Humanising Financial Services. Investor Handout. Invest ASEAN 2018 Singapore March

Transcription

1 Humanising Financial Services Investor Handout Invest ASEAN 2018 Singapore March

2 Table of Contents Maybank s Strategic Presence in ASEAN 2 Key Highlights of 4Q and Full Year Financial Results 9 Financial Performance 12 Prospects & Outlook 26 Appendix 29 1

3 Leading Regional Financial Services Group 2 Myanmar: 1 branch India Cambodia: 21 branches Thailand MKE: 47 branches Malaysia: 356 branches Maybank IB: 7 branch Labuan: 1 branch Singapore: 21 branches MKE: 2 branches China Laos: 2 branches Vietnam: 2 branches MKE: 6 branches An Binh Bank: 165 branches Brunei: 2 branches ASEAN Indonesia BMI: 407 branches MKE: 6 branches MSI: 10 branches Philippines: 74 branches MKE: 3 branches Leadership Position No. 1 bank in Malaysia: Conventional and Islamic Top 4 bank in ASEAN by Total Assets, Loans and Deposits No. 108 in The Banker s 2017 Top 1000 World Banks Ranking 1 st company to breach RM100 billion market capitalisation on Bursa Malaysia Brand of the Year for 4 consecutive years by World Branding Awards Best Digital Bank and Best Mobile App in Malaysia by World Finance Digital Banking Awards 2017 Wide Branch Network Over 2,400 branches in 20 countries 1,133 offices in 10 ASEAN countries 5 International Financial Centres Strong Shareholders and Credit Ratings 48%* owned by PNB and its funds and 11%* by EPF Foreign shareholding 21.9%^ Strong credit rating, on par with Malaysia sovereign *As at 29 th December 2017 ^As at 9 th March 2018

4 Maybank s Presence in All Ten ASEAN Countries BANK MARKET 12 Mar 18 (USD Bil) TOTAL 31 Dec 17 (USD Bil) MALAYSIA SINGAPORE INDONESIA THAILAND PHILIPPINES BRUNEI VIETNAM CAMBODIA LAOS MYANMAR 1 DBS OCBC * 3 BCA UOB Maybank * * 6 Bank Mandiri Public Bank CIMB SCB BDO ^ 11 Bangkok Bank * 3 12 Metrobank Universal Banking Retail & Commercial Banking Investment Banking Affiliate/Representative Office Source: Bloomberg (for market cap & total assets data) * Wholesale Banking license only ^ As at 30 Sep 2017

5 Top 4 Financial Services Provider in ASEAN by Total Assets, Loans & Deposits Total Assets (USD bil): 31 Dec 2017 Loans and Deposits (USD bil): 31 Dec 2017 DBS OCBC UOB Maybank CIMB Public Bank Siam Commercial Bank Rakyat Indonesia Bank Mandiri Bank Central Asia No.4 DBS OCBC UOB Maybank CIMB Public Bank Siam Commercial Bank Rakyat Indonesia Bank Mandiri Bank Central Asia No.4 Loans Deposits PATAMI (USD mil): 12 months ended 31 Dec 2017 Market Capitalisation (USD bil): 12 Mar 2018 DBS OCBC UOB Bank Rakyat Indonesia Maybank Bank Central Asia Bank Mandiri Public Bank Siam Commercial CIMB 1,275 1,270 1,041 1,749 1,742 1,542 2,166 2,438 3,162 3,005 No.5 DBS OCBC BCA UOB Bank Rakyat Indonesia Maybank Bank Mandiri Public Bank CIMB Siam Commercial Source: Bloomberg Note: - Except for Market Capitalisation, Maybank s figures are computed based on internal exchange rate assumptions. - The deposit balances for Maybank and CIMB are inclusive of Investment Accounts No.6 4

6 Description % of FY17 PBT Business Pillars Maybank Group s Key Business Pillars Group Community Financial Services Group Global Banking Group Insurance and Takaful Islamic Finance leverage model utilised to distribute Islamic products across the group, while international business operations are embedded within each business pillar. 46.3% 44.9% 8.8% Group Community Financial Services (GCFS) is Maybank Group s retail franchise that provides a full range of financial products and services to retail consumers, Retail SMEs and mid-sized corporates (via Business Banking) which ranges from wealth management, credit cards to business lending solutions. GCFS operates in Malaysia, Singapore, Indonesia, Philippines, Cambodia, Laos and Brunei with Private Wealth desks in Hong Kong and London. Group Global Banking (GGB) covers Investment Banking (through Maybank Kim Eng), Global Markets, Corporate Banking, Transaction Banking and Asset Management. GGB is present in all 10 ASEAN countries, Greater China as well as key financial centres of New York, London and Hong Kong. Maybank Kim Eng (MKE) has been in ASEAN for over 40 years and is ASEAN s largest brokerage franchise which operates in 10 countries. Etiqa is a multi-channel distributor of life and general insurance as well as family and general takaful products. Products and services are offered through a 10,000 strong agency force, 24 Etiqa branches, more than 350 Maybank branches and through an online platform, which is ranked as Malaysia s No. 1 insurance and takaful website. Etiqa operates in Malaysia, Singapore, the Philippines and Indonesia. 5

7 ASEAN 2018 Outlook & Opportunities (1/2) ASEAN s Investment Revival A Key Theme in 2018 Fig. 1: Correlation Between Exports and Investment Thailand Singapore Indonesia Philippines Malaysia Machine & Equipment (0.22) Note: Estimates are based on simple correlation between each country s exports of goods & services and GFCF in buildings & structures/construction and machine & equipment for the period between 1Q01 and 2Q17. Fig. 2: Historical Sensitivity of Private Consumption to Exports Singapore Malaysia Thailand Indonesia Philippines (0.01) 0.02 Buildings & Structures / Construction Note: Country rankings do not change when regressing private consumption on exports with one quarter lag. The export rebound will catalyse a stronger private investment recovery in export-oriented countries as companies are likely to expand capacity in machinery & equipment to meet rising demand (Fig. 1). Private investment growth has slumped across ASEAN in recent years, growing +1.7% in versus +11.5% in the pre-global financial crisis period ( ). Historically, sensitivity of consumption to exports is highest for Singapore, Malaysia & Thailand (export-oriented economies) and lower for Indonesia and the Philippines (more domesticdriven) (Fig. 2). Ratio of private to public investment is high in Singapore (at 3.4x), Thailand (2.7x) and Malaysia (2x). Corporate leverage ratios have been relatively stable in ASEAN over the years and should not impede the investment recovery. Excluding Singapore (an International financial centre), ASEAN- 4 s corporate debt is 37% of GDP, increasing by a modest 4 percentage points over the past 9 years since Lead indicators for investments including capacity utilisation, terms of trade, PMI readings, business loan growth, imports of capital goods and corporate sentiments generally point to a capex recovery. Meanwhile in Malaysia and Philippines, capacity utilisation has climbed to historical highs. 6 Source: MKE Research, ASEAN Economics: Year Ahead 2018: Recharging Investment, 1 December 2017 & CEIC.

