20 May 2014 FY2014 Results Investors Presentation · 20 May 2014 FY2014 Results – Investors Presentation AshokRamamurthy, GroupManagingDirector Your Bank. Malaysia’s Bank. AmBank

1FY2014 Results – Investors Presentation

20 May 2014

FY2014 Results –Investors PresentationAshokRamamurthy, Group ManagingDirector

Your Bank. Malaysia’s Bank. AmBank.

2Your Bank. Malaysia’s Bank. AmBank.

FY2014 Results – Investors PresentationYour Bank. Malaysia’s Bank. AmBank.

AGENDA Page

1. EXECUTIVE SUMMARY 3

2. STRATEGIC PARTNERSHIP/INTEGRATION UPDATES 10

3. FY2014 GROUP FINANCIAL PERFORMANCE 17

4. OUTLOOK & STRATEGIC PRIORITIES 32

5. DIVISIONAL STRATEGY & PERFORMANCE 38

6. SUPPLEMENTARY INFORMATION 45

- AMBANK GROUP

- ECONOMY & INDUSTRY


FY2014 Results – Investors Presentation

FY2014 Performance Highlights

7th consecutive year of record performance, positive ROE trend

Achieved FY2014 financial performance aspirations

PATMI up 10.0% yoy, ROE of 14.1%

Discipline approach to cost management, CTI of 45.5% despite planned investment

Sound asset quality and capital position, issued Malaysia‟s first capital market Basel III compliantTier 2 Subordinated Sukuk

Propose dividend payout of 41%

Unveiled new brand chapter – Your Bank. Malaysia’s Bank. AmBank. to re-position AmBank Groupas a modern Malaysian diversified financial solutions partner that understands and meet the diverseneeds of modern Malaysians

Created a new retail banking website, www.ambank.com.my with a fresh new look and user friendlynavigation

Phase 1 of core banking system, new front end and data warehouse successfully implemented

Wholesale Banking, new non-retail business operating model, operationalised on 1 April 2014

Niche acquisitions – complementing our portfolio, integrations on track

New strategic partnership with MetLife International formed (Life Assurance and Family Takaful)

Won Bank of The Year Award 2013, by The Banker UK

Consistent & sustainable 1

Investing in customer centricity2

Value creation3

http://www.ambank.com.my/









FY2014 Key Financial Achievements

Financial

Aspirations

FY2014

Aspirations

FY2014

PerformanceAchievements

PATMI 10 – 12% 10.0% P

ROE 14.0 – 14.5% 14.1% P

CTI≤47%≤45%

(Banking Group)

45.5%

43.3% P

Gross impaired loans ratio

≤2.0% 1.86% P

Dividend payout40 – 50%

Payout

Interim: 7.2sen/share

Proposed final: 16.9sen/share

41%P



Progressively delivering on our strategic agenda

Integrate acquisitions and deliver synergies

Achieved synergies, both integration on track:

Kurnia – Achieved total cost synergies of RM63.7 mil. Maintained #1 motor insurer

MBF – Achieved RM20.6 mil synergies. Maintained position as top 3 merchant acquiring business with >55,000 merchants in force

Pursuing “Save to Invest” programme to achieve cost synergies

Wholesale Banking consolidated five divisions to two, redesigned sales and delivery model

Implemented new core banking system (AmBanCS), front-end and data warehouse for operational improvements, better customer analytics capabilities & revenue growth

Capitalising on cross sell for organic growth

• Strengthen joint-account planning & collaboration under new wholesale banking structure

• FX and Rates businesses have grown significantly

Delivering cohesive customer experience via new brand repositioning

AmLife & AmFamily Takaful – formed new strategic partnership with MetLife

Regulatory approvals obtained (1-Apr-14), introducing new strategy plans with MetLife

AmIslamic – issued Malaysia‟s first capital market Basel III compliant Tier 2 Subordinated Sukuk (RM3 bil)

Have in place Tier 2 Basel III-compliant Subordinated Notes Programme (RM4 bil)

Upgraded to AA2 by RAM (Nov 2013) on AmBank Group, banking subsidiaries and programmes (recognised on continued strengthening credit fundamentals)

CET1 at 9.7%, above 2014 targeted levels (8.5% ±1%)

Simplify business model and streamline

processes

Accelerate organic growth (focus on cross sell), flow business, small

business & emerging affluent customers

Build scale in specialist

businesses with partners

Optimise capital and holding company

structures

1

2

3

4

5



-13.3

28.231.6

34.7

44.749.6

54.0

59.3

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

38.8% 40.2%43.3% 42.0%

39.9% 41.6%

47.8%45.5%


-283

669

8611,009

1,3431,484

1,6211,782

-5.8%

11.5% 11.7% 11.5%

13.6% 13.8% 13.9% 14.1%


PATMI (RM'mil)

ROE (%)

-0.17%

1.02% 1.04%1.13%

1.39% 1.39% 1.37%1.45%


CTI

Performance on target, with improved cost management

CAGR FY07-14: 0.23%YoY growth: 0.08%

CAGR FY07-14: 12.4%YoY growth: 9.7% YoY change: -2.3%

ROECAGR FY07-14:2.8%YoY growth: 0.2%

PATMICAGR FY07-14: 18.1%YoY growth: 10.0%

1. CAGR for PATMI & ROE based on FY2007 underlying profits of RM556.9 mil2. FY2013 has been restated to reflect adoption of new MFRS

RM (sen) (%)

(%)

PATMI & ROE ROA

CTIEPS (basic)



9.4% 9.7%8.6% 8.4%

9.7% 9.8% 9.8% 10.4%

11.1% 11.2%12.5% 14.0%

15.2%15.3% 14.0% 14.7%

14.8%15.5%


CET-1 Tier-1 RWCAR/Total Capital

6.2%

3.7%

2.6%

3.81%3.33%

2.45%1.98% 1.86%


50.354.4

57.9

64.871.1

75.7

82.687.2


5.3 6.3 7.0 8.5 10.4 13.2 16.8 18.7

45.957.9

65.270.7

81.584.6

93.198.3

13% 11% 11% 12% 14%17%

20% 21%


Customer deposits (RM'bil)

CASA(RM'bil)

CASA Composition (%)

Net Lending

Sound risk and capital profiles, focusing growth in targeted segments

CAGR FY07-14: 8.2%Net lending YoY growth: 5.6%Gross lending YoY growth: 5.3%

Customer DepositsCAGR FY07-14 : 11.5%YoY growth: 5.6%

GP3 MFRS 139

YoY change: -0.12%

(RM‟bil)

(%)(%)

Customer Deposits2 & CASA

Net Lending

GIL ratio Capital ratio

1. FY2013 has been restated to reflect adoption of new MFRS2. Customer deposits includes stable funding sources

LDR88.7%2

Basel II Basel III

CASACAGR FY07-14: 19.8%YoY growth: 11.2%



32 628 -64 13

FY10 FY11 FY12 FY13 FY14

49 6093 116

175


674744

1,058 1,112 1,055


537 566509

592646


PAT (RM‟mil)

PAT (RM‟mil) PAT (RM‟mil)

1 Wholesale banking represents Business, Corporate & Institutional Banking, Investment Banking, Markets & Loan Rehab activities2 FY2013 has been restated to reflect adoption of new MFRS

PAT (RM‟mil)

Retail Banking Wholesale Banking1

General Insurance Life Assurance & Family Takaful

9.2%

5.1%

50.6%

>100.0%

Stronger growth in retail banking and insurance businesses



AGENDA Page







- AMBANK GROUP




Transaction Highlights

Strategic Partnership

19 Dec 2013: AmBank Group and MetLife reached agreement to seek regulatory approvals

28 Apr 2014: Signed strategic partnership for the Life and Family Takaful businesses, total consideration of RM812 mil. The final Consideration will be determined on conclusion of the review of the closing net assets of AmLife and AmTakaful as at 30 April 2014 by the auditors jointly appointed by the parties

MetLife1 to own 50% plus one share in AmLife2, remaining shares owned by AMAB3

AMAB3 to own 50% plus one share in AmFamily4, remaining shares owned by MetLife

Exclusive 20-year bancassurance and bancatakaful agreements for the distribution of life insurance and family takaful products through banking channels

1. MetLife: MetLife International Holdings Inc2. AmLife: AmLife Insurance Bhd

3. AMAB: AMAB Holdings Sdn Bhd4. AmFamily: AmFamily Takaful Bhd

Our strategic partnership with MetLife

AmLifeInsurance

Berhad

AmFamilyTakaful Berhad

AMMB Holdings Berhad

Pre-transaction Post Transaction

100%

AMAB Holdings Sdn Bhd

MetLife Inc

100% 100%

~50%~50%


MetLife International Holdings, Inc.


