Investor Presentation

Transcription

1 Investor Presentation Financial Results First Half FY2012 ended 30 June August

2 Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects Financial Results: First Half FY2012 ended 30 June

3 Key Highlights: Continued Profit Growth 2 Continued revenue and profit growth for 1H FY12 Revenue 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 operations PBT 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% annualised financing growth Strong Financial Position Asset 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 2012 Liquidity improved with Group Loan to Deposit ratio declining to 86.9% from 90.1% in June 2011 Group shareholders funds of RM36.6 billion; total assets of RM492.3 billion Capital Adequacy Ratio of % (assuming a 85% DRP reinvestment rate) Exceeded ROE target for FY2012 Annualised ROE of 16.1% exceeded the target of 15.6% while Loans and Debt Securities growth was 13.8% against 15.2% target Interim dividend payout ratio of 67.9% Proposed interim dividend of 32 sen per share less 25% tax Dividend consists of 4 sen cash portion and 28 sen electable portion for the Dividend Reinvestment Plan

4 Key Performance Indicators for 1H FY12 FY2012 Target 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% * Annualised ** Loans growth in local currencies 3

5 Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects Financial Results: First Half FY2012 ended 30 June

6 2Q FY12 PATAMI rose 6.7% QoQ to RM1.44 billion with an EPS of sen Quarter RM million 2Q FY12 1Q FY12 QoQ 4Q FY11 YoY Jun 2012 Mar 2012 Change Jun 2011 Change Net interest income 2, , % 1, % Net Fund based income (Islamic Banking) % % Total net fund based income 2, , % 2, % Net income from insurance and takaful * % % Non-interest income 1, , % 1, % Fee based income (Islamic Banking) % % Total fee-based income 1, , % 1, % Net income 4, , % 3, % Overhead expenses (1,982.3) (1,994.8) -0.6% (1,962.1) 1.0% Operating Profit before allowances for losses on loans 2, , % 1, % Allowance for losses on loans (199.4) (195.9) 1.8% (47.7) 317.9% Impairment losses on securities, net (27.3) (0.5) % (114.0) -76.1% Operating Profit 1, , % 1, % Share of profits in associates % % Profit before taxation and zakat 2, , % 1, % 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, , % 1, % EPS (sen) % % * Net of insurance claims 5

7 1H FY12 PATAMI grew 21.2% YoY to RM 2.78 billion, supported by an 18.0% YoY increase in net income 1H FY12 2H FY11 Jun 2012 Jun 2011 Net interest income 4, , % Net Fund based income (Islamic Banking) % Total net fund based income 4, , % Net income from insurance and takaful * % Non-interest income 2, , % Fee based income (Islamic Banking) % Total fee-based income 3, , % Net income 8, , % Overhead expenses (3,977.1) (3,516.1) 13.1% Operating Profit before allowances for losses on loans 4, , % 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, , % Share of profits in associates % Profit before taxation and zakat 3, , % Taxation & Zakat (1,075.1) (864.6) 24.3% Minority Interest (60.9) (142.6) -57.3% Profit after Tax and Minority Interest (PATAMI) RM million Half Year 2, , % EPS (sen) % * Net of insurance claims 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) YoY Change 6

8 Strong Balance Sheet: Total Assets grew 17.4% annualised, LDR improved to 86.9% RM billion 30 Jun Dec 2011 (restated)* Annualised Growth 1 Jul 2011 (restated)* YoY Growth Cash and short-term funds % % Deposits with financial institutions % % Securities purchased under resale agreements % - - Securities portfolio % % Loans, advances and financing % % Statutory Deposits with Central Banks % % Life, general takaful and family takaful fund assets % % Other assets % % Total Assets % % Deposits from customers % % Deposits and placements of banks and FI % % Borrowings % % Subordinated debts % % Capital Securities % % Insurance & Takaful liabilities & policyholders' funds % % Other liabilities % % Total Liabilities % % Shareholders Funds % % Non-controlling interest % % Total Liabilities & Equity % % 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 7

