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Humanising Financial Services
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9 April 2021
Investor Day 2021Maybank Group’s Five-Year Strategy: M25
0
Teamwork Integrity Growth Excellence & Efficiency Relationship Building
Who We Are
Humanising Financial Services
Serving our
communities in ways
that are simple, fair
and human.
OUR CORE VALUES
OUR MISSION
OUR UNIQUE
DIFFERENTIATORS
OUR STRUCTURE
Our Three Business Pillars…
… Enabled by Group Corporate Functions
Group Community Financial Services
Group Global Banking
Group Insurance & Takaful
Over 42,000 Maybankers
who serve the mission,
empowered by our
TIGER Core Values.
Our strong retail
community
franchise spanning
across ASEAN.
Islamic Finance leverage model
1
Our Strategic Journey
Creation of the “House of Maybank”
Strengthen position in our three core
markets of Malaysia, Singapore and
Indonesia.
Building on strategic acquisitions made in
Indonesia (PT Bank Internasional
Indonesia in 2008) and investment
banking (Kim Eng Holdings Ltd in 2011).
Refocus growth agenda in target regions
and exited Papua New Guinea.
Strengthen our position in ASEAN across
all our key businesses.
Digital technology becomes a key theme.
Continue to build on capital and liquidity
strengths given evolving capital and
liquidity regulatory requirements.
Drove sustainability-led initiatives as per
five-year 20/20 Sustainability Plan
established in 2015, premised on three
pillars (community and citizenship; our
people; access to people and services)
2010-2015
2016-2020
2021-2025
The Top ASEAN Community Bank
The Leading ASEAN Wholesale Bank Linking Asia
The Leading ASEAN Insurer
The Global Leader in Islamic Finance
The Digital Bank of Choice
Sustainability agenda embedded in long-
term strategy to become Bank’s DNA.
Bettering customer experience and
interface through enhanced digitalisation
and data analytics.
Extracting growth from new value
drivers.
2
Our Regional Strategy Contributed to Our Earnings Growth
• Positive macroeconomic conditions with strong
GDP growth in home markets (MY & IND: 5%-6%, SG: 3%-6%).
• Strong upside in the commodity sectors given growing economies.
• Given robust operating environment growth and Maybank’s repositioning of business segments,
net profit expanded >1.5 times from RM4.45* billion in FY2011 to RM6.84 billion in FY2015.
• Given rising geopolitical uncertainties, slowing
economic growth between 2016-2019 (MY: >4%, SG: 0.7%-4%, IND: 5%) and volatility in commodity
markets, we focused on building capital and liquidity strengths as well as new fee income streams.
• Focus on digitalisation in line with aspiration to become The Digital Bank of Choice.
• Re-balancing asset and liability portfolio strategies to optimise risk/returns in line with evolving risk
management practices, enabling optimal shareholder returns (i.e.: better effective dividend
cash payout) and improved capital management.
2011-2015:
Transformation & growth
2016-2020:
Building on capital and liquidity management
2021-2025:
Sustainable new drivers
• Key business decisions will be based on ESG
principles with customers and the community being at the foremost in
everything we do.
• New value drivers focused on digital-play
(digital inclusion for SMEs, digitalising the Wholesale Banking customer experience,
scaling up digital insurance business), strengthening wealth proposition with
Universal Private Bank, expanding Islamic Banking from credit to investment
intermediary to grow fee income contributions, and tapping on cross border
opportunities of the various corridors.
