Malayan Banking Berhad (Maybank) AGM 2011 Presentation by President & CEO

51st Annual General Meeting

Dato’ Sri Abdul Wahid Omar

President & CEO

29 September 2011

Humanising Financial Services Across Asia

IntroductionAnother record profit in FY2011 and exceeded our headline key performance indicators (KPIs)

Group transformation initiatives achieved growth across all our key business areas

Acquisition of Kim Eng is a testament of our success in expanding regional contribution

The new House of Maybank delivered strong performance across all business segments

Introduction

Financial Performance

Regional Expansion

Strategy and Achievements

Prospects

Exceeding our KPIs for FY2011

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

Headline KPIs Target FY11 achievements

Return on Equity 14% 15.2%

Loans and Debt Securities Growth 12% 22.6%

Other targets Target FY11 achievements

Loans Growth

• Malaysia 12% 16.8%

• Singapore 5% 25.8%

• BII 24% 25.8%

Net Interest Margin Decrease Normalised: 2.71% (-9 bps YoY)*

*Actual NIM is 2.59%, a decline of 21 bps YoY

FY2011 PATAMI rose 16.6% YoY to RM4.45 billion

*net of insurance claims

Record net profit of RM4.45 billion was mainly due to:

8.9% growth in net income

14.2% growth in overhead expenses

59.0% lower allowance for losses on loans

Broad based growth across key business segments

Group Profit Before Tax (PBT) by business sector (RM million)

Profit growth from home markets continues to be strong

International:

24%

Profit Before Tax by Geographical Locations

Loans grew 21.7% YoY, highest since FY2001Strong Loans growth in 3 home markets of Malaysia (16.8%), Singapore (25.8%)

and Indonesia (25.8%)

YoY GrowthLoans

Community Financial Services: Growth across all segments

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

Cards performance outperforming industry

YoY Maybank Industry*

Cardbase -3.6% -8.7%

Billings 19.0% 14.4%

Receivables 15.6% 12.4%

Merchant Sales 12.3% 12.6%

Hire purchase grew 14.3% in FY2011Mortgage Loans grew 11.6% despite intense competition

SME loans market share recovering(based on Bank Negara definition)

Global Wholesale Banking: Loans growth improved to 25.6%

Investment Banking: Strong fee based income growth

Fee based Income rose 48.9% YoY

Industry Position & Market Shares Improved

Sourc

e:

Blo

om

berg

Maybank IB (without Kim Eng)Industry Rank

FY2010

Industry Rank

FY2011

Total Value (billion)

Deals/Issues Market Share

M&A 5 3 USD 9.3 31 25.7%

Equity & Rights Offerings 3 2 USD 0.86 9 9.6%

Debt Markets - Malaysia Domestic Bonds 4 2 RM 16.3 134 26.3%

Debt Markets - Malaysian Ringgit Islamic Bonds

2 1 RM 16.0 121 35.4%

Equity Brokerage 4 3 RM 63.5 n.a. 7.0%

Within Group Islamic Banking business, Maybank Islamic recorded strong financing growth of 35.1%

Improving key ratios

Group Islamic Banking Income and PBT**

*Maybank Islamic**Islamic Banking (includes Maybank Islamic and the Group’s other Islamic operations)

Maybank Islamic financing (35.1% growth)Total Gross Financing = RM46.8 billion as at Jun 11

Consumer: +30.7% Business: +47.6%

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

Etiqa maintains top position

No. 1 in Life/Family (new business) with market share of 18.3%.

No. 1 in General with market share of 11.5%

Source: ISM Statistics (Apr10-Mar 11).

Combined Gross Premium

-2.1%

+4.5%

-76.6%

-6.8%

+1.8%

+29.6%

+29.6%

-20.5%

-2.2%

+19.5%

-13.9%

Overall Loss Ratio Lower Than Industry 55.3% (Etiqa) vs. 59.5% (Industry)

Source : Rolling 12 months (Jun10-Jun11)Note: Industry Loss Ratio is for conventional business only

Introduction

Financial Performance

Regional Expansion

Strategy and Achievements

Prospects

Worldwide Presence

ASEAN

Hong Kong:1 branchKim Eng: 1 branch

London:1 branchKim Eng: 1 branch

China:1 branch1 rep office

Papua New Guinea:

2 branches

Bahrain:1 branch

PakistanMCB: 1,134 branches

IndiaKim Eng: 1 branch

•New York:1 branch

•Kim Eng: 1 branch

Saudi Arabia*

* 1 office via Anfaal Capital** 1 office via 35% owned Uzbek Leasing International

Uzbekistan**

Maybank Group’s Regional Network2,100 Offices in 17 countries

Acquisition of Kim Eng accelerates the Group’s objective of being a regional investment bank. Kim Eng added 65 offices to the Group.

