Investor Day 2021 - Maybank

Humanising Financial Services

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9 April 2021

Investor Day 2021Maybank Group’s Five-Year Strategy: M25

0

Teamwork Integrity Growth Excellence & Efficiency Relationship Building

Who We Are


Serving our

communities in ways

that are simple, fair

and human.

OUR CORE VALUES

OUR MISSION

OUR UNIQUE

DIFFERENTIATORS

OUR STRUCTURE

Our Three Business Pillars…

… Enabled by Group Corporate Functions

Group Community Financial Services

Group Global Banking

Group Insurance & Takaful

Over 42,000 Maybankers

who serve the mission,

empowered by our

TIGER Core Values.

Our strong retail

community

franchise spanning

across ASEAN.

Islamic Finance leverage model

1

Our Strategic Journey

Creation of the “House of Maybank”

Strengthen position in our three core

markets of Malaysia, Singapore and

Indonesia.

Building on strategic acquisitions made in

Indonesia (PT Bank Internasional

Indonesia in 2008) and investment

banking (Kim Eng Holdings Ltd in 2011).

Refocus growth agenda in target regions

and exited Papua New Guinea.

Strengthen our position in ASEAN across

all our key businesses.

Digital technology becomes a key theme.

Continue to build on capital and liquidity

strengths given evolving capital and

liquidity regulatory requirements.

Drove sustainability-led initiatives as per

five-year 20/20 Sustainability Plan

established in 2015, premised on three

pillars (community and citizenship; our

people; access to people and services)

2010-2015

2016-2020

2021-2025

The Top ASEAN Community Bank

The Leading ASEAN Wholesale Bank Linking Asia

The Leading ASEAN Insurer

The Global Leader in Islamic Finance

The Digital Bank of Choice

Sustainability agenda embedded in long-

term strategy to become Bank’s DNA.

Bettering customer experience and

interface through enhanced digitalisation

and data analytics.

Extracting growth from new value

drivers.

2

Our Regional Strategy Contributed to Our Earnings Growth

• Positive macroeconomic conditions with strong

GDP growth in home markets (MY & IND: 5%-6%, SG: 3%-6%).

• Strong upside in the commodity sectors given growing economies.

• Given robust operating environment growth and Maybank’s repositioning of business segments,

net profit expanded >1.5 times from RM4.45* billion in FY2011 to RM6.84 billion in FY2015.

• Given rising geopolitical uncertainties, slowing

economic growth between 2016-2019 (MY: >4%, SG: 0.7%-4%, IND: 5%) and volatility in commodity

markets, we focused on building capital and liquidity strengths as well as new fee income streams.

• Focus on digitalisation in line with aspiration to become The Digital Bank of Choice.

• Re-balancing asset and liability portfolio strategies to optimise risk/returns in line with evolving risk

management practices, enabling optimal shareholder returns (i.e.: better effective dividend

cash payout) and improved capital management.

2011-2015:

Transformation & growth

2016-2020:

Building on capital and liquidity management

2021-2025:

Sustainable new drivers

• Key business decisions will be based on ESG

principles with customers and the community being at the foremost in

everything we do.

• New value drivers focused on digital-play

(digital inclusion for SMEs, digitalising the Wholesale Banking customer experience,

scaling up digital insurance business), strengthening wealth proposition with

Universal Private Bank, expanding Islamic Banking from credit to investment

intermediary to grow fee income contributions, and tapping on cross border

opportunities of the various corridors.

*The RM4.45 billion Net Profit is based on 12-month ending 30 June 2011, while 2011 bar chart data is based on calendar year. The differing figures is due to fiscal period change in 2011.Source: data.worldbank.org for GDP data

12.3214.82

16.7718.54 18.53

21.24 22.17 23.24 23.66 24.74 24.76

6.5 7.36 8.54 9.61 9.42 10.95 11.69 11.91 12.42 13.18 13.52

3.82 4.88 5.75 6.55 6.72 6.84 6.74 7.52 8.11 8.26.48

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021f 2025f

Net Operating Income PPOP Net Profit

2010-2015: 5-Year CAGRNet Operating Income : 11.5%PPOP : 11.0%Net Profit : 12.4%

2015-2020: 5-Year CAGR Net Operating Income : 3.1% (3.9%)PPOP : 4.3% (4.7%)Net Profit : -1.1% (4.6%)

* Figure in bracket is 4-year CAGR, excluding

2020 due to COVID-19 pandemic

(RM

’ billion)

