-FY2007 FY2008-FY2010
FY2011 Q1FY2012FY2012 FY2013
0.00%
0.40%
0.80%
1.20%
Q1 Q2 Q3 Q4
% Gross NPL / Impaired Loans Conversion to Gross Loans
0.00%
0.20%
0.40%
0.60%
Q1 Q2 Q3 Q4
% Recoveries to Avg Gross Loans
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 17
Loans: non-retail growing faster than industry, retail targeting viable segments
Gross Loan1 / Financing1 movement
Retail Non-Retail
6.1% 13.8%
76.3bil
6.0% 26.7% 10.7% 18.5% 2.5% 3.6% 83.3bil
42%
58%
9.2%
40%
60%
Gross Loan 9M FY12
Auto Financing
Mortgage Cards Co-Op Asset
Financing Business
Corporate & Institutional
Others Gross Loan 9M FY13
% of Composition
31.2% 19.0% 2.8% 2.0% 3.5% 20.7% 19.6% 1.2%
9M FY13 ( )
26.0 15.8 2.3 1.7 2.9 17.3 16.3 1.0
9M FY12 ( )
24.5 14.9 1.8 1.9 2.8 15.6 13.8 1.0
8.1%
No
n-reta
il R
eta
il
6.2%
Non-Retail Retail 1 Including Islamic financing sold to Cagamas Positive growth in 9MFY13 Contraction in 9M FY13
Loan portfolio 9MFY13
Fixed rate43%
Variable rate57%
Conventional75%
Islamic25%
Gross Loans9MFY12*
Auto Financing Mortgage Cards Co-Op Asset FinancingBusiness Banking (exGLR)
Corporate &Institutional Banking
Others Gross Loans 9MFY13
AmBank Cards : RM1.1bil LOC: RM0.7bil MBF Cards: RM 0.5bil
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 18
7.0 8.5
10.4
13.2 15.4
11% 12%14%
17% 19%
FY09 FY10 FY11 FY12 9MFY13
CASA CASA composition
13.9% 15.0% 13.9% 14.5% 14.5%
77.0% 77.4% 74.5% 74.0% 73.1%
0.7% 1.5% 6.9% 6.9% 7.3%1.0% 1.2% 0.6% 0.8% 1.2%7.4% 4.9% 4.3% 3.9% 3.9%
FY09 FY10 FY11 FY12 9MFY13
Improving funding composition
Equity & Debt Capital Deposits from Customers
Term Funding & loans sold with recourse > 1 yr Term Funding & loans sold with recourse < 1 yr
Deposits from Banks & FIs
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
FY06 FY08 FY09 FY10 FY11 FY12 FY13 YTD FY13 FY14 FY15 FY16 FY17 FY18 FY19+
RM'bil
Debt Capital Term Funding Loans sold to Cagamas
Issuance Maturity
Lengthening debt capital & term funding profile
1. Term funding includes Senior Notes, credit-linked notes, loans sold with recourse and other sources such as pension and retirement funds, non-profit organisations and similar
Diversified funding with well distributed debt maturities
94.9%
Improving CASA composition
Diversifying funding
Term funding, 10.7%
Individuals, 35.3%Biz
enterprises, 44.7%
Government, 9.3%
CASA composition
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 19
6.6 sen
6.6sen
7.0sen
8.0sen
10.5sen
12.0sen
13.5sen
13.5sen
13.5sen
20%
28%
40% 40% 41%
25%
Interim Dividend Final Dividend Dividend Payout Ratio
ROE ROA
EPS, Basic Sen/Share
Dividend, Gross Sen/Share
^ Restated with retrospective application of MFRS, where applicable
* Not annualised
FY09 FY10 FY11 FY12 FY12 ̂ 9MFY13 FY09 FY10 FY11 FY12 FY12^ 9MFY13 (restated) (restated) (Previously reported)
(Previously reported)
FY09 FY10 FY11 FY12 FY12̂ 9MFY13 FY09 FY10 FY11 FY12 FY12 ̂ 9MFY13 (restated) (restated) (Previously reported)
(Previously reported)
6.0 sen
11.7% 11.5%13.6% 14.1% 13.8% 14.2%
31.6sen
34.7sen
44.7sen
50.5sen
49.4sen 41.3
sen*
1.04% 1.13%1.39% 1.43% 1.39% 1.43%
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 20
Capital adequacy: Pro-forma AmBank Group Banking Entities1 Capital adequacy by legal entities2
1. Banking entities include AmBank (M) Berhad Group, AmInvestment Bank Group and AmIslamic Bank
2. 9MFY13 after deducting proposed dividend
3. Proforma double leverage ratio computed based on AMMB Holdings Bhd Company level
AMMB Holdings double leverage ratio3 1.13x
Balance Sheet leverage ratio (total equity net of deferred tax & intangible assets over total assets net of deferred tax & intangible
assets)
8.1%
Total leverage ratio (total equity net of deferred tax & intangible assets over total assets net of deferred tax & intangible
assets& Off Balance Sheet )
6.2%
Remained well positioned for Basel III & targeted payouts
Comfortable with Risk Appetite Framework Targets for regulated entities:
CET 1: 8.3% ± 1%
Tier 1 CAR: 10.3% ± 1%
RWCAR: 14.3% ± 1%
9.5%
14.4%
8.0%
12.5%
21.7% 21.7%
11.0%
15.5%