Thailand Kim Eng: 44 branches

Brunei:3 branches

• Philippines:50 branches

• Kim Eng: 2 branches

•Malaysia:386 branches

IndonesiaBII: 344 branchesKim Eng: 5 branches

Singapore:22 branchesKim Eng:3 branches

• Cambodia:10 branches

• An Binh Bank: 122 branches

• Vietnam: 2 branches• Kim Eng: 7 branches

In 8 ASEAN countries

Kim Eng also maintains distribution presence in key financial markets including Hong Kong, London and New York

Maybank’s Expanded Presence with Kim Eng

Regional Investment Banking/Equities Capabilities Strengthened with Acquisition of Kim Eng

Mutual product offerings

Tapping into Kim Eng’s client base

of 200,000

Cross-selling

Other

Cash management support for

cash balances held in trust

Support for foreign exchange

flows and hedging

Improved funding cost

Kim Eng’s Business andFootprint Expansion

Maybank’s strong capital base

can support Kim Eng’s growth

initiatives (e.g. margin lending)

Access to Thailand and Thai

market intelligence

Enhanced Infrastructure

Maybank’s branch network to support

stockbroking expansion

Operational best practices in risk

management and IT delivery platform

Harnessing Synergies

Improved Investment Bankingand Underwriting Capability

Leveraging Maybank‘s strong

balance sheet and client

relationships

Ranking M. Share

#3 7%

#5 7%

#5 5%

Brokerage / Investment Banking

Other Services

Kim Eng

Commercial Banking

Brokerage / Investment Banking

Retail Banking

Other Services

Maybank

Ranking M. Share

#1 12%

#2 9%

#9 3%

ASEAN Stockbroking Champion

Kim Eng is now wholly-owned subsidiary of Maybank

Completed compulsory acquisition and delisted Kim Eng in August 2011

Maybank now owns 100% of Kim Eng

Maybank Shareholding in Kim Eng Holdings

1

Thailand: After the tender offer, Maybank now owns an aggregate 83.74% in Kim Eng Securities Thailand

Philippines: After acquisition, the aggregate holding in KimEng Financial Corporation (“ATRKE”) is 74.64%. As such, Kim Eng triggered a mandatory tender offer for the remaining ATRKE shares

Downstream offer2

New leadership has been defined: Tengku Dato’ Zafrul as the CEO of the investment banking business and Ronald Ooi as his Advisor.

Post-Merger Integration exercise is led by a Steering Committee, which is co-chaired by Tengku Dato’ Zafrul and Ronald Ooi.

Investment banking business realigned into 5 Business ‘Pillars’: Investment Banking and Advisory, Retail Equities, Institutional Equities, Equity and Commodity Solutions, and Asset Management.

Overall total outlay for the entire acquisition is RM4.692 billion.

Integration and Strategy of Kim Eng

3

Maybank/Kim Eng investment banking business reorganised into 5 pillars

The 5 regional business pillars

Investment Banking and Advisory

Equities – Retail Equities – InstitutionalEquity and

Commodity SolutionsAsset Management

• Corporate Finance,

• Strategic Advisory,

• Equity Capital Markets Debt Markets

• Retail stock broking business

• Institutional stock broking business

• Structured products and derivatives services,

• Futures broking

• Fund management products and services

Enablers (Support services)

Maybank’s Investment Banking Business

Pillar 1 Pillar 2 Pillar 3 Pillar 4 Pillar 5

FY 2015 “Regional Financial Powerhouse”

• Number 1 Malaysian investment bank• Top 5 position amongst regional leaders• Top 3 broker in Malaysia, Indonesia, Thailand,

Singapore and the Philippines

FY 2014Work towards

regional leadership

position

FY 2013Build home

markets, capture synergies

FY 2012Stabilise

operations, execute Quick

Wins

The 3-year roadmap

Singapore: PBT improved 11.0% on higher fee income and lower provision

Revenue and PBT rose 8% and 11% YoY respectively

Asset Quality continued to improve

Diversified Loan Portfolio

SG

D b

illi

on

Consumer

Corporate

Maybank Singapore loans growth outpaced industry‘s

BII: Revenue grew 20.4% on the back of 25.8% consolidated loans growth

Branches and ATM

Loan composition (Rp trillion)

