Malayan Banking Berhad (Maybank) 2Q FP11 Analyst Presentation

0

Investor Presentation

Financial Results6-Month Financial Period ended 31 December 2011

23 February 2012

www.maybank.com

1


Executive Summary

Financial Performance

Business Review

Country Review

Economic Update and Prospects

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

2

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.

3

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.

4

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….

5


5. Continue asset & network expansion in BII, fix WOM & grow Syariahbanking 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)


6


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.


7

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

8


Executive Summary


Business Review

Country Review



9

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

on loans2,064.2 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

10

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 loans3,885.5 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

11

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

RM billion Dec 11 Jun 11Annualised

GrowthDec 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%

12

RM billion Dec 11 Jun 11Annualised

GrowthDec 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

13

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)

89.2% 88.8% 88.9%

87.7%

82.6%

Jun 09 Jun 10 Dec 10 Jun 11 Dec 11

86.3%

81.2%

87.5%

96.4%

92.5%


80.9%

91.3% 90.7%88.1%

93.9%


87.4%86.8%

88.4%

90.1%

87.5%


RM bilAnnualised

Growth

YoY

GrowthSGD bil

Annualised

Growth

YoY

GrowthRupiah tril

Annualised

Growth

YoY

GrowthRM bil

Annualised

Growth

YoY

Growth

Savings Deposits 32.9 9.8% 11.6% 2.9 12.2% 10.1% 17.6 41.0% 28.1% 47.0 13.3% 14.0%

Current Accounts 47.5 3.4% 14.5% 2.8 25.3% 19.7% 12.4 5.2% 21.4% 58.4 1.7% 13.8%

Fixed Deposits 103.2 48.1% 41.0% 20.2 36.8% 23.0% 40.4 6.5% 21.7% 181.3 37.7% 33.0%

Others 25.2 -10.4% 36.4% 0.5 83.7% 52.3% - - - 26.5 -7.8% 37.3%

Total Deposits 208.8 22.3% 28.4% 26.5 33.3% 21.5% 70.4 14.0% 23.2% 313.7 22.5% 26.4%

Low cost funds (CASA)

LD Ratio

Malaysia Singapore BII Group

33.6%

87.5%

38.4%

82.6%

21.8%

92.5%

42.6%

93.9%

14

264.7

117.5

72.247.7

98.7

230.3

382.2

329.1

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 RatioAllowance for losses on loans

1 Jul 10

2.83%

2.99%

2.74%

2.39%

2.25%2.18%

1.86%

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

-13.9% YoY

15

1,989

1,230

289

24

357

90 128 107

2,374

1,567

342

16

219 230

419

143

Total non-interest income

Commission, service charges and fees

Investment & Trading Income

Unrealised gain on securities & derivatives#

Foreign Exchange profit

Other Income Net income from Insurance Business

Fee income from Islamic Operations

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

mill

ion

+19.4%

ended 31 Dec 2011ended 31 Dec 2010

2,085 1,318 323 59 217 169 406 143

Excluding Kim Eng

+4.8% +7.1% +11.5% -151.1% +88.6% +217.9% +32.9%

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

-38.6%

Excluding insurance surplus transfer & new takaful framework implementation

130

+1.6%

-39.1%

16

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

mill

ion

3,136

1,634

2,0541,887

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 & brokerage10.2% 27.0% 30.5% 13.3%

Total 8.8% 25.7% 25.7% 13.8%

6 Months FP112Q FP11

Overhead Expenses

17

13.45%14.23% 14.37%

14.73%

15.54% 15.68%

31 Dec 11 31 Dec 11 31 Dec 11

13.15% 13.04% 13.12%# 13.19%

13.62% 13.19% 13.12%(3)13.38%

31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11

8.53% 9.13% 9.23%

10.95%11.55% 11.65%

15.66%16.26% 16.37%

31 Dec 11 31 Dec 11 31 Dec 11

8.73% 8.55% 8.77% 8.22%

11.80% 11.60% 11.68%10.68%

14.16% 14.12%15.20%

14.71%

31 Dec 10 31 Mar 11 30 Jun 11 30 Sep 11

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

Note:

* Core Equity Ratio computation is based on phase-in / transitional arrangements announced by BNM & BCBS# Core Equity Ratio is capped at Core Capital Ratio & Risk Weighted Capital Ratio

18

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 (%)

