Investor Presentation Financial Results 6-Month Financial Period - - PowerPoint PPT Presentation

Investor Presentation

Financial Results

6-Month Financial Period ended 31 December 2011

23 February 2012

Investor Presentation

Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects

Financial Results: 6-Month Financial Period ended 31 December 2011

Key Highlights: Financial performance continued to improve

 Strong revenue growth and continued profit growth for 6-month Financial Period (FP) 2011  Revenue grew 21.6% YoY on the back 16.2% growth in fund based income and 32% growth in fee income  Revenue grew 17.3% excluding insurance surplus transfer & new takaful framework implementation.  6-month FP 2011 PATAMI grew 20.0% YoY to RM2.58 billion; 2QFP2011 PATAMI grew 15.2% YoY to RM1.30 bil  Growth seen across all business pillars  All business pillars recorded double digit revenue growth  PBT rose by RM597 million (+20.1%) YoY mainly due to growth in:

 Community Financial Services (+RM257m, +18.0%)  Global Wholesale Banking (+RM90m, +7.8%)  Insurance & Takaful (+RM295m, +323.1% )  International (+RM159m, +19.4%)

 On annualised basis Group loans grew 16.2% (23.7% YoY), driven by strong loans growth of 23.7% in Singapore (29.3% YoY) and 31.2% in BII (25.0% YoY) while domestic loans grew 10.0% (17.4% YoY).  Allowances for losses on loans for FP11 improved by 13.9% YoY primarily due to higher recovery and lower individual allowance. Net Impaired Loan ratio improved to 1.86% in Dec 2011 from 2.25% in Dec 2010.  Strong Financial Position  Group shareholders’ funds of RM33.4 billion, total assets of RM451.3 billion  Capital Adequacy Ratio of 16.26% (assuming a 85% DRP reinvestment rate)  Exceeded Headline KPIs for FP2011  ROE of 16.2% exceeded target of 16.0%, & Loans and Debt Securities growth of 16.3% against 12% target  Continued high dividend payout of 79.9%  Proposed final dividend of 36 sen per share less 25% tax.  The dividend consists of 4 sen cash portion and 32 sen electable portion for the DRP .

Key Corporate Developments: Eventful 6-Month period

 Change of Financial Year End from 30 June to 31 December.  Branding Initiatives  Prime Minister launched refreshed Maybank Group corporate identity  New corporate identity for Kim Eng (Maybank Kim Eng)  BII rebranding in progress  New Appointments  Dato’ Khairussaleh appointed as President Director/CEO of BII, subject to Bank Indonesia approval.  Michael Foong appointed Chief Strategy & Transformation Officer, Maybank Group  Network Expansion During the financial period Maybank added new branches in Malaysia (+6, bringing total to 392) and Indonesia (+7 to 346). Network expansion also took place the Philippines (+5 to 50) and Cambodia (+1 to 11) during the year.  Medium Term Funding  28 Dec 2011. Issuance of RM1.0 billion of Subordinated Notes under its RM3.0 billion Subordinated Note Programme in two tranches: RM750m, 10 non-callable 5 basis priced at 3.97% and RM250m, 12 non- callable 7 basis priced at 4.12%.  10 Feb 2012. Issuance of USD400 million Regulation S senior unsecured notes under its USD2.0 billion Multicurrency Medium Term Note Programme, priced at 3.0% and was 5 times oversubscribed.

The 12-month priorities we set when we announced our FY2010/2011 results

1. Growing loans & deposits with pricing discipline  Annualised loan growth for Jan-Dec 2011 of 16.2% exceeded loan growth 12-month of 12%  NIM saw a marginal decline to 2.53% 2. Reinforcing community banking & addressing SME fundamentals  Continued roll-out of our branch transformation program with signature branches in various locations  Annualised loan growth of 9.1% for business banking & SME loans 3. Intensify client coverage collaboration with product partners, with regional responsibility.  International coverage teams in place to secure cross border deals & service regional clients  Wholesale banking product heads in Singapore, Indonesia, Hong Kong, China and Philippines. 4. Realise investment banking synergies between Maybank IB & Kim Eng  Utilization of new regional franchise to distribute IPO transactions both domestically & regionally  Maybank-KE post merger integration planning including quick wins completed & full implementation to follow in 2012

Our progress as at December 2011….

The 12-month priorities we set when we announced our FY2010/2011 results

5. Continue asset & network expansion in BII, fix WOM & grow Syariah banking in Indonesia  Additional 19 branches & 136 ATMS to BII’s network between Jan-Dec 2011  Acquisition of minority interest in MSI & pursue acquisition of MSI by BII in 2012 6. Grow insurance assets under management & build agency force  Total AUM grew 8.7% on annualised basis  Retained no.1 position in life/family Takaful & general Takaful & largest agency force  Roll out of development programmes to ensure a professional and competent agency force 7. Enhance service quality, customer experience & satisfaction  Roll-out of service improvement programs such as problem resolution initiatives, ATM/CDM uptime performance, cut-down average waiting time, improve product knowledge among frontline staff  Results from external customer engagement surveys indicate continued improvement in service levels 8. Implement the Group IT Transformation  Roll-out of IT transformation programme on track for FY2012 (e.g. delivery of Branch Front End and Cash Management System)

Our progress as at December 2011….