AmLifeInsurance

Berhad

AmFamily Takaful Berhad

100% 100%



Aligned vision with complimentary strengths

Creating a modern, innovative, customer centred insurer

Strong domestic reputation & brand

Domestic market insights

Integrated bancassurance

operating model

Nationwide network & multi customer touch

points

Financial strength & heritage

Global expertise and “IP” transfer

Leading innovative product

development(wealth accumulation

and protection, retirement, health)

Multi channel expertise

(direct & digital channel, agency, bancassurance)



Working together to capture domesticgrowth opportunities

Transaction Collaborative Integration

19 Dec 13

AMMB & MetLife reached

agreement to seek regulatory

approval

1 Apr 14 28 Apr 14 30 Apr 14 ~12 months

Obtained regulatory approvals

Signed share sale &

exclusive agreements

Completion Completion of collaborative integration

Today

Leveraging AmBank Group and MetLife combined strengths to create customer-centric and modern life assurance and family takaful solutions for Malaysia

o AmBank Group has ~40 years‟ experience in understanding Malaysian customers

o MetLife is a leading global provider of insurance, annuities and employee benefit programmes, with 90 million customers in nearly 50 countries around the globe

Committed to a seamless transition and supporting all existing and future customers and business partners

Combined management expertise (board representatives and key senior positions from both parties)

6 May 14

Unveiled new brands

AmMetLife & AmMetLife

Takaful



Reaffirms AmBank Group‟s commitment and focus on delivering our strategic agenda

o Accelerate recurring non-interest income

o Enhance cross-selling efforts and leverage banking platforms

o Build scale in specialist businesses with partners

Leverage strength of AmBank Group & MetLife to create a modern, innovative, customer centered insurer in Malaysia

Collaborative integration process with extensive resources provided by MetLife & AmBank Group

New brands, AmMetLife & AmMetLife Takaful created, reflecting the coming together of two renowned and strong organisation with shared core values of integrity, partnership and innovation

Communication in progress (employees, customers, agents, business partners)

Improve profitability with the aspiration to create a market leading business within the top five carriers in Malaysia

Enhance reputation: Customer Centric, Trusted, Modern

Collaborative Integration

Expected Outcome

Strategic Fit

Partnership to deliver innovative andcustomer centric financial planning andprotection products



RM641.4 mil cash purchase price (valuation: P/B 2.9x based on net assets @ 30 Nov 2012)

Enlarged merchant force (>55,000 merchants)

IT system integration revised to FY2015 – core banking dependency

Integrating people, processes, operations and IT systems, expected to complete by FY2015

Integrations of Kurnia and MBF on track

CIC increased to ~500,000 Combined merchant > 50,000

1. Includes depreciation, exclude funding cost2. Updated

2.7

19.0

3.9

6.8

5.6 FY14 synergy estimates by major categoriesRM million

6.3 20.6Target Actual

6.9

4.5

2.9

Headcount Procurement & rationalisation

Cost of fundsCross sell &

othersTotal

RM1.627 bil cash purchase price (valuation: P/B 1.95x based on net assets @ 30 Jun 2012)

GWP of >RM1.7 bil (~10% market share), >3.6 mil policyholders

Integration on track:

o All functions consolidated to the single operating model and established 32 dual branded branches

o Claim and Operations systems successfully implemented with sales integration to be completed in 2014

11.7

60.0

14.6

10.5

23.2

Headcount

reductionProcurement Corporate

rechargeRationalisation Total

Leading general and #1 motor insurer in Malaysia

Synergy estimates by 4 major categoriesRM million

17.1

12.9

10.8

22.9

63.7Target Actual

https://www.kurnia.com/malaysia



20 May 2014

FY2014 Results –Investors PresentationMandySimpson,ChiefFinancialOfficer




AGENDA Page







- AMBANK GROUP




Impact of new accounting standards

PATMI (yoy growth) +10.6% +10.0%

ROE 14.3% 14.1%

CTI 45.3% 45.5%

NIM 2.61% 2.68%

Non-interest income % 35.8% 33.9%

Income (yoy growth) +8.5% +8.3%

Expenses (yoy growth) +3.0% +3.1%

FY2014(Before adoption)

FY2014(Reported)



78.1

80.2

81.3

82.6

84.283.6

84.8

87.2

Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14

(RM‟bil)

C. Deposits QoQ growth: 2.6%CASA QoQ growth: 8.1%

440383 393 405

462 441 416464

15.5%13.0% 13.2% 13.8%

15.1% 13.9% 13.1%14.6%

Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4Y14

PATMI (RM'mil)ROE (%)

42.5%45.4%

50.7% 51.9%

47.7% 47.6%44.3%

42.2%


PATMI QoQ growth: 11.5%ROE QoQ growth: 1.5%

QoQ growth: 2.8%YoY growth: 5.6%

Strong QoQ performance underpinned by cost management

(%)

PATMI & ROE CTI

Net LendingCustomer Deposits2 & CASA

1. FY2013 has been restated to reflect adoption of new MFRS2. Customer deposits include stable funding sources

QoQ change: -2.1%

14.5 14.5 15.4 16.8 18.0 16.5 17.3 18.7

88.0 91.4 90.8 93.1 95.4 96.3 95.8 98.3

18% 18% 19% 20% 21%17% 18%

21%


Customer deposits (RM'bil)CASA(RM'bil)CASA Composition (%)



18.7% 7.6% 3.1% >100.0%

1,782.4 mil

10.0% 8.3% 13.1% 14.5% 12.5%

1,620.7 mil

3.6%

FY13 PATMI FY14 PATMI Positive growth in FY14 Contraction in FY14

Non-interest income and better cost control underpinned results

Growth 21.4%

PATMIFY13

Net Interest Income

Non-Interest Income

Total income

Expenses PBPProvisions/Allowances

PBTTax & Zakat

PAT MIPATMIFY14

FY14 (RM’mil)

3,128.6 1,602.7 4,731.4 2,150.9 2,580.4 132.2 2,448.2 577.2 1,871.1 88.7

FY13(RM’mil)

3,019.2 1,349.8 4,369.1 2,087.0 2,282.1 143.1 2,139.0 475.5 1,663.5 42.8

1. FY2013 has been restated to reflect adoption of new MFRSPATMI: profit after tax and non controlling interests



5.1% 50.6% 10.0%>100.0%

1. FY2013 has been restated to reflect adoption of new MFRS*Performances reflected within divisional outcomes

9.2% 80.1% 8.2%

Conventional PATMIIslamic PATMI Positive growth in FY14 Contraction in FY14

1,620.7 mil

1,782.4 mil

Growth >100.0%

86%83%

17%14%

PATMIFY13

Retail WholesaleGeneral

Insurance

Life Assurance &

Family Takaful

Operating Segments

MI Islamic *PATMI FY14

% of Composition

36% 59% 10% 1% (1%) (5%)

FY14 (RM’mil)

646.2 1,055.3 175.0 12.9 (18.4) 88.7 248.0

FY13(RM’mil)

