Debt Investor Presentation

Transcription

AmBank (M) Berhad Group
AMMB Holdings Berhad
DEBT INVESTOR PACK:
RM7.0 BILLION SENIOR NOTES ISSUANCE PROGRAMME
25th FEBRUARY 2010
Agenda
•
•
•
•
Overview & strategy
9MFY2010 Results summary
Conclusion
Highlights of RM7.0 billion Senior Notes
Issuance Programme
Appendix:
i.
ii.
iii.
Capital, Funding, Liquidity & Government Guarantee
Business highlights
Corporate info (rating, structure)
AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK, 25th FEBRUARY 2010
1
AmBank Group Snapshot
•
Proud banking heritage spanning
over 30+ years
•
A top 20 listed company on the
Bursa Saham Malaysia (market cap
~RM15.07 billion) & rank 188
(global 1000 banks by market cap)
•
Top 4 largest listed banking group
(market cap) in Malaysia with
diversified business fundamentals
•
Well capitalized with Tier 1 CAR of
9.8% and total RWCAR of 15.3%
•
ANZ, our strategic partner, one of
only 11 AA rated banks in the
world
AmBank Group, Gross Loans : RM’bil
11.1%
2
On track to deliver revised improved FY2010 earnings guidance
Staying Ahead
Business Segment
Performance
Capital, Risk
& Funding
Priorities
for 2010
 Sound 9MFY2010 performance
 Higher revenues
 Better-than-expected loans growth
 Higher FY2010 PATMI guidance ( ≥ RM950 mil)
 Key focus: Medium Term Aspirations (MTA)




Sound Divisional profits
Investment Banking : capital market recoveries
Assurance : diversified portfolio in Life and General
Better asset quality : higher LLC and lower NPL
 Well capitalized (Tier 1 CAR: 9.8% , RWCAR : 15.3%)
 Proactive risk management
 Implement FTP, ALM disciplines, Basel II and FRS





Profitable growth, diversification and rebalancing focus
Dynamic focus : volume vs price trade offs & asset quality
Leverage market leading positions & capital markets recovery
Medium term : target cost efficiencies, continue investments
Longer term plans : to disclose during FY2010 results
3
Strong 9MFY2010 results, sets good foundations for FY2010
AmBank Group
(AMMB Holdings Berhad)
9MFY09
9MFY10
Change
Q2FY10
Q3FY10
Risk, Capital &
Funding Profile
Growth
Performance
Underlying PATMI
growth : 17.2%
Profit after Tax & MI
681.0 mil
766.9 mil
12.6%
240.2 mil
268.5 mil
12.4%
11.9%
-0.5%
11.1%
11.6%
33.2 sen
35.4 sen
6.6%
32.9 sen
35.3 sen
Net Lending / Financing
55,997 mil
63,873 mil
14.1%
60,437 mil
68,873 mil
Customer Deposits
59,523 mil
66,787 mil
12.2%
65,302 mil
66,787 mil
CASA
6,727 mil
8,228 mil
22.3%
7,611 mil
8,228 mil
2.7%
1.8%
-0.9%
2.2%
1.8%
RWCA
13.0%
15.3%
2.3%
15.7%
15.3%
Tier 1
7.9%
9.8%
1.9%
10.1%
9.8%
LD Ratio
94.1%
95.6%
+1.6%
92.6%
95.6%
ROE
EPS
(basic, annualised)
Net NPL / NPF Ratio
4
What is ahead …
Malaysia: Cautious but
optimistic
Industry :
What is Ahead
AMMB: Tailwinds emerging
but risks linger
 Increasing global optimism but risks linger
 Gradual Malaysian economic recovery
 GDP : 2009 : -2.5% , 2010 +3.5%
⁺ Fiscal spending (RM 67 billion)
⁺ Monetary policies, better-than-expected exports
 Progressive interest rate hike commencing early 2010
 Higher lending & RWA growth : government spend, private
consumption
 Competition: strong and some irrational pricing
 Upside : Capital market recoveries
 BIS / BASEL III discussion to intensify





Strategic themes provided resilience
Leverage economic upturn in 2010
Full MTA achievement delayed : BIS/BASEL requirements
Enhanced risk, governance and systems
Group support from ANZ, our strategic partner
5
Strategic framework and MTA (medium term aspirations)
• Strategic framework and
• MTA (medium term
aspirations)
Diversify
De-risk + Diversify
High
Strategic focus :
• Maintain viable growth
Moderate
• Rebalancing focus
Low
Differentiated Growth
De-risk
(ISLAMIC AND
CONVENTIONAL BANKING)
6
Strategy & outlook for FY2010 refined for improving market conditions









Maintain profitable growth and rebalancing focus via executing to our strategic agenda
Income diversification, cost management, deposit growth and enhanced risk disciplines key priorities for FY2010
Position business for potential economic recovery towards beginning 1Q2010
Currently evaluating medium to long term strategic plans and options
Maintain asset growth focus on profitable segments whilst growing deposits
Expect higher income growth from historical fixed income assets (under FTP)
Expect increased delinquencies & credit costs, though lower than previously anticipated
Enhanced focus on risk management and collections
Expect minimal profit growth for FY2010







Focus on building a sustainable asset base targeted towards stronger industry segments & with
greater diversification
Proactively manage existing accounts to mitigate higher risk of default
Enhance focus on deposits & transaction based fees
Expect rapid FY2009 profit growth to moderate in FY2010
More stable economic environment with equity and debt market activities improving
Focus on core expertise in advisory & capital market activities
Expect rising profit performance over FY2009
Corporate &
Institutional Banking




