Malayan Banking Berhad (Maybank) Q1 FY11 Analyst Briefing

• 1.FINANCIALRESULTS 1stQuarterFY2011ended30Sept2010 AnalystBriefing 12November2010

2. ExecutiveSummary FinancialPerformance B siness Re ie AdoptionofFRS139andBaselII BusinessReview CountryReview EconomicsandProspects 1 3. KeyHighlights PATAMI f 1Q11 16 6% Y Y d 12 7% Q Q t RM1 028 illi PATAMIfor1Q11grew16.6%YoYand12.7%QoQ toRM1,028million. YoY revenuegrowthwasmainlydrivenbyCorporateBanking(+14.0%),InternationalBanking (+7.8%)andInsurance&Takaful(+27.2%). YoY profitgrowthmainlycamefromCommunityFinancialServicesandCorporateBankingwhich recorded63.8%and21.5%growthrespectively. Sustainedconsumerloansgrowthof10.0%andinternationalloansgrowthat7.0%,contributedby 30% th t BII d 5% th t Si H G l b 2 2% li d30%growthatBIIand5%growthatSingapore.However,Grouploansgrewby2.2%annualised duetolargerepaymentofcorporateloans. FulladoptionofFRS139.Minimalimpactonequityof0.8%.Higherimpairmentratiosinlinewith the industrytheindustry. Lowerallowancesforlossonloansduetoimprovedbaddebtrecoveryandhigherspecific provisionsinthepreviouscorrespondingperiod. With d ti f B l II d RWCA F k it l i b t ith CAR* t 13 95% f WithadoptionofBaselIIunderRWCAFramework,capitalremainsrobustwithCAR*at13.95%for theBankand14.15%fortheGroup. Normalised ReturnonEquityof14.8%isontracktoachievefullyeartargetof14%. 2 *AssumingfullreinvestmentofelectableportionundertheDividendReinvestmentPlan 4. YTDKeyPerformanceIndicators(KPI)forFY2011 HeadlineKPIs Target 1Q11achievements ReturnonEquity 14% 14.8%(normalised) LoansandDebtSecuritiesGrowth 12% 4.6%annualised h hOthertargets Target 1Q11achievements LoansGrowth Malaysia 12% 0.1% Singapore 5% 5.0% BII 24% 30.0% Net Interest Margin Stable 2.75% (7 bps YoY) Note:LoansgrowthforSingaporeandBIIareinlocalcurrency NetInterestMargin Stable 2.75%( 7bpsYoY) DividendPayoutRatio 40%60% Dividendtobedeterminedin1H11 3 5. ExecutiveSummary FinancialPerformance B siness Re ie AdoptionofFRS139andBaselII BusinessReview CountryReview EconomicsandProspects 4 6. PATAMIrosetoRM1.03billionor16.6% Y Y Q Q RMmillion 1Q11 1Q10 YoY Change 4Q10 QoQ Change Netinterestincome 1,774.5 1,627.6 9.0% 1,792.2 1.0% IncomefromIslamicBanking 338.2 381.6 11.4% 355.7 4.9% Netincomefrominsurancebusiness 86.7 72.0 20.5% 168.5 48.5% Noninterestincome 1,008.2 990.1 1.8% 878.8 14.7% Netincome 3,207.6 3,071.3 4.4% 3,195.2 0.4% Overhead expenses (1 556 0) (1 490 9) 4 4% (1 536 5) 1 3%Overheadexpenses (1,556.0) (1,490.9) 4.4% (1,536.5) 1.3% OperatingProfitbefore allowancesforlossesonloans 1,651.6 1,580.4 4.5% 1,658.7 0.4% Allowanceforlossesonloans (264.7) (417.7) 36.6% (311.2) 14.9% Impairmentlossesonsecurities (13.9) (32.3) 56.8% (23.4) 40.6% OperatingProfit 1,373.0 1,130.4 21.5% 1,324.1 3.7% Shareofprofitsinassociates 31.3 25.8 21.5% 35.0 10.6% Profitbeforetaxationandzakat 1,404.3 1,156.2 21.5% 1,359.1 3.3%, , , Taxation&Zakat (350.7) 249.4 40.6% (384.1) 8.7% MinorityInterest (25.5) (25.0) 2.3% (62.5) 59.2% PATAMI 1,028.1 881.8 16.6% 912.5 