The 12-month priorities we set when we announced our FY2010/2011 results

9. Complete infrastructure & framework across multiple products & countries  Establishment of international client coverage team, including wholesale banking product heads operating in Singapore, Indonesia, Hong Kong & Philippines  Planning of regional product initiatives (credit cards, wealth management, auto finance, stock broking and money market express.

• 10. Gear-up for Basel III requirement

 Core equity ratio as at December 2011 at 9.13% (Group), assuming 85% DRP reinvestment rate  Mechanisms to manage capital base including placements, divestments and ESOS schemes.

• 11. Brand refresh for the Group

 Completed Brand refresh for Maybank Group  Continue to embed the Maybank brand across business including Maybank KE and BII.

Our progress as at December 2011….

Headline KPIs Target 6-Month FP11 achievements Return on Equity 16% 16.2%* Loans and Debt Securities Growth 12% 16.3%* Other targets Target 6-Month FP11 achievements Group Loans Growth 12% 16.2%*

• Malaysia

12% 10.0%*

• Singapore

8% 23.7%*

• BII

24% 31.2%* Group Deposits Growth 14% 22.5%* Risk Weighted Capital Ratio (RWCR) > 12% 16.4%

Key Performance Indicators for 6-Month FP11

Note: Loans growth for Singapore and BII are in their local currencies * Annualised growth

Investor Presentation

Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects

Financial Results: 6-Month Financial Period ended 31 December 2011

2Q FP11 PATAMI rose 15.2% YoY to RM1.30 billion

*net of insurance claims

2Q FP11 1Q FP11 2Q FY11 31 Dec 11 30 Sep 11 31 Dec 10 Net interest income 2,152.7 1,873.6 14.9% 1,813.2 18.7% Net Fund based income (Islamic Banking) 427.0 438.5

• 2.6%

329.6 29.5% Total net fund based income 2,579.7 2,312.1 11.6% 2,142.9 20.4% Net income from insurance business* 322.3 96.5 234.0% 41.0 685.5% Non-interest income 1,151.5 1,222.7

• 5.8%

1,034.9 11.3% Fee based income (Islamic Banking) 64.7 77.8

• 16.8%

63.2 2.3% Total fee-based income 1,538.5 1,397.0 10.1% 1,139.2 35.1% Net income 4,118.2 3,709.1 11.0% 3,282.1 25.5% Overhead expenses (2,054.0) (1,887.9) 8.8% (1,634.1) 25.7% Operating Profit before allowances for losses

• n loans

2,064.2 1,821.3 13.3% 1,648.0 25.3% Allowance for losses on loans (230.3) (98.7) 133.3% (117.5) 96.0% Impairment losses on securities, net (68.3) 1.0

• 6804.8%

(6.3) 983.6% Operating Profit 1,765.6 1,723.5 2.4% 1,524.2 15.8% Share of profits in associates 37.7 36.5 3.3% 37.8

• 0.2%

Profit before taxation and zakat 1,803.4 1,760.0 2.5% 1,562.0 15.5% Taxation & Zakat (432.9) (454.2)

• 4.7%

(435.4)

• 0.6%

Minority Interest (73.8) (19.5) 279.0% (1.4) 5224.0% Profit after Tax and Minority Interest (PATAMI) 1,296.7 1,286.4 0.8% 1,125.2 15.2% EPS (sen) 17.22 17.20 0.1% 15.72 9.5% Quarter QoQ Change YoY Change RM million

FP11 PATAMI rose 20.0% YoY to RM2.58 billion

*net of insurance claims

6-Month FP11 6-Month FY11 31 Dec 11 31 Dec 10 Net interest income 4,026.3 3,587.8 12.2% Net Fund based income (Islamic Banking) 865.5 623.8 38.7% Total net fund based income 4,891.8 4,211.6 16.2% Net income from insurance business* 418.8 127.8 227.8% Non-interest income 2,374.2 1,989.2 19.4% Fee based income (Islamic Banking) 142.5 107.2 32.9% Total fee-based income 2,935.5 2,224.2 32.0% Net income 7,827.3 6,435.8 21.6% Overhead expenses (3,941.8) (3,136.1) 25.7% Operating Profit before allowances for losses on loans 3,885.5 3,299.7 17.8% Allowance for losses on loans (329.1) (382.2)

