ANAL YST S BRIE F ING HAL F YE AR E NDE D 30 JUNE 2017 - - PowerPoint PPT Presentation

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ANAL YST S’ BRIE F ING HAL F YE AR E NDE D 30 JUNE 2017

GROUP F I NANCE & PL ANNI NG

CE O’s Pre se nta tion

GROUP F I NANCE & PL ANNI NG Pag e 1

ST RAT E GIC F OCUS IN 2017 & HOW T O PL AN T O GE T T HE RE

De posit Dr ive De fe nsive Str ate gy Digitalisation

• F
• c us o n CASA (Driving Sa la ry a c c o unts, Ca sh Mg t e -

b a nke r, Mud a ra b a h CA, Driving T ra nsa c tio na l I A – Al Awfa r)

• Rig htsizing
• f F

unding Mix (Ca g a ma s & I ssua nc e

• f

MT N)

• Ca utio us Asse ts Gro wth (8%)
• Ca pita l e ffic ie nt stra te g y (Driving I

A & I AP)

• Ba la nc e d g ro wth (Driving SME& Supply Cha in)
• Pre se rve Asse t Qua lity
• Stra te g ic Co lla b o ra tio n with F

inT e c h c o mpa nie s

• Building Dig ita l Ca pa b ility / Dig ita l b a nking divisio n
• Dig ita l tra nsfo rma tio n – c ha nne ls, pro c e sse s,

pro duc tivity a nd a na lytic s

GROUP F I NANCE & PL ANNI NG Pag e 2

ST RAT E GY AGE NDA

GROUP F I NANCE & PL ANNI NG

VAL UE BASE D INT E RME DIARY (VBI) DIGIT AL ISAT ION

Pag e 3

VAL UE BASE D INT E RME DIAT ION

GROUP F I NANCE & PL ANNI NG

An inte rme diatio n func tio n that aims to de live r

the inte nde d o utc o me s o f Shar iah thr

• ugh pr

ac tic e s, c o nduc t and o ffe r ings that g e ne rate po sitive and sustainable impac t to the e c o no my, c o mmunity and e nvir

• nme nt, witho ut c o mpro mising the

financ ial re turns to share ho lde rs

PROF IT PE OPL E PL ANE T

T riple Bo tto m-L ine Appro a c h

Pag e 4

RE SPONSIBL E F INANCE

E SG Complia nc e Asse t

• Pre -sc re e ning Pro c e ss (in

Cre dit Asse ssme nt Pro c e ss

• Ne w T

a rg e t Ma rke t

• Gre e n F

ina nc ing & Re ne wa b le E ne rg y

• Minimum c o mplia nc e to

Ma la ysia n Sta nda rd Re a l E c onomy

• Driving SME

Po rtfo lio

• Supply Cha in F

ina nc ing

• Co lla b o ra te with SME

Co rp, Bio T e c h & Othe r Ag e nc ie s (to b e ne fit fro m te c hnic a l a sse ssme nt) T he ma tic / Prog ra m L e nding

• F

le xi Ho use F ina nc ing – F

• c us o n Owne r

Oc c upie d

• E

duc a tio n F ina nc ing

• Clinic E

xpa nsio n F ina nc ing

GROUP F I NANCE & PL ANNI NG

 Produc tive  We a lth

Cre a tion

 E

c onomic Multiplie r

Prosperity

Pag e 5

DIGIT AL ISAT ION

Str ate gic Collabor ation with F inT e c h c ompanie s (Re ve nue Shar ing Mode l) Building Digital Capability Digital tr ansfor mation – c hanne ls, pr

• c e sse s,

pr

• duc tivity and

analytic s Digital Banking (a division of the Bank)

GROUP F I NANCE & PL ANNI NG Pag e 6

GCF O’S PRE SE NT AT ION

GROUP F I NANCE & PL ANNI NG Pag e 7

BIMB HOL DINGS

GROUP F I NANCE & PL ANNI NG Pag e 8

1H 2017 HIGHL IGHT S

Pag e 9

T

• tal r

e ve nue RM1,862.8 million, + 5.1% (1H 17 vs. 1H 16) PBZT RM461.4 million, + 5.3% (1H 17 vs. 1H 16) ROE : 20.0% & ROA: 1.5% (base d on PBZT ) Ne t F inanc ing RM40.5 billion, + 11.5% Y- o- Y T