Focus on project financing with government support, GLC’s and large MNC’s
Deepen customer relationships to generate fee incomes & advisory mandates
Enhance focus on capital efficient business growth & loan pricing to reflect economic risks
Expect an improved profit performance over FY2009
Assurance
General
Life


Stable profits, & MAA business acquisition if proceeded with, will bring in synergies later
Expect good growth via revenue increase & efficiency improvements over FY2009
Markets
Biz



Focus on reducing volatile exposures & diversifying revenues
Market disruption not expected to recur leading to improved fixed income profit performance
Expect Markets FX and Derivative businesses to contribute to income growth


Implement retail tools including 3G scorecards, PD & LGD models
Implement new non-retail PD, EAD and LGD models, financial spreading tool & security
indicators (collateral management)
Implement new FTP & ALM disciplines, Basel II, FRS requirements & review adoption of the
proposed BIS/Basel III capital & liquidity framework (2012)
Overall
Retail Banking
Business Banking
Investment Banking
Risk & Financial
Governance

Note :
Modifications made to previous strategy and outlook are in “italics”
7
On track to deliver revised improved FY2010 earnings guidance
AmBank Group (AMMB Holdings Berhad)
FY 07
PATMI
ROE
FY 08
FY 09
9MFY 10
Reported :
-RM282.5 mil
Underlying :
RM556.9 mil
Reported :
RM668.5 mil
Underlying :
RM837.4 mil
Reported :
RM860.8 mil
Underlying :
RM840.7 mil
Reported :
RM766.9 mil
Underlying :
RM777.9 mil
Reported : -5.8%
Underlying : 10.2%
Reported : 11.5%
Underlying : 12.7%
Reported : 11.7%
Underlying : 11.4%
Reported : 11.9%
Underlying : 12.0%
FY 2010
Medium Term
Aspirations (MTA)
≥ RM950 mil
~ 12% - 15% CAGR
Previously RM800 – 900mil
circa 11.5%
Previously 11%
CTI
Reported : 37.1%
Reported : 39.6%
Reported : 43.0%
Reported : 40.8%
42% - 43%
FY2012 :
circa 15%
MTA : 17–20%
circa 40%
Previously 45%
Net NPL
Ratio
Reported : 6.2%
Reported : 3.7%
Reported : 2.6%
Reported : 1.8%
2.0% - 2.5%
FY2012 : 2 - 3%
MTA : below
system
Previously 4%
Dividend
gross /
payout
5.0 sen / share
(loss year)
6.0 sen / share
18.3%
8.0 sen / share
19.0%
N/A
≥ 10.0 sen / share
Payout % ≥ system
average
Note:
Underlying performance of PATMI and ROE for FY07 and FY08 adjusted for one-off impacts including restatement as if AmInvestment Group Berhad was a 100%-owned entity of AMMB
MTA: exclude adoption of new proposed capital framework (BIS / Basel III – 2009) in 2012
8
AmBank (M) Berhad Group:
9MFY2010 Results summary
9
Growth
Performance
AmBank (M) Berhad Group: Commendable financial performance
FY06
FY07
1,941 mil
1,943 mil
2,214 mil
2,439 mil
Profit after Tax & MI
(PATMI)
238 mil
(362) mil
466 mil
701 mil
ROE
7.2 %
Total Income*
FY09
9M FY09
9M FY10
1,770mil
2,191 mil
566 mil
-10.8 %
13.6 %
13.8 %
15.8 %
16.5 %
56,409 mil
62,047 mil
64,725 mil
84,342 mil
81,212 mil
88,971 mil
Net Lending / Financing
40,737 mil
43,466 mil
47,950 mil
56,740 mil
55,335 mil
63,570 mil
Customer Deposits
32,495 mil
37,136 mil
41,536 mil
63,947 mil
50,669 mil
67,327 mil
4,498 mil
5,320 mil
6,249 mil
6,750 mil
6,720 mil
8,222 mil
9.1 %
6.2 %
3.6 %
2.6 %
2.8 %
1.8 %
RWCA
12.2 %
10.3 %
13.1 %
14.6 %
12.6 %
14.9 %
Tier 1
7.1 %
5.9 %
7.1 %
9.3 %
7.5 %
9.4 %
125.4 %
117.0 %
115.4 %
88.7 %
109.2 %
94.4 %
Net NPL / NPF Ratio
LD Ratio
• Driven by revenue
growth
600 mil
Total Assets
CASA
Risk & Capital
FY08
• Balance sheet
increase in FY09
due to vesting the
majority of
AmInvestment’s
fund-based assets
(RM13b) and loans
(RM4b)
• NPL close to
system average
• Stronger capital
base to meet
ensuing challenges
and support
growth
Note *: Total income excludes profit equalization reserves (PER)
Source: Financial numbers not restated with latest available comparatives
10
AmBank (M) Berhad Group : Sound profit growth, with conservative provisioning
Business Performance
Income :
 Retail and Business Banking recorded good growth in
incomes
 Recovery in capital and equity markets contributed to
higher investment and trading incomes
Expenses:
 Reflects salary and staffing increases, additional bonus
accrual, ongoing medium term investments and CPI, but
within CTI targets
Provisions :
 Higher GP – stronger loans growth
 Pro-active provisioning to account for potential lag effects
of economic downturn
 Provisions include PER, impairment losses and provisions
for commitment and contingencies
9MFY09 results
Favourable growth in 9MFY10
Unfavourable growth in 9MFY10
11
AmBank (M) Berhad Group: Improved PATMI
PATMI: Growth contributed by all business divisions except CIB
RM'mil
Retail Banking Division
Business Banking Division
Corporate & Institutional
.Banking (CIB)
3
Operating Segments :
.Reported PATMI
9MFY10 vs
9MFY09 Business Performance
9MFY09
9MFY10
489.5
520.1
+6.3%
(15.0%)
93.2
100.3
+7.7%
(7.0%)
58.9
46.4
-21.2%
(75.3)
(66.4)
+11.8%
1(78.0%)



