Investor Presentation

Transcription

1 Humanising Financial Services Investor Presentation Financial Results 4Q and Full Year ended 31 December February

2 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

3 Full Year Overview Higher net operating income of RM22.26 billion for full year 2016, with net profit at RM6.74 billion 1 Continued growth in core revenue despite slower operating environment Revenue growth of 4.8% YoY supported by growth in net fund and fee based income o Net fund based income rose 5.2% YoY, supported by pick-up in corporate lending across home markets in 4Q and continued growth in CFS franchise New PPOP high of RM11.69 billion, with income growth ahead of cost growth 2 Disciplined Cost Management Low cost growth of 2.8% YoY, with positive JAWs position of 2.0% Lowest CIR ratio in six years at 47.3% for 3 Strong CASA Group CASA strengthened to 35.7% from 33.7% a year ago due to strong CASA franchise growth in home markets 4 Proactive Asset Quality Management Maintained prudence at year-end review of accounts Slight uptick in Group GIL ratio to 2.28% as at Dec 2016 from 2.22% a quarter ago 5 Stable Liquidity and Capital Positions Group LCR of 152% as at Dec 2016 Total capital ratio at 18.9%* and CET1 capital ratio at 13.6%* as at Dec 2016 Attractive dividend yield of 6.3%, with dividend per share of 52 sen *After proposed dividend and assumption of 85% reinvestment rate. Fully loaded Group CET1 capital ratio is 13.23% 2

4 Key Performance Indicators Review Full year achievements in line with revised guidance Key Performance Indicators Guidance Annualised 1H 2H Achievement Headline KPI Return on Equity (reported) 10.5%-11.0% 8.3% 13.0% 10.6% Other Guidance Group Loans Growth (reported) 2%-3% (3.6)% 15.3% 5.7% Group Loans Growth (normalised) ¹ (1.4)% 10.2% 4.2% Malaysia 4%-5% 1.1% 11.4% 6.3% Singapore ² 2%-3% (2.9)% 12.0% 4.5% Indonesia ² 6%-7% 7.9% 9.1% 8.7% Group Deposits Growth (reported) 3%-4% 5.8% 4.4% 5.2% Group Deposits Growth (normalised) ¹ 7.7% 0.1% 3.8% Notes: 1 Normalised to exclude the conversion effects for Singapore, Indonesia, Philippines, Greater China and Labuan (USD) 2 In local currency terms 3

5 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

6 P&L Summary: Net operating income grew 4.8% YoY to new high of RM22.26 billion More details on RM million FY2015 YoY s.7 Net fund based income * 15, , % s.7/8 Net fee based income * 6, , % s.6/31 Net operating income 22, , % s.9 Overhead expenses (10,577.2) (10,285.0) 2.8% s.6 Pre-provisioning operating profit (PPOP) ¹ 11, , % Net impairment losses (3,015.0) (2,012.6) 49.8% Operating profit 8, ,940.3 (3.0)% s.31 Profit before taxation and zakat (PBT) 8, ,151.5 (3.4)% Profit attributable to equity holders of the Bank (Net Profit) 6, ,835.9 (1.4)% EPS - Basic (sen) (5.8)% Note: Page 35 shows the quarterly trend of the P&L summary. * From consolidated Group numbers, Insurance and Takaful accounts for 6.4% of net fund based income and 9.0% of net fee-based income ¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses 5

7 RM million RM million Franchise-Led Growth: (1/2) Strong growth across all business pillars; Group CFS at 8.4%, Group GB at 7.3% & Group Insurance & Takaful at 4.3% Net Operating Income +4.8% 21,238 22,263 12,046 13,057 7,668 8,299 Group Global Banking (GB) +7.3% FY2015: 9,255 : 9,935 FY % +8.2% +1.3% +28.0% +4.3% 1,480 1, ,527 1,593 PPOP Total +6.7% Group Community Financial Services (CFS) Group Corporate Banking & Global Markets Group Investment Banking Group Global Banking (GB) +9.3% FY2015: 6,221 : 6,800 Group Asset Management Group Insurance & Takaful FY ,953 11, % +10.8% (12.6)% (4.7)% (4.3)% 6,302 5,375 5,833 6, (8) (8) Total Group Community Financial Services (CFS) Group Corporate Banking & Global Markets Group Investment Banking Group Asset Management Note: Net income & PPOP includes Group elimination of entities in Head Office & Others of RM1,589.4 million for FY2015 and RM2,321.6 million for. Group Insurance & Takaful

8 RM million RM million Franchise-Led Growth: (2/2) Revenue growth supported by higher net fund based income of 5.2% and net fee based income of 4.0% Net Fund Based Income +5.2% Group Global Banking (GB) +0.9% FY2015: 5,433 : 5,483 FY ,545 15, % (0.2)% +28.0% (>100)% +11.3% 9,027 9,999 5,206 5, (2) (7) 906 1,009 Total Net Fee Based Income +4.0% Group Community Financial Services (CFS) Group Corporate Banking & Global Markets Group Investment Banking Group Global Banking (GB) +16.5% FY2015: 3,821 : 4,453 Group Asset Management Group Insurance & Takaful FY % +26.1% (3.6)% +32.1% (6.0)% 6,693 6,962 3,019 3,058 2,461 3,102 1,251 1, Total Group Community Financial Services (CFS) Group Corporate Banking & Global Markets Group Investment Banking Group Asset Management Note: Net fund based income includes Group elimination of entities in Head Office & Others of RM820.6 million for FY2015 and RM1,188.6 million for. Net fee based income includes Group elimination of entities in Head Office & Others of RM768.8 million for FY2015 and RM1,133.0 million for. Group Insurance & Takaful

9 RM million Net Fee Based Income: Growth of 4.0% YoY due to higher investment & trading income and net earned insurance premiums RM million FY2015 YoY Commission, service charges and fees 3,649 3,821 (4.5)% Investment & Trading Income 1, % Unrealised gain/ (losses) on securities & derivatives >100% Foreign Exchange Profit % Other Income (32.9)% +4.0% YoY +6.9% YoY (10.1)% YoY +5.9% YoY 6,693 6,962 5,773 6,170 4,197 4, % YoY FY Total Other operating income Fee Income from Islamic Operations Net Earned Insurance Premiums (3,784) (4,108) Net Insurance Benefits & Claims Incurred, Net Fee & Commission Expenses and Life & Takaful Fund Tax Note: Page 37 shows the quarterly trend of net fee based income. 8

10 Overheads: Low cost growth of 2.8% YoY arising from strategic cost management programme initiatives and natural attrition Group overheads composition (RM mil) FY2015 YoY Personnel Costs 5, ,765.1 (2.0)% Establishment Costs 1, , % Marketing Expenses (14.0)% Administration & General Expenses 2, , % Total 10, , % % FY2015 YoY Total Cost to Income ¹ (0.9)% Group JAW Position 2.0% Note: Page 38 shows the quarterly trend of overheads. ¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng 9