• 13.9%

Impairment losses on securities, net (67.2) (20.2) 232.5% Operating Profit 3,489.2 2,897.2 20.4% Share of profits in associates 74.2 69.2 7.3% Profit before taxation and zakat 3,563.4 2,966.4 20.1% Taxation & Zakat (887.1) (786.1) 12.8% Minority Interest (93.3) (26.9) 246.5% Profit after Tax and Minority Interest (PATAMI) 2,583.1 2,153.4 20.0% EPS (sen) 34.42 30.25 13.8% 6 Months YoY Change RM million

Strong Balance Sheet: Total Assets grew 19.1% annualised, LDR improved to 87.5%

RM billion Dec 11 Jun 11 Annualised Growth Dec 10 YoY Growth Cash and short-term funds 49.1 38.8 53.0% 24.6 99.5% Deposits with financial institutions 6.5 10.3

• 74.6%

12.4

• 47.8%

Securities purchased under resale agreements 1.4

• Securities portfolio

68.1 61.0 23.0% 61.9 10.0% Loans, advances and financing 274.4 254.0 16.1% 219.4 25.1% Life, general takaful and family takaful fund assets 19.9 19.2 7.4% 18.6 6.7% Other assets 32.0 28.7 23.1% 20.7 54.4% Total Assets 451.3 412.0 19.1% 357.6 26.2% Deposits from customers 313.7 282.0 22.5% 248.1 26.4% Deposits and placements of banks and FI 36.8 33.3 20.8% 28.8 27.4% Borrowings 7.2 5.4 63.8% 3.2 127.7% Subordinated debts 14.2 10.8 62.2% 7.0 101.6% Capital Securities 6.1 6.1

• 0.2%

6.0 1.5% Insurance & Takaful liabilities & policyholders' funds 19.9 19.2 7.4% 18.6 6.7% Other liabilities 18.8 22.6

• 34.1%

16.1 16.6% Total Liabilities 416.6 379.5 19.6% 327.9 27.0% Shareholders Funds 33.4 31.5 12.6% 28.9 15.6% Non-controlling interest 1.2 1.0 44.0% 0.8 61.1% Total Liabilities & Equity 451.3 412.0 19.1% 357.6 26.2% Loan-to-deposit Ratio 87.5% 90.1% 88.4%

RM billion Dec 11 Jun 11 Annualised Growth Dec 10 YoY Growth Community Financial Services 120.7 112.5 14.4% 106.1 13.7% Consumer 94.9 87.9 15.9% 81.2 16.8% Total Mortgage 42.1 38.6 18.1% 36.2 16.3% Auto Finance 27.7 26.0 12.8% 24.3 13.9% Credit Cards 5.3 4.9 17.6% 4.4 21.7% Unit Trust 18.5 17.1 16.3% 14.7 25.6% Other Retail Loans 1.3 1.3 2.7% 1.6

• 21.7%

Business Banking + SME 25.8 24.7 9.1% 24.9 3.5% GWB (Corporate) (Malaysia) 57.7 57.4 1.2% 45.9 25.9% Total Domestic 178.6 170.1 10.0% 152.2 17.4% International 102.2 89.4 28.7% 76.3 34.0% Singapore (SGD'bn) 24.7 22.1 23.7% 19.1 29.3% BII (Rupiah'tril) 67.2 58.1 31.2% 53.7 25.0% Others 18.4 14.7 49.7% 12.4 48.6% Investment Banking 1.9 2.0

• 7.5%

0.2 1138.7% Gross Loans 282.8 261.5 16.2% 228.7 23.7%

Gross loans grew 16.2% annualised (23.7% YoY), driven by growth in BII of 31.2% (25.0% YoY) and Singapore 23.7% (29.3% YoY)

* Including Islamic loans sold to Cagamas and excludes unwinding of interest

Deposits grew 22.5% annualised (26.4% YoY), driven mainly by growth in Singapore of 33.3% (21.5% YoY) and Malaysia 22.3% (28.4% YoY)

• 10.4%

• 26.5
• 7.8%

1Q FY11 2Q FY11 3Q FY11 4Q FY11 1Q FP11 2Q FP11 6-Month FY11 6-Month FP11

Asset Quality improved with Net Impaired Loan ratio declining to 1.86%

+96.0% YoY +133.3% QoQ

Net Impaired Loan Ratio Allowance for losses on loans

1 Jul 10

Day 1 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11

• 13.9%

YoY

6 Months FY11 6 Months FP11

Group Non-Interest Income increased 32% YoY to RM2.94 billion. Excluding Kim Eng & surplus transfers for the life fund, it totaled RM2.66 bil - a 19.6% YoY increase

+27.4% + 32.9% +18.1%

• 31.1%

+227.8% +156.0% RM million +19.4% ended 31 Dec 2011 ended 31 Dec 2010

• 151.1%

Includes net income from insurance business & fee income from Islamic operations # Interest rate derivatives

• 38.6%

• 39.1%

Overheads grew 25.7% YoY due to KE consolidation & higher personnel costs – trending CIR slightly higher to 49.8% from 48.1%. Excluding KE, overheads grew 13.8% YoY.