8 USD billion ASEAN 2018 Outlook & Opportunities (2/2) ASEAN Infrastructure Investment Fuelled by China Spend Infrastructure investment, complementing private investment recovery, looks set to grow strongly in Malaysia, Philippines and Vietnam. ASEAN is emerging as a big beneficiary from China s greenfield (Indonesia, Malaysia and Vietnam) and M&A investments (Singapore, Malaysia and Indonesia being the largest recipients). Manufacturing, electricity, construction and mining is expected to be the main sectors for greenfield investments. China s Outward FDI Flow to ASEAN, Global Tech Titans Expanding into ASEAN Fast growing e-commerce activities are disrupting traditional brick and mortar consumer businesses. High penetration rates of e-commerce retail sales in more established markets like China (19% of total), Korea (20%) and the US (10%) suggests that ASEAN is still in the early phase of disruption from online competition. This suggests that the share of ASEAN e-commerce sales could readily double and approach 10% over the next 5 years. Online Sales Share Still Small in ASEAN 7 Source: MKE Research, ASEAN Economics: Year Ahead 2018: Recharging Investment, 1 December 2017, CEIC & Euromonitor.

9 Table of Contents Maybank s Strategic Presence in ASEAN 2 Key Highlights of 4Q and Full Year Financial Results 9 Financial Performance 12 Prospects & Outlook 26 Appendix 29 8

10 Maybank Group Full Year Overview New net income high of RM23.27 billion with record net profit of RM7.52 billion 1 Record net profit of RM7.52 billion, up 11.5% YoY Higher net income of 4.9% YoY as net fund based income grew 10.3% YoY on NIM expansion of 9 bps to 2.36% Better NIM on improved Group CASA normalised growth of 7.2% YoY (Reported: 5.4% YoY) and securities portfolio yield improvement. Operating profit growth of 14.0% YoY to RM9.88 billion supported by lower net impairment losses of 32.7% YoY Return on Equity of 10.9%, within Group guidance of 10%-11% Normalised Group loan and deposit growth of 4.0% YoY respectively (Loan growth reported: 1.7%, Deposit growth reported: 1.8%) supported by loan and CASA growth in home markets. Growth guidance for Group loan and deposit was ~3% respectively Total Group RWA reduced 1.2% as credit RWA decreased 2.7% (vs loan growth of 1.7%) 2 Stable Group GIL ratio of 2.34% as at end Dec 2017 (Dec 2016: 2.28%), as GIL volume Moderating asset growth formation slowed to 4.5% YoY (vs 29.2% YoY in 2016) quality indicators Net credit charge off of 40 bps, as loan provisions reduced 30.8% YoY to RM1.96 billion Strong loan loss coverage (including regulatory reserve) of 95.3% (Dec 2016: 81.6%) 3 Strong Liquidity and Capital Positions Healthy and stable liquidity risk indicators with Group LCR at 133.1%, Group LDR at 93.8%, Group LTF at 86.2% and Group LTFE at 75.7% Total capital and CET1 ratios at 18.80%* and 14.19%* respectively as at Dec 2017 Attractive dividend yield of 5.6% with total dividend per share of 55 sen 9 Note: *After proposed dividend and assumption of 85% reinvestment rate. Fully loaded Group CET1 capital ratio is at 14.01%.

11 Maybank 2020 : Strategic Objectives Key Achievements The Top ASEAN Community Bank The Leading ASEAN Wholesale Bank Linking Asia The Leading ASEAN Insurer The Global Leader In Islamic Finance Digital Bank of Choice Group Wealth Management revenue grew 19.2% YoY, with assets under management (AUM) of RM278.2 billion Regional SME grew 8.3% YoY on its topline Maybank remained No.1 in the Malaysia Net Promoter Score customer index Strengthened our lead as an ASEAN wholesale and investment bank, achieving: 1 st in Bloomberg s Global Sukuk and ASEAN Loan Syndication league tables 2 nd in Bloomberg s ASEAN Local Currency Bonds league table Malaysian market share leader in corporate lending, trade finance and corporate deposits MKE was awarded Best Investment Bank in Malaysia by Global Finance and Euromoney Recorded highest ever Profit Before Tax of RM1.0 billion in, up by 18.5% YoY Maintained No.1 online insurance position with >70% market share Improved motor claims approval TAT to under 30 minutes vs industry benchmark of 3 days Regional business expansion with bancassurance business growth into the Philippines and 75% acquisition stake in Indonesia s PT Asuransi Asoka Mas No.1 Global Sukuk Lead Manager on Bloomberg s Global Sukuk League Table No.1 Lead Manager on Bloomberg s Ringgit Malaysia Sukuk League Table Joint lead arranger for one of the world s largest green Sustainable & Responsible Investment (SRI) Sukuk Launched HouzKEY, the first rent-to-own scheme in Malaysia Awarded Best Digital Bank and Best Mobile App in Malaysia by World Finance Digital Banking Awards 2017, with over 4.6 million unique visitors monthly Launched new Maybank2u app in Malaysia with improved user-friendliness, biometric features (Face & Voice ID) as security authentication and Secure2u function Launched various first to-market digital initiatives: Maybank QRPay, Alipay-enabled merchant terminals in Malaysia and Maybank2u Pay 10

12 Table of Contents Maybank s Strategic Presence in ASEAN 2 Key Highlights of 4Q and Full Year Financial Results 9 Financial Performance 12 Prospects & Outlook 26 Appendix 29 11

13 P&L Summary: Record net profit of RM7.52 billion on operating profit growth of 14.0% to RM9.88 billion More details on RM million FY2016 YoY s.32 Net fund based income * 16, , % s.16/32/ 37 Net fee based income * 6, ,098.8 (6.5%) s.30/31 Net operating income 23, , % s.17/38 Overhead expenses (11,357.1) (10,487.2) 8.3% s.31 Pre-provisioning operating profit (PPOP) ¹ 11, , % Net impairment losses (2,027.8) (3,015.0) (32.7)% Operating profit 9, , % s.30 Profit before taxation and zakat (PBT) 10, , % Profit attributable to equity holders of the Bank (Net Profit) 7, , % EPS - Basic (sen) % 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 12.8% of net fee-based income ¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses 12

14 Net Fund Based Income: (1/3) Strong net fund based income growth of 10.3% YoY supported by NIM improvement of 9 bps to 2.36% Net Interest Margin (%) 5-Year Trend FY2013 FY2014 FY2015 FY

15 RM billion RM billion SGD billion IDR trillion RM billion RM billion SGD billion IDR trillion Net Fund Based Income: (2/3) Loans growth across home markets supported by good CASA growth across the Group Group Malaysia Singapore Indonesia Gross Loans (YoY) Community Financial Services Global Banking 1.7% (Reported) 4.0% (Normalised) 5.0% 4.3% 3.6% % % % (0.6)% % % Dec 16 Dec 17 Dec 16 Dec 17 Dec 16 Dec 17 Dec 16 Dec 17 CASA (YoY) 5.4% (Reported) 4.9% 16.6% 5.2% 7.2% (Normalised) Dec 16 Dec 17 Dec 16 Dec 17 Dec 16 Dec 17 Dec 16 Dec 17 CASA Ratio : 36.0% 37.3% 40.5% 40.2% 28.1% 31.6% 38.6% 39.8% Note: Industry loans growth for Malaysia is 4.1%, Singapore is 8.0% and Indonesia is 8.2% CASA ratio for Group and Malaysia includes investment accounts Refer to pages for detailed information on loans and deposits growth by country and products. 14