G
2
Net Assets : Growth contributed by CIB and Business Banking
Focus on profitable segments
Business Banking recorded lower
provisions
CIB impacted by higher general provisions
on stronger lending performance
PATMI composition at AmBank Group level:
Retail Banking
: 61.9%
Business Banking
: 11.9%
Investment Banking
: 11.9%
Corp & Institutional Bkg
: 7.5%
Assurance
: 6.8%
G

Retail focus on preferred viable segments
in a highly competitive environment

Business and SME growth focusing on
more stable sectors
G
 CIB’s growth focusing on project
financing with government support,
GLC’s and large MNC’s
9MFY09 results
Favourable growth in 9MFY10
Unfavourable growth in 9MFY10
1
2
3
Bracket denotes composition of contribution to PATMI by business segment
Net Assets : net lending & net financing (net of IIS, SP and GP)
Operating segments include group treasury and markets, loan rehab units, shareholders fund, corporate & share
services
12
Better asset quality and decreasing quantum of historical issues
Gross NPL/NPF by Segments
Gross NPL / NPF by Segments
3.3
2.8
2.3
1.8

Stable NPL level despite
economic stresses from the
recent global financial
downturn

“Continuing business” NPL’s
better than system levels

Historical business gross NPL’s
constitute circa 23% of the
total portfolio
1.3
0.8
0.3
3.05 1.73 1.68 1.65
1.78 1.28 0.64 0.50
0.34 0.30 0.00 0.00
0.36 0.29 0.09 0.09
Retail
Business
Credit & Leasing
Investment / Corporate
Banking
-0.2
RM'bill
Mar 2007
Mar 2008
Mar 2009
Dec 2009
Non-Performing Loans/Financing
Non-Performing Loans / Financing
3,000
NPL ratio
2,400
1,800
3.5%
3.0%
2.7%
2.5% 2.1%
1.7%
42.5% 22.5% 23.2%
23.1% 12.1% 2.9%
1,200
600
-
RM' mil
1,859 1,706 1,728
1,314 1,162 1,100
Gross NPL
Net NPL
506
710
Gross NPL
Continuing Business
Mar 08
1,743 720
343
50
Net NPL
Historical Business
Mar 09
Dec 09
Note :
1
“Historical” NPL’s comprise legacy non-performing loans from entities acquired by the Group prior to and during 2002, and Arab-Malaysian Credit Berhad
13
AmBank (M) Berhad Group: Lower new gross NPL/NPF formation,
recoveries, write-offs and conversions
% New Gross NPL/NPF to Gross Loans /Financing
% Gross NPL/NPF Conversion to Gross Loans/Financing
2.40%
2.00%
1.80%
1.60%
1.20%
1.20%
0.80%
0.60%
0.40%
0.00%
0.00%
Q1
Q2
Q3
Q4
Q1
Q2
Q1
Q2
Q3
Q4
Q1
Q2
% Recoveries to Avg Gross Loans/Financing
Q3
Q4
Q3
Q4
Q3
Q4
% Write-Offs to Avg Gross Loans/Financing
2.00%
0.60%
1.50%
0.40%
1.00%
0.20%
0.50%
0.00%
0.00%
Q1
FY2006-FY2007
Q2
FY2008
Q3
FY2009
Q4
Q1
Q2
FY2010
14
AmBank (M) Berhad Group: Improving trends on NPL/NPF
ratios & loan loss coverage despite recent economic
challenges
Asset Quality Indicators
15.0
54.9%
65.5%
74.8%
92.6%
34.1%
100.0%
50.0%
10.0
0.0%
-50.0%
3.9
2.9
5.0
-100.0%
1.8
1.5
5.0
1.1
4.8
-150.0%
3.0
2.4
2.2
FY2008
FY2009
9MFY2010
Net NPL
Loan Loss Coverage
FY2008
FY2009
-
-200.0%
FY2006
FY2007
Gross NPL
FY2006
12.0%
FY2007
• Proactive collection
activities
• Tightened risk
assessment
• Led by experienced
team
9MFY2010
11.2%
10.0%
9.9%
9.1%
8.0%
6.0%
6.2%
5.8%
3.3%
3.6%
4.1%
4.0%
2.0%
2.6%
1.8%
1.2%
0.6%
3.4%
Gross NPL Ratio
1.8%
0.9%
Net NPL Ratio
Net Provisions Charge
0.0%
FY2006
FY2007
Net Provisions Charge
FY2008
FY2009
Gross NPL ratio
Net NPL ratio
9MFY2010
15
AmBank (M) Berhad Group: Focus on viable segments
and diversification
Gross Loans/Financing movement (before netting Islamic financing sold to Cagamas)
37.0%
Business / Corporate (33%)
Retail (66%)
Loan Composition %
19.8%
3.5%
3.1%
1.4%
1.4%
16.9%
13.6%
2.2%
1.2%
25
24.4
15.6%
12
20
11.2
132.9%
9.5%
15
9
13.0
9.0
• Retail: targeting profitable
segments
24.2
6
10
12.4
5
17.0%
5.5%
1.5%
10.4%
2.3
0
Auto Financing
Mortgage
RM' bil
2.0
2.1
2.2
0.9
0.9
0.9
1.0
Asset Financing
Credit Cards
Line of Credit
Dec-09
Mar-09
1.4%
3
23.7%
1.4
4.5
1.8
0
Personal Loans
to civil servants
Business Banking
(ex GLR)
Corporate &
Institutional
Banking
Business & CIB
loan rehab
• Business & Corporate:
harness synergies via
deepening customer
relationships
Others
Individuals
By Customer Type
10.0
By Interest Rate
62.0%
%