• tal Asse ts RM61.9 billion, + 8.2% Y- o- Y

GROUP F I NANCE & PL ANNI NG

BIMB vs KL CI – ONE YE AR SNAPSHOT

∆ fr

• m

Jul 16 vs Aug 17

BI MB 11.3% K L CI 6.4%

Sha re holding a s a t 30 June 2017 %

1 L T H 52.48 2 E PF 12.47 3 PNB 5.78 4 KWAP 5.46 5 Ama na h Sa ha m Bumipute ra 5.31 F

• re ig n

2.00

3.4 3.6 3.8 4 4.2 4.4 4.6 4.8 1500 1550 1600 1650 1700 1750 1800 1850 FBMKLCI Index (R2) BIMB MK Equity (R1) GROUP F I NANCE & PL ANNI NG Pag e 10

PROF IT ABIL IT Y T RE ND – BHB GROUP

Pag e 11

9 months Sept 2016 474.1

819.4 815.4 834.4 869.2 461.4 F Y2013 F Y2014 F Y2015 F Y2016 1H 2017

Pr

• fit be for

e zakat & taxation RM million

6 mths June 16 438.2

GROUP F I NANCE & PL ANNI NG

Consiste nt Re sults

PROF IT ABIL IT Y T RE ND – BHB GROUP

Pag e 12

677.3 702.8 685.7 720.4

367.8

FY2013 FY2014 FY2015 FY2016 1H 2017

Bank Islam Group

Profit be fore za ka t a nd ta xa tion (RM million) 173.7 186.0 206.5 223.9

131.6

FY2013 FY2014 FY2015 FY2016 1H 2017

STMB Group ↑ 2.3% ↑ 12.7%

1.7 0.7 0.7 1.1 0.9

FY2013 FY2014 FY2015 FY2016 1H 2017

BIMB Securities Group

359.7 116.8

GROUP F I NANCE & PL ANNI NG

GROUP KE Y F INANCIAL INDICAT ORS

Pag e 13

Ac tual June 17

Ac tua l De c 16

Re turn o n E q uity (%) – b a se d o n PBT

20.0% *

22.0% Re turn o n Asse ts (%) – b a se d o n PBT

1.5% *

1.4% Re turn o n E q uity (%) – b a se d o n PAT

14.2% *

15.9% Re turn o n Asse ts (%) – b a se d o n PAT

1.1% *

1.0% Co st I nc o me Ra tio (%)

59.1%

58.7% E a rning s pe r sha re (se n)

17.60

35.25 Ne t ta ng ib le a sse ts pe r sha re (RM)

2.69

2.44

* Annualised

GROUP F I NANCE & PL ANNI NG

E xc luding BHB Gro up, the o the r financ ial c o ng lo me rate s o pe rate b o th I slamic and c o nve ntio nal b anking o pe ratio ns

16.4%

15.2%

20.6%

14.5%

16.1%

10.4%

15.2%

10.3%

14.8%

9.9%

11.4%

9.2%

13.7%

8.5%

6% 8% 10% 12% 14% 16% 18% 20% 22%

De c 13 De c 14 De c 15 De c 16 Ma r 17

RE T URN ON E QUIT Y - PAT

GROUP F I NANCE & PL ANNI NG Pag e 14

SE L E CT E D F INANCIAL HOL DING CONGL OME RAT E S - ROE

F INANCIAL HOL DING CONGL OME RAT E S – SNAPSHOT @ 30 JUNE 2017

Pag e 15 GROUP F I NANCE & PL ANNI NG

GROUP F I NANCE & PL ANNI NG Pag e 16

KE Y F INANCIAL HIGHL IGHT S

1H F Y2016 1H F Y2017

PBZT RM360.1 m RM367.0 m

As a t De c 16 June 17

Ne t fina nc ing RM39.2 b RM40.5 b Gro ss impa ire d ra tio 0.98% 1.02% Ne t impa ire d ra tio

