AmBank (M) Berhad Group

Transcription

1 AmBank (M) Berhad Group AMMB Holdings Berhad DEBT INVESTOR PACK: RM7.0 BILLION SENIOR NOTES ISSUANCE PROGRAMME 25 th FEBRUARY 2010

2 Agenda Overview & strategy 9MFY2010 Results summary Conclusion Highlights of RM7.0 billion Senior Notes Issuance Programme Appendix: i. Capital, Funding, Liquidity & Government Guarantee ii. Business highlights iii. Corporate info (rating, structure) AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

3 AmBank Group Snapshot AmBank Group, Gross Loans : RM bil 11.1% Proud banking heritage spanning over 30+ years A top 20 listed company on the Bursa Saham Malaysia (market cap ~RM15.07 billion) & rank 188 (global 1000 banks by market cap) Top 4 largest listed banking group (market cap) in Malaysia with diversified business fundamentals Well capitalized with Tier 1 CAR of 9.8% and total RWCAR of 15.3% ANZ, our strategic partner, one of only 11 AA rated banks in the world AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

4 On track to deliver revised improved FY2010 earnings guidance Staying Ahead Sound 9MFY2010 performance Higher revenues Better-than-expected loans growth Higher FY2010 PATMI guidance ( RM950 mil) Key focus: Medium Term Aspirations (MTA) Business Segment Performance Sound Divisional profits Investment Banking : capital market recoveries Assurance : diversified portfolio in Life and General Better asset quality : higher LLC and lower NPL Capital, Risk & Funding Well capitalized (Tier 1 CAR: 9.8%, RWCAR : 15.3%) Proactive risk management Implement FTP, ALM disciplines, Basel II and FRS Priorities for 2010 Profitable growth, diversification and rebalancing focus Dynamic focus : volume vs price trade offs & asset quality Leverage market leading positions & capital markets recovery Medium term : target cost efficiencies, continue investments Longer term plans : to disclose during FY2010 results AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

5 Risk, Capital & Funding Profile Growth Performance Strong 9MFY2010 results, sets good foundations for FY2010 AmBank Group (AMMB Holdings Berhad) Profit after Tax & MI 9MFY mil 9MFY mil Change Q2FY10 Q3FY10 Underlying PATMI growth : 17.2% 12.6% mil mil ROE 12.4% 11.9% -0.5% 11.1% 11.6% EPS (basic, annualised) 33.2 sen 35.4 sen 6.6% 32.9 sen 35.3 sen Net Lending / Financing 55,997 mil 63,873 mil 14.1% 60,437 mil 68,873 mil Customer Deposits 59,523 mil 66,787 mil 12.2% 65,302 mil 66,787 mil CASA 6,727 mil 8,228 mil 22.3% 7,611 mil 8,228 mil Net NPL / NPF Ratio 2.7% 1.8% -0.9% 2.2% 1.8% RWCA 13.0% 15.3% 2.3% 15.7% 15.3% Tier 1 7.9% 9.8% 1.9% 10.1% 9.8% LD Ratio 94.1% 95.6% +1.6% 92.6% 95.6% AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

6 What is ahead Malaysia: Cautious but optimistic Increasing global optimism but risks linger Gradual Malaysian economic recovery GDP : 2009 : -2.5%, % + Fiscal spending (RM 67 billion) + Monetary policies, better-than-expected exports Progressive interest rate hike commencing early 2010 Industry : What is Ahead Higher lending & RWA growth : government spend, private consumption Competition: strong and some irrational pricing Upside : Capital market recoveries BIS / BASEL III discussion to intensify AMMB: Tailwinds emerging but risks linger Strategic themes provided resilience Leverage economic upturn in 2010 Full MTA achievement delayed : BIS/BASEL requirements Enhanced risk, governance and systems Group support from ANZ, our strategic partner AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

7 Differentiated Growth Strategic framework and MTA (medium term aspirations) Strategic framework and MTA (medium term aspirations) De-risk Diversify De-risk + Diversify Low Moderate High Strategic focus : Maintain viable growth Rebalancing focus (ISLAMIC AND CONVENTIONAL BANKING) AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