9 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 RM billion 1H FY12 30 Jun 31 Mar QoQ 31 Dec 30 Jun YoY Annualised Growth Growth Growth Community Financial Services % % % Consumer % % % Total Mortgage % % % Auto Finance % % % Credit Cards % % % Unit Trust % % % Other Retail Loans % % % Business Banking + SME % % % SME % % % Business Banking % % % GWB (Corporate) % % % Other Loans (0.0) (0.0) -39.9% % % Total Domestic % % % International % % % Singapore (SGD billion) % % % BII (Rupiah trillion) % % % Others % % % Investment Banking % % % Gross Loans * % % % * Including Islamic loans sold to Cagamas and excludes unwinding of interest 8

10 Deposits grew 16.9% annualised (20.7% YoY), driven mainly by growth in Malaysia of 19.6% (22.5% YoY) RM bil Malaysia Singapore BII Group Annualised YoY SGD Annualised YoY Annualised YoY Rp tril Growth Growth bil Growth Growth Growth Growth RM bil Annualised Growth Savings Deposits % 11.7% % 13.4% % 9.0% % 11.0% Current Accounts % 7.6% % 17.1% % 11.4% % 9.3% Fixed Deposits % 33.9% % 25.6% % 20.5% % 26.9% Others % 26.6% % 52.1% % 27.6% YoY Growth Total Deposits % 22.5% % 23.6% % 16.3% % 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% Loans-to-Deposit Ratio 89.2% 88.9% 87.7% 88.8% 83.9% 82.6% 81.6% 86.3% 81.2% 96.4% 92.5% 87.5% 89.4% 86.6% 80.9% 91.3% 93.9% 90.7% 88.1% 95.4% 94.3% 88.4% 87.4% 86.8% 90.1% 87.5% 87.2% 86.9% Jun 09 Jun 10 Dec 10 Jun 11 Dec 11 Mar 12 Jun 12 Jun 09 Jun 10 Dec 10 Jun 11 Dec 11 Mar 12 Jun 12 Jun 09 Jun 10 Dec 10 Jun 11 Dec 11 Mar 12 Jun 12 Jun 09 Jun 10 Dec 10 Jun 11 Dec 11 Mar 12 Jun 12 9

11 Asset Quality continues to improve with net charge off rate for 1H FY12 at 28bps Allowance for losses on loans Impaired Loans Ratio % YoY 4.60% 4.67% % YoY +1.8 % QoQ % 2.99% 2.74% 4.20% 3.67% 3.34% 2.39% 2.25% 2.18% 3.23% 2.84% 2.44% 2.00% Net Impaired Loans Ratio Gross Impaired Loans ratio 1.86% 1.57% 1.28% 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 1 Jul 10 Day 1 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 10

12 RM million Group Fee-based Income increased 22.3% YoY to RM3.29 billion*. Excluding Kim Eng it increased 17.3% YoY % 2H FY11 ended Jun H FY12 ended Jun ,752 2, % 1,790 1, % % -11.5% +7.5% -40.2% % (68) Total noninterest income Commission, service charges and fees Investment & Trading Income Unrealised gain/(losses) on securities & derivatives Foreign Exchange profit Other Income Net income from Insurance Business Fee income from Islamic Operations 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 11

13 RM million Improved operating efficiency resulted in lower cost to income ratio of 47.8% 2Q FY12 1H FY12 Overhead Expenses QoQ (exc. YoY (exc. Kim YoY (exc. QoQ YoY YoY Kim Eng) Eng) 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% Admin, general expenses, fees, brokerage & establishment costs +13.1% YoY Marketing Expenses IT Expenses Personnel costs +1.0% YoY -0.6% QoQ 1,554 1,962 1,888 2,054 1,995 1, ,034 1,025 1,072 1,121 1,173 3,516 1, ,897 3,977 1, ,294 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 # # 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) 12