591.7 1,112.0 116.2 (63.9) (92.5) 42.8 270.3

Retail and insurance divisions delivered stronger profit growth

PATMI by Divisions



Total Income FY13 Retail Wholesale AmG AmLife + AmFam OptSeg Total Income FY14

66% 69%

34% 31%

66% 69%

34% 31%

1.2% 8.3%6.1%

4,369.1 mil

4,731.4 mil

YoY Growth 30.8% >100.0% 33.0%

68.8

45.5

Total non interest income

Total interest income Positive interest income growth in FY14

Contraction interest income in FY14

Positive non interest income growth in FY14

Contraction non interest income in FY14

IncomeFY13

Retail WholesaleGeneral

InsuranceLife Assurance & Family Takaful

Operating Segments

Income FY14

% of Composition

42% 39% 11% 3% 5%

FY14

(RM’mil)1,998.6 1,840.3 520.9 150.0 221.6

FY13(RM’mil)

1,884.4 1,862.2 398.3 57.5 166.6

Diversified income contribution across the divisions

Income by Divisions

-34.0

12.0

139.0

-16.4

89.0

3.5

-9.9

64.8

Note: FY2013 has been restated to reflect adoption of new MFRS



Fees on loans AUM IB business Other fee inc Total Fee income Sales Trading Other trading inc Total Trading &Investment

General Life & Takaful Total Insurance Other

* IB business includes brokerage fees, underwriting fees and corporate advisory & guarantees

As % of total income 31% 34%

>100.0% 24.0%Growth 1.8% 5.7% 33.6%

1,602.7 mil

<100.0%18.8% 27.7% >100.0% 18.7% 10.1%

FY14 non interest income Positive growth in FY14 Contraction in FY14

Retail: +53milWholesale: +11mil

FY13 non interest income

1,349.8 mil

FY13Fees on

lending & securities

AUMIB

business*Other fee income

Total Fee Income

Sales TradingOther trading& investment

Trading & Investment

GeneralLife &

TakafulInsuranceBusiness

Others FY14

% of Composition

21% 10% 11% 7% 49% 8% 8% 0% 16% 26% 3% 29% 6%

FY14

(RM’mil)329.0 158.6 182.0 116.1 785.7 131.4 121.6 -5.8 247.2 424.5 47.4 471.9 97.9

FY13(RM’mil)

265.4 155.8 172.1 120.1 713.4 110.6 183.2 48.2 342.0 309.8 -59.6 250.2 44.2

3.3%

Non-interest income movement

Strong NonII growth, reflecting higher cross-sell penetration

37.0% 88.6%

Note: FY2013 has been restated to reflect adoption of new MFRS



272.2268.5

0.6 2.77.0

FY13 Asset mix Funding mix Rates FY14

264.6

276.5

1.8 0.4

13.3

Q3FY14 Asset mix Funding mix Rates Q4FY14

Margin compression in retail, COF progressively improving

Note :1 NIM includes Net Financing Income from Islamic Banking business2 FY10-FY14 based on internal data computation3 FY2013 has been restated to reflect adoption of new MFRS

COF

NIM

SRR

OPR

3.7 bps

FY10 FY11 FY12 FY13FY13

[Restated]3 FY14

FY13 Assets mixFunding

mixRates FY14

NIM and COF (YOY)

YTD NIM (bps) drivers

Q3FY14 Assets mixFunding

mixRates Q4FY14

11.9 bps

QoQ NIM (bps) drivers

MFR

S 1

0

2.68%

2.92%

3.13% 3.10% 3.10% 3.09%2.98% 2.94%

2.75%2.68% 2.72% 2.69%

2.25%

2.75%

3.00% 3.00%3.00% 3.00%

1.00% 1.00%

4.00% 4.00% 4.00% 4.00%

FY10 FY11 FY12 FY13 1 Apr 2013 FY14Cost of funds NIM OPR SRR

2.68%

2.92%

3.13% 3.10% 3.10% 3.09%2.98% 2.94%

2.75%2.68% 2.72% 2.68%

2.25%

2.75%

3.00% 3.00%3.00% 3.00%

1.00% 1.00%

4.00% 4.00% 4.00% 4.00%

FY10 FY11 FY12 FY13 1 Apr 2013 FY14Cost of funds NIM OPR SRR



89.0% 89.4%

90.9%

21.0% 20.0%

24.0%41.8% 40.2% 40.5%

44.3% 43.3%

Expenses well managed despite acquisitions and planned investments

FY13 Personnel EstablishmentMarketing &

CommAdmin & others

Synergisticbenefit cost

FY14

% of Composition 58% 24% 8% 8% 2%

FY14 (RM’mil) 1,255.5 513.2 179.6 173.3 29.3

FY13 (RM’mil) 1,216.9 499.2 164.8 160.7 45.4

3.2% 2.8% 9.0% 7.8%

47.8% 45.5%CTI

YoY Growth

RM’mil

2,087.0

2,150.9

Expense growth drivers

Banking Group CTIAmGeneral Combined

Operating RatioAmLife Management

Expense Ratio

FY12 FY13 FY14FY12 FY13 FY14FY10 FY11 FY12 FY13 FY14

35.5% 3.1%

*

* FY13 based on Kurnia 6 months performance



95.6%99.6%

104.6%

114.6%129.3%

127.4%

Industry AmBank Group

173.3

67.8

147.3

0.9

71.0182.7

129.3%127.4%

2.1%

1.1%

1.4%

3.18%

0.97%0.60% 0.88%

6.2%

3.7%

2.6%1.5%

10.4%

6.3%

4.1%

2.8%3.81%

3.33%

2.45% 1.98% 1.86%0.50%

0.21% 0.08%

2.89% 2.63% 2.43%

3.18%

0.97%0.60%

0.88%

6.2%

3.7%

2.6%

1.5%

10.4%

6.3%

4.1%

2.8%

3.81%3.33%

2.45% 1.98% 1.97%0.50%

0.21% 0.01%

2.87% 2.64% 2.41%

Net Provisions Charge Net NPL Ratio Gross NPL Ratio Gross Impaired Loans Loan Loss Charge(MFRS139) Loan Loss Reserve

Loan Loss Coverage

Good asset quality, loan loss coverage higher than industry

195 bps

MFR

S 1

39

MFR

S 1

39

RM‟mil

GP

3

FY2007 FY2008 FY2009 FY2010 1/4/2010 FY2011 FY2012 FY2013 FY2014

FY13 loan losscoverage

Collective allowance

Individual allowance

Impaired loans &

financing

FY14 loan loss

coverage

FY13 Allowance for impairment

Individual allowance

Collective allowance

Recovery from loans sold to Danaharta

Impaired loans –

recovered & written-off

FY14 Allowance for impairment

Asset quality indicators

Allowance for impairment on loans & financing (P&L) Movement in loan loss coverage

FY2012 FY2013 FY2014

* Loan loss reserve is computed using collective & individual allowance over net loans

AmBank Group

Industry



Growth in selective customer segments and economic sectors

Retail Non retail

1.1% 11.2%

84.8bil

8.5% 7.8% 11.1% 3.8% 11.5% 5.3%

89.3bil

5.7%

No

n-re

tail

Reta

il

1.0%

Non-RetailRetail Positive growth in FY14 Contraction in FY14

Gross LoanFY13

Auto Financing

Mortgage Cards Co-opAsset

FinancingWholesale Others

Gross Loan FY14

% of Composition

29.1% 19.6% 2.3% 1.8% 2.8% 44.7% -0.2%

FY14 (RM’bil)

26.0 17.5 2.1 1.5 2.5 39.9 (0.2)

FY13(RM’bil)

26.2 16.1 2.3 1.7 2.8 35.9 (0.2)

Gross Loan / Financing movement

56%

44%

58%

42%

Your Bank. Malaysia’s Bank. AmBank.27FY2014 Results – Investors Presentation

3.83.0 8.2 1.3 4.6 5.8

2.9 3.0 7.8 1.2

47.0

0.4

89.3

Mar-14

32.2 8.4 96.7 14.0 52.1 89.9

29.8 87.3 72.6

38.6

706.7

18.4

1,246.7

Mar-14

2.6% 0.7% 7.8% 1.1% 4.2% 7.2% 2.4% 7.0% 5.8% 3.1% 56.7% 1.5%

4.3% 3.4% 9.2% 1.5% 5.2% 6.5% 3.2% 3.0% 8.7% 1.7% 53.0% 0.1%

Loans AmBank Group vis-à-vis Industry

Source : BNM, financial statementYour Bank. Malaysia’s Bank. AmBank.

