Maybank 1HFY12 Analyst Presentation (Malayan Banking Berhad)

0

Investor PresentationFinancial ResultsFirst Half FY2012 ended 30 June 2012

16 August 2012

www.maybank.com

1

Investor Presentation

Executive Summary

Financial Performance

Business Sector Review

Country Review

Economic Update and Prospects

Financial Results: First Half FY2012 ended 30 June 2012

2

Key Highlights: Continued profit growth

Continued revenue and profit growth for 1H FY12Revenue grew 18.0% YoY to RM8.2 billion due to 22.3% growth in fee-based income while fund based income rose 15.2%PATAMI grew 21.2% YoY to RM2.78 billion; 2Q FY12 PATAMI grew 24.5% YoY to RM1.44 billion

Strong growth in both domestic and international operationsPBT rose by RM616.3 million (+18.7%) YoY mainly due to growth in Global Wholesale Banking (+42.3%) and International (+54.5%)On annualised basis, Group’s gross loans grew 15.0%, driven by 15.8% loan growth in Malaysia(Corporate: 24.4%; Consumer: 13.1%) and 12.3% loans growth in International markets (BII: 18.8%)Islamic Banking PBT rose 50.9% on the back of 110% rise in fee based income and 14% annualisedfinancing growth

Strong Financial PositionAsset Quality continued to improve with Gross and Net Impaired Loans ratio declining to 2.00%(June 2011: 3.34%) and 1.28% (June 2011: 2.25%) respectively as at June 2012Liquidity improved with Group Loan to Deposit ratio declining to 86.9% from 90.1% in June 2011Group shareholders’ funds of RM36.6 billion; total assets of RM492.3 billionCapital Adequacy Ratio of 15.49 % (assuming a 85% DRP reinvestment rate)

Exceeded ROE target for FY2012Annualised ROE of 16.1% exceeded the target of 15.6% while Loans and Debt Securities growthwas 13.8% against 15.2% target

Interim dividend payout ratio of 67.9%Proposed interim dividend of 32 sen per share less 25% taxDividend consists of 4 sen cash portion and 28 sen electable portion for the Dividend Reinvestment Plan

3

FY2012Target 1H FY12 *

Headline KPIs

Return on Equity 15.6% 16.1%

Loans and Debt Securities Growth 15.2% 13.8%

Other targets

Group Loans Growth 16.2% 15.0%

• Malaysia 13.6% 15.8%

• Singapore ** 11.4% 4.9%

• Indonesia** 20.9% 18.8%

Group Deposits Growth 12.3% 16.9%

Key Performance Indicators for 1H FY12

* Annualised

** Loans growth in local currencies

4


Executive Summary



Country Review



5

2Q FY12 PATAMI rose 6.7% QoQ to RM1.44 billion with an EPS of 18.64 sen

Net interest income 2,106.3 2,020.7 4.2% 1,826.7 15.3%Net Fund based income (Islamic Banking) 441.2 375.6 17.5% 365.4 20.8%Total net fund based income 2,547.5 2,396.3 6.3% 2,192.1 16.2%Net income from insurance and takaful * 169.7 87.2 94.5% 345.4 -50.9%Non-interest income 1,344.3 1,408.0 -4.5% 1,196.7 12.3%Fee based income (Islamic Banking) 125.6 159.2 -21.1% 77.6 61.8%Total fee-based income 1,639.6 1,654.5 -0.9% 1,619.7 1.2%Net income 4,187.1 4,050.8 3.4% 3,811.8 9.8%Overhead expenses (1,982.3) (1,994.8) -0.6% (1,962.1) 1.0%

Operating Profit before allowances for losses on loans

2,204.8 2,056.0 7.2% 1,849.7 19.2%

Allowance for losses on loans (199.4) (195.9) 1.8% (47.7) 317.9%Impairment losses on securities, net (27.3) (0.5) 5697.7% (114.0) -76.1%Operating Profit 1,978.1 1,859.6 6.4% 1,688.0 17.2%Share of profits in associates 47.7 35.0 36.4% 40.5 17.8%Profit before taxation and zakat 2,025.8 1,894.6 6.9% 1,728.5 17.2%Taxation & Zakat (546.2) (528.9) 3.3% (475.3) 14.9%Minority Interest (42.1) (18.8) 124.1% (98.9) -57.4%

Profit after Tax and Minority Interest (PATAMI)

1,437.5 1,346.9 6.7% 1,154.3 24.5%

EPS (sen) 18.64 17.63 5.7% 15.54 19.9%

RM million 2Q FY12Jun 2012

1Q FY12Mar 2012

4Q FY11Jun 2011

Quarter

QoQ Change

YoY Change

* Net of insurance claims

6

1H FY12 PATAMI grew 21.2% YoY to RM 2.78 billion, supported by an 18.0% YoYincrease in net income

Net interest income 4,127.0 3,598.2 14.7%Net Fund based income (Islamic Banking) 816.9 695.4 17.5%Total net fund based income 4,943.9 4,293.6 15.2%Net income from insurance and takaful * 256.9 429.5 -40.2%Non-interest income 2,752.3 2,125.5 29.5%Fee based income (Islamic Banking) 284.8 135.4 110.3%Total fee-based income 3,294.0 2,690.4 22.3%Net income 8,237.9 6,984.0 18.0%Overhead expenses (3,977.1) (3,516.1) 13.1%

Operating Profit before allowances forlosses on loans

4,260.8 3,467.9 22.9%

Allowance for losses on loans (395.3) (119.9) 229.7%Impairment losses on securities, net (27.7) (109.7) -74.7%Operating Profit 3,837.7 3,238.3 18.5%Share of profits in associates 82.7 65.8 25.6%Profit before taxation and zakat 3,920.4 3,304.1 18.7%Taxation & Zakat (1,075.1) (864.6) 24.3%Minority Interest (60.9) (142.6) -57.3%

Profit after Tax and Minority Interest(PATAMI)

2,784.4 2,296.9 21.2%

EPS (sen) 36.28 31.15 16.5%

RM million YoY Change

Half Year

1H FY12Jun 2012

2H FY11Jun 2011

* Net of insurance claimsNote:Contribution of Kim Eng Holding for 1H FY12 is for 6 months whereas 2H FY11 is for 2 months (Maybank

completed the acquisition of KEH Group in May 2011)