11 Group Gross Loans Growth: 31 December 2016 Group gross loans growth of 5.7% YoY, supported by stronger corporate lending growth and sustained growth in CFS % of Portfolio 31 Dec Dec 2015 YoY Group Gross Loans % Malaysia (RM billion) 56% % Community Financial Services 71% ¹ 6.1% Global Banking 29% ¹ 7.5% International (RM billion) 43% % Singapore (SGD billion) 58% % Community Financial Services 54% % Global Banking 46% % Indonesia (Rupiah trillion) 20% % Community Financial Services 78% % Global Banking 22% % Other markets (RM billion) 22% (6.4)% Investment banking (RM billion) 1% (2.5)% Note: Page 39 shows the quarterly trend of the Group gross loans. ¹ Re-based loan growth figures are based on adjusted 31 December 2015 position in line with migration of client accounts, implemented on 1 January

12 Malaysia Loans Growth: 31 December 2016 Growth of 6.3% supported by increase in corporate, consumer and SME lending 11 RM billion % of Portfolio 31 Dec Dec 2015 YoY Community Financial Services (reported) 71% % Community Financial Services (rebased) ¹ 71% % Consumer 57% % Total Mortgage 28% % Auto Finance 16% % Credit Cards 2% % Unit Trust 10% (1.9)% Other Retail Loans 1% % Business Banking + SME (reported) 14% % Business Banking + SME (rebased) ¹ 14% % SME (reported) 5% % SME (rebased) ¹ 5% % Business Banking (reported) 10% % Business Banking (rebased) ¹ 10% % Global Banking (Corporate) (reported) 29% % Global Banking (Corporate) (rebased) ¹ 29% % Total Malaysia % Note: Page 40 shows the quarterly trend of Malaysia loans. ¹ Re-based loan growth figures are based on adjusted 31 December 2015 position in line with migration of client accounts, implemented on 1 January 2016

13 RM billion RM billion RM billion Selective Asset Growth: 31 December 2016 Group loans grew 5.7% YoY with controlled credit RWA growth of 0.7% YoY Group Gross Loans Total Group RWA Group Credit RWA +5.7% % % % % +0.7% Dec 14 Dec 15 Dec 16 Dec 14 Dec 15 Dec 16 Dec 14 Dec 15 Dec 16 12

14 Group Deposits Growth: 31 December 2016 Growth of 5.2% YoY driven primarily from robust CASA growth across home markets % of Portfolio 31 Dec Dec 2015 YoY Group Gross Deposits % Malaysia (RM billion) 58% % Savings Deposits 14% % Current Accounts 27% % Fixed Deposits 54% % Others 5% % International 42% % Singapore (SGD billion) 64% % Savings Deposits 13% % Current Accounts 15% % Fixed Deposits 70% (4.9)% Others 2% % Indonesia (Rupiah trillion) 18% % Savings Deposits 22% % Current Accounts 17% % Fixed Deposits 61% (1.2)% Note: Page 41 shows the quarterly trend of Group deposits. 13

15 NIM Trend: Full Year Full year NIM of 2.27% with moderate compression of 4bps YoY 5-Year Trend Net Interest Margin (%) FY2012 FY2013 FY2014 FY

16 LDR and CASA Ratio: 31 December 2016 Group CASA ratio improved YoY and QoQ, driven by CASA growth in three home markets Group LDR CASA Malaysia 92.7% * 89.9% * 88.5% * 90.9% * 93.2% * 92.3% * 90.2% * 89.1% * 96.0% * 91.3% * 33.7% 33.3% 33.4% 34.5% 35.7% 37.1% 36.9% 35.9% 37.5% 38.0% Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Singapore 85.3% 80.3% 79.4% 79.1% 85.3% Indonesia 99.6% 100.1% LDR (Bank Level) 104.8% 102.8% 104.5% 21.2% 20.4% 22.5% 24.5% 27.5% 86.1% 87.6% 90.3% 88.0% 88.9% 36.0% 37.7% 39.3% 38.1% 38.6% Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Note: LDR is based on gross loans over customer deposits, a methodology adopted by Maybank effective January 2016 *Includes investment accounts totaling RM31.54 billion for 31 Dec 2016, RM30.37 billion for 30 Sep 2016, RM30.96 billion for 30 June 2016, RM25.07 billion for 31 Mar 2016 and RM17.66 billion for 31 Dec 2015, captured under Maybank Group s management reporting of total deposits 15

17 Strong Liquidity: 31 December 2016 Group LCR of 152%, above BNM minimum requirement of 70% for 2016 Liquidity Coverage Ratio Objective Ratio BNM Minimum Requirement Short-term resilience Adequate level of high-quality liquid assets to meet liquidity need for next 30 days under significant stress scenario Stock of high quality liquid assets Net cash outflows over 30-day period Year LCR 1 Jun % 1 Jan % 1 Jan % 1 Jan % 1 Jan 2019 & thereafter 100% BNM min requirement of 70% Group Liquidity Coverage Ratio (%) Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 16

18 RM million Asset Quality Slight uptick in Group GIL ratio to 2.28% QoQ Allowance for losses on loans Allowances for losses on loans Loan loss coverage (LLC) GIL Ratio Components Non Performing Loans (NPL) Group GIL Ratio Composition Dec 2016 Sep 2016 Jun 2016 Mar 2016 Dec % 1.35% 1.32% 1.39% 1.15% 72.0% 70.1% 70.5% 74.8% 72.0%* 2,832.7 Restructured & Rescheduled (R&R) Performing Loans Impaired Due to Judgmental/ Obligatory Triggers (IPL) 0.39% 0.52% 0.67% 0.33% 0.23% 0.25% 0.35% 0.35% 0.39% 0.48% 1,683.6 GIL Ratio 2.28% 2.22% 2.34% 2.11% 1.86% % 11% NPL R&R IPL 4Q FY2015 1Q 2Q 3Q 4Q FY % 17 *Loan loss coverage including Regulatory Reserve is 81.6%

19 Asset Quality by Market Continued proactive management of asset quality in home markets Malaysia Singapore Indonesia Gross Impaired Loans Net Impaired Loans Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 * The difference in Maybank Indonesia s GIL ratio and NIL ratio on Pages 18 & 60 are due to computation differences owing to classification to meet the respective local regulatory reporting requirements. 18

20 Asset Quality by Line of Business: Malaysia Stable consumer and retail SME portfolios, with uptick mainly stemming from business and corporate banking portfolios GIL Ratio Consumer Mortgage Auto Finance Credit Cards Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Business Retail SME Business Banking Corporate Banking Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Note: Industry GIL ratio for mortgage is 1.1%, 0.9% for auto finance, 1.4% for credit cards, 2.5% for SME and 2.2% for Business Banking. 19