14 RWCR strengthened to 15.49% from 15.35% in 1Q FY12 Adjusted for dividend payment and reinvestment made under the Dividend Reinvestment Plan (DRP) 15.20% 11.68% 14.71% 10.68% 16.29% 11.57% 15.35% 10.97% Full electable portion paid in cash 14.99% 10.92% Assuming 85% reinvestment rate Full electable portion reinvested 15.49% 15.57% 11.42% 11.51% 8.77% 8.22% 9.21% 8.73% 8.63% 9.13% 9.22% 30 Jun Sep Dec Mar Jun Jun Jun 12 Core Equity Ratio* Core Capital Ratio Risk Weighted Capital Ratio 14.74% 14.86% 13.62% 13.38% 15.57% 14.46% 14.07% 13.12% # 13.19% 14.69% 13.82% 13.86% 14.54% 14.66% 30 Jun Sep Dec Mar Jun Jun Jun 12 Core Equity Ratio* Core Capital Ratio & Risk Weighted Capital Ratio 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 13

15 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 sen cash portion and 28 sen electable portion for the Dividend Reinvestment Plan. Gross Dividend (sen) and Payout Ratio (%) 76.5% 74.9% 75.0% 67.9% 60.0% 61.0% Dividend Payout Ratio %* 86.1%* Final Interim %* %* NA FY08** FY09 FY10 FY11 FP11 FY12 * 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

16 Maybank Group: Key Ratios 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 Quality Gross 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) 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%^ # Total cost excludes amortisation of intangibles for BII and Kim Eng * Assuming 85% reinvestment rate. Post-FRS 139 ^ Adjusted for dividend payment and reinvestment made under the Dividend Reinvestment Plan (DRP) ** Annualised 15

17 Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects Financial Results: First Half FY2012 ended 30 June

18 Profit before tax (RM million) Revenue (RM million) Revenue and PBT growth across most sectors +18.0% 8,238 6,984 Global Wholesale Banking (GWB) +48.6% 2H FY11 ended 30 June H FY12 ended 30 June , % 3, % +18.3% % +26.1% 1, ,569 2, % 492 Total +18.7% Community Financial Services Corporate Banking Global Markets Investment Banking (Inc. Kim Eng) International Banking Insurance, Takaful & Asset Management 3,920 3,304 Global Wholesale Banking (GWB) +42.3% 2H FY11 ended 30 June H FY12 ended 30 June % 1,558 1, % +19.9% % +54.5% 917 1, % 263 Total Community Financial Services Corporate Banking Global Markets Investment Banking (Inc. Kim Eng) International Banking Insurance, Takaful & Asset Management 17 Note: Revenue and PBT for Head Office & Others: RM720m in 1H FY12 vs RM703m in 2H FY11

19 RM million RM million Revenue grew due to higher net fund based and fee-based income Net Fund Based Income rose 15.2% +15.2% 4,944 4, % 2,458 2,317 Global Wholesale Banking (GWB) +14.7% +45.1% -15.3% -14.8% H FY11 ended 30 June H FY12 ended 30 June % 1,689 1, % 48 2,690 Total # 3,294 Community Financial Services Fee-based Income grew by 22.3% Corporate Banking Global Markets Investment Banking International Banking Insurance, Takaful & Asset Management # Includes expenditures of Head Office & Others of RM268 million for 1H FY12 and RM334 million for 2H FY11 Note: 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 FY % -14.0% Global Wholesale Banking (GWB) +82.3% 2H FY11 ended 30 June H FY12 ended 30 June % +49.7% % +32.9% -23.7% Total # Community Financial Services Corporate Banking Global Markets Investment Banking International Banking 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 Insurance, Takaful & Asset Management^ 18