12.7% 5 EPS 14.53sen 12.46sen 16.6% 12.89sen 12.7% 7. Normalised PBTfor1Q11grew14.1%YoY RM million 1Q11 1Q10 YoY Profitbeforetax(PBT) 1,404.3 1,156.2 21.5% Unrealised(Gains)/Lossesonderivatives (171.7) (84.5) ForexRealised/MTM(Gains)/Losses (37.8) (29.3) AmortisationonCoreDeposits(BII) 20.4 22.9p ( ) NormalisedPBT 1,215.2 1,065.3 14.1% 6 8. Loansgrewintandemwithdepositsgrowth DepositsgrowthLoansgrowthdrivenbyCFSandBIIthoughdomestically YoY growth Annualised growth 144.2 218.8 155.5 236.9 154.8 237.8 Malaysia Total RMbillion Sep10 Jun10 Sep09 Annualised growth YoY Growth Community Financial Services 105 7 104 4 94 5 4 9% 11 8% p g loanswereaffectedbychunkyrepayments +7.4% +8.7% growthgrowth 1.7% +1.5% 15.4 19.6 50.2 21.5 55.4 21.6 BII(Rupiah'bn) Singapore (SGD'm) Sep10 Jun10 Sep09 +28.7% Services 105.7 104.4 94.5 4.9% 11.8% Consumer 78.4 76.5 68.6 10.0% 14.3% Total Mortgage 35.2 34.6 32.0 7.7% 10.0% Auto Finance 23.3 22.8 20.8 10.1% 12.0% +10.3% +41.5% +2.83% 11.1 14.8 14.1OtherOversea& Subcos Credit Cards 4.2 4.1 3.7 4.5% 12.9% Unit Trust 14.2 13.7 10.6 16.7% 34.4% Other Retail Loan 1.5 1.4 1.5 16.7% -2.1% Commercial + SME 27.2 27.9 25.8 -9.2% 5.4% LoanstoDeposit ratio +26.2%21.0% 88 8% 89.3%Malaysia % % GWB (M'sia Ops) 40.1 41.4 39.4 -12.9% 1.7% Other Loans 0.2 0.2 0.1 25.7% 165.4% Total Domestic 146.0 146.0 134.0 -0.1% 8.9% Loans to Depositratio 87.3% 86.8% 87.3%Group 82.4% 92.1% 88.4%BII 87.9% 88.8% International 70.3 69.1 65.8 7.0% 6.9% Singapore (SGD mn) 17.8 17.5 16.6 5.0% 6.6% BII (Rupiah bn) 50.8 47.3 36.5 30.0% 39.1% Others 11.2 11.8 12.1 -17.9% -7.4% 84.0% 82.6% 82.6% Singapore 7 1Q10 4Q10 1Q11 Gross Loans 216.4 215.2 200.1 2.2% 8.2% 9. NonInterestIncomeincludinginsurancegrew3.1%YoY +3.1% (includinginsurance) +1.8% 1,095.01,062.1 990.1 1,008.2 639 7 million +2.4% 624.6 639.7 RMm +41.5% +32.8% +97.3%17 2% 20 5% 152.9 104.4 59.1 94.3 72.0216.3 138.7 48.9 186.1 86.8 17.2% +20.5% Totalnon interestincome Commission, servicecharges andfees ForeignExchange incomefrom customers Investment& TradingIncome OtherIncome Unrealised gain/(losses)on securities& derivatives Netincomefrom insurance business 1Q10 1Q11 8 10. Overheadswascontainedinlinewithincomegrowthat4.4%YoY +4.4%YoY 1,490.9 QoQ YoY P l t 12 0% 23 1% +1.3%QoQ 1,556.0 1,536.6 * 569.4 632.5 524.9 Personnelcosts 12.0% 23.1% ITExpenses 3.2% 10.1% MarketingExpenses 64.6% 28.0% Admin,generalexpenses & f & b k 17 0% 7 8% * 123 6 107.7 111.2121.2 53.0 87.3 &fees&brokerage 17.0% 7.8% Total 1.3% 4.4% illion *Personnelcostrose23.1YoY duetoincreaseinCOLA,higher bonusprovisionsandearliertimingofsalaryincrement. 