8 Strategy & outlook for FY2010 refined for improving market conditions Overall Retail Banking Business Banking Investment Banking Corporate & Institutional Banking Note : Modifications made to previous strategy and outlook are in italics Maintain profitable growth and rebalancing focus via executing to our strategic agenda Income diversification, cost management, deposit growth and enhanced risk disciplines key priorities for FY2010 Position business for potential economic recovery towards beginning 1Q2010 Currently evaluating medium to long term strategic plans and options Maintain asset growth focus on profitable segments whilst growing deposits Expect higher income growth from historical fixed income assets (under FTP) Expect increased delinquencies & credit costs, though lower than previously anticipated Enhanced focus on risk management and collections Expect minimal profit growth for FY2010 Focus on building a sustainable asset base targeted towards stronger industry segments & with greater diversification Proactively manage existing accounts to mitigate higher risk of default Enhance focus on deposits & transaction based fees Expect rapid FY2009 profit growth to moderate in FY2010 More stable economic environment with equity and debt market activities improving Focus on core expertise in advisory & capital market activities Expect rising profit performance over FY2009 Assurance General Stable profits, & MAA business acquisition if proceeded with, will bring in synergies later Life Expect good growth via revenue increase & efficiency improvements over FY2009 Markets Biz Risk & Financial Governance Focus on project financing with government support, GLC s and large MNC s Deepen customer relationships to generate fee incomes & advisory mandates Enhance focus on capital efficient business growth & loan pricing to reflect economic risks Expect an improved profit performance over FY2009 Focus on reducing volatile exposures & diversifying revenues Market disruption not expected to recur leading to improved fixed income profit performance Expect Markets FX and Derivative businesses to contribute to income growth Implement retail tools including 3G scorecards, PD & LGD models Implement new non-retail PD, EAD and LGD models, financial spreading tool & security indicators (collateral management) Implement new FTP & ALM disciplines, Basel II, FRS requirements & review adoption of the proposed BIS/Basel III capital & liquidity framework (2012) AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

9 On track to deliver revised improved FY2010 earnings guidance AmBank Group (AMMB Holdings Berhad) FY 07 FY 08 FY 09 9MFY 10 FY 2010 Medium Term Aspirations (MTA) PATMI Reported : -RM282.5 mil Underlying : RM556.9 mil Reported : RM668.5 mil Underlying : RM837.4 mil Reported : RM860.8 mil Underlying : RM840.7 mil Reported : RM766.9 mil Underlying : RM777.9 mil RM950 mil Previously RM mil ~ 12% - 15% CAGR ROE Reported : -5.8% Underlying : 10.2% Reported : 11.5% Underlying : 12.7% Reported : 11.7% Underlying : 11.4% Reported : 11.9% Underlying : 12.0% circa 11.5% Previously 11% FY2012 : circa 15% MTA : 17 20% CTI Reported : 37.1% Reported : 39.6% Reported : 43.0% Reported : 40.8% 42% - 43% circa 40% Previously 45% Net NPL Ratio Dividend gross / payout Reported : 6.2% Reported : 3.7% Reported : 2.6% Reported : 1.8% 2.0% - 2.5% 5.0 sen / share (loss year) 6.0 sen / share 18.3% 8.0 sen / share 19.0% N/A Previously 4% 10.0 sen / share FY2012 : 2-3% MTA : below system Payout % system average Note: Underlying performance of PATMI and ROE for FY07 and FY08 adjusted for one-off impacts including restatement as if AmInvestment Group Berhad was a 100%-owned entity of AMMB MTA: exclude adoption of new proposed capital framework (BIS / Basel III 2009) in 2012 AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

10 AmBank (M) Berhad Group: 9MFY2010 Results summary AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

11 Risk & Capital Growth Performance AmBank (M) Berhad Group: Commendable financial performance FY06 FY07 FY08 FY09 9M FY09 9M FY10 Total Income* Profit after Tax & MI (PATMI) 1,941 mil 1,943 mil 2,214 mil 2,439 mil 1,770mil 2,191 mil 238 mil (362) mil 466 mil 701 mil 566 mil 600 mil Driven by revenue growth ROE 7.2 % % 13.6 % 13.8 % 15.8 % 16.5 % Total Assets Net Lending / Financing Customer Deposits CASA 56,409 mil 62,047 mil 64,725 mil 84,342 mil 81,212 mil 88,971 mil 40,737 mil 43,466 mil 47,950 mil 56,740 mil 55,335 mil 63,570 mil 32,495 mil 37,136 mil 41,536 mil 63,947 mil 50,669 mil 67,327 mil 4,498 mil 5,320 mil 6,249 mil 6,750 mil 6,720 mil 8,222 mil Balance sheet increase in FY09 due to vesting the majority of AmInvestment s fund-based assets (RM13b) and loans (RM4b) Net NPL / NPF Ratio 9.1 % 6.2 % 3.6 % 2.6 % 2.8 % 1.8 % NPL close to system average RWCA Tier 1 LD Ratio 12.2 % 10.3 % 13.1 % 14.6 % 12.6 % 14.9 % 7.1 % 5.9 % 7.1 % 9.3 % 7.5 % 9.4 % % % % 88.7 % % 94.4 % Stronger capital base to meet ensuing challenges and support growth Note *: Total income excludes profit equalization reserves (PER) Source: Financial numbers not restated with latest available comparatives AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

12 AmBank (M) Berhad Group : Sound profit growth, with conservative provisioning Business Performance Income : Retail and Business Banking recorded good growth in incomes Recovery in capital and equity markets contributed to higher investment and trading incomes Expenses: Reflects salary and staffing increases, additional bonus accrual, ongoing medium term investments and CPI, but within CTI targets Provisions : Higher GP stronger loans growth Pro-active provisioning to account for potential lag effects of economic downturn Provisions include PER, impairment losses and provisions for commitment and contingencies 9MFY09 results Favourable growth in 9MFY10 Unfavourable growth in 9MFY10 AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