2020-2025: 5-Year (f)ROE : 13-15% CIR : <=45%

3

15.9

0

12.6

0

15.3

1

14.7

0

15.2

0

13.1

8

13.9

0

11.3

0

12.8

9

10.8

7

10.0

0

21.50

18.90 18.68 18.40 17.9016.88 16.80 16.40 15.77 15.69

13.70

HSBC CBA Maybank UOB OCBC ICBC DBS ANZ SHINHAN BOC WOORI

Capital Adequacy Ratio1

CET1 (%) AT1 (%) Tier 2 (%)

93.9% 93.4% 92.7% 92.4% 90.1%

151.9%

133.1% 132.4%141.0% 142.0%

36.0% 37.3% 35.9% 35.5%42.8%

FY2016 FY2017 FY2018 FY2019 FY2020

Liquidity Risk Indicators

LDR LCR CASA Composition

We Continue to Maintain Strong Capital & Liquidity Positions…

19.29% 19.38% 19.02% 19.39%

18.68%

13.99%14.77% 15.03%

15.73% 15.31%

FY2016 FY2017 FY2018 FY2019 FY2020

Total Capital Ratio & CET1 Ratio

Total Capital Ratio CET 1 Ratio

Source: 1. Bloomberg data as at 31 March 2021. Note: Calculation of RWA density = RWA / Total Assets.

Maybank’s capital and

risk-weight assets

density positions

compare very favorably

relative to peers.

Our past emphasis on

healthy liquidity and

capital levels gave us an

edge to enter this

pandemic from a

position of strength.

28.7%

41.2% 41.6% 41.8% 42.9%47.1%

49.4% 50.5% 52.2%

60.4% 62.2%

HSBC ANZ SHINHAN OCBC CBA Maybank DBS WOORI UOB ICBC BOC

RWA Density1

4

11

28 3222.5 24

2420 23 25

25

13.5

44

32

36

33

3133 30

3232 32

39

38.5

FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Final

Interim

…Enabling Steady Shareholder Rewards & Better Cash Payouts up to FY19Total dividend payout ratio consistently above 40-60% policy rate

76.5% 74.9% 79.9% 74.7% 71.9% 78.5% 76.3% 78.1% 78.5% 77.3%87.8% 91.2%

Dividend (sen), Payout Ratio, Yield and Cash Component (%)

Effective Cash Dividend Paid Out

from Net Profit

60.4% 61.4% 26.2% 17.2% 17.0% 19.0% 22.0% 29.0% 23.2% 28.6% 57.2% 47.1% 87.8%

Note:

* Actual Reinvestment Rate for Dividend Reinvestment Plan. The reinvestment rate for Final Dividend FY2020 is pending the execution of the 20th DRP.

+ The Final Dividend for FY2017, Inter im and Second Inter im Dividend (reclassification from Final Dividend) for FY2019 were fully in cash.

# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend. Maybank adopted the single-tier dividend regime with effect from FY2012.

• Effective Cash Dividend Paid Out for FY2020 is based on the actual reinvestment rate for Inter im Dividend FY2020 and an 85% reinvestment rate assumption for Final Dividend FY2020.

27% 13% 11% 12% 20% 25% 19% 27%67% 53%

100%

34%

39.3%

FY08 FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

85.9%*

85.7%*

88.2%*85.9%*

88.5%*91.1%*

86.1%*

88.6%*

82.6%*

84.0%*

83.7%*

87.5%*

89.1%*

83.5%* 85.7%* 84.0%*

+

81.7%*

+

+

#

55.060.0

36.0

65.0

53.557.0

54.0 52.055.0 57.0

64.0

87.4%*

52.0

7.3% 6.7%

4.2%

7.1%5.4% 6.2% 6.4% 6.3% 5.6% 6.0%

7.4%

6.1%

Dividend Payout Ratio

Cash Component of Total Dividend

Gross Dividend Yield

5

Maybank2020: Achievements in Key Strategic ObjectivesThe Top ASEAN Community Bank

To be a leading retail & commercial financial services provider in ASEAN, leveraging our regional presence, banking expertise and growth opportunities in ASEAN.

Consumer adoption rate using

digital platforms:

2020: 66.1%

2016: 36.3%

Monetary transactions through

digital platforms (YoY growth):

2020: 53.0%

2016: 34.5%

% of core product sales

generated through digital

platforms:

2020: 78.6%

2016: 23.8%

Winner:

• Regional winner (Asia Pacific) for Best Website Design

Award 2020 by Global Finance Magazine 2020.

