AMMB Investor Presentation H1FY20 - AmBank · H1FY2020 Results –Investor Presentation 3 Financial Snapshot H1FY20 Financials H1FY20 Resilient growth Profitability (RM’ mil) Income

H1FY2020 RESULTSINVESTOR PRESENTATION

29 NOVEMBER 2019

GCEO PRESENTATIONDato’ Sulaiman Mohd Tahir

H1FY20 Financial snapshot

H1FY20 Financial agenda and scorecard

Top 4 strategy review

Outlook for 2019

3

4

5

6

H1FY20 Financial snapshot

H1FY2020 Results – Investor Presentation3

Financial Snapshot

H1FY20 Financials H1FY20 Resilient growth

Profitability(RM’ mil)

Income2,133

H1FY19: 2,021 6% • Good income growth

Expenses1,055

H1FY19: 1,018 4% • Cost well managed with positive JAWS of 2%

PBP1,079

H1FY19: 1,003 8% • Positive operating leverage, CTI of 49.4%

(Recovery) / Impairment

77H1FY19: 18

>100% • Watchful on credit quality

PATMI711

H1FY19: 696 2% • Reasonable profit growth

ROE7.9%

H1FY19: 8.2% 30bps • ROTE circa 10%

Assets & Liabilities (RM’ bil)

Gross Loans102.0

FY19: 101.8 ≈ • Modest loans growth, ex. auto loans +2%

Deposits102.7

FY19: 106.9 4% • Active liquidity management

Capital & Liquidity

FHC CET11 12.6%FY19: 11.9%

69 bps • Well capitalised

FHC LCR153%

FY19: 193% 4,000 bps • Sound liquidity position

Dividend per share6.0 sen

H1FY19: 5.0 sen 1.0 sen • Higher interim dividend

1. After deducting proposed dividends

H1FY20 Financial agenda and scorecard


Financial agenda

Revenue growth

BET300

Capital accretion

“Accelerate digital partnerships”

“ Continue to create a leaner and more efficient organisation”

“To strengthen our capital position and deliver sustainable dividend payout”

FY20 priorities

FY20 priorities

FY20 priorities

Key Metrics

Key Metrics

Key Metrics

➢ Increasing penetration in targeted products & segments, grow CASA

➢ Diversifying funding, managing cost of funds

➢ Smart digital partnerships to create new customer access points

➢ Revenue growth

➢ NIM

➢ CASA growth

➢ Cost discipline

➢ Pacing investments

➢ Digital initiatives to drive internal efficiencies

➢ CTI

➢ Positive JAWS

➢ Capital release options

➢ RWA efficiencies

➢ FHC CET1 ratio

➢ RWA growth

➢ ROE improvement

➢ Dividend payout

H1FY20 Scorecard1

➢ NII growth = 5%

➢ NoII growth = 7%

➢ NIM = 1.89% (8bps)

➢ CASA growth = 6%

H1FY20 Scorecard1

➢ CTI = 49.4% (100bps)

➢ Positive JAWs = 2%

H1FY20 Scorecard1

➢ FHC CET1 = 12.6% (69bps YTD)

➢ RWA efficiency = 66.9%

(FY16 – 18 Average: 71.9%)

➢ ROE at 7.9%

➢ Interim dividend = 6.0 sen (20%)

1. Represents YoY growth unless otherwise stated

Strategic execution outcomes

5

Strategy review

3,696 3,766 3,979 3,922

2,133

FY16 FY17 FY18 FY19 H1FY20

1,522 1,605 1,5581,792

1,079


2,177 2,160 2,421

2,131

1,055

58.9% 57.4%60.8%

54.3%49.4%


87.9 91.0 96.3 101.8 102.0


90.4 93.9 95.8106.9 102.7


1,302 1,3251,132

1,505

711


Total Income (RM’ mil)

Expenses (RM’ mil) & CTI (%)

PBP (RM’ mil)

PATMI (RM’ mil)

Gross Loans (RM’ bil)

Customer Deposits (RM’ bil)

1. 3FY CAGR (Peers) calculated based on average of 8 local banks’ CAGR in their respective financial year end

CTI

Expenses

H1FY2020 Results – Investor Presentation

CAGR FY17 – 19:AMMB: 2%Peers2: 3%





CAGR FY17 – 19: CTI Exp.AMMB: 2% 1%Peers2: ≈ 3%

YoY Growth: 6%

YoY Growth: 8%

YoY Growth: 2%

YoY Growth: 2%

YoY Growth: 2%

Exp.YoY

Growth: 4%

Outlook for 2019


Market Outlook

GDP growth: 4.5%

Banking Sector

Inflation: 0.8% - 0.9%

Export growth: - 0.3%

USD/MYR outlook: 4.10 – 4.15

Loans growth: 4.6%

Asset quality: Stable

OPR: Stable at 3.00%

Resilient liquidity & capital positions

Malaysia

GCFO PRESENTATIONJamie Ling

Financial overview

Guidance & Expectations

8-21

22

Q2FY20 Results (QoQ)

Q2FY20 Financial overview


Financial Overview

Asset Quality Capital & Funding

➢ Income stable at RM1,069mil (+RM4 mil):

- NII of RM680mil (+2%), NIM recovered to 1.91% (+4bps)

- NoII declined slightly (-2%) as higher GTM trading income offset by lower insurance income

➢ Expenses lower at RM526mil (-RM3 mil). CTI improved further to 49.2% (Q1FY20: 49.7%)