9.6%
15.9%
25.4% 25.4%
Tier 1 RWCAR Tier 1 RWCAR Tier 1 RWCAR
AmBank AmIslamic AmInvestment
FY11 FY12 9MFY13
7.7%* 8.1%* 8.0%*9.2% 9.2%
9.7%10.3% 10.2%
11.3% 11.1%
15.2%15.8%
14.4%15.7% 15.9%
FY2009 FY2010 FY2011 FY2012 9MFY2013
CET 1 Ratio Tier 1 CAR RWCAR* include preference shares
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 21
1. Executive Summary
2. 9MFY2013 Group Financial Performance
3. Outlook
4. Integration Updates
5. Divisional Strategy & Performance
6. Supplementary Information
o Strategies in more detail
o Economic landscape
o Strategic partnerships
o Others
3. Outlook
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 22
Grow deposits and improve CASA composition Increase share of wallet and main bank relationships, grow assets in profitable & viable segments Forecasting higher profit contribution for FY2013
Capitalise on ETP targeting preferred sectors (oil & gas, palm oil, construction/infrastructure) Increase penetration of corporate clients with international presence Expecting good profit growth for FY2013
Raise CASA ratio, diversify cash management services and increase utilization of trade products Enhance customer service and improve turnaround time to clients Expecting good profit growth for FY2013
Continue cross selling growth leading to increase in non interest income Capitalize on public & private sectors growth initiatives and focus on selected key sectors Anticipating increased profit for FY2013
Focus on high value ETP deals for oil & gas, infrastructure & construction New products & services for DCM, equities corporate solutions & structural products, funds management Expecting subdued performance for FY2013
Expand product range utilising Murex capabilities Enable trading for regional bonds, increase contribution of cross border transactions Expecting subdued performance for FY2013
Increase contribution of non-motor retail lines, develop business insurance and direct marketing capabilities Increase penetration of AmBank customers & renewal rate, and motor customer base Commence AmG-Kurnia integration and delivering on synergies Expecting higher growth in premium and profit for FY2013
Optimising and maximising both the volumes & profitability of bancassurance distribution Expecting profit contribution to be impacted by accounting policy changes and BNM guidelines for FY2013
Grow the Islamic contract/project financing via focus on customers awarded with ETP-related contracts Increase penetration of products and increase cross-
RETAIL*
BUSINESS*
CORPORATE & INSTITUTIONAL*
INVESTMENT*
MARKET*
GENERAL
LIFE
ISLAMIC
TRANSACTION*
* Conventional & Islamic
Outlook: profit growth for FY2013 expected circa 9 11%
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 23
FY09 FY10 FY11 FY12
(restated) ̂
9MFY2013 FY13
FY14-FY15
860.8 1,008.6 1,342.8 1,476.6 1,238.8
11.7% 11.5% 13.6% 13.8% 14.2%
43.3% 42.0% 39.9% 40.6% 44.5%**
2.6%
1.5%
3.81%
3.33%
2.45%
2.04%
8.0 sen / share
20%
10.5 sen / share
28%
18.0 sen / share
40%
20.1 sen / share
41%
7.0 sen / share
25%
PATMI* ( )
ROE (%)
CTI (%)
Net NPL ratio / Gross
impaired loans (%)
Dividend: Gross/single-
tier (sen) Payout (%)
Key performance indicators
Actual
Underlying estimates
NIM expected to contract 10 15bps
Loan loss charge expected to be circa 25 bps
Loans growth expected to grow @ 8 10%
LD ratio expected to maintain at ~90%
CASA composition at 16 18%
Non-interest income as a percentage of total income at circa 35%
Retail : non-retail loan portfolio at approximately 60 : 40
Target CET 1 of 8.3% (1%), Tier 1 of 10.3% (1%), RWCAR of 14.3% ( 1%)
*PATMI: profit after tax and non-controlling interests ** Underlying CTI: 43.0% ^ Restated with retrospective application of MFRS, where applicable
Other FY2013 underlying estimates
9 11%
9 12% CAGR
14 14.5% 14 15%
40-50% Payout
40-50% Payout
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 24
Summary
Good 9MFY2013 performance, on track to achieve FY2013 estimates
Recent acquisitions to drive synergistic benefits progressively