16 RM billion RM billion Net Fund Based Income: (3/3) Selective loan expansion managed in tandem with credit RWA Group Gross Loans Total Group RWA +5.7% +1.7% +1.7% (1.2)% % % 40.1 Operational RWA % % 14.4 Market RWA +0.7% (2.7)% Credit RWA Dec 15 Dec 16 Dec 17 Dec 15 Dec 16 Dec 17 15

17 RM million Net Fee Based Income: Lower net fee based income mainly from reduced investment and trading income RM million FY2016 YoY Commission, service charges and fees 3,559 3, % Investment & Trading Income 1,363 1,057 (22.5)% Unrealised gain/ (losses) on securities >100% Unrealised gain/ (losses) on derivatives (90) (125) 38.8% Foreign Exchange Profit (9.9)% Other Income % (6.5)% (4.2)% (11.4)% +18.2% +23.1% 7,099 6,641 6,289 6,027 5,251 4,444 FY (4,108) (5,057) 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 16

18 Overheads: Overheads growth of 8.3% YoY; Group cost-to-income ratio of 48.7%, below threshold of 50% RM million FY2016 YoY Personnel Costs 6, , % Establishment Costs 1, , % Marketing Expenses (1.3)% Administration & General Expenses 2, , % Total 11, , % % FY2016 YoY Total Cost to Income ¹ % Group JAW Position (3.4)% Note: Page 38 shows the quarterly trend of overheads. ¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng 17

19 RM million RM million RM million Asset Quality Lower YoY loan provisions of 30.8% for on slower impaired loan formation growth Allowance for losses on loans Allowances for losses on loans Slower YoY growth in Group GIL volume from a year ago Loan loss coverage 29.2% YoY 4.5% YoY 72.0% 71.2% 70.1% 71.7% 71.5* 8,555 11,055 11,550 2,832.7 Dec 15 Dec 16 Dec 17 1, % QoQ 5.4% QoQ 0.0% QoQ (5.0)% QoQ ,055 11,658 12,158 12,155 11,550 4Q 1Q 2Q 3Q 4Q FY2016 Note: *Loan loss coverage including Regulatory Reserve is 95.3% FY2016 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 18

20 Asset Quality for Group and Home Markets Stabilising QoQ asset quality trends for Group and home markets Group GIL Ratio Composition GIL Ratio Components Dec 2017 Sep 2017 Jun 2017 Mar 2017 Dec 2016 Non Performing Loans (NPL) 1.80% 1.97% 1.79% 1.77% 1.64% Restructured & Rescheduled (R&R) 0.27% 0.32% 0.37% 0.33% 0.39% Performing Loans Impaired Due to Judgmental/ Obligatory Triggers (IPL) 0.27% 0.21% 0.37% 0.30% 0.25% GIL Ratio 2.34% 2.50% 2.53% 2.40% 2.28% GIL Ratio by Home Markets 4.36% 4.55% 4.42% 4.47% 3.56% 2.06% 2.13% 2.29% 2.31% 2.36% 1.30% 1.68% 2.12% 2.06% 1.91% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Malaysia Singapore Indonesia 19

21 Asset Quality by Line of Business Broadly stable QoQ asset quality trends across Malaysia and Singapore portfolios, with improvement in Indonesia Consumer Mortgage Auto Finance Credit Cards 1.51% 1.76% 2.22% 2.38% 2.14% 1.32% 1.23% 1.40% 1.44% 0.98% 2.35% 2.48% 2.67% 2.37% 1.73% 2.26% 2.08% 1.95% 1.86% 1.75% 0.57% 0.60% 0.60% 0.63% 0.61% 0.51% 0.53% 0.53% 0.53% 0.50% 0.45% 0.58% 0.60% 0.56% 0.56% 0.32% 0.34% 0.27% 0.23% 0.26% 0.72% 0.77% 0.80% 0.78% 0.77% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Business Retail SME Business Banking Corporate Banking 2.09% 2.39% 2.44% 2.27% 2.00% 2.06% 2.27% 2.18% 2.18% 1.70% 1.87% 2.05% 2.02% 2.01% 1.57% Dec 16 Mar 17 Jun 17 Sep 17 Dec % 12.49% 12.50% 12.24% 12.05% 2.42% 2.66% 2.67% 2.80% 2.68% 1.77% 1.96% 1.93% 2.04% 2.23% Dec 16 Mar 17 Jun 17 Sep 17 Dec % 10.30% 11.32% 11.02% 7.84% 1.89% 2.62% 4.06% 4.07% 4.14% 1.85% 1.93% 1.97% 1.92% 1.58% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Malaysia Singapore Indonesia Note: In Malaysia, industry GIL ratio for mortgage (purchase of residential property) is 1.0%, 1.0% for auto finance, and 1.2% for credit cards. In Singapore, industry GIL figure is only available for mortgage, which was 0.4% as at December In Indonesia, Business Banking includes Commercial, SME and Micro loans. Maybank Indonesia s GIL ratios are mapped in accordance to its local regulatory reporting requirements and does not include R&R. 20

22 Commodities Exposure: 31 December 2017 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 Loan exposure Maybank Group 3.54% Malaysia 1.95% Singapore 1.24% Indonesia 0.18% Borrowers Status: 1% 40% 17% 42% Normal Special Mention Account Watchlist GIL 85% comes from supporting upstream Other Sectors Agriculture Loan exposure Maybank Group 1.74% Malaysia 1.33% Singapore 0.06% Indonesia 0.35% Metals & Mining Others 0.17% Segmental Exposure: Maybank Group 1.22% Malaysia 0.92% 28% 30% Singapore 0.10% 21 Group exposure of 3.54% includes funded and nonfunded Excluding non-funded, exposure is 2.77% 7% 35% Upstream Supporting Upstream Downstream Supporting Downstream 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. Indonesia 0.19% 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 nonferrous metal sectors

23 Liquidity Management: 31 December 2017 Maintained well-diversified funding sources and strong liquidity risk indicators Funding Breakdown Borrowings and Capital Instruments by Currency Liquidity Risk Indicators LDR LTF LTFE LCR RM694.9 billion FI Deposits, 6% Customer Funding, 76% Equity, 11% Borrowings, 5% Capital Instruments, 3% USD, 29% JPY, 9% IDR, 9% RM52.8 billion MYR, 32% By maturity: 1 Year 29% > 1 Year 71% SGD, 7% HKD, 6% Others, 8% 151.9% 134.4% 145.6% 137.0% 133.1% 93.9% 95.7% 93.8% 94.0% 93.8% 84.9% 86.2% 85.5% 85.8% 86.2% 75.1% 75.9% 75.1% 75.4% 75.7% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Note: Customer Funding comprises Deposits from Customers & Investment Accounts of Customers. Note: 1) BNM s minimum LCR requirement for 2017 is 80% 2) LTF is gross loans divided by (deposits + borrowings + subdebt) while LTFE s denominator is (deposits + borrowings + subdebt + equity + capital securities) 22

24 Strong Capital Position: 31 December 2017 Total capital and CET1 ratios (assuming 85% dividend reinvestment rate) at 18.80% and 14.19% respectively Before proposed dividend After proposed dividend, assuming 85% reinvestment rate Regulatory Requirements Jan 2019 Onwards Group 19.29% 19.38% 18.80% 15.66% 16.46% 15.88% Minimum Common Equity Tier 1 Capital 4.5% 4.5% 4.5% 13.99% 14.77% 14.19% Dec 16 Dec 17 Dec 17 Minimum Tier 1 Capital 6.0% 6.0% 6.0% Minimum Total Capital 8.0% 8.0% 8.0% Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio Capital Conservation Buffer (Phase in) 1.250% 1.875% 2.500% Bank 19.43% 19.31% 18.48% Other Capital Buffers D-SIB Buffer To be determined 18.23% 17.95% 17.11% 15.88% 15.85% 15.02% Countercyclical Capital buffer 0% - 2.5% Dec 16 Dec 17 Dec 17 Note: Based on 85% reinvestment rate under the DRP, the fully loaded CET1 Ratio would be at 14.01% (Group) and 13.29% (Bank) respectively. 23 Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