838 1,025 1,072 1,671 2,097 122 132 141 233 273 124 97 143 211 240 550 634 698 1,021 1,332 2Q FY11 1Q FP11 2Q FP11 6 Months FY11 6 Months FP11

Personnel costs IT Expenses Marketing Expenses Admin, general expenses & fees & brokerage

RM million

3,136 1,634 2,054 1,887 3,941

+25.7% YoY +8.8% QoQ +25.7% YoY

With KE Without KE QoQ YoY YoY YoY Personnel costs 4.5% 27.8% 25.5% 15.2% IT Expenses 7.0% 15.4% 16.9% 8.9% Marketing Expenses 47.0% 15.6% 13.9% 10.3% Admin, general expenses & fees & brokerage 10.2% 27.0% 30.5% 13.3% Total 8.8% 25.7% 25.7% 13.8% 6 Months FP11 2Q FP11 Overhead Expenses

Capital Adequacy remained strong with DRP and RWA optimisation

Adjusted for dividend payment and reinvestment made under the Dividend Reinvestment Plan (DRP) Full electable portion paid in cash Full electable portion reinvested Assuming 85% reinvestment rate

Core Equity Ratio* Core Capital Ratio Risk Weighted Capital Ratio Core Equity Ratio* Core Capital Ratio & Risk Weighted Capital Ratio

Consistently rewarding shareholders with high dividend payout ratio

29 26 11 28 29 18 8 44 32 36 FY07** FY08** FY09 FY10 FY11 FP11 Final Interim 70.0% 60.0% 61.0% 76.5% 74.9% 79.9%

• Final dividend payout of 36 sen
• Net dividend of 27 sen = 3 sen cash portion + 24 sen electable portion
• Dividend Payout Ratio of 79.9% exceeds policy of 40% – 60%

* subject to Dividend Reinvestment Plan ** adjusted for 1:4 Bonus Issue in February 2008 and 9:20 Rights Issue at RM2.74 in March 2009

Gross Dividend (sen) and Payout Ratio (%)

* * * *

FP11 FY11 FY10 FY09 Net Interest Margin 2.53% 2.56% 2.80% 2.72% Return on Equity 16.2% 15.2% 14.5% 12.8% Fee to Income Ratio 37.6% 36.6% 33.4% 33.0% Cost to Income# 49.8% 49.6% 47.3% 52.8% Loan-to-Deposit Ratio 87.5% 90.1% 86.8% 87.4% Asset Quality Gross NPL or Impaired Loan Ratio 2.85% 3.20% 2.90% 3.46% Net NPL or Impaired Loan Ratio 1.86% 2.25% 1.22% 1.64% Loan Loss Coverage 86.9% 82.3% 124.5% 120.3% Charge off rate (bps) 25 23 53 59 Capital Adequacy (Group) Core Capital Ratio 11.55%^ 11.68%* 10.88%* 10.81% Risk Weighted Capital Ratio 16.26%^ 15.20%* 14.49%* 14.81%

Maybank Group: Key Ratios

Pre-FRS 139 Post-FRS 139

Investor Presentation

Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects

Financial Results: 6-Month Financial Period ended 31 December 2011

2,966 1,432 439 659 62 818 91 3,563 1,689 596 602 52 977 386

Total Community Financial Services Corporate Banking Global Markets Investment Banking International Banking Insurance, Takaful & Asset Management

6,436 2,985 594 812 144 2,139 295 7,827 3,386 806 790 550 2,438 595

Total Community Financial Services Corporate Banking Global Markets Investment Banking International Banking Insurance, Takaful & Asset Management 6 Months FY11 6 Months FP11 +7.8% +18.0% +35.7% +19.4% +20.1% +323.1% +38.4% +101.6% +35.7% +281.2% +14.0%

• 2.7%

+13.4% +21.6%

Revenue and PBT growth across most sectors

Revenue (RM million) Profit before tax (RM million) Global Wholesale Banking (GWB) Global Wholesale Banking (GWB) Note: Head Office & Others: Revenue and PBT : -RM534.3m (6 Months FY11) vs. –RM738.7m (6 Months FP11)

• 8.6%
• 14.8%

ended 31 Dec 2011 ended 31 Dec 2010 (Inc. Kim Eng) (Inc. Kim Eng)

Total# Community Financial Services Corporate Banking Global Markets Investment Banking International Banking Insurance, Takaful & Asset Management^ 4,319 2,343 413 337 8 1,381 43 5,034 2,621 575 312 125 1,600 35 Total# Community Financial Services Corporate Banking Global Markets Investment Banking International Banking Insurance, Takaful & Asset Management 6 Months FY11 6 Months FP11

Revenue recorded double digit growth across most sectors

Net Fund Based Income (including Islamic Banking Income) rose 16.6% Non-Interest Income grew by 19.4%