AmBank Group

Industry

AgricultureMining &

QuarryingManufacturing

Electricity, Gas & Water

ConstructionWholesale,

Retail, Restaurant

Transport, Storage &

Com

Finance, Insurance,

& Biz. Real Estate

Education & Health

Household OthersTotal Loans

5.3%

LoansComposition

YoYGrowth

5.1% 18.7% 1.4% 46.7% 12.4% 5.6% 7.2% 15.6% 14.6% 12.1% 11.7% 32.1% 10.2%

2.6% 0.7% 7.8% 1.1% 4.2% 7.2% 2.4% 7.0% 5.8% 3.1% 56.7% 1.5%

3.83.0 8.2 1.3 4.6 5.8

2.9 2.7 7.8 1.5

47.3

0.1

89.3

Mar-14

17.7% 69.3% 4.7% 96.3% 33.6% 6.4% 6.1% 19.5% 4.8% 31.1% 2.3% 21.2%

Loans by purpose

Mar’14YoY

growthLoans

composition

Purchase of securities 3.4 +35.4% 3.8%

Purchase of transport vehicles

27.3 -2.4% 30.5%

Purchase of resiproperty

14.9 +9.4% 16.7%

Purchase of non resiproperty

8.9 +4.8% 10.0%

Purchase of fixedassets

0.9 20.6% 1.1%

Personal use 2.0 -1.7% 2.3%

Credit card 1.8 +14.7% 2.1%

Consumer durables 0.0 -100.0% 0.0%

Construction 3.8 +43.7% 4.2%

Working capital 21.4 +2.1% 23.9%

Other purposes 4.8 +16.6% 5.4%

89.3 +5.3% 100.0%

AgricultureMining &

QuarryingManufacturing

Electricity, Gas & Water

ConstructionWholesale,

Retail, Restaurant

Transport, Storage &

Com

Finance, Insurance,

& Biz. Real Estate

Education & Health

Household OthersTotal Loans

Loans by purpose

Mar’14YoY

growthLoans

composition

Purchase of securities 72.1 +19.5% 5.8%

Purchase of transport vehicles

163.9 +4.5% 13.2%

Purchase of resiproperty

355.7 +13.6% 28.5%

Purchase of non resiproperty

159.7 +16.4% 12.8%

Purchase of fixedassets

9.9 +8.7% 0.8%

Personal use 58.0 +4.1% 4.7%

Credit card 33.8 +4.9% 2.7%

Consumer durables 0.6 >100.0% 0.0%

Construction 35.0 +13.9% 2.8%

Working capital 289.3 +7.9% 23.2%

Other purposes 68.7 +1.0% 5.5%

1,246.7 +10.2% 100.0%

LoansComposition

YoYGrowth

Loans Growth by Sector

Loans Growth by Sector

3.83.0 8.2 1.3 4.6 5.8

2.9 2.7 7.8 1.5

47.3

0.1

89.3

Mar-14



8.5 10.4

13.2

16.8 18.7

12% 14%17%

20% 21%

FY2010 FY2011 FY2012 FY2013 FY2014

CASA CASA composition

93.1

98.3

FY07 FY10 FY13 FY14

Equity & debt capital 10% 15% 14% 15%

Customer deposits 60% 77% 75% 74%

Term funding & loans with recourse >1year

4% 2% 7% 6%

Term funding & loans with recourse <1year

1% 1% 1% 2%

Deposits from banks & FIs

25% 5% 3% 3%

1. Term funding includes Senior Notes, credit-linked notes, loans sold with recourse and other sources such as pension and retirement funds, non-profit organisations and similar

Diversified funding profile

14.2% 4.3% 11.2% 4.4% 5.6%

RM’bil

FY2010 FY2011 FY2012 FY2013 FY2014

CAGR FY10-14: 21.7%

8.5 10.4

13.2

16.8 18.0

12% 14%17%

20% 19%

FY2010 FY2011 FY2012 FY2013 H1FY2014

CASA CASA composition

Customer deposits driven by focus on CASA

Improving CASA composition

Lengthening debt capital & term funding profile

Improving funding composition

CustDeposits

FY13Current Savings CASA

Term Deposit &

NID

Term Funding

CustDeposits

FY14

FY14 13.5 5.3 18.7 71.0 8.6 98.3

FY13 11.8 5.1 16.8 68.0 8.2 93.1

4.1%

-

1.0

2.0

3.0

4.0

5.0

6.0

<FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19+

RM'bil

Debt Capital Term Funding Loans sold to Cagamas

Issuance Maturity



5.1 11.8 16.8

67.9

84.7

5.3

13.518.7

70.9

89.6

Mar'13 Mar'14

RM’bil

Deposits profile

Source : BNM, internal reports

RM’bil

Savings Current Account CASA Fixed Deposits Core Deposits

Savings Current Account CASA Fixed Deposits Core Deposits

AmBank Group Deposits Growth by Type

Industry Deposits Growth by Type

4.3% 14.2% 11.2% 4.4% 5.8%

5.9%

15.0%

79.1%

AmBank Group Core Deposits Composition

Savings Current Account Fixed Deposits

129.0 240.6

369.6

642.4

1,012.1

137.0

269.3

406.3

673.3

1,079.6

Mar'13 Mar'14

6.2% 11.9% 9.9% 4.8% 6.7%

12.7%

24.9%

62.4%

Industry Core Deposits Composition

Savings Current Account Fixed Deposits



9.4% 9.7%9.8% 10.4%

11.1% 11.2%

14.0%14.7% 14.8% 15.5%

Adopted Basel III at banking entity level:

• The aggregated banking entities of the Group remain well capitalised and operated within internal target capital levels for FY2014:

o CET1: 8.5% ± 1.0%

o T1: 10.5% ± 1.0%

o Total Capital: 14.5% ± 1.0%

Double leverage ratio1: 1.18x

Balance Sheet leverage ratio2: 8.2%

Total leverage ratio3: 6.4%

Adopted Basel III, balancing capital for growth and returns

1. Double leverage ratio computed based on AMMB Holdings company level2. Balance sheet leverage ratio: total equity net of deferred tax & intangible assets over total assets net of deferred tax assets & intangible assets 3. Total leverage ratio: total equity net of deferred tax & intangible assets over total assets net of deferred tax assets & intangible assets & off balance sheet

Capital: Aggregated banking entities

Basel II Basel III

------------------ After proposed dividend -----------------------

Capital: Legal entities

FY13 FY14

CET 1 Tier 1Total

capitalCET 1 Tier 1

Total capital

AmBank 8.6% 10.9% 14.2% 9.1% 11.1% 14.6%

AmIslamic 9.5% 9.5% 14.6% 9.2% 9.2% 15.2%

AmInvestment 25.7% 25.7% 25.7% 21.2% 21.2% 21.2%

FY2011 FY2012 FY2013 FY2014

CET 1Tier 1 RWCAR / Total Capital Ratio

Capital adequacy ratio



AGENDA Page







- AMBANK GROUP



Financial services outlook

MALAYSIA: Moderate Growth Expected in 2014

Monetary policy will remain prudent to support the economic growth and contain inflationary pressure

Moderate loans growth in line with the economic outlook and measures to address high household debt concerns

Asset quality may come under pressure more from rising inflation than potential capital flow risk

Margins remain a challenge from the stiff price-based competition for loans and deposits

OPR expected to remain at 3% throughout 1H2014, with a 30% probability of 25bps hike in 2H2014

BANKING: Opportunities & challenges

Global growth to improve moderately

• US to expand firmly, while euro-area is turning from the corner of recession with modest growth and steady growth from Japan.