25 Dividend: Total dividend of 55 sen per share with a 42% cash component for, and a strong dividend yield of 5.6% Gross Dividend (sen), Payout Ratio (%) and Cash Component (%) 76.5% 27% 79.9% 74.9% 74.7% 13% 11% 12% 71.9% 20% 78.5% 25% 76.3% 19% 78.1% 78.5% 27% 42% Dividend Payout Ratio Cash Component %* %* # %* %* %* 83.7%* %* Final Interim %* %* %* %* 84.0%* %* %* 85.7%* FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 * Actual Reinvestment Rate for Dividend Reinvestment Plan. The reinvestment rate for Final Dividend is pending the execution of the 16 th 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 Maybank s Strategic Presence in ASEAN 2 Key Highlights of 4Q and Full Year Financial Results 9 Financial Performance 12 Prospects & Outlook 26 Appendix 29 25

27 Market Outlook 2018 industry outlook for our home markets Malaysia Singapore Indonesia 26 Key Indicators GDP (f): 5.3% (2018) vs 5.9% (2017) System loan (f): 4.5% (2018) vs 4.1% (2017) OPR (f): 3.25% (2018) vs 3.00% (2017) USD/MYR average (f): 3.83 (2018) vs 4.30 (2017) Inflation (f): 2.8% (2018) vs 3.7% (2017) GDP (f): 2.8% (2018) vs 3.6% (2017) System loan (f): 7%-8% (2018) vs 8.0% (2017) 3M SIBOR (f): 1.55% (2018) vs 1.50% (2017) USD/SGD average (f): 1.26 (2018) vs 1.37 (2017) Inflation (f): 0.9% (2018) vs 0.6% (2017) GDP (f): 5.3% (2018) vs 5.1% (2017) System loan (f): 10.2% (2018) vs 8.2% (2017) Reference Rate (f): 4.50% (2018) vs 4.25% (2017) USD/IDR average (f): 13,640 (2018) vs 13,397 (2017) Inflation average (f): 3.5% (2018) vs 3.8% (2017) Industry Outlook Loan growth supported by corporate lending pick-up and stable consumer lending. NIMs to remain stable in 2018 on 25 bps OPR hike in January Stable to marginally higher ROEs for banks; manageable MFRS 9 impact. Loan growth supported by domestic economic growth and pick-up in Singapore property market. NIMs expected to improve from repricing due to higher rates. No significant weakness in asset quality for broader portfolio. The momentum of the domestic economic recovery, subdued interest rate environment and government projects should provide support for credit growth in Sufficient liquidity in the system will enable lending growth.

28 Maybank Performance Outlook Group guidance for FY Effective NIM management in rising rate environment 2 Maintain pricing discipline of loans under new MFRS 9 environment 3 Maintain stable liquidity risk indicators ahead of NSFR adoption in Managed cost growth with CIR ~48% 5 Day 1 capital impact of ~40 bps with MFRS 9 adoption 6 Group ROE KPI of ~11% 27

29 Table of Contents Maybank s Strategic Presence in ASEAN 2 Key Highlights of 4Q and Full Year Financial Results 9 Financial Performance 12 Prospects & Outlook 26 Appendix 29 28

30 Table of Contents Appendix: 1. Financial Performance Community Financial Services Global Banking Maybank Singapore Maybank Indonesia Other segments Affiliates 67 29

31 International & Malaysia Portfolio Mix Net Operating Income Profit Before Tax Gross loans* (Jan 17 Dec 17) Overseas: 40.5% 14.4% 7.9% Overseas: 28.7% 8.6% 10.7% Overseas: 41.5% 8.0% 7.8% 18.2% RM23.27 billion 59.5% 9.4% RM10.10 billion 71.3% 25.7% RM493.8 billion 58.5% Malaysia Singapore Indonesia Others FY2016 (Jan 16 Dec 16) 14.6% 15.8% 7.5% RM22.17 billion 62.1% 9.9% 8.9% 4.0% RM8.84 billion 9.1% 8.6% 25.5% RM485.7 billion 56.7% Overseas: 37.9% Overseas: 22.8% 77.2% Overseas: 43.3% Note: * Including Islamic loans sold to Cagamas and excludes unwinding of interest 30

32 RM million RM million Segmental Performance of Businesses: (1/2) Net Operating Income +4.9% 22,173 23,268 Group Global Banking (GB) +1.6% FY2016: 9,101 : 9,242 FY % +1.4% (5.1)% +80.3% +18.7% 12,685 13,497 7,555 7,658 1,409 1, ,593 1,891 PPOP Total +1.9% 11,686 11,911 Group Community Financial Services Group Corporate Banking & Global Markets Group Investment Banking Group Global Banking (GB) (2.1)% FY2016: 6,055 : 5,927 Group Asset Management +5.8% (1.1)% (44.1)% (>100)% FY2016 Group Insurance & Takaful +18.2% 5,929 6,275 5,717 5, (8) ,071 Total Group Community Financial Services Group Corporate Banking & Global Markets Group Investment Banking Group Asset Management Group Insurance & Takaful Note: Net income & PPOP for group includes expenditures of Head Office & Others of RM1,204.9 million for FY2016 and RM1,361.7 million for. 31

33 RM million RM million Segmental Performance of Businesses: (2/2) Net Fund Based Income +10.3% 16,628 15,074 Group Global Banking (GB) +5.5% FY2016 FY2016: 5,078 : 5, % +5.5% +3.3% (88.0)% +8.4% 9,627 10,292 4,792 5, (7) (1) 1,009 1,094 7,099 Total Net Fee Based Income (6.5)% 6,641 Group Community Financial Services Group Corporate Banking & Global Markets Group Investment Banking Group Global Banking (GB) (3.5)% FY2016: 4,023 : 3,883 Group Asset Management FY2016 Group Insurance & Takaful +4.8% (5.9)% (7.3)% +71.6% +36.6% 3,058 3,205 2,762 2,600 1,116 1, Total Group Community Financial Services Group Corporate Banking & Global Markets Group Investment Banking Group Asset Management Note: Net fund based income includes expenditures of Head Office & Others of RM638.7 million for FY2016 and RM116.9 million for. Net fee based income includes expenditures of Head Office & Others of RM566.2 million for FY2016 and RM1,244.8 million for. Group Insurance & Takaful 32

34 Income Statement for Insurance and Takaful Business: YoY RM million FY2016 YoY Net interest income 1, % Net earned premiums 5, , % Other operating income % Total operating income 7, , % Net insurance benefits & claims incurred, net fee & (5,274.9) commission expenses and life & takaful fund tax (4,285.4) 23.1% Net operating income 1, , % Overhead expenses (807.9) (700.0) 15.4% PPOP 1, % Net impairment losses (62.4) (25.8) >100% Operating profit % Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax RM million FY2016 YoY Net insurance benefits & claims incurred, net fee & (5,274.9) commission expenses and life & takaful fund tax (4,285.4) 23.1% Less: intercompany elimination % Total net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax (5,057.1) (4,107.9) 23.1% Note: Page 36 shows the quarterly trend of the Income Statement for Insurance and Takaful business 33