7

Strong Balance Sheet: Total Assets grew 17.4% annualised, LDR improved to 86.9%

RM billion30 Jun 2012

31 Dec 2011 (restated)*

Annualised Growth

1 Jul 2011 (restated)*

YoY Growth

Cash and short-term funds 60.3 49.1 45.9% 38.8 55.5%

Deposits with financial institutions 8.6 6.5 66.9% 10.3 -16.3%

Securities purchased under resale agreements 1.8 1.4 54.5% - -

Securities portfolio 70.9 68.3 7.8% 61.2 15.9%

Loans, advances and financing 295.7 274.4 15.5% 254.0 16.4%

Statutory Deposits with Central Banks 11.7 10.6 21.7% 7.7 52.3%

Life, general takaful and family takaful fund assets 20.1 19.9 2.0% 19.2 4.7%

Other assets 23.2 22.7 3.9% 22.3 3.7%

Total Assets 492.3 452.8 17.4% 413.5 19.1%Deposits from customers 340.3 313.7 16.9% 282.0 20.7%

Deposits and placements of banks and FI 43.0 36.8 34.1% 33.3 29.2%

Borrowings 10.6 7.2 95.2% 5.4 94.7%

Subordinated debts 13.9 14.2 -4.1% 10.8 28.5%

Capital Securities 6.1 6.1 1.1% 6.1 0.5%

Insurance & Takaful liabilities & policyholders' funds 20.1 19.9 2.0% 19.2 4.7%

Other liabilities 20.1 19.1 10.1% 23.0 -12.6%

Total Liabilities 454.1 417.0 17.8% 379.8 19.6%Shareholders Funds 36.6 34.3 13.2% 32.3 13.3%

Non-controlling interest 1.6 1.6 7.8% 1.3 20.7%

Total Liabilities & Equity 492.3 452.8 17.4% 413.5 19.1%Loan-to-Deposit Ratio 86.9% 87.5% 90.1%

* Adoption of MFRS1 with effect from 1 July 2011 resulting in changes on securities portfolio, other assets, other liabilities and shareholders funds

8

Gross loans grew 15.0% annualised (16.2% YoY), led by a 15.8% growth in domestic markets and 12.3% growth in international markets

9

87.4%86.8%

88.4%

90.1%

87.5%87.2%

86.9%

Jun 09

Jun 10

Dec 10

Jun 11

Dec 11

Mar 12

Jun 12

80.9%

91.3%

90.7%88.1%

93.9%

95.4%

94.3%

Jun 09

Jun 10

Dec 10

Jun 11

Dec 11

Mar 12

Jun 12

89.2%88.8%

88.9% 87.7%

82.6%

83.9%

81.6%

Jun 09

Jun 10

Dec 10

Jun 11

Dec 11

Mar 12

Jun 12

86.3%

81.2%

87.5%

96.4% 92.5%

86.6%89.4%

Jun 09

Jun 10

Dec 10

Jun 11

Dec 11

Mar 12

Jun 12

Malaysia Singapore BII Group

RM bil AnnualisedGrowth

YoYGrowth SGD bil Annualised

GrowthYoY

Growth Rp tril AnnualisedGrowth

YoYGrowth RM bil Annualised

GrowthYoY

Growth

Savings Deposits 35.0 12.9% 11.7% 3.1 13.7% 13.4% 16.0 -18.9% 9.0% 48.9 8.2% 11.0%

Current Accounts 50.6 12.8% 7.6% 2.9 7.9% 17.1% 13.5 17.5% 11.4% 63.6 17.8% 9.3%

Fixed Deposits 111.3 15.9% 33.9% 21.4 12.2% 25.6% 47.3 33.8% 20.5% 193.6 13.6% 26.9%

Others 32.3 57.1% 26.6% 0.6 14.6% 52.1% - - - 33.7 55.2% 27.6%

Total Deposits 230.0 19.6% 22.5% 28.1 12.0% 23.6% 76.7 17.8% 16.3% 340.3 16.9% 20.7%

Malaysia Singapore BII Group

Low cost funds (CASA) ratio 37.2% 21.6% 38.4% 33.1%Loan-to-Deposit Ratio 81.6% 89.4% 94.3% 86.9%

Deposits grew 16.9% annualised (20.7% YoY), driven mainly by growth in Malaysiaof 19.6% (22.5% YoY)

Loans-to-Deposit RatioMalaysia Singapore BII Group

10

72.247.7

98.7

230.3195.9 199.4

119.9

395.3

3Q FY11 Mar 11

4Q FY11 Jun 11

1Q FP11 Sep 11

2Q FP11 Dec 11

1Q FY12 Mar 12

2Q FY12 Jun 12

2H FY11 Jun 11

1H FY12 Jun 12

Asset Quality continues to improve with net charge off rate for 1H FY12 at 28bps

Impaired Loans RatioAllowance for losses on loans

+1.8 %QoQ

+317.9%YoY

+229.7%YoY

2.83%2.99%

2.74%

2.39%2.25% 2.18%

1.86%1.57%

1.28%

4.60%4.67%

4.20%3.67%

3.34%

3.23%2.84%

2.44%

2.00%

1 Jul 10Day 1

Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12

Net Impaired Loans Ratio

Gross Impaired Loans ratio

11

2,126

1,440

86 (68)

486

182 430

135

2,752

1,790

278 59

430 195

257 284

Total non-interest income

Commission, service charges

and fees

Investment & Trading Income

Unrealised gain/(losses) on

securities & derivatives

Foreign Exchange profit

Other Income Net incomefrom Insurance

Business

Fee income from Islamic

Operations

2H FY11 ended Jun 2011 1H FY12 ended Jun 2012

Group Fee-based Income increased 22.3% YoY to RM3.29 billion*. Excluding Kim Eng it increased 17.3% YoY.