• 0.75%
• 0.62%

F ina nc ing to de po sit ra tio (F DR) 78.5% 83.9% F ina nc ing to fund ra tio (F T F ) 77.3% 82.5% F ina nc ing to fund a nd e q uity ra tio (F T F E ) 72.3% 74.2% Ne t inc o me ma rg in 2.74% 2.57% Co st inc o me ra tio 52.6% 54.1%

GROUP F I NANCE & PL ANNI NG Pag e 17

701.2 685.1 720.4 367.0 F Y 2014 F Y 2015 F Y 2016 1H 2017

Pr

• fit be for

e zakat and tax

360.1

PROF IT CONT INUE S T O GROW

RM millio n

Net fund based income ↑ 3.3% 1.9%

GROUP F I NANCE & PL ANNI NG Pag e 18

NE T INCOME MARGIN T RE ND – COMPRE SSION

Pag e 19 GROUP F I NANCE & PL ANNI NG

2.77% 2.77% 2.74% 2.60% 2.57% Jun 16 Sep 16 Dec 16 Mar 17 Jun 17

ROBUST F INANCING GROWT H

Pag e 20

29,525 34,295 39,189 40,504 De c 14 De c 15 De c 16 June 17

Ne t F ina nc ing Growth 3.4%

• vs. Dec 16 ↑ RM1.3 b

Growth 11.5%

• vs. Jun 16 ↑ RM4.2 b

June 16 36,332 RM million

GROUP F I NANCE & PL ANNI NG

GROSS F INANCING – DRIVE N MAINL Y BY CONSUME R

Pag e 21

18,238 22,357 25,634 28,959

30,333

De c 13 De c 14 De c 15 De c 16 June 17

RM million

Consume r

↑ 4.7%

3,206 4,116 4,787 5,608

5,633

De c 13 De c 14 De c 15 De c 16 June 17

RM million

Comme r c ial

↑ 0.4%

2,632 3,518 4,301 5,011

4,965

De c 13 De c 14 De c 15 De c 16 June 17

RM million

Cor por ate

↓ 0.9%

June 16 27,200

June 16 4,968 June 16 4,605 GROUP F I NANCE & PL ANNI NG

CONSUME R F INANCING DRIVE N MAINL Y BY HOUSE F INANCING

Pag e 22

Ho use F ina nc ing Pe rso na l F ina nc ing Ve hic le F ina nc ing Cre dit Ca rd Ar-Ra hnu De c 15 12,138 10,387 2,592 443 74 June 16 13,448 10,707 2,524 445 76 De c 16 14,675 11,299 2,440 459 85 June 17 15,752 11,701 2,351 447 82 5,000 10,000 15,000 20,000

↑ 7.3% ↑ 3.6% ↓ 3.7%

GROUP F I NANCE & PL ANNI NG

GROSS F INANCING : SE CURE D VS UNSE CURE D & F IXE D VS F L OAT ING

Pag e 23 # excludes Corporate Banking

52% 54% 55% 48% 46% 45%

Dec 15 Dec 16 June 17

Gross F ina nc ing # Se c ure d vs. Unse c ure d

Secured Unsecured

18% 14% 13% 82% 86% 87%

Dec 15 Dec 16 June 17

Gross F ina nc ing F ixe d vs. F loa ting

Fixed Floating GROUP F I NANCE & PL ANNI NG

F INANCING – VUL NE RABL E SE CT ORS

GROUP F I NANCE & PL ANNI NG Pag e 24

RM million Dec 16 June 17

Amount As % of Corp & Comm As % to Gross Financing Impaired Financing Gross Impaired Financing Ratio Amount As % of Corp & Comm As % to Gross Financing Impaired Financing Gross Impaired Financing Ratio