*The RM4.45 billion Net Profit is based on 12-month ending 30 June 2011, while 2011 bar chart data is based on calendar year. The differing figures is due to fiscal period change in 2011.Source: data.worldbank.org for GDP data
12.3214.82
16.7718.54 18.53
21.24 22.17 23.24 23.66 24.74 24.76
6.5 7.36 8.54 9.61 9.42 10.95 11.69 11.91 12.42 13.18 13.52
3.82 4.88 5.75 6.55 6.72 6.84 6.74 7.52 8.11 8.26.48
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021f 2025f
Net Operating Income PPOP Net Profit
2010-2015: 5-Year CAGRNet Operating Income : 11.5%PPOP : 11.0%Net Profit : 12.4%
2015-2020: 5-Year CAGR Net Operating Income : 3.1% (3.9%)PPOP : 4.3% (4.7%)Net Profit : -1.1% (4.6%)
* Figure in bracket is 4-year CAGR, excluding
2020 due to COVID-19 pandemic
(RM
’ billion)
2020-2025: 5-Year (f)ROE : 13-15% CIR : <=45%
3
15.9
0
12.6
0
15.3
1
14.7
0
15.2
0
13.1
8
13.9
0
11.3
0
12.8
9
10.8
7
10.0
0
21.50
18.90 18.68 18.40 17.9016.88 16.80 16.40 15.77 15.69
13.70
HSBC CBA Maybank UOB OCBC ICBC DBS ANZ SHINHAN BOC WOORI
Capital Adequacy Ratio1
CET1 (%) AT1 (%) Tier 2 (%)
93.9% 93.4% 92.7% 92.4% 90.1%
151.9%
133.1% 132.4%141.0% 142.0%
36.0% 37.3% 35.9% 35.5%42.8%
FY2016 FY2017 FY2018 FY2019 FY2020
Liquidity Risk Indicators
LDR LCR CASA Composition
We Continue to Maintain Strong Capital & Liquidity Positions…
19.29% 19.38% 19.02% 19.39%
18.68%
13.99%14.77% 15.03%
15.73% 15.31%
FY2016 FY2017 FY2018 FY2019 FY2020
Total Capital Ratio & CET1 Ratio
Total Capital Ratio CET 1 Ratio
Source: 1. Bloomberg data as at 31 March 2021. Note: Calculation of RWA density = RWA / Total Assets.
Maybank’s capital and
risk-weight assets
density positions
compare very favorably
relative to peers.
Our past emphasis on
healthy liquidity and
capital levels gave us an
edge to enter this
pandemic from a
position of strength.
28.7%
41.2% 41.6% 41.8% 42.9%47.1%
49.4% 50.5% 52.2%
60.4% 62.2%
HSBC ANZ SHINHAN OCBC CBA Maybank DBS WOORI UOB ICBC BOC
RWA Density1
4
11
28 3222.5 24
2420 23 25
25
13.5
44
32
36
33
3133 30
3232 32
39
38.5
FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Final
Interim
…Enabling Steady Shareholder Rewards & Better Cash Payouts up to FY19Total dividend payout ratio consistently above 40-60% policy rate
76.5% 74.9% 79.9% 74.7% 71.9% 78.5% 76.3% 78.1% 78.5% 77.3%87.8% 91.2%
Dividend (sen), Payout Ratio, Yield and Cash Component (%)
Effective Cash Dividend Paid Out
from Net Profit
60.4% 61.4% 26.2% 17.2% 17.0% 19.0% 22.0% 29.0% 23.2% 28.6% 57.2% 47.1% 87.8%
Note:
* Actual Reinvestment Rate for Dividend Reinvestment Plan. The reinvestment rate for Final Dividend FY2020 is pending the execution of the 20th DRP.
+ The Final Dividend for FY2017, Inter im and Second Inter im Dividend (reclassification from Final Dividend) for FY2019 were fully in cash.
# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend. Maybank adopted the single-tier dividend regime with effect from FY2012.
• Effective Cash Dividend Paid Out for FY2020 is based on the actual reinvestment rate for Inter im Dividend FY2020 and an 85% reinvestment rate assumption for Final Dividend FY2020.
27% 13% 11% 12% 20% 25% 19% 27%67% 53%
100%
34%
39.3%
FY08 FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
85.9%*
85.7%*
88.2%*85.9%*
88.5%*91.1%*
86.1%*
88.6%*
82.6%*
84.0%*
83.7%*
87.5%*
89.1%*
83.5%* 85.7%* 84.0%*
+
81.7%*
+
+
#
55.060.0
36.0
65.0
53.557.0
54.0 52.055.0 57.0
64.0
87.4%*
52.0
7.3% 6.7%
4.2%
7.1%5.4% 6.2% 6.4% 6.3% 5.6% 6.0%
7.4%
6.1%
Dividend Payout Ratio
Cash Component of Total Dividend
Gross Dividend Yield
5
Maybank2020: Achievements in Key Strategic ObjectivesThe Top ASEAN Community Bank
To be a leading retail & commercial financial services provider in ASEAN, leveraging our regional presence, banking expertise and growth opportunities in ASEAN.
Consumer adoption rate using
digital platforms:
2020: 66.1%
2016: 36.3%
Monetary transactions through
digital platforms (YoY growth):
2020: 53.0%
2016: 34.5%
% of core product sales
generated through digital
platforms:
2020: 78.6%
2016: 23.8%
Winner:
• Regional winner (Asia Pacific) for Best Website Design
Award 2020 by Global Finance Magazine 2020.
• Asia Trailblazer of the Year 2020 by Retail Banker
International Asia Trailblazer Awards 2020.