20 Increasing revenue, PBT and loan contribution from international operations 1H FY2012 (Jan 12 Jun 12) International: 36% 15.5% 14.4% 5.6% Revenue RM8.24b 64.4% Profit Before Tax International: 7.8% 28% 7.1% 12.6% RM3.92b 72.5% International: 36% 21.3% Gross loans* 8.3% 6.6% RM304.0b* 63.8% 2H FY2011 (Jan 11 Jun 11) 12.7% 15.5% 3.7% RM6.98b 68.0% Malaysia Singapore Indonesia Others 5.5% 14.4% 12% 16% 68% 4% 4.7% RM3.30b 75.5% 21.3% 5.5% 7.9% RM261.5b* 65.3% International: 32% International: 25% International: 35% 19 * Including Islamic loans sold to Cagamas and excludes unwinding of interest

21 RM billion Community Financial Services: Mortgage grew 14.9% annualised with improving asset quality RM billion Continued growth despite intense competition +17.2% YoY * Asset quality continued to improve % annualised % 2.8% 2.2% 1.9% 1.6% Jun 11 Dec 11 Mar 12 Jun 12 Housing loans Shophouse loans * Industry grew 13.9% YoY as of June 2012 Jun' 11 Sep' 11 Dec' 11 Mar' 12 Jun' 12 Gross Impaired loan ratio - Mortgage Mortgage market share increased in the latest quarter 13.3% 13.2% 13.1% 13.0% Mortgage Approvals* increased in 2Q FY Jun 11 Sep 11 Dec 11 Jun 12 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 * Based on cumulative 3 months figures 20 * Industry refers to residential property and shophouses.

22 RM billion Community Financial Services: Auto Finance* business improved in volume and market share Auto Finance* grew 14.1% annualised in Jun % YoY +14.1% annualised Jun 11 Dec 11 Mar 12 Jun 12 Hire Purchase (RM billion) Non-national cars formed 65% of Auto finance* loans Asset quality remained stable with increasing market share 20.5% 20.0% 19.5% 19.0% 18.5% 18.0% 17.5% 17.0% 18.8% 19.0% 0.5% 0.6% 19.4% 0.5% 19.9% 0.6% 20.2% 0.5% Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Gross Impaired loan ratio Hire Purchase Market Share New cars still form 87% of total Auto Finance* loans 2.0% 1.5% 1.0% 0.5% 0.0% 66% 65% 64% 65% 86% 87% 87% 87% 34% 35% 36% 35% 14% 13% 13% 13% Jun 11 Dec 11 Mar 12 Jun 12 Jun 11 Dec 11 Mar 12 Jun 12 National Cars Non-national cars Used cars New cars 21 * Auto Finance data refers to hire purchase arrangements only

23 RM billion Community Financial Services: Cards continued to gain market share Cards Market Share 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% 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 Cards performance outperforming industry YoY Maybank Industry* Cardbase 1.0% -2.9% Billings 19.5% 10.1% Receivables 6.2% 5.1% M erchant Sales 18.6% 10.5% Industry figures for cards includes commercial banks and non-fi players Cards receivables % YoY -4.8% annualised Card base ( 000) 1, % YoY +0.2% annualised 1, ,474 1,473 1,471 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 22

24 RM billion RM billion Business Banking and SME: Expanding loans and deposits base Loans grew 8.2% annualised in Jun % ann Deposits growth at 10.0% on annualised basis +10.0% ann Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 SME loans* market share improving 24% 22% 20% 18% 16% 14% 12% 10% 17.0% 17.4% 19.2% 19.9% 23.2% Jun 11 Sep 11 Dec 11 Mar 11 Jun 12 * Classification of SME based on Bank Negara definition Business Banking and SME: Gross Impaired Loans Ratio continues to improve # 13.0% 13.0% 11.7% 10.6% Jun 11 Sep 11 Dec 11 Mar 12 Jun % # Note: The NPL ratio for the Business Banking and SME loans as at June 12 is 5% compared to June 11 which was 8%. 23