21 Asset Quality by Line of Business: Singapore Stable consumer portfolio; GIL ratio uptick for business segments in line with weaker operating environment GIL Ratio Consumer Mortgage Auto Finance Credit Cards Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Business Retail SME Business Banking Corporate Banking Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Note: Industry GIL figure is only available for mortgage, which was 0.4% as at December

22 Asset Quality by Line of Business: Indonesia Overall improvement in asset quality, with some uptick in mortgage and business banking GIL Ratio Consumer Mortgage Auto Finance* Credit Cards Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Business Retail SME Business Banking Corporate Banking Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Note: Business Banking includes Commercial, SME and Micro loans. Maybank Indonesia s GIL ratios are mapped in accordance to its local regulatory reporting requirements. *Excludes WOM Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 21

23 Commodities Exposure: 31 December 2016 Maybank Group s exposure to direct and indirect oil and gas borrowers as well as other commodities Oil & Gas Direct & Indirect Oil & Gas: Borrowers with O&G related exposure Maybank Group Malaysia Singapore Indonesia Others Loan exposure 4.35% 2.76% 1.29% 0.18% 0.12% Group exposure of 4.35% includes funded and non-funded Other Sectors Agriculture Maybank Group 1.79% Malaysia 1.34% Singapore 0.05% Indonesia 0.40% Metals & Mining 22 Segmental Exposure: 5% Excluding non-funded, exposure is 3.91% 20% 36% 39% Upstream Supporting Upstream Downstream Supporting Downstream 1% Borrowers Status: 49% 42% 8% Normal Special Mention Account Watchlist Notes: Supporting upstream includes services activities incidental to crude oil and natural gas extraction including surveying. This includes providers of services/ activities related to O&G industry GIL 79% comes from supporting upstream Maybank Group 1.44% Malaysia 1.11% Singapore 0.10% Indonesia 0.24% Notes: Group exposure is for three home markets Malaysia, Singapore and Indonesia, based on Group gross loans as at end December Agriculture includes rubber, oil palm and cocoa sectors Metals and mining includes coal, lignite, peat, metal ores, tin, iron, steel and non-ferrous metal sectors

24 Strong Capital Position: 31 December 2016 Total capital ratio at 18.94% (assuming 85% dividend reinvestment rate) and CET1 at 13.63% Group Before proposed dividend 17.74% 19.29% 18.94% 14.47% 15.66% 15.31% 12.78% 13.99% 13.63% Dec 15 Dec 16 Dec 16 After proposed dividend, assuming 85% reinvestment rate Minimum Common Equity Tier 1 Capital Regulatory Requirements Jan 2019 Onwards 4.5% 4.5% 4.5% 4.5% Minimum Tier 1 Capital 6.0% 6.0% 6.0% 6.0% Minimum Total Capital 8.0% 8.0% 8.0% 8.0% Bank Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio 19.43% 18.92% 17.97% 18.23% 17.72% 15.78% 15.88% 15.37% Dec 15 Dec 16 Dec 16 Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio Capital Conservation Buffer (Phase in) Other Capital Buffers D-SIB Buffer Countercyclical Capital buffer 0.625% 1.250% 1.875% 2.500% To be determined 0% - 2.5% Note: Based on 85% reinvestment rate under the DRP, the fully loaded CET1 Ratio would be at 13.23% (Group) and 12.10% (Bank) respectively. ** Dec 2015 Bank Level Tier 1 and TCR ratio are the same at 17.97%. 23

25 Dividend: Total dividend of 52 sen per share for, with a strong dividend yield of 6.3% Gross Dividend (sen) and Payout Ratio (%) 76.5% 74.9% 79.9% 74.7% 71.9% 78.5% 76.3% 78.1% Dividend Payout Ratio 61.0% %* %* # 85.7%* %* %* %* N.A.* Final Interim %* %* %* %* %* 87.5%* %* FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 * Actual Reinvestment Rate for Dividend Reinvestment Plan. The reinvestment rate for Final Dividend is pending the execution of the 14th DRP. # The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend. Maybank adopted the single-tier dividend regime with effect from FYE 31 Dec

26 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

27 Maybank 2020 : Strategic Objectives Progress (1/2) Key Achievements 1 The Top ASEAN Community Bank Group Regional Wealth Management recorded strong 26.1% growth in YoY PBT. Total AUM reached over RM250 billion, representing 12.7% growth from 2015 Regional SME recorded 21.1% growth in PBT Record >40% growth in M2U transactions YoY & >50% growth in mobile transactions 2 Leading investment banking franchise in ASEAN - top in the Bloomberg s ASEAN Equity, Equity Linked & Rights, ASEAN Local Currency Bonds and ASEAN M&A League Tables The Leading Continued leading Malaysian market share in corporate lending, trade finance and ASEAN Wholesale corporate deposits Bank Linking Asia MKE was awarded Best Investment Bank in Malaysia by Euromoney (2 nd consecutive year) and Best Broker of the Decade in Southeast Asia by Alpha Southeast Asia 3 Malaysian market leader in combined general insurance & takaful as well as e-channel The Leading business with 86% market share ASEAN Insurer Expanded international presence in Singapore and Philippines 4 The Global Successfully captured headline deals in Singapore, Indonesia, UK and the US Remained leading Sukuk arranger - ranked top 2 for Global Sukuk League Table Leader In Islamic Further embraced Islamic Social Finance via the launch of Wakaf Program in collaboration Finance with the State of Perak, WPAR 5 Launched various first to-market digital initiatives: o MaybankPay a mobile wallet further drive the adoption of cashless payments Digital Bank of o SamsungPay - for contactless payment Choice o Maybank Heart digital social fundraising platform NGOs Partnered Western Union to enable online access for money transfer via Maybank2u 26

28 Maybank 2020 : Strategic Objectives Progress (2/2) FY2017 Priorities 1 Growth will continue to be driven by segmentation model with intensified focus on cross sell and stepping up new fee income growth engines. The Top ASEAN Continue to strive to lead in areas of innovation on digital offerings to provide our Community Bank customers with superior customer experience, while managing overheads through improved productivity & optimisation. 2 The Leading ASEAN Wholesale Bank Linking Asia Focus on client-centric solutions to provide better access to capital, facilitate connectivity & efficient management of cash flows via our ASEAN presence Assist clients in managing risk as well as achieving stable and sustainable growth during uncertain times through our complete product suites and services, structuring expertise and in-depth insights of the ASEAN market 3 The Leading ASEAN Insurer Strengthen Bancassurance relationship between Etiqa and Maybank Drive productivity by leveraging digital tools especially via Motortakaful.com and Etiqa s Direct Sales Portal 4 The Global Leader In Islamic Finance Expand regional key markets driven by better distribution of products and services Stronger global visibility through landmark deals Reaffirm our Humanising Financial Services mission via Islamic Social Finance and Environmental, Social and Governance initiatives 5 Digital Bank of Choice Broaden Group s digital ecosystem to introduce next-generation customer experience Further develop digital-enabled capabilities through continuous exploration of innovative solutions 27