+24.3%

-40.2%+223.8% +186.7% +110.3%+7.5%

RM m

illio

n

+29.5%

-11.5%

Note: Contribution of Kim Eng Holding for 1H FY12 is for 6 months whereas 2H FY11 is for 2 months (Maybank completed the acquisition of KEH Group in May 2011)* Includes net income from insurance business & fee income from Islamic operations

Excluding Kim Eng Holdings1H FY12 2,459 24.6% 1,560 18.5% 243 207.9% 52 214.3% 429 -10.7% 176 22.8% 234 -45.5% 284 110.4%2H FY11 1,973 1,316 79 (45) 480 143 430 135

12

863 1,034 1,025 1,072 1,121 1,173 1,897

2,294 115

161 132 141 130 132

277 262

135 132 97 143 108 124

267 232

441 635 634 698 635 554

1,075 1,189

3Q FY11 Mar 11

4Q FY11 Jun 11

1Q FP11 Sep 11

2Q FP11 Dec 11

1Q FY12 Mar 12

2Q FY12 Jun 12

2H FY11 Jun 11

1H FY12 Jun 12

Admin, general expenses, fees, brokerage & establishment costs

Marketing Expenses

IT Expenses

Personnel costs

Improved operating efficiency resulted in lower cost to income ratio of 47.8%RM

mill

ion

1,554

-0.6% QoQ

+1.0% YoY

2,054 1,995 1,982

+13.1% YoY

1,962

3,5163,977

1,888

# Contribution of Kim Eng Holdings for 1H FY12 is for 6 months whereas 2H FY11 is for 2 months (Maybank completed the acquisition of KEH Group in May 2011)

# #

QoQ YoYQoQ

(exc. Kim Eng)YoY

(exc. Kim Eng)YoY

YoY(exc. Kim Eng)

Personnel costs 4.7% 13.4% 4.0% 9.5% 20.9% 15.0%

IT Expenses 0.9% -18.4% 1.6% -21.2% -5.4% -10.2%

Marketing Expenses 14.2% -6.2% 13.4% -6.5% -13.2% -14.5%

Admin, general expenses, fees,

brokerage & establishment costs -12.7% -12.7% -15.0% -9.9% 10.6% 7.6%

Total -0.6% 1.0% -1.5% 0.0% 13.1% 8.5%

1H FY12

Overhead Expenses

2Q FY12

13

Group

Bank

RWCR strengthened to 15.49% from 15.35% in 1Q FY12

Note:* Core Equity Ratio computation is based on transitional arrangements announced by BCBS# Core Equity Ratio is capped at Core Capital Ratio & Risk Weighted Capital Ratio

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

14

26

11

28 32

18

8

44

32

36

FY08** FY09 FY10 FY11 FP11 FY12

Final

Interim

60.0% 61.0%

76.5% 74.9% 75.0%

67.9%

The Group will declare a gross interim dividend of 32 sen per share less 25% tax

Consistently rewarding shareholders with dividend in excess of policy of 40-60% Dividend Payout Ratio.

The Board declared gross interim dividend of 32 sen per share less 25% tax which will consist of 4 sencash portion and 28 sen electable portion for the Dividend Reinvestment Plan.

* Reinvestment rate for the 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 (%)

Dividend Payout Ratio

88.6%*

86.1%*

91.1%*88.5%* NA

15

1H FY12 2Q FY12 1Q FY12 FP11 FY11

Net Interest Margin 2.37% 2.42% 2.38% 2.53% 2.56%Return on Equity** 16.1% 16.4% 16.0% 16.2% 15.2%Fee to Income Ratio 40.0% 39.2% 40.8% 37.6% 36.6%Cost to Income # 47.8% 46.9% 48.7% 49.8% 49.6%Loan-to-Deposit Ratio 86.9% 86.9% 87.2% 87.5% 90.1%

Asset QualityGross Impaired Loans Ratio 2.00% 2.00% 2.44% 2.84% 3.34%Net Impaired Loans Ratio 1.28% 1.28% 1.57% 1.86% 2.25%Loan Loss Coverage 104.2% 104.2% 94.5% 86.9% 82.3%Charge off rate (bps) 28 28 28 25 23

Capital Adequacy (Group)Core Capital Ratio 11.42%* 11.42%* 10.97%^ 11.57%^ 11.68%^

Risk Weighted Capital Ratio 15.49%* 15.49%* 15.35%^ 16.29%^ 15.2%^

Maybank Group: Key Ratios

# Total cost excludes amortisation of intangibles for BII and Kim Eng* Assuming 85% reinvestment rate. ^ Adjusted for dividend payment and reinvestment made under the Dividend Reinvestment Plan (DRP) ** Annualised

Post‐FRS 139

16


Executive Summary



Country Review



17

3,304

1,558

645 662

74

671 396

3,920

1,375 917 794

254

1,037

263

Total Community Financial Services

Corporate Banking Global Markets Investment Banking

International Banking

Insurance, Takaful &

Asset Management

2H FY11 ended 30 June 20111H FY12 ended 30 June 2012

6,984

3,240

685 756 338

2,038

630

8,238

3,252

1,029 894 721

2,569

492





Asset Management

2H FY11 ended 30 June 2011


+42.3%

-11.8%

+42.2% +54.5%

+18.7%

-33.6%

+48.6%

-21.9%+50.1% +113.6% +26.1%+18.3%+0.4%

+18.0%

Revenue and PBT growth across most sectorsRe

venu

e (RM m

illion)

Profit before tax (RM m

illion)

Global Wholesale Banking (GWB)


Note: Revenue and PBT for Head Office & Others: –RM720m in 1H FY12 vs –RM703m in 2H FY11

+19.9% +243.0%

(Inc. Kim Eng)

(Inc. Kim Eng)

18

2,690

923

246 390 256 662 582

3,294

794 391 585 652 880 444





Asset Management



4,294

2,317

440 366 81

1,376

48

4,944

2,458

638 310 69

1,689

48





Asset Management



Revenue grew due to higher net fund based and fee-based income

Net Fund Based Income rose 15.2%

Fee-based Income grew by 22.3%

RM m

illion

RM m

illion

Note: In 2H FY11 , the credit card income was taken as gross of interchange fees while the 1HFY12, the position is nett after interchange fees # Includes expenditures of Head Office & Others of RM452 million for 1H FY12 and RM369 million for 2H FY11^ Includes net income from insurance business of RM257 million for 1H FY12 and RM430 million for 2H FY11

# Includes expenditures of Head Office & Others of RM268 million for 1H FY12 and RM334 million for 2H FY11Note: a total of RM29 billion and RM 1.3 billion nett of deposits and loans respectively exited CFS to Corporate which resulted in net interest income for CFS to be lower by