• World’s Best Consumer Digital Bank Awards in Asia
Pacific (Malaysia, Indonesia) by Global Finance Magazine
2020.
• Best Digital Bank in Malaysia and Indonesia by Global
Retail Banking Innovation Awards 2020
Group Wealth Management recorded 8.3% CAGR growth in total
AUM over the last five years:
2020: RM244.0 billion
2016: RM177.7 billion
Leader in digital banking:
Largest market share in Malaysia with 60.7% in mobile
banking.
Regional Retail SME recorded
8.4% five-year CAGR growth
in loans:
2020: RM32.7 billion
2016: RM23.7 billion
Introduced many innovative and first-to-market digital solutions such as:
• MAE by Maybank2u, a lifestyle app.
• New and improved Maybank2u app with biometric and Secure2u features.
• QRPay and Tap2Phone, affordable digital payment solutions for small
merchants.
• SME Digital Financing with 10-minute approval.
• EzyQ, an online branch appointment system.
• Fully digital real-time account opening for SMEs in Malaysia.
• Video Know-Your-Customer (KYC) via Maybank2u, enabling fully digital
customer onboarding in Indonesia.
6
Maybank2020: Achievements in Key Strategic ObjectivesThe Leading ASEAN Wholesale Bank Linking Asia
To be the trusted ASEAN financial partner that links Asia by leveraging our ASEAN leadership capabilities to deliver client solutions across Asia.
No. 1 Wholesale Bank in Malaysia by market share of
loans, deposits and trade finance.
Leading Global Banking franchise in the country and region:
• Best Trade Finance Provider in Malaysia by Global Finance Trade & Supply Chain Finance
Awards 2020.
• Best Investment Bank in Malaysia by Euromoney, Global Finance, and Finance Asia.
• Best Broker in Southeast Asia by Alpha Southeast Asia
ESG market leader in Malaysia:
• Consistently ranked No. 1 on the
ESG League Table (Dealogic) since
2017
• Executed noteworthy ESG-driven
deals across the region such as
the LSS3 solar power projects
financing, and Indonesia’s USD2.5
billion Sovereign Sukuk.
Leading brokerage franchise in ASEAN and Top 5 in
Malaysia, Thailand and Indonesia.
Maybank2E expanded ASEAN capabilities across the
region.
Net Promoter Score
(NPS) in Malaysia:
2020: 15
2016: 6.4
Total # of ASEAN DCM
deals:
2020: 82
2016: 56
Group Asset Management’s AUM recorded five-year
CAGR growth of 12.6% to RM32.6 billion in FY2020.
Bloomberg League Table
MYR Islamic Sukuk
2020: 1
2016: 1
Malaysia Bonds
2020: 2
2016: 2
Malaysia ECM
2020: 1
2016: 1
Global Sukuk
2020: 3
2016: 2
ASEAN Local Currency Bonds
2020: 2
2016: 2
7
Maybank2020: Achievements in Key Strategic ObjectivesThe Leading ASEAN Insurer
To be a leading ASEAN insurer by leveraging synergies between Maybank’s regional banking footprint and Etiqa’s expertise in Takaful & bancassurance
NPS in Malaysia:
2020: 24
2016: -7
Regular Premium/Contribution Bancassurance
Market Share in Malaysia:
2020: No. 1 (20.4%)
2016: No. 2 (17.3%)
Life/Family APE Bancassurance
Market Share in Malaysia:
2020: No. 1 (19.4%)
2016: No. 2 (16.0%)
No. 1:
• General Takaful Provider in Malaysia.
• Online Insurer with over 66% market share
in Malaysia.
Implemented Insurance
Advisor Model driving
growth in
bancassurance regular
premium, achieving No.
1 position in Malaysia.
Highest ever revenue:
RM11.27 billion in 2020
(in gross written
premium).
Winner:
• Best Takaful Company 2019 (International Takaful
Awards)
• Top Bancatakaful Producer 2020 (Malaysian Takaful
Association)
Expanded ASEAN footprint from Malaysia and Singapore
to the Philippines (2014), Indonesia (2017) and Cambodia
(2020).
Introduced Etiqa’s
Smile App enabling
customers to access the
full extent of services
including policy details,
service providers and
claim submission.
8
Maybank2020: Achievements in Key Strategic ObjectivesThe Global Leader In Islamic Finance
To continue delivering innovative client-centric universal financial solutions, building on our global leadership in Islamic Finance
Sukuk League Table
MYR
2020: No. 1
2016: No. 1
Global
2020: No. 3
2016: No. 2
MGIB Contribution to Maybank Group
• Largest Islamic Finance
Provider in Malaysia and Asia
Pacific.