29 Market Outlook 2017 outlook for our home markets Key Indicators Outlook Malaysia Singapore Indonesia GDP (f) 4.4% (2016: 4.2%) System loan (f) 4.7% for 2017 OPR(f) 3.00% (2016: 3.00%) USD/MYR average for the year (f) 4.33 (2016: 4.14) Inflation (f) % (2016: 2.1%) GDP (f) 2.5% (2016: 2.0%) System loan (f) 2-3% System deposit (f) 3-4% 3M SIBOR (f) 1.3% (2016: 0.97%) USD/SGD average 1.42 (2016: 1.38) Inflation (f) 1.2% (2016: -0.5%) GDP(f) 5.1% (2016: 5.0%) System loan (f): 10.17% System deposit (f): 9.5% Reference Rate (f) 4.75% (2016: 4.75%) USD/IDR average (f) (2016: 13305) Inflation average (f) 4.32% (2016: 3.53%) Slowdown in loan growth to 4.7% (2016: 5.3%) Competition for deposits to remain keen Credit cost uptick on ongoing NPL issues Cost and capital management will remain key priorities Muted loan growth due to weak demand & banks being cautious in uncertain environment Potentially further asset quality deterioration, should O&G and SME weakness persist. NIMs expected to remain stable. Capital and liquidity buffers to remain healthy. Tax amnesty programme and fiscal spending on infrastructure projects could support economic growth and mitigate downside risk to the Rupiah. BI not expected to cut interest rates. US exports percentage is the lowest within Asia, thus Indonesia is more resilient under uncertain trade environment 28

30 Maybank s Group Guidance FY2017 Drive income growth Expand fee income stream Drive Group wide cross selling initiatives Sharpen margin & segment focus Manage NIM compression Improve productivity Maintain positive JAWs across business segments Proactively managing asset quality Proactively monitor asset quality ROE 10%-11% Group Loans Growth 6%-7% Group Deposits Growth 6%-7% 29

31 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

32 International & Malaysia Portfolio Mix Full Year Net Operating Income Profit Before Tax Gross loans (Jan 16 Dec 16) Overseas: 38.1% 14.6% 16.0% 7.5% RM22.26b 61.9% Overseas: 22.8% 8.9% 4.0% 9.9% RM8.84b Overseas: 43.3% 9.1% 8.6% 25.5% RM485.7b 56.7% 77.2% FY2015 (Jan 15 Dec 15) Overseas: 35.8% 6.0% 13.0% 16.7% RM21.24b 64.2% Malaysia Singapore Indonesia Others Overseas: 27.0% 15.8% 7.5% 3.7% RM9.15b 73.0% Overseas: 43.7% 10.3% 7.9% RM459.4b 56.3% 25.5% 31

33 Income Statement for Insurance and Takaful Business: YoY RM million FY2015 YoY Net interest income % Net earned premiums 4, , % Other operating income % Total operating income 5, , % Net insurance benefits & claims incurred, net fee & (4,285.4) commission expenses and life & takaful fund tax (3,903.5) 9.8% Net operating income 1, , % Overhead expenses (700.0) (547.7) 27.8% PPOP (11.0)% Net impairment losses (25.8) (329.7) (92.2)% Operating profit % Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax RM million FY2015 YoY Net insurance benefits & claims incurred, net fee & (4,285.4) commission expenses and life & takaful fund tax (3,903.5) 9.8% Less: intercompany elimination % Total net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax (4,107.9) (3,784.4) 8.5% Note: Page 36 shows the quarterly trend of the Income Statement for Insurance and Takaful business 32

34 Group Asset Quality: 31 December 2016 Group Impaired Loans Ratio Gross Impaired Loans Ratio (%) Net Impaired Loans Ratio (%) Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Dec 2016 * Bursa Malaysia financial statements for 31 Dec 2016 reflects NIL ratio less MIB Investment Accounts. Group Non-Performing Loans (NPL) Ratio Gross NPL ratio 1.00% 1.01% 1.04% 1.05% 1.15% 0.61% 0.67% 0.70% 0.73% 0.81% Net NPL ratio 1.39% 1.32% 1.35% 0.98% 0.79% 0.78% 1.64% 1.14% Dec 2014 Mar 2015 Jun 2015 Sept 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Dec

35 Key Operating Ratios: YoY (%) FY2015 YoY FY2014 FY2013 Return on Equity (1.6)% Net Interest Margin (4) bps Fee to Income Ratio (0.2)% Loans-to-Deposit Ratio 93.2 ¹ 92.7 ¹ 0.5% Cost to Income Ratio (0.9)% Asset Quality Gross Impaired Loans Ratio bps Net Impaired Loans Ratio bps Loans Loss Coverage % Net Charge off rate (bps) (62) (41) 21 bps (11) (23) Capital Adequacy (Group) 3 CET1 Capital Ratio bps Total Capital Ratio bps Note: Page 42 shows the quarterly trend of key operating ratios. 1 Includes investment accounts totaling RM31.54 billion for 31 Dec 2016 & RM17.66 billion for 31 Dec 2015, captured under Maybank Group s management reporting of total deposits 2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Kim Eng. 3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period 34

36 P&L Summary: QoQ RM million 1Q 2Q 3Q 4Q QoQ 4Q FY2015 YoY Net fund based income 3, , , , % 3, % Net fee based income 1, , , , % 1, % Net operating income 5, , , , % 5, % Overhead expenses (2,620.2) (2,623.7) (2,699.9) (2,633.4) (2.5)% (2,775.7) (5.1)% Pre-provisioning operating profit (PPOP) ¹ 2, , , , % 2, % Net impairment losses (878.4) (1,181.2) (330.8) (624.5) 88.8% (521.9) 19.7% Operating profit 1, , , , % 2, % Profit before taxation and zakat (PBT) 1, , , , % 2, % Profit attributable to equity holders of the Bank (Net Profit) 1, , , , % 1, % EPS - Basic (sen) % % ¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses 35