13 AmBank (M) Berhad Group: Improved PATMI PATMI: Growth contributed by all business divisions except CIB RM'mil 9MFY09 9MFY10 9MFY10 vs 9MFY09 Business Performance Retail Banking Division % Business Banking Division % Corporate & Institutional.Banking (CIB) 3 Operating Segments :.Reported PATMI 1 (78.0%) (15.0%) (7.0%) Net Assets 2 : Growth contributed by CIB and Business Banking % (75.3) (66.4) +11.8% Focus on profitable segments Business Banking recorded lower provisions CIB impacted by higher general provisions on stronger lending performance G G PATMI composition at AmBank Group level: Retail Banking : 61.9% Business Banking : 11.9% Investment Banking : 11.9% Corp & Institutional Bkg : 7.5% Assurance : 6.8% Retail focus on preferred viable segments in a highly competitive environment Business and SME growth focusing on more stable sectors G CIB s growth focusing on project financing with government support, GLC s and large MNC s 9MFY09 results Favourable growth in 9MFY10 Unfavourable growth in 9MFY10 1 Bracket denotes composition of contribution to PATMI by business segment 2 Net Assets : net lending & net financing (net of IIS, SP and GP) 3 Operating segments include group treasury and markets, loan rehab units, shareholders fund, corporate & share services AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

14 Better asset quality and decreasing quantum of historical issues Gross NPL/NPF by Segments Gross NPL / NPF by Segments RM'bill Retail Business Credit & Leasing Investment / Corporate Banking Non-Performing Loans/Financing Non-Performing Loans / Financing NPL ratio 3,000 2,400 1,800 Mar 2007 Mar 2008 Mar 2009 Dec % 3.0% 2.7% 2.5% 2.1% 1.7% 42.5% 22.5% 23.2% 23.1% 12.1% 2.9% Stable NPL level despite economic stresses from the recent global financial downturn Continuing business NPL s better than system levels Historical business gross NPL s constitute circa 23% of the total portfolio 1, ,859 1,706 1,728 1,314 1,162 1,100 1, Gross NPL Net NPL Gross NPL Net NPL RM' mil Continuing Business Historical Business Mar 08 Mar 09 Dec 09 Note : 1 Historical NPL s comprise legacy non-performing loans from entities acquired by the Group prior to and during 2002, and Arab-Malaysian Credit Berhad AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

15 AmBank (M) Berhad Group: Lower new gross NPL/NPF formation, recoveries, write-offs and conversions % New Gross NPL/NPF to Gross Loans /Financing 2.40% 1.80% 1.20% 0.60% % Gross NPL/NPF Conversion to Gross Loans/Financing 2.00% 1.60% 1.20% 0.80% 0.40% 0.00% 0.00% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 % Recoveries to Avg Gross Loans/Financing 0.60% % Write-Offs to Avg Gross Loans/Financing 2.00% 0.40% 1.50% 1.00% 0.20% 0.50% 0.00% Q1 Q2 Q3 Q4 0.00% Q1 Q2 Q3 Q4 FY2006-FY2007 FY2008 FY2009 FY2010 AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

16 AmBank (M) Berhad Group: Improving trends on NPL/NPF ratios & loan loss coverage despite recent economic challenges Asset Quality Indicators % 65.5% 74.8% 92.6% 100.0% 34.1% 50.0% % FY2006 FY2007 FY2008 FY2009 9MFY2010 Gross NPL Net NPL Loan Loss Coverage -50.0% % % % Proactive collection activities Tightened risk assessment Led by experienced team FY2006 FY2007 FY2008 FY2009 9MFY % 11.2% 10.0% 8.0% 9.1% 9.9% 6.0% 4.0% 2.0% 0.0% 1.8% 6.2% 3.3% 5.8% 3.6% 1.2% 4.1% 2.6% 0.6% 3.4% 1.8% 0.9% Gross NPL Ratio Net NPL Ratio Net Provisions Charge FY2006 FY2007 FY2008 FY2009 9MFY2010 Net Provisions Charge Gross NPL ratio Net NPL ratio AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

17 AmBank (M) Berhad Group: Focus on viable segments and diversification Gross Loans/Financing movement (before netting Islamic financing sold to Cagamas) Loan Composition % Retail (66%) Business / Corporate (33%) 37.0% 19.8% 3.5% 1.4% 1.4% 3.1% 16.9% 13.6% 2.2% % % % % 9.0 Retail: targeting profitable segments 5 0 RM' bil % Auto Financing Mortgage Asset Financing Credit Cards Line of Credit Personal Loans to civil servants Dec % 10.4% Mar % 3 0 Business Banking (ex GLR) 4.5 Corporate & Institutional Banking 23.7% Business & CIB loan rehab Business & Corporate: harness synergies via deepening customer relationships 1.4% Others By Customer Type 62.0% Individuals By Interest Rate % FY2006 FY2007 FY2008 FY2009 9MFY2010 Fixed Rate 69% 66% 66% 60% 57% 10.5% SME Variable Rate 31% 34% 34% 40% 43% 26.1% Business Dec-09 AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