• Top 5 Islamic Bank globally by
asset size
Introduced innovative products such as Investment
Account, HouzKEY and the first Shariah-compliant e-
wallet in Malaysia, MAE.
Winner:
• Global Islamic Bank of the Year (2014,
2015, 2020) – The Banker Awards
(Financial Times)
• Asia-Pacific Islamic Bank of the Year
(2016-2020) – The Asset Triple A Islamic
Finance Awards
Established Maybank’s
first branch in the
Dubai-DIFC to drive
GCC-ASEAN flow.
NPS in Malaysia:
2020: 33
2016: -6
Assets
2020 :31.7%
2016: 26.9%
Funding
2020: 35.7%
2016: 27.9%
PBT
2020: 28.2%
2016: 21.2%
Led the development of Islamic Finance in
the region:
• Joint lead arranger for one of the world’s
largest green Sustainable and Responsible
Investment (SRI) sukuk in 2019.
• Contributed and collaborated with
academic, educational and governmental
bodies such as INCEIF, ISRA and IIUM to
develop Islamic Finance knowledge, learning
and banking modules.
9
Maybank2020: Achievements in Key Strategic ObjectivesThe Digital Bank of Choice
To be the digital bank of choice by putting our customers’ preferences first and transforming to deliver next-generation customer experience.
Supporting community development, particularly during the pandemic:
• Launched Sama-Sama Lokal in 2020, a platform that enables small businesses to
operate online at no cost.
• Introduced MaybankHeart in 2016 – the first-of-its-kind digital social fundraising
platform for non-governmental organisations (NGOs).
Further enhanced customer experience by building partnerships, digital assets, platforms and capabilities such as:
Introduced various customer facing capabilities and innovations as
mentioned across the four strategic objectives above, such as SME Digital
Financing with 10-minute approval and MAE by Maybank2u lifestyle app.
Launched Maybank Sandbox as a regional collaboration platform for
FinTech developers to test out new ideas using real banking APIs.
Standardised and rolled out base applications and Straight-Through
Processing capabilities across the countries and geographies to serve our
customers.
Introduced CARisMa (Capital Adequacy and Risk Management), an
integrated system to better manage assets, liabilities and risks.
Established Maybank Labs to augment digital and analytical delivery for
Maybank Group.
Built connections to partner ecosystems to allow seamless payments &
customer experience, i.e. Grab, Lazada and Shopee.
Sealed strategic partnerships with Grab, SamsungPay, Alipay and Shopee. Rolled out FutureReady digital upskilling programmes for employees.
Increased in-house capabilities to manage and develop financial
applications and improve cyber defence capabilities.
First local bank to introduce SWIFT gpi in 2019, enabling speedier,
convenient and secure cross-border remittances.
10
Maybank Is The Most Valuable Company in Malaysia
Source: Bloomberg 11
RankCompany
(Ranking as at 30 March 2021)Market Cap
(RM Bil)Market Price
(RM)No. of Shares
(in Bil)PE Ratio(times)
1 Malayan Banking Bhd 95.88 8.40 11.41 14.57
2 Public Bank Bhd 83.08 4.28 19.41 17.05
3 Petronas Chemicals Group Bhd 64.80 8.10 8.00 40.50
4 Tenaga Nasional Bhd 59.33 10.40 5.70 16.48
5 IHH Healthcare Bhd 47.67 5.43 8.78 240.27
6 CIMB Group Holdings Bhd 44.26 4.46 9.92 37.04
7 Press Metal Aluminium Holdings Bhd 40.87 10.12 4.04 89.40
8 Hong Leong Bank Bhd 40.75 18.80 2.17 15.37
9 Top Glove Corp Bhd 37.29 4.78 7.80 5.66
10 Maxis Bhd 36.38 4.65 7.82 26.12
Note :1 As at 31st December 2020. 2 As at 30th March 2021
Leading Regional Financial Services Group
Strong Financial & Leadership Positions within ASEAN
2,626
retail branches
worldwide
51
investment banking
branches worldwide
Largest Banking Network In Malaysia
& Present in all 10 ASEAN Countries
Total Assets (USD bil)¹
81
81
82
91
94
101
144
238
246
352
67
76
78
86
79
91
130
202
213
286
Bank Rakyat Indonesia
Siam Commercial
Krung Thai Bank
Public Bank
Bangkok Bank
CIMB
Maybank
OCBC
UOB
DBS
Loans Deposits
Loans and Deposits (USD bil)¹
917
1,005
1,160
1,176
1,280
1,542
1,682
1,865
2,412
3,448
Kasikornbank
BDO Unibank
Public Bank
Bank Mandiri
Bank Rakyat Indonesia
Maybank
UOB
Bank Central Asia
OCBC
DBS
PATAMI (USD mil)¹ Market Capitalisation (USD bil)2
No.6
No.4No.4
No.5
109
111
112
122
127
150
213
327
395
492
Siam Commercial
Krung Thai Bank
Public Bank
Kasikornbank
Bangkok Bank
CIMB
Maybank
UOB
OCBC
DBS
Source: Bloomberg. Note: Except for Market Capitalisation, Maybank’s figures are computed based on internal exchange rate assumptions. The deposit balances for Maybank and CIMB are inclusive of Investment Accounts.