+16.6% +11.9% +39.3% +15.9% +19.4% +19.2% +0.6% +210.9% +10.5% +122.7% Global Wholesale Banking (GWB) +43.0% Global Wholesale Banking (GWB) +33.6% +1,545.2%

• 18.0%
• 7.4%

+27.5% ended 31 Dec 2011 ended 31 Dec 2010 RM million RM million

# Includes expenditures of Head Office & Others of RM505 million for 6 Months FP11 and RM329 million for 6 Months FY11 ^ Includes net income from insurance business of RM419 million for 6 months FP11 and RM128 million for 6 Months FY11 # Includes expenditures of Head Office & Others of RM234 million for 6 Months FP11 and RM204 million for 6 Months FY11

63% 22% 8% 7% 65% 21% 8% 6%

RM7.83b

68% 12% 16% 4%

Malaysia Singapore Indonesia Others

Revenue and PBT by geography

RM3.56b Revenue Profit Before Tax 6-Month FP11 6-Month FY11

International: 36% International: 33% International: 27% International: 27%

RM6.44b RM2.97b Gross loans RM282.8b*

RM261.5b*

International: 35% International: 37%

67% 11% 16% 6%

73% 14% 3% 10% 73% 16% 5% 6% 64% 16% 15% 5%

42.1 38.6 36.2

Strong growth despite intense competition Asset quality continued to improve Market share increasing Strong Growth in Mortgage Approval*

+18.1% annualised

Community Financial Services: Mortgage grew 18.1% with strong growth in approvals

+16.3% YoY

+51.1% YoY

Community Financial Services: Auto Finance improved in volume and market share

Auto Finance grew 14.2% YoY in Dec 11

+13.3% annualised

Asset quality remained stable with increasing market share Non-national cars form 65% of total Auto Finance loans New cars form 87% of total Auto Finance loans

+14.2% YoY

Community Financial Services: Cards continued to grow above market growth

Cards receivables Card base (‘000)

• Card base excludes Debit cards
• Merchant and Billings consist of transactions done through

Credit, Charge and Debit cards

• Industry figures for cards includes commercial banks and non-FI

players

Cards Market Share Cards performance outperforming industry

+17.7% annualised +18.7% YoY

+1.8% annualised +5.5% YoY

Dec 11 Dec 10 Cardbase 17.9% 16.3% Billings 24.3% 22.5% Receivables 15.3% 14.0% Merchant Sales 30.4% 29.3% YoY Maybank Industry* Cardbase 5.5%

• 4.0%

Billings 21.5% 12.5% Receivables 18.7% 9.0% Merchant Sales 16.5% 12.0%

*Based on new market segmentation effective June 11 onwards

+46.3% annualised +9.1% annualised

Business Banking and SME: Deposits grew at 46.3% annualised

Loans improved by 9.1% annualised Strong deposits growth at 46.3% annualised Business Banking and SME NPL remained stable SME loans market share improving (based on Bank Negara definition*)

Post FRS139 Pre-FRS139

Trade Finance Short Term Revolving Credit & Overdraft Term Loans

Dec 11 Sep 11 Jun 11

Global Wholesale Banking: Loans growth driven by Term Loans and STRC & Overdraft

+6.1% +8.8%

• 20.5%

Total GWB loans recorded 1.2% annualised growth Strong position in terms of Trade Finance Market Share Total GWB loans grew 1.2% to RM57.7 billion as at 31 Dec 2011. Corporate banking: Asset Quality remained stable

Post FRS139 Pre-FRS139

RM billion

Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11

Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11

+24.6% +17.3% +39.8%

• 2.7%

Global Markets: Revenue growth supported by non interest income

Revenue performance Group Securities Portfolio grew 23.0% annualised to RM68.1billion Credit Rating for Private Debt Securities in Malaysia PBT fell 8.6% attributed to lower net interest income and higher impairment losses on securities

812.0 789.8 +0.6%

• 7.4%

• 8.6%

• AA to AA

• AA to AA

Maybank Kim Eng reported a total income of RM510.8 million with Malaysia contributing 41% of the total income

Equity brokerage league table by country Total Income – Maybank Kim Eng

6-Month FP11 Total Income for Malaysia increased 35% YoY

6-Month FP11 Fee-based Income Segmentation

Rank Market Share Trading Value (RM million) Philippines 1 9.3% 19,252 Thailand 1 11.9% 149,357 Indonesia 5 4.7% 40,455 Malaysia 5 6.0% 55,271 Singapore 5* 7.4% 124,285 Vietnam 6 3.6% 2,799 Hong Kong Tier 2 0.2% 32,717 January - December 2011 Country

* Rank is estimated based on market share

Recent Notable Deals

Maybank IB’s (Malaysia) Industry Position & Market Share (July – December 2011)