25%

20.%

27%

77%

-20%

Growth (YoY)

Net Interest Margin

Jun’10 : before adoption SFAS No.50/55; Jun’11 after Adoption SFAS No.50/55

Introduction

Financial Performance

Regional Expansion

Strategy and Achievements

Prospects

To be a Regional Financial Services Leader

Humanising Financial Services Across Asia

By 2015

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

2. Leading ASEAN wholesale bank eventually expanding to Middle East, China & India

3. Sustainable Champion for Insurance & Takaful

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

5. Leading Islamic bank in ASEAN

Our Vision

Our Mission

Strategic Objectives

Transformation Programme spurring strong financial performance

New “House of Maybank” Organisation Structure to support aspirations since July 2010

E

N

A

B

L

E

M

E

N

T

Global Wholesale

Banking

Regaining

domestic

leadership and

aggressively

pursuing ASEAN

market expansion

by humanising

client interaction

Community

Financial

Services

Leveraging

shared

distribution,

Customer

Segment driven,

Community Bank

Insurance &

Takaful

Being the

National

Insurance

Champion and

Living the

ETIQA way

Enterprise Transformation Services

ISLAMIC FINANCE INSPIRED

INTERNATIONAL EXPANSION

Humanising Financial Services Across AsiaMaybank

Group CEO + Support (CFO, CRO,GHC, Legal, Compliance, Communications

Expanded Group Executive Committee to reflect regional focus and drive business growth

Key management changes: Muzaffar Hisham (CEO of Maybank Islamic Berhad and Head of Group Islamic Banking), Hans de Cuyper (Head, Etiqa Insurance & Takaful and CEO of Mayban Ageas Holdings Berhad) and Dr. John Lee Hin Hock (Group Chief Risk Officer)

New House of Maybank has accelerated the pace for growth and regional reach

All branches converted to one-stop-shops, providing

comprehensive range of financial services including serving

Business Banking and SME customers.

Extended network via Pos Malaysia offices.

Improved domestic loans and deposits growth.

Community Financial Services

Introduced Client Coverage Model to provide single touch point to

fulfill all the financial needs of corporate customers.

Restructured trade finance. Introduced TradeConnex.

Maybank IB secured major M&A deals and IPOs.

Regional investment banking/brokerage capability strengthened

with acquisition of Kim Eng.

Global Wholesale Banking

Regionalisation of products e.g. trade finance, cards, global markets.

BII added 70 branches increasing the total to 344.

Philippines expanded branch network to 50 with 5 new branches.

Cambodia opened 1 new branch in Kg Cham to reach 10 branches.

International

New House of Maybank has accelerated the pace for growth and regional reach (cont.)

Expanded agency business.

Actively promoted single-premium investment-linked products

through Bancassurance.

Completed key IT infrastructure rollout.

Insurance and Takaful

New Head of Islamic Banking joined in April 2011

Enhanced collaboration with CFS and GWB

Converted Maybank Indocorp into Maybank Syariah IndonesiaIslamic Banking

Embarked on IT transformation programme to deliver:

Consistent products and services across all sales channels

Convenience to meet customer needs

Customisation of product development and delivery

Service Quality transformation introduced.

Service Quality Department set up to centralise all quality

service units, maximising the strengths of service teams across

the Bank.

Enterprise Transformation Services

Humanising Financial Services Across Asia

Advise customers based on their

needs

Providing the people with access to

financing

Most extensive retail (386) and self-

service terminal (4611) network in

Malaysia

Largest virtual

banking presence

(55% market share)

via Maybank2u

Financial services

accessibility in rural areas

via mobile bus banking

and the only bank in 18

rural locations

Fair terms and pricing

Islamic financing as a driver

Promoting Islamic first

Being at the heart of community

User friendly facilities for physically

challenged customers

Maybank Global CSR Day (20 Nov 2010) where

Maybankers participated in group-wide

volunteerism

Ramps to ease access Automated sliding doors

Introduction

Financial Performance

Regional Expansion

Strategy and Achievements

Prospects

Malaysia: Sustained growth for 2011 -2012

25bp hikes in OPR in Mar, May, July 10 and May 11

OPR and SRR to remain unchanged at 3% and 4% respectively until end of 1H2012

Food & Non-Alcoholic Beverages

Utilities, Housing & Other Fuels

Transport (RHS)

CPI and components (% YoY)

Inflation expected to rise to 3.4% in 2011 (2010: 1.7%)