12
11.1
12.2
20.0
20.3
23.1
32.2
38.2
39.4
54.2
55.0
Kasikornbank
Siam Commercial
Public Bank
Bank Mandiri
Maybank
UOB
Bank Rakyat Indonesia
OCBC
Bank Central Asia
DBS
Over the Past Decade (Prior to COVID-19 Pandemic), Banks in Our Home Markets Have Seen ROEs Decline…
13Source: ROEs extracted from Bloomberg¹ Maybank’s ROE for 2020 would be below cost of equity due to COVID-19 pandemic
14.5 11.4
10.9
8.1
16.2
9.69.3
2.1
15.2
10.3
10.3
7.7
27.1
14.8
13.6
11.2
16.3
11.3
10.8
9.511.5
7.0 8.87.4
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ROE (%) of Malaysia Banks
Maybank Peer 1 Peer 2 Peer 3 Peer 4 Peer 5
14.5
11.4
10.98.110.2
12.1 13.2
9.112.1
11.5
11.4
7.6
14.3
11.3
11.6
7.4
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ROE (%) of Singapore Banks
Maybank Peer 1 Peer 2 Peer 3
14.5
11.4 10.9
8.1
24.4
14.4
14.09.4
43.8
20.0
18.4
10.5
33.3
18.8 18.016.5
24.7
16.1
14.0
2.9
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ROE (%) of Indonesia Banks
Maybank Peer 1 Peer 2 Peer 3 Peer 4
…with Maybank’s ROE declining at a relatively slower gradient and remaining above its reducing cost of equity ( <9% since 2018¹)
Humanising Financial Services
Operating ContextAgainst these emerging macroeconomic and social trends, our next five year strategy was designed…
Our Operating Context (1/2)
Source: 1) “ASEAN X Macro Global Economy Update: The Good, The Bad, The Uncertain” by MKE Research @ 7 Aug 2020 2) S&P Global Market Intelligence 3) “ASEAN Macro Year Ahead: 2021 Recovery & Reopening” by MKE Research @ 7 Dec 2020 4) “Year Ahead 2021: ASEAN – Herd Immunity & Escape Velocity” by MKE Research @ 7 Dec 2020
We have seen
heightened uncertainty
in the global economy in
the past five years,
impacting the banking
sector ROEs.
Exacerbating this
environment is the
recent pandemic-
induced uncertainties.
Given the volatility
globally and slowing
economic growth, we
have been experiencing
a prolonged low interest
rate environment since
the Global Financial
Crisis, with new interest
rate lows seen in 2020.
Decreasing industry ROE trajectory2
0.00
5.00
10.00
15.00
20.00
25.00
30.00
YTD201920182017201620152014201320122011201020092008200720062005
MY Banks SG Banks ID Banks
Global Economic Policy Uncertainty Index1
Global Average Interest Rates (% p.a.)3ASEAN Central Banks Have Slashed Policy Rates Amid the Pandemic Crisis4
15
Our Operating Context (2/2)
Companies with high
Environmental, Social
and Governance (ESG)
performance relative to
their sector peers have
done well and continue
to attract capital.
Investment trends
continue to show
increasing spend on
digitalisation efforts
across ASEAN, even
during the recent
pandemic, with more
users being on-boarded
on digital banking
platforms.