• Asia Trailblazer of the Year 2020 by Retail Banker

International Asia Trailblazer Awards 2020.

• World’s Best Consumer Digital Bank Awards in Asia

Pacific (Malaysia, Indonesia) by Global Finance Magazine

2020.

• Best Digital Bank in Malaysia and Indonesia by Global

Retail Banking Innovation Awards 2020

Group Wealth Management recorded 8.3% CAGR growth in total

AUM over the last five years:

2020: RM244.0 billion


Leader in digital banking:

Largest market share in Malaysia with 60.7% in mobile

banking.

Regional Retail SME recorded

8.4% five-year CAGR growth

in loans:



Introduced many innovative and first-to-market digital solutions such as:

• MAE by Maybank2u, a lifestyle app.

• New and improved Maybank2u app with biometric and Secure2u features.

• QRPay and Tap2Phone, affordable digital payment solutions for small

merchants.

• SME Digital Financing with 10-minute approval.

• EzyQ, an online branch appointment system.

• Fully digital real-time account opening for SMEs in Malaysia.

• Video Know-Your-Customer (KYC) via Maybank2u, enabling fully digital

customer onboarding in Indonesia.

6

Maybank2020: Achievements in Key Strategic ObjectivesThe Leading ASEAN Wholesale Bank Linking Asia

To be the trusted ASEAN financial partner that links Asia by leveraging our ASEAN leadership capabilities to deliver client solutions across Asia.

No. 1 Wholesale Bank in Malaysia by market share of

loans, deposits and trade finance.

Leading Global Banking franchise in the country and region:

• Best Trade Finance Provider in Malaysia by Global Finance Trade & Supply Chain Finance

Awards 2020.

• Best Investment Bank in Malaysia by Euromoney, Global Finance, and Finance Asia.

• Best Broker in Southeast Asia by Alpha Southeast Asia

ESG market leader in Malaysia:

• Consistently ranked No. 1 on the

ESG League Table (Dealogic) since

2017

• Executed noteworthy ESG-driven

deals across the region such as

the LSS3 solar power projects

financing, and Indonesia’s USD2.5

billion Sovereign Sukuk.

Leading brokerage franchise in ASEAN and Top 5 in

Malaysia, Thailand and Indonesia.

Maybank2E expanded ASEAN capabilities across the

region.

Net Promoter Score

(NPS) in Malaysia:

2020: 15

2016: 6.4

Total # of ASEAN DCM

deals:

2020: 82

2016: 56

Group Asset Management’s AUM recorded five-year

CAGR growth of 12.6% to RM32.6 billion in FY2020.

Bloomberg League Table

MYR Islamic Sukuk

2020: 1

2016: 1

Malaysia Bonds

2020: 2

2016: 2

Malaysia ECM

2020: 1

2016: 1

Global Sukuk

2020: 3

2016: 2

ASEAN Local Currency Bonds

2020: 2

2016: 2

7

Maybank2020: Achievements in Key Strategic ObjectivesThe Leading ASEAN Insurer

To be a leading ASEAN insurer by leveraging synergies between Maybank’s regional banking footprint and Etiqa’s expertise in Takaful & bancassurance

NPS in Malaysia:

2020: 24

2016: -7

Regular Premium/Contribution Bancassurance

Market Share in Malaysia:

2020: No. 1 (20.4%)

2016: No. 2 (17.3%)

Life/Family APE Bancassurance

Market Share in Malaysia:

2020: No. 1 (19.4%)

2016: No. 2 (16.0%)

No. 1:

• General Takaful Provider in Malaysia.

• Online Insurer with over 66% market share

in Malaysia.

Implemented Insurance

Advisor Model driving

growth in

bancassurance regular

premium, achieving No.

1 position in Malaysia.

Highest ever revenue:

RM11.27 billion in 2020

(in gross written

premium).

Winner:

• Best Takaful Company 2019 (International Takaful

Awards)

• Top Bancatakaful Producer 2020 (Malaysian Takaful

Association)

Expanded ASEAN footprint from Malaysia and Singapore

to the Philippines (2014), Indonesia (2017) and Cambodia

(2020).

Introduced Etiqa’s

Smile App enabling

customers to access the

full extent of services

including policy details,

service providers and

claim submission.

8

Maybank2020: Achievements in Key Strategic ObjectivesThe Global Leader In Islamic Finance

To continue delivering innovative client-centric universal financial solutions, building on our global leadership in Islamic Finance

Sukuk League Table

MYR

2020: No. 1

2016: No. 1

Global

2020: No. 3

2016: No. 2

MGIB Contribution to Maybank Group

• Largest Islamic Finance

Provider in Malaysia and Asia

Pacific.