743 3 832.7 123.6 Admin,generalexpenses&fees&brokerage k i RMmi 676.7 743.3 MarketingExpenses ITExpenses Personnelcosts 9 1Q10 4Q10 1Q11 11. Maybank Group:KeyRatios 4Q10 3Q10 2Q10 1Q10 NetInterestMargin 2.88% 2.76% 2.77% 2.82% ReturnonEquity(normalised) 14.5% 13.8% 14.3% 13.4% 1Q11 2.75% 14.8% FeetoIncomeRatio 35.2% 37.5% 38.4% 35.6% CosttoIncome 46.9% 47.8% 48.1% 48.5% Adj.CosttoIncome* 45.5% 49.7% 48.8% 48.4% LoantoDepositRatio 86.8% 84.8% 84.5% 87.3% 32.9% 48.5% 50.0% 87.3% AssetQuality GrossNPLRatio 4.70% 2.79% 2.90% 3.05% 3.26% 3.50% Net NPL Ratio 2.99% 1.20% 1.22% 1.36% 1.43% 1.60% PostFRS139PreFRS139 PreFRS139 NetNPLRatio 2.99% 1.20% 1.22% 1.36% 1.43% 1.60% LoanLossCoverage 84.1% 125.6% 124.5% 120.5% 117.8% 113.2% SP/Impairmentchargeoffrate(bps) 49 43 57 38 48 77 SP/Impairmentchargeoffrate(bps)(exc.BII) 37 31 31 33 36 65 Capital Adequacy (Group)CapitalAdequacy(Group) CoreCapitalRatio 11.48%** 10.70% 11.06% 10.67% 10.76% 10.43% RiskWeightedCapitalRatio 14.15%** 13.64% 14.67% 14.50% 14.61% 14.28% *AdjustedCosttoIncomeratio:OverheadExpensesisadjustedtoexcludeinsuranceclaims 10 **AfterBaselIIandfullelectableportiondividendtobereinvested 12. ExecutiveSummary FinancialPerformance B siness Re ie AdoptionofFRS139andBaselII BusinessReview CountryReview EconomicsandProspects 11 13. AdoptionoffullFRS139:minimalimpacttoshareholdersfunds As MaybankalignsitselfwithinternationalstandardsbyadoptingfullFRS139withminimalimpactto shareholdersfunds. 1July2010 As previously stated Effectof FRS139 Effectof FRS4 Asrestated ShareCapital 7,078 7,078 Reserves SharePremium 5,903 5,903 StatutoryReserve 5,554 5,554 CapitalReserve 15 15 UnrealisedHoldingReserve/(Deficit) 341 (48) 293 ExchangeFluctuationReserve (949) (949) RevaluationReserve 9 9 RetainedProfits 9,926 (172) 2 9,756 27,877 (220) 2 27,659 MinorityInterest 788 (6) 1 783 Total Equity 28,665 (226) 3 28,442 12 TotalEquity 28,665 (226) 3 28,442 14. AssetQuality:MorestringentmethodologyforFRS139 Themorerefinedandstringentmethodologyunder FRS139resultedinhigherimpairedloanratiothoughGP3 112.87% 113.21% 117.79% 120.49% 124.52% 125.59% 87.58% 84.13% PostFRS139. Loan loss coverage provisioning continuestoshowimprovement PreFRS139. 2.83% 2.99% 3.46% 3.50% 3.27% 3.07% 2.89% 2.79% 4.63% 4.70% Loanlosscoverage GrossImpairedLoanRatio NetImpairedLoanRatio 9.96 10.12 1.64% 1.60% 1.43% 1.36% 1.22% 1.20% 6.72 6.96 6.67 6.31 6.19 6.02 RMbillion 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 Day1 1Jul10 1Q11 30Sep 13 10GrossNPL/ImpairedLoans 15. FulladoptionofBaselIIRWCAFramework MaybanksadoptionofBaselIIRiskWeightedCapitalAdequacy(RWCA)Frameworkbrings itinlinewithregionalpeers. UnderBaselII,RiskWeightedAssets(RWA)increasedduetoinclusionofOperationalRWA ofRM22.0billionbutmitigatedbydecreaseinCreditRWAbyRM38.9billion. Reductionincapitalwasduetodifferenttreatmentofcapitalcomputationandprovision C i l Ad i h B l II d i h h d li d i i i h h CapitalAdequacywithBaselIIadoption,thoughdeclined,remainspromisingwhenthe transitionperiodends. Group Bank Jun10 Sep10 Sep10 Jun10 Sep10 Sep10 BaselI BaselI BaselII BaselI BaselI BaselII Corecapitalratio,assuming: fullelectableportionpaidincash 10.10% 9.84% 10.56% 13.78% 12.90% 12.80% fullelectableportionreinvested 10.97% 10.70% 11.48% 14.91% 14.01% 13.95% Riskweightedcapitalratio,assuming: fullelectableportionpaidincash 13.71% 12.79% 13.23% 13.78% 12.90% 12.80% fullelectableportionreinvested 