➢ PBP was up 1% to RM543mil

➢ Net impairment of RM109mil, mainly driven by provisions for a few corporate accounts, non-repeat of large corporate releases in Q1 and higher retail ECL Stage 1 & 2 provisions

➢ PATMI at RM320mil from higher net impairment

➢ GIL at 1.77% (Q1FY20: 1.66%)

➢ LLC1 at 105.8% (Q1FY20: 111.5%)

➢ Improved capital position, FHC CET12 12.6%

➢ Highly liquid, FHC LCR of 153%

1. Includes regulatory reserve2. After deducting proposed dividend

Q2FY20 Q1FY20 QoQ Change H1FY20 H1FY19 YoY Change

CTI 49.2% 49.7% 50bps 49.4% 50.4% 100bps

NIM 1.91% 1.87% 4bps 1.89% 1.97% 8bps

ROE 7.0% 8.8% 180bps 7.9% 8.2% 30bps

EPS1 10.62 sen 13.01 sen 2.39 sen 23.63 sen 23.13 sen 0.50 sen

H1FY20 Performance summary – P&L


Financial Overview

1. Basic Earnings Per Share

Q2FY20 Q1FY20 QoQ Change H1FY20 H1FY19 YoY Change

Total Income 1,069 1,065 ≈ 2,133 2,021 6%

Expenses 526 529 ≈ 1,055 1,018 4%

PBP 543 536 1% 1,079 1,003 8%

Net (Recovery) / Impairment

109 (32) >100% 77 18 >100%

PATMI 320 391 18% 711 696 2%

P&L(RM’ mil)

FinancialIndicators

12.0% Q2FY20 Q1FY20 QoQ Change H1FY20 FY19 YTD Change

FHC CET1 12.6% 11.9% 73bps 12.6% 11.9% 69bps

FHC Tier 1 12.6% 11.9% 73bps 12.6% 11.9% 69bps

FHC Total Capital 16.1% 15.4% 65bps 16.1% 15.4% 63bps

H1FY20 Performance summary – balance sheet


Financial Overview

Q2FY20 Q1FY20 QoQ Change H1FY20 FY19 YTD Change

Gross Loans 102.0 100.8 1% 102.0 101.8 ≈

GIL 1.77% 1.66% 11bps 1.77% 1.59% 18bps

LLC1 105.8% 111.5% 570bps 105.8% 114.0% 820bps

Customer Deposits 102.7 102.8 ≈ 102.7 106.9 4%

CASA 23.4 23.1 1% 23.4 24.9 6%

Balance Sheet(RM’ bil)

Capital Indicators2

1. Includes regulatory reserves2. After deducting proposed dividends

613 611 617 643 642 648 661 629 669 680

369 356 342428 372 359 286 326

395 389

982 967 959

1,0711,014 1,007

947 955

1,065 1,069

Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20

Net Interest Income Non-interest Income

Good income growth


Income

421 312

142

1. Investment share revaluation2. Gain on disposal of foreclosed properties

222

RM’ mil

Business SegmentsQ2FY20 Q1FY20 QoQ Change H1FY20 H1FY19 YoY Change

(RM’ mil)

Wholesale Banking 334 303 10% 636 547 16%

Investment Banking 69 70 2% 139 124 11%

Retail Banking 369 358 3% 727 724 ≈

Business Banking 90 86 4% 177 153 15%

Group Funding & Others 46 50 8% 95 121 20%

Total Income – Banking 908 867 5% 1,774 1,669 6%

General Insurance 171161

187198

8% 19%

358359

334352

7% 2%

Life Insurance (10) 11 >100% 1 18 97%

Total Income 1,069 1,065 ≈ 2,133 2,021 6%

H1FY18: 1,949 H1FY19: 2,021 H1FY20: 2,133

4% YoY 6% YoY 2% YoY

429404

383

342

501 502

434

355

536 543

328 332

219

253

348 348 350

460

391

320

8.1% 8.1%

5.3%6.3%

8.3% 8.2% 8.1%

10.7%

8.8%

7.0%


PBP PATMI ROE

Positive operating leverage


PBP & PATMI

RM’ mil


(RM’ mil)


Investment Banking 24 24 ≈ 48 38 28%

Retail Banking 149 152 2% 301 309 2%


Group Funding & Others (18) (37) 51% (54) (27) 97%

PBP – Banking 468 423 10% 891 821 9%

General Insurance 8575

102113

16% 34%

187188

164182

14% 3%

Life Insurance (10) 11 >100% 1 18 97%

PBP 543 536 1% 1,079 1,003 8%

2171

1. Retail debt sale gain

696711

59

54

637

598

Good income growth driving PBP and PATMI higher


Group P&L

YoY Growth 5% 7% 6% 4% 8% >100% 2% 2% 3% 12% 2%

RM’ milNet Interest

IncomeNon-Interest

IncomeTotal

IncomeExpenses PBP

(Recovery) /Impairment

PBT Tax & Zakat PAT MI PATMI

H1FY20 1,349 785 2,133 1,055 1,079 77 1,002 217 785 74 711

H1FY19 1,290 731 2,021 1,018 1,003 18 985 223 762 66 696

NIM: 1.89%

NoII%: 36.8%

CTI: 49.4%

GIL: 1.77%

EffectiveTax Rate:

21.5%80%

20%

75%

25%

Positive growth in H1FY20 Contraction in H1FY20 Conventional PATMI Islamic PATZ

187

191

0.3

2.3 0.2

0.5

1.3 0.1 2.6

0.3

2.6

Q1FY20 WholesaleBanking

InvestmentBanking

RetailBanking

BusinessBanking

Others Asset volume& mix

Interbank /Group

Funding

Depositsrates

Depositsmix

Q2FY20

YTD NIMH1FY20: 1.89%H1FY19: 1.97%

Improved net interest margin


Net Interest Margin (NIM) Movement

NIM

DepositsAssets

Positive growth in H1FY20 Contraction in H1FY20

NIM movement:QoQ : 4bpsYoY : 8bps

Strong trading gains recorded


NoII

YoY Growth 100% 7% >100% 15% 3% 9% 10% 9% 97% ≈ 7%

RM’ milForeclosed Properties

Corporate Banking

Group Treasury

& Markets

Investment Banking &

Fund Mgmt

WealthMgmt

Other RetailBusiness Banking

General Insurance

Life Insurance

Group Funding &

OthersNoII

H1FY20 - 83 114 116 43 82 42 290 1 14 785

H1FY19 22 89 51 100 42 90 38 266 18 14 731

H1FY19 NoII H1FY20 NoIIPositive growth in H1FY20 Contraction in H1FY20

731

785

63

15 1 4

24

≈

22 6

8

17

Q1FY20: 395Q2FY20: 390

NoII

553 563 577

728

513 506 513600

529 526

56.3% 58.2% 60.1%

68.0%

50.6%50.2%

54.1%

62.8%

49.7% 49.2%


Cost well contained while continuing to invest


Expense Growth Driver Expense and CTI Trend

Expenses

Positive P&L impact in H1FY20 Negative P&L impact in H1FY201. Retail Operational Loss2. Mutual Separation Scheme


(RM’ mil)


Investment Banking 45 45 ≈ 90 87 4%

Retail Banking 220 206 7% 425 416 2%


Group Funding & Others 63 88 27% 152 147 3%

Expenses – Banking 440 444 1% 884 849 4%

Insurance (General, life, takaful)

86 85 1% 171 169 1%

Expenses 526 529 ≈ 1,055 1,018 4%

RM’ mil

RM’ mil

1462

81191201

1,018

1,055

35 63

7

H1FY19 Staff Cost Compliance &Governance

MFRS 16 Impact Others H1FY20

776 649 681 728 745 868

925 1,000 749 676 758 670

40 209 217 217 262

1,701 1,689 1,638 1,621

1,720 1,801

1.94% 1.86%1.70%

1.59%1.72% 1.77%

FY16 FY17 FY18 FY19 H1FY19 H1FY20

Retail Wholesale

Business GIL Ratio

208 200

393

94 49

187 215

843

-56

223 274

743

- -

IndividualAllowance

ECL Stage 3 /CP - Defaulted

ECL Stage 1 & 2 /CP - Non defaulted

Model RiskAdjustment

Macro Provision

FY18 FY19 H1FY20

81.2% 79.7% 100.5%114.0% 111.3% 105.8%

17.9

76.6

64.9

52.6

37.9

85.8

10.9

H1FY19 ECLStage 1 & 2

ECLStage 3

IndividualAllowance

Recoveries Others H1FY20

Credit costs normalising

H1FY2020 Results – Investor Presentation

Impairment Balance (Balance Sheet) Credit Cost (%) and New Impaired Loans Formation (RM’ mil)

Net Impairment (RM’ mil) Gross Impaired Loans, GIL and LLC Ratios

Asset Quality

2. Includes regulatory reserve

AmBank Group FY16 FY17 FY18 FY19 H1FY20 H1FY19

Credit cost (%) -0.19% -0.19% 0.00% -0.30% 0.12%4 0.05%4

Credit cost (excl. recoveries) (%)

0.47% 0.57% 0.47% 0.53% 0.54%4 0.56%4

New Impaired LoansFormation (RM’ mil)

1,418 1,330 1,162 1,123 935 644

RM’ mil

2Loan Loss Coverage

Positive P&L impact in H1FY20 Negative P&L impact in H1FY20

Non-performing / impaired assets

Performing assets

Stage 2

Stage 1238

FY18: 943FY19: 1,301

H1FY20: 1,239

Total ProvisionsRM’ mil

1. Includes macro provisions

253

3. W.e.f. Apr’19, macro risk adjustment has been classified as ECL Stage 1

1

3

4. Annualised

590505

17

Q1FY20: (32.5)Q2FY20: 109.1

Vigilant on asset quality


Loans to Real Estate Sector by Internal Risk Grades Loans to Construction Sector by Internal Risk Grades

Impaired Loans by Sector Loans to Oil & Gas (O&G) Sector by Internal Risk Grades

Asset Quality

SectorSep’19

YTD Growth CompositionRM’ mil

Real Estate 303 40% 17%

Residential Properties 451 20% 25%

Transport Vehicles 193 1% 11%

Manufacturing 283 72% 16%

Trading and hospitality 98 66% 5%

Mining and quarrying 55 31% 3%

Construction 95 >100% 5%

Others 323 45% 18%

Total 1,801 11% 100%

Approx. 7% of Total Gross Loans



RM’ bil

RM’ bilRM’ bil

8.3

8.3

7.4

FY18

FY19

H1FY20

3.7

4.4

4.5

FY18

FY19

H1FY20

Strong~Very

Strong47%Satisfactory~

Moderate44%

Marginal~ Substandard

5%

Impaired4%

Strong~Very

Strong51%

Satisfactory~Moderate

42%


5%

Impaired2%

Strong~Very

Strong65%

Satisfactory~Moderate

31%


1%

Impaired3%

1.8

1.6

1.8

FY18

FY19

H1FY20

101.8 102.0

0.4

0.0

1.1

0.1 0.4 0.4

0.5

1.4 1.3

FY19 MidCorp Large Corp &Others

InvestmentBanking

Mortgage Auto Finance Cards Retail SME Others BusinessBanking

H1FY20

Loans growth in targeted segments


Gross Loans Movement (RM’ bil)