Highlights of Post-Merger Integration

Estimated Timing 6 Weeks 6 Months 18 Months

• III. Execute Integration Plans
• II. Conduct Integration Planning
• I. Establish Merger

Framework

Phase I Phase II Phase III

Activities involved

Completed

Kick-started on 1st Jan 2012

The merger of the two entities is planned to take place over a period of 2 years

• 1. Finalised scope and objectives of PMI

• 2. Completed baselining for all

• 3. Analysed and defined Target

• rganisation
• 4. Revealed new organisation structure

• 5. Rolled out regional internal

• 6. Executed quick wins
• 7. Completed 5-year combined business

• 8. Launched new Maybank Kim Eng

• 9. Developed business cases and

Completed

• 1. Set directional strategy
• 2. Established and launched

• 3. Mobilised and launched

• 4. Developed merger integration

• 5. Defined merger integration
• rganisation
• 6. Prepared high-level merger

• 1. Roll out initiatives identified in

• synergies. These initiatives consist
• f deployment of employee

• perating model, setting up of

• 2. Initiatives would eventually

We are here

AITAB Mortgage Financing Others Term Financing Others Dec 10 Jun 11 Dec 11 +10% +38% +14% +55% +20%

Group Islamic Banking business sustained strong financing and profit growth

Maybank Islamic financing (21% annualised) Total Gross Financing = RM52.4 billion as at Dec 2011 Maybank Islamic: Improving key ratios Consumer: +17% Business: +31% Group Islamic Banking Income and PBT**

**Islamic Banking (includes Maybank Islamic and the Group’s other Islamic operations) # Includes financing sold to Cagamas

Dec 11 Jun 11 Dec 10 Financing to Deposit Ratio 83.7% 87.8% 97.9% Islamic Financing to Total Domestic Loans 28.5% 27.4% 26.1% Net Impaired Financing Ratio 1.03% 1.25% 1.90%

RM million 6-Month FP11 6-Month FY11 YoY Growth

Fund based income 865.5 623.8 38.7% Fee based income 142.5 107.2 32.9% Total income 1,008.0 731.1 37.9% Allowance for losses on financing (61.3) (11.7) 426.3% Profit before tax and zakat 567.1 429.9 31.9%

RM billion #

Etiqa: No. 1 Position in Life/Family (new business) and General Business

Overall Loss Ratio in line with Industry 60.0% (Etiqa) vs. 58.4% (Industry)

• 2.6%
• 10.0%

+187.2% +20.2% +7.4% +35.5% +31.5% +20.5%

Total Assets (RM billion)

+8.7% annualised

Industry 58.4% 28.3% 74.7% 29.2% 40.8%

+4.5% +19.8% +57.6%

+8.9 YoY

• 5.4%
• 7.0%

Life/Family (New Business) Market Share General Market Share

• No. 2 in

Life/Family (New Business)

• No. 1 in General

Investor Presentation

Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects

Financial Results: 6-Month Financial Period ended 31 December 2011

Maybank Singapore loans growth outpaced industry‘s Diversified Loan Portfolio Asset Quality relatively stable Revenue and PBT rose 16.4% and 10.4% YoY respectively

SGD billion

Consumer Corporate

22.0 19.1

40% 60%

Singapore: PBT rose 10% boosted by higher fee income

24.6 23.8% annualised

• 1.4%

• 172.8%

• 3.8%

Consumer Corporate

BII: Profit before tax grew 108.8% YoY Income Statement

Rp Billion 2H FY11 Jul - Dec 11 2H FY10 Jul - Dec 10 YoY % Change Interest income 4,196 3,365 24.7% Interest expense (2,060) (1,556) 32.4% Net interest income 2,136 1,809 18.1% Non-interest income 1,113 1,055 5.5% Gross Operating income 3,249 2,864 13.4% Operating expenses (excluding prov.) (2,345) (2,069) 13.3% Operating income before provision 904 795 13.7% Provisions (453) (579)

• 21.8%

Profit before taxation and zakat 451 216 108.8%

Revenue PBT

BII: Revenue grew 12% on the back of 31.2% consolidated annualised loans growth

Loan-to-Deposit Ratio (Bank only) Net Interest Margin Loan composition (Rp trillion) Group Revenue and PBT (Rp billion) – Full Year 53.7 56.7 59.5 62.0 +12% +25%

Rp billion

62.7

BII : Branches and touch points expansion on track

Asset Quality Branches and ATM Cost to Income Ratio

Capital Adequacy : consolidated (credit, operational & market risk)

Revenue and PBT (Rp billion) Asset Quality

WOM : 10.9% growth in revenue, whilst PBT impacted by provisions arising from 2010 portfolio