Plantation 747.4 7.0% 1.9%

• 0.0%

688.3 6.5% 1.7%

• 0.0%

Real Estate 1,205.7 11.4% 3.0%

• 0.0%

1,392.1 13.1% 3.4% 1.5 0.1% Oil & Gas 443.7 4.2% 1.1% 34.8 7.9% 373.2 3.5% 0.9% 34.0 9.1% Total Corporate & Commercial 10,619.4 10,597.6 Total Gross Financing 39,872.4 41,176.6

E XPOSURE T O OIL & GAS INDUST RY T RE ND

Dec 15 June 16 Dec 16 June 17 Corporate & Commercial 457 498 444 373 Consumer (under Package Financing) 2,815 3,039 3,153 3,221 % Total Exposure to Gross Financing 9.36% 9.55% 9.02% 8.73%

RM million Total Exposure

Pag e 25

3,272 3,537 3,597 3,594

• f which Impaired Financing – amount

3 44 58 54 Gross impaired ratio 0.09% 1.26% 1.61% 1.49% GROUP F I NANCE & PL ANNI NG

E XPOSURE T O OIL & GAS INDUST RY T RE ND

Pag e 26

Financing RM million

Dec 15 June 16 Dec 16 June 17 Amount % to Gross Financing Amount % to Gross Financing Amount % to Gross Financing Amount % to Gross Financing Total exposure to Oil & Gas 3,271.8 9.4% 3,536.9 9.6% 3,596.9 9.0% 3,594.4 8.7%

• f which:

Consumer 2,814.8 8.1% 3,038.9 8.2% 3,153.2 7.9% 3,221.2 7.8% Corporate & Commercial 457.0 1.3% 498.0 1.3% 443.7 1.1% 373.2 0.9% Dec 15 June 16 Dec 16 June 17 RM million Amount Impaired ratio Amount Impaired ratio Amount Impaired ratio Amount Impaired ratio

• f which Impaired Financing

3.0 0.1% 44.4 1.3% 57.8 1.6% 53.7 1.5%

GROUP F I NANCE & PL ANNI NG

CUST OME R DE POSIT S AND INVE ST ME NT ACCOUNT

Pag e 27

INVE ST ME NT ACCOUNT RM Million

37,272 41,022 43,595 45,950

42,808 Dec 13 Dec 14 Dec 15 Dec 16 June 17

CUST OME R DE POSIT S RM Million ↓ RM3.1 b

82.6 141.3

141.5

Dec 15 Dec 16 June 17

Unrestricted Investment Account (URIA)

676 3,812

5,275

Dec 15 Dec 16 June 17

Restricted Investment Account (RIA) ↑ RM1.5b

↑ RM0.2 m

June 16 39,082

↑ 38.4% ↓ 6.8% GROUP F I NANCE & PL ANNI NG

CASA DE POSIT S & T RANSACT IONAL INVE ST ME NT ACCOUNT

Pag e 28 RM million De c 15 June 16 De c 16 June 17 T

• tal De posits

43,595 39,082 45,950 42,808

• f whic h: CASA De posits

15,288 14,432 14,136 13,528 Inve stme nt Ac c ounts (URIA) 676 3,317 3,812 5,275

• f whic h: T

r ansac tio nal IA 461 989 1,517 1,763 T

• tal De posits & Inve stme nt Ac c ounts

44,271 42,399 49,762 48,083

 CASA De posits & T

r ansac tional IA 15,749 15,421 15,653 15,291

35.6% 36.4% 31.5% 31.8% Dec 15 June 16 Dec 16 June 17 CASA & T ransac tional IA against T

• tal De posits & Inve stme nt Ac c ounts

Other Deposits & URIA CASA & Transactional IA

GROUP F I NANCE & PL ANNI NG

ASSE T QUAL IT Y RE MAINE D SOUND

Pag e 29 De c 13 De c 14 De c 15 De c 16 June 17 Impair e d 285 345 381 389 421 Past due but not impair e d 430 421 782 694 694 Ne ithe r past due nor impair e d 23,528 29,346 33,797 38,789 40,062

Gross Financing (RM million)