Loans

YTD Growth 3% 8% ≈ 3% 8% 3% 14% 17% 5% ≈

Composition 15% 17% 2% 34% 14% 2% 3% 3% 10% 100%

Retail 1%

1. Annualised2. Based on BNM data of Mar’19 – Sep’193. Based on BNM data following our financial year end

Wholesale 3%

Breakdown by rate sensitivity:Fixed rate – 25%Variable rate –75%

Breakdown by customers type:Retail – 56%Non-retail – 44%

Breakdown by concept:Islamic – 29%Conventional – 71%

Gross loans trend


YTD Growth Industry

≈ 2%2

6% 5%3

6% 4%3

ROA1: 1.01%

RoTA1: 1.03%

96.3

101.8

102.0

FY18

FY19

H1FY20

Ex. Auto : 2%

11.3 11.4 11.7 11.4 11.6 11.8

9.510.6 10.4

13.411.5 11.6

20.822.0 22.1

24.923.1 23.4

21.1%21.8%

20.7%

23.3%22.5% 22.8%

Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20

Retail CASA Non-Retail CASA CASA Composition (%)

41.3 42.9 40.0 40.1 38.6 35.3

11.3 11.4 11.7 11.4 11.611.8

36.6 35.9 44.7 42.0 41.0 44.1

9.5 10.610.4 13.4

11.5 11.6

98.6 100.8106.8 106.9

102.8 102.7

5.5% 5.5% 5.7% 5.5%

5.3% 5.3%


Retail FD Retail CASA

Non-Retail FD Non-Retail CASA

AmBank Group Deposits Market Share (%)

102.7

106.9

95.8

H1FY20

FY19

FY18

Managing liquidity positions


Deposits (RM’ bil) CASA (RM’ bil) and CASA Composition (%)

Deposits

1. Based on BNM data of Mar’19 – Sep’192. Based on BNM data following our financial year end

Retail DepositMix

53.3% 53.8% 48.4% 48.2% 48.9% 45.8%

Customer deposits trend CASA trendYTD Growth Industry

4% 1%1

12% 5%2

2% 5%2

YTD Growth Industry

6% 3%1

22% 3%2

3% 6%2

1

Retail CASAMix

54.2% 51.6% 52.8% 46.0% 50.1% 50.3%

23.4

24.9

20.4

H1FY20

FY19

FY18

5.0 5.0 5.0 5.0 5.0 6.0

10.5 12.6 10.015.0

15.517.6

15.0

20.0

36%40% 40% 40%

22%25%


Interim Dividend (sen) Final Dividend (sen) Dividend Payout (%)

11.3% 11.6% 11.1% 11.9% 12.6%

12.3% 12.5%

16.1% 16.3%

13.6%15.4%

16.1%


CET 1 Tier 1 Total CAR

133.8 134.8 137.9158.8 153.8

71.2% 72.2% 72.2%

65.0% 66.9%

59.6% 59.5% 59.3% 58.4% 58.2%


Total Assets RWA/Total Assets Peers

Improved capital levels


Financial Holding Company CET1

RWA/Total Assets Capital Adequacy Ratios3

Capital

RM’ bil

1. Based on an average of our seven peer domestic banks as at 30 June 20192. FHC RWA/Total Assets

1

7


3. After deducting proposed dividends 4. Aggregated banking entities5. FHC CET 1 and Tier 1 Ratio are the same

FHCAggregated basis4

2

2

5 5

55

2

5

Dividend Payout

6. AmBank Group’s Insurance Holding

6

7. Proposed interim dividend

11.86%

12.76%12.58%

0.61% 0.03% 0.05%0.09%

0.14%

0.00% 0.02%0.18%

Q1FY20 Profit forQ2 FY20

Transfer (to)/ from

RegReservefrom RE

CreditRWA

MarketRWA

Operational&

other RWA

AHBDividendIncome

from AMABHoldings

Others Q2FY20before

dividend

Proposedinterim

dividend

Q2FY20

Guidance & Expectations


Guidance

7.9%

49.4%

6.0sen

12.6%

Reported ROE

CTI

Dividend Payout

FHC CET 1

H1FY20 ActualRevised

FY20 Guidance

~ 8.0% - 8.5%

≤ 50.0%

45% - 50%

11.5% ± 1%

Thank You

Group Performance

43.3 44.137.6

50.0

23.1 23.6

1.05%1.09%

0.91%1.08% 1.06% 1.01%


EPS ROA

58.8% 57.4% 60.8%54.3% 50.4% 49.4%

0.8% -0.6%

12.0%

-12.0% -8.7%

3.6%


CTI Expenses Growth

3,696 3,766 3,979 3,922

2,021 2,133

36%39% 38%

34% 36% 37%


Total Income (Underlying) Non-interest Income %

1,302 1,325 1,132

1,505

696 711

8.8% 8.5%7.0%

8.8% 8.2% 7.9%


PATMI ROE (%)