25 GWB: Loans Growth driven by 28.0% YoY increase in Term Loans Total GWB loans # increased by 10.5% YoY to RM62.0 billion RM billion Term Loan Trade Finance* % YoY -3.5% YoY Strong position in terms of Trade Finance Market Share 28% 27% 26% 25% 24% 23% Corporate Banking Gross Impaired Loans Ratio improved to 1.46% in June % 25.7% 24.7% 26.9% 25.8% 26.4% Jun '11 Sep '11 Dec '11 Mar '12 Apr ' % 3.89% Overdraft % YoY Jun '12 Dec '11 Jun ' % 1.46% # Total GWB loans excludes USD (COF) loans amounting to RM2.9billion * Trade Finance includes: Trade, OFCL, USD (COF) and Factoring Jun '11 Sep '11 Dec '11 Mar '12 Jun '12 24

26 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 % 1057 Non-interest income Net interest income 1, , % Comm. Papers 1% Not Rated 30% BBB & below 2% A 5% AAA 35% 2H FY11 Jun H FY12 Jun 2012 PBT 2H FY11 Jun H FY12 Jun 2012 Revenue AA 27% Group Securities Portfolio grew 8.5% annualised and 16.2% YoY Jun 11 Dec 11 Jun % YoY +8.5% Annualised Others PDS Govt. Securities Group Securities Portfolio: 39.4% foreign securities Government Securities - Domestic, 27.9% Others (NIDs, Bas etc), 7.3% PDS - Domestic, 25.3% RM70.9 billion Government Securities Foreign, 24.3% % ASEAN - 3.7% Non-ASEAN PDS - Foreign, 15.1% -36.5% ASEAN % Non-ASEAN 25

27 Maybank Kim Eng* reported a total income of RM758.4 million with Malaysia contributing 50% of the total income RM million 1H FY2012 Total Income (RM mil) Others, 19.2, 3% Hong Kong, 12.8, 2% Indonesia, 19.1, 2% Philippines, 62.3, 8% Thailand, 127.9, 17% Malaysia, 382.8, 50% Singapore, 134.3, 18% 1H FY2012 Equity Brokerage League Table by Country Total Income for Malaysia rose 122% YoY and 82% compared to 6m FP Other income Fund based Fee based H FY2012 Fee-based Income for Malaysia H FY11 6m FP11 1H FY12 Country Trading Volume (RM mil) Market Share Rank Thailand 75, % 1 Malaysia 29, % 3 Indonesia 21, % 3 Philippines 10, % 4 Singapore # 56, % 5 Hong Kong 11, % Tier 2 # Rank is estimated based on market share Primary Subscriber's Fees Agency/ Guarantee 22% Fees 1% Other Fee Income 5% Underwriting Fees 7% Placement Fees 11% Brokerage 16% Advisory Fees 17% Arrangers' Fees 21% 26 *Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings

28 Maybank Kim Eng has made big strides with several notable deals, putting it in a leading position in Malaysia 1H FY2012 Maybank IB s (Malaysia) Industry Position & Market Share Industry Rank by Value Total Value (RM bil) Deals / Issues Market Share Recent Notable Deals PT ASTRA SEDAYA FINANCE Up to IDR 5,000,000,000,000 PETRON OIL & GAS INTERNATIONAL SDN BHD MYR1,770,000,000 GT CAPITAL HOLDINGS, INC USD 501,560,000 M&A % Equity & Rights Offerings % Public Offering of Shelf Registration Bond Issuance I 2012 Joint Bookrunner, Joint Mandated Lead Arranger February 2012 Adviser Acquisition of 65% equity interest in Esso Malaysia Berhad and 100% equity interest in Exxonmobil Borneo Sdn Bhd and Exxonmobil Malaysia Sdn Bhd from ExxonMobil International Holdings Inc Mar 2012 Initial Public Offering Participating Underwriter April 2012 TANJONG POWER HOLDINGS SDN BHD Debt Markets Malaysia % Domestic Bonds 1 Debt Markets Malaysia Ringgit % Islamic Bonds 1 CIVMEC LIMITED SGD 40,400,000 Initial Public Offering Issuer Manager, Underwriter, Placement Agent April 2012 SAPURAKENCANA PETROLEUM MYR11,654,700,000 Joint Principal Adviser Merger of SapuraCrest Petroleum Berhad and Kencana Petroleum Berhad May 2012 TANJONG POWER HOLDINGS SDN BHD MYR8,500,000,000 Joint Adviser Acquisition by 1MDB Energy Sdn Bhd, of 100% equity interest of Tanjong Power Holdings Sdn Bhd in Tanjong Energy Holdings Sdn Bhd May 2012 Equity Brokerage % FELDA GLOBAL VENTURES BERHAD USD3,143,300,000 MALAYSIA AIRLINE SYSTEM BERHAD MYR2,500,000,000 GAS MALAYSIA BERHAD USD244,800,000 Source: 1 Bloomberg 2 Bursa Malaysia Initial Public Offering Joint Principal Adviser, Joint Managing Underwriter, Joint Global Coordinator, Sole Bookrunner, Joint Underwriter Perpetual Junior Sukuk Programme Sole Principal Adviser, Sole Lead Arranger, Sole Lead Manager Initial Public Offering Principal Adviser, Sole Bookrunner, Joint Underwriter May 2012 June 2012 June