34,960 39,872 41,177

1.14% 1.02% 0.98% 1.09%

24,243

1.18%

30,112

Gro ss impaire d financ ing ratio Past due financ ing ratio

1.40% 2.24% 1.74% 1.68% 1.77% 97.05% 97.46% 96.67% 97.28% 97.30% GROUP F I NANCE & PL ANNI NG

ST RONG CAPIT AL ADE QUACY RAT IO

Pag e 30

RM million Dec 13 Dec 14 Dec 15 Dec 16 June 17 Total Risk-Weighted Assets 25,449 30,194 33,051 34,962 35,860 3,555 4,021 5,052 5,414 5,744 3,277 3,684 3,982 4,322 4,643 12.88% 12.20% 12.05% 12.36% 12.95% 13.97% 13.32% 15.28% 15.48% 16.02%

De c 13 De c 14 De c 15 De c 16 June 17

RM million

Total Capital Common Equity Tier 1 (CET1) Capital CET 1 Ratio Total Capital Ratio GROUP F I NANCE & PL ANNI NG

ST MB

GROUP F I NANCE & PL ANNI NG Pag e 31

Pag e 32

GROUP OPE RAT ING RE VE NUE CONT INUE D GROWT H MOME NT UM

GROUP F I NANCE & PL ANNI NG 1,409.6 1,521.0 1,732.6 962.0 995.7 243.0 267.6 280.7 133.5 149.5 1,652.6 1,788.6 2,013.3 1,095.5 1,145.2 500 1,000 1,500 2,000 2,500 YTD Dec 14 YTD Dec 15 YTD Dec 16 YTD Jun 16 YTD Jun 17 Gross Contribution Investment Income Operating Revenue

RM’ mil 5% 4%

Pag e 33

PROF IT ABIL IT Y

GROUP F I NANCE & PL ANNI NG

RM’ mil 131.6 101.2 116.3 91.7 50 100 150 200 Profit before Zakat and Tax Profit after Zakat and Tax YTD June 17 YTD June 16

10% 13%

Pag e 34

GROSS OPE RAT ING RE VE NUE

GROUP F I NANCE & PL ANNI NG

1,374.0 1,480.3 1,409.6 1,521.0 1,732.6 995.7 233.6 232.7 243.0 267.6 280.7 149.5 500 1,000 1,500 2,000 2,500 2012 2013 2014 2015 2016 YTD Jun 2017 Gross contributions Investment income RM’ mil

Pag e 35 GROUP F I NANCE & PL ANNI NG

COMPANY F AMIL Y T AKAF UL GROSS CONT RIBUT ION

Pag e 36

COMPANY GE NE RAL T AKAF UL GROSS CONT RIBUT ION

GROUP F I NANCE & PL ANNI NG

Pag e 37

SURPL US POSIT ION OF F AMIL Y PART ICIPANT S’ F UND

GROUP F I NANCE & PL ANNI NG

652.8 676.6 716.8 782.6 742.8 682.4 550 600 650 700 750 800 2012 2013 2014 2015 2016 Jun-17 RM’ million CAGR (Up to 2016)

3%

As of 2016, the retained surplus ratio is 29.7% based on the Family Participants’ Fund and total assets of RM2.50 billion. For 2015, the retained surplus is 32.3% of RM2.42 billion total assets.

Pag e 38

SURPL US POSIT ION OF GE NE RAL T AKAF UL RISK F UND

GROUP F I NANCE & PL ANNI NG

207.3 210.1 207.3 223.0 234.5 201.9 180 190 200 210 220 230 240 2012 2013 2014 2015 2016 Jun-17 RM’ million 3% CAGR Up to 2016 As of 2016, the retained surplus ratio is 30.1% based on the General Takaful Risk Fund total assets

• f RM 778.8 million. For 2015, the surplus ratio is 30.5% of the total assets of RM730.5 million.

Pag e 39

KE Y F INANCIAL RAT IOS

GROUP F I NANCE & PL ANNI NG

12.39 1.01 11.27 0.89

Earnings per share (sen) Net assets per share (RM) Actual YTD June 17 Actual YTD June 16

26.0% 26.0%

Return on Shareholders' Equity Actual YTD June 17 Actual YTD June 16

 YTD June 2017 Total Assets : RM7.97 billion versus YTD December 2016 RM7.76 billion. The growth of 2.7% mainly from Family Takaful Funds.