10.5%
SME
FY2006
FY2007
FY2008
FY2009
9MFY2010
Fixed Rate
69%
66%
66%
60%
57%
Variable Rate
31%
34%
34%
40%
43%
26.1%
Business
Dec-09
16
AmBank (M) Berhad Group: Positive income trends
Total Income
Gross Loans/Financing & NIM/NFM
3.48%
90
800
730.2
3.02%
609.7
553.5
600
2.81%
70
59.5
402.6
400
2.82%
66.0
485.9
476.2
50
169.2
154.6
168.5
111.1
3.2%
2.7%
2.2%
51.9
48.8
44.6
200
3.7%
3.14%
1.7%
30
1.2%
0.7%
10
0
0.2%
FY2006
FY2007
FY2008
Average per quarter
Total Income
RM’mil
FY2009
9M FY2010
FY2006
-10
Total Provisions
RM' bil
FY2007
FY2008
Gross Loans
FY2009
9MFY2010
-0.4%
Net interest margins (%)
Non Interest Income Composition (%)
• Income: performance reflecting improved
contributions across all segments
20%
14.6%
16.9%
13.8%
9.0%
10%
7.8%
7.8%
9.2%
8.8%
6.9%
7.1%
7.3%
1.3%
4.0%
4.9%
0%
FY2006
FY2007
• Provisions: to institute more proactive
collections management
FY2008
-1.5%
FY2009
9M FY2010
-10%
Non interest income
Fee Income
Investment Income
17
Improved earnings and returns ratios for 9MFY2010
AmBank (M) Berhad Group
AmBank Group
ROE, %
9MFY10 / FY09 change
FY 09 / 08 change
11.5%
11.7%
0.2%
0.2%
11.9%
-5.8%
FY2007
ROA, %
ROE, %
FY 09 / 08 change
13.6%
13.8%
2.7%
0.2%
16.5%
• Maintaining
profitability despite
economic disruptions
-10.8%
FY2008
FY2009
9MFY2010
FY 09 / 08 change
1.02%
1.04%
0.11%
0.02%
FY2007
ROA, %
1.15%
FY2008
FY2009
FY 09 / 08 change
0.74%
0.87%
9MFY2010
0.05%
0.13%
0.92%
-0.17%
-0.61%
18
Conclusion:
19
Concluding remarks
1. Top 5 Banking Group in Malaysia with diversified
business fundamentals, supported by ANZ, our
strategic partner and 1 of 11 AA rated banks in
the world
2. Good 9M result sets the foundation for us to
deliver above our earlier FY 2010 market
guidance
3. Sound capital levels and executing to our
strategic themes will position AmBank Group to
leverage economic upturn in 2010
4. Maintaining high vigilance on asset quality, risk
disciplines, collections / restructuring activities
& cost management
5. Staying focused on executing to our strategic
agenda around profitable growth and portfolio
rebalancing will help us achieve our medium
term aspirations (MTA)
20
Highlights of RM7.0 billion
Senior Notes Issuance Programme
21
Key Features of RM7.0 billion Senior Notes Issuance Programme
Programme Size
Up to RM7.0 billion nominal value
Credit Rating
AA3 by RAM Rating Services Berhad
Tenure of the Programme
Up to 30 years
Tenure of each Senior Note
More than 1 year and up to 10 years as the Issuer may select, provided that the
Senior Notes mature on or prior to the expiry of the Programme
Details on Utilisation of
Proceeds
For AmBank’s general working capital requirements and to defray issuance expenses
for the establishment of the Programme
Lead Arranger /
Lead Manager
AmInvestment Bank Berhad
Coupon Rate
To be determined prior to each issuance
Coupon Rate Frequency
1, 3 or 6 months at the option of AmBank
Mode of Issue
Private placement (i.e. direct placement or bought-deal) and/or book building on best
effort basis
Status of Senior Notes
The Senior Notes will constitute direct, unconditional, unsubordinated and unsecured
obligations of AmBank, and will rank pari passu and equally with all other present and
future unsecured and unsubordinated obligations (excluding deposits) of AmBank,
except those obligations preferred by law, liens or rights of set-off arising from the
normal course of business
22
Principal Terms of 1ST Issue of Senior Notes under
The Senior Notes Issuance Programme
Issuer
AmBank (M) Berhad
Credit Rating
AA3 by RAM Rating Services Berhad
Size of Issuance
RM2.5 billion, with option to upsize to RM3.0 billion
Coupon Rate
To be determined
Yield to Maturity
To be determined on bookbuilding basis
Coupon Payment Frequency
Semi-annual
Tenure
1 – 5 years
Targeted Issue Date
25 March 2010
Method of Issuance
Book building
Lead Manager
Book building details and timeline
Details:


Sole book runner – AmInvestment Bank
Sole book co-ordinator – AmInvestment Bank
Method:


Bid in yield terms
Price guidance provided
Tentative Timeline:




Book open – Monday, 15 March 2010
Book close (target) – Tuesday, 16 March 2010 at 5pm
Allocation and notices – Wednesday, 17 March 2010
Senior Notes issue and settlement – Thursday, 25 March 2010
23
Appendix:
24
Appendix:
Capital, Funding, Liquidity &
Government Guarantee
25
Sound capital base to meet ensuing
challenges and support growth
Capital Adequacy: AMMB Holdings Berhad
FY2007
FY2008
FY2009
9MFY2010*
Core Equity
7.6%
7.7%
7.8%
7.8%
Tier 1
8.7%
8.5%
9.7%
9.8%
Innovative Tier 1 Capital Securities issued
(AmBank (M) Berhad) :
- Approved program = RM500 mil
- Q1FY10 issuance = RM300 mil
- Q2FY10 issuance = RM185 mil
RWCA
12.6%
14.1%
15.2%
15.3%
* CAR excludes Q3FY2010 profits; if included :
Note :
1
FY2007 capital adequacy ratios as per the published financial statements of AHB for FY2008
 Core equity : 0.3% (proforma 8.1%)
 Tier 1 : 0.4% (proforma 10.2%)
 RWCA : 0.4% (proforma 15.7%)
Capital management plan :
Capital Adequacy: AmBank (M) Berhad Group
- Strengthen capital profile & buffer
FY2007
FY2008
FY2009
9MFY2010
Core Equity
5.0%
6.0%
7.2%
7.2%
- Increased modeling of economic
scenarios
Tier 1
5.9%
7.1%
9.3%
9.4%
- Risk/ rewards focus within Basel II
RWCA
10.3%
13.1%
14.6%
14.9%
- Improvements in capital diversification
- Development of dynamic dividend policy
- Review of BIS/ Basel III framework
26
AmBank (M) Berhad Group: Funding
profiles continue to improve
Customer Deposit by Type
Customer Deposit by Sources
CASA
composition
Customer Deposits by Sources
1.7
1.4
11.4
10.8
Others1
Government
Government
funds grew
by 5.6% in
9MFY2010.
Total
13.8%
14.3%
15.0%
10.6%
12.2%
32.5b
37.1b
41.5b
63.9b
67.3b
Customer Deposits by Type
12.5
0.7
Biz enterprises
12.0
9.3
0.0
6.2
5.3
4.5
19.9
23.6
25.5
25.5
Individuals
28.0
FY2006
FY2007
Others
FY2008
Government
FY2009
Biz Enterprise
9M FY2010
FY2006
Individuals
10.2%
7.0%
6.3%
31.7%
31.5%
FY2007
FY2008
5.2%
4.5%
6.8%
4.7%
27.8%
21.8%
33.1%
44.7
45.4
FY2009
9M FY2010
CASA
FD + NID
FD + NID
Deposit of Banks & Other Financial Institutions
Total
4.9%
31.2
32.3
Others
Customer Deposits: Interest Pricing Profile
4.8%
3.0
0.6
8.6
23.0
CASA
28.7
26.2
5.2
4.1
3.5
8.2
6.7
0.8
0.5
CASA grew
by 21.8% in
9MFY2010
Others2
13.7
Non - sensitive
1 – 5 years
3 – 12 months
Longer term
funding – an
ongoing issue
Deposits of Banks & Financial Institutions
13.4b
5.6
12.6b
16.2b
7.5b
7.6b
Reduce
dependency on
inter-banking
funding
7.2
6.5
1.3
63.5%
53.4%
53.5%
62.6%
66.8%
0 – 3 months
1.2
4.1
2.5
FY2006
FY2007
Non-interest sensitive
Note:
1
2
3
FY2008
1-5 yrs
FY2009
3-12 mths
9M FY2010
0-3 mths
“Others: by source comprises pension and retirement, non-profit organizations and smiliar
“Others” by type comprises short-term treasury deposits, cash management system (CMS) placements and structured deposits
Interest pricing profile for Islamic deposit has been re-classed from non interest sensitive to relevant deposit time bands
FY2006
3.6
1.4
5.1
2.6
FY2007
Other FIs
2.8
0.9
1.4
1.6
1.7
FY2008
BNM
FY2009
Merchant
4.4
Other FI’s
0.9
1.6
0.6
BNM
Merchant
Banks
9M FY2010
Banks
27
AmBank (M) Berhad Group: Balance sheet being
progressively repositioned for rising interest rates
Interest / Profit Rate Risk : 0 - 12 months
RM’mil
Assets
32.0
- 49.9
2.3
Net mismatch
Off balance sheet gap / derivatives
45.8
8.0
- 55.0
- 67.6
-3.7
8.5
- 4.1
-2.8
-2.9
-13.9
FY2008R
Equity
38.9
2.2
-15.6
Liabilities
Interest / Profit Rate Risk : 1 - 5 years
FY2009
8.5
-13.2
Net mismatch
1.5
FY2008R
9M FY2010
18.3
25.4
-3.4
-3.4
- 2.8
0.5
0.8
- 14.2
Note : Net mismatch comprises on-balance sheet and off-balance sheet interest rate gap sensitivity
Note R: Based on restated financial statement
22.8
9M FY2010
17.5
- 16.8
- 7.6
-5.2
0.3
- 0.4
15.6
FY2009
-1.7
2.9
- 5.7
12.2
1.5
Interest / Profit Rate Risk : Non-Interest Sensitive
15.8
Net mismatch
- 5.8
- 8.7
Interest / Profit Rate Risk : > 5 years
15.3
12.7
Net mismatch
-4.3
- 0.4
- 4.5
- 0.6
-4.4
-9.8
28
Appendix:
Business highlights
29
Competitive positioning: continues to strengthen
Sound size and market position in
key business segments
1

Well diversified Universal Banking Platform

# 4 largest retail bank, : # 2 in auto finance,
# 6 in mortgage, # 7 in cards and # 3 in
personal financing


Recognized brand name / strong
consumer franchise


# 5 largest Business Banking and # 5
Corporate and Institutional Banking

# 4 largest Banking Group (market
capitalization)

2
# 4 largest branch network (189)