*

*

* *

19

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

# Total cost excludes amortisation of intangibles for BII and Kim Eng

^ Assuming 85% DRP reinvestment rate

*

Pre-FRS 139Post-FRS 139

20


Executive Summary


Business Review

Country Review



21

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





+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 sectorsR

even

ue

(RM

mill

ion

)P

rofi

t b

efo

re t

ax (

RM

mill

ion

)

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%


(Inc. Kim Eng)

(Inc. Kim Eng)

22

2,116

642 182

475 137

759 251

2,793

765 232

478 425 839 560

Total# Community Financial Services



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





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%


RM

mill

ion

RM

mill

ion

# 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

23

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 Tax6-Month FP11

6-Month FY11

International:36%

International:33%

International:27%

International:27%

RM6.44b RM2.97b

Gross loans

RM282.8b*Dec 2011

RM261.5b*June 2011

International:35%

International:37%

(July 10 – Dec 10)

(July 11 – Dec 11)

67%

11%

16%

6%

* Including Islamic loans sold to Cagamas and

excludes unwinding of interest

73%

14%

3%10%

73%

16%

5%6%

64%

16%

15%

5%

24

31.7 33.6 36.4

4.5 5.05.7

Dec 10 Jun 11 Dec 11

Housing loans Shophouse loans

42.138.636.2

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% YoY4.5%

3.1%

2.2%


Impaired loan ratio - Mortgage

13.0%12.9% 12.9%

13.0%13.1%

13.2%

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

Total Mortgage Market Share

+51.1% YoY

16.815.1

22.8

Dec 09 Dec 10 Dec 11

Mortgage Approval

* Based on new extraction rule

RM

bill

ion

RM

bill

ion

25

0.7%0.5% 0.5%

18.4%18.8%

19.4%

0.0%

0.5%

1.0%

1.5%

2.0%

17.0%

17.5%

18.0%

18.5%

19.0%

19.5%

20.0%


Impaired loan ratio - AutoHire Purchase Market Share

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

23.825.5

27.2


+14.2% YoY

35%

65%

National Cars

Non-national cars

13%

87%

Used cars

New cars

RM

bill

ion

Auto Finance Market Share

26

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

4.384.78

5.20

Dec 10 Jun 11* Dec 11*

+17.7% annualised

+18.7% YoY

1,410 1,474 1,487


+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

RM

bill

ion

27

17.2%16.4%

15.5%14.9%

15.5%

16.5%17.0%

17.4%

19.2%

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

57.860.4

67.9

41.247.3

50.7

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

24.2 25.3 25.0 24.7 24.6 25.8

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

+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 stableSME loans market share improving(based on Bank Negara definition*)

RM

bill

ion

RM

bill

ion

Post FRS139Pre-FRS139

*Figures are based on new market segmentation effective June 11

*SME includes loans under GWB (Corporate) ); Classification by Loan Size

11.5% 11.4%10.2%

17.1% 16.2%14.9%

13.0% 13.0%11.8%


*Figures are based on new market segmentation effective June 11

28

12.5

18.1

26.8

11.6

18.5

27.7

11.2

18.9

27.6

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 FRS139Pre-FRS139

RM

bill

ion

22.5% 22.6%23.3%

24.5%

25.6%25.1%

26.9%

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

1.3% 1.2%1.5%

4.2%3.9%

3.4% 3.4% 3.5% 3.7%


29

28.8

26.0

6.2

32.4

28.3

7.4

Government Securities

PDS / Corporate Bonds

Others

Dec 11

Jun 11

337.0 311.9

475.0 477.9

6-Month FY11 6-Month FP11

Net Interest Income Non Interest Income

+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%RM

mill

ion

RM

mill

ion

-8.6%658.9

602.1

6-Month FY11 6-Month FP11

AAA47.0%

-AA to AA25.4%

A and below27.6%

AAA

-AA to AA

A and below

30

239.8

216.7

214.9

322.8

190.419.4

4.2

FY08

FY09

FY10

FY11

6M FP11

30

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

RM

million

6-Month FP11 Total Income for Malaysia increased

35% YoY

RM

million

6-Month FP11 Fee-based Income Segmentation

209.8

64.3

145.3

17.2 9.4

64.8

Malaysia Singapore Thailand Indonesia Hong Kong Others

Rank Market ShareTrading 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

0.0 500.0

FY08

Fee based income

Fund based income

Other Income

31 31

Recent Notable Deals

We utilised our new regional franchise to distribute the IPO transactions both domestically and regionally