Yearly performance


Cost to Income Ratio and Expenses Growth (%) ROA (%) and EPS (Basic)

PATMI (RM’ mil) & ROE (%) Total Income (RM’ mil) and Non-interest Income (%)

H1FY2020 Results

PATMI: ROE:CAGR FY16-FY19: 4.9% CAGR FY16-FY19: ≈YoY Growth 2.2% YoY Growth 0.3%

Total IncomeCAGR FY16-FY19: 2.0%YoY Growth 5.6%

CTI: Expenses:CAGR FY16-FY19: 1.5% CAGR FY16-FY19: 0.7%YoY Growth 1.0%

ROA: EPS:CAGR FY16-FY19: ≈ CAGR FY16-FY19: 4.9%YoY Growth 0.1% YoY Growth 2.2%

1

1. AnnualisedSource : BNM, financial statements

98.4

99.9 100.4

101.8100.8

102.0


4.96% 4.94% 5.02% 4.88%

3.27% 3.26%3.45%

3.29%

1.98% 2.00% 1.89% 1.89%

1.69% 1.68% 1.58% 1.59%

FY17 FY18 FY19 H1FY20

5.08% 5.07% 5.03% 4.92% 4.93% 4.83%

3.39% 3.47% 3.46% 3.45% 3.37%3.22%

2.02% 1.91% 1.88% 1.78% 1.87% 1.91%

1.69% 1.60% 1.57% 1.47% 1.56% 1.61%


Gross Yield COF NIM Net Spread

91.0

96.3

101.8

FY17 FY18 FY19

Net interest margin and gross loans


Quarterly Gross Loans (RM ‘bil)

NIM Trend

NIM & Gross Loans

1. Net spread equals to Gross Yield less COF

1

QoQ Growth: 1%YTD Growth: ≈

Corporate Banking11%

Group Treasury & Market

14%

Investment Banking

8%

Fund Management7%

Business Banking5%Wealth

Management6%

Cards5%

Other Retail5%

Insurance37%

Others2%

Wholesale Banking

25%

Investment Banking

15%

Business Banking

5%

Retail Banking

16%

Insurance & Others

39%

Retail Banking22%

Wholesale Banking

60%

Investment Banking

5%

Business Banking

7%

Insurance11%

Group Funding

& Others

-5%

ReportedRM711mil

Non-interest income and PATMI mix


Non-interest Income by Lines of Business (YoY) PATMI by Lines of Business (YoY)

NoII & PATMI

19%

≈

10%

15%

11%

>100%

10%

3%

12%

30%

19%

2%

21%

14%

5%

17%

13%

10%

1

1. After deducting share of minority interests

25%

3%

2%Non-interest

incomeRM785 mil

Total impairments by category (RM’ mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 QoQ Change H1FY19 H1FY20 YoY Change

ECL Stage 1 & 2 / CP – Non defaulted1 (71) (9) 50 (14) (128) (38) 70% (80) (166) >100%

ECL Stage 3 / CP – Defaulted 136 144 138 131 163 182 11% 280 345 23%

Individual Provisions 46 34 (17) (17) 9 123 >100% 80 132 66%

Recoveries (117) (134) (215) (371) (93) (120) 30% (251) (213) 15%

Other Provisions2 13 (24) (7) 1 15 (37) >100% (11) (22) >100%

Total net impairments / (writeback) 7 11 (51) (270) (32) 109 >100% 18 77 >100%

Total impairments by divisions (RM’ mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 QoQ Change H1FY19 H1FY20 YoY Change

Wholesale Banking (39) (12) (142) (32) (106) 48 >100% (50) (59) -16%

Investment Banking (5) 1 (1) (1) (0) 1 >100% (5) 0 >100%

Retail Banking 42 19 51 (251) 59 37 38% 61 96 56%

Business Banking 2 1 12 16 14 27 93% 3 41 >100%

Group Funding & Others 5 3 32 (3) (1) (1) 62% 8 (2) >100%

General Insurance 2 (1) (2) 0 2 (2) >100% 1 0 -58%

Total net impairment / (writeback) 7 11 (51) (270) (32) 109 >100% 18 77 >100%

GIL Ratio (%) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 QoQ Change YoY Change

Wholesale Banking 2.54% 2.27% 2.18% 2.01% 1.90% 2.06% 16bps 21bps

Investment Banking 0.12% 0.12% 0.13% 0.10% 0.11% 0.11% ≈ 1bps

Retail Banking 1.26% 1.32% 1.32% 1.28% 1.44% 1.51% 7bps 19bps

Business Banking 2.41% 2.53% 1.68% 2.18% 2.39% 2.52% 13bps 1bps

Group 1.77% 1.72% 1.62% 1.59% 1.66% 1.77% 11bps 4bps

Industry 1.59% 1.53% 1.45% 1.50% 1.57% 1.61% 4bps 9bps

Impairments


Net Impairment / (Writebacks) and GIL Ratio

Asset Quality

1. Includes macro provision 2. Includes foreclosed property, trade & sundry debtors and provision for contingencies

LoansComposition 3% 2% 12% ≈ 4% 7% 3% 5% 7% 2% 55% ≈ 100%

YTDGrowth 1% 13% 5% 20% 1% 1% 1% 3% 11% 31% ≈ 7% ≈

Loans by sector vs. industry


Industry (RM’ bil)