35 Key Operating Ratios: YoY % FY2016 YoY FY2015 FY2014 Return on Equity % Net Interest Margin bps Fee to Income Ratio (3.5)% Loans-to-Deposit Ratio (0.1)% Cost to Income Ratio % Asset Quality Gross Impaired Loans Ratio bps Loans Loss Coverage (0.5)% Net Charge off rate (bps) (40) (62) 22 bps (41) (11) Capital Adequacy (Group) 3 CET1 Capital Ratio bps Total Capital Ratio (14) bps Note: Page 43 shows the quarterly trend of key operating ratios. 1 LDR excludes structured deposits as per BNM s circular dated 21 June 2017 Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 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 FY2016 YoY Net fund based income 4, , , ,161.3 (1.0)% 3, % Net fee based income 1, , , , % 2,123.4 (10.7)% Net operating income 5, , , , % 6, % Overhead expenses (2,779.3) (2,768.5) (2,886.4) (2,922.8) 1.3% (2,606.8) 12.1% Pre-provisioning operating profit (PPOP) ¹ 2, , , , % 3,434.5 (8.8)% Net impairment losses (542.8) (835.7) (409.6) (239.7) (41.5)% (624.5) (61.6)% Operating profit 2, , , , % 2, % Profit before taxation and zakat (PBT) 2, , , , % 2, % Profit attributable to equity holders of the Bank (Net Profit) 1, , , , % 2,360.6 (9.7)% EPS - Basic (sen) % 23.2 (14.1)% Note: 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 FY2016 YoY Net interest income % % Net earned premiums 1, , , , % 1, % Other operating income >100% (280.7) >100% Total operating income 1, , , , % 1, % Net insurance benefits & claims incurred, net fee & (1,424.0) commission expenses and life & takaful fund tax (1,265.3) (1,289.2) (1,296.4) 0.6% (637.4) >100% Net operating income % % Overhead expenses (166.3) (186.8) (189.3) (265.4) 40.2% (209.4) 26.7% PPOP >100% % Net impairment losses (1.8) (9.8) (23.9) (26.8) 12.3% 7.8 (>100)% Operating profit >100% % Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax RM million 1Q 2Q 3Q 4Q QoQ 4Q FY2016 Net insurance benefits & claims incurred, net fee & (1,424.0) commission expenses and life & takaful fund tax (1,265.3) (1,289.2) (1,296.4) 0.6% (637.4) >100% Less: intercompany elimination (14.6)% % Total net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax (1,378.4) (1,230.2) (1,215.3) (1,233.2) 1.5% (595.3) >100% YoY 36

38 RM million Net Fee Based Income: QoQ RM million 1Q 2Q 3Q 4Q QoQ Commission, service charges and fees (0.1)% Investment & Trading Income (32.4)% Unrealised gain/ (losses) on securities (179) 2 >100% Unrealised gain/ (losses) on derivatives (76) (183) >(100)% Foreign Exchange Profit (21.9)% Other Income >100% +16.2% +3.2% +12.0% +8.7% (2.0)% +6.8% 1,895 1,641 1,693 1,527 1,598 1,497 1,412 1,405 (32.9)% +18.0% (7.1)% +0.2% 1, % 1,256 1, % 1,434 (10.8)% (1.2)% +1.5% 1Q 2Q 3Q 4Q (1,378)(1,230) (1,215)(1,233) 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 Overheads: QoQ RM million 1Q 2Q 3Q 4Q QoQ 4Q FY2016 YoY Personnel Costs 1, , , , % 1, % Establishment Costs % % Marketing Expenses % % Administration & General Expenses (14.3)% (3.0)% Total 2, , , , % 2, % % 1Q 2Q 3Q 4Q QoQ 4Q FY2016 YoY Total Cost to Income ¹ 50.1% 47.7% 48.9% 48.2% (0.7)% % Group JAW Position 1.4% (11.8)% Note: ¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng 38

40 Group Gross Loans Growth: 31 December 2017 % of Portfolio 31 Mar Jun Sep Dec 2017 QoQ 31 Dec 2016 YoY Group Gross Loans % % Malaysia (RM billion) 58% % % Community Financial Services 71% % % Community Financial Services ¹ 71% % % Global Banking 29% % % Global Banking ¹ 29% % % International (RM billion) 41% % (2.9)% Singapore (SGD billion) 61% % % Community Financial Services 54% % % Global Banking 46% % % Indonesia (IDR trillion) 19% % % Community Financial Services 75% % 97.0 (0.6)% Global Banking 25% % % Other markets (RM billion) 20% % 44.6 (11.6)% Investment banking (RM billion) 1% (0.1)% % Note: ¹ Re-based loan growth figures are based on adjusted 31 December 2016 position in line with migration of client accounts, effective 1 January

41 Malaysia Loans Growth: 31 December 2017 % of Portfolio 31 Mar Jun Sep Dec 2017 QoQ 31 Dec 2016 YoY 40 Community Financial Services 71% % % Community Financial Services ¹ 71% % % Consumer 57% % % Total Mortgage 28% % % Auto Finance 16% % % Credit Cards 3% % % Unit Trust 9% % 27.6 (2.1)% Other Retail Loans 1% % % SME + Business Banking 14% % % SME + Business Banking ¹ 14% % % SME 5% % % SME ¹ 5% % % Business Banking 9% % 26.5 (4.0)% Business Banking ¹ 9% % 25.9 (2.0)% Global Banking (Corporate) 29% % % Global Banking (Corporate) ¹ 29% % % Total Malaysia % % Note: ¹ Re-based loan growth figures are based on adjusted 31 December 2016 position in line with migration of client accounts, effective 1 January 2017

42 Group Deposits Growth: 31 December 2017 % of Portfolio 31 Mar Jun Sep Dec 2017 QoQ 31 Dec 2016 YoY Group Gross Deposits % % Malaysia (RM billion) 60% % % Savings Deposits 13% (0.5)% % Current Accounts 27% % % Fixed Deposits 53% % % Others 6% (10.7)% % International 40% % (3.4)% Singapore (SGD billion) 67% % % Savings Deposits 15% % % Current Accounts 17% (0.2)% % Fixed Deposits 68% % 32.0 (1.2)% Indonesia (IDR trillion) 17% % % Savings Deposits 20% % 25.6 (3.1)% Current Accounts 19% % % Fixed Deposits 60% (1.5)% 73.3 (0.3)% Note: Deposits figures are restated following a BNM circular dated 21 June 2017 which excludes structured deposits 41

43 LDR and CASA Ratio Group LDR CASA CASA (without IA) Malaysia 93.9% 95.7% 93.8% 94.0% 93.8% 91.5% 90.8% 90.9% 90.7% 91.2% 36.0% 34.6% 37.4% 36.8% 36.8% 37.3% 35.7% 35.1% 35.0% 35.4% 40.5% 41.2% 40.4% 39.5% 40.2% 38.0% 38.4% 37.6% 36.6% 37.1% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Singapore Indonesia LDR (Bank Level) 87.4% 92.4% 91.4% 88.5% 87.8% 104.5% 103.9% 102.4% 104.7% 106.3% 88.9% 88.4% 86.7% 87.6% 88.1% 28.1% 30.5% 31.7% 31.9% 31.6% 38.6% 37.0% 37.2% 37.8% 39.8% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Note: LDR excludes structured deposits as per BNM s circular dated 21 June 2017 Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013 Group and Malaysia LDRs include investment accounts totaling RM24.56 billion for 31 Dec 2017, RM26.80 billion for 30 Sep 2017, RM27.79 billion for 30 June 2017, RM31.71 billion for 31 March 2017 and RM31.54 billion for 31 Dec