18 AmBank (M) Berhad Group: Positive income trends Total Income Gross Loans/Financing & NIM/NFM % % % % 2.82% % 3.2% 2.7% 2.2% 1.7% RM mil FY2006 FY2007 FY2008 Average per quarter FY2009 9M FY2010 Total Income Total Provisions RM' bil FY2006 FY2007 FY2008 FY2009 9MFY2010 Gross Loans Net interest margins (%) 1.2% 0.7% 0.2% -0.4% 20% 10% 0% Non Interest Income Composition (%) 14.6% 16.9% 13.8% 9.0% 7.8% 7.8% 9.2% 8.8% 6.9% 7.3% 7.1% 1.3% 4.0% 4.9% FY2006 FY2007 FY % FY2009 9M FY2010 Income: performance reflecting improved contributions across all segments Provisions: to institute more proactive collections management -10% Non interest income Fee Income Investment Income AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

19 Improved earnings and returns ratios for 9MFY2010 AmBank Group AmBank (M) Berhad Group ROE, % 9MFY10 / FY09 change 0.2% FY 09 / 08 change 0.2% ROE, % 9MFY10 / FY09 change 2.7% FY 09 / 08 change 0.2% -5.8% 11.5% 11.7% 11.9% -10.8% 13.6% 13.8% 16.5% Maintaining profitability despite economic disruptions FY2007 FY2008 FY2009 9MFY2010 FY2007 FY2008 FY2009 9MFY2010 ROA, % 9MFY10 / FY09 change 0.11% FY 09 / 08 change 0.02% ROA, % 9MFY10 / FY09 change 0.05% FY 09 / 08 change 0.13% -0.17% 1.02% 1.04% 1.15% -0.61% 0.74% 0.87% 0.92% AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

20 Conclusion: AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

21 Concluding remarks 1. Top 5 Banking Group in Malaysia with diversified business fundamentals, supported by ANZ, our strategic partner and 1 of 11 AA rated banks in the world 2. Good 9M result sets the foundation for us to deliver above our earlier FY 2010 market guidance 3. Sound capital levels and executing to our strategic themes will position AmBank Group to leverage economic upturn in Maintaining high vigilance on asset quality, risk disciplines, collections / restructuring activities & cost management 5. Staying focused on executing to our strategic agenda around profitable growth and portfolio rebalancing will help us achieve our medium term aspirations (MTA) AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

22 Highlights of RM7.0 billion Senior Notes Issuance Programme AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

23 Key Features of RM7.0 billion Senior Notes Issuance Programme Programme Size Credit Rating Tenure of the Programme Tenure of each Senior Note Details on Utilisation of Proceeds Lead Arranger / Lead Manager Coupon Rate Coupon Rate Frequency Mode of Issue Status of Senior Notes Up to RM7.0 billion nominal value AA3 by RAM Rating Services Berhad Up to 30 years More than 1 year and up to 10 years as the Issuer may select, provided that the Senior Notes mature on or prior to the expiry of the Programme For AmBank s general working capital requirements and to defray issuance expenses for the establishment of the Programme AmInvestment Bank Berhad To be determined prior to each issuance 1, 3 or 6 months at the option of AmBank Private placement (i.e. direct placement or bought-deal) and/or book building on best effort basis The Senior Notes will constitute direct, unconditional, unsubordinated and unsecured obligations of AmBank, and will rank pari passu and equally with all other present and future unsecured and unsubordinated obligations (excluding deposits) of AmBank, except those obligations preferred by law, liens or rights of set-off arising from the normal course of business AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

24 Principal Terms of 1 ST Issue of Senior Notes under The Senior Notes Issuance Programme Issuer Credit Rating Size of Issuance Coupon Rate Yield to Maturity Coupon Payment Frequency Tenure AmBank (M) Berhad AA3 by RAM Rating Services Berhad RM2.5 billion, with option to upsize to RM3.0 billion To be determined To be determined on bookbuilding basis Semi-annual 1 5 years Targeted Issue Date 25 March 2010 Method of Issuance Lead Manager Book building AmInvestment Bank Berhad Book building details and timeline Details: Sole book runner AmInvestment Bank Sole book co-ordinator AmInvestment Bank Method: Bid in yield terms Price guidance provided Tentative Timeline: Book open Monday, 15 March 2010 Book close (target) Tuesday, 16 March 2010 at 5pm Allocation and notices Wednesday, 17 March 2010 Senior Notes issue and settlement Thursday, 25 March 2010 AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