AmBank Group (RM’ bil)

Loans

Source : BNM, financial statements

LoansComposition 2% 1% 7% 1% 5% 7% 2% 7% 7% 2% 58% 1% 100%

YTDGrowth 3% 19% 2% 16% 3% 2% 1% 1% 1% 1% 2% 3% 2%

AgricultureMining & Quarrying

ManufacturingElectricity,

Gas & WaterConstruction

Wholesale, Retail, Hotels &

Restaurant

Transport, Storage & Com

Finance, Insurance, & Biz Act

Real EstateEducation &

HealthHousehold Others Total Loans

3.2 1.9 12.3 0.4 4.5 6.9 2.8 4.77.4 2.1

55.6

0.3

102.0Sep-19

36.0 9.9 116.2

14.5 93.8 128.8 39.5 113.0 114.2

40.6

1,015.9

25.1

1,747.5

Sep-19

32%

68%

< 1 yr > 1 yr

88%

9%

2% 1%

< 6 mth 6-12 mth 1-3 yr 3-5 yr

Funding profile


LDR / LTAF2

Funding Composition vs. Peers Funding Maturity Profiles

Funding

FY16 FY17 FY18 FY19 H1FY20 Peers1

Equity & debt capital 16% 16% 16% 15% 16% 16%

Customer deposits 73% 74% 74% 74% 73% 74%

Term funding & loans soldwith recourse

10% 9% 7% 6% 5% 5%

Deposits from banks & FIs 1% 1% 3% 5% 6% 5%

Deposits from Customers, Banks & FIs

Term Funding and Debt Capital

1. Based on an average of seven peer domestic banks as at 30 June 2019

H1FY20:RM5.8 bil

H1FY20:RM111.6 bil


LDR 97.3% 96.9% 100.5% 95.3% 99.3%

LTAF2 83.0% 87.3%

2. Loan-to-Available-Funds ratio (LTAF) refers to gross loans (excluding financing funded by Islamic Investment Accounts and loans sold to Cagamas) divided by deposits plus borrowings and sub debt

Divisional Performance

182 173

244

184

259

165

Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20Wholesale

Banking Coverage

41%

Group Treasury & Markets

36%

Transaction Banking

23%

Wholesale Banking

Coverage 37%

Group Treasury

& Markets

54%

Transaction Banking

9% Total AssetsRM74.3b


Disbursement Repayment

Wholesale Banking


Total Income (YoY Movement) and Total Assets by Line of Business QoQ PAT (RM’ mil)

Wholesale Banking

Corporate Banking Loan Disbursement and Repayment

Total IncomeRM636 mil

7%

>100%

QoQ Growth: 36%YoY Growth: 19%

5%

H1FY19: 355 H1FY20: 423

Wholesale Banking


Balance Sheet (RM’ mil/%)

Income Statement

Key Ratios

Wholesale Banking

YoY Growth 14% 21% 16% 5% 20% 16% 20% 20% 19%

RM' milNet Interest

IncomeNon-Interest

IncomeTotal Income Expenses PBP Impairment PBT Tax PAT

H1FY20 440 197 636 144 492 (59) 551 127 423

H1FY19 385 162 547 137 410 (50) 461 106 355

H1FY20 FY19 YTD Change

Gross Loans / Financing 32,501 33,519 3%

Gross Impaired Loans 668 675 1%

Customer Deposits 49,022 49,002 ≈

CASA 9,586 11,411 16%


GIL Ratio 2.06% 2.01% 5bps

CTI 22.7% 26.3% >100bps

Loan Loss Coverage 43.4% 62.3% >100bps

ROA1 1.11% 1.09% 2bps

H1FY20 PAT H1FY19 PAT Positive growth in H1FY20 Contraction in H1FY20

1. Annualised

Investment Banking


Fund Management – AUM (RM’ bil)

League Table Market Share of Value and Volume Traded on Bursa (KLSE)1

Investment Banking

Market Share1 As At 30 Sep 2019 (%)

Rank2

DCM (Overall MYR Bonds) 10.1% 3

Islamic Sukuk 9.4% 4

Unit Trust 8.5% 5

Stockbroking 4.9% 7

M&A 6.8% 5

Fund Raising 13.9% 2

1. Calendar Year data2. Comparing rank movement with 30 June 2019

5.7%5.5%

5.0%4.9% 4.9%

3.9% 3.8%

3.6%3.4%

3.6%

2015 2016 2017 2018 3Q19

Trading Value Trading Volume

36.2 37.135.7

40.543.5


Investment Banking



Income Statement

Key Ratios

Investment Banking

YoY Growth 4% 15% 11% 4% 28% >100% 12% 14% 13%

RM' milNet Interest

IncomeNon-Interest


H1FY20 23 116 139 90 48 0 48 10 38

H1FY19 24 100 124 87 38 (5) 43 9 34


Gross Loans / Financing 1,595 1,592 ≈


Customer Deposits 775 744 4%

CASA 148 123 21%



CTI 65.0% 71.7% >100bps

Loan Loss Coverage 100.0% 100.2% 20bps

ROA1 3.27% 2.23% >100bps

Average AUM 52,272 47,311 10%


1. Annualised

Auto13%

Mortgage14%

Cards16%

Personal Financing2%

Deposits39%

Wealth6%

Retail SME8%

Others2%

Auto 24%

Mortgage61%

Cards 5%

Retail SME 5%

Others5%

Total loansRM57.6 bil

75

114

98

281

71

86


Retail Banking


Total Income (YoY Movement) and Loans by Line of Business PAT Trend (RM’ mil)