Financing Amount (In IDR bn) Unit Financing (In 000 unit) +10.9%

• 92.2%

Rp billion

MCB Bank: Financial Highlights

Revenue and PBT Loans and Deposits

+13.8%

• 9.5%

+22.7% +18.9%

• Key Ratios

FY11 FY10 Return on assets 5.11% 4.91% Return on equity 25.35% 25.51% Cost-to-income ratio 33.65% 31.00% Loans to deposit ratio 51.42% 64.65% NPL Ratio 10.75% 8.95% Net Interest Margin 25.18% 23.64%

An Binh Bank: Financial Highlights

Revenue and PBT Loans and Deposits

+0.2%

• 13.2%
• 39.5%

+36.0%

  

Key Ratios FY11 FY10 Return on assets 1.89% 2.05% Return on equity 6.40% 10.85% Cost-to-income ratio 46.90% 43.82% Loans to deposit ratio 97.86% 84.74% NPL Ratio 2.79% 1.16% Net Interest Margin 16.14% 12.55%

Investor Presentation

Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects

Financial Results: 6-Month Financial Period ended 31 December 2011

Ringgit/USD: RM2.95 by end 2012

Malaysia: Sustained growth for 2012

CPI and components (% YoY)

Inflation expected to moderate to 2.7% in 2012 (2011: 3.2%)

25bp hikes in OPR in Mar, May, July 10 and May 11 Food & Non-Alcoholic Beverages Utilities, Housing & Other Fuels Transport (RHS)

OPR to remain unchanged at 3% until end of 2012

December CPI: +3.0% YoY

Growth to be moderate at 3.5% - 4.0% in 2012 (2011: 5.1%)

Quarterly GDP and annual growth rate Q4 GDP: +5.2% YoY

Ringgit Malaysia per USD

Malaysia: Banking Sector

Total Loans grew 13.6% YoY for 2011 RM billion Total Deposits grew 14.3% YoY for 2011 RM billion % Capital Adequacy remains strong RM billion Gross NPL RM26.8b, Net NPL ratio: 1.83%

14.9% 12.9%

Singapore: Growth to Moderate on Weak External Demand

 Singapore’s economy is projected to expand by 1 – 3% in 2012 as uncertainties in the external environment – especially Europe and China - continue to persist.  Inflation rate for 2012 forecast at 2.5% – 3.5%, with accommodation and private transportation costs likely to remain elevated in near

• term. Core inflation, which excludes these items, will range between

1.5% – 2.0%.  Unemployment rate is expected to rise from 2.0% in 2011 to 2.2% – 2.5% in 2012 as hiring slowed.  DBU Loan growth to ease to around 7% - 10% in 2012 (from +30% in 2011), weighed by a slowdown in trade financing and property loans.  Net interest margin (NIM) to increase marginally to 1.8% - 2.1% in 2012 (vs. 1.7% – 2.0% in 2011) as banks factor in higher risk premiums in response to the uncertain economic climate.

3-month SIBOR to range between 0.35%-0.45% in 2012

• 10%

0% 10% 20% 30% 40% 50%

Loan Growth expected to moderate to 7%-10% in 2012

Real GDP growth for 2012 expected to be 1% – 3% (2011: 4.9% )

Indonesia: Continued growth

■ 2012 GDP growth expected to reach 6.3%, lower than the growth in 2011 at 6.46%. Growth in Q4 2011 recorded 6.6% expansion. ■ Despite higher inflation expectation this year, Bank Indonesia stays aggressive to stimulate economic growth by cutting key policy rate another 25bps to 5.75%. ■ USD/IDR will hover around 8,800 area due to strong capital inflow and better risk appetite assuming the eurozone debt crisis solved. Yet with some volatility that might appear, we expect rupiah will most likely be at the range 8,800 – 9,200 ■ Loan growth is expected to grow 23% with the investment segment driving growth. ■ NPL is expected to reach 3.01% for 2012.

Bank’s loan growth: trending upwards Bank Indonesia cut BI rate to 5.75% Real GDP Growth: Growing faster

25.2% 18.7% 4Q11 GDP: +6.6% YoY

As we progress into FY2012, we remain focused on our strategic objectives Our Vision Our Mission Strategic Objectives By 2015

To be a Regional Financial Services Leader Humanising Financial Services Across Asia

• 1. Undisputed No. 1 Retail Financial Services provider in Malaysia by

2015

• 2. Leading ASEAN wholesale bank eventually expanding to Middle

East, China & India

• 3. Undisputed Insurance & Takaful Leader in Malaysia & Emerging

Regional Player

• 4. Truly regional organisation, with ~40% of pre-tax profit derived

from international operations by 2015

• 5. Global leader in Islamic Finance
• Providing people with convenient access to financing
• Having fair terms and pricing
• Advising customers based on their needs
• Being at the heart of community

To support our objectives, we have set out four key priorities for FY2012

Create and Embed Right Risk Culture

• Optimizing RWA & enhancing our capital management framework
• Continued improvement of our risk management processes

including TAT , reporting & resourcing frameworks Significantly raise Customer Service quality Drive Greater Efficiency & Effectiveness