29 RM billion Group Islamic Banking business grew PBT by 50.9% YoY to RM715.5 million Group Islamic Banking Income and PBT* RM million 1H 2Q FY12 2H 4Q FY11 YoY Growth Fund based income % Fee based income % Total income 1, % Allowance for losses on financing % Profit before tax and zakat % * Group Islamic Banking includes Maybank Islamic and the Group s other Islamic operations Maybank Islamic: Improving key ratios Financing to Deposit Ratio (Adjusted) Islamic Financing to Total Domestic Loans Jun 12 Dec 11 Jun % 83.7% 87.8% 28.3% 28.5% 27.4% Market Share ** Includes financing sold to Cagamas Maybank Islamic: Total Gross Financing grew14% annualised to RM55.9 billion % % % Jun 2012 Jun 2011 AITAB 30.4% 33.7% ** Mortgage 20.2% 19.3% Term financing 23.2% 22.8% % % % Gross Impaired Financing Ratio Net Impaired Financing Ratio 1.06% 1.62% 2.01% 0.79% 1.03% 1.25% ** AITAB Mortgage Financing Term Financing Others (CFS) Jun 11 Dec 11 Jun 12 Term Financing Others (GWB) Consumer: +11% Business: +22% 28

30 Etiqa: No. 1 Position in Life/Family (new business) and General Business Loss Ratio Industry Source: Loss ratio for Malaysia s Conventional business only with rolling 12 Months (Apr11-Mar12). Total Assets (RM billion) % YoY +3.6% Anualised Life/Family (New Business) Market Share Etiqa Ins. & Tak. Allianz Insurance HL-MSIG Ins. & Tak. General Market Share Etiqa Ins. & Tak. Great Eastern Ins. & Tak. Prudential Ins. & Tak. 8.2% 9.4% 14.0% 0.0% 5.0% 10.0% 15.0% 17.3% 14.7% 14.2% No. 1 in Life/Family (New Business) Source: ISM Statistics (Apr11-Mar12). No. 1 in General June 2011 Dec 2011 June % 5.0% 10.0% 15.0% 20.0% Source: LIAM/ISM Statistics (Apr11-Mar12) 29

31 Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects Financial Results: First Half FY2012 ended 30 June