Exploring new strategic options for AmLife & AmTakaful
Fully committed to FY2013 2015 strategic priorities:
Accelerate growth & business mix changes Strengthen customer centricity & connectivity Increase productivity and efficiency Acquire & integrate in-fill acquisitions and strategic tie-ups
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 25
1. Executive Summary
2. 9MFY2013 Group Financial Performance
3. Outlook
4. Kurnia acquisition updates
5. Divisional Strategy & Performance
6. Supplementary Information
o Strategies in more detail
o Economic landscape
o Strategic partnerships
o Others
4. Integration updates
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 26
Deal highlights
AmLife deliver on transformation to enhance bancassurance business and continue to restructure our agency force
AmTakaful capitalize on the growth opportunities in the Takaful segment
AmLife & AmFamily Takaful: now a 100% owned subsidiaries
On 4 Jan 2013, AMAB1 acquired the remaining 30% equity interest each in AmLife2 & AmTakaful3 held by Friends Life
Cash consideration of RM245 mil o Valuation based on aggregated net assets of AmLife &
AmTakaful of RM487 mil as at 30 Sep 2012
Friends Life will continue to provide technical support to AmLife & AmTakaful over an agreed period of time
AmFamily Takaful Berhad
AmLife Insurance Berhad
AMMB Holdings Berhad
100%
AMAB Holdings Sdn Bhd
Full control to pursue opportunities unique to
AmBank Group
Continued support from Friends Life
Strategic Considerations
& Next Steps
AmLife & AmTakaful now a wholly owned subsidiary
JV with Friends Life acquisition of 30% shareholding for RM170mil;
AmTakaful Friends Life has 30% shareholding (RM30 mil)
partnership with AMMB
1. AMAB AMAB Holdings Sdn Bhd, a wholly owned subsidiary of AMMB 2. AmLife AmLife Insurance Bhd 3. AmTakaful AmFamily Takaful Bhd
100% 100%
Exploring strategy options to grow Life & Takaful business New opportunities
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 27
Significantly Addresses Partially Addresses Partially Addresses
Our approved strategic aspirations have not changed... AmG remains committed to building an industry leadership position, under-pinned by Motor scale and supported by growth in Commercial and Personal Lines.
Kurnia
Building a performance culture led by a top quartile performing management team
Delivering industry-leading systems, operational excellence and superior
customer service
Building best-practice customer database management & marketing techniques
Be the Number 1 in Motoring Customers
Lead in Chosen Niche Commercial Segments Lead in Non-Motor Personal Lines
On 26 Sep 2012, AmG1, 51% owned subsidiary of AMMB, acquired 100% equity interest in Kurnia2
Cash purchase price of RM1.627 bil (Base price of RM1.55 bil, increased in net assets of Kurnia of RM77 mil RM836 mil as at the completion accounts (30 Jun 2012) vs. RM759 mil as of 30 Jun 2011)
Valuation: Implied Price to Book of 1.95x based on 30 Jun 2012 net assets
51% capital injection by AMMB to AmG, funded by existing internal cash resources, supplemented by approximately RM500 mil of senior debt issued in Aug 2012
Deal Summary & Valuation
1. AmG Insurance Bhd 2. Kurnia Insurans (Malaysia) Berhad
Strategic Alignment: The Kurnia Acquisition Contributes To The Achievement Of These Strategies
ability to Address Strategy
Achieves GWP Aspirations
Creates Dominant Scale Player
Reduces Margin Pressures
Diversification
Meeting future industry challenges
Kurnia Responds to Numerous Strategic Imperatives
https://www.kurnia.com/malaysia
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 28
Total Headcount reduction
A Procurement B Corporate recharge
C Rationalisation
50
15.5
14.5
10.5
9.5
D
31% 29% 21% 19%
Synergies Percent Description No material
redundancies during integration period
Headcount reduction largely achieved through natural attrition
Leverage scale of the enlarged business
Cessation of annual service fee paid to parent company
Rationalisation of shared assets and services (e.g. branch footprint, network charges, etc.)