• Challenging year of Developing Asia to maintain financial stability and sustain economic growth

Malaysian economy: continued moderate growth

• Growth in 2014 will depend on private investment and exports, with softening private consumption

• Inflation will be a focal point in 2014 driven by on-going rationalisation of subsidy and pre-GST impact. The other one being public debt

• Authorities will continue to adopt prudent and pragmatic macroeconomic policies, reining in fiscal deficit and public debt

2013 2014f 2015f

RGDP y/y% 4.7 4.8 5.2

Inflation y/y% 2.1 3.0 3.6

Unemployment (%) 2.9 3.0 3.0

FB% GDP (FY) -3.9 -3.5 -3.0

CA% GDP 3.6 3.0 3.0

89.8

4.0%

9.5%

Jan-1

2

Feb-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-

12

Aug-1

2

Sep-1

2

Oct-

12

Nov-1

2

Dec-1

2

Jan-1

3

Feb-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Jul-

13

Aug-1

3

Sep-1

3

Oct-

13

Nov-1

3

Dec-1

3

Jan-1

4

Feb-1

4

Mar-

14

RM'bil

Loans disbursed Loans approved Loans Applied


As Malaysia’s preferred diversified, internationally connected financial solutions group, we take pride in

growing your future with us.

Record performances & increasing ROE

Consistent revenue growth

Improved balance sheet & funding mix

Increased dividend payout to 40%

Commenced pursuing niche acquisitions

3 Focus areas:

Strategic Business Transformation

High priority growth initiatives

Organisationand governance structures

Delivered consistent growth & returns

Strengthening customer centricity & connectivity

Expand international connectivity initiatives

In-fill acquisitions & new strategic tie-up

Grow retail assets

Lead in investment banking business

Leverage fixed income trading

AmBanking on a new journey

1. Deliver on focused organic growth

2. Leverage strategic partnerships & deliver on acquisitions

3. Continue to optimiseefficiency

4. Build sustainability

Pre ANZ FY2008 – 10 FY2011 – 12 FY2013 – 14 FY2015 – 17

Scale & Presence

Reposition, Build New Growth

OptionsImprove Returns

Aggressively Invest, Optimise &

Leverage Connectivity

Focused Growth

Leverage Investment

Optimise Enablers


Focused growth Leverage investments Optimise enablers

Strategic Priorities FY15 – 17… bringing our performance to the next level

Retail: build new value segments, grow mass market

Wholesale: grow franchise value by targeting value segments, customercentricity, and deeper relationships to increase SOW, focus on CASA, cross selling& lead in innovation to accelerate non-interest income growth

General Insurance: maintain #1 in motor, diversify into non-motor

Islamic: grow CASA, rebalance portfolio mix, increase fee based income

Complete integrations and deliver synergies. Shift focus to top line growth

Life: grow Banca and synergise with Metlife

Family Takaful: grow sales of credit related term Takaful products & extractsynergies from Metlife

Build scalable “customer service delivery center”

Simplify business and operating models

Optimise holding company

Build AIRB capabilities

Strengthen governance

Enhance employee engagement & talent management

Superior customer experience – technology & branding

Deliver on focused organic growth

Leverage strategic partnerships &

deliver on acquisitions

Continue to optimise efficiency

Build sustainability

1

2

3

4



FY2013

(Restated)

FY2014

(Reported)FY2015 FY2016 – 17

PATMI

(RM’mil)1,620.7

1,782.4

(10.0% yoy)Circa 10% 9 – 11%

ROE (%) 13.9% 14.1% 14.2% - 14.5% 14.5% - 15.5%

CTI (%)47.8%44.3%

(Banking Group)

45.5%

43.3%

(Banking Group)

≤45%;≤43%

(Banking Group)

≤44%;≤42%

(Banking Group)

Gross impaired loans (%)

1.98 % 1.86% ≤1.9% ≤1.9%

Dividend:

Single-tier (sen)

Payout (%)

22.0 sen / share

41%

Interim: 7.2 sen / share

Proposed final: 16.9 sen / share

41%

40 - 50%Payout

40 - 50%Payout

Key performance indicators

FY2015 underlying estimates:

NIM expected to contract ~15 bps Loan loss charge expected to be circa 30 bps Loans expected to grow ~9% (GDP @ 4.8%) LD ratio expected to maintain at ~90%, ±2%

CASA composition ≥21% Non-interest income composition at circa 38% Target CET 1 of 9.0% (±1%), Tier 1 of 11.5% (±1%),

total capital of 15.0% (±1%)



3

Summary

Economic and banking outlook: Expecting moderate growth with some potential headwinds in retail sector

FY15 – 17 Strategic Priorities:

1. Deliver on focused organic growth

2. Leverage strategic partnerships & deliver on acquisitions

3. Continue to optimise efficiency

4. Build sustainability

Track record of delivery; committed to drive sustainable growth whilst increasing returns

1

2

3



AGENDA Page







- AMBANK GROUP




Retail Banking

Re-orient to higher value segments, extract value from core massAspirations

6.1%Growth 4.5% 8.1% 9.5% 9.2% 9.2% 9.2%

• Retail Banking’s growth agenda will focus on simplification, digital enablement including modernisation of its digital platforms, building a service-oriented culture and people capability. Key segments include emerging affluent and small business whilst continue to expand and innovate wealth management offerings

Outlook

PAT

FY14 PATFY13 PAT Positive growth in FY14 Contraction in FY14

• Higher profits reflects full year acquisition benefits and higher recoveries as a result of rigorous collection initiatives

• Good customer and low-cost deposits growth underpinned by new thematic marketing campaigns, new segment based strategies and leveraging existing and new channels.

• Lending growth partly reflects regulatory changes and tightening of credit policies

• Integration of MBF on track, extracting revenue and cost synergies from the acquisition.

Higher income and lower allowances

FY14 PAT

(composition to Group)

FY14

vs

RM'mil FY13 FY14 FY13

PATFY13

TotalIncome

Expenses PBP Allowances PBT TaxPATFY14

FY14 (RM’mil)

1,998.6 899.6 1,099.0 240.0 859.0 212.9 646.2

FY13(RM’mil)

1,884.4 832.6 1,051.8 265.1 786.7 195.0 591.7

34.5%

Gross Loans /

Financing 49,040.7 49,565.5 ▲ +1.1%

Gross Impaired Loans 2.74% 1,250.7 1,357.8 ▲ +8.6%

Customer Deposits 37,229.8 40,462.0 ▲ +8.7%

CASA Deposits 10,284.6 11,202.4 ▲ +8.9%

ROA 1.24% 1.28% ▲ +0.04%

CTI 44.2% 45.0% ▲ +0.8%

Allowance Coverage 87.7% 77.6% -▼ -10.1%



Wholesale Banking

1.2%Growth 0.1% 4.0% 40.7% 3.8% 0.5% 5.1%


PATFY13

TotalIncome


FY14 (RM’mil)

1,840.3 510.0 1,330.3 (79.0) 1,409.3 354.0 1,055.3

FY13(RM’mil)

1,862.2 531.3 1,331.0 (133.4) 1,464.4 352.3 1,112.0

PAT

Coverage: Maximising franchise value through holistic coverage & cross sell – full understanding of customer needs, distinguishing service by complexity, allocating specialists intelligently to grow sustainable profitability

Products: To offer innovative, quality products and services and deliver comprehensive differentiated solutions

Aspirations

Outlook • Higher profit growth with strong deals pipeline and recovery of fixed income businesses. Expecting margin pressure and

volatility in market.