44 Key Operating Ratios: QoQ % 1Q 2Q 3Q 4Q QoQ 4Q FY2016 Return on Equity % 14.8 (2.4)% Net Interest Margin (5) bps 2.32 (2) bps Fee to Income Ratio % 35.1 (3.8)% Loans-to-Deposit Ratio (0.2)% 93.9 (0.1)% Cost to Income Ratio (0.7)% % Asset Quality Gross Impaired Loans Ratio (16) bps bps Loans Loss Coverage (0.2)% 72.0 (0.5)% Net Charge off rate (bps) (45) (68) (32) (16) (16) bps (54) (38) bps Capital Adequacy (Group) 3 CET1 Capital Ratio bps bps Total Capital Ratio bps (14) bps YoY Note: 1 LDR excludes structured deposits as per BNM s circular dated 21 June 2017 Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA Total cost excludes amortisation of intangibles for Maybank Indonesia and Maybank Kim Eng. 3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period 43

45 Longer-term Trends for Key Operating Ratios Return on Equity (%) Net Interest Margin (%) guidance: 10% - 11% guidance: 5 bps to 10 bps compression FY13 FY14 FY15 FY16 FY17 Total Capital Ratio & CET 1 Ratio* (%) CET 1 TCR FY13 FY14 FY15 FY16 FY17 Cost to Income Ratio (%) guidance: <50% FY13 FY14 FY15 FY16 FY17 Note: *The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period FY13 FY14 FY15 FY16 FY17

46 Longer-term Asset Quality Trends for Group and Home Markets Group GIL Ratio and Loan Loss Coverage GIL Ratio by Home Markets Malaysia 107.5% 95.6% 1.69% 1.85% 1.76% 2.06% 1.91% 72.0% 72.0% 71.5% FY13 FY14 FY15 FY16 FY17 Singapore 1.48% 1.52% 1.86% 2.28% 2.34% 0.29% 0.23% 0.45% 1.30% 2.36% FY13 FY14 FY15 FY16 FY17 Indonesia FY13 FY14 FY15 FY16 FY % 3.24% 4.15% 4.36% 3.56% Loan Loss Coverage Group GIL Ratio Note: * Loan loss coverage including Regulatory Reserve is 95.3% FY13 FY14 FY15 FY16 FY17 45

47 Table of Contents Appendix: 1. Financial Performance Community Financial Services Global Banking Maybank Singapore Maybank Indonesia Other segments Affiliates 67 46

48 Community Financial Services: Overview of Market Share for Malaysia Market share Loans Total consumer (Household) 17.6% 17.5% 17.5% 17.6% 17.6% # 2 Auto (Purchase of transport vehicles) 25.0% 25.4% 25.7% 26.1% 26.5% # 2 Total mortgage * 13.3% 13.3% 13.2% 13.2% 13.3% # 2 Credit cards ** 18.0% 17.9% 17.9% 18.4% 18.8% # 1 Unit trust 51.6% 51.8% 51.8% 51.7% 51.1% # 1 Deposits Total deposits *** 17.9% 17.6% 17.9% 18.1% 18.4% # 1 Total core retail deposits ^ 17.9% 18.0% 17.6% 17.5% 17.7% # 2 Retail CASA ^ 24.6% 25.1% 24.9% 24.9% 24.5% # 1 Retail savings ^ 27.9% 28.3% 28.3% 28.3% 28.2% # 1 Demand deposits ^ 19.2% 19.7% 19.4% 19.1% 18.3% # 1 Retail fixed deposits ^ 14.5% 14.3% 13.9% 13.8% 14.4% # 2 Channels 1 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Sep-17 vs Dec-17 Internet banking - Subscriber base 44.6% 44.3% 43.6% 42.2% 41.0% # 1 Mobile banking - Subscriber base 31.4% 32.0% 31.7% 31.8% 31.7% # 1 Internet banking - Transaction Volume ^^ 52.2% 55.1% 55.1% 55.1% 54.8% # 1 Mobile banking - Transaction Volume ^^ 59.3% 42.7% 43.5% 48.7% 49.3% # 1 Branch network ^^^ 18.8% 18.8% 18.6% 18.6% 18.6% # 1 Market position Note: ¹ Rebased market share due to adjustment made to Industry data by BNM from Jan-15. * Refers to housing, shophouse and other mortgage loans ** Credit cards market share refer to receivables for commercial *** Total bank deposits inclusive of investment asset ( IA ) 47 ^ Without IA. With IA, the market share as at Dec 17 for Total Core Retail Deposits, Retail CASA, Retail Savings, Demand Deposits and Retail Fixed Deposits are 18.9%, 25.4%, 28.2%, 20.9% and 16.4% respectively (against MBB retail IA). ^^ Excluding non-financial transactions as per BNM guidelines ^^^ Industry numbers only available half yearly

49 RM billion RM billion RM billion RM billion Community Financial Services: Overview of Malaysia Loans Portfolio Consumer loans grew 5.2% YoY to RM163.3 billion led by mortgage and auto finance growth % YoY +2.1% QoQ Business Banking + SME loans grew by 3.2% YoY to RM40.3 billion led by SME growth of 18.3% YoY % YoY +1.5% QoQ Dec 16 Sep 17 Dec 17 Mass customer TFA on an upward trend of 0.8% YoY and 0.5% QoQ % YoY +0.5% QoQ Dec 16 Sep 17 Dec 17 Note: Business Banking and SME figures are before migration of accounts. HNW and Affluent customer TFA grew 5.9% YoY to RM197.5 billion % YoY +1.9% QoQ Dec 16 Sep 17 Dec 17 TFA Product per customer Note: Customer classification: HNW (IA>RM3m, TFA>RM4m); Affluent (IA between RM250k to RM3m, TFA between RM1m to <RM4m) TFA: Total Financial Assets (Deposits, Investments, Financing & Protection). Dec 16 Sep 17 Dec 17 TFA Product per customer 48

50 RM billion RM billion RM billion Community Financial Services: Overview of Malaysia Deposits Portfolio Total CFS deposits contracted by 0.8% YoY, due to reduction in high cost deposits (0.8)% YoY +3.0% QoQ Consumer deposits grew 0.5% YoY +0.5 % YoY +0.1 % QoQ Dec 16 Sep 17 Dec 17 Dec 16 Sep 17 Dec 17 Business Banking + SME deposits contracted by 3.0% YoY (3.0)% YoY +8.7% QoQ Our deposit strategy is focused on growing CASA, which has improved our NIM Consumer deposits showed positive growth of 0.5% YoY, mainly driven by growth in CASA of 3.3% YoY. Dec 16 Sep 17 Dec 17 49

51 Table of Contents Appendix: 1. Financial Performance Community Financial Services Global Banking Maybank Singapore Maybank Indonesia Other segments Affiliates 67 50