RM76 million in 1H FY12

^

#

#

+14.7%

+0.2%+45.1% -14.8%+22.8%

-15.3%+6.1%

+15.2%Global Wholesale Banking (GWB)

+82.3%

-14.0%+59.1% +32.9%

+22.3%

-23.7%


+49.7% +154.3%

19

75.5%

14.4%

5.5% 4.7%

68.0%

12.7%

15.5%

3.7%

63.8%

21.3%

8.3%

6.6%

72.5%

12.6%

7.1%7.8%

68%12%16%4%Malaysia Singapore Indonesia Others

65.3%

21.3%

7.9%

5.5%

64.4%14.4%

15.5%

5.6%

2H FY2011

RM8.24b

Increasing revenue, PBT and loan contribution from international operations

RM3.92b

Revenue Profit Before Tax1H FY2012

International:36%

International:32%

International:25%

International:28%

RM6.98b RM3.30b

Gross loans*

RM304.0b*

RM261.5b*

International:35%

International:36%

(Jan 11 – Jun 11)

(Jan 12 – Jun 12)

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

20

13.0%13.1%

13.2%13.3%

Jun 11 Sep 11 Dec 11 Jun 12

6.4 6.0 5.1

4.6

5.8

Jun 11 Sep 11 Dec 11 Mar 12 Jun 12

33.6 36.4 37.3 38.6

5.0 5.7 6.1 6.6

Jun 11 Dec 11 Mar 12 Jun 12

Housing loans Shophouse loans

Continued growth despite intense competition Asset quality continued to improve

Mortgage market share increased in the latest quarter Mortgage Approvals* increased in 2Q FY12

+14.9% annualised

Community Financial Services: Mortgage grew 14.9% annualised with improvingasset quality

+17.2% YoY *

RM b

illio

n

RM billion

42.1 45.2

* Industry grew 13.9% YoY as of June 2012

43.438.6

3.1%2.8%

2.2% 1.9%1.6%

Jun' 11 Sep' 11 Dec' 11 Mar' 12 Jun' 12

Gross Impaired loan ratio - Mortgage

* Industry refers to residential property and shophouses.

* Based on cumulative 3 months figures

21

25.5 27.2 28.0 29.1


Hire Purchase (RM billion)

Community Financial Services: Auto Finance* business improved in volumeand market share

Auto Finance* grew 14.1% annualised in Jun 12

+14.1% annualised

Asset quality remained stable with increasing market share

Non-national cars formed 65% of Auto finance* loans New cars still form 87% of total Auto Finance* loans

+14.2% YoY

RM billion

* Auto Finance data refers to hire purchase arrangements only

0.5% 0.6% 0.5% 0.6% 0.5%

18.8% 19.0%19.4%

19.9%20.2%

0.0%

0.5%

1.0%

1.5%

2.0%

17%

18%

18%

19%

19%

20%

20%

21%

Jun 11 Sep 11 Dec 11 Mar 12 Jun 12Gross Impaired loan ratioHire Purchase Market Share

34% 35% 36% 35%

66% 65% 64% 65%


National Cars Non-national cars

14% 13% 13% 13%

86% 87% 87% 87%


Used cars New cars

22

Community Financial Services: Cards continued to gain market share

Cards receivables

-4.8% annualised+6.21% YoY

RM b

illio

n

Card base (‘000)

+0.2% annualised+0.97% YoY

• Market Share for Billings and Merchant sales is based on 12-months running performance

• 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

Jun 12 Jun 11

Cardbase 18.3% 17.6%

Billings 25.2% 23.2%

Receivables 15.1% 14.9%

Merchant Sales 31.6% 29.5%

YoY Maybank Industry*

Cardbase 1.0% -2.9%

Billings 19.5% 10.1%

Receivables 6.2% 5.1%

Merchant Sales 18.6% 10.5%

4.8 4.9

5.2 5.1 5.1

Jun'11 Sep'11 Dec'11 Mar'12 Jun'12

1,474 1,473

1,487

1,471

1,488

Jun'11 Sep'11 Dec'11 Mar'12 Jun'12

23

41.247.3 50.7 51.5 53.2


17.0% 17.4%19.2% 19.9%

23.2%

10%12%14%16%18%20%22%24%


+8.2% ann.

Business Banking and SME: Expanding loans and deposits base

Deposits growth at 10.0% on annualised basis

Business Banking and SME: Gross Impaired Loans Ratio continues to improve#

SME loans* market share improving

RM billion

RM billion

* Classification of SME based on Bank Negara definition

+10.0% ann.

Loans grew 8.2% annualised in Jun 2012

13.0% 13.0%

11.7%

10.6%

9.0%


24.7 24.6 25.8 25.5 26.9


# Note: The NPL ratio for the Business Banking and SME loans as at June 12 is 5% compared to June 11 which was 8%.

24

2.7

28.0

25.4

2.7

27.5

25.9

2.5

27.0

32.5

Overdraft

Trade Finance*

Term Loan

Jun '12

Dec '11

Jun '11

Strong position in terms of Trade Finance Market Share

Corporate Banking Gross Impaired Loans Ratio improved to 1.46% in June 2012

Total GWB loans# increased by 10.5% YoY toRM62.0 billion

+28.0%YoY

-3.5%YoY

-6.2%YoY

RM billion

# Total GWB loans excludes USD (COF) loans amounting to RM2.9billion* Trade Finance includes: Trade, OFCL, USD (COF) and Factoring

25.7%

24.7%

26.9%

25.8%26.4%

23%

24%

25%

26%

27%

28%

Jun '11 Sep '11 Dec '11 Mar '12 Apr '12

3.63% 3.91% 3.89%

2.72%

1.46%

Jun '11 Sep '11 Dec '11 Mar '12 Jun '12

GWB: Loans Growth driven by 28.0% YoY increase in Term Loans

25

AAA35%

AA27%

A5%

BBB & below

2%

Comm. Papers

1% Not Rated30%

537743

538518

2H FY11Jun 2011

1H FY12Jun 2012

Non-interest incomeNet interest income

Global Markets growth supported by a 38.3% YoY increase in Non-Interest Income

PBT and Revenue grew 10% and 17% YoY respectively Credit Rating for Private Debt Securities in Malaysia