14.58% 13.64% 14.15% 14.91% 14.01% 13.95% 14 16. ExecutiveSummary FinancialPerformance B siness Re ie AdoptionofFRS139andBaselII BusinessReview CountryReview EconomicsandProspects 15 17. StrongperformanceinCFSandGWBscorporatebankingsegments Global Wholesale Banking (GWB) 3,071 3,208 1QFY10 1QFY11 Mmillion) 5.2% 4.4% GlobalWholesaleBanking(GWB) 1,480 210 411 68 891 147 1,403 240 420 45 961 187 Revenue(RM 27.2%14.0% 2.2% 34.2% 7.8% 64.8% 68 147 136 240 420 45 187 48 Total Community FinancialServices (CFS) CorporateBanking GlobalMarket InvestmentBanking International Banking Insurance,Takaful &Asset Management HeadOffice& Others million) 21 5% 1,156 1,404 ( ) g oretax(RMm 63.8% 4.3% 10.3% 21.5% 331 135 354 59 324 80 126 542 164 369 7 290 79 48 1.1% Profitbefo 21.5% 4.3% 88.1% 10.3% 61.9% 16 Total Community FinancialServices CorporateBanking GlobalMarket InvestmentBanking International Banking Insurance,Takaful &Asset Management HeadOffice& Others 18. CommunityFinancialServices:MortgageLoansandHirePurchase GrowthinmortgageloansremainsaboveRM500million Mortgage Loans: Improving Asset Quality 7.6% 7.4% 6.9% 6.3% 5.4% 5.0% 556.8 855.3 888.2 783.2 665.8 g g MortgageLoans:ImprovingAssetQuality 256.4 RMmillion 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 GrossNPL 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 HirePurchase:AssetQualityremainslowGrowthinHPloansremainsaboveRM500million 631.3 569.0 559.6 782.1 601.0 581.2 0.7% 0.8% 0.9% 0.8% 0.6% 0.7% RMmillion 17 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 GrossNPL 19. GainingMarketShare CardGrowthaboveindustry CommunityFinancialServices:Cardscontinuestogainmarketshare Sep10 Sep09 Cardbase 16.6% 15.2% Billings 22.3% 21.5% YoY Maybank Industry* Cardbase 13.7% 21.1% Billings 18.0% 13.2% Card base excludes Debit cards Billings 22.3% 21.5% Receivables 14.2% 14.2% MerchantSales 29.7% 28.6% Billings 18.0% 13.2% Receivables 12.9% 12.8% MerchantSales 14.3% 9.9% Industry figures for cards includes commercial banks and non FI players CardbaseexcludesDebitcards MerchantandBillingsconsistoftransactionsdonethrough Credit,ChargeandDebitcards CardsReceivables IndustryfiguresforcardsincludescommercialbanksandnonFIplayers +12.9% YoY 3.70 3.87 3.90 4.13 4.18 3 4 5 12.9%YoY +4.8%annualised llion 1 2 3 RMbil 18 0 1Q10 2Q10 3Q10 4Q10 1Q11 20. GWBgrossloansaffectedbychunkyrepayments GWBgrossloansdeclinedby12.9%annualised duetochunkyrepayments 6,726 12 729 6,650 TradeFinance 4.5% 12,222 20,729 12,729 T L & O d ft ShortTermRevolvingCredit 16.6% 31 4% 22,495 5,000 10,000 15,000 20,000 25,000 TermLoan&Overdraft 31.4% RMmillion Sep10 Jun10 19 21. GlobalMarketsperformanceboostedbytradingactivities Growth in Revenue CreditRatingforPrivateDebtSecuritiesinMalaysia AAA 36% AandBelow GrowthinRevenue 2.2% 411.4 420.4 n AAtoAA 3 % 33% RMmillion 31% GroupSecuritiesPortfoliogrew33.8%annualised 1Q10 1Q11 Revenue GrowthinPBT (Total = RM58 8 billion as at 30 Sep 10) 354.1 369.7 4.4% on +34.4% +33.0% 30.0 32.6 24.1 26.1 (Total=RM58.8billionasat30Sep10) 1Q10 1Q11 RMbillion RMmilli 20 1Q10 1Q11 PBT Jun10 Sep10 GovernmentSecurities PrivateDebtSecurities 22. BrokerageactivitiescontributedmajorityofIBincome FeebasedIncome 1Q11FeebasedIncomeSegmentationQ g 107 3 196.2 52.6 FY09 FY10 1QFY11 Arrangers'Fees Corporate AdvisoryFees 10% Underwriting/ PlacementFees 18% 97.9 198.3 107.3 FY07 FY08 FY09 Agency/ GuaranteeFees 1% 8% BrokerageFee 53% 54 0 50 100 150 200 250 FY06 Miscellaneous FeeIncome 10% RMmillion IndustryPosition&MarketShares:July10 Sept10 rg IndustryRank TotalValue(bil) Deals/Issues MarketShare M&A 3 RM12.28 6 25.1% Source:Bloomber Equity&RightsOfferings 2 RM2.16 8 20.6% DebtMarkets MalaysiaDomesticBonds 2 RM2.58 14 19.8% DebtMarkets MalaysianRinggitIslamicBonds 2 RM2.50 10 26.9% 21 EquityBrokerage 5 6.7%ofBursa TradingValue n.a 6.7% 23. Etiqa maintainspolepositioninLife/FamilyandGeneral MarketShare:No.1inLife/Family(newbusiness) MarketShare:No.1inGeneral 9.3% 10.8% AllianzGeneral Etiqa 13.2% 20.9% INGInsurance Etiqa 5.1% 6.3% 7.3% TokioMarine MSIG Kurnia 5.2% 10.9% 11.4% MAA GreatEasternLife Prudential 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% OverallLossRatioLowerThanIndustry 45 2% (Maybank) vs 60 5% (Industry) Source:ISMReport CombinedGrossPremium Industry 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% SinglePremium CreditPremium RegularPremium CombinedGrossPremium 45.2%(Maybank)vs 60.5%(Industry) 79.2% 70.4% 66.6% 75.8% 50.7% Motor -0.9% -76.8% -0.2% 48.3% 41.3% Misc. y 60.5% 79.4% 45 0% +62% 15 1% 32.0% 21 0% 9.3% 29.4% Fire Fire Motor TotalLife/Family 1Q11 1Q10 +17.7% 76.8% 41.0% 43.3% 45.3% 8.4% 7.3% 6.4% 20.3% 281.7% MAT 45.0% 21.1% 26.6% +5.2% 10 9% -5.7% 22 15.1% 21.0% 1Q10 2Q10 3Q10 4Q10 1Q110 200 400 600 800 1000 TotalGeneral +10.9% 24. Maybank Islamicmaintainsstrongfinancinggrowthof25.8%YoY MaybankIslamicfinancing(25.8%YoY growth)IncomeandPBT +12 3% 465.7 483.9 508.0 11.4 12.4 5 5 12.8 5.7 5 7 y g ( g ) +5.6% +147.8% +83.3% +3.1% +21.9% +12.3% +9%YoY +167%YoY +5%QoQ million 73.1 150.0 195.3 5.4 2.3 1.2 3.2 3.2 5.5 1.2 2.1 3.0 4.4 5.7 2.2 3.3 3.9 AITAB(Auto) House Term CashLinei Trade Term +30%QoQ RMm 1Q10 4Q10 1Q11 GrossAttributableIncome PBTandzakat ( ) Financing Financing Financing Financing 1Q10 4Q10 1Q11 L di k h (b T l A )I i k i f M b k I l i Consumer:+27%YoY Business:+24%YoY 1Q11 4Q10 1Q10 Financing to Deposits Ratio 96.6% 96.6% 112.0% MaybankIslamic, 17%EONCap Alliance Islamic,2% Others,17% Leadingmarketshare(byTotalAssets)ImprovingkeyratiosforMaybankIslamic TotalAssetsasatSep10RM45.4billion(+8.2%annualised) FinancingtoDepositsRatio 96.6% 96.6% 112.0% IslamicFinancingto TotalDomesticLoans 24.7% 24.0% 21.8% CIMBIslamic,14% BankIslam,12% PublicIslamic, 10% Am Islamic,7% RHB Islamic 4% HongLeong Islamic,4% KuwaitFinance House,4% Islamic,3% 23 BankMuamalat, 6% RHBIslamic,4% 25. ExecutiveSummary FinancialPerformance B siness Re ie AdoptionofFRS139andBaselII BusinessReview CountryReview EconomicsandProspects 24 26. RevenueandPBTrose5.2%and9.4%YoY