37 Income Statement for Insurance and Takaful Business: QoQ RM million 1Q 2Q 3Q 4Q 4Q QoQ FY2015 YoY Net interest income % % Net earned premiums 1, , , , % 1, % Other operating income (280.7) (>100)% (>100)% Total operating income 1, , , ,173.6 (25.0)% 1,565.4 (25.0)% Net insurance benefits & claims incurred, net fee & (1,365.8) commission expenses and life & takaful fund tax (1,108.5) (1,173.6) (637.4) (45.7)% (1,115.5) (42.9)% Net operating income % % Overhead expenses (160.7) (167.7) (162.2) (209.4) 29.1% (121.2) 72.9% PPOP % (0.01)% Net impairment losses (19.4) (14.0) (0.2) 7.8 >100% (21.6) >100% Operating profit % % Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax RM million 1Q 2Q 3Q 4Q QoQ 4Q FY2015 Net insurance benefits & claims incurred, net fee & (1,365.8) commission expenses and life & takaful fund tax (1,108.5) (1,173.6) (637.4) (45.7)% (1,115.5) (42.9)% Less: intercompany elimination (30.3)% % Total net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax (1,323.8) (1,075.7) (1,113.1) (595.3) (46.5)% (1,073.9) (44.6)% YoY 36

38 RM million Net Fee Based Income: QoQ RM million 1Q 2Q 3Q 4Q QoQ Commission, service charges and fees % Investment & Trading Income >100.0% Unrealised gain/ (losses) on securities & derivatives (676) >(100.0)% Foreign Exchange Profit (32) % Other Income % (0.2)% +10.4% +21.4% 2,099 (13.5)% +19.0% (21.5)% +>100% (20.0)% +43.0% (8.9)% (4.3)% +17.1% (18.7)% 3.5% (46.5)% 1Q 2Q 1,569 1,729 1,666 1,715 1,566 1,441 1,346 1,169 1,192 1,0651,018 3Q 4Q (1,324)(1,076) (1,113) (595) Total Other operating income Fee Income from Islamic Operations Net Earned Insurance Premiums Net Insurance Benefits & Claims Incurred, Net Fee & Commission Expenses and Life & Takaful Fund Tax 37

39 Group Overheads: QoQ (RM mil) 1Q 2Q 3Q 4Q QoQ 4Q FY2015 YoY Personnel Costs 1, , , ,354.1 (7.3)% 1,586.7 (14.7)% Establishment Costs (9.0)% (11.5)% Marketing Expenses % % Administration & General Expenses % % Total 2, , , ,633.4 (2.5)% 2,775.7 (5.1)% % 1Q 2Q 3Q 4Q QoQ 4Q FY2015 YoY Total Cost to Income ¹ (6.0)% 49.3 (6.0)% Group JAW Position ¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng

40 Group Gross Loans Growth: QoQ 31 Mar Jun Sep Dec 2016 QoQ Group Gross Loans % Malaysia (RM billion) % Community Financial Services % Global Banking % International (RM billion) % Singapore (SGD billion) % Community Financial Services % Global Banking % Indonesia (Rupiah trillion) % Community Financial Services % Global Banking % Other markets (RM billion) % Investment banking (RM billion) (3.0%) 39

41 Malaysia Loans Growth: QoQ RM billion 31 Mar June Sep Dec 2016 QoQ Community Financial Services % Consumer % Total Mortgage % Auto Finance % Credit Cards % Unit Trust % Other Retail Loans % Business Banking + SME % SME % Business Banking (0.4)% Global Banking (Corporate) % Total Malaysia % 40

42 Group Deposits Growth: QoQ 31 Mar Jun Sep Dec 2016 QoQ Group Gross Deposits % Malaysia (RM billion) % Savings Deposits % Current Accounts % Fixed Deposits % Others % International % Singapore (SGD billion) (3.6)% Savings Deposits % Current Accounts % Fixed Deposits (7.6)% Others % Indonesia (Rupiah trillion) % Savings Deposits % Current Accounts % Fixed Deposits % 41

43 Key Operating Ratios: QoQ (%) 1Q 2Q 3Q 4Q QoQ 4Q FY2015 YoY Return on Equity % % Net Interest Margin bps bps Fee to Income Ratio % % Loans-to-Deposit Ratio¹ % % Cost to Income Ratio² (6.0)% 49.3 (6.0)% Asset Quality Gross Impaired Loans Ratio bps bps Net Impaired Loans Ratio (1) bps bps Loans Loss Coverage (2.8)% % Net Charge off rate (bps) (75) (85) (32) (54) 22 bps (45) (9) bps Capital Adequacy (Group)³ CET1 Capital Ratio (10) bps bps Total Capital Ratio (13) bps bps ¹ Includes investment accounts totaling RM31.54 billion for 31 Dec 2016, RM30.37 billion for 30 Sep 2016, RM30.96 billion for 30 June 2016, RM25.07 billion for 31 Mar 2016 and RM17.66 billion for 31 Dec 2015, captured under Maybank Group s management reporting of total deposits ² Total cost excludes amortisation of intangibles for Maybank Indonesia and Kim Eng. ³ The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period. 42

44 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

45 Community Financial Services: Overview of Market Share for Malaysia Market share Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Sep-16 Market vs position Dec-16 Loans Total consumer (Household) 17.5% 17.4% 17.4% 17.5% 17.6% # 2 Auto (Purchase of transport vehicles) 23.7% 23.7% 24.1% 24.7% 25.4% # 2 Total mortgage* 13.4% 13.4% 13.4% 13.3% 13.3% # 2 Credit cards** 17.5% 17.5% 17.6% 17.7% 18.0% # 1 Unit trust 51.6% 52.3% 52.3% 52.4% 51.6% # 1 Deposits Total deposits 18.3% 18.0% 18.6% ^ 17.3% ^ 18.0% ^ # 1 Total core retail deposits 20.2% 20.3% 20.4% 18.3% 17.9% ^^ # 2 Retail CASA 25.6% 26.0% 25.7% 24.7% 24.6% ^^ # 1 - Retail savings 30.8% 31.0% 30.8% 30.3% 30.3% ^^ # 1 Retail fixed deposits 17.4% 17.4% 17.7% 15.0% 14.5% ^^ # 2 Market share Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Sep-16 Market vs position Dec-16 Internet banking - Subscriber base 43.2% 42.8% 44.1% 43.5% 43.5% ^^^ # 1 Mobile banking - Subscriber base 29.1% 28.4% 28.2% 30.2% 30.2% ^^^ # 1 Internet banking - Transaction Volume 52.9% 51.8% 51.9% 51.8% 51.8% ^^^ # 1 Mobile banking - Transaction Volume 62.2% 61.8% 62.2% 63.0% 63.0% ^^^ # 1 Branch network 20.0% 20.0% 19.3% 19.3% 18.8% # 1 ^ Total bank deposits inclusive of investment asset ( IA ). ^^ With inclusion of IA, our Bank s market share would be 20.0% for Total core retail deposits, 25.4% for Retail CASA, 30.3% for Retail Savings and 17.4% for Retail fixed deposits. ^^^ Market share as at Sep-16. * Refers to housing, shophouse and other mortgage loans ** Credit cards market share refer to receivables for commercial 44