Group Securities Portfolio: 39.4% foreign securities

+10.3%

1,0751,261

+17.3%

Government Securities -Domestic,

27.9%

PDS -Domestic,

25.3%

Others (NIDs, Bas etc), 7.3%

Group Securities Portfolio grew 8.5% annualisedand 16.2% YoY

31.6 34.8 37.1

26.4 28.4 28.7 3.1 4.8 5.2

Jun 11 Dec 11 Jun 12

Others

PDS

Govt. Securities

RM70.9billion

+16.2% YoY+8.5% Annualised

61.068.1 70.9

PBT Revenue

958 1057

2H FY11Jun 2011

1H FY12Jun 2012

GovernmentSecurities – Foreign, 24.3%- 96.3% ASEAN- 3.7% Non-ASEAN

PDS - Foreign, 15.1%-36.5% ASEAN- 63.5% Non-ASEAN

26

1H FY2012 Equity Brokerage League Table by Country

Malaysia,382.8, 50%

Singapore,134.3, 18%

Thailand,127.9, 17%

Philippines,62.3, 8%

Indonesia,19.1, 2%

Hong Kong, 12.8, 2%

Others,19.2, 3%

1H FY2012 Total Income (RM mil)

1H FY2012 Fee-based Income for Malaysia

*Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings

758.4

RM m

illio

n

Total Income for Malaysia rose 122% YoY and 82% compared to 6m FP11

CountryTrading Volume(RM mil)

Market Share Rank

Thailand 75,221 12.2% 1

Malaysia 29,116 6.9% 3

Indonesia 21,561 5.6% 3

Philippines 10,807 7.9% 4

Singapore# 56,059 7.5% 5

Hong Kong 11,899 0.2% Tier 2# Rank is estimated based on market share

Primary Subscriber's Fees

22%

Arrangers' Fees21%

Advisory Fees17%

Brokerage16%

Placement Fees11%

Underwriting Fees 7%

Other Fee Income5%

Agency/ Guarantee Fees1%

145.7190.3

359.413.7

15.3

19.9

13.14.2

3.3

0.050.0

100.0150.0200.0250.0300.0350.0400.0450.0

2H FY11 6m FP11 1H FY12

Other incomeFund basedFee based

Maybank Kim Eng* reported a total income of RM758.4 million with Malaysia contributing 50% of the total income

27

1H FY2012 Maybank IB’s (Malaysia) Industry Position & Market Share

Source: 1 Bloomberg 2 Bursa Malaysia

Recent Notable Deals

Industry Rank by Value

Total Value

(RM bil)

Deals /

Issues

Market Share

M&A1 1 23.7 16 35.5%

Equity & Rights Offerings1 1 3.2 5 26.3%

Debt Markets –Malaysia Domestic Bonds1

1 10.4 87 29.9%

Debt Markets –Malaysia Ringgit Islamic Bonds1

1 7.2 80 31.0%

Equity Brokerage2 3 29.1 - 6.9%

Public Offering of Shelf Registration Bond Issuance I 2012

Joint Bookrunner, Joint Mandated Lead Arranger

Up to IDR 5,000,000,000,000

PT ASTRA SEDAYA FINANCE

February 2012

Initial Public Offering

Participating Underwriter

USD 501,560,000

GT CAPITAL HOLDINGS, INC

April 2012


Issuer Manager, Underwriter, Placement Agent

SGD 40,400,000

CIVMEC LIMITED

April 2012

MYR2,500,000,000

Perpetual Junior SukukProgramme

Sole Principal Adviser, Sole Lead Arranger, Sole Lead Manager

June 2012

MALAYSIA AIRLINE SYSTEM BERHAD

USD244,800,000


Principal Adviser, Sole Bookrunner, Joint Underwriter

June 2012

GAS MALAYSIA BERHAD

USD3,143,300,000


Joint Principal Adviser, Joint Managing Underwriter, Joint Global Coordinator, Sole Bookrunner, Joint Underwriter

May 2012

FELDA GLOBAL VENTURES BERHAD

MYR11,654,700,000

Joint Principal Adviser

Merger of SapuraCrest Petroleum Berhad and Kencana Petroleum Berhad

May 2012

SAPURAKENCANA PETROLEUM

MYR8,500,000,000

Joint Adviser

Acquisition by 1MDB Energy SdnBhd, of 100% equity interest of Tanjong Power Holdings Sdn Bhdin Tanjong Energy Holdings SdnBhd

May 2012

TANJONG POWER HOLDINGS SDN BHD

TANJONG POWER HOLDINGS SDN BHD

MYR1,770,000,000

Adviser

Acquisition of 65% equity interest in Esso Malaysia Berhad and 100% equity interest in ExxonmobilBorneo Sdn Bhd and ExxonmobilMalaysia Sdn Bhd from ExxonMobil International Holdings Inc

Mar 2012

PETRON OIL & GAS INTERNATIONAL SDN BHD

Maybank Kim Eng has made big strides with several notable deals, putting it in a leading position in Malaysia

28

15.8

7.3

10.7

2.9 3.6

7.2

16.6

8.1

11.9

3.1 4.7

8.0

16.3

9.7

12.4

3.4 5.8

8.3

AITAB Mortgage Financing

Term Financing

Others (CFS) Term Financing

Others (GWB)

Jun 11 Dec 11 Jun 12

-3%

+41%

+8%

+18%+47%

Group Islamic Banking business grew PBT by 50.9% YoY to RM715.5 million

Maybank Islamic: Total Gross Financing grew14% annualised to RM55.9 billion

Consumer: +11% Business: +22%

Group Islamic Banking Income and PBT*

** Includes financing sold to Cagamas

RM billion

**

+7%

RM million 1H FY12 2H FY11YoY

Growth

Fund based income 816.9 695.4 17.5%

Fee based income 284.8 135.4 110.3%

Total income 1,101.7 830.8 32.6%

Allowance for losses on financing

16.1 0.9 1616.0%

Profit before tax and zakat

715.5 474.3 50.9%

Maybank Islamic: Improving key ratios Jun 12 Dec 11 Jun 11

Financing to Deposit Ratio (Adjusted)

84.2% 83.7% 87.8%

Islamic Financing to Total Domestic Loans

28.3% 28.5% 27.4%

Gross Impaired Financing Ratio

1.06% 1.62% 2.01%

Net Impaired Financing Ratio

0.79% 1.03% 1.25%

Market Share

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

Jun 2012 Jun 2011

AITAB 30.4% 33.7%

Mortgage 20.2% 19.3%

Term financing 23.2% 22.8%

**1H FY12 2H FY11

29

8.2%

9.4%14.0%

0.0% 5.0% 10.0% 15.0%

HL‐MSIG Ins. & Tak.