Gradual ramp up in attainment of synergies
Esti
mate
d
RM
mil p
er
ye
ar
Synergies: Estimated Annual Savings of RM50 mil from Year 2 onwards R
EC
AP
:
UP
DA
TE
S:
Headcount reduction: good progress, attrition levels in line with synergy realisation
o Majority of headcount reduction is from aligning Distribution teams, remainder from various support teams
Procurement: Scheduled to commence in March, will take 18 months
o Claims procurement synergies are a result of increasing the efficiency in settling claims
Rationalization: Mainly relates to branch rationalisation, remainder is IT procurement & admin savings
o Joint shared service model announced and will take effect in March
o IT procurement savings commenced with RM1.5m locked in to date
o Consolidation of branch network underway, to be completed by end of 2013
4 major source of synergies contribute to estimated annual savings of RM50 million from year 2 onwards
https://www.kurnia.com/malaysia
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 29
Summary
Integrating Kurnia
Expected outcome
Low transition risk a business AmG
Detailed integration plans developed, integration progress on track
o AmG business to Kurnia legal entity
o Relocated headquarters to Menara Kurnia, consolidation of branch network underway
o Commenced centralisation of AmG branch operations
Synergistic benefit cost of RM42 mil support accelerated move to one core system
Dual branding strategy Kurnia
Full integration by 2014
Sustainable #1 position in motor
Maintain two of the strongest general insurance brands in the industry
Deliver synergy targets and improved profitability
Consolidate market leading practices (i.e. claims management, policy processing, customer service and agent relationship management)
Maximise renewals amongst our existing customer-base
Leverage our large existing motor customer-base to cross sell non-motor personal lines
Intensify recruitment of profitable agents
Strengthen relationship and support to the Group
Key Focus Beyond Vesting
https://www.kurnia.com/malaysia
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 30
MBF Cards: A merchant leader in card business
Acquired 100% equity of MBF Cards ( and 33.33% equity of Bonuskad
Cash consideration of RM641.4 mil
o base price of RM623.4 mil, increased in NAV of MBF Cards of RM219.2 mil as at completion date 30 Nov 2012 vs. benchmark NAV of RM207.2 mil as at 31 Dec 2010, and share of earnings of Bonuskad of about RM6 mil from 1 Jan 2011 until 30 Nov 2012
3 Dec 2012 Legal Day 1
Funded by existing internal cash resources, supplemented by ~RM500 mil senior debt issued in Aug 2012
EPS accretive within 12 18 months from acquisition
MBF Cards MBF Cards ( ) Sdn Bhd; Bonuskad Bonuskad Loyalty Sdn Bhd
Acquiring business: Creates Top 3 merchants (from 11th position) acquiring business with >45,000 merchants-in-force
Cards receivables: Strengthens market position at #6, combined cards receivables ~ RM2.3 bil
Access to Bonuslink database of 7 million cardholders & 3 million merchant base
Full control over LOC business
Accelerate growth from recurring non-interest income, provides for CASA growth & cross-selling opportunities
Estimated integration: 12 months
AmBank Cards & MBF Cards integration taskforces initiated, communication plans in progress
Internal control measures implemented
Pending vesting, business as usual (BAU) for both AmBank Cards & MBF Cards
Recap:
Deal highlights
Strategic Fit:
Improved profitability,
scale & growth
Integration in progress
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 31
MBF Cards: Integration to last about 1 2 years
End Jul 2012
BNM submission
3Qtr 2012
PMI commencement
Establishing integration team PMO, communication
& execution
Strategic direction, vision & synergies
Detailed integration plan: 100 day plan
IT system assessment
Phase 1 Phase 2 Phase 3 Phase 4
2
3
3 Dec 2012