Source: 1) & 2) “ASEAN X MACRO The Post-Pandemic Normal” by MKE Research @ 13 Nov 2020 3) “Sustainability: New Directions, Expanding Opportunities” by MKE Research @ 20 Oct 2020
Tech Investment in ASEAN Stayed Resilient at USD5.6 bn
in 1H20, more than Double the Amount in 2H191
Mobile Banking App Users Jumped the Most in
Vietnam, Philippines & Indonesia2
16
Perfo
rm
ance o
f M
SCI ESG
index v
s M
SCI
Asi
a e
x-J
apan i
ndex
Yr
Humanising Financial Services
M25Refreshing our mission and anchoring our strategy on three priorities
Humanising Financial ServicesOur purpose has been refreshed to reflect long-term priorities and a new operating landscape
Empowering Everyoneto thrive and advance their ambitions
Poverty Eradicationwith financial inclusion & improved livelihoods
Reduced Inequalitiesacross populations, geographies, gender, etc
Clean & Sustainable Environmentthrough low carbon economy, green
infrastructure
Stronger Institutionvia responsible practices, future-proofing
resilience
• Make financial services simple, intuitive and accessible
• Build trusted partnerships for a sustainable future together
• Treat everyone with respect, dignity, fairness and integrity
H U M A N I S I N G F I N A N C I A L S E R V I C E S
Customers• Best-in-class customer
experience• Convenient access to
financial services (digital & physical)
• Fair terms & pricing; advisory based on needs
• Transition support to sustainable practices
Shareholders• Sustainable and responsible
returns• Strong governance and
transparency
Employees• Growth and capability building• Inclusiveness, diversity and
well-being
Regulators• Standard-bearer for the
industry• Professionalism and business
ethics
Communities• Financial inclusion and
empowerment• Commitment to low-carbon
economy
For our stakeholders:Being at the heart of the community,
we will:To create the following impact:
18
Group Strategic PrioritiesPervasively Digital
CUSTOMERS
TRUST
RESILIENCE
EXPERIENCE
The Core Principles guide.. .. Our Focus Areas… … which is enabled by:
• Pervasively Digital represents our digital efforts to strengthen and deliver more value to the stakeholders, guided by the Core principles of Experience, Trust and Resilience.
• Our goal is to evolve from being a financial services provider to becoming our customers’ lifestyle partner and build wraparoundexperiences within our services, products and platforms.
• Customer Engagement Platforms
• Digital Ecosystems
• Data Monetisation Strategy
• Customer 360 view
• Deepened Engagements
• Reforms in Distribution
• Partnership Ecosystem
• Exploration of New Opportunities
• Workforce capabilities powered by new/digital skills and rethinking models
• Systems, policies and processes that support mobile workforce and agility
• Expansion of Robotic Process Automation
• Strengthened core and auxiliary systems
• Integrated data system
• Enhanced cash management flow
• Multi-cloud tech platforms for quicker server provisioning and scale
• Micro-service platforms for speed and agility
20
Group Strategic PrioritiesNew Value Drivers
• New Value Drivers go beyond the current business-as-usual (BAU) and represent new business growth opportunities covering SME, wealth, trade, ESG and digital. These are transformative initiatives meant to help us grow over the long-term and sustainably build our competitive edge.
• Driving financial inclusion for SMEs through digital and data-led solutions
• Strengthening wealth proposition with one-stop Universal Banking solutions
• Digitalising end-to-end Wholesale Banking customer experience
• Re-imagining the Islamic Banking business by expanding from credit to investment intermediation
• Scaling up digital insurance through strengthened digital position, delivering best Auto digital solutions and becoming the preferred digital bancapartner
Group Community Financial Services Group Global Banking Group Islamic Banking Group Insurance & Takaful
• We aim to defend and grow our customer base, generate income more effectively & efficiently, provide beyond financial services, and fortify our propositions in the different markets we serve.
21
Group Strategic PrioritiesSustainability
• We aim to drive the change for a better world and partner clients to achieve sustainable growth.• Our sustainability agenda is predicated on three key pillars: enabling responsible transition to a low carbon economy,
empowering our communities and leading by example with good governance practices.
