FY2023 M25+ Progress: Enhancing Digital Banking
Cost Increases on Personnel, IT and Revenue-Related Expenses
CIR and Costs
Key Drivers
RM billion
43.7%
49.4%
48.3%
(10.4)%
+11.8%
1Q'23 vs 4Q'22
1Q'23 vs 1Q'22*
3.41
3.05
2.73
0.63
0.23
0.65
0.59
0.51
0.11
0.08
0.51
0.43
2.04
1.62
1.78
1Q FY2022 *
4Q FY2022
1Q FY2023
Personnel Costs
■Establishment Costs
Marketing Expenses
Administration & General Expenses
% change
1Q'23 vs 4Q'22
1Q'23 vs 1Q'22*
Personnel
(12.4)%
+9.9%
Establishment
(0.5)%
+16.7%
Marketing
(50.0)%
+43.8%
Administration &
General
+2.3%
+9.2%
•
Cost increase of 11.8% YoY mainly driven by:
.
•
。 +9.9% increase in personnel costs, which includes collective
agreement adjustments (normalised growth would be 7.0%)
。 +43.8% increase in marketing expenses on higher giftpoints
expenses and advertising & publicity spend
。 +16.7% increase in establishment cost mainly from higher IT costs
due to software maintenance, contract staff, data processing-
related spend, and higher ROU assets depreciation
○ +9.2% increase in admin and general expenses from credit card
related fees on higher billings and merchant volume as well as
other general expenses
Minimal M25+ related spend of RM39.6 million as at 1Q FY2023, of
which RM4.5 million is for project-related opex and capex spend
QoQ, cost reduced 10.4% mainly due to lower personnel expenses (-
12.4%) and marketing expenses (-50.0%). This is mainly attributed to
seasonal expenses incurred in 4Q2022, i.e.: marketing campaigns, etc
*Restated 1QFY2022 comparative information as MFRS 17 has replaced MFRS 4 Insurance Contracts for annual periods on or after 1 January 2023
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