Legal Day 1
4
Execution of 100 day plan Continued integration, synergies & monitoring
2Qtr 2013
Vesting Day 1
5 4Qtr 2013
Operational Day 1
System Day 1
6
Indicative timeline
Acquisition Integration Planning 100 days
integration 100 days+ integration
Ongoing execution
10 Jul 2012
Signed SPA
Continued integration & refinements
1
Note: Operational Day 1: all operational functions are fully integrated System Day 1: all systems are integrated into a Single Platform
Today
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 32
0 6
17
0.5
13
26
Year 1 Year 2 Year 3
Revenue synergies Cost synergies
Project office &
consulting, 21%
Technology, 22%
Marketing & branding,
16%
Human Capital,
40%
Others, 1%
MBF Cards: financial implications and synergies benefits
Revenue synergies mainly from CASA & cross selling
Cost synergies mainly from cost of funding savings, network rationalisation, marketing, human capital (benefits harmonisation & staff natural attrition)
Targeting circa RM43 mil synergies by Year 3 Breakdown of integration cost
Estimated total integration cost of RM51 mil to deliver synergies
Consulting project office & consulting resources
Technology upgrading & integrating IT system
Human capital harmonisation of salary & benefits
Gross Revenue & Cost Synergies Estimates*
15% is capitalised
* Gross synergies estimates before netting off synergies capture cost including harmonisation cost
19
43
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 33
1. Executive Summary
2. 9MFY2013 Group Financial Performance
3. Outlook
4. Integration Updates
5. Divisional Strategy & Performance
6. Supplementary Information
o Strategies in more detail
o Economic landscape
o Strategic partnerships
o Others
5. Divisional Strategy & Performance
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 34
Vision
Our Vision and divisional aspirations
* Conventional & Islamic
TRANSACTION*
Become Top 5 Transaction
Banking Service Provider
in Malaysia by FY2015 with 8% market share
CIB*
Deliver innovative & quality solutions,
high-profile
and high-value clients and
leverage ANZ for x-border businesses
ISLAMIC
To be the Islamic Bank of choice
INVESTMENT*
Deliver comprehensive solutions, lead in capital markets,
funds management, stock broking and enhance domestic
and overseas distribution
via ANZ
MARKETS*
Deliver substantive, integrated and
client-led business with full suite of FX,
Rates, Commodities
and FI offerings with ANZ
collaborations
FAMILY TAKAFUL
To be the trusted Family Takaful Operator of
choice within all of our
selected markets
LIFE ASSURANCE
Trusted by our stakeholders
GENERAL INSURANCE
Leverage scale to lead the market in the
motoring segment, whilst building
a leading personal lines
portfolio and niche commercial business
DIVISIONAL ASPIRATIONS
RETAIL*
Develop a liability-led business,
grow assets in targeted segments & expand Wealth
Management
BUSINESS*
Growing the business through decisive
execution
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 35
9MFY13 vs RM'mil 9MFY12* 9MFY13 9MFY12
Income 1,345.4 1,379.4 +2.5%
Expenses 572.2 596.3 +4.2%
PBP 773.2 783.1 +1.3%
Provisions 268.0 199.6 -25.5%
PBT 505.2 583.5 +15.5%
PAT 378.9 437.6 +15.5%
Gross Loans / Financing 45,924.1 48,735.6 +6.1%
Gross Impaired Loans 2.66% 1,225.9 1,296.2 +5.7%
Customer Deposits 33,463.8 35,149.1 +5.0%
CASA Deposits 8,591.3 9,682.9 +12.7%
ROA 1.11% 1.23% +0.12%
CTI 42.5% 43.2% +0.7%
Allowance Coverage 82.8% 82.6% -0.1%
PATPBPExpensesIncome
Develop a liability-led business, grow assets in targeted segments and expand Wealth Management
Composition to Group 42.8% 44.7% 34.4% 43.9%
Expanded fee based income via wealth propositions and stronger loans & deposits growth
Stronger loans growth compared to previous quarters, continue to target profitable segments
Steady growth in CASA up 12.7%
On going price competition on some segments creating margin compression