32 Singapore: 1H PBT rose 7.2% YoY to SGD190m driven by higher fund and fee based income and lower net provision SGD billion Revenue and PBT rose 4% and 7% YoY respectively SGD million 1H 6M 2H 2H 1H YoY FY12 FY11 FP11 FY11 Growth Jun 12 Dec 11 Jun 11 Net fund based income % Non interest income % Total income % Provision (3.5) % Profit before tax % Diversified Loan Portfolio 'Jun 11 Dec-11 Jun % annualised Consumer 39% Corporate 61% Other (Consumer) Car Loan Housing Loan Others (Corporate) Non-Bank financial Inst General Commerce Building & Const Asset Quality improved Gross NPL ratio Net NPL ratio 0.65% 0.63% 0.62% 0.58% 0.58% 0.46%0.47% 0.53% 0.53% 0.25% 0.23% 0.09% 0.14% 0.25% 0.23% 0.33% 0.32% 0.07% Maybank Singapore loans grew at 14.4% YoY 28.6% 11.4% 25.4% 24.2% 18.4% 8.6% 14.8% 14.4% Jun- 10 Sep- 10 Dec- 10 Mar- 11 Jun- 11 Sep- 11 Dec- 11 Mar- 12 Jun- 12 Jun-10 Jun-11 Dec-11 Jun-12 Maybank Singapore Growth Industry Growth 31

33 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 % Non Operating Income (expense) % Profit Before Minority Interest & Tax % Minority Interest (0) 17 >100% Tax (150) (249) 66% PATAMI % * Presentation is as per Bank Indonesia classification 32

34 BII: Strong loans growth of 24% YoY accompanied by improved asset quality Loans composition (IDR trillion) Net Interest Margin 5.43% 5.28% 5.22% 5.51% 5.89% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Corporate SME Consumer Syariah Subsidiaries Asset Quality Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Loan-to-Deposit Ratio (Bank only) 4.15% 4.03% Net Impaired Loans ratio Gross Impaired Loans ratio 88.9% 90.4% 89.4% 2.88% 2.75% 2.27% 2.08% 2.24% 83.0% 85.8% 1.25% 1.11% 0.97% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Modified LDR (consolidated) as of Jun 12 : 82.40% Modified LDR (bank only) as of Jun 12 : 80.58% 33

35 BII: Branches and touch points expansion on track Branches and ATM ,009 1,017 1,088 1,152 1,190 1, Capital Adequacy : consolidated (credit, operational & market risk) 13.06% 12.33% 12.46% 12.71% 12.56% Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Branches ATM + CDM Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 PATAMI months 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 34

36 WOM Finance : Overall consolidated asset quality is improving. However total industry is expected to feel the impact of new regulations. Revenue and PBT (IDR billion) stand alone +1.2% Unit Financing (000 unit) Consolidated % YTD Jun'11 Total Revenue YTD Jun'12 Profit Before Tax New Used Total YTD Jun 11 YTD Jun 12 Asset Quality : First Installment Default Ratio (%) Consolidated 7.17 Financing Amount (IDR billion) Consolidated 3,072 2,814 3,3093, Q Q211 FY11 3Q Q311 FY11 4Q Q4 FY Q Q112 FY12 2Q Q212 FY12 New Used Total YTD Jun 11 YTD Jun 12 35

37 VND billion VND billion An Binh Bank: PBT rose 15% YoY 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. Revenue and PBT +7% 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 H 2QFY11 FY2011 Gross Loans and Deposits % H 2QFY12 FY2012 Revenue PBT 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. 25, , % 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% 19, , % Loans Customer Deposits Loans to deposit ratio 55.58% 73.82% NPL Ratio 3.83% 4.51% Net Interest Margin 4.96% 5.71% As at Jun June 11 As at Jun 30 June

38 PKR million PKR million MCB Bank: PBT rose 7.3% YoY 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. Revenue and PBT -0.3% 26, , % 16, , H FY11 1H FY12 Gross Loans and Deposits +7.4% 522, ,949.5 Revenue PBT Key Ratios June 2012 June 2011 Return 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% 281, , % As at Jun June 11 As at Jun 30 June Gross Loans Customer Deposits 37

39 Investor Presentation Executive Summary Financial Performance Business Sector Review Country Review Economic Update and Prospects Financial Results: First Half FY2012 ended 30 June