25 Appendix: AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

26 Appendix: Capital, Funding, Liquidity & Government Guarantee AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

27 Sound capital base to meet ensuing challenges and support growth Capital Adequacy: AMMB Holdings Berhad Note : 1 FY2007 capital adequacy ratios as per the published financial statements of AHB for FY2008 Capital Adequacy: AmBank (M) Berhad Group FY2007 FY2008 FY2009 9MFY2010* Core Equity 7.6% 7.7% 7.8% 7.8% Tier 1 8.7% 8.5% 9.7% 9.8% RWCA 12.6% 14.1% 15.2% 15.3% FY2007 FY2008 FY2009 9MFY2010 Core Equity 5.0% 6.0% 7.2% 7.2% Tier 1 5.9% 7.1% 9.3% 9.4% RWCA 10.3% 13.1% 14.6% 14.9% Innovative Tier 1 Capital Securities issued (AmBank (M) Berhad) : - Approved program = RM500 mil - Q1FY10 issuance = RM300 mil - Q2FY10 issuance = RM185 mil * CAR excludes Q3FY2010 profits; if included : Core equity : 0.3% (proforma 8.1%) Tier 1 : 0.4% (proforma 10.2%) RWCA : 0.4% (proforma 15.7%) Capital management plan : - Strengthen capital profile & buffer - Increased modeling of economic scenarios - Risk/ rewards focus within Basel II - Improvements in capital diversification - Development of dynamic dividend policy - Review of BIS/ Basel III framework AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

28 AmBank (M) Berhad Group: Funding profiles continue to improve Customer Deposit by Sources Customer Deposit by Type Customer Deposits by Sources Others 1 Government Biz enterprises Individuals Government funds grew by 5.6% in 9MFY2010. CASA composition 13.8% 14.3% 15.0% 10.6% Total 32.5b 37.1b 41.5b 63.9b Customer Deposits by Type % 67.3b Others 2 CASA FD + NID CASA grew by 21.8% in 9MFY2010 FY2006 FY2007 FY2008 FY2009 9M FY2010 Others Government Biz Enterprise Individuals FY2006 FY2007 FY2008 FY2009 9M FY2010 Others CASA FD + NID Customer Deposits: Interest Pricing Profile Deposit of Banks & Other Financial Institutions 4.8% 31.7% 63.5% 4.9% 7.0% 5.2% 6.8% 10.2% 4.5% 6.3% 4.7% 31.5% 33.1% 53.4% 53.5% 27.8% 21.8% 62.6% 66.8% Non - sensitive 1 5 years 3 12 months 0 3 months Longer term funding an ongoing issue FY2006 FY2007 FY2008 FY2009 9M FY2010 Non-interest sensitive 1-5 yrs 3-12 mths 0-3 mths Note: 1 Others: by source comprises pension and retirement, non-profit organizations and smiliar 2 Others by type comprises short-term treasury deposits, cash management system (CMS) placements and structured deposits 3 Interest pricing profile for Islamic deposit has been re-classed from non interest sensitive to relevant deposit time bands Deposits of Banks & Financial Institutions Total 13.4b 16.2b 12.6b 7.6b 7.5b Reduce dependency on inter-banking funding AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY FY2006 FY2007 FY2008 FY2009 9M FY2010 Other FIs BNM Merchant Banks Other FI s BNM Merchant Banks

29 AmBank (M) Berhad Group: Balance sheet being progressively repositioned for rising interest rates Interest / Profit Rate Risk : 0-12 months Interest / Profit Rate Risk : 1-5 years RM mil Assets Liabilities Equity Off balance sheet gap / derivatives Net mismatch Net mismatch FY2008 R FY2009 9M FY2010 FY2008 R FY2009 9M FY2010 Interest / Profit Rate Risk : > 5 years Interest / Profit Rate Risk : Non-Interest Sensitive Net mismatch Net mismatch Note : Net mismatch comprises on-balance sheet and off-balance sheet interest rate gap sensitivity Note R : Based on restated financial statement AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

30 Appendix: Business highlights AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

31 Competitive positioning: continues to strengthen Sound size and market position in key business segments Recognized brand name / strong consumer franchise Wide market reach and multiple distribution channels Well diversified Universal Banking Platform # 4 largest retail bank, : # 2 in auto finance, # 6 in mortgage, # 7 in cards and # 3 in personal financing # 5 largest Business Banking and # 5 Corporate and Institutional Banking # 4 largest Banking Group (market capitalization) Recognized as a strong consumer-focused financial institution Retail customers > 5 million, solid growth foundation and high cross-selling potential Innovative promotion and advertisement (winning several awards) # 5 Top of Mind brand recall # 4 largest branch network (189) # 3 largest ATM network (736), 334 7/11 and 125 EBC s Effective echannels of internet banking, mobile banking and 24 hours call centre ~8,000 sales agents, direct sales teams, marketing & personal bankers, financial services and insurance agents to cross-sell multi products of AmBank Group Experienced management team Strategic partnership with global partner, ANZ Repositioned for profitable growth Experienced management team with key ANZ appointments Recruitment of industry experts with a strong understanding of international and domestic best practices Moving towards performance based culture for all levels Strategic partnership with the Australia & New Zealand Banking (since May07) ANZ : 1 of the 11 AA rated global bank, listed as 1 of the 20 safest bank globally by Global Magazine, Feb09 Leveraging on ANZ: strengthen risk management, customer segmentation & solutions strategies, transactional banking and delivery and distribution channels Executing Group s strategic agenda around profitable growth and portfolio rebalancing High vigilance on asset quality, risk disciplines, collections and restructuring activities and cost management Streamline distribution channels for productivity and service efficiency AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