respectively DiversifiedLoanPortfolio +6 6% YoY Singapore:PBTimproved3.6%onhigherincomeandlowerprovision 3 3 3 3 4.2 4.4 4.6 Others CarLoans 16.65 17.54 17.75150.4 158.2 84 1 +5.2% +3.6% +6.6%YoY +5.0%annualised llion 3.2 3.6 3.7 1.8 2.2 2.1 4.2 4.1 4.0 3.3 3.3 3.3 HousingLoans GeneralCommerce 81.2 84.1 Revenue PBT SGDmil SGDbillion 1Q10 4Q10 1Q11 Building& Construction 1 01% LoansGrowthvs IndustryAssetQualityimproving 1Q10 1Q11 1.01% 0.93% 0.77% 0.75% 0.63% 0.58% 32.0% 18.4% 23.4% 4.97% 8.6% 6 6% 13.6% 16.2% 30.6% 11.4% 11.9% 0.16% 0.10% 0.09% 0.07% 0.09% 0.07% 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 8.6% 6.6% -1.38% Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Sep-10 25 GrossNPLratio NetNPLratio Maybank Singapore Growth Industry Growth 27. BankInternasional Indonesia I St t tIncomeStatement Rp Billion Jul 10-Sept 10 Jul 09-Sept 09 Interest income 1 688 1 474Interest income 1,688 1,474 Interest expense (739) (721) Net interest income 949 753 Non-interest income 512 439Non interest income 512 439 Gross Operating income 1,461 1,192 Operating expenses (excluding prov.) (984) (869) Operating income before provision 477 323p g p Provisions (393) (251) Profit before taxation and zakat 84 72 Note: BasedonincomestatementconsolidatedintoGroupaccounts. 26 28. BankInternasionalIndonesia RevenueandPBT Net Interest Margin+22 6% NetInterestMargin 6.85% 6.15% 6.10% 6.09% 6.62% 6.05%5.90% 1,192 1,461 Revenue PBT +22.6% hbillion 5.91% 72 84 +16.7 Rupiah LoantoDepositRatio 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 GrossLoans:Composition(Rp trillion)andgrowth (+38%)17.7 YoY 1Q10 1Q11 89 3% 89.9% 91.3% (+45%) (+36%) 8.9 9.6 12.0 12.8 14.4 12.2 13.0 17.6 86.6% 89.3% 82.4% 82.4% 82.9% 85.4% (+20%) (+33%) (+32%)2.3 2.1 3.0 0.50.40.4 Sep09 Dec09 Sep10 Corporate SMEC Consumer Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 27 Corporate SMEC Consumer Syariah Subsidiaries Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 29. BankInternasionalIndonesia AssetQualityBranches and ATM 430 740 745 743 748 787 806 844 893 Branches ATM+CDM Q yBranchesandATM 3.20% 3.46% 3.50% 2 79% 2.88% 3.52% 4.74% PSAK50&55 249 252 255 255 255 260 274 295 370 430 S S 2.00% 2.79% 1.85% 1.87% 1.56% 1.92% 1.87% 1.97% 2.39% 2.79% 2.88% Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 ` Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Jun 11 Jun 12 Projected Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Net NPL Gross NPL CapitalAdequacy:bankonly ( dit & k t i k) CosttoIncomeRatio (credit&marketrisk) 19.44% 20.20% 19.73% 19.04% 14 71% 14 39% 15.57% 14 35% 66.7% 63.9% 14.71% 14.39% 15.57% 14.35% 28 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Sep09 Sep10 30. BankInternasionalIndonesia:WOMFinance MonthlySalesVolumeRevenueandPBT 42 1 45.6 44.5 52.8 55.7 54.2 56.9 61.0 63.8 51.1 50.0 60.0 70.0 y Thousandsofunits on 323 407 300 350 400 450 +26.0% 36.1 40.9 36.8 42.1 10 0 20.0 30.0 40.0 RupiahBillio 35 59100 150 200 250 300 TotalRevenue