Sources:

1 Bloomberg

2 Bursa Malaysia

Eversendai Corporation Berhad

IPO

Sole Adviser, Underwriter and

Bookrunner

RM392,300,000

July 2011

Pavilion Real Estate Investment

Trust’s (REIT)

IPO

Joint Principal Adviser, Joint Global

Co-ordinator, Joint Bookrunner,

Underwriter

RM710,300,000

December 2011

Weiye Holdings Limited

RTO

Financial Advisor

SGD600,000,000

August 2011

Titan Chemicals

Mandatory General Offer made

by Honam Petrochemical

Corporation

Advisor

RM4,060,000

October 2011

Malayan Banking Berhad

Ringgit Malaysia Subordinated

Notes Programme

Principal Adviser, Lead

Arranger, Lead Manager

Up to RM3,000,000,000

August 2011

YTL Power International Berhad

Medium Term Notes

Programme

Joint Lead Arranger, Joint

Lead Manager

Up to RM5,000,000,000

August 2011

DRB-HICOM Berhad

Islamic Medium Term

Notes Programme

Principal Adviser, Lead

Arranger, Lead Manager

Up to RM1,800,000,000

November 2011

PT Bank Internasional Indonesia TBK

Fixed Rate Senior Unsecured and

Subordinated Bond Programme

Joint Lead Managers and Bookrunners

IDR6,000,000,000,000

December 2011

Maybank IB’s (Malaysia) Industry Position & Market Share

(July – December 2011)

IPO

Joint Principal Adviser, Joint Global

Co-ordinator, Joint Bookrunner,

Joint Managing Underwriter

RM2,662,000,000

July 2011

Bumi Armada Berhad Maybank IB Industry Rank

by Value

Total Value

(RM billion)

Deals /

Issues Market Share

M&A1 2 27.5 29 34.6%

Equity & Rights Offerings1 2 0.8 4 15.9%

Debt Markets -

Malaysia Domestic Bonds1 2 9.6 62 27.1%

Debt Markets -

Malaysian Ringgit Islamic

Bonds1

2 4.5 43 22.2%

Equity Brokerage2 4 26.3 n.a. 6.5%

32 32

Highlights of Post-Merger Integration

Estimated

Timing 6 Weeks 6 Months 18 Months

III. Execute Integration PlansII. Conduct Integration PlanningI. Establish Merger

Framework

Phase I Phase II Phase IIIActivities

involved

CompletedKick-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

workstreams

2. Completed baselining for all

countries

3. Analysed and defined Target

Operating Model for combined

organisation

4. Revealed new organisation structure

and leadership team

5. Rolled out regional internal

communications channels

6. Executed quick wins

7. Completed 5-year combined business

plan, financial projections and

synergy targets

8. Launched new Maybank Kim Eng

brand

9. Developed business cases and

implementation plans for Phase III

Completed

1. Set directional strategy

2. Established and launched

communications

3. Mobilised and launched

Programme Management Office

(PMO)

4. Developed merger integration

guiding principles

5. Defined merger integration

organisation

6. Prepared high-level merger

integration roadmap

1. Roll out initiatives identified in

Phase II across all countries using a

strategic and systematic approach

to realise revenue and cost

synergies. These initiatives consist

of deployment of employee

programmes, rollout of regional

operating model, setting up of

regional IT framework, etc

2. Initiatives would eventually

transition to business as usual

We are here

33

14.6

6.7

8.6

2.5

7.3

15.8

6.8

12.3

3.7

8.8

16.6

8.1

13.2

4.7

9.7

AITAB Mortgage Financing

Others Term Financing

Others


+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


Financing to Deposit Ratio 83.7% 87.8% 97.9%

Islamic Financing to

Total Domestic Loans28.5% 27.4% 26.1%

Net Impaired Financing

Ratio1.03% 1.25% 1.90%

RM million 6-Month FP11 6-Month FY11YoY

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

zakat567.1 429.9 31.9%

RM

bill

ion

#

34

0 500 1000 1500 2000 2500

Total General

Fire

Motor

MAT

Misc

Total Life/Family

Single Premium

Regular Premium

Credit Premium

Group Premium

2Q FP11

2Q FY11

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)