46 RM billion RM billion RM billion RM billion Community Financial Services: Overview of Malaysia Loans Portfolio Consumer loans grew 5.8% YoY to RM155.3 billion led by mortgage growth of 8.4% Domestic Industry Average 5.3% YoY Dec 15 Sep 16 Dec 16 Mass customer cross sell ratio improved to % YoY +2.2% QoQ Business Banking + SME loans grew by 9.1% YoY to RM39.1 billion led by SME growth of 23.1% Dec 15 Sep 16 Dec 16 HNW and Affluent customer TFA grew 9.9% YoY +9.1% YoY +1.1% QoQ Dec 15 Sep 16 Dec 16 TFA Product per customer 0.2% YoY Customer classification: HNW (IA>RM3m, TFA >RM4m); Affluent (IA between RM 250K to RM3m, TFA between RM1m to < RM4m) TFA: Total Financial Assets (Deposits, Investments, Financing & Protection), IA: Investable Assets (Deposits & Investments) Dec 15 Sep 16 Dec 16 TFA Product per customer +9.9% YoY

47 RM billion RM billion RM billion Community Financial Services: Overview of Malaysia Deposits Portfolio CFS deposits grew 3.7% YoY to RM214.0 billion Domestic Industry Average 4.8% YoY Consumer deposits grew 6.7% to RM136.8 billion % YoY +1.7% QoQ Dec 15 Sep 16 Dec % YoY +1.6% QoQ Dec 15 Sep 16 Dec 16 Business Banking + SME deposits eased 0.9% to RM77.2 billion % YoY +1.8% QoQ CFS deposits growth of +3.7% YoY, mainly contributed by consumer deposits growth of +6.7% as fixed deposits grew +8.4% YoY. Business banking + SME deposits showed a slight dip YoY, arising from client redemption Dec 15 Sep 16 Dec 16 46

48 Community Financial Services: Overview of CFS Malaysia Asset Quality CFS GIL increased marginally to 2.1% due to a slight uptick in Business Banking (BB) GIL Consumer GIL remained stable at 0.5%, lower than the industry average of 1.1% 4, , , , , , , , , , , % 2.0% 2.1% Dec 15 Sep 16 Dec 16 GIL RM'm GIL % 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% % 0.5% 0.5% Dec 15 Sep 16 Dec 16 GIL RM'm GIL % 2.0% 1.5% 1.0% 0.5% 0.0% Business Banking + SME GIL increased to 8.7% 4, , , , , , , , , , % 7.9% 8.7% 2.0% 2.1% 2.0% Dec 15 Sep 16 Dec % 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Total GIL ratio for consumer financing portfolio remained stable at 0.5%. Combined GIL ratio for Business Banking + SME showed an increase to 8.7%, due to impairments from business banking. GIL RM'm GIL % for SME + BB GIL % for SME 47

49 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

50 Global Banking: Overview of Malaysia Corporate Banking Portfolio Total GB loans increased 6.8% YoY to RM78.8 billion Trade Finance market share ¹ RM billion Term Loan (4.7)% YoY 25.0% 25.5% 25.3% 25.5% 26.2% 41.1 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Short Term Revolving Credit % YoY ¹ Market share of total trade products (On Balance Sheet items, Contingent Liabilities and Others) Corporate Banking GIL ratio at 1.85% as at Dec % 2.47% Trade Finance and Others (4.0)% YoY 1.47% 1.75% 1.85% Dec'16 Sep'16 Dec'15 Note: Term Loan now includes foreign currency denominated accounts, while Trade Finance and Others, which previously included Short Term Revolving Credit, is now combined with Overdraft. Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 49

51 RM million RM million RM billion Global Banking: Overview of Group Global Markets Portfolio Global Market s revenue grew by 25.8% YoY Group Securities Portfolio grew 5.5% YoY Revenue Profit before Tax +5.5% 2, , % 3, , , % 2, , , FY2015 FY2015 Net interest income Non-interest income Note: PBT & Revenue includes regional performance Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Govt. Securities PDS/Corp Bonds Others Others (NIDs, BA, etc) 9.2% PDS Foreign 17.0% 25.6% PDS/Corp Bonds -Domestic Group Securities Portfolio: 45.2% Foreign Securities as at FY2015 RM111.9 billion Government Securities -Domestic 24.6% 23.6% Government Securities -Foreign Others (NIDs, BA, etc) 7.9% PDS Foreign 20.3% 23.2% PDS/Corp Bonds -Domestic RM billion Government Securities -Domestic 23.7% 24.9% Government Securities -Foreign 37% of GM PDS (Maybank Conventional Malaysia) rated AA or above as at <A 0.9% A 0.8% AA 21.6% AAA Commercial Papers 6.8% 23.8% FY2015 RM17.7 billion SA (Govt. Guaranteed) 46.1% A <A 0.4% Commercial 0.1% Papers AA 0.7% 20.6% SA RM21.8 (Govt. Guaranteed) billion AAA 62.0% 16.2% 50

52 RM Million Global Banking: Overview of Group Investment Banking Portfolio Phillipines 5% Total Income Hong Kong 5% Others 4% Total Income for Maybank Kim Eng +1% Indonesia 3% Thailand 22% RM 1,498.8 mil Malaysia 33% 1, ,498.7 Singapore 28% FY2015 Brokerage Market Share by Country Country Rank Market Share Trading Value (USD mil) Malaysia % 22,372 Singapore N/A 2 3.9% 14,713 Thailand 1 8.2% 52,318 Fee-based Income for Malaysia Placement Fees 4% Advisory Fees 28% Underwriting Fees 1% Arrangers Fees 11% Indonesia % 9,126 Philippines 8 4.8% 3,707 Hong Kong Tier 2 0.9% 38,551 Agency/ Guarantee Fees 4% Vietnam >10 2.2% 1,445 Note: - Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings 1 Total Income includes shadow income of fee income from GB under MIS framework and NII from leverage financing. 2 YTD Ranking is not disclosed in SGX Other Fee Income 7% Brokerage 45% 51

53 Global Banking: Notable Deals for 52

54 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

55 Maybank Singapore: P&L Summary (SGD mil) FY2015 YoY Net Fund Based income (13.3)% Net Fee Based income % Net income (4.6)% Overhead expenses (349.84) (350.89) (0.3)% Operating profit (7.8)% Profit before taxation (40.0)% Net fund-based income declined by 13.3% as higher funding costs led to a compression in net interest margin. Fee-based income increased 18.1%, boosted by higher treasury income and gains from investment securities. Lower overhead expenses of 0.3% arising from tightening of non-essential spend. While operating profit declined by 7.8%, PBT decreased by 40.0% to SGD million. This was due to additional loan loss allowances being set aside as we took proactive measures to restructure some accounts amid the weaker economic environment. 54