Allianz Insurance

Etiqa Ins. & Tak.

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

Total Assets (RM billion)

Industry Source: Loss ratio for Malaysia’s Conventional business only withrolling 12 Months (Apr11-Mar12).

+5.5% YoY

Life/Family (New Business) Market Share

General Market Share

No. 1 in Life/Family

(New Business)

No. 1 in General

Source: LIAM/ISM Statistics (Apr11-Mar12)

Source: ISM Statistics (Apr11-Mar12).

+3.6% Anualised

Loss Ratio

23.11

23.94 24.38

June 2011 Dec 2011 June 2012

14.2%14.7%

17.3%

0.0% 5.0% 10.0% 15.0% 20.0%

Prudential Ins. & Tak.Great Eastern Ins. & Tak.

Etiqa Ins. & Tak.

13.2% 16.2%

15.0%

22.3%

33.9%

82.4%76.2%

83.3%74.8%

75.0%

1.1% 11.2%

54.6% 43.1%

18.0%

37.7% 36.4%

34.8% 32.1%

39.8%

60.1% 57.5%62.7% 58.9%

61.8%

Jun 11 Sept 11 Dec 11 Mar 12 Jun 12

Overall

Motor

Misc.Fire

MAT

0 500 1000 1500 2000 2500 3000

Total General

Fire

Motor

MAT

Misc

Total Life/Family

Single Premium

Regular Premium

Credit Premium

Group Premium

CombinedGross Premium

RM Million

2Q12

2Q11

+8.0%

+4.2%

+197.9%

+18.5%

+14.8%

+3.1%

-12.4%

+15.5%

+ 12.1%

-5.8%

+20.0%

Premium

30


Executive Summary



Country Review



31

0.63% 0.58%0.65%

0.58%0.46%0.47% 0.53%

0.62%0.53%

0.09% 0.07%

0.25%0.23%0.14% 0.25% 0.23% 0.33% 0.32%

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Gross NPL ratio Net NPL ratio

4.6 5.3 6.3

2.8 3.24.3

2.7 3.5 1.92.5 2.8 2.8

5.0 5.3 5.2

3.4 3.3 3.2

1.0 1.2 1.4

'Jun 11 Dec-11 Jun-12

Other (Consumer)

Car Loan

Housing Loan

Others (Corporate)

Non-Bank financial InstGeneral Commerce

Building & Const

Maybank Singapore loans grew at 14.4% YoY

Diversified Loan Portfolio

Asset Quality improved

Singapore: 1H PBT rose 7.2% YoY to SGD190m driven by higher fund and fee based income and lower net provision

Revenue and PBT rose 4% and 7% YoY respectively

SGD million 1H FY12 Jun 12

6m FP11

Dec 11

2H FY11 Jun 11

YoYGrowth

Net fund based income 231.6 240.3 228.3 1.4%

Non interest income 112.4 144.2 103.6 8.5%

Total income 344.0 384.6 331.9 3.6%

Provision (3.5) 8.6 10.2 -134.6%

Profit before tax 190.3 218.1 177.6 7.2%

SGD

bill

ion

Consumer39%

24.622.0

Corporate 61%

25.1

4.1% annualised

8.6%

25.4%

28.6%

14.4%

11.4%14.8%

24.2% 18.4%

Jun-10 Jun-11 Dec-11 Jun-12Maybank Singapore Growth Industry Growth

32

BII: PATAMI grew strongly by 61% YoY with improving NIM and continuing efficiencies in operating expenses

Consolidated Income Statement*1H FY11 1H FY12 Growth

IDR billion Jun 11 Jun 12 YoY

Interest Income 3,685 4,556 24%

Interest Expenses (1,740) (1,979) 14%

Net Interest Income 1,945 2,577 32%

Non Interest Income 1,207 1,111 -8%

Gross Operating Income 3,153 3,688 17%

Operating Expenses (excl. Provision) (2,161) (2,423) 12%

Operating Income before Provision 991 1,265 28%

Provisions (556) (555) 0%

Operating Income After Provision 436 710 63%

Non Operating Income (expense) 81 113 39%

Profit Before Minority Interest & Tax 517 824 59%

Minority Interest (0) 17 >100%

Tax (150) (249) 66%

PATAMI 367 592 61%

* Presentation is as per Bank Indonesia classification

33

24.4 22.8 25.0 26.6 27.1

11.0 14.3 16.4 17.1 19.5 19.1 20.1

21.0 21.6 22.2

0.4 0.4 0.4 0.4 0.4

4.6 4.5 4.4 4.2 4.3

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12Corporate SME Consumer Syariah Subsidiaries

Loan-to-Deposit Ratio (Bank only)

Net Interest Margin Loans composition (IDR trillion)

Modified LDR (consolidated) as of Jun’12 : 82.40%Modified LDR (bank only) as of Jun’12 : 80.58%

BII: Strong loans growth of 24% YoY accompanied by improved asset quality

5.43%

5.28%5.22%

5.51%

5.89%

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12

83.0%

85.8%

88.9%90.4%

89.4%


2.88% 2.75%

1.25% 1.11% 0.97%

4.15% 4.03%

2.27% 2.08% 2.24%


Net Impaired Loans ratio Gross Impaired Loans ratio

59.5 62.0 67.2 69.8 73.5

Asset Quality

34

BII: Branches and touch points expansion on track

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

274 295 327 337 344 346 351 368 375

844 893 952 1,009 1,017 1,088 1,152 1,190 1,218

Jun-10 Dec-10 Jun-11 Dec-11 Jun-12Branches ATM + CDM

13.06%

12.33%12.46%

12.71%12.56%


PATAMI We continue to invest in the expansion of network and IT infrastructure

Mobile banking is firmly in place and the Internet banking platforms for individual, supply chain and corporates is continuously being improved

The new trade finance system recently went live

BII is part of the Maybank IT Transformation Project (ITTP) which will allow continuous improvement of the Bank’s critical applications

Through this vigorous network expansion and IT investment, Bank has shown positive growth in net profit

822725

634

485 469

-41

461

669 592

2004 2005 2006 2007 2008 2009 2010 2011 201220126 months

35

7.17

6.125.72 5.69 5.62

Q211 Q311 Q4 11 Q112 Q2122Q FY121Q FY124Q FY113Q FY112Q FY11

778 787

4 -40

YTD Jun'11 YTD Jun'12

Total Revenue Profit Before Tax

Revenue and PBT (IDR billion)

WOM Finance: Overall consolidated asset quality is improving. However total industry is expected to feel the impact of new regulations.

