Malaysia Building Society : 1Q24 presentation slides

1Q 2024

ANALYST BRIEFING

Rafe Haneef

Group Chief Executive Officer

31 MAY 2024

AGENDA

1Q24 KEY HIGHLIGHTS

Rafe Haneef, GCEO

1Q24 FINANCIAL PERFORMANCE

Ramanathan Rajoo, GCFO

2

1Q24 FINANCIAL PERFORMANCE

QUARTER-ON-QUARTER FINANCIAL HIGHLIGHTS

4Q23 | 1Q24

Asset Growth &

Quality

Deposits

Profitability

Capital &

Liquidity

Gross Financing						GIR
RM42.0 bil | RM42.9 bil						7.1% | 7.3%
Higher contributions from consumer (up by 0.8%),				Excluding Ihsan-i, GIR is lower at 6.3% in 1Q24,
corporate/commercial banking (up by 5.6%), and MIDF (up by 3.6%)			from 6.6% in the previous quarter
CASA Ratio						CASA Composition
7.0% | 7.6%						53:47 | 56:44
CASA Ratio Improved to 7.6%. Total deposits expanded by 0.6% to
	Composition of CASA of corporate to retail improved to 56:44
RM47.9 bil
PBT		PAT			ROE
RM297.0 mil | RM105.9 mil		RM301.0 mil | RM78.0mil		5.2% | 3.2%
PBT of RM297.0 mil includes one-off gain on	PAT of RM301.0 mil includes one-off gain on
Annualised ROE for 2024 is 3.2%
acquisition of MIDF		acquisition of MIDF
CET1						LCR
19.9% | 19.5%						183.6% | 206.8%
Capital and liquidity position remained stable			LCR improved which is above the regulatory minimum requirement

3

1Q24 FINANCIAL SNAPSHOT QoQ

																																																																								4Q23										1Q24												Var
		Revenue	698			893		195			Total Revenue increased by RM195mil mainly due to expansion of financing
							portfolio.
																																																																																																				1Q2023: 665
																																																																																																																																													Higher net income in 4Q23 mainly due to one-off gain on acquisition of MIDF
		Net Income	560			365		(195)
						amounting to RM354mil.
																																																																																																				1Q2023: 268
																																																																																																																																													Higher in 1Q24 mainly contributed by higher fee income.
		Other Operating Income (BAU)	3			41		38
																																																																																																						1Q2023: 4
																																																																																																																																													One-off gain on acquisition of MIDF in 4Q23
		Other Operating Income (One-off gain	354			-							(354)
																																																																																																																																													Marginal decrease in operating expenditure.
		Operating Expenditure	(233)	(214)	18
																																																																																																		1Q2023: (127)
Profitability
	Profit before provision	327			151		(177)
(RM'mil)
	(PBT before impairment)																																						1Q2023: 141
																																																																																																																																													Increase in impairment, predominantly in the segment of consumer financing.
		Impairment	(30)	(45)	(15)
																																																																																																			1Q2023: (57)
		Profit before taxation	297			106		(191)
																																																																																																					1Q2023: 84
																																																																																																																																													Higher PAT in 4Q23 mainly due to one-off gain on acquisition of MIDF amounting to
		Profit after taxation & zakat	301			78		(223)
						RM354mil.
																																																																																																					1Q2023: 74
		ROE (Post tax) *																													3.2%	(2.1)
																																																																																																						2023: 5.2%
		ROA (Post tax) *																													0.5%	(0.3)
																																																																																											2023: 0.8%
		Gross Financing/Loans																													42.9		0.9			Increase in financing mainly from Commercial & Corporate segment (RM0.7bil) and
Assets &																																	Consumer segment (RM0.2bil).
																																																																																																					2023: 42.0
Liabilities
																																																																																																																																												Growth in deposit is mainly contributed by growth in CASA (RM0.7bil) netted off
	Customer Deposits																													47.9		0.3
(RM'bil)
																																against a slowdown in Term Deposit (-RM0.4bil).
																																																																																											2023: 47.6
		CET1																													19.5%	(0.4)		Capital ratio decreased in line with increase in RWA due to Financing Growth.
Capital &																																																																																											2023: 19.9%
Liquidity
	LCR																													206.8%	23.3			LCR well above regulatory minimum requirement.
																																																																																											2023: 183.6%