40 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Malaysia: Sustained Economic Growth for 2012 Around 5% growth in 2012, thanks to resilient 5.1% expansion in 1H 2012 (2011: 5.1%) amid robust domestic demand 2Q12 GDP: Quarterly GDP and annual growth rate +5.4% YoY (3) (6) 90 (9) 12 Inflation expected to moderate to 2% in 2012 (2011: 3.2%) CPI and components (% YoY) Transport (RHS) Food & Non-Alcoholic Beverages July 12 CPI: +1.4% YoY (5) (10) (15) (20) Utilities, Housing & Other Fuels (25) 5 0 RMb (LHS) % YoY (RHS) % QoQ (RHS) Volatile MYR/USD since mid-2011 Ringgit Malaysia per USD RM3.13 per USD as at 15 th Aug 2012 OPR expected to remain unchanged at 3% until end of SRR OPR OPR and SRR 25bp hikes in OPR in Mar, May, July 10 and May 11 SRR OPR 39

41 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 RM billion Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 RM billion RM billion Malaysia: Banking Sector to Remain Healthy Total Loans grew 12.6% YoY in June 12 (Maybank Domestic:13.3%) 1,200 1,100 1, Total Loans Total Loans YoY Growth Household YoY Growth Business YoY Growth 20% 15% 10% 5% 0% Total Deposits grew 12.6% YoY (Maybank Domestic: 22.5%) 1,400 Total Deposits Total Deposits YoY Growth 25% 1,300 20% 1,200 15% 1,100 1,000 10% 900 5% 800 0% Capital Adequacy remains strong at 14.7% in June 12 (Maybank Domestic: 15.4%) 17% 15% 13% 11% 9% 7% Risk Weighted Capital Ratio Core Capital Ratio 14.7% 12.9% Impaired Loans RM23.8b, Net Impaired Loans ratio: 1.53% Impaired Loans Net Impaired Loans Ratio 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 40

42 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Singapore: External Headwinds to Challenge Growth in H 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 H 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 H 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. 50% 40% 30% 20% 10% 0% -10% Loan Growth expected to moderate to 10%-15% in 2012 % YoY Growth Real GDP growth for 2012 expected to be 1.5% 2.5% (2011: 4.9% ) Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 Real GDP (S$B) 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 % YoY Growth (RHS) 2Q 12 (E) 3-month SIBOR to range between 0.35%-0.45% in (5) Total Loans Business Loans Consumer Loans 3-month SIBOR 41

43 Indonesia: Domestic Demand Supporting Growth GDP growth was sustained at above 6% in H (6.3% YoY), on the 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 and slowdown in exports, prompting Bank Indonesia to intervene in the market to stabilize the currency. We expect IDR/USD exchange rate to end 2012 at 9,600. Amid stable growth momentum, moderate inflation rate and pressures on IDR so far this year, Bank Indonesia maintain its key policy rate at 5.75%. Loans growth is expected to grow 20% - 24% by the end of 2012 with the investment segment driving growth. NPL is expected to reach 2%-3% for (y-y) 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% Q Q Real GDP growth: Improving growth Q Q Q Q Q Q Q % Q % 25.0% Bank's loan growth: Increase 25.3% y-y in June % (y-y %) Bank Indonesia maintain key policy rate at 5.75% Inflation y-y BI policy rate 20.0% 15.0% 10.0% Loan 20.9% Core Inflation y-y 5.0% % Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12 42

44 Other key priorities for 2H FY 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 Maybank DRP programme to continue as a strategic capital management tool after Dividends 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 43

45 Prospects 44 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 Maybank is well prepared to comply with the BNM transition requirements for 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.

46 MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak Kuala Lumpur, Malaysia Tel : (6) Investor Relations Contact Mohamed Rafique Merican Group Chief Financial Officer Contact: (6) rafique@maybank.com.my Narita Naziree Head, Group Strategy Management Contact: (6) naritanaziree.a@maybank.com.my Raja Indra Putra Head, Investor Relations Contact: (6) rajaindra@maybank.com.my 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. 45