• Continued focus on service improvement projects (e.g. reduce

Branch waiting times, problem resolutions, product knowledge, frontliner capabilities, customer approval turnaround time)

• Continued improvement in our external and internal service

quality indicators

• Stay on course with our branch transformation program &

channel developments

• Delivering ITTP capabilities for Branch Front End, Enterprise

Service Business and Cash Management System

1 2 3

Create a truly Regional Financial Services group

• Continue to develop regional infrastructure, governance & platform
• Unlock value from acquisitions: MIB-KE, BII
• Further roll out of regional business initiatives (e.g. credit card,

transaction banking, payments, global markets & treasury services, and client coverage)

4

We seek to continue to strengthen our leadership in key market segments domestically, whilst pursuing regional excellence CFS

• Continue to achieve growth in all key segments , and sustain

leadership in domestic franchise

• Continue with branch transformation initiatives – modernization of

branches, branch resources optimization, roll-out light branch format

• Continue innovation in internet and mobile banking and expand

presence of Maybank2u to regional markets

• Capture greater SME business – straight through processing and simpler

products structure GWB

• Grow regional investment banking & advisory capabilities and track

record

• Strengthen lead in regional retail equities business
• Increase revenue from institutional equities business & research

franchise

• Build trade finance capabilities to support trade flows between

China, HK and ASEAN

• Build regional cash management platform and operating model in

Singapore and Malaysia

• Build regional Global Markets & Treasury platform to strengthen our

risk management across the region

1 2

We also seek to increase value from domestic & intra-group business opportunities in our core markets and beyond Islamic Banking

• Maintain the domestic market leadership and profitability
• Explore growth in other key markets in Islamic banking business

regionally

• Strengthening the overall Shariah governance and risk

management Singapore Indonesia

• Maintain leadership in key products
• Increase deposits via flagship deposit products
• Increase eChannel usage & acquisition & Provide electronic platform

for cash management & trade finance corporate customers

• Continue to build a diversified loan portfolio across consumer, SME &

corporate business

• Build new capabilities in line with Group’s regional thrusts (e.g.

Synergy with Kim Eng, Wealth Management & Credit Card)

• Provide electronic platform for trade finance corporate customers

4 5 6

Insurance & Takaful

• Maintaining a complete business portfolio in Life, Family,

General and General Takaful for retail and corporate, including:

• Private retirement scheme products
• Investment linked products
• Education products
• Pursue regional expansion & collaboration

3

IT Transformation Programme: Integrated five-year regional implementation roadmap

• f tactical projects for Year-

• ut BFE and CMS

Full IT Transformation Deployment In 2015 2013 - 2015

Key Performance Indicators (KPIs) for financial year ending 31 Dec 2012

Return on Equity 15.6% Loans and Debt Securities Growth 15.2% Group Loans Growth 16.2% Malaysia 13.6% Singapore 11.4% BII 20.9% Group Deposits Growth 11.6% Headline KPIs Other KPIs

Prospects

 Global GDP growth is forecast at 3% in 2012 (2011 est.3.3%) The Eurozone, US and China will all record slower economic growth in 2012.  Group expects to see reasonable business growth in 2012  Malaysia: Economic Transformation Program (ETP) projects and relatively low interest rates (OPR at 3% throughout 2012) in Malaysia  Indonesia: Strong domestic demand and a relatively under-penetrated banking sector.  Singapore: export-oriented economy will record slower growth than in 2011.  Strategy of responsible growth, equal focus on managing asset quality and liquidity through sound risk management practices. Potential for higher credit costs,  Regionalisation initiatives: building a truly regional organisation and governance structure across all functions by building physical infrastructure, such as IT , and in delivering value in areas such investment banking, global wholesale banking, credit cards, global markets and payments .  Focus on further raising customer service quality, embedding right risk culture, and driving greater effectiveness and efficiency and improved cost structure.  Notwithstanding the global challenges, the Group expects to maintain a satisfactory financial performance for FY2012 in view of expected growth in the key ASEAN markets where the Group operates. The Group has two headline KPIs: Return on Equity of 15.6% on an enlarged equity base (FP11:16.2% annualised) and growth in loans and debt securities of 15.2% (FP11: 16.3% annualised).

RM451 BILLION RM2.6 BILLION (6

(6-Month Period)

45,000 MAYBANKERS 2,200 OFFICES 21 MILLION CUSTOMERS

Tot

• tal Asset

ets Profi rofit After Tax Human an Capital tal Global al Net etwo work rk Customer

• mers

WORLDWIDE DE IN 17 COUNTRIES

51Y

ears Of Growth

Maybank: Thank you for your support

Public c Owner ersh ship

60,000 SHAREHOLDERS > 10.5 MILLION UNITHOLDERS

MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel : (6)03-2070 8833 www.maybank.com

• Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the

Investor Relations Contact