ProfitBeforeTax +68.6% 0.0 10.0 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 Apr10 May10 Jun10 Jul10 Aug10 Sep10 A Q li D f lt R t ( 90 d ) 35 50 1Q10 1Q11 AssetQuality DefaultRate(>90days) 14.0% 11.8% 5.50% PSAK50&55 5.8% 6.7% 7.1% DefaultRate 2.96% 1.94% 1.83% 1.85% 3.43% 1.31% 1.06% 1.17% 0.73% GrossNPL NetNPL 29 3Q09 4Q09 1Q10 2Q10 3Q103Q09 4Q09 1Q10 2Q10 3Q10 31. +11 5% MCBBank:FinancialHighlights RevenueandPBT 9.8 10.9 6 0 7.2 +11.5% +20.3 llion YTD YTD6.0 Revenue PBT PKRbi Key Ratios YTD Sept 10 YTD Sept 09 ROA 3.2% 3.5% ROE 26 0% 28 3% % 1Q10 1Q11 LoansandDeposits ROE 26.0% 28.3% Cost to Income Ratio 56.1% 51.4% Loan-Deposit Ratio 58.5% 69.9% 253.2 246.9 362.1 422.3 Gross loans 2.5% +16.6% billion NPL Ratio 9.7% 8.6% Net Interest Margin 7.7% 7.9% Capital Adequacy Ratio 23.2% 20.6% Grossloans Deposits PKR 30 Sep09 Sep10 32. ExecutiveSummary FinancialPerformance B siness Re ie AdoptionofFRS139andBaselII BusinessReview CountryReview EconomicsandProspects 31 33. Malaysia:EconomicRebound Inflationexpectedtoriseto1.7%in2010(2011:2.5%)2010GDPrevisedupwardto7.5%;6.1% in2011 5 10 15 20 25 8 10 12 14 Transport (RHS) 3 6 9 12 130 140 150 CPIandcomponents(%YoY)QuarterlyGDPandannualgrowthrate p ; (25) (20) (15) (10) (5) 0 0 2 4 6 8 Utilities, Housing & Other Fuels Food & Non-AlcoholicBeverages (9) (6) (3) 0 90 100 110 120 6 6 6 7 7 7 7 8 8 8 8 9 9 9 9 0 0 (25)0 Jun-02 Nov-02 Apr-03 Sep-03 Feb-04 Jul-04 Dec-04 May-05 Oct-05 Mar-06 Aug-06 Jan-07 Jun-07 Nov-07 Apr-08 Sep-08 Feb-09 Jul-09 Dec-09 May-10 3.90 4.0 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 RMb (LHS) % YoY (RHS) % QoQ (RHS) AfterJuly8hiketo2.75%,interestrateisnotexpectedtorise until2Q11 RinggitstabilisingatRM3.103.15byyearend 3 40 3.50 3.60 3.70 3.80 2 0 2.5 3.0 3.5 Overnight Policy Rate: Bank Negara Malaysia RinggitMalaysiaperUSD 25bphikes inMar,May andJuly10 3.00 3.10 3.20 3.30 3.40 0.5 1.0 1.5 2.0 4 4 4 5 5 5 6 6 6 7 7 7 8 8 8 9 9 9 0 0 Overnight Policy Rate: Bank Negara MalaysiaOvernightPolicyRate 32 Aug-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 Apr-04 Aug-04 Dec-04 Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 34. Total Loans grew 11 9% YoY for Sep 2010 TotalDepositsgrew8.9%YoY forSep2010 Malaysia:BankingSector 12% 14% 16% 18% 760 810 860 910 TotalLoansgrew11.9%YoY forSep2010 20.0% 25.0% 1050 1100 1150 TotalDeposits TotalDepositsYoYGrowth p g p on n 4% 6% 8% 10% 610 660 710 760 Total Loans Total Loans YoY Growth Household YoY Growth Business YoY Growth 5.0% 10.0% 15.0% 800 850 900 950 1000 RMbillio RMbillion 2%560 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Business YoY Growth 0.0%750 Jan07 Apr07 Jul07 Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Gross NPL RM29b Gross NPL ratio: 2 0% 4% 4% 5% 5% 45 50 55 NPL3Months(LHS) NetNPLratio 13 14 15 16 14.8% CapitalAdequacyremainsstrong 13 1% GrossNPLRM29b,GrossNPLratio:2.0% ion 0% 1% 1% 2% 2% 3% 3% 20 25 30 35 40 6 7 8 9 10 11 12 Risk Weighted Capital Ratio Core Capital Ratio 13.1% RMbill % 