Responsible Transition Enabling our CommunitiesOur House is in Order &
We Walk the Talk1 2 3
Leading by example with good management practices and ensuring that Maybank’s ESG strategy is based upon a strong foundation
Enable transition to a low carbon economy balancing environmental and social imperatives
with stakeholders’ expectation
Building community resilience across ASEAN, undertake responsive action to promote
economic development and social well-being
• Supporting the Transition to a Low-Carbon Economy
• Developing Sustainability Focused Products & Services
• Systemic Risk Management• ESG integration in Financial Analysis• Engaging our People in Sustainability• Business Ethics
• Empowering Communities• Financial Inclusion• Climate Resilience• Transparency and Trust• Diversity, Equity and Inclusion
• Governance and Compliance• Privacy• Our Supply Chain• Our Environmental Impact
• Financing Commitments: No Deforestation, No New Peat, and No Exploitation (NDPE) stance approved by the Board in January 2020 (which
applies to all relevant sectors including but not limited to palm oil, forestry and logging, construction and real estate). The Group will not provide financing to black listed activities deemed not in line with the Group’s core values. No financing of new coal activities (transitioning together with existing borrowers to achieve sustainable renewable
energy mix over medium- to long-term)
22
Business Strategic ThrustsPreferred ASEAN Bank – Group Community Financial Services
Group Community Financial Services aspires to be the “Most Preferred Community Bank” through:
23
AIM HOW? OUTCOME
Attain
Forefront Position
in the SME Space
• Strengthen our position in home markets; create a digital eco-system and marketplace –improve SME commerce capabilities and enable connectivity between SMEs and end-consumers
Grow ≥3x borrowing base in MY
Data and Digital-led
Strategy
• Enhance data analytics capabilities – shift towards advanced analytics to better drive customer centricity solutioning and offerings
• Continue to build and upscale our digital banking capabilities and propositions – enable seamless product and service delivery across the region
> 5.0x
Avg product holding
≥ 80.0%
Digital sales contribution and digital customer penetration
rate
Fortify Our
Wealth Management
Propositions
• Position ourselves to be the Universal Private Bank – gateway to full suite of financial offerings ranging from retail to corporate solutions
• Enable regional Private Wealth borderless customer experience – via consistent enhancementof delivery of product and services across our markets
2x growth in
Private Wealth Customers
Business Strategic ThrustsPreferred ASEAN Bank – Group Global Banking
24
Group Global Banking aspires to be the “Valued ASEAN Banking Partner Globally’ through:
AIM KEY ENABLERS STRATEGIC INITIATIVES OUTCOME
Undisputed No.1 In
Malaysia
BUSINESS MODEL SHIFTS Effective Balance Sheet Management, Income
Diversification & Structural Shifts
• Client segment diversification for optimal risk-return profile
• Ramp-up flow business by driving GM-TB sales franchise
• Investment Banking & Investment Management (IM) propositions
• Building community resilience across ASEAN, undertake responsive action to promote economic development and social well being.
>50% five-year CAGR from New
Profit Drivers (NPD) for IB & AMG
income
The Partner Of
Choice For Our
Clients Globally
CLIENT SERVICING MODEL VIA DIGITAL BREAKTHROUGHInfrastructure building to
deliver superior client experience & improve
productivity
• Platform to automate end-to-end on boarding and credit processing
• Trade, treasury and cash platform optimisation to provide integrated flow solutions
10% - 15%improve TAT
>40% five-year CAGR from NPDs for Trade, Treasury & Cash Mgt income
Efficient, Value
Generating
Regional Banking
Franchise
INTERNATIONAL GO-TO-MARKET STRATEGY
Focus on business with sustainable returns
• Reposition our focus in key international markets (SG, ID & Greater China) through targeted segments, infrastructure building, cross-border solutions and tapping into intra-ASEAN and ASEAN+ corridors
• Invest in capacities, infrastructure and capabilities in CLMV & thePhilippines to complete our flow business proposition
>50% five-year CAGR from NPDs for
income through cross-border flows
Business Strategic ThrustsGlobal Leader in Islamic Finance
25
Group Islamic Banking aspires to be a Global Leader in Islamic Finance through Financial Resilience, Global Prominence and Thought Leadership in Sustainable Finance, Product Innovation and Shariah through:
EXPANDED BUSINESS MODEL WHY? HOW? OUTCOME
Credit Intermediation
Investment Intermediation
• Embrace the risk-sharing model that is more equitable in terms of risk-return
• Reduce reliance on balance sheet
• Introduction of multiple funds under Multi-Asset Investment Account (MAIA)
• Investment Account (IA) as Capital Raising Instrument
RM2 billionRevenue
(Over 5 Years)
Fund-Based Income
Fee-Based Income
• Reduce reliance on balance sheet• Manage cost of capital more efficiently
• MAIA/ IA as Capital Raising Instrument• Islamic Estate Planning (IEP) and Investment Solutions
under Islamic Wealth Management (IWM)• Amplifying trade financing solutions for Halal industry
30%Fee-Based
Income Composition
Traditional
Digital
• Reduce costs and widen the reach of our products and services
• Stay ahead of the curve, riding the digital wave• Provide seamless customer service
• Adoption of Group CFS Digital Ecosystem initiatives including Halal Marketplace and Digital distribution for MAIA and IWM
<25%Cost income ratio
Domestic Contribution
International Contribution
• Capture the opportunities in the growth markets such as Indonesia, Singapore and GCC
• Enlarge the pool of income beyond Malaysia. To be a truly global Islamic bank
• Indonesia – Shariah First strategy and SOE deals• Singapore – IWM business• Dubai – Sukuk, syndicated financing and trade finance
25%International
Contribution to PBT
Typical Banking Solutions
Social Finance
• Empower underserved segments economically. Up-scale them to be bankable customers
• Amplify the social impacts of Islamic finance
• Micro financing solutions• Cash Waqf Funds• Social Enterprise Incubation Programme
PositiveSocial Impact
Indicators
Business Strategic ThrustsLeading ASEAN Insurer
26
Etiqa aspires to be “A Leading ASEAN Insurer” in line with its purpose of “We Want To Make The World A Better Place” by putting the interests of our customers & communities first and providing protection & wellness offerings to as many people as possible.