Financing Amount (IDR billion)

Unit Financing (000 unit)+1.2%

-90%

Consolidated

Consolidated

238

29

268

217

52

270

New Used TotalYTD Jun 11 YTD Jun 12

3,072

238

3,309 2,814

435

3,249

New Used TotalYTD Jun 11 YTD Jun 12

Asset Quality : First Installment Default Ratio (%)Consolidated

Stand alone

36

An Binh Bank: PBT rose 15% YoY

Revenue and PBT

Gross Loans and Deposits

PBT increased by VND44.7 bil or 15% to VND352.3 bil for the 1H FY2012 mainly contributed by higher net interest income (+VND40.4 bil) and non-interest income (+VND15.2 bil). It is further supported by lower provisioning by VND87.7 bil.However, overhead expenses were VND98.6 bil or 25% higher, mainly attributed to increase in other overheads (mainly branch expansion) by VND78.6 bil and staff costs by VND20 bil.

Gross Loans declined by VND1,063.5 bil or 6%, as a result of lower lending to customers. Slower loans growth is largely due to the compliance with State Bank of Vietnam on the capping of annual credit growth based on the bank’s performance.Meanwhile, Customer Deposits is higher by VND6,599.6 bil or 25% in tandem with the increase in corporate and retail deposits.

NPL ratio improved from 4.51% to 3.83% on the back of lower NPL of VND693 bil (June 2011: VND864 bil) despite a drop in loans portfolio.

816.2 871.8

307.6 352.3

2QFY11 2QFY12

VND

bill

ion

Revenue

PBT

+15%

+7%

1H FY2011 1H FY2012

19,148.4 18,084.9

25,940.5

32,540.1

As at 30 June 11 As at 30 June 12

VND

bill

ion

Loans

Customer Deposits

+25%

-6%

Jun 11 Jun 12

Key Ratios June 2012 June 2011

Return on assets 1.20% 1.27%Return on equity 11.30% 9.68%Cost-to-income ratio 55.80% 47.53%Loans to deposit ratio 55.58% 73.82%NPL Ratio 3.83% 4.51%Net Interest Margin 4.96% 5.71%

37

MCB Bank: PBT rose 7.3% YoY

Revenue and PBT

Gross Loans and Deposits

PBT increased by PKR1,195.8 mil or 7.3% against corresponding period, mainly contributed by increase in non-interest income (“NOII”) by PKR1,220.5 mil and lower provisioning by PKR2,038.8 mil. Higher NOII is mainly due to the increase from fee, commission and brokerage income.However, the increase in PBT is partly offset by the drop in net interest income by PKR1,307.8 mil and higher overheads by PKR672 mil.Gross loans declined by 6.4% given the challenging environment. However, Customer Deposits grew by 7.4% in tandem with the increase in savings deposit and current accounts.NPL ratio slightly increased from 9.02% to 10.00%, due to the decline in loan base and slight increase in total NPL.

26,454.0 26,366.8

16,283.9 17,479.7

1H FY11 1H FY12

PKR

mill

ion

Revenue

PBT

-0.3%

+7.3%

281,796.1 263,746.7

486,949.5522,989.2

As at 30 June 11 As at 30 June 12

PKR

mill

ion

Gross Loans

Customer Deposits-6.4%

+7.4%

Key Ratios June 2012 June 2011Return on assets 3.44% 3.53%Return on equity 27.57% 28.65%Cost-to-income ratio 32.69% 30.04%Loans to deposit ratio 49.82% 56.80%NPL Ratio 10.00% 9.02%Net Interest Margin 7.32% 8.96%

Jun 11 Jun 12

38


Executive Summary



Country Review



39

Malaysia: Sustained economic growth for 2012

Volatile MYR/USD since mid-2011

CPI and components (% YoY)

Inflation expected to moderate to 2% in 2012 (2011: 3.2%)

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

OPR expected to remain unchanged at 3% until end of 2012

July ‘12 CPI: +1.4% YoY

Around 5% growth in 2012, thanks to resilient 5.1% expansion in 1H 2012 (2011: 5.1%) amid robust domestic demand

Quarterly GDP and annual growth rate2Q12 GDP: +5.4% YoY

Ringgit Malaysia per USD RM3.13 per USDas at 15th Aug

2012

OPR and SRR OPR

SRR

40

0%

5%

10%

15%

20%

25%

800

900

1,000

1,100

1,200

1,300

1,400

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jan

12

Jul 1

2

Total Deposits Total Deposits YoY Growth

Malaysia: Banking sector to remain healthy

Total Loans grew 12.6% YoY in June 12 (Maybank Domestic:13.3%)

RM billion

Total Deposits grew 12.6% YoY (Maybank Domestic: 22.5%)

RM billion

Capital Adequacy remains strong at 14.7% in June 12(Maybank Domestic: 15.4%)

RM billion

Impaired Loans RM23.8b, Net Impaired Loans ratio: 1.53%

0%

5%

10%

15%

20%

500

600

700

800

900

1,000

1,100

1,200

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jan

12

Jul 1

2

Total Loans Total Loans YoY GrowthHousehold YoY Growth Business YoY Growth

14.7%

12.9%

7%

9%

11%

13%

15%

17%

Jan

07

Jul 0

7

Jan

08

Jul 0

8

Jan

09

Jul 0

9

Jan

10

Jul 1

0

Jan

11

Jul 1

1

Jan

12

Jul 1

2

Risk Weighted Capital Ratio

Core Capital Ratio

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

2021222324252627282930

Mar

11

Apr

11M

ay 1

1Ju

n 11

Jul 1

1Au

g 11

Sep

11O

ct 1

1N

ov 1

1D

ec 1

1Ja

n 12

Feb

12M

ar 1

2Ap

r 12

May

12

Jun

12

Impaired Loans Net Impaired Loans Ratio

41

Singapore: External headwinds to challenge growth in 2H 2012

Singapore’s official economic growth forecast for 2012 revised to 1.5%-2.5% from 1%-3% previously following a weaker-than-expected GDP growth of 1.7% in 1H 2012.