Combined Gross Premium

-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%

Industry Source: Loss ratio for Malaysia’s Conventional business only with rolling 12 Months (Oct10 -Sep11).Company Source: Loss ratio for Malaysia’s Insurance and Takaful General business with rolling 12 Months (Jan11-Dec11)

+8.9 YoY

21.9

22.8

23.8

Dec 10 jun 11 Dec 11

20.0% 19.8%33.4% 30.7%

20.0%Fire

71.6%75.3%

72.8%70.4%

80.0%Motor

-5.4% -7.0% 3.8% 3.7%

197.7%MAT

38.2% 35.8% 32.4% 30.8% 29.0%

Dec10 Mar11 Jun11 Sept11 Dec11

Misc

14.6%

14.8%

15.1%

Great Eastern

Etiqa

Prudential

8.5%

9.2%

12.7%

MSIG & HLMT

Allianz

Etiqa

Life/Family (New Business) Market Share

General Market Share

No. 2 in Life/Family (New Business)

No. 1 in General

35


Executive Summary


Business Review

Country Review



36

3.8 4.6 5.32.0

2.8 3.22.82.7

3.52.12.6

2.84.35.0

5.33.33.3

3.3

0.80.8

1.2

Dec 10 Jun-11 Dec-11

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

bill

ion

Consumer

Corporate

22.019.1

40%

60%

Singapore: PBT rose 10% boosted by higher fee income

24.6

23.8% annualised

0.77% 0.75%

0.63%0.58%

0.65%0.58%

0.46% 0.47%0.53%

0.09% 0.07% 0.09% 0.07%

0.25% 0.23%0.14% 0.18%

0.26%


Gross NPL ratio Net NPL ratio

23.4%

5.0%

8.6%

25.4%28.6%30.6%

-1.4%

11.4%14.8% 24.2%

Jun 08 Jun 09 Jun 10 Jun 11 Dec 11

Maybank Singapore Growth Industry Growth

6-Month FP11 6-Month FY11

31 Dec 11 31 Dec 10

Net fund based income 240.3 226.2 6.3%

Non interest income 144.2 104.2 38.4%

Total income 384.6 330.4 16.4%

Provision 8.6 (11.8) -172.8%

Profit before tax 218.1 197.5 10.4%

YoY

Growth SGD million

+92.8%

-3.8%

+12.6%

+17.4%

+58.7%

+25.1%

+33.0%

Consumer

Corporate

37

BII: Profit before tax grew 108.8% YoY

Income Statement

Rp Billion2H 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%

Note: Based on numbers consolidated by Group

38

3.6 4.2 4.6 4.5 4.4

18.6 18.8 19.1 20.1 21

19.0 19.9 21.3 22.2 24.1

12.2 13.3 14.1 14.817.3

0.4 0.4 0.4 0.40.4

Dec 10 Mar 11 Jun 11 Sep 11 Dec 11

Subsidiaries Consumer SMEC Corporate Syariah

5,645 6,332

790 985

FY10 FY11

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%

FY10 : before adoption SFAS No.50/55; FY11 after Adoption SFAS No.50/55 FY10 : before adoption SFAS No.50/55; FY11 after Adoption SFAS No.50/55

Modified LDR (consolidated) as of Dec 11 : 81.2%Modified LDR (bank only) as of Dec 11 : 78.9%