32 1 Sound size and market position in key business segments Retail Banking Business Banking Investment Banking Corporate & Institutional Banking* Assurance Islamic Banking # 4 # 5 # 2 # 5 # 7 # 6 # 5 Focus on profitability and build foundations for growth Leverage on existing customers, build sustainable assets & deposit bases Stay relevant & protect market share, and preserve balance sheet quality Derisk, Diversify, Differentiate, Consolidate, Grow, Build [General] [Life] To be the top 3 insurer in terms of premiums To become Islamic bank of choice #2 auto financier : 20.9% mkt-share; Best Auto Financier Award in 2007 # 6 (incl. foreign banks) in housing loans (5.6%) # 7 (incl. foreign banks) in credit cards (7.0%) # 3 in personal financing (7.1%) 5.8 million customers, >1.4 products per customer # 4 in no. of branches & # 3 in no. of ATM s Pioneer in weekend and extended banking hours Leverage on nationwide network : 4 regional business centres & 11 commercial centres; and strong relationship managers force Leader in cash management (full suite) and SME financing Expanding trade and remittance leveraging on ANZ s regional network Awards : Best Bond, Best Bond Group, Best Portfolio Manager, Best Deal, Best League Manager Ranked Top 3 in : M&A league Malaysian Ringgit Bond league Funds Under Management Participating organisations Bursa trading summary Build niche in corporate lending, focusing on GLC s and MNC s Cross-sell commercial banking products International businesses : Singapore, Indonesia & Brunei Diversify businesses in REITs and private equity # 3 in motor insurance premiums (8.6%) and # 7 in general insurance premiums (5.2%) # 6 in life insurance premiums (6.3%) Leverage IAG s market and operational leadership in general insurance New strategic partner, Friends Provident, in life insurance Full range of banking products and services according to Syariah principles Latest venture : set-up of Islamic funds management division # 2 in Islamic credit cards Diversify Islamic banking business in Brunei Note *: Corporate & Institutional Banking (CIB) services includes CIB Large Corporate Lending, CIB Large Corporate Deposits, Financial Institution Group (FIG), Offshore Banking, International Business, Private Equity, REITS and Loan Syndication AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

33 ADEX (SOV) 2 Recognized brand name / strong consumer franchise % (BankC) 311 The AmBank brand : Top-of-Mind Brand Awareness & Service Performance 07* 08* H (Bank D) (Bank E) (Bank B) (Bank A) (AmB) 2004* 2007* 2008* H1 09 AmBank Bank A Bank B Bank C Bank D Bank E 5% 3% 5% 7% 11% 12% 6% 6% 6% Figures are in % 9% 11% 15% 15% 14% 12% % 3% 8% AmBank at 5th best TOM brand recall Continuous improvement initiative on brand awareness campaigns Efforts will continue to strengthen brand positioning Positively positioned against 2 nd -tier competitors Strengths : extended banking hours, convenient ATMs & many branches Ongoing efforts to improve performance matrixes Assets as at June 09 (RM 000) Note: ADEX (SOV) for H109 = (Apr 09 Aug 09) AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

34 3 Wide market reach and multiple distribution channels ASPIRATIONS Increased customer satisfaction via integrated & seamless channels model Expand branch network and SSM footprint Further build and improve sales & service capabilities Business Units Key Strategic Initiatives Number of Branches # Branch Banking E- Channels & Contact Centre (incl. Internet & Mobile Banking) 10 new branches (200+ by early 2011) Increase in customer facing / sales staff Reaching out to our customers by expanding our self service machine network at branches, shopping centers and 7-Eleven stores Drive profitability by expanding revenue streams through additional services like Interbank Loan & Bill Payment and a full suite of Prepaid Top Up services Maximizing our outbound sales productivity through our Award Winning Contact Centre Enhance customer experience via innovative mobile and internet banking services Maybank CIMB Public AmBank RHB HLB EON Alliance Affin Number of ATMs #3 2,828 2, Maybank CIMB AmBank RHB PBB HLB EON Alliance Affin Deposit & Customer Solutions Wealth Mgmt Increase deposit size through innovative products, campaign, marketing activities, banking solutions and competitive rates on CASA & FD Maintain or improve market position (at 5th or 6th assuming unchanged number of anchor banks) Establishing new line of business i.e. premier banking to cater to Affluent segment Increase cross selling via AmUtopia WM system BITPC approval stage Total no ATM s at 7 Eleven 334 Electronic Banking Centers (EBC) 125 FUM no. of accounts 46 K Life insurance policy holders ~400 K General insurance policies in force ~1,160 K Source : Company websites of peer banks / MEPS information Note : Peer groups as at 31 December 2009; AmBank as at latest practicable date AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