• Top 5 Islamic Bank globally by

asset size

Introduced innovative products such as Investment

Account, HouzKEY and the first Shariah-compliant e-

wallet in Malaysia, MAE.

Winner:

• Global Islamic Bank of the Year (2014,

2015, 2020) – The Banker Awards

(Financial Times)

• Asia-Pacific Islamic Bank of the Year

(2016-2020) – The Asset Triple A Islamic

Finance Awards

Established Maybank’s

first branch in the

Dubai-DIFC to drive

GCC-ASEAN flow.

NPS in Malaysia:

2020: 33

2016: -6

Assets

2020 :31.7%

2016: 26.9%

Funding

2020: 35.7%

2016: 27.9%

PBT

2020: 28.2%

2016: 21.2%

Led the development of Islamic Finance in

the region:

• Joint lead arranger for one of the world’s

largest green Sustainable and Responsible

Investment (SRI) sukuk in 2019.

• Contributed and collaborated with

academic, educational and governmental

bodies such as INCEIF, ISRA and IIUM to

develop Islamic Finance knowledge, learning

and banking modules.

9

Maybank2020: Achievements in Key Strategic ObjectivesThe Digital Bank of Choice

To be the digital bank of choice by putting our customers’ preferences first and transforming to deliver next-generation customer experience.

Supporting community development, particularly during the pandemic:

• Launched Sama-Sama Lokal in 2020, a platform that enables small businesses to

operate online at no cost.

• Introduced MaybankHeart in 2016 – the first-of-its-kind digital social fundraising

platform for non-governmental organisations (NGOs).

Further enhanced customer experience by building partnerships, digital assets, platforms and capabilities such as:

Introduced various customer facing capabilities and innovations as

mentioned across the four strategic objectives above, such as SME Digital

Financing with 10-minute approval and MAE by Maybank2u lifestyle app.

Launched Maybank Sandbox as a regional collaboration platform for

FinTech developers to test out new ideas using real banking APIs.

Standardised and rolled out base applications and Straight-Through

Processing capabilities across the countries and geographies to serve our

customers.

Introduced CARisMa (Capital Adequacy and Risk Management), an

integrated system to better manage assets, liabilities and risks.

Established Maybank Labs to augment digital and analytical delivery for

Maybank Group.

Built connections to partner ecosystems to allow seamless payments &

customer experience, i.e. Grab, Lazada and Shopee.

Sealed strategic partnerships with Grab, SamsungPay, Alipay and Shopee. Rolled out FutureReady digital upskilling programmes for employees.

Increased in-house capabilities to manage and develop financial

applications and improve cyber defence capabilities.

First local bank to introduce SWIFT gpi in 2019, enabling speedier,

convenient and secure cross-border remittances.

10

Maybank Is The Most Valuable Company in Malaysia

Source: Bloomberg 11

RankCompany

(Ranking as at 30 March 2021)Market Cap

(RM Bil)Market Price

(RM)No. of Shares

(in Bil)PE Ratio(times)

