Maybank Annual Report 2013 – Corporate ANNUAL REPOrt 2013 ANNUAL REPOrt Shareholder Returns 15.1% Regionalisation Dividend per share 53.5 sen Return on Equity Higher loans growth and PBT growth in overseas markets Earnings per share 75.8 sen BRIDGING WORLDS IN ASIA CTAP URING THE FLOW OF BUSINess AROUND THE WORLD INTO ASIA THROUGH OUR NETWORK Reach Opportunity Market Community People 2 MAYBANK • ANNUAL REPORT 2013 CONTENTS Page 6 CHAIRMAN’S STATEMENT “Your Company has performed strongly once again with record Profit After Tax and Minority Interest (PATAMI), growing at double digits, reaching RM6.55 billion at end of 2013.” This annual report Page 8 is available on the web at GRU O P PresIDENT & CEO’S STATEMENT www.maybank.com/ar2013 “A strategic imperative in managing the Maybank Group is ensuring the strength of our balance sheet. Our clients who have chosen our institution to place their funds, have to be assured that their savings are secure, not just for today but for generations to come.” To contact us, please refer to page 181 for Corporate Information and page 182 for AT A GRUS O P TRATEGY & Group Directory. GLANCE ACHIEVEMENts 4 Highlights of 2013 28 Our Strategy & Achievements 32 Key Performance Indicators 34 Five-Year Group Financial Summary M ESSAGE TO 36 Simplified Group Statements of ANNUAL REPOrt 2013 Financial Position FINANCIAL STATEMENts SHAREHOLDERS 6 Chairman’s Statement 37 Group Quarterly Financial Performance 8 Group President & CEO’s Statement 37 Key Interest Bearing Assets and Liabilities 38 Statement of Value Added 39 Segmental Information ANNUAL REPOrt ABOUT 40 Maybank Share Record Earnings RM6.55 billion RM560 billion 14.0% Profit attributable to equity holders of the Bank Total Assets G roup Loans Growth US 46 Maybank in the News 14 Vision, Mission and Core Values 52 Event Highlights The financial statements are 15 Code of Ethics and Conduct 61 Awards & Recognition available in the Financial 16 Corporate Profile & Global Network Statements book of the 18 Key Business Entities Annual Report 2013 20 History, Innovation & Leadership 23 Group Corporate Structure 24 Group Organisation Structure MAYBANK • ANNUAL REPORT 2013 3 LANCE G ANNUAL GENERAL MEETING OF A T T th MALAYAN baNKING BERHAD A Sime Darby Convention Centre, Grand Ballroom, Level 1, 1A Jalan Bukit Kiara 1, 54 60000 Kuala Lumpur, Malaysia Monday, 7 April 2014 at 10.00 a.m. MESSAGE TO Refer to pages 184 to 187 for Annual General Meeting Information and Financial Calendar. SHAREHOLDERS BOUT US BOUT Page 16 Page 28 A CORPOrate PROFILE & OUR strateGY GLObaL NETWORK “The ambitions set for Maybank “Maybank is among Asia’s leading in 2015 have guided our strategic financial services groups, and the transformation to-date. As the defining moment approaches, the fourth largest bank in Southeast Asia ENTS transformation continues in full-force M TRATEGY & TRATEGY by assets.” S and we are accelerating our efforts CHIEVE further to realise our strategic A ROUP ROUP objectives and pave the path for G greater achievements ahead.” Page 74 Page 122 CORPOrate C OMMUNITY EVIEW USINESS R FINANCIAL SErVICES RespONSIBILITY B “Fuelled by the belief and passion to “Maybank has a long history grow responsibly, we have reinforced of being at the heart of the our alignment in strategic intent community. Right from the as part of our mission to humanise start, we aimed to be a bank for financial services across Asia.” all Malaysians. In line with our humanising mission, we are now extending this community-based OUR approach across the region.” RESPONSIBILITY BUSINess OUR OTHER OUR REVIEW RESPONSIBILITY INFORMatION EADERSHIP 66 Group Financial Review 122 Corporate Responsibility 174 Analysis of Shareholdings L 71 Economic & Banking Industry Review 128 Investor Relations 176 Classification of Shareholders 74 Community Financial Services 176 Changes in Share Capital 79 Global Banking 179 Properties Owned by Maybank Group 90 Maybank's Overseas Operations OUR 180 List of Top 10 Properties Owned 92 International LEADERSHIP by Maybank Group 93 Greater China 132 Board of Directors 181 Corporate Information CORPORATE 94 Maybank Philippines 134 Board of Directors' Profile 182 Group Directory GOVERNANCE 95 Maybank Indochina 140 Group Executive Committee 96 Other Countries AGM 96 Associates CORPORATE 97 Singapore INFORMatION 98 Indonesia GOVERNANCE 184 Notice of the 54th Annual General Meeting ATION 100 Insurance & Takaful 146 Statement on Corporate Governance 186 Statement Accompanying Notice of the M 105 Islamic Banking 160 Statement on Risk Management & 54th Annual General Meeting OTHER 108 Shariah Committee Internal Control 187 Financial Calendar INFOR 110 Group Human Capital 162 Audit Committee Report • Form of Proxy 115 Group Technology 165 Risk Management 118 Group Operations 172 Group Compliance ATION M M AG NFOR I 4 MAYBANK • ANNUAL REPORT 2013 HIGHLIGHTS OF 2013 Record earnings with Profit After Tax and Minority PATAI M Interest (PATAMI) up 14.0% to RM6.55 billion on the back of higher net income, supported by improved cost efficiency. RM6.55 billion (Refer to page 66 for Group Financial Review) Net dividend per share of 53.5 sen (FY2012: 52.5 sen) with Dividend per share total FY2013 net dividend at RM4.71 billion. 