56 SGD billion Maybank Singapore: Overview of Loans Portfolio Total loans expanded by 4.5% YoY to SGD 38.9 billion as at 31 December 2016 Consumer loans rose 1.2% YoY to SGD 15.0 billion. Gains were recorded across all segments, in particular car loans Business loans expanded by 6.7% YoY to SGD 23.8 billion on the back of stronger lending to general commerce and non-bank financial institutions. Diversified Loan Portfolio Dec 15 Dec % Consumer 39% Corporate 61% Other (Consumer) Car Loan Housing Loan Others (Corporate) Non-Bank financial Inst General Commerce Building & Const Gross impaired loan ratio rose to 1.36% as at Dec Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 GIL Ratio NIL Ratio Maybank Singapore loans rose 4.5% YoY, ahead of industry growth of 0.5% % YoY change 9.9% 10.5% 6.0% 4.9% 4.5% 0.4% -1.9% 3.4% 4.2% 0.0% 0.5% -5.4% -3.6% -5.0% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Maybank Singapore Growth Industry Growth 55

57 SGD billion SGD billion Maybank Singapore: Overview of Deposits Portfolio Consumer deposits account for 54% of deposits Robust CASA growth of 35.3% YoY +4.5% YoY Consumer 54% Consumer - Time Deposits Consumer CASA Time Deposits Demand Deposits Savings Corporate 46% Business Time Deposits CASA Ratio: 27.5% Business CASA Dec-15 Dec-16 Dec-15 Dec-16 Maybank Singapore deposits up 4.5% YoY, slightly ahead of the 4.2% increase in system-wide deposits % YoY change 16.8% 11.5% 10.8% 10.0% 6.4% 9.2% 1.5% 4.6% 18.2% 18.7% 4.5% 4.1% 1.0% 4.2% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Deposits expanded by 4.5% YoY to SGD 45.5 billion as at 31 December Consumer deposits increased by 2.9% to SGD 24.5 billion, led by a 33.0% rise in CASA Meanwhile, business deposits advanced by 6.4% to SGD 21.0 billion on the back of a 37.8% jump in CASA. Maybank Singapore Growth Industry Growth 56

58 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

59 Maybank Indonesia: P & L Summary as Reported (IDR bil) FY2015 YoY 4Q 3Q QoQ Net Fund Based income 6,608 5, % 1,116 1, % Net Fee Based income 1,967 2, % % Net income 8,575 8, % 1,138 2, % Overhead expenses (4,534) (4,458) 1.7% (379) (1,214) -68.7% Personnel (2,039) (1,954) 4.3% (230) (609) -62.2% General and Administrative (2,496) (2,504) -0.3% (149) (604) -75.3% Operating profit 4,041 3, % 759 1, % Provisions Expenses (1,595) (1,979) -19.4% (8) (596) -98.7% Non Operating Income (Expense) 165 (15) % % Profit Before Tax and Non-Controlling Interest 2,611 1, % % Income from discontinued operations 33 (102) 132.4% 33 - N/A Tax and Non-Controlling Interest (695) (403) 72.6% (236) (156) 51.2% Profit After Tax and Non-Controlling Interest 1,948 1, % % EPS - Basic (IDR) % % Note: These are presented in accordance with the classification in published accounts which is in accordance with OJK regulation No.32/POJK.03/

60 Maybank Indonesia: P & L Summary Proforma (IDR bil) Reported Reported FY2015 YoY Proforma 4Q 3 months Proforma 3Q 3 months QoQ Net Fund Based income 6,608 5, % 1,719 1, % Net Fee Based income 1,967 2, % % Net income 8,575 8, % 2,159 2, % Overhead expenses (4,534) (4,458) 1.7% (1,051) (993) 5.9% Quarterly proforma numbers show 3-months net income from WOM as income from discontinuing operations in accordance with PSAK 58 *The income reduction in 4Q16 is due to WOM s participation in the Tax Amnesty program. 59 Personnel (2,039) (1,954) 4.3% (485) (526) -7.8% General and Administrative (2,496) (2,504) -0.3% (566) (467) 21.3% Operating profit 4,041 3, % 1,108 1, % Provisions Expenses (1,595) (1,979) -19.4% (309) (490) -36.9% Non Operating Income (Expense) 165 (15) % % Profit Before Tax and Non-Controlling Interest 2,611 1, % % Income from discontinued operations 33 (102) 132.4% 1* % Tax and Non-Controlling Interest (695) (403) 72.6% (252) (150) 67.3% Profit After Tax and Non-Controlling Interest 1,948 1, % % EPS - Basic (IDR) % %

61 Maybank Indonesia: Portfolio Overview Loans composition (Consolidated) proforma (Note 1) IDR Trillion 7.0% YoY Net Interest Margin (Consolidated) % 4.45% 4.61% 4.40% * Dec-14 Dec-15 Dec-16 Dec-14 Dec-15 Dec-16 Global Banking Community Financial Services (CFS) * Proforma (exclude WOM) Asset Quality (Consolidated) - proforma Deposits (Consolidated) IDR Trillion 3.0% YoY 3.85% 3.85% 3.82% 3.93% 3.54% % 2.63% 2.49% 2.38% 2.31% Dec-15 Mar-16 Jun-16 Sep-16 Dec Dec-14 Dec-15 Dec-16 Impaired Loans - Gross Impaired Loans - Net Current Account Saving Account Time Deposit 60 Note 1 : Proforma numbers exclude WOM balance in 2014, 2015, and 2016

62 Maybank Indonesia: Overview of Maybank Finance Operations Revenue and Profit Before Tax IDR billion Financing IDR billion ,803 5, Dec-15 Revenue Dec-16 Profit Before Tax Dec-15 Dec-16 Asset Quality Unit Financing (unit) 0.35% 0.45% 0.44% 0.42% 0.39% 50,631 47,529 51,212 47, % 0.36% 0.36% 0.34% 0.32% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 New Used Total NPL Net NPL Gross Dec-15 Dec-16 61

63 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

64 RM billion Islamic Banking: Performance Overview Group Islamic Banking Financial Performance 63 RM million FY2015 YoY Total Income 3, , % Profit Before Tax 1, , % Financing & Advances 159, , % Deposits & Investment Account: Deposits from Customers Maybank Islamic: Key Financial Ratios 145, , % 113, , % Investment Account 31, , % Group Islamic Banking s performance has improved YoY, deriving from key markets in Malaysia, Indonesia and Singapore Key Financial Ratios FY2015 Net Profit Margin (NPM) 1.82% 1.86% Total Capital Ratio (TCR) % % Cost to Income Ratio (CIR) 36.30% 37.47% Direct FDR % 96.5% Adjusted FDR with LTIF % 87.3% Note: 1) Direct Financing to Deposits Ratio (FDR) comprising gross financing against deposit and Investment Account (exc. RPSIA assets and liabilities) 2) Adjusted FDR comprising adjusted financing against adjusted deposit (exc. RPSIA assets and liabilities) including long term interbank funding (LTIF) Maybank Islamic: Total Gross Financing grew by 14% to RM149.9 billion 2% % AITAB Mortgage Term Financing Others (CFS) Term Financing Others (GB) CFS: 10% Dec-15 Maybank Islamic contribution to Maybank Malaysia Loans and Financing as at December 2016 Maybank Islamic 54.5% 10% Maybank Conventional Malaysia 45.5% 22% Year 10% 19.6 GB: 26% Dec-16 37% 26.8 Contribution Dec % Mar % Jun % Sep % Dec %