1 Malayan Banking Bhd 95.88 8.40 11.41 14.57

2 Public Bank Bhd 83.08 4.28 19.41 17.05

3 Petronas Chemicals Group Bhd 64.80 8.10 8.00 40.50

4 Tenaga Nasional Bhd 59.33 10.40 5.70 16.48

5 IHH Healthcare Bhd 47.67 5.43 8.78 240.27

6 CIMB Group Holdings Bhd 44.26 4.46 9.92 37.04

7 Press Metal Aluminium Holdings Bhd 40.87 10.12 4.04 89.40

8 Hong Leong Bank Bhd 40.75 18.80 2.17 15.37

9 Top Glove Corp Bhd 37.29 4.78 7.80 5.66

10 Maxis Bhd 36.38 4.65 7.82 26.12

Note :1 As at 31st December 2020. 2 As at 30th March 2021

Leading Regional Financial Services Group

Strong Financial & Leadership Positions within ASEAN

2,626

retail branches

worldwide

51

investment banking

branches worldwide

Largest Banking Network In Malaysia

& Present in all 10 ASEAN Countries

Total Assets (USD bil)¹

81

81

82

91

94

101

144

238

246

352

67

76

78

86

79

91

130

202

213

286

Bank Rakyat Indonesia

Siam Commercial

Krung Thai Bank

Public Bank

Bangkok Bank

CIMB

Maybank

OCBC

UOB

DBS

Loans Deposits

Loans and Deposits (USD bil)¹

917

1,005

1,160

1,176

1,280

1,542

1,682

1,865

2,412

3,448

Kasikornbank

BDO Unibank

Public Bank

Bank Mandiri


Maybank

UOB

Bank Central Asia

OCBC

DBS

PATAMI (USD mil)¹ Market Capitalisation (USD bil)2

No.6

No.4No.4

No.5

109

111

112

122

127

150

213

327

395

492

Siam Commercial

Krung Thai Bank

Public Bank

Kasikornbank

Bangkok Bank

CIMB

Maybank

UOB

OCBC

DBS

Source: Bloomberg. Note: Except for Market Capitalisation, Maybank’s figures are computed based on internal exchange rate assumptions. The deposit balances for Maybank and CIMB are inclusive of Investment Accounts.

12

11.1

12.2

20.0

20.3

23.1

32.2

38.2

39.4

54.2

55.0

Kasikornbank

Siam Commercial

Public Bank

Bank Mandiri

Maybank

UOB


OCBC

Bank Central Asia

DBS

Over the Past Decade (Prior to COVID-19 Pandemic), Banks in Our Home Markets Have Seen ROEs Decline…

13Source: ROEs extracted from Bloomberg¹ Maybank’s ROE for 2020 would be below cost of equity due to COVID-19 pandemic

14.5 11.4

10.9

8.1

16.2

9.69.3

2.1

15.2

10.3

10.3

7.7

27.1

14.8

13.6

11.2

16.3

11.3

10.8

9.511.5

7.0 8.87.4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

ROE (%) of Malaysia Banks

Maybank Peer 1 Peer 2 Peer 3 Peer 4 Peer 5

14.5

11.4

10.98.110.2

12.1 13.2

9.112.1

11.5

11.4

7.6

14.3

11.3

11.6

7.4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

ROE (%) of Singapore Banks

Maybank Peer 1 Peer 2 Peer 3

14.5

11.4 10.9

8.1

24.4

14.4

14.09.4

43.8

20.0

18.4

10.5

33.3

18.8 18.016.5

24.7

16.1

14.0

2.9

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

ROE (%) of Indonesia Banks

Maybank Peer 1 Peer 2 Peer 3 Peer 4

…with Maybank’s ROE declining at a relatively slower gradient and remaining above its reducing cost of equity ( <9% since 2018¹)


Operating ContextAgainst these emerging macroeconomic and social trends, our next five year strategy was designed…

Our Operating Context (1/2)

Source: 1) “ASEAN X Macro Global Economy Update: The Good, The Bad, The Uncertain” by MKE Research @ 7 Aug 2020 2) S&P Global Market Intelligence 3) “ASEAN Macro Year Ahead: 2021 Recovery & Reopening” by MKE Research @ 7 Dec 2020 4) “Year Ahead 2021: ASEAN – Herd Immunity & Escape Velocity” by MKE Research @ 7 Dec 2020

We have seen

heightened uncertainty

in the global economy in

the past five years,

impacting the banking

sector ROEs.

Exacerbating this

environment is the

recent pandemic-

induced uncertainties.

Given the volatility

globally and slowing

economic growth, we

have been experiencing

a prolonged low interest

rate environment since

the Global Financial

Crisis, with new interest

rate lows seen in 2020.

Decreasing industry ROE trajectory2

0.00

5.00

10.00

15.00

20.00

25.00

30.00

YTD201920182017201620152014201320122011201020092008200720062005

MY Banks SG Banks ID Banks

Global Economic Policy Uncertainty Index1

Global Average Interest Rates (% p.a.)3ASEAN Central Banks Have Slashed Policy Rates Amid the Pandemic Crisis4

15

Our Operating Context (2/2)

Companies with high

Environmental, Social

and Governance (ESG)

performance relative to

their sector peers have

done well and continue

to attract capital.

Investment trends

continue to show

increasing spend on

digitalisation efforts

across ASEAN, even

during the recent

pandemic, with more

users being on-boarded

on digital banking

platforms.