Rp

bill

ion 5.87%

5.67%

5.43%5.28% 5.22%


62.783.2% 85.4% 83.0% 85.8% 88.9%


39

BII : Branches and touch points expansion on track

Asset QualityBranches and ATM

Cost to Income Ratio

Normalised Cost to Income Ratio (consolidated) as of Dec 11: 61.33%,

3.1%

2.6% 2.5% 2.5%

2.1%

1.7%1.4%

1.2%1.4%

1.1%


Gross NPL Net NPL

255 260 274 295 327 337 344 346 351

787 806 844 893952 1009 1017

10881152


Branches ATM+CDM

66.52%

68.74%

Dec 10 Dec 11

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

12.51%11.68%

13.06%12.33% 12.46%


40

1,492 1,655

194

15

FY10 FY11

Revenue PBT

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

bill

ion

3.01%3.28% 3.20% 3.04%

2.72%

1.00% 1.16%0.82%

1.26% 1.29%


Gross NPL Net NPL

486

136

622

501

73

574

New bikes Used bikes Total

FY10 FY11

6,146

1,180

7,326 6,476

594

7,070

New bikes Used bikes Total

FY10 FY11

41

273.2247.1

423.0

481.6

Dec 10 Dec 11

Gross Loans Customer Deposits

42.24

51.82

25.51 30.32

FY10 FY11

Revenue PBT

MCB Bank: Financial Highlights

Revenue and PBT

Loans and Deposits+13.8%

-9.5%

+22.7%

+18.9%

PK

R b

illio

ns

PK

R b

illio

n

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%

42

1,343.9

1,828.2

661.4

400.5

FY10 FY11

Revenue PBT

An Binh Bank: Financial Highlights

Revenue and PBT

Loans and Deposits

+0.2% -13.2%

-39.5%

+36.0%

VN

D b

illio

nV

ND

bill

ion

19,876.9 19,915.5

23,457.3

20,351.2

Dec 10 Dec 11

Loans Customer Deposits

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%

43


Executive Summary


Business Review

Country Review



44

Ringgit/USD: RM2.95 by end 2012

(25)

(20)

(15)

(10)

(5)

0

5

10

15

20

25

0

2

4

6

8

10

12

14

Jul-

02

Dec

-02

May

-03

Oct

-03

Mar

-04

Au

g-0

4

Jan

-05

Jun

-05

No

v-0

5

Ap

r-0

6

Sep

-06

Feb

-07

Jul-

07

Dec

-07

May

-08

Oct

-08

Mar

-09

Au

g-0

9

Jan

-10

Jun

-10

No

v-1

0

Ap

r-1

1

Sep

-11

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

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jan

-07

May

-07

Sep

-07

Jan

-08

May

-08

Sep

-08

Jan

-09

May

-09

Sep

-09

Jan

-10

May

-10

Sep

-10

Jan

-11

May

-11

Sep

-11

Jan

-12

OPR SRR

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

Quarterly GDP and annual growth rateQ4 GDP: +5.2% YoY

(9)

(6)

(3)

0

3

6

9

12

90

100

110

120

130

140

150

160

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

RMb % YoY (RHS) % QoQ (RHS)

Ringgit Malaysia per USDRM3.03 per USD

as at Feb 21

2.903.003.103.203.303.403.503.603.703.803.90

Sep

-05

Dec

-05

Mar

-06

Jun

-06

Sep

-06

Dec

-06

Mar

-07

Jun

-07

Sep

-07

Dec

-07

Mar

-08

Jun

-08

Sep

-08

Dec

-08

Mar

-09

Jun

-09

Sep

-09

Dec

-09

Mar

-10

Jun

-10

Sep

-10

Dec

-10

Mar

-11

Jun

-11

Sep

-11

Dec

-11

45

Malaysia: Banking Sector

Total Loans grew 13.6% YoY for 2011

RM

bill

ion

Total Deposits grew 14.3% YoY for 2011

RM

bill

ion

%

Capital Adequacy remains strong

RM

bill

ion

Gross NPL RM26.8b, Net NPL ratio: 1.83%

14.9%

12.9%

2%

4%

6%

8%

10%

12%

14%

16%

18%

550

600

650

700

750

800

850

900

950

1,000

Jan

-07

May

-07

Sep

-07

Jan

-08

May

-08

Sep

-08

Jan

-09

May

-09

Sep

-09

Jan

-10

May

-10

Sep

-10

Jan

-11

May

-11

Sep

-11

Total Loans Total Loans YoY Growth

Household YoY Growth Business YoY Growth

0%

5%

10%

15%

20%

25%

750

800

850

900

950

1000

1050

1100

1150

1200

1250

Jan

-07

May

-07

Sep

-07

Jan

-08

May

-08

Sep

-08

Jan

-09

May

-09

Sep

-09

Jan

-10

May

-10

Sep

-10

Jan

-11

May

-11

Sep

-11

Total Deposits Total Deposits YoY Growth

7

8

9

10

11

12

13

14

15

16

Jan

-07

May

-07

Sep

-07

Jan

-08

May

-08

Sep

-08

Jan

-09

May

-09

Sep

-09

Jan

-10

May

-10

Sep

-10

Jan

-11

May

-11

Sep

-11

Risk Weighted Capital Ratio

Core Capital Ratio

1.5%

1.8%

2.0%

2.3%

2.5%

0

5

10

15

20

25

30

35

Jun

-10

Au

g-1

0

Oct

-10

Dec

-10

Feb

-11

Ap

r-1

1

Jun

-11

Au

g-1

1

Oct

-11

Dec

-11

Gross NPL - 3 Months (LHS) Net NPL (RHS)

46

Singapore: Growth to Moderate on Weak External Demand

Singapore’s economy is projected to expand by 1 – 3% in 2012 asuncertainties in the external environment – especially Europe andChina - continue to persist.