53.5 sen (Refer to page 66 for Group Financial Review) Cost to income ratio improved to 47.8% from 48.6% in Cost to Income Ratio FY2012, owing to slower overhead expense growth of 8.4% against net income growth of 10.5%. 47.8% (Refer to page 66 for Group Financial Review) Appointment of Datuk Abdul Farid Alias as Group M anagement Appointments PCEO and Management for three entities, along with a refreshed organisation structure to support regional M • aybank Group growth. (Refer to page 8 for Group President & CEO Statement) • Bank Internasional Indonesia • Insurance & Takaful • Investment Banking Maybank emerged as Winner of the Banking and Talent Development Financial Services category for the third year in a row in Malaysia's Top 100 Leading Graduate Employer • A winner of Malaysia's Top 100 Leading Awards 2013. Graduate Employer Awards 2013 (Refer to page 110 for Group Human Capital Review) More than 23,000 Maybankers donated over 119,000 Corporate Responsibility hours for voluntary community programmes. Through our annual flagship Cahaya Kasih (Ray of Love) programme, we structure, monitor and evaluate the O• ver 119,000 hours for voluntary impact of all employee volunteerism. community programmes (Refer to page 122 for Corporate Responsibility Review) Note: PATAMI is define as Profit After Taxation And Minority Interest and is equivalent to Profit attributable to equity holders of the Bank as stated in the audited financial statements. MAYBANK • ANNUAL REPORT 2013 5 LANCE LANCE G A A T T T A G Financial Highlights Profit Attributable to Equity Holders of the Bank Earnings Per Share Return on Equity RM6.55 billion 75.8 sen 15.1 % MESSAGE TO SHAREHOLDERS FY10 3.82 FY10 53.9 FY10 14.5 FY11 4.45 FY11 61.4 FY11 14.5 FP11 * 2.59 FP11 * 34.5 FP11 * 15.2 FY12 5.75 FY12 72.7 FY12 16.0# BOUT US BOUT A FY13 6.55 FY13 75.8 FY13 15.1 Total Assets Loans, Advances and Financing Capital Adequacy Ratio @ ENTS RM560.4 billion RM355.6 billion Total Capital Ratio: 15.664% M TRATEGY & TRATEGY S ^ FY10 336.7 FY10 205.9 FY10 14.58 CHIEVE A ROUP ROUP G FY11 411.3 FY11 255.0 FY11 15.36^ FP11 * 451.6 FP11 * 276.3 FP11 * 16.37^ FY12 494.9 FY12 311.8 FY12 17.35^ FY13 560.4 FY13 355.6 FY13 15.664@ EVIEW USINESS R B Gross Dividend Per Share Market Capitalisation Share Price 53.5 sen RM88.1 billion RM9.94 FY10 55.0 FY10 53.5 FY10 7.56 OUR FY11 60.0 FY11 66.9 FY11 8.94 RESPONSIBILITY FP11 * 36.0 FP11 * 65.5 FP11 * 8.58 FY12 65.0 FY12 77.6 FY12 9.20 FY13 53.5 FY13 88.1 FY13 9.94 OUR EADERSHIP * Six-month financial period (FP) ended 31 December 2011 due to the change of financial year (FY) end from 30 June to 31 December. L # Computed based on weighted reallocation of additional RM3.66 billion capital raised in October 2012. ^ RWCR and assuming full reinvestment of DRP. @ Total Capital Ratio (TCR) is computed in accordance with Capital Adequacy Framework (Capital Components) issued by Bank Negara Malaysia on 28 November 2012. Non-Financial Highlights CORPORATE GOVERNANCE HUMAN CAPItaL GLObaL NETWORK CU STOMERS Over 47,000 Over 2,200 offices 22 million Maybankers worldwide 20 countries worldwide ATION M OTHER INFOR ATION M M AG NFOR I 6 MAYBANK • ANNUAL REPORT 2013 CHAIRMAN’S STATEMENT “Your Company has performed strongly once again with record Profit After Tax and Minority Interest (PATAMI), growing at double digits, reaching RM6.55 billion at end of FY2013.” MAYBANK • ANNUAL REPORT 2013 7 LANCE G A T T A “We are especially pleased that our shareholders have kept faith in our growth story, allowing us to maintain our position as Malaysia's most TO valuable company in terms of market capitalisation by some margin - E MESSAGEM TO SSAGE thank you.” SHAREHOLDERS BOUT US BOUT A DEAR SHAREHOLDERS, As another year passes, I am pleased to report that Meanwhile, our emphasis on reaching out to The Board of Directors moved quickly to have your Company has performed strongly once again, communities continues to be demonstrated across him succeeded by Datuk Abdul Farid Alias, ENTS with record Profit After Tax and Minority Interest the region. Our initiatives include empowering formerly our Head of Global Banking, to ensure M TRATEGY & TRATEGY (PATAMI) growing at double digits, reaching low-income families via financial inclusion and continuity and accelerate our regional strategy.