65 Islamic Banking: Market Share Maybank Islamic Market Share (Malaysia) Market Share by Product (Malaysia) 35.0% 33.6% 33.5% 33.2% 33.8% 33.9% 34.4% Key Products Dec-16 Dec-15 Automobile Financing 44.3% 42.2% 30.0% 25.0% 31.3% 30.0% 30.3% 30.3% 29.2% 27.8% Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Home 28.3% 27.7% Term Financing 30.1% 30.2% Financing Deposits & Investment Accounts Source for industry numbers: BNM Monthly Statistical Bulletin Maybank Islamic ranks No.1 by Asset Market Share in Malaysia Malaysia Asset Market Share Sept-16 Rank Maybank Islamic 30% 1 CIMB Islamic 11% 2 Public Islamic 9% 3 Source for industry numbers: BNM Monthly Statistical Bulletin Sukuk League Table Ranking December 2016 Global Sukuk League Table Market Share Amount Issues Ranking (%) (USD million) #2 Maybank 11.02% 4, MYR Sukuk League Table Market Share Amount Issues Ranking (%) (USD million) #1 Maybank 27.08% 4, Source: BNM monthly statistical bulletin and latest respective Bank s Financial Statements Source: Bloomberg 64

66 Insurance and Takaful: Performance Overview Gross Premium Life / Family (New Business) Market Share Single Premium Regular Premium Credit Premium Group Premium Total Life/Family -16.7% -22.2% 8.9% 23.7% 8.5% FY2015 AIA Ins. & Tak. Prudential Ins. & Tak. GE Ins. & Tak. Etiqa Ins. & Tak. 7.6% 15.0% 14.4% 21.5% No. 4 in Life/Family (New Business) Fire Motor MAT Personal Accident Misc Total General 9.4% -3.6% -12.7% 19.9% 29.2% -0.9% Etiqa Ins. & Tak. Allianz Insurance AmGeneral Insurance 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% General Insurance and Takaful Market Share 8.0% 12.8% No. 1 in General 10.4% Insurance and Takaful Total Life/Family & General 0 1,000 2,000 3,000 4,000 5,000 6,000 RM Million Profit Before Tax (RM million) 3.7% + 34% YoY 0.0% 5.0% 10.0% 15.0% * Market Share is for period Oct 15 Sep 16 (Source: LIAM / ISM Statistics) Total Assets (RM billion) 3.1% YoY Q FY2015 FY15 4Q FY16 Dec 15 Dec 16 PBT includes estimated transfer of RM87.5 million from Family Fund in 4Q

67 PESO Mil PESO Mil Maybank Philippines: Performance Overview Key Highlights Revenue increased by 7.2% YoY, led by higher net interest income (NII). Increase in NII contributed by higher loan income, mainly from term loans. PBT decreased by PESO 622 million or 65.4% YoY due to higher provisioning in accordance with BSP Circular 855. Gross loans rose by 5.7% YoY driven by term loans growth. Customer deposits rose by 15.1% YoY driven by growth in fixed deposits and savings accounts. Gross impaired loans ratio improved by 108bps YoY to 3.35% due to decrease in corporate loan NPL. Revenue and PBT +7.2% YoY 5, ,958.4 (65.4)% YoY FY2015 Gross Loans and Deposits +15.1% YoY Revenue PBT Key Ratios FY2015 Return on assets 0.34% 1.15% Return on equity 1.75% 7.55% Cost-to-income ratio 70.13% 69.58% Loans to Deposit ratio 83.81% 91.27% Gross Impaired Loans Ratio 3.35% 4.43% No. of branches % YoY 72, , , ,136.8 Dec 15 Dec 16 Gross Loans Customers Deposits 66

68 Table of Contents Executive Summary Results Overview Strategic Objectives, Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other segments 7. Affiliates Financial Results: 4Q and Full Year ended 31 December

69 VND Bil VND Bil An Binh Bank: Performance Overview Key Highlights Revenue increased by 20.4% YoY, mainly due to higher net interest income and fee income. PBT increased more than 100% or VND180.5 billion YoY, on the back of higher revenue. Gross loans expanded by 20.3% YoY due to higher corporate and retail lending. Customer deposits rose by 9.1% YoY mainly contributed by growth in current and savings accounts. Gross NPL ratio increased by 7bps to 1.86% YoY, arising from higher NPL. Key Ratios FY2015 Return on assets 0.40% 0.20% Return on equity 5.00% 1.90% Cost-to-income ratio 53.28% 57.86% Loans to Deposit ratio 94.88% 86.04% Gross NPL Ratio 1.86% 1.79% Revenue and PBT +20.4% YoY 2, , >100% YoY FY2015 Gross Loans and Deposits +9.1% YoY +20.3% YoY 52, , , ,195.1 Dec 15 Dec 16 Revenue PBT Gross Loans Customers Deposits 68

70 PKR Bil PKR Bil MCB Bank: Performance Overview Key Highlights Revenue and PBT Revenue and PBT dropped by 7.6% and 14.2% YoY respectively, mainly due lower net interest income (NII). The decrease in NII was mainly attributed to lower interest income from securities. Gross loans increased by 14.5%, mainly driven by growth in domestic loans (7.6)% YoY (14.2)% YoY Revenue PBT Customer deposits grew by 12.6%, mainly contributed by growth in current and savings accounts. Gross NPL ratio improved to 5.65% from 6.10%, arising from a higher loan base. FY2015 Gross Loans and Deposits Key Ratios FY2015 Return on assets 2.11% 2.55% Return on equity 18.76% 22.12% Cost-to-income ratio 40.59% 35.74% Loans to Deposit ratio 49.49% 48.67% Gross NPL Ratio 5.65% 6.10% +12.6% YoY % YoY Dec 15 Dec 16 Gross Loans Customers Deposits 69

71 Humanising Financial Services MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak Kuala Lumpur, Malaysia Tel : (6) Investor Relations Contact Dato Amirul Feisal Wan Zahir Group Chief Financial Officer Contact: (6) feisal.zahir@maybank.com Jeeva Arulampalam Head, Group Investor Relations Contact: (6) jeeva.a@maybank.com 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. 70