Source: 1) & 2) “ASEAN X MACRO The Post-Pandemic Normal” by MKE Research @ 13 Nov 2020 3) “Sustainability: New Directions, Expanding Opportunities” by MKE Research @ 20 Oct 2020

Tech Investment in ASEAN Stayed Resilient at USD5.6 bn

in 1H20, more than Double the Amount in 2H191

Mobile Banking App Users Jumped the Most in

Vietnam, Philippines & Indonesia2

16

Perfo

rm

ance o

f M

SCI ESG

index v

s M

SCI

Asi

a e

x-J

apan i

ndex

Yr


M25Refreshing our mission and anchoring our strategy on three priorities

Humanising Financial ServicesOur purpose has been refreshed to reflect long-term priorities and a new operating landscape

Empowering Everyoneto thrive and advance their ambitions

Poverty Eradicationwith financial inclusion & improved livelihoods

Reduced Inequalitiesacross populations, geographies, gender, etc

Clean & Sustainable Environmentthrough low carbon economy, green

infrastructure

Stronger Institutionvia responsible practices, future-proofing

resilience

• Make financial services simple, intuitive and accessible

• Build trusted partnerships for a sustainable future together

• Treat everyone with respect, dignity, fairness and integrity

H U M A N I S I N G F I N A N C I A L S E R V I C E S

Customers• Best-in-class customer

experience• Convenient access to

financial services (digital & physical)

• Fair terms & pricing; advisory based on needs

• Transition support to sustainable practices

Shareholders• Sustainable and responsible

returns• Strong governance and

transparency

Employees• Growth and capability building• Inclusiveness, diversity and

well-being

Regulators• Standard-bearer for the

industry• Professionalism and business

ethics

Communities• Financial inclusion and

empowerment• Commitment to low-carbon

economy

For our stakeholders:Being at the heart of the community,

we will:To create the following impact:

18

Maybank’s Next Five-year Strategy: M25Anchored on our purpose of Humanising Financial Services

19

Group Strategic PrioritiesPervasively Digital

CUSTOMERS

TRUST

RESILIENCE

EXPERIENCE

The Core Principles guide.. .. Our Focus Areas… … which is enabled by:

• Pervasively Digital represents our digital efforts to strengthen and deliver more value to the stakeholders, guided by the Core principles of Experience, Trust and Resilience.

• Our goal is to evolve from being a financial services provider to becoming our customers’ lifestyle partner and build wraparoundexperiences within our services, products and platforms.

• Customer Engagement Platforms

• Digital Ecosystems

• Data Monetisation Strategy

• Customer 360 view

• Deepened Engagements

• Reforms in Distribution

• Partnership Ecosystem

• Exploration of New Opportunities

• Workforce capabilities powered by new/digital skills and rethinking models

• Systems, policies and processes that support mobile workforce and agility

• Expansion of Robotic Process Automation

• Strengthened core and auxiliary systems

• Integrated data system

• Enhanced cash management flow

• Multi-cloud tech platforms for quicker server provisioning and scale

• Micro-service platforms for speed and agility

20

Group Strategic PrioritiesNew Value Drivers

• New Value Drivers go beyond the current business-as-usual (BAU) and represent new business growth opportunities covering SME, wealth, trade, ESG and digital. These are transformative initiatives meant to help us grow over the long-term and sustainably build our competitive edge.

• Driving financial inclusion for SMEs through digital and data-led solutions

• Strengthening wealth proposition with one-stop Universal Banking solutions

• Digitalising end-to-end Wholesale Banking customer experience

• Re-imagining the Islamic Banking business by expanding from credit to investment intermediation

• Scaling up digital insurance through strengthened digital position, delivering best Auto digital solutions and becoming the preferred digital bancapartner

Group Community Financial Services Group Global Banking Group Islamic Banking Group Insurance & Takaful

• We aim to defend and grow our customer base, generate income more effectively & efficiently, provide beyond financial services, and fortify our propositions in the different markets we serve.

21

Group Strategic PrioritiesSustainability

• We aim to drive the change for a better world and partner clients to achieve sustainable growth.• Our sustainability agenda is predicated on three key pillars: enabling responsible transition to a low carbon economy,

empowering our communities and leading by example with good governance practices.

Responsible Transition Enabling our CommunitiesOur House is in Order &

We Walk the Talk1 2 3

Leading by example with good management practices and ensuring that Maybank’s ESG strategy is based upon a strong foundation

Enable transition to a low carbon economy balancing environmental and social imperatives

with stakeholders’ expectation

Building community resilience across ASEAN, undertake responsive action to promote

economic development and social well-being

• Supporting the Transition to a Low-Carbon Economy

• Developing Sustainability Focused Products & Services

• Systemic Risk Management• ESG integration in Financial Analysis• Engaging our People in Sustainability• Business Ethics

• Empowering Communities• Financial Inclusion• Climate Resilience• Transparency and Trust• Diversity, Equity and Inclusion