Aug CPI: +3.3% YoY

Growth to be sustained at 4.5% - 5% in 2011 & 3.5% - 4.5% in 2012 (2010: 7.2%)

Quarterly GDP and annual growth rateQ2 GDP: +4% YoY

Ringgit/USD: RM3.15 by end 2011 and RM3.05 by end 2012

RM3.18 per USD as at 26 Sep

Ringgit Malaysia per USD

Malaysia’s Banking Sector: Loans expected to moderate to 10% growth in 2012R

M b

illio

n

Total Loans grew 12.9% YoY for July 2011

RM

bill

ion

Total Deposits grew 11.3% YoY for July 2011

%

Capital Adequacy remains strong

14.3%

12.5%R

M b

illio

n

Gross NPL RM27.4b, Net NPL ratio: 1.99%

Domestic business activity is supported the government’s 10-year Economic Transformation Programme (ETP) under which the Entry Point Projects are gaining momentum.

55.7% of the 131 projects have been announced since October 2010, of which 57% have commenced implementation

In terms of investment value, 21.7% of the targetted RM794.5 billion have been committed.

Target:RM794.5 b

21.7% or RM171.2b of investment value has been committed since Oct 2010

Investment Value of EPPs

21.7%

Entry Point Projects (EPPs)

Target:131

Projects

73 Announced

(55.7%) Commenced,57%

Operational,26%

Work-inProgress, 16%

57% of the 73 projects announced have commenced

Top 10 Projects Announced

1.Mass Rapid Transit (RM36.6 b)

2.KL International Financial District (KLIFD) (RM26 b)

3.Exxon Mobil & Petronas Carigali’s Tapis Field & Telok gas development project Tapis Field (RM10 b)

4.Petronas’ Refinery and Petrochemical Integrated Development (RAPID)(RM 60 b)

5.Karambunai Integrated Resort City (KIRC) (RM 9.6 b)

6.Independent Deepwater Petroleum Terminal project in Pengerang(RM5 b)

7.Tanjung Agas Oil & Gas and Logistic Industrial Park (RM 3 b)

8.Berantai's Marginal Oil & Gas Fields development (RM 2.6 b)

9.AUO Sun Power's solar cell fabrication facility (RM 2.2 b)

10.University Malaya Health Metropolis (RM 1.3 b)

Beneficiary of government economic development initiatives

Priorities for the next 12 months

1. Grow loans and deposits with pricing discipline.

2. Reinforce community banking focus for distribution channels. Address fundamentals for SME to gear-up for growth.

3. Intensify client coverage collaboration with product partners, with regional responsibility.

4. Realise investment banking synergies between Maybank IBand Kim Eng.

5. Continue asset and network expansion in BII, fix WOM andgrow syariah banking business in Indonesia.

6. Grow insurance assets under management and build agency force.

7. Enhance service quality, customer experience and satisfaction.

8. Implement the Group IT Transformation.

9. Complete infrastructure and framework across multiple productsand countries.

10.Gear-up for Basel III requirement.

11.Brand Refresh for the Group.

Refreshing the Maybank brand

ProspectsGroup’s business momentum expected to remain robust despite challenging global

economic conditions and stiffer competition.

Economic growth supportive of loans growth in 3 home markets. Loans growth in

Malaysia expected to be 12%, led by corporate segment. Moderate pace expected

for retail segment, amid intense competition and the expectation of further

introduction of measures to reign in household debt levels

Loans growth in Indonesia expected to be strongest in the Group at 24%,

Singapore remains broad based but with moderate growth at 8%.

Interest margin pressure anticipated due to competition and benign interest rate

outlook.

Fee based income, particularly from Global Wholesale Banking business and the

regional investment banking platform of Maybank IB/Kim Eng.

Credit costs expected to rise with loans growth and stabilisation of FRS 139.

Healthy capital levels to be maintained by DRP and raising of capital instruments

whilst monitoring development and impact of Basel III.

Given global volatility, we will adopt a cautious approach and grow responsibly.

Key Performance Indicators (KPIs) for financial period ending 31 Dec 2011

Note: Loans growth for Singapore and BII are in local currency

51 Years

Of Growth

Thank you for your trust in us

Worldwide

in 17 Countries

RM412 billion

RM4.45 billion

42,000 Maybankers

2,100 Offices

> 21 million Customers

Total Assets

Profit After Tax

Human Capital

Global Network

Customers

Public Ownership

> 10.5 million Unit Holders

Thank You