• Higher net interest income from loans growth and strong fee income driven by notable deals and stock broking, partially offset by subdued fixed income business performance

• Allowances include provisioning relating to AmFraser

• Gross loans reflects large repayments in FY14, moderate deposits growth reflects management of depositors concentration

• Continued cross sell in key products / solutions under wholesale banking platform

Diversified contribution across business

56.4%

FY14 PAT(composition to Group)

FY14 Income Breakdown

Business Banking, 35%

Corporate & Inst Banking, 29%

Investment Banking, 22%

Markets, 12%

Loan Rehab, 2%

FY14

vs


Gross Loans / Financing 35,928.1 39,928.8 ▲ +11.1%

Gross Impaired Loans 0.78% 436.9 311.5 -▼ -28.7%


CASA Deposits 6,892.7 8,134.3 ▲ +18.0%

ROA 2.32% 2.22% -▼ -0.10%

CTI 28.5% 27.7% -▼ -0.8%

Allowance Coverage 110.7% 157.6% ▲ +46.9%

Ave Assets Management 38,160.1 41,771.6 ▲ +9.5%



General Insurance

Dominate in auto insurance and diversify into non-motor segment Aspirations

51.0%Growth 41.7% 54.6% 14.4% >100.0% >100.0% 50.6%

Outlook

PAT FY14 PAT(composition to Group)

• Higher premium growth, stronger net earned premium and improved underwriting profit benefiting from enlarge entity

• Higher expenses reflects enlarged entity, partially offset by synergies benefits

Improved performance, benefiting from positive contributions from acquisition

• Expecting higher premium growth and profit for FY2015

PATFY13

Net Earned

Premium

Claims & Comm

UW ProfitMgmt

ExpensesNet UW Profit

Investment Income

Provision TaxPATFY14

FY14 (RM’mil)

1,544.1 1,139.6 404.4 290.3 114.1 116.5 6.4 49.2 175.0

FY13(RM’mil)

1,022.7 737.3 285.3 253.9 31.5 113.0 (2.1) 30.4 116.2


FY14

vs


61.7% 3.1%9.4%

• FY13 reflects only 6 months of Kurnia‟s performance• Ratios above reflects insurance operating business only (exclude PPA amortisation)

Claim ratio 60.5% 63.0% ▲ +2.5%

Expenses ratio 17.3% 17.1% -▼ -0.3%

Combined ratio 89.4% 90.9% ▲ +1.5%

G

GGG

GGGG

G

G

GGG

GG

GGG

GGG

GG



0.7%

Life Assurance & Family Takaful

Life Assurance: To be Top 5 Life Insurer in Malaysia by FY2019

Family Takaful: To be Top 7 Takaful Operator by FY2018Aspirations

Growth 39.5% 25.5%17.8% 0.3% >100% >100%

Outlook • Improve performance leveraging on international partnership and global best practices

PAT FY14 PAT(composition to Group)

• Stronger gross written premiums from both agency and corporate channels

• Working together with MetLife International Holdings Inc., our new strategic partner in Life Assurance and Family Takaful business, to identify and agree on synergies, brand identity, best practices and standards to better serve customers

• Aim to create a modern, innovative and customer centered insurance company

Stronger premiums & investment income

PATFY13

Net Earned

Premium

Net Benefits &

Claims

Expenses & others

UW Results

Investment Income

TaxSurplus / (Deficit)

ReservePATFY14

FY14 (RM’mil)

513.0 528.3 130.5 (145.7) 115.8 13.1 (43.1) 56.0 12.9

FY13(RM’mil)

435.4 378.7 130.9 (74.3) 155.5 (5.7) 86.9 (150.9) (63.9)


FY14

vs


96.2% >100% >100%

Life Assurance

Total assets 3,139.6 3,145.0 ▲ +0.2%

CAR ratio 228.9% 257.2% ▲ +74.7%

Family Takaful

Total assets 122.6 160.5 ▲ +31.0%

Net contributions 39.7 66.9 ▲ +68.5%

G




• Higher income backed by financing growth as a result of increased focus to feature Islamic banking products & services, and greater emphasis was placed to grow GLC and GLIC business while capitalising on ETP related projects

• Strong deposits & CASA growth, resulting from a continued focus on „sticky‟ funds and improving funding mix

Islamic Banking

To be the Islamic Bank of choiceAspirations

Strong deposits & CASA growth

6.1%Growth 8.1% 3.3% 49.5% 9.2% 12.8% 8.2%

Outlook • Increase penetration of solutions and cross-selling to support AmBank Group as “main bank” initiatives

PAT

PATFY13

TotalIncome


FY14 (RM’mil)

899.7 365.2 534.5 218.6 316.0 67.9 248.0

FY13(RM’mil)

847.8 353.4 494.4 146.2 348.2 77.8 270.3


FY14

vs


1

13.3%

Gross Financing 22,492.2 24,999.0 ▲ +11.1%

Gross Impaired Loans 1.39% 268.4 348.5 ▲ +29.8%


CASA Deposits 6,639.9 5,625.0 -▼ -15.3%

ROA 0.93% 0.73% -▼ -0.20%

CTI 41.7% 40.6% -▼ -1.1%

Allowance Coverage 188.1% 158.9% -▼ -33.6%

G



• Includes funding cost to support recent acquisitions

• Lower expenses reflect good cost control

• MI represents non-controlling interests within the Group

Group Operating Segments


3.0% 33.0%Growth 40.3% 5.1% >100% 62,8% >46.1% 80.1%

PAT

20.9%


PATFY13

TotalIncome

Expenses PBP Allowances PBT Tax PAT MIPATMIFY14

FY14 (RM’mil)

221.6 329.0 (107.5) (37.1) (70.3) (52.0) (18.4) 88.7 (107.0)

FY13(RM’mil)

166.6 346.7 (180.1) 8.9 (189.0) (96.5) (92.5) 42.8 (135.3)

>100%

-1.0%



AGENDA Page







- AMBANK GROUP




1,787.8 1,782.4 3.5

5.8 14.7

1,635.1 1,620.7 0.1

1.5 10.9

15.3 42.2

MFRS 11 – Joint Arrangement

MFRS 10 – Consolidated Financial Statements

Requires assessment of “rights and obligations” rather than “legal form”

Accounting impact to Financials

• AmFirst REIT previously classified in Financial Investment (AFS), now reclassified to Investment in Associate

Replaces MFRS 127 – Introduces a new and broader definitional of control

Accounting impact to Financials

• Previously AmBank Group‟s Wholesales funds held as Financial Investment (AFS and HFS) in a single line, now consolidated

2

3

Accounting for acquisition of Kurnia in previous financial year and adopted new accounting policies, applied retrospectively

FY13(Previously reported)

Amortisationof intangibles

(Kurnia)MFRS 10 MFRS 11 Tax impact

Minority Interest

FY13 (Restated)

FY14(Proforma)

MFRS 10 MFRS 11Minority Interest

FY14(Reported)

Amortisation of intangible assets

Adjusted for intangible assets and residual goodwill upon completion of the purchase price allocation arising from acquisition of Kurnia Insurans Bhd

1 FY2013

FY2014



Diversifying funding sources and maturity profile

LDR1 of 88.7%

AmIslamic Bank Bhd

1. RM2b Subordinated Musyarakah Sukuk

2. RM3b senior sukukmusyarakah programme

3. RM3b Basel III-compliant Subordinated SukukMurabahah Programme via Tawarruq arrangement

AMMB Holdings Bhd

1. RM2b Medium Term Notes (Senior & Subordinated)

Funding diversity underpinned by

CASA: RM18.7 billion (yoy growth = 11.2%)

Fixed deposits: RM70.9 billion (strong retention)