Retail customers > 5 million, solid growth
foundation and high cross-selling potential
# 3 largest ATM network (736), 334 ATMs
@ 7/11 and 125 EBC’s

Innovative promotion and advertisement
(winning several awards)
Effective eChannels of internet banking,
mobile banking and 24 hours call centre

~8,000 sales agents, direct sales teams,
marketing & personal bankers, financial
services and insurance agents to cross-sell
multi products of AmBank Group
# 5 “Top of Mind” brand recall
4
Repositioned for profitable growth
5

Experienced management team with key
ANZ appointments

Strategic partnership with the Australia &
New Zealand Banking (since May07)

Recruitment of industry experts with a
strong understanding of international and
domestic best practices

ANZ : 1 of the 11 AA rated global bank, listed
as 1 of the 20 safest bank globally by Global
Magazine, Feb09
Moving towards performance based
culture for all levels


3

Recognized as a strong consumer-focused
financial institution
Strategic partnership with global
partner, ANZ
Experienced management team
Wide market reach and multiple
distribution channels
Leveraging on ANZ: strengthen risk
management, customer segmentation &
solutions strategies, transactional banking
and delivery and distribution channels

Executing Group’s strategic agenda
around profitable growth and portfolio
rebalancing

High vigilance on asset quality, risk
disciplines, collections and restructuring
activities and cost management

Streamline distribution channels for
productivity and service efficiency
6
30
1
Sound size and market position in key business segments
Retail Banking
Business
Banking
Investment
Banking
Corporate &
Institutional
Banking*
#4
#5
#2
#5
Focus on profitability and
build foundations for
growth
 #2 auto financier :






20.9% mkt-share;
Best Auto Financier
Award in 2007
# 6 (incl. foreign
banks) in housing
loans (5.6%)
# 7 (incl. foreign
banks) in credit
cards (7.0%)
# 3 in personal
financing (7.1%)
5.8 million
customers, >1.4
products per
customer
# 4 in no. of
branches &
# 3 in no. of ATM’s
Pioneer in weekend
and extended
banking hours
Leverage on existing
customers, build
sustainable assets &
deposit bases
 Leverage on
nationwide
network : 4
regional business
centres & 11
commercial
centres; and
strong relationship
managers force
 Leader in cash
management (full
suite) and SME
financing
 Expanding trade
and remittance
leveraging on
ANZ’s regional
network
Stay relevant & protect
market share, and
preserve balance sheet
quality
►
►




Awards : Best
Bond, Best Bond
Group, Best
Portfolio Manager,
Best Deal, Best
League Manager
Ranked Top 3 in :
M&A league
Malaysian Ringgit
Bond league
Funds Under
Management
Participating
organisations’
Bursa trading
summary
Note *: Corporate & Institutional Banking (CIB) services includes CIB Large Corporate Lending, CIB Large Corporate Deposits, Financial Institution
Group (FIG), Offshore Banking, International Business, Private Equity, REITS and Loan Syndication
Derisk, Diversify,
Differentiate,
Consolidate, Grow, Build
►
►
►
►
Build niche in
corporate lending,
focusing on GLC’s
and MNC’s
Cross-sell
commercial
banking products
International
businesses :
Singapore,
Indonesia &
Brunei
Diversify
businesses in
REITs and private
equity
Assurance
#7
#6
[General]
[Life]
To be the top 3
insurer in terms of
premiums
 # 3 in motor
insurance
premiums (8.6%)
and # 7 in general
insurance
premiums (5.2%)
 # 6 in life insurance
premiums (6.3%)
 Leverage IAG’s
market and
operational
leadership in
general insurance
 New strategic
partner, Friends
Provident, in life
insurance
Islamic Banking
#5
To become Islamic
bank of choice
 Full range of
banking products
and services
according to
Syariah principles
 Latest venture :
set-up of Islamic
funds
management
division
 # 2 in Islamic
credit cards
 Diversify Islamic
banking business
in Brunei
31
2 Recognized brand name / strong consumer franchise
%
45
44
4
3
1
41
11
7
10
8
5
3
2004*
2007*
ADEX (SOV)
AmBank
Bank A
38 (BankC)
311
17
11
7
5
3
16
12
6
5
225
204
86
105
91
2008*
H1 09
Bank B
Bank C
(Bank D)
(Bank E)
(Bank B)
(Bank A)
(Am B)
The AmBank brand : Top-of-Mind Brand
Awareness & Service Performance
• AmBank at 5th best TOM brand recall
• Continuous improvement initiative on
brand awareness campaigns
Bank D
Bank E
07*
5%
7%
6%
9%
15%
7%
08*
3%
11%
6%
11%
14%
3%
H109
5%
12%
6%
15%
12%
8%
• Efforts will continue to strengthen brand
positioning
Figures are in %
• Positively positioned against 2nd-tier
competitors
• Strengths : “extended banking hours”,
“convenient ATMs” & “many branches”
• Ongoing efforts to improve performance
matrixes
Assets as at June 09 (RM’000)
Note: ADEX (SOV) for H109 = (Apr 09 – Aug 09)
32
3 Wide market reach and multiple distribution channels
ASPIRATIONS
 Increased customer satisfaction via integrated & seamless channels model
 Expand branch network and SSM footprint
 Further build and improve sales & service capabilities
Number of Branches
387
Business Units
Branch
Banking
E- Channels &
Contact
Centre (incl.
Internet &
Mobile
Banking)
10 new branches (200+ by early 2011)
Increase in customer facing / sales staff