In particular, the festering sovereign debt crisis in Europe, coupled with political uncertainties in the US will continue to weigh on the growth prospects of the trade-dependent economy in the near term.

Inflation rate in 2012 is expected to come in at 4.2%, underpinned by continued elevated costs of accommodation and private car ownership. However, core inflation might come in at the bottom end of the projected 2.5%–3.0% range should crude oil prices continue to ease in 2H 2012.

Unemployment rate is expected to rise from 2.0% in 2011 to 2.1%–2.3% in 2012 as companies hire more cautiously.

DBU Loan growth to moderate to 10%-15% in 2012 (from +30% in 2011) due to a slowdown in trade financing, transportation and property loans.

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

Loan Growth expected to moderate to 10%-15% in 2012

(5)

0

5

10

15

20

25

50

55

60

65

70

75

80

2Q 09

3Q 09

4Q 09

1Q 10

2Q 10

3Q 10

4Q 10

1Q 11

2Q 11

3Q 11

4Q 11

1Q 12

2Q 12 (E)

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

% YoY Growth

0.30

0.40

0.50

0.60

0.70

Jun-

09Au

g-09

Oct

-09

Dec

-09

Feb-

10Ap

r-10

Jun-

10Au

g-10

Oct

-10

Dec

-10

Feb-

11Ap

r-11

Jun-

11Au

g-11

Oct

-11

Dec

-11

Feb-

12Ap

r-12

Jun-

12

3-month SIBOR

-10%

0%

10%

20%

30%

40%

50%

Total Loans Business Loans Consumer Loans

Real GDP growth for 2012 expected to be 1.5%–2.5% (2011: 4.9% )

42

Indonesia: Domestic demand supporting growth

■ GDP growth was sustained at above 6% in 1H 2012 (6.3% YoY), onthe back of consumer spending (5% YoY), public consumption (6.5%YoY) and investment (11.2% YoY).

■ IDR remains under pressure due to volatile capital outflows andslowdown in exports, prompting Bank Indonesia to intervene in themarket to stabilize the currency. We expect IDR/USD exchangerate to end 2012 at 9,600.

■ Amid stable growth momentum, moderate inflation rate andpressures on IDR so far this year, Bank Indonesia maintain its keypolicy rate at 5.75%.

■ Loans growth is expected to grow 20%-24% by the end of 2012 withthe investment segment driving growth.

■ NPL is expected to reach 2%-3% for 2012.

25.3%

20.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12

Bank's loan growth: Increase 25.3% YoY in June 2012

Loan

6.37%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Q1 2003

Q1 2004

Q1 2005

Q1 2006

Q1 2007

Q1 2008

Q1 2009

Q1 2010

Q1 2011

Q1 2012

Real GDP growth: Improving growth(y-y)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12

Bank Indonesia maintain key policy rate at 5.75%

Inflation y-y

BI policy rate

Core Inflation y-y

(y-y %)

43

Other key priorities for 2H FY2012

1. Basel 3

Maybank is fully ready for the transitional arrangements that come into effect on 1 January 2013

Group Capital Plan is in place to prepare to meet Basel 3 requirements in line with the transitional arrangements

2. Dividends

Maybank DRP programme to continue as a strategic capital management tool after 2013

Equity raising would be optional if other buffers introduced or the Group selects to increased CET1 earlier than stipulated dates

The Group’s aspiration will be to achieve a payout ratio in line with the policy rate or higher

3. Cost optimisation Group will remain vigilant on its cost structure

Investments will be made into resources that will develop business capabilities

44

Prospects

In 2012, global GDP growth is forecast at 3% (2011 est.3.8%) with slower growth for Eurozone, US and China. The economies of the three home markets of Malaysia, Singapore and Indonesia, where Maybank Group operates in, are expected to have GDP growth of 5.0%, 3.0% and 6.2% respectively (collectively contributing more than 90% to the Group's income and profit).

Malaysia: Domestic demand supported by sustained consumer spending with government expenditure and investment driven by projects under the Government and Economic Transformation Program (GTP / ETP). Singapore: Maybank Singapore’s loans growth expected to decline to around 11% as the economy moderates due to slower global economic growth and measures to curb property speculation.Indonesia: Strong domestic demand, coupled with the relatively under-penetrated banking sector is expected to support loans growth for BII of around 20%.

Strategy of responsible growth, equal focus on managing asset quality and liquidity through sound risk management practices, particularly given the current global environment.

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 as investment banking, global wholesale banking, credit cards, global markets and payments.

Focus on raising customer service quality, embedding the right risk culture, and driving greater effectiveness and efficiency to improve the cost structure.

After introducing Basel III Capital Rules in December 2011 essentially in accordance with globally agreed levels and implementation timeline, BNM issued a concept paper for industry consultation in May 2012, detailing out a more prudent approach in its revised definition of regulatory capital computation. Maybank has provided its feedback to BNM. BNM is expected to issue the final rules by the fourth quarter of 2012. Maybank is well prepared to comply with the BNM transition requirements for 2013.

Notwithstanding the global challenges, the Group expects a satisfactory financial performance for FY2012 in view of expected growth in key ASEAN markets that the Group operates in.

45

Mohamed Rafique MericanGroup Chief Financial OfficerContact: (6)03-2074 7878Email: [email protected]

MALAYAN BANKING BERHAD14th Floor, Menara Maybank100, Jalan Tun Perak50050 Kuala Lumpur, MalaysiaTel : (6)03-2070 8833

www.maybank.com

Narita NazireeHead, Group Strategy ManagementContact: (6)03-2074 8101Email: [email protected]

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

Raja Indra PutraHead, Investor RelationsContact: (6)03-2074 8582Email: [email protected]

Investor Relations Contact