• Governance and Compliance• Privacy• Our Supply Chain• Our Environmental Impact

• Financing Commitments: No Deforestation, No New Peat, and No Exploitation (NDPE) stance approved by the Board in January 2020 (which

applies to all relevant sectors including but not limited to palm oil, forestry and logging, construction and real estate). The Group will not provide financing to black listed activities deemed not in line with the Group’s core values. No financing of new coal activities (transitioning together with existing borrowers to achieve sustainable renewable

energy mix over medium- to long-term)

22

Business Strategic ThrustsPreferred ASEAN Bank – Group Community Financial Services

Group Community Financial Services aspires to be the “Most Preferred Community Bank” through:

23

AIM HOW? OUTCOME

Attain

Forefront Position

in the SME Space

• Strengthen our position in home markets; create a digital eco-system and marketplace –improve SME commerce capabilities and enable connectivity between SMEs and end-consumers

Grow ≥3x borrowing base in MY

Data and Digital-led

Strategy

• Enhance data analytics capabilities – shift towards advanced analytics to better drive customer centricity solutioning and offerings

• Continue to build and upscale our digital banking capabilities and propositions – enable seamless product and service delivery across the region

> 5.0x

Avg product holding

≥ 80.0%

Digital sales contribution and digital customer penetration

rate

Fortify Our

Wealth Management

Propositions

• Position ourselves to be the Universal Private Bank – gateway to full suite of financial offerings ranging from retail to corporate solutions

• Enable regional Private Wealth borderless customer experience – via consistent enhancementof delivery of product and services across our markets

2x growth in

Private Wealth Customers

Business Strategic ThrustsPreferred ASEAN Bank – Group Global Banking

24

Group Global Banking aspires to be the “Valued ASEAN Banking Partner Globally’ through:

AIM KEY ENABLERS STRATEGIC INITIATIVES OUTCOME

Undisputed No.1 In

Malaysia

BUSINESS MODEL SHIFTS Effective Balance Sheet Management, Income

Diversification & Structural Shifts

• Client segment diversification for optimal risk-return profile

• Ramp-up flow business by driving GM-TB sales franchise

• Investment Banking & Investment Management (IM) propositions

• Building community resilience across ASEAN, undertake responsive action to promote economic development and social well being.

>50% five-year CAGR from New

Profit Drivers (NPD) for IB & AMG

income

The Partner Of

Choice For Our

Clients Globally

CLIENT SERVICING MODEL VIA DIGITAL BREAKTHROUGHInfrastructure building to

deliver superior client experience & improve

productivity

• Platform to automate end-to-end on boarding and credit processing

• Trade, treasury and cash platform optimisation to provide integrated flow solutions

10% - 15%improve TAT

>40% five-year CAGR from NPDs for Trade, Treasury & Cash Mgt income

Efficient, Value

Generating

Regional Banking

Franchise

INTERNATIONAL GO-TO-MARKET STRATEGY

Focus on business with sustainable returns

• Reposition our focus in key international markets (SG, ID & Greater China) through targeted segments, infrastructure building, cross-border solutions and tapping into intra-ASEAN and ASEAN+ corridors

• Invest in capacities, infrastructure and capabilities in CLMV & thePhilippines to complete our flow business proposition

>50% five-year CAGR from NPDs for

income through cross-border flows

Business Strategic ThrustsGlobal Leader in Islamic Finance

25

Group Islamic Banking aspires to be a Global Leader in Islamic Finance through Financial Resilience, Global Prominence and Thought Leadership in Sustainable Finance, Product Innovation and Shariah through:

EXPANDED BUSINESS MODEL WHY? HOW? OUTCOME

Credit Intermediation

Investment Intermediation

• Embrace the risk-sharing model that is more equitable in terms of risk-return

• Reduce reliance on balance sheet

• Introduction of multiple funds under Multi-Asset Investment Account (MAIA)

• Investment Account (IA) as Capital Raising Instrument

RM2 billionRevenue

(Over 5 Years)

Fund-Based Income

Fee-Based Income

• Reduce reliance on balance sheet• Manage cost of capital more efficiently

• MAIA/ IA as Capital Raising Instrument• Islamic Estate Planning (IEP) and Investment Solutions

under Islamic Wealth Management (IWM)• Amplifying trade financing solutions for Halal industry

30%Fee-Based

Income Composition

Traditional

Digital

• Reduce costs and widen the reach of our products and services

• Stay ahead of the curve, riding the digital wave• Provide seamless customer service