MBF Cards performance integrated into
9MFY12 results Positive growth in 9MFY13 Contraction in 9MFY13
* Restated with retrospective application of MFRS, where applicable
Retail Banking: Higher profits from improved asset quality and stronger loans growth
- -0.2%
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 36
Higher income underpinned by good asset growth and higher fee income
Strong CASA growth
Expanding new customer base and capitalising Transformation Programme (ETP)
Expenses PBP PATIncome
Composition to Group 14.9% 5.6% 22.3% 21.2%
Income mix for 9MFY13
Business Banking: Higher income and strong loans and deposits growth
Growing the business through decisive execution
* Restated with retrospective application of MFRS, where applicable
9MFY12 results Positive growth in 9MFY13 Contraction in 9MFY13
Lending & deposits,
71%
Trade Services &
Cash Mgmt, 28%
Others,1%
RM'mil 9MFY12* 9MFY13
Income 414.2 469.6 +13.4%
Expenses 75.7 78.8 +4.1%
PBP 338.5 390.8 +15.5%
Provisions 115.4 32.3 -72.0%
PBT 223.1 358.5 +60.7%
PAT 168.4 269.8 +60.2%
Gross Loans / Financing 15,605.1 17,276.5 +10.7%
Gross Impaired Loans 0.92% 371.1 158.7 -57.2%
Customer Deposits 7,604.3 8,406.7 +10.6%
CASA Deposits 2,355.0 2,830.8 +20.2%
ROA 1.56% 2.15% +0.59%
CTI 18.3% 16.8% -1.5%
Allowance Coverage 96.8% 153.6% +56.8%
9MFY13 vs
9MFY12
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 37
Income Expenses PBP PAT
Higher income growth underpinned by strong growth in lending, deposits and transaction banking
Focused on growing share of wallet in key segments driving income growth
Services include : large corporate lending& deposits, financial institutions group, offshore banking, transaction banking, private equity, REITs and trustee services
Corporate & Institutional Banking: Continued strong income and deposits growth
Composition to Group 4.4% 20.0% 25.5% 13.1%
Income mix for 9MFY13
Deliver innovative and quality
-profile and high-value clients and leverage ANZ for x-border businesses
* Restated with retrospective application of MFRS, where applicable ^ Include deposits and placements of banks and other financial institutions
^
Lending & deposits,
65%
Offshore Banking, 7%
Asset Mgmt, 9%
Trade Services &
Cash Mgmt, 19%
9MFY12 results Positive growth in 9MFY13 Contraction in 9MFY13
RM'mil 9MFY12* 9MFY13 9MFY12
Income 288.1 412.4 +43.1%
Expenses 55.5 61.5 +10.8%
PBP 232.6 350.9 +50.9%
Provisions 4.2 (64.9) ->100.0%
PBT 228.4 415.8 +82.0%
PAT 178.7 323.7 +81.1%
Gross Loans / Financing 13,781.4 16,335.7 +18.5%
Total Deposits 34,924.1 40,842.6 +16.9%
ROA 1.69% 2.62% +0.93%
CTI 19.3% 14.9% -4.3%
Ave Assets Management 1,535.4 1,691.6 +10.2%
9MFY13 vs
G
G
G
G
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 38
Improved contributions from funds management and private banking providing strong recurring income, partly offset by lower income from DCM and CF due to smaller deals size
Decline in stock broking and equity derivatives contribution with lower trading volumes and yields from increased competition
Income Expenses PBP PAT
Investment Banking: Subdued performance with stable outlook
1 Including AmInvestment Management, AmInvestment Services, AmIslamic Funds Management & private banking Source : Malaysia Association of Asset Management & Lipper Hindsight
Composition to Group 8.3% 4.3% 3.8% 13.2%
Income mix for 9MFY13
Deliver comprehensive solutions, lead in capital markets, funds management, stock broking and enhance domestic & overseas distribution via ANZ
* Restated with retrospective application of MFRS, where applicable
9MFY12 results Positive growth in 9MFY13 Contraction in 9MFY13
Debt Cap Mrkt, 8%
Corporate Finance,
10%
Equity, 3%
Broking & Futures,
23%
Fund Mgmt, 37%
Private Banking,
9%
Int Biz, 10%
RM'mil 9MFY12* 9MFY13
Income 323.6 260.6 -19.5%
Expenses 179.2 184.7 +3.1%
PBP 144.4 75.9 -47.4%
Provisions 2.6 3.4 +30.8%