Inflation rate for 2012 forecast at 2.5% – 3.5%, with accommodationand private transportation costs likely to remain elevated in nearterm. Core inflation, which excludes these items, will range between1.5% – 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% in2011), weighed by a slowdown in trade financing and property loans.

Net interest margin (NIM) to increase marginally to 1.8% - 2.1% in2012 (vs. 1.7% – 2.0% in 2011) as banks factor in higher riskpremiums 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%

Dec-0

8

Feb

-09

Ap

r-09

Jun-0

9

Aug

-09

Oct-

09

Dec-0

9

Feb

-10

Ap

r-10

Jun-1

0

Aug

-10

Oct-

10

Dec-1

0

Feb

-11

Ap

r-11

Jun-1

1

Aug

-11

Oct-

11

Dec-1

1

Total Loans Business Loans Consumer Loans

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

0.30

0.40

0.50

0.60

0.70

Sep 0

9

Nov 0

9

Jan 1

0

Mar 10

May 1

0

Jul 1

0

Sep 1

0

Nov 1

0

Jan 1

1

Mar 11

May 1

1

Jul 1

1

Sep 1

1

Nov 1

1

Jan 1

2

3-Month SIBOR

(10)

(5)

0

5

10

15

20

50

55

60

65

70

75

80

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

Real GDP (S$B) % YoY Growth (RHS)

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

47

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan

-10

Jun

-10

No

v-1

0

Ap

r-1

1

Sep

-11

Loan Deposits

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

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

No

v-0

8

May

-09

No

v-0

9

May

-10

No

v-1

0

May

-11

No

v-1

1

Inflation y-y BI rate(y-y %)

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Q1 2003

Q4 2003

Q3 2004

Q2 2005

Q1 2006

Q4 2006

Q3 2007

Q2 2008

Q1 2009

Q4 2009

Q3 2010

Q2 2011

(y-y)

48

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

49

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

50

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

51

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

52

IT Transformation Programme: Integrated five-year regional implementation

roadmap

House of Maybank

Launched

July 2010

Visioning workshops with

senior Maybank leadership

to prioritise strategic

initiatives and find our

Essential Advantage

Enterprise

Architecture

October 2010

Documented the target

state Enterprise

Architecture with views

including the business

architecture, functions,

key process design

Implementation

Roadmap

December 2010

Maybank-wide board

endorsed Transformation

Roadmap

Year 1 Projects and

Programme Directors

April 2011

Completed 20 (of 28)

projects ahead of schedule,

which represents approx 70%

of tactical projects for Year-

1.

BFE

Replacement

& CMS

Targeted to roll

out BFE and CMS

by second

quarter 2012

Full IT

Transformation

Deployment

In 2015

2013 - 2015

Targeted to roll out

subsequent

releases i.e.

Regional Credit

Cards, Core Banking

and Management

Information System

53

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

54

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).

55

RM451 BILLION

RM2.6 BILLION (6-Month Period)

45,000 MAYBANKERS

2,200 OFFICES

21 MILLION CUSTOMERS

Total Assets

Profit After Tax

Human Capital

Global Network

Customers

WORLDWIDE

IN 17 COUNTRIES

51Years

Of Growth

Maybank: Thank you for your support

Public Ownership

60,000 SHAREHOLDERS> 10.5 MILLION UNITHOLDERS

56

Dato’ Khairussaleh Ramli

Group Chief Financial Officer

Contact: (6)03-2074 4288

Email: [email protected]

MALAYAN BANKING BERHAD

14th Floor, Menara Maybank

100, Jalan Tun Perak

50050 Kuala Lumpur, Malaysia

Tel : (6)03-2070 8833

www.maybank.com

Narita Naziree

Head, Group Strategy Management

Contact: (6)03-2074 8101


Disclaimer. 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 form 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.

Raja Indra Putra

Head, Investor Relations

Contact: (6)03-2074 8582


Investor Relations Contact