Supplemented by term funding & debt capital

AmBank (M) Bhd

1. RM500m Innovative Tier 1 Capital Securities Programme

2. RM500m Non-innovative Tier 1 Capital Securities Programme

3. USD200m USD Subordinated Term Loan

4. RM2b Medium Term Notes

5. RM4b Tier 2 Subordinated Notes

6. RM7b Senior Notes2

7. USD300m Term Loan Facility

8. USD2b Euro Medium Term Notes (not yet issued)

1. Includes stable funding sources 2. 1st senior notes issuance by a financial institution in Malaysia

AmBank (M) BhdAmIslamic Bank

Bhd

Loans with Recourse

Recourse obligations on loans sold to Cagamas -maturing in 2017

Islamic financing sold to Cagamas –maturing in 2016

• Statutory reserve and liquidity requirement savings

• Reduced exposure to interest rate risks

Funding characteristics

• Improve funding stability, maturity gap & liquidity ratios

• Reduce dependence on short-dated deposits to fund long-dated fixed rate loan assets which incur liquidity risk and interest rate risk

• Diversifies investor base

• No obligation for buy back since we are not exposed to withdrawal risks and the notes are traded in the open market

• Enable depositors to invest in long and medium dated papers



ANZ diversified footprints in Asia

Value proposition

• Seconding ANZ staff into key roles

• Providing technical expertise

• Support new product development

• Two-way customer referrals

• Joint account planning

• Access to regional network & connectivity

Board & Management representation

• Shayne Elliot – Director (CFO, ANZ)

• Gilles Planté– Director (CEO Asia Pacific, ANZ)

• Mark Whelan – Director (MD, Corporate & Commercial, ANZ)

• Mandy Simpson – Chief Financial Officer

• Nigel Denby – Chief Risk Officer

• Ross Foden – Chief Operations Officer

• Paul Lewis – Managing Director, Retail Banking

• Tan Chin Aun - Transaction Banking

• Oscar Demirtas - Senior Programme Manager, Small Business Banking

Partnership with ANZ

Source: Trade Finance Magazine 2013

CHINA

HONG KONG

PHILIPPINES

VIETNAM

NEW ZEALAND

SOUTH KOREA

JAPAN

TAIWAN

INDONESIA

AUSTRALIAPACIFIC ISLANDS

SINGAPORE

LAOS

THAILAND

CAMBODIAMALAYSIA

PAPUA NEW GUINEA

FIJI

INDIA

ANZ & AmBank Partnership

16 Asian markets, 98 branches and 5 Partnerships



General Insurance Credentials

• AmG completed the Kurnia acquisition on 26 Sept 2012 – combined entity renamed AmGeneralInsurance Berhad on 1 Mar 2013

• One of Malaysia‟s leading general insurers and the No. 1 motor insurer

• Insures around one in five cars in Malaysia and ~10% market share for general insurance by GWP

• GWP over MYR 1.7 billion

• Over 3.6 million policy holders and a diversified distribution base – 7,000 plus agents, supported by a national network of branches and over 180 AmBank branches across the country

• Cost synergies and operational efficiencies to achieve value accretion over the next 2 years

• IAG provided substantial leadership and input into the acquisition process and integration planning

• Resources from IAG Group have been mobilised to Malaysia to assist with integration

Value proposition

• Involved in the management of AmGeneral Insurance, offering skills transfer, partnership and relationship models of IAG

• Adding value through claims re-engineering savings, increased revenue via product development, underwriting and pricing

Board & Management representation

• Duncan Brain – Director (CEO, IAG Asia)

• Aidan Pallister – Director (Deputy CEO / COO of IAG Asia)

• Travis Atkinson – CEO AmGeneral Insurance Berhad

• Arron Mann – General Manager, Claims

• Chris Tandy – General Manager, Personal and Commercial Pricing

Partnership with IAG

GENERAL INSURANCE

AmGeneral: Leveraging strategic partnership with global insurance partner

https://www.kurnia.com/malaysia



Branches ATMRegional Business Centres

Perlis 1 4

Kedah 6 30

Pulau Pinang 14 51 1

Perak 19 51

Selangor 39 258

Kuala Lumpur 24 142

Putrajaya 1 4

Negeri Sembilan 7 43

Melaka 5 38

Johor 22 98 1

Pahang 9 35

Terengganu 5 20

Kelantan 2 22

Sabah 9 36 1

Labuan 1 2

Sarawak 16 50 1

180 884 4

1.Peer banks as at Dec 2012, AmBank as at latest practical date2. AmLife & AmG branches and agency office

Multiple distribution channels aligned to demographics

Population Density: <100 persons per km2 101-500 persons per km

501-1,000 persons per km2 1,001--1,500 persons per km2

> 1,501 persons per km2

Perlis

Kedah

PulauPinang

Perak

SarawakKuala Lumpur

Putrajaya

NegeriSembilan

Melaka Johor

Pahang

Singapore

Indonesia

Selangor

Labuan

SabahTerengganu

Kelantan

AmIslamicbranches

Weekend Banking Branches

ATMs @ 7-Eleven

ElectronicBanking Centres

Internet & Mobile

BankingAmGeneral AmLife AmInvestment MBF

3 75 401 167AmOnlineAmGenie

32(include 28

dual branded branches)

18 offices14 agencies

14 26

Note(s):

Brunei: AmCapital (B) Sdn Bhd

Indonesia: PT.AmCapital Indonesia, PT.AMCI Manajemen Investasi Indonedia

Singapore: AmFraser Securities Pte Ltd

Brunei Darussalam

Nationwide Branch Network

Other Customer Touch Points



AmInvestmentGroup Berhad

AmCorp Group Bhd, 14.4 %

ANZ Funds Pty Ltd 1, 23.8%

EPF, 15.1%

Other shareholders,

46.8%

FY2010 FY2011 FY2012 FY2013 FY2014

27% 27% 26% 29% 31%

Solid shareholding structure & franchise value

As at 31 Mar 2014

AmLifeInsurance

Berhad


Capital Markets

100%

100%

100%Asset Management

100%

51%

Banking

Insurance

AmGeneralHoldingsBerhad2

AmFamilyTakaful Berhad

AmBank (M) Berhad

AmIslamic Bank Berhad

AmInvestmentBank Berhad


100% MBF Cards (M’sia) Sdn Bhd

BonuskadLoyalty Sdn

Bhd

33.33%

100%

AmGeneralInsurance Berhad3

100%

1.ANZ: ANZ Funds Pty Ltd,a wholly owned subsidiary of Australia and New Zealand Banking Group Limited2.Formerly known as AmG Insurance Berhad3.Formerly know as Kurnia Insurans (Malaysia) Berhad4.On 30 April 2014, completed the transaction and entered into strategic partnership with MetLife. MetLife owns 50% plus one share in AmLife Insurance Berhad, with the remaining shares held by AmBank

Group, and AmBank Group owns 50% plus one share in AmFamily Takaful Berhad, with the remaining shares owned by MetLife

49%

Foreign shareholding excluding ANZ100%4

100%4



9.158.83

8.60 8.50 8.50 8.40 8.40 8.40 8.35 8.20 8.20 8.11 8.10 8.00 7.83 7.82 7.70 7.70 7.58 7.52 7.50 7.35 7.306.77

6.35

17

Fe

b 1

4

17

Fe

b 1

4

17

Fe

b 1

4

2 M

ay

14

17

Fe

b 1

4

17

Fe

b 1

4

18

Fe

b 1

4

18

Fe

b 1

4

18

Fe

b 1

4

17

Fe

b 1

4

18

Fe

b 1

4

17

Fe

b 1

4

18

Fe

b 1

4

1 A

pr 1

4

18

Fe

b 1

4

18

Fe

b 1

4

17

Fe

b 1

4

17

Fe

b 1

4

17

Fe

b 1

4

18

Fe

b 1

4

17

Fe

b 1

4

4 O

ct

13

19

Se

p 1

2

Buy/Outperform/Overweight/AddP/EPS : EPS for FY2014, P/BV : BV as at 31 Mar 2014

Banking sector share price movement / target price and recommendations

7.8%

20.2%

36.3%

78.4%

83.4%

102.0%

130.6%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0%

MBB

CIMB

KLCI

RHB Cap

AMMB

PBB

HLFG

(Note: 18 May 2007 vs. 31 Mar 2014)