33 0%20 Jan07 Apr07 Jul07 Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 6 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 35. EconomicTransformationPlan(ETP):Bankstobenefit Bankstobenefitfromthefilteringdownofalargerdomesticeconomicactivity base PotentialloanbaseofRM1.29trillionbasedonRM1.4trillioninvestment requirementundertheETP(20112020) Ofwhich92%istargetedtocomefromtheprivatesector(8%frompublic sector) Accelerate private pensions Bankstoalsobenefitindirectlyfromenlargedactivitiesunderthe10EntryPoint Projects(EPP)forFinancialServicesNKEA: Revitalise equity markets Accelerateprivatepensions Spurgrowthofwealth management Kick start and sustain an asset Revitalise equitymarkets Deepenandbroadenbondmarkets Transformdevelopmentfinancial institutions Kickstartandsustainanasset managementindustry Createregionalchampions Global Islamic financial hub institutions Createintegratedpayment ecosystem Insuring our population 34 GlobalIslamicfinancialhub Insuringourpopulation 36. Prospects Bankingsectorprospectsremainpositive,supportedbyimprovedconsumerandbusiness sentimentonthebackofsustainedeconomicgrowth,forecastat7.5%in2010and6.1%in2011. Competitioninthefinancialservicesindustryisintensifying,drivenbystrongdomesticplayers, new entries and further liberalisation of the banking sectornewentries,andfurtherliberalisation ofthebankingsector. WithfocusonitsthreekeyhomemarketsofMalaysia,SingaporeandIndonesiaandthroughits realignedorganisation structure,focusingonthreekeybusinesspillarsofCommunityFinancial Services(CFS),GlobalWholesaleBanking(GWB)andInsuranceandTakaful,growthinloansand debtsecuritiesisexpectedtogainmomentumtowardsmeetingthetargetof12%forFY2011. NosignificantimpactfromnewBankNegaracaponLoantoValueformortgagessinceMaybanks focushasbeenonfirsttimehomeowners,upgradersandforownoccupation. Maybankwillcontinuetofocusonimprovingassetqualityandloweringcreditcostaswellas investinpeople,technologyandprocesses CapitalandriskmanagementcontinuouslybeingenhancedtomeetmorestringentBaselII requirements Under the new Basel III capital requirements Maybank would be able to meet therequirements.UnderthenewBaselIIIcapitalrequirements,Maybankwouldbeabletomeetthe minimumCoreEquityRatioof7.0%withouttheneedtoraiseequitycapitalapartfromthe DividendReinvestmentPlan. Barringunforeseencircumstances,theGroupisexpectedtoperformbetterthantheprevious f l d k ( ) f 35 financialyearandisontracktomeetitstargetReturnonEquity(ROE)of14% 37. Thank YouThankYou 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 partThe 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. Khairussaleh Ramli ChiefFinancialOfficer Contact:(6)0320744288 Email:khairul@maybank.com.my MALAYANBANKINGBERHAD 14thFloor,Menara Maybank 100,Jalan Tun Perak 50050KualaLumpur,Malaysia Tel:(6)0320708833 Hazimi Kassim Head,StrategyandCorporateFinance Contact:(6)0320748101 Email:hazimik@maybank.com.my RajaIndraPutra Head,InvestorRelations Contact:(6)0320748582 Email:rajaindra@maybank.com.my 36 www.maybank.com