PBT 141.8 72.5 -48.9%
PAT 104.6 47.7 -54.4%
CTI 55.4% 70.9% +15.5%
* Ave Assets Management 30,673.5 36,366.8 +18.6%
Ave Volume / Contract Traded (RM'mil/month)
Bursa M'sia 69,742.5 66,342.4 -4.9%
Future KL index (FKLI) 419.3 354.3 -15.5%
* IB Broking 4,268.4 4,405.4 +3.2%
* AmFuture - FKLI 66.9 27.0 -59.6%
Market Share as at:
* IB Broking 6.1% 6.7% +0.6%
* AmFuture -FKLI 14.9% 7.6% -7.3%
9MFY13 vs 9MFY12
1
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 39
RM'mil 9MFY12* 9MFY13
Income 357.0 222.4 -37.7%
Expenses 52.9 55.5 +4.9%
PBP 304.1 166.9 -45.1%
Provisions (9.2) (9.2) = +0.0%
PBT 313.3 176.1 -43.8%
PAT 235.1 132.3 -43.7%
CTI 14.8% 25.0% +10.1%
PAT : FX and Derivatives 50.6 53.4 +5.5%
Financial assets HFT 8,750.8 8,400.8 -4.0%
Financial investments
AFS 1,818.0 2,252.8 +23.9%
Total Group:
Financial assets HFT 9,231.3 9,399.8 +1.8%
Financial investments
AFS 4,831.1 6,027.5 +24.8%
Financial investments
HTM 130.3 2,623.3 +>100.0%
9MFY13 vs
9MFY12
Income Expenses PBP PAT
Lower income was attributed to:- o Persistent global uncertainties and flattish
yield curve hampered opportunities o Lack of primary origination bond transactions
Streamlining processes for greater synergies and operational efficiency, including new products rollout
Continue to diversify income streams to avoid over reliance on trading
Markets: Performance impacted by continued volatility in market
Composition to Group 4.0% 9.5% 10.4% 7.1%
Income mix for 9MFY13
Deliver substantive, integrated and client-led business with full-suite of FX, Rates, Commodities and FI offerings with ANZ collaborations
* Restated with retrospective application of MFRS, where applicable
9MFY12 results Positive growth in 9MFY13 Contraction in 9MFY13
Fixed Income, 52%
Foreign exchange,
30%
Derivatives, 18%
24.9%
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 40
Income Expenses PBP PAT
General Insurance: Improved performance, commence Kurnia integration
Income growth from improved underwriting profits, focusing on both motor & niche general insurance segments
Lower claims as a result of enhanced claims management process and more stringent underwriting controls (e.g. restructuring and centralisation of claims operations)
Positive capital adequacy ratio exceeds benchmark supervisory target
3 months performance integrated into general insurance
Composition to Group
Leverage scale to lead the market in the motoring segment, whilst building a leading personal lines portfolio and niche commercial business
* Restated with retrospective application of MFRS, where applicable ^ Kurnia assets integrated into general insurance total assets ** Represent October December period 9MFY12 results Positive growth in 9MFY13 Contraction in 9MFY13
8.0% 7.6% 8.4% 7.8%
RM'mil 9MFY12* 9MFY13
Income 148.0 245.2
Expenses 62.9 112.0
PBP 85.1 133.2
Provisions - 3.5
PBT 85.1 129.7
PAT 64.4 106.9
CTI 42.5% 45.7%
Total assets 1,257.5 4,389.1
AmG
Claim ratio 64.9% 62.5%
Expenses ratio 14.7% 14.9%
Combined ratio 89.7% 89.4%
Kurnia Q3FY12** Q3FY13**
Claim ratio 74.3% 61.4%
Expenses ratio 22.8% 20.1%
Combined ratio 104.2% 90.9%
AMBANKGROUP GROUP INVESTOR RELATIONS & PLANNING INVESTORS PRESENTATION 9MFY2013 41
Income PAT
Life Assurance**: Results reflecting revisions to reporting requirements
Transfer from life business reflected the revisions in reporting requirements, from change in classification of Non-Par fund and reserves from liability to equity
Driving growth to become a leading insurance player and to leverage AmBank
-quality platform
Targeting attractive segments through a
Optimising life agency and other channels and aligning life products to target segments and delivering margin expansion
Composition to Group -3.1% -1.1%
Trusted by our stakeholders
* Restated with retrospective application of MFRS, where applicable
9MFY12 results Positive growth in 9MFY13 Contraction in 9MFY13