52 Global Banking: Overview of Malaysia Corporate Banking Portfolio Total GB loans increased 3.9% YoY to RM81.9 billion Trade Finance market share 26.2% RM billion Term Loan % YoY 25.1% 24.7% 24.5% 24.4% 39.2 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Short Term Revolving Credit % YoY Note: Market share of total trade products (On Balance Sheet items, Contingent Liabilities and Others) Corporate Banking GIL ratio at 1.58% as at Dec 2017 Trade Finance and Others % YoY 1.85% 1.93% 1.97% 1.92% 1.58% Dec 17 Sep 17 Dec 16 Note: Term Loan includes foreign currency denominated accounts, while Trade Finance and Others is combined with Overdraft. Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 51

53 RM billion Global Banking: Overview of Group Securities and Global Markets Portfolio Group Securities Portfolio¹ grew 17.9% YoY Group Securities Portfolio¹: 37.6% Foreign Securities as at % FY2016 Others (NIDs, BA, etc) 7.8% PDS Foreign 18.6% 29.4% PDS/Corp Bonds - Domestic RM billion Government Securities - Domestic 21.7% 22.5% Government Securities - Foreign Others (NIDs, BA, etc) 5.9% PDS Foreign 18.5% 31.7% PDS/Corp Bonds - Domestic RM billion Government Securities - Domestic 24.8% 19.1% Government Securities - Foreign 40% of PDS (Maybank Conventional Malaysia) rated AA or above as at FY Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Govt. Securities PDS/Corp Bonds Others Note: ¹ Group Securities Portfolio is inclusive of Financial assets designated upon initial recognition( part of FVTPL) 62.0% Others RM21.8 billion 16.2%, AAA 0.7% Commercial Papers 20.6%, AA 0.4%, A 0.1%, <A 57.8% Others RM34.4 billion 0.3% Commercial Papers 25.4%, AAA 14.1%, AA 2.3%, A Note: Others category refers to Government Guaranteed bonds, Partially Government Guaranteed bonds and non rated bonds 0.1%, <A 52

54 RM million Global Banking: Overview of Group Investment Banking Portfolio Total Income Breakdown by Country Total Income for Maybank Kim Eng 1 Hong Kong Others Philippines 2% 4% 4% Indonesia 4% 1,408.8 (5.1)% 1,337.3 Thailand 21% RM1,337.3 million Malaysia 39% Singapore 26% FY Brokerage Market Share by Country Country Rank Market Share Trading Value (USD mil) Thailand 1 6.8% 45,715.7 Malaysia 3 9.8% 28,816.1 Philippines 7 4.4% 3,440.3 Indonesia % 5,610.8 Hong Kong Tier 2 0.6% 33,342.5 Singapore % 18,113.8 Agency/ Guarantee Fees 3.1% Vietnam > % 2,372.0 Underwriting & Placement Fees Note: 6.3% 1 Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings Fee-based Income for Malaysia Other Fee Income 17.1% Advisory Fees 16.6% Brokerage Fees 41.0% Arranger Fees 15.9%

55 Table of Contents Appendix: 1. Financial Performance Community Financial Services Global Banking Maybank Singapore Maybank Indonesia Other segments Affiliates 67 54

56 Maybank Singapore: P&L Summary SGD million FY2016* YoY Net fund based income % Net fee based income % Net income 1, % Overhead expenses (387.87) (352.72) 10.0% Operating profit % Profit before taxation % 55 Net fund-based income rose 31.6%, largely driven by net interest margin improvement. Fee-based income increased 19.1%, led by higher wealth management, trade-related and treasury income. Overhead expenses rose 10.0% arising from higher revenue-related spend. Buoyed by a combination of broad-based revenue growth and disciplined cost management, operating profit expanded 41.4%. PBT rose by a slightly slower pace of 30.9% to reach SGD million as additional loan loss allowances were set aside, mainly for oil & gas related exposure. Note: * FY2016 figures are restated numbers to align the Islamic banking income re-classification adjustments made effective 2017.

57 SGD billion SGD billion SGD billion Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Dec 16 Dec 17 Maybank Singapore loans rose 4.3% YoY % YoY change % YoY 40.6 Consumer 40% Corporate 60% Other (Consumer) Car Loan Housing Loan Others (Corporate) Non-Bank financial Inst General Commerce Building & Construction Consumer deposits account for 51% of deposits Dec 16 Dec % YoY Consumer 51% Corporate 49% Consumer deposits rose marginally to S$23.6 billion as a 21.3% jump in CASA was partially offset by an outflow of FD. Consumer - Time Deposits Consumer CASA Business Time Deposits Business CASA Business deposits were higher on the back of a 11.8% increase in CASA Robust CASA growth of 16.6% YoY; CASA ratio also improved to 31.6% in Dec 2017 from 28.1% a year ago 4.5% 0.5% 6.4% 5.8% 6.4% 4.9% 8.1% 8.0% 4.6% 4.3% Time Deposits Demand Deposits Savings Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Maybank Singapore Growth Industry Growth Dec 16 Dec 17 CASA Ratio: 31.6% 56

58 Table of Contents Appendix: 1. Financial Performance Community Financial Services Global Banking Maybank Singapore Maybank Indonesia Other segments Affiliates 67 57

59 Maybank Indonesia: P&L Summary IDR billion FY2016 YoY 4Q 3Q QoQ Net Fund Based income 7,702 7, % 1,975 1, % Net Fee Based income 2,729 2, % (14.2)% Net income 10,431 10, % 2,563 2,576 (0.5)% Overhead expenses (5,793) (5,517) 5.0% (1,300) (1,429) (9.1)% Personnel (2,387) (2,381) 0.3% (516) (637) (19.0)% General and Administrative (3,406) (3,137) 8.6% (784) (792) (1.1)% Operating profit 4,638 4, % 1,264 1, % Provisions Expenses (2,134) (1,980) 7.8% (787) (511) 54.0% Non Operating (Expense)/Income (36.9)% 44 (18) (>100)% Profit Before Tax and Non-Controlling Interest 2,520 2,614 (3.6)% (15.8)% Tax and Non-Controlling Interest (716) (665) 7.5% (165) (168) (1.5)% Profit After Tax and Non-Controlling Interest 1,804 1,948 (7.4)% (21.1)% EPS - Basic (IDR) (7.4)% (21.0)% Note: FY2016 figures are the restated to reflect Indonesia long form report for consistency 58

60 Maybank Indonesia: Overview of Maybank Finance Operations Revenue and Profit Before Tax IDR billion % 1,088 Financing stand alone IDR billion 5, % 6, % FY2016 Revenue Profit Before Tax Dec 16 Dec 17 Asset Quality Unit Financing (unit) 0.39% 0.41% 0.39% 0.36% (7.1)% 47,529 44,145 (7.2)% 47,927 44, % 0.33% 0.32% 0.30% 0.26% (17.8)% 0.22% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 NPL Net NPL Gross New Used Total Dec 16 Dec 17 59

61 Maybank Indonesia: Overview of WOM Finance Operations Revenue and Profit Before Tax IDR billion +11.8% Financing stand alone IDR billion +14.6% 1,928 2,154 6,051 6,935 +>100% FY2016 Revenue Profit Before Tax Dec 16 Dec 17 Asset Quality Unit Financing ( 000 unit) +9.5% 3.32% 2.96% 2.84% 2.60% 2.17% +4.2% (32.3)% % % 1.17% 1.21% 1.08% 1.05% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 NPL Net NPL Gross New Used Multipurpose Total Dec 16 Dec 17 60

