Maybank today unveiled its next five-year strategy - code-named M25 - designed to accelerate its growth and entrench its position among the leading financial services groups in the region.
M25, which follows the completion of the previous Maybank2020 Plan last year, was crafted against the backdrop of recent emerging macroeconomic, social and technological trends, and sets out the Group’s roadmap and strategy for the next five years up to 2025.
Speaking at a media briefing following its 61st Annual General Meeting, Maybank Chairman, Tan Sri Dato’ Sri Zamzamzairani Mohd Isa said that M25 will be centered on the Group’s purpose of Humanising Financial Services, which has been refreshed to reflect its long term priorities and a new operating landscape.
The new Plan will be steered by three strategic priorities namely being Pervasively Digital, building New Value Drivers and embedding Sustainability throughout Maybank’s operations to achieve its three aspirational outcomes - which are to deliver Sustainable ROE, offer Top Rated Customer Experience and be a Regional ESG Leader.
These strategic priorities will catapult Maybank to realise its three Business Strategic Thrusts which are to be the Preferred ASEAN Bank, a Global Leader in Islamic Finance and a Leading ASEAN Insurer.
Tan Sri Dato’ Sri Zamzamzairani added that the Plan was designed to guide the Group and navigate the current disruptive landscape while focusing on creating value for the millions of its stakeholders.
“M25 infuses elements of digital and sustainability and provides clarity on the change we want to make in the world and what we will prioritise for our stakeholders,” he said. “Ultimately, we are committed to making a positive impact on society and the environment through this new five-year journey that we have begun.”
Meanwhile, Group President & CEO, Datuk Abdul Farid Alias said that M25 will be critical in accelerating growth for Maybank in the ‘next normal’ with specific focus on executing outcome driven projects that will make a difference.
“We have set clear targets that will guide us in meeting our strategic priorities under this Plan and we will be tracking our progress throughout this journey to ensure we stay on course,” he said. “At the same time, we will continue to explore new ways of working and drive innovation with differentiated products and services, to provide world class customer experience.”
Datuk Farid explained that in the Group’s drive to become Pervasively Digital, it will seek to evolve from being a financial services provider to a lifestyle partner of customers, on the back of advanced data analytics, resilient systems and platforms, enabled by people equipped with FutureReady skills who practice agile process frameworks. Additionally, the Group will embrace digital solutions, stay innovative and use data to give us insights into how to keep our cus tomers engaged and continue growing our businesses.
He added, “Our focus on building New Value Drivers will involve transformative initiatives that go
beyond the current business-as-usual outcomes and represent new growth opportunities, such as in the areas of digital, Small and Medium-sized Enterprises (SME), Wealth Management, Islamic Finance and cross-border opportunities, with the goal of establishing differentiations and long-term competitive advantages.”
Datuk Farid also said that the Group will aggressively look to embed Sustainability across its operations to drive the change for a better world. At the same time, it will partner stakeholders to achieve sustainable growth with a focus on enabling responsible transition to low carbon economy, empowering communities for inclusive progress and leading by example with good governance practices. Based on the M25 Plan, Datuk Farid said that Maybank has set its desired long-term outcomes by 2025 comprising an aspirational return on equity (ROE) of between 13%-15%, a cost-to-income ratio of below 45%, earnings per share of more than 100 sen and delivering a dividend payout ratio of between 40% - 60% on a net cash basis.
The Group’s intention to offer top-notch experience for customers will be driven via digital and hybrid services by leveraging data analytics, and measured by achievements in its Net Promoter Score, Digital Penetration and Conversion Rate.
Additionally, by 2025, the Group intends to mobilise RM50 billion in sustainable financing improve the lives of one million households across ASEAN, achieve one million hours per year for sustainability activities and deliver one thousand significant UN-SDG related outcomes. The Group has also committed to a carbon neutral position of its emissions by 2030 and to achieving net zero carbon emissions by 2050.
“Our deliverables in the area of ESG follows through from our sustainability journey taken over the years, including our financing commitments of ‘No Deforestation, No New Peat and No Exploitation’ (NDPE), not providing financing to black-listed activities deemed not in line with the Group’s core values and no financing of new coal activities while transitioning together with existing borrowers to achieve sustainable renewable energy mix over the medium- to long-term.”
Datuk Farid added that the Group’s key priority moving forward will be to also ensure that all key business decisions will be based on ESG principles with customers and the community being at the foremost in everything we do.
On the three Business Strategic Thrusts, he said the Group aims to realise being the Preferred ASEAN Bank by advancing customers’ growth aspirations and delivering customer-centric solutions through data and digital-led propositions and enabling a sustainable future through innovation and integrated financial solutions for its various customer segments, leveraging on Maybank’s distinct ASEAN presence, insights, capabilities and global network.
At the same time, the Group aims to be a Global Leader in Islamic Finance with the mission to provide comprehensive Islamic financial solutions for a sustainable future globally by building financial resilience, global prominence and thought leadership in sustainable finance, product innovation and Shariah expertise.
In the area of insurance, the Group has set its sights on becoming a Leading ASEAN Insurer by enabling insurance protection and wellness offerings to the largely under-insured ASEAN region, leveraging on digital platforms as well as Maybank’s ASEAN footprint.