Retail Banking

Total IncomeRM727 mil

QoQ Growth: 21%YoY Growth: 17%

1%

1%

2%

4%

18%

10%

16%

45%

H1FY19: 189 H1FY20: 156

2,688 2,764 2,629 2,625 2,553 2,594

53 51

4438 37 36


Merchant volume (RM'mil)

Merchants in force ('000)

675 702

866

677

800 822


-

200

400

600

-

20

40

60

80


Car

ds

in c

ircu

lati

on

Ne

w c

ard

s is

sue

d

New cards issued ('000) Cards in circulation ('000)


Mortgage Auto Finance

Retail Banking


Credit Cards Mortgage and Auto Finance Quarterly Disbursement

Wealth Sales (RM’ mil) Merchant Volume

Retail Banking

QoQ Growth: 2% YoY Growth: 6%

QoQ Growth: 3% YoY Growth: 29%QoQ Growth: 3%YoY Growth: 18%

Mortgage QoQ Growth: 2%Auto Finance QoQ Growth: 19%

H1FY19: 1,377 H1FY19: 1,622

H1FY19: 5,452 H1FY20: 5,147

Retail Banking



Income Statement

Key Ratios

Retail Banking

RM' milNet Interest

IncomeNon-Interest


H1FY20 601 125 727 425 301 96 206 49 156

H1FY19 592 132 724 416 309 61 248 59 189




Customer Deposits 47,016 51,520 9%

CASA 11,751 11,448 3%



CTI 58.5% 58.0% 50bps


ROA1 0.55% 1.01% 46bps

Average AUM 1,364 1,379 1%

YoY Growth 2% 5% ≈ 2% 2% 56% 17% 17% 17%


1. Annualised

AmBank Islamic

branches

Weekend banking

branches

ATMs @ 7-Eleven

Electronicbanking centres

Internet &mobile banking

AmGeneral AmMetlifeAmInvestment

Bank

AmCardServices

MBC

Distribution Channels


Retail Banking

Branches ATM Regional Offices

Perlis 1 3

Kedah 6 24

Pulau Pinang 14 51 2

Perak 18 45 1

Selangor 36 217 3

Kuala Lumpur 23 100 3

Putrajaya 1 3

Negeri Sembilan 7 39

Melaka 6 34 1

Johor 21 82 1

Pahang 8 28 1

Terengganu 2 14

Kelantan 2 17

Sabah 9 40 1

Labuan 1 3

Sarawak 15 58 1

170 758 14

1. Data shown as at 30 September 20192. MBC – Merchant Business Centres

Other Customer Touch Points

Population Density

< 100 persons per km2

101-500 persons per km2

501-1,000 persons per km2

1,001-1,500 persons per km2

> 1,501 persons per km2

2 2 256 178 AmOnline 29 branches4 counters

15 branches42 agencies

6 retail broking7 branches

15

33

36

2927

29

19


1,439 1,804 1,881 2,052 2,099 2,176

3,085 3,292 3,498

3,776 3,808 4,017

4,524

5,096 5,379

5,827 5,907 6,193


CASA FD

5,934 6,364 6,833 7,523 7,607 7,898

2,060 2,219

2,222 2,441 2,462 2,527

7,994 8,583

9,055

9,964 10,06910,425


Non-trade Trade

Business Banking


Customer Deposits (RM’ mil)

Gross Loans (RM’ mil) QoQ PAT (RM’ mil)

Business Banking

QoQ Growth: 33%YoY Growth: 30%YTD Growth: 5%

YTD Growth: 6%

H1FY19: 69 H1FY19: 48

Business Banking



Income Statement

Key Ratios

Business Banking

YoY Growth 17% 10% 15% 17% 14% >100% 28% 22% 30%

RM' milNet Interest

IncomeNon-Interest


H1FY20 134 42 177 73 104 41 63 15 48

H1FY19 115 38 153 62 91 3 88 19 69





CASA 2,176 2,052 6%



CTI 41.4% 39.4% >100bps


ROA1 0.97% 1.47% 50bps


1. Annualised


GIF Ratio 2.04% 1.95% 9bps

CTI 34.6% 38.0% >100bps

Financing Loss Coverage1 102.7% 103.2% 50bps

ROA2 0.90% 0.79% 11bps


Gross Financing 29,690 29,330 1%

Gross Impaired Financing 605 573 6%


CASA Deposits 8,421 8,969 6%

Islamic Banking



Income Statement

Key Ratios

Islamic Banking

RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ

H1FY20 435 150 285 52 232 51 181

H1FY19 411 155 256 80 176 39 137

YoY Growth 8% 3% 11% 34% 32% 31% 32%

H1FY20 PATZ H1FY19 PATZ Positive growth in H1FY20 Contraction in H1FY20

1. Annualised

82% 81%79% 79%

80% 79%

18% 19%21% 21%

20% 21%

1,567 1,5801,474 1,527

734 769


Motor Non-Motor

194 192

282

242

164

187

180170

246

198

134150


PBT PAT

General Insurance


Gross Premium Mix and Growth (RM’ mil)

Loss Ratio and Combined Ratio YoY PBT and PAT (RM’ mil)