4

MANAGEMENT GUIDANCE VS ACTUAL 1Q24

Gross Fin

Growth

NPM

CIR

GIR

ROE

ACTUAL

1Q24

2.1%

2.1%

58.7%

7.1%

*6.3%

3.2%

TARGETS

FY24

8-9%

2%

≤55%

4-5%

4-5%

TARGETS

FY26

8-9%

2%

≤50%

4%

8%

*excluding Ihsan-i%

5

FLIGHT26 path towards 8% ROE

8.0%

5.2%5.2%

2.9% BAU

2022 ROE%

2023 ROE%

6

AGENDA

1Q24 KEY HIGHLIGHTS

Rafe Haneef, GCEO

1Q24 FINANCIAL PERFORMANCE

Ramanathan Rajoo, GCFO

7

1Q24 P&L SUMMARY

Net Funded Income Improved in QoQ In Tandem With Financing Growth

More details
RM million		1Q23	4Q23			1Q24	QoQ (%)	YoY (%)
on
Slide "1Q 2024 NET	Net Funded Income		264	203	324		59.4%	22.8%
OPERATING
INCOME"
Slide "1Q 2024 NET	Other Operating Income - BAU	4	3	41		>100%	>100%
OPERATING
INCOME"
Slide "1Q 2024 NET	Other Operating Income - One off gain		-	354	-			-100.0%	NA
OPERATING
INCOME"
Slide "1Q 2024 NET	Net Operating Income	268	560	365		-34.9%	36.0%
OPERATING
INCOME"
Slide "1Q 2024	Overhead Expenses		(127)	(233)	(214)	-7.9%	68.7%
OVERHEAD
EXPENSES"
	Pre-provisioning Operating Profit	141	327	151		-54.0%	6.6%
Slide "1Q 2024 NET	Net Impairment Losses		(57)	(30)	(45)	48.9%	-21.4%
IMPAIRMENT
LOSSES"
	Profit before Taxation and Zakat	84	297	106		-64.4%	25.5%
	Profit After Taxation		74	301	78		-74.0%	5.7%

8

1Q24 NET OPERATING INCOME

Higher Net Funded Income in 1Q24 by RM121mil

QoQ 34.9%

560

3

		365
354
	41
		324
203
4Q23	1Q24
Other Operating Income- BAU	Net Funded Income

Other Operating Income - One off gain

• Net funded income increased QoQ contributed mainly by financing growth.
• Other operating income recorded lower QoQ due to one-time gain amounting to RM354.4mil from the acquisition of MIDF in 4Q23.

Net Profit Margin (%)
3.3%	2.9%
			2.1%
		1.8%
FY21	FY22	FY23	1Q24
Other Operating Income (RM'mil)

QoQ 88.5%

357

414	41

						45
(57)			(4)
4Q23			1Q24
		Fees and others		Trading and FX

9

1Q24 OVERHEAD EXPENSES

CIR % stood at 58.72% in 1Q24

QoQ

RM million	1Q24	4Q23	1Q23	Var	Var (%)
(RM'mil)
Personnel expenses	125	123	80	2	1.8%
Establishment related expenses	51	62	40	(10)	(16.8%)
General administrative expenses	35	44	3	(9)	(20.7%)
Promotion and marketing related expenses	3	5	4	(2)	(32.0%)
TOTAL	214	233	127	(19)	(8.1%)

YoY

Var Var (%) (RM'mil)

1. 55.8%

1. 26.9%

1. >100%

1. (16.0%)

87

68.1%

Cost to Income Ratio (%)

• CIR% increased to 58.7% mainly due to the impact of

		w/out one-off gain	one-off gain on acquisition of MIDF amounting to
		68.6%
		RM354.4mil which resulted in higher total income,
		51.1%	58.7%
32.8%	42.8%	hence lower CIR in 2023.

FY21

FY22

FY23

1Q24

10