Pag e 40 GROUP F I NANCE & PL ANNI NG

Conversion To Single Insurance or Takaful Business

CORPORAT E ST RUCT URE AF T E R PROPOSE D RE ORGANISAT ION

Pag e 41

L ANDSCAPE OF INSURANCE & T AKAF UL INDUST RY

GROUP F I NANCE & PL ANNI NG

Conversion To Single Insurance or Takaful Business

• Form one (1) subsidiary

Lean structure

• A minimum paid up capital of RM100 million is required for each
• perator

Minimum paid up capital

• Expect marginal increase in expense
• Will be subjected to Transfer Pricing Guideline

Management expenses

• Intra-group shared services arrangement is required

Shared services

• Scarcity of experienced talent and resources in the market

Human Capital

• Aligned marketing proposition to a common target market
• Penetrate target market together by providing comprehensive range
• f takaful solutions

Synergy maximization

• Not expecting to raise capital based proposed corporate structure

Capital funding

Pag e 42

OUR UNIQUE PROPOSIT ION

GROUP F I NANCE & PL ANNI NG

The FIRST and ONLY company to consistently offer a 15% Cash Back* to all our General Takaful customers for no claims within coverage period. Paid out a total Cash Back of RM209 million to our General Takaful customers and business partners from 2009 to 2016.

*Applicable to General Takaful products subject to Company performance and no claims incurred during the coverage period.

GROUP F I NANCE & PL ANNI NG Pag e 43

COST SAVINGS F OR INVE ST ME NT ACCOUNT S

GROUP F I NANCE & PL ANNI NG Pag e 44

APPENDICES

Cost of Fund TCIA Wafiyah Retail Wafiyah Corporate Waheed Underlying asset HFA Fixed HFA/PF HFA/PF HFA Float Cost Saving Statutory Reserve Requirement 0.105% 0.105% 0.105% 0.105% PIDM fee 0.038% 0.060%

• 0.023%

Brokerage fee

• 0.018%

0.018% 0.018% Capital charge (Sub-debts – Net of Tax) 0.373% 0.471% 0.471% 0.373%

Total Savings 0.516% 0.654% 0.594% 0.519%

Page 45 Ra tio Jun-16 Jun-17 Y-o-Y Move me nt With IA (A) Without IA (B) Va r ia nc e (C) = (B) – (A) With IA (D) Without IA (E ) Va r ia nc e (F ) = (E ) – (D) With IA (G) = (D)- (A) Without IA (H) = (E )-(B) L CR E ntity

100.7% 83.6% (17.1%) 122.5% 93.7% (28.8%) 21.8% 10.1%

No te : 1. I A re fe rs to I nve stme nt Ac c o unt

• 2. L

CR witho ut I A is a ssumptio n o f wo rse c a se sc e na rio i.e full I A withdra wa l & a sse t funde d b y fina nc ia l institutio n de po sit (hig he st run-o ff)

Ra tio Jun-16 Jun-17 Y-o-Y Move me nt With IA (A) Without IA (B) Va r ia nc e (C) = (B) – (A) With IA (D) Without IA (E ) Va r ia nc e (F ) = (E ) – (D) With IA (G) = (D)- (A) Without IA (H) = (E )-(B) CE T 1 Ca pita l Ra tio

12.67% 12.22% (0.45%) 12.95% 11.69% (1.26%) 0.27% (0.53%)

T ie r 1 Ca pital Ra tio

12.67% 12.22% (0.45%) 12.95% 11.69% (1.26%) 0.27% (0.53%)

T

• ta l Ca pita l

Ra tio (T CR)

15.87% 15.34% (0.53%) 16.02% 14.58% (1.44%) 0.15% (0.76%)

No te : 1. I A re fe rs to I nve stme nt Ac c o unt

• 2. T

CR witho ut I A is a ssumptio n o f wo rse c a se sc e na rio i.e full I A withdra wa l

IMPACT ON INVE ST ME NT ACCOUNT S