35 4 Experienced management team Name Designation Profile Cheah Tek Kuang* Ashok Ramamurthy* Datuk Mohamed Azmi Mahmood Dato James Lim Cheng Poh Pushpa Rajadurai Group Managing Director Deputy Group Managing Director & Chief Financial Officer Managing Director, Retail Banking Managing Director, Business Banking Managing Director, Corporate & Institutional Banking Joined the Group in 1978 with over 30 years of experience and has held various senior positions in AmBank Group Joined the Group in 2007 and has over 20 years of experience, most of which has been with ANZ across multiple geographies including Australia, New Zealand and India. Joined the Group in 1981 and has almost 30 years of experience in the banking industry. Joined the Group in 2004 with almost 30 years of experience in the banking industry, most of which has been with Hong Leong Group Joined the Group in 1989 and has over 25 years of experience in the investment banking and financial consultancy field. Majority of the senior managers have more than 20 years of experience in the banking industry AmBank Group: ~10,000 employees as at Dec 2009 Key emphasizes on human resource policies and training as it recognizes the value of staff in contributing towards growth targets Andrew Strain Kerr* Chief Risk Officer Joined the Group in 2007 and with almost 30 years of banking experience with major financial institutions which includes Bank of America and ANZ Ross Neil Foden* Chief Operations Officer Joined the Group in 2009 with over 30 years of experience in operations. Prior to that, he was the General Manager for Operations and Transformation for ANZ Asia Pacific Note *: AmBank Group level AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

36 5 Strategic partnership with global partner, ANZ + ANZ has provided key resources and support Board Senior Management Management Director Alex Thursby Group CFO & Deputy Group MD Ashok Ramamurthy Head of Retail Distrib & Deposits Brad Gravell Credit Risk/ Portfolio Mgt Glenn Saunders Malaysia Director Dr. Robert John Edgar Chief Risk Officer Andrew Kerr Head of FX & Derivatives Steve Kelly Head of Systems Accounting Ignatius Lim Director Mark Whelan Chief Operating Officer Ross Neil Foden Head of Market Risk Jonathan Manifold Head of Sales, FX & Derivatives Peter Trumper ANZ is the only Australian bank to have been in the Asian region of over 40 years Strategic banking partnerships and presence across 14 countries In August 2009, ANZ acquired selected RBS businesses in Asia for US$550 million, thus reinforcing its strategic intent of a super regional objective ANZ is committed to AmBank s long-term success and aspirations AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

37 6 Repositioned for profitable growth AmBank (M) Berhad : strategic agenda around profitable growth and portfolio rebalancing* Retail banking : Focus on growth in profitable products and target segments Streamline channels, improve productivity & customer service Strengthen risk management Enhance operational infrastructure (efficiency & capacity) Business banking : Managing Balance Sheet by applying the 3 Cs approach Conserve (enhance relationship), Control (account management) and Caution (analytics & segmentation) Build sustainable asset and deposit bases, and strengthen infrastructure Markets Fixed Income: Combine Markets & Proprietary books. Manage AfS via 3 segments (fairly liquid, less liquid, illiquid) DCM focus : high grade debt & enhance book building HfT portfolio focus : high grade & liquid, new bond issue (higher yields) & actively trade, PDS book: high liquidity & yield bonds Markets FX : Develop integrated biz streams: customer advisory, dealing & transaction and trading teams ; Leverage ANZ s Markets sales, trading, IT, risk, product development & process skills Corporate & Institutional Banking : Rebalance via viable & profitable segments Grow deposits and recurring non-int income Cross-sell & expand via Investment Banking mandates, government projects & M&A advisory mandates Grow existing clientele & new clients (MNCs, FIG, GLCs & government linked funds) International: LABUAN: improve profitability and diversify via financial guarantees, loan syndications & fee income JAKARTA & SINGAPORE: Consolidate operations, reduce share margin biz and diversify into asset mngnt (Indonesia) & wealth mngnt (Singapore) BRUNEI: Increase AUM, introduce sukuk issuance and advisory solutions & secure Islamic banking license REITS Management: Maintain profitability, improve cash management & set up asset management co. Private Equity: Target new funds & develop thematic funds, diversify fee income (advisory, retainer fees; diversify & asset management) * Organic growth strategies for FY2010 AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