62 Table of Contents Appendix: 1. Financial Performance Community Financial Services Global Banking Maybank Singapore Maybank Indonesia Other segments Affiliates 67 61

63 RM billion Islamic Banking: Performance Overview Group Islamic Banking Financial Performance RM million FY2016 YoY Total Income 4, , % Profit Before Tax 2, , % Financing & Advances 174, , % Deposits & Investment Account: 162, , % Deposits from Customers 138, , % Investment Account 24, ,544.6 (22.2)% Group Islamic Banking s performance has improved YoY, deriving from key markets in Malaysia, Indonesia and Singapore Maybank Islamic: Key Financial Ratios Key Financial Ratios FY2016 Maybank Islamic: Total Gross Financing grew to RM163.6 billion 3% % AITAB Mortgage Term Financing Others (CFS) Term Financing Others (GB) CFS: 8% 6% Note: Figures are as per latest segmentation breakdown % Maybank Islamic Contribution to Maybank Malaysia Loans and Financing as at Dec Year % GB: 12% Dec 16 Dec 17 2% 22.6 Contribution Net Profit Margin (YTD) 1.90% 1.82% Total Capital Ratio (TCR) 20.78% 18.55% Cost to Income Ratio (CIR) 35.12% 36.30% Direct FDR % 95.7% Note: ¹ Direct Financing to Deposits Ratio (FDR) comprising gross financing against deposit and Unrestricted Investment Account (exc. RPSIA assets and liabilities) 62 Maybank Islamic, 56.9% Maybank Conventional Malaysia, 43.1% Dec % Mar % Jun % Sep % Dec %

64 Islamic Banking: Market Share Maybank Islamic Market Share (Malaysia) Market Share by Product (Malaysia) 34.1% 33.5% 33.6% 33.6% 33.8% Key Products Dec 17 Dec 16 Automobile Financing 45.0% 44.3% 30.4% 29.8% 29.6% 29.7% 30.4% Home 27.7% 28.4% Term financing 31.6% 30.1% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Financing Deposits & Investment Accounts Source for industry numbers: Latest BNM Monthly Statistical Bulletin Maybank Islamic ranks No.1 by Asset Market Share in Malaysia Malaysia Asset Market Share Sep 17 Rank Maybank Islamic 31% 1 CIMB Islamic 12% 2 Source for industry numbers: Latest BNM Monthly Statistical Bulletin Sukuk League Table Ranking Dec 17 Global Sukuk League Table Ranking Market Share (%) Amount (USD million) Issues #1 Maybank 13.07% 7, MYR Sukuk League Table Ranking Market Share (%) Amount (USD million) Issues #1 Maybank 30.88% 6, RHB Islamic 9% 3 Source: Latest BNM monthly statistical bulletin & respective Bank s Financial Statements Source: Bloomberg 63

65 RM million RM billion Insurance and Takaful: Performance Overview Gross Premium Single Premium Regular Premium Credit Premium Group Premium Total Life/Family Fire Motor MAT Personal Accident Misc Total General Total Life/Family & General >100% 22.3% FY % 2.6% 30.0% 7.7% (3.7)% (24.9)% 9.1% (4.0)% (6.9)% 11.7% 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 RM million Life / Family (New Business) Market Share AIA Ins. & Tak. Prudential Ins. & Tak. GE Ins. & Tak. Etiqa Ins. & Tak. General Insurance and Takaful Market Share Etiqa Ins. & Tak. Allianz Insurance HL-MSIG Ins. & Tak. 8.9% 14.5% 13.6% 0.0% 10.0% 20.0% 8.0% 10.5% 21.5% 11.8% 0.0% 5.0% 10.0% 15.0% Note: Market Share is for period Oct 16 Sep 17 (Source: LIAM / ISM Statistics) No. 4 in Life/Family (New Business) No. 1 in General Insurance and Takaful Profit Before Tax Total Assets % YoY % YoY Dec 16 Dec 17 Life/Family General Shareholder's Fund Note: PBT presented here refers to Maybank Ageas Holdings Berhad (MAHB), and includes an estimated transfer of RM100.8 million from Family Fund in 4Q. Dec 16 Dec 17 64

66 PESO million PESO million Maybank Philippines: Performance Overview Key Highlights Revenue and PBT Revenue increased by 10.8% YoY, led by higher net interest income (NII). Increase in NII contributed by higher interest income from term loans. PBT increased to PESO1,496.7 million, driven by higher revenue, coupled with lower provisioning. Gross loans rose by 17.4% YoY driven by growth in term loans. 5, % YoY +>100% YoY 5,889.9 Revenue PBT Customer deposits advanced by 4.4% YoY mainly supported by growth in CASA. Gross impaired loans ratio improved by 124 bps to 2.11% due to decrease in NPL FY2016 1,496.7 Gross Loans and Deposits Key Ratios FY2016 Return on assets 1.46% 0.34% Return on equity 9.56% 1.75% Cost-to-income ratio 70.46% 70.13% Loans-to-Deposit ratio 94.28% 83.81% Gross Impaired Loans Ratio 2.11% 3.35% No. of branches % YoY +17.4% YoY 76, , , ,136.8 Dec 16 Dec 17 Gross Loans Customers Deposits 65

67 Table of Contents Appendix: 1. Financial Performance Community Financial Services Global Banking Maybank Singapore Maybank Indonesia Other segments Affiliates 67 66

68 VND billion VND billion An Binh Bank: Performance Overview Key Highlights Revenue and PBT Revenue increased by 19.3% YoY, mainly due to higher net interest income. PBT increased to VND619.0 billion, mainly contributed by higher revenue. Gross loans expanded by 15.4% YoY driven by growth in retail lending. Customer deposits rose by 15.1% YoY mainly due to growth in certificate deposit. Gross NPL ratio increased by 33 bps YoY to 2.19%, mainly contributed by higher NPL % YoY 2, >100% YoY FY2016 2, Revenue PBT Gross Loans and Deposits Key Ratios FY2016 Return on assets 0.80% 0.40% Return on equity 10.50% 5.00% Cost-to-income ratio 56.70% 53.28% Loans-to-Deposit ratio 95.10% 94.88% Gross NPL Ratio 2.19% 1.86% +15.1% YoY % YoY 60, , , ,227.5 Dec 16 Dec 17 Gross Loans Customers Deposits 67

69 PKR billion PKR billion MCB Bank: Performance Overview Key Highlights Revenue and PBT Revenue increased by 1.3% YoY, led by higher non interest income (NOII). 1.3% YoY PBT decreased by 16.6% YoY, mainly attributed by higher administrative expenses (16.6)% YoY Gross loans increased by 10.7% YoY, mainly driven by growth in domestic loans and Islamic financing. Customer deposits grew by 16.9% YoY mainly contributed by higher CASA Revenue PBT Gross NPL ratio increased mainly due to higher NPL. FY2016 Gross Loans and Deposits Key Ratios FY2016 Return on assets 1.89% 2.11% Return on equity 17.65% 18.76% Cost-to-income ratio 50.14% 40.62% Loans-to-Deposit ratio 46.87% 49.51% Gross NPL Ratio 9.47% 5.65% +16.9% YoY % YoY Dec 16 Dec 17 Gross Loans Customers Deposits 68

70 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. 69