General Insurance

1. Includes write-back of prior year tax provisions

1

YoY PBT Growth: 14%YoY PAT Growth: 12%

YoY GWP Growth: 5%YoY Motor Growth: 4%

YoY Non-motor Growth: 6%

64% 63% 57% 58% 53% 57%

96% 97%92% 92%

86%91%


Loss Ratio Combined Ratio

Insurance and Group Funding & Others


Income Statement – Group Funding & Others

Income Statement – Insurance (General, Life & Takaful)

Insurance & Others

RM'mil Total Income Expenses PBP Impairment PBT Tax PAT

H1FY20 359 171 188 0 188 37 151

H1FY19 351 169 182 1 182 30 152

RM'mil Total Income Expenses PBP Impairment PBT Tax PAT MI PATMI

H1FY20 96 151 (55) (2) (53) (21) (32) 74 (106)

H1FY19 120 148 (28) 8 (36) 0 (36) 66 (102)

YoY Growth 2% 1% 3% 58% 3% 24% 1%

YoY Growth 20% 2% 97% >100% 47% >100% 12% 12% 4%


Shareholding structure


Corporate Structure

AMMB Holdings Berhad

23.8%1 AmCorp 13.0% PNB 9.0%2 EPF 8.0% Others 46.2%

100% AmBank (M) Berhad

100% AmInvestment Group Berhad

100% AmInvestment Bank Berhad


26% 26% 23% 26% 27%

1.ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited2.Based on amalgamation of shares held by funds managed by PNB3.MetLife owns 50% plus one share in AmMetLife Insurance Berhad, with the remaining shares held by AmBank Group, and AmBank Group owns 50% plus one share in AmMetLife Takaful Berhad, with the remaining

shares owned by MetLife

Foreign shareholding excluding ANZ

100% AmBank Islamic Berhad

100% MBF Cards (M’sia) Sdn Bhd

33.33% Bonuskad Loyalty Sdn Bhd

100% AMAB Holdings Sdn Bhd

51% AmGeneral Holdings Berhad

~50% AmMetLife Takaful Berhad3

~50% AmMetLife Insurance Berhad3

100% AmGeneral Insurance Berhad

49%

~50%

~50%

As at 30 September 2019

Retail Banking Wholesale Banking Islamic Banking General Insurance Life Assurance & Takaful

4.20 4.20 4.25 4.30 4.30 4.39 4.40 4.40 4.40 4.45 4.75 4.75 4.90 4.95 5.20 5.30

KAF MIDF HLIB ADBS JP CIMB CLSA TA UOB RHB KEN MBB PIVB CITI NOMURA AFFIN

Credit ratings, target price and recommendations


Ratings & Target Price

Credit Ratings

Target Price and Recommendations

Buy / Outperform / Overweight / AddAverage target priceSell / Underperform / Fully valued / Reduce / Underweight

Hold / Neutral / Market perform / Equalwt / In line Source Bloomberg, Research House Report as at 30 September 2019

P/EPS : 8.04 Closing Price: RM 4.14 Average TP : RM 4.57

P/BV : 0.69 Market Cap: RM 12.48 bil Buy : 8 (50%)

Hold : 7 (44%)

Sell : 1 (6%)

Ave. TP/ Ave. CP : 1.11x

H1FY20Ratings

AMMB AmBank (M) AmBank Islamic AmInvestment

RAM LT: AA2, ST: P1 Outlook: Stable

LT: AA2, ST: P1Outlook: Stable

LT: AA2, ST: P1 Outlook: Stable

LT: AA2, ST: P1 Outlook: Stable

S&P LT: BBB+, ST: A-2Outlook: Stable

Moody’s LT: A3, ST: P-2Outlook: StableBCA: baa2Adj BCA: baa2

RH1 RH2

Glossary & Disclaimer of warranty and limitation of liability


Glossary & Disclaimer

Reported PerformanceReported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market

Growth DefinitionQoQ growth refers to Q2FY20 vs Q1FY20YoY growth refers to H1FY20 vs H1FY19YTD growth refers to H1FY20 vs FY19

Disclaimer on rounding differencesNumbers may not add up due to rounding

Disclaimer on restatement of comparativesThe comparatives for business segments’ financials have been restated to reflect current business realignment

The information has been prepared by AMMB Holdings Berhad (AmBank Group or the Group) for information purpose and is believed to be correct at the time of presentation. No representationor warranty, express or implied, is given by or on behalf of AMMB Holdings as to the accuracy and completeness of the information or opinion contained in this presentation.

This presentation does not purport to contain all information that may be required to evaluate AmBank Group or its financial position and should not be construed as an offer or recommendationto buy or sell securities. Neither does this presentation to form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

Certain statements in this presentation may contain forward-looking statements. These forward-looking statements are based on current beliefs and expectations of the Group and are subject tosignificant risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

The term “AMMB Holdings” and “AmBank Group” denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to thefinancial institutions under AMMB Holdings.

For further information, visit www.ambankgroup.com;

or contact

Chelsea Cheng Chuan Shing

Head, Group Finance – Investor Relations

Tel : +603 2036 1425

Fax: +603 2070 8262

Email: [email protected] / [email protected]

Teng Li Lin

Vice President, Group Finance – Investor Relations

Tel : +603 2036 1435

Fax: +603 2070 8262

Email: [email protected]

http://www.ambankgroup.com/

mailto:[email protected]



Documents

AMMB Investor Presentation H1FY20 - AmBank · H1FY2020 Results –Investor Presentation 3 Financial Snapshot H1FY20 Financials H1FY20 Resilient growth Profitability (RM’ mil) Income