Be the #3 ASEANowned insurer
Continue to be Agile & have SCRUMas a key enabler
More than Double our Toplinewith a CAGR of 15% over the next 5 years
Grow our PBTwith a CAGR of 12% over the next 5 years
Retained our #1 Bancassurance position while securing a broader base of Banca partners
Expanded our #1 Digital Insurer position across the Region while offering personalised services online
Establish an Auto platformthat goes beyond Insurance
Remain focused on being Fast & Easy to deal with & giving the Best Adviceto our customers
AIM OUTCOME
No.1 Digital Insurer
Of Choice in ASEAN
All Things Auto
Banca Preferred
Partner
GCFS
GGB
Etiqa
NPD
BAU ROE: ~11.5%
FY25 ROE:BAU + NPD
M25 Targeted OutcomesDrivers behind ROE uplift
Group Community Financial Services(GCFS)
Group Global Banking(GGB)
Group Islamic Banking(MGIB)
Group Insurance &
Takaful(Etiqa)
To improve a BAU potential ROE of around ~11.5% by 2025, we have identified New Profit Drivers (NPD) that will bring us closer towards achieving our aspirational ROE of between 13%-15% by 2025.
• IB & IM: Prime brokerage, investment and asset management ESG centric growth• Capture cross border flows from SG-MY and ASEAN+ corridors.• Automate end-to-end onboarding and credit processing.• Optimise trade, treasury and cash platforms so flow business for GB & CFS clients
remain relevant
• Digital: Continuously enhance STP capabilities, drive customer engagement & stickiness.
• Group Private Wealth: Leveraging regional platforms and targeting niche and neglected segments.
• SME: Digitise sales in home markets (i.e.: RSME loans) and enabling lateral connectivity to SME customers across our home markets.
• Digitising sales to become No. 1 Digital Insurer of Choice in ASEAN. • To become preferred banca partner leveraging digital tools.• Expand Auto digital service offerings.
• Expand role from an Islamic Bank to investment intermediation, to drive Islamic fee-based income contribution to Group.
• Develop Wealth Management business in home markets through product innovation and prioritising customer experience, as well as linking investors from Dubai and Brunei to our home markets.
NPD Breakdown
Aspirational ROE
MG
IB’s
NPD
s are
em
bedded
acr
oss
the 3
pilla
rs
27
Build top-notch experience for our
customers via digital and hybrid services
by leveraging data analytics:
M25 Targeted OutcomesDesired Long-Term Outcomes
13-15% Return on
equity
<=45%Cost to income
ratio
>100 sen
Earnings per share
Net Promoter Score (NPS)
Digital Penetration
Conversion Rate
• Mobilise RM50 billion in Sustainable
Finance by 2025.
• Improve the lives of 1 million
households across ASEAN by 2025.
• Commitment to a carbon neutral
position of our own emissions by 2030.
• Achieve 1 million hours p.a. for
sustainability and delivering 1
thousand significant UN-SDG related
outcomes by 2025.
40-60%Dividend
payout ratio (net cash basis)
28
Humanising Financial Services
MALAYAN BANKING BERHAD
14th Floor, Menara Maybank100, Jalan Tun Perak
50050 Kuala Lumpur, MalaysiaTel : (6)03-2070 8833
www.maybank.com
Disc laimer: This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the information that
may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or on behalf of the Company as to the accuracy or
completeness of the information or opinions contained in this presentation.
The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of it for m the basis
of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.
The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or their contents or otherwise arising in connection therewith.
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