38 Appendix: Corporate info (rating, structure) AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

39 Ratings Upgrade AmBank (M) Berhad Rating Agency Long-Term Short-Term Outlook Date RAM Instrument : AA 3 P1 Stable Nov 09 - RM500mil non-cumulative perpetual capital securities A 2 Nov 09 - RM1.0bil negotiable instruments of deposits AA 3 Nov 09 - RM2.0bil medium term notes programme A 1 Nov 09 - RM500mil innovative tier-1 capital securities programme A 2 Nov 09 Moody s Baa2 P-3 Stable Feb 10 Banking Financial Strength Rating D Feb 10 Instrument : USD200mil non-cumulative non-convertible guaranteed preference share Ba2 Feb 10 Fitch BBB- F3 Stable Feb 09 Instrument : USD200mil non-cumulative non-convertible guaranteed preference share BB Feb 09 S&P BBB- A-3 Positive Dec 09 Instrument : USD200mil non-cumulative non-convertible guaranteed preference share BB Dec 09 Capital Intelligence BBB- A3 Positive Dec 09 AmInvestment Bank Berhad Rating Agency Long-Term Short-Term Outlook Date RAM Instrument : AA 3 P1 Stable Nov 09 - RM200mil subordinated tier-2 bonds A 1 Nov 09 MARC AA- MARC-1 Stable Mar 09 S&P BBB- A-3 Positive Dec 09 Fitch BBB- F3 Stable Feb 09 AmIslamic Bank Berhad Rating Agency Long-Term Short-Term Outlook Date RAM AA 3 P1 Stable Nov 09 Instrument : - RM400mil subordinated sukuk musyarakah A 1 Nov 09 AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

40 Shareholding structure As at 31 December 2009 AmcorpGroup Bhd 16.7% 23.8% 12.9% 46.6% 100% AMFB Holdings Bhd 100% AmBank (M) Berhad 100% AmIslamic Bank Bhd ANZ Funds Pty Ltd # AMMB Holdings Bhd Employees Provident Fund Board 100% 70%* AmInvestment AmLife Insurance Group Berhad Berhad * Friends Provident Fund PLC 30% 100% AMAB Holdings Sdn Bhd Public 51%^ AmG Insurance Berhad ^ Insurance Australia Group Ltd 49% Ranked No. 18 (Malaysia market capitalisation) & 188 (global 1,000 banks by market capitalisation) : with market capitalization of RM15.07 billion on Bursa Saham Malaysia (N1) and market capitalization of US$4.41 billion on Bloomberg (N2) Foreign shareholding excluding ANZ : Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec % 36.95% 37.15% 34.39% 30.08% 28.38% 29.58% 28.53% 29.58% # ANZ Funds Pty Ltd : a wholly owned subsidiary of Australia and New Zealand Banking Group Limited ( ANZ ) AHB in progress of due diligence to acquire : general insurance business of a local insurance company Source : N1 Starbiz (Top 100 Companies By Market Capitalization as at 31 December 2009) N2 Bloomberg (Global 1,000 banks By Market Capitalization as at 4 January 2010) AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

41 Glossary / Disclaimer of Warranty and Limitation of Liability Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market One Offs One offs comprise those impacts on financial performance that arise from changes to : accounting and provisioning policies (eg 5 and 7 year rules) differences between economic and accounting hedges prior period catch ups (eg backdated salary costs) strategic investments and divestments (eg ANZ partnership), and tax and regulatory regimes (eg deferred tax asset write off due to reduction in corporate tax rates) Underlying Performance Underlying performance refers to the financial performance adjusted for one off impacts as above Business Segments Business segments comprise AmBank Group s core operating businesses that generate profits from direct customer transactions and interactions have relatively more stable income streams, incur the bulk of the costs and typically have a lower risk profile in most instances have market shares and growth metrics that can be measured and benchmarked externally Operating Segments Operating segments have more volatile and lumpy income streams, with the former a direct function of risk appetite include income and expenses associated with proprietary and treasury trading, shareholder funds, loan rehabilitation and legacy busin esses, plus costs associated with corporate, shared services and governance functions currently not charged back to the business units Disclaimer of Warranty and Limitation of Liability The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad or AMMB Holdings or AHB or its affiliates do not make any representation or warranty, express or implied, as to the adequacy, accuracy, completeness or fairness of any such information and opinion contained and shall not be liable for any consequences of any reliance thereon. Neither AMMB Holdings nor its affiliates are acting as your financial advisor or agent. The individual is responsible to make your own independent assessment of the information herein and should not treat such content as advice relating to legal, accounting, and taxation or investment matters and should consult your own advisers. Forward looking statements are based upon the current beliefs and expectations of the AMMB Holdings and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward looking statements. AMMB Holdings does not undertake to update the forward looking statements to reflect impact of circumstances or events that may arise after the date of this presentation. The information in the presentation is not and should not be construed as an offer or recommendation to buy or sell securities. Neither does this presentation purport to contain all the information that a prospective investor may require. Because it is not possible for AMMB Holdings or its affiliates to have r egard to the investment objectives, financial situation and particular needs of each individual who reads the information contained thus the information presented may not be appropriate for all pe rsons. The information contained is not allowed to be reproduced, redistributed, transmitted or passed on, directly or indirectly, to any other person or published electronically or via print, in whole or in part, for any purpose. The term "AMMB Holdings" denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to the financial institutions under AMMB Holdings. AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY

42 The material in this presentation is general background information about AmBank Group s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. For further information, visit : or contact Ganesh Kumar Nadarajah Head Group Investor Relations Tel : (603) Fax : (603) ganesh-kumar@ambankgroup.com or ir@ambankgroup.com AMBANK GROUP INVESTOR RELATIONS - DEBT INVESTOR PACK, 25 th FEBRUARY 2010