• Adoption of Group CFS Digital Ecosystem initiatives including Halal Marketplace and Digital distribution for MAIA and IWM

<25%Cost income ratio

Domestic Contribution

International Contribution

• Capture the opportunities in the growth markets such as Indonesia, Singapore and GCC

• Enlarge the pool of income beyond Malaysia. To be a truly global Islamic bank

• Indonesia – Shariah First strategy and SOE deals• Singapore – IWM business• Dubai – Sukuk, syndicated financing and trade finance

25%International

Contribution to PBT

Typical Banking Solutions

Social Finance

• Empower underserved segments economically. Up-scale them to be bankable customers

• Amplify the social impacts of Islamic finance

• Micro financing solutions• Cash Waqf Funds• Social Enterprise Incubation Programme

PositiveSocial Impact

Indicators

Business Strategic ThrustsLeading ASEAN Insurer

26

Etiqa aspires to be “A Leading ASEAN Insurer” in line with its purpose of “We Want To Make The World A Better Place” by putting the interests of our customers & communities first and providing protection & wellness offerings to as many people as possible.

Be the #3 ASEANowned insurer

Continue to be Agile & have SCRUMas a key enabler

More than Double our Toplinewith a CAGR of 15% over the next 5 years

Grow our PBTwith a CAGR of 12% over the next 5 years

Retained our #1 Bancassurance position while securing a broader base of Banca partners

Expanded our #1 Digital Insurer position across the Region while offering personalised services online

Establish an Auto platformthat goes beyond Insurance

Remain focused on being Fast & Easy to deal with & giving the Best Adviceto our customers

AIM OUTCOME

No.1 Digital Insurer

Of Choice in ASEAN

All Things Auto

Banca Preferred

Partner

GCFS

GGB

Etiqa

NPD

BAU ROE: ~11.5%

FY25 ROE:BAU + NPD

M25 Targeted OutcomesDrivers behind ROE uplift

Group Community Financial Services(GCFS)

Group Global Banking(GGB)

Group Islamic Banking(MGIB)

Group Insurance &

Takaful(Etiqa)

To improve a BAU potential ROE of around ~11.5% by 2025, we have identified New Profit Drivers (NPD) that will bring us closer towards achieving our aspirational ROE of between 13%-15% by 2025.

• IB & IM: Prime brokerage, investment and asset management ESG centric growth• Capture cross border flows from SG-MY and ASEAN+ corridors.• Automate end-to-end onboarding and credit processing.• Optimise trade, treasury and cash platforms so flow business for GB & CFS clients

remain relevant

• Digital: Continuously enhance STP capabilities, drive customer engagement & stickiness.

• Group Private Wealth: Leveraging regional platforms and targeting niche and neglected segments.

• SME: Digitise sales in home markets (i.e.: RSME loans) and enabling lateral connectivity to SME customers across our home markets.

• Digitising sales to become No. 1 Digital Insurer of Choice in ASEAN. • To become preferred banca partner leveraging digital tools.• Expand Auto digital service offerings.

• Expand role from an Islamic Bank to investment intermediation, to drive Islamic fee-based income contribution to Group.

• Develop Wealth Management business in home markets through product innovation and prioritising customer experience, as well as linking investors from Dubai and Brunei to our home markets.

NPD Breakdown

Aspirational ROE

MG

IB’s

NPD

s are

em

bedded

acr

oss

the 3

pilla

rs

27

Build top-notch experience for our

customers via digital and hybrid services

by leveraging data analytics:

M25 Targeted OutcomesDesired Long-Term Outcomes

13-15% Return on

equity

<=45%Cost to income

ratio

>100 sen

Earnings per share

Net Promoter Score (NPS)

Digital Penetration

Conversion Rate

• Mobilise RM50 billion in Sustainable

Finance by 2025.

• Improve the lives of 1 million

households across ASEAN by 2025.

• Commitment to a carbon neutral

position of our own emissions by 2030.

• Achieve 1 million hours p.a. for

sustainability and delivering 1

thousand significant UN-SDG related

outcomes by 2025.

40-60%Dividend

payout ratio (net cash basis)

28


MALAYAN BANKING BERHAD

14th Floor, Menara Maybank100, Jalan Tun Perak

50050 Kuala Lumpur, MalaysiaTel : (6)03-2070 8833

www.maybank.com

Disc laimer: This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the information that

may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or on behalf of the Company as to the accuracy or

completeness of the information or opinions contained in this presentation.

The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of it for m the basis

of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or their contents or otherwise arising in connection therewith.

Investor Day 2021 - Maybank

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