Reaching out to our customers by expanding
our self service machine network at branches,
shopping centers and 7-Eleven stores
Drive profitability by expanding revenue
streams through additional services like
Interbank Loan & Bill Payment and a full suite of
Prepaid Top Up services
Maximizing our outbound sales productivity
through our Award Winning Contact Centre
Enhance customer experience via innovative
mobile and internet banking services



Deposit &
Customer
Solutions


Wealth
Mgmt
249
Key Strategic Initiatives





Increase deposit size through innovative
products, campaign, marketing activities,
banking solutions and competitive rates on
CASA & FD
Maintain or improve market position (at 5th or
6th assuming unchanged number of anchor
banks)
Establishing new line of business i.e. premier
banking to cater to Affluent segment
Increase cross selling via AmUtopia
WM system – BITPC approval stage
Source : Company websites of peer banks / MEPS information
Note : Peer groups as at 31 December 2009; AmBank as at latest practicable date
#4
367
189
186
Maybank CIMB Public AmBank RHB
185
HLB
139
102
91
EON Alliance Affin
Number of ATMs
#3
2,828
2,003
736
649
459
315
229
Maybank CIMB AmBank RHB
PBB
HLB
EON Alliance Affin
175
145
Total no
ATM’s at 7 Eleven
334
Electronic Banking Centers (EBC)
125
FUM no. of accounts
46 K
Life insurance policy holders
General insurance policies in force
~400 K
~1,160 K
33
4 Experienced management team
Name
Designation
Profile
Cheah Tek
Kuang*
Group Managing
Director
Joined the Group in 1978 with over 30 years of experience and
has held various senior positions in AmBank Group
Ashok
Ramamurthy*
Deputy Group
Managing Director
& Chief Financial
Officer
Joined the Group in 2007 and has over 20 years of experience,
most of which has been with ANZ across multiple geographies
including Australia, New Zealand and India.
Datuk Mohamed
Azmi Mahmood
Managing Director,
Retail Banking
Joined the Group in 1981 and has almost 30 years of
experience in the banking industry.
• Majority of the senior
managers have more than
20 years of experience in
the banking industry
• AmBank Group: ~10,000
employees as at Dec 2009
• Key emphasizes on human
Dato’ James Lim
Cheng Poh
Managing Director,
Business Banking
Joined the Group in 2004 with almost 30 years of experience
in the banking industry , most of which has been with Hong
Leong Group
Pushpa
Rajadurai
Managing Director,
Corporate &
Institutional
Banking
Joined the Group in 1989 and has over 25 years of experience
in the investment banking and financial consultancy field.
Andrew Strain
Kerr*
Chief Risk Officer
Joined the Group in 2007 and with almost 30 years of banking
experience with major financial institutions which includes
Bank of America and ANZ
Ross Neil Foden*
Chief Operations
Officer
Joined the Group in 2009 with over 30 years of experience in
operations. Prior to that, he was the General Manager for
Operations and Transformation for ANZ Asia Pacific
Note *: AmBank Group level
resource policies and
training as it recognizes
the value of staff in
contributing towards
growth targets
34
5 Strategic partnership with global partner, ANZ
 ANZ is the only
Australian bank to
have been in the
Asian region of over
40 years
+
Malaysia
 Strategic banking
partnerships and
presence across 14
countries
ANZ has provided key resources and support
Board
Senior
Management
Management
Director
Director
Director
Alex Thursby
Dr. Robert John Edgar
Mark Whelan
Group CFO &
Deputy Group MD
Ashok Ramamurthy
Chief Risk Officer
Chief Operating Officer
Andrew Kerr
Ross Neil Foden
Head of Retail
Distrib & Deposits
Brad Gravell
Head of FX &
Derivatives
Steve Kelly
Head of Market Risk
Jonathan Manifold
Credit Risk/ Portfolio
Mgt
Glenn Saunders
Head of Systems
Accounting
Ignatius Lim
Head of Sales, FX &
Derivatives
Peter Trumper
 In August 2009, ANZ
acquired selected
RBS businesses in
Asia for US$550
million, thus
reinforcing its
strategic intent of a
super regional
objective
ANZ is committed to AmBank’s long-term success and aspirations
35
6
Repositioned for profitable growth
AmBank (M) Berhad : strategic agenda around profitable growth
and portfolio rebalancing*
Retail banking :
• Focus on growth in profitable
products and target segments
• Streamline channels, improve
productivity & customer service
• Strengthen risk management
• Enhance operational
infrastructure (efficiency &
capacity)
Business banking :
• Managing Balance Sheet by
applying the “3 Cs” approach –
Conserve (enhance relationship),
Control (account management)
and Caution (analytics &
segmentation)
• Build sustainable asset and
deposit bases, and strengthen
infrastructure
* Organic growth strategies for FY2010
Markets Fixed Income:
• Combine Markets & Proprietary
books.
• Manage AfS via 3 segments (fairly
liquid, less liquid, illiquid)
• DCM focus : high grade debt &
enhance book building
• HfT portfolio focus : high grade &
liquid, new bond issue (higher
yields) & actively trade, PDS
book: high liquidity & yield bonds
Markets FX :
• Develop integrated biz streams:
customer advisory , dealing &
transaction and trading teams ;
• Leverage ANZ’s Markets sales,
trading, IT, risk, product
development & process skills
Corporate & Institutional Banking :
• Rebalance via viable & profitable segments
• Grow deposits and recurring non-int income
• Cross-sell & expand via Investment Banking
mandates, government projects & M&A
advisory mandates
• Grow existing clientele & new clients (MNCs,
FIG, GLCs & government linked funds)
International:
• LABUAN: improve profitability and diversify via
financial guarantees, loan syndications & fee
income
• JAKARTA & SINGAPORE: Consolidate
operations, reduce share margin biz and
diversify into asset mngnt (Indonesia) & wealth
mngnt (Singapore)
• BRUNEI: Increase AUM, introduce sukuk
issuance and advisory solutions & secure
Islamic banking license
REITS Management:
• Maintain profitability, improve cash
management & set up asset management co.
Private Equity: Target new funds & develop
thematic funds, diversify fee income (advisory,
retainer fees; diversify & asset management)
36
Appendix:
Corporate info (rating, structure)
37
Ratings Upgrade
AmBank (M) Berhad
Rating Agency
RAM
Instrument :
Long-Term
Short-Term
Outlook
Date
AA3
P1
Stable
Nov 09
- RM500mil non-cumulative perpetual capital securities
- RM1.0bil negotiable instruments of deposits
- RM2.0bil medium term notes programme
- RM500mil innovative tier-1 capital securities programme
A2
AA3
A1
A2
Moody’s
Baa2
Banking Financial Strength Rating
Instrument :
USD200mil non-cumulative non-convertible guaranteed preference share
Fitch
Instrument :
S&P
Instrument :
Capital Intelligence
Rating Agency
Nov 09
Nov 09
Nov 09
Nov 09
P-3
Stable
Feb 10
Feb 10
F3
Stable
Feb 10
Feb 09
D
Ba2
BBBBB
BBB-
A-3
Positive
Feb 09
Dec 09
BB
BBB-
A3
Positive
Dec 09
Dec 09
Long-Term
Short-Term
Outlook
Date
RAM
AA3
P1
Stable
Nov 09
MARC
S&P
Fitch
A1
AABBBBBB-
MARC-1
A-3
F3
Stable
Positive
Stable
Nov 09
Mar 09
Dec 09
Feb 09
Instrument :
- RM200mil subordinated tier-2 bonds
AmIslamic Bank Berhad
Rating Agency
Long-Term
Short-Term
Outlook
Date
RAM
AA3
P1
Stable
Nov 09
Instrument :
- RM400mil subordinated sukuk musyarakah
A1
AMBANK GROUP – INVESTOR RELATIONS - DEBT INVESTOR PACK,
Nov 09
25th
FEBRUARY 2010
38
Shareholding structure
As at 31 December 2009
AmcorpGroup
Bhd
16.7%
ANZ Funds Pty
Ltd #
Employees Provident
Fund Board
12.9%
23.8%
Ranked No. 18
(Malaysia – market
capitalisation) & 188
(global – 1,000 banks
by market
capitalisation) :
Public
46.6%
AMMB
Holdings Bhd
AMFB Holdings
Bhd
100%
AmBank (M)
Berhad
 with market
capitalization of
RM15.07 billion on
Bursa Saham
Malaysia (N1)
100%
AMAB Holdings Sdn
Bhd
100%
100%
AmInvestment
Group Berhad
70%*
AmLife Insurance
Berhad
51%^
AmG Insurance
Berhad
* Friends Provident Fund PLC –
30%
100%
^ Insurance Australia Group Ltd –
49%
AmIslamic
Bank Bhd
Foreign shareholding excluding ANZ :
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
38.14%
36.95%
37.15%
34.39%
30.08%
Mar-09
28.38%
# ANZ Funds Pty Ltd : a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (“ANZ”)
Source :
N1 Starbiz (Top 100 Companies By Market Capitalization as at 31 December 2009)
N2 Bloomberg (Global 1,000 banks By Market Capitalization as at 4 January 2010)
Jun-09
29.58%
Sep-09
28.53%
Dec-09
29.58%
 and market
capitalization of
US$4.41 billion on
Bloomberg (N2)
AHB in progress of
due diligence to
acquire :
 general insurance
business of a local
insurance company
39
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 market
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 Segments
Business segments
• comprise AmBank Group’s core operating businesses that generate profits from direct customer transactions and interactions
• 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 proprietary and treasury trading, shareholder funds, loan rehabilitation and legacy busin esses, plus
• costs associated with corporate, shared services and governance functions currently not charged back to the business units
Disclaimer of Warranty and Limitation of Liability
The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad or AMMB Holdings or “AHB” or its affiliates do not make any representation or
warranty, express or implied, as to the adequacy, accuracy, completeness or fairness of any such information and opinion contained and shall not be liable for any consequences of any
reliance thereon. Neither AMMB Holdings nor its affiliates are acting as your financial advisor or agent. The individual is r esponsible to make your own independent assessment of the
information herein and should not treat such 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 significant 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 securities. Neither does this presentation purport to contain all the
information that a prospective investor may require. Because it is not possible for AMMB Holdings or its affiliates to have r egard to the investment objectives, financial situation and particular
needs of each individual who reads the information contained thus the information presented may not be appropriate for all pe rsons.
The information contained is not allowed to be reproduced, redistributed, transmitted or passed on, directly or indirectly, t o any other person or published electronically or via print, in whole
or in part, for any purpose.
The term "AMMB Holdings" denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to the financial
institutions under AMMB Holdings.
40
The material in this presentation is general background information about AmBank Group’s 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
Head Group Investor Relations
Tel : (603) 2036 1435
Fax : (603) 2031 7384
e-mail : ganesh-kumar@ambankgroup.com or
ir@ambankgroup.com

Debt Investor Presentation

Transcription

Similar documents

Time to go banking? The electric is off. The phones are dead. The

carta de cliente en ingles

Company Fact Sheet

Career Services Relocation Deployment Support Transition (TAP

- Aftab Communication Group

the new website is coming online oct 5, 2015

Kindale Newspaper Article - August 2016

MD 2250 Plus / MD 2230 Plus

Area-Imaging Scanner

late summer fun

- AmBank Group