Ratings FY2007 FY2014

AmBank (M) RAM A2/P1/Stable AA2/P1/Stable

Fitch BBB-/F3/Stable BBB/F3/Stable

S&P BBB-/A-3/Stable BBB+/A-2/Negative

Moody‟s Baa2/P-3/Stable/D- Baa1/P-2/Stable/D+1

AmInvestment RAM AA3/P1/Stable AA2/P1/Stable

Fitch BB+/B/Stable BBB/F3/Stable

AmIslamic RAM A2/P1/Stable AA2/P1/Stable

AMMB RAM NA AA3/P1/Stable

TP: target price

Sell/Underperform/Fully valued/Reduce/Underweight

Hold/Neutral/Market perform Source : Bloomberg as at 16 May 2014

1 BFSR - Banking Financial Strength Rating

+3

+1

+2

+2

+3

+1 Notches of ratings upgrades

+1

AMMB HOLDINGS BERHAD P/EPS : 12.24P/BV : 1.67

Market Price : RM7.26

Banking Sector Share Price Movement Upgraded ratings

Target Price and Recommendations

+3

Average TP : RM7.97Buy : 8 (32%)Sell : 2 (8%)Hold : 15 (60%)Average TP / Average CP : 1.10x

17

Feb

1

4

18

Feb

1

4



Strategic Business Transformation: Continued Progress

Set Group‟s MTA, transformation strategy, agenda and targets Enhanced focus on asset quality and risk reward trade offs Realigned business model towards profitable segments in HP, mortgage & fixed income Consolidated Group balance sheet activities within commercial bank Split composite insurance license to General and Life

High Priority Growth

Initiatives

Governance & Enablement Functions

Created deposit businesses as profit centres across Group Commenced realigning non-retail customer segmentation and divisional focus Proactively strengthened capital and liquidity management Repositioned balance sheet for rising interest rates Completed realignments in non-retail customer centric business models Continued expanding product offerings and new capabilities in Markets division Balance sheet funding strengthened via long term fund raisings

Developed retail focus customer centric business models Implemented basic account plans for business customers to increase SOW Initiated Group Rebranding programme Initiated revamping of branches to refresh customer experience Realigned account management teams for more effective account planning

Launched a new brand re-positioning, “Your Bank. Malaysia‟s Bank. AmBank.”, a new chapter for our brand to deliver a unique AmBank Group experience to our customers

Restructure non-retail business divisions to Wholesale Banking to improve client centricity, efficiency and productivity

Developing Small Business Banking model targeting non-individual customers in Retail banking

FY2014

FY2012 & FY2013

FY2010 & FY2011

FY2008 & FY2009

Strategic Business

Transformation



High Priority Growth Initiatives: Implemented To-Date

Created new profit centre based retail branch distribution model Created a separate Corporate and Institutional Banking (CIB) Division Developed new FX business in collaboration with ANZ Enhanced cash management offering via Gross Payroll system Friends Life brought in as new life strategic business partner

Accelerated building of scale in non-retail customer businesses Increased focus on GLC, GLIC and MNC businesses Developed new Rates business in collaboration with ANZ Expanded distribution footprint (particular focus on 7-11 ATM‟s) & alternative channels Commenced activities to leverage ANZ International connectivity Developed new wealth management business strategies Created a new Transaction Banking business focusing on trade and cash management

Inked business principle agreements with ANZ to leverage international connectivity Commenced a new family Takaful business with Friends Life Commenced Priority Banking expansion initiatives Completed Kurnia & MBF Cards acquisitions and commence integration Repurchased remaining shareholding in AmLife and AmTakaful Secured approval as Private Retirement Scheme (PRS) provider Established partnership with Travelex for money changing services

Channels re-organisation to improve customer connectivity and experience (e.g. branch re-design and rationalisation; reposition digital banking)

Pursuing “Save to Invest” programme to achieve cost synergies across the Group Undertaking segmentation activities to enhance cross-selling to grow Main Bank relationships Initiated account joint-planning within non-retail divisions to increase trade utilisation &

business deals

Strategic Business

Transformation


FY2014

FY2012 & FY2013

FY2010 & FY2011

FY2008 & FY2009


Initiatives



Rebuilding AmBank‟s “Core Banking System” via AmHorizon, creating a scalable and robust platform for growth with enhanced customer experience, Phase 1 went live in end 2013

Financial Holding Company structure being progressed for full compliance with FSA & IFSA Streamlining of subsidiaries and releasing of dormant entities‟ capital Reviewing Internal Rating Based approach to optimise capital management Enterprise Process Platform (EPP) going live to support lending operations

Governance and Enablement Functions Streamlined:Supports Better Decision Making

Privatised AmInvestment Bank as part of migration to universal banking platform Consolidated / simplified governance committee structures and strengthen risk disciplines Created a Group PMO to prioritise and manage key strategic initiatives Established Advance Risk Recognition Program (ARRP) Separated ALCO, capital and balance sheet management from Markets Delivered Peer Bank relative performance benchmarks Implemented short and long term performance incentives

Delivered 8 new generation retail scorecards & new market risk models Commenced PD, LGD & EAD models for retail and non-retail, non-retail security indicators Developed leadership bench-strength and succession planning Implemented Operational Risk Incident Reporting system and Basel II capital calculator Implemented FTP system aligned to balance sheet strategies Consolidated some Group Support into Centres of Excellence Initiated new retail and non retail PD / LGD models, Security Indicators, Collateral

management, and Market risk system (VIPER) Initiated core banking system replacement programme

Strategic Business

Transformation


Initiatives

Implemented a new ALM system and divisional capital allocations under Basel II Integrate new Basel III frameworks into planning processes Finalised vendor selection and commenced core banking system replacement Developed AmFamily Takaful system to support commencement of Takaful business Implemented Model Execution Platform (MEP) provisioning methodology for better risk

assessment and pricing capabilities Transitioned to full MFRS 139 compliance on collective provisioning for credit risk Developing new behavioral scoring models for Retail and SME portfolio

FY2014

FY2012 & FY2013

FY2010 & FY2011

FY2008 & FY2009




AGENDA Page







- AMBANK GROUP




103.1

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2008 2009 2010 2011 2012 2013 2014

BCI

Malaysian economy is on a steady growth trajectory

Business Conditions Index

Moderating growth

Business confidence is improving

Upward pressure on inflation remains, unemployment rates stable

FDIs remain robust

points

Source: BNM & Bloomberg

4.1% 4.4% 5.0% 5.1%

6.7%

7.3%

0%

5%

10%

15%

20%

25%

30%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2010 2011 2012 2013

GDP Consumption Investment

3.5%

3.2%

0%

1%

2%

3%

4%

5%

Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar JuneSept Dec Mar

2010 2011 2012 2013 2014

CPI Unemployment

27.5

10.5

-10

0

10

20

30

40

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2008 2009 2010 2011 2012 2013

TD FDI

RM' bil



1.8%

104.6%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

110.0%

0%

1%

1%

2%

2%

3%

3%

4%

4%

Mar June Sept Dec Mar June Sept Dec Mar June Sept Dec Mar June Sept Dec Mar

2010 2011 2012 2013 2014

Gross impaired loans Loan loss coverage

594.2

674.2

765.0

44%

18%

17%

6%

8%4%4%

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

2010 2011 2012 2013

HH debt Residential property Hire purchasePersonal financing Securities Non-residentialCredit card Others

4.53%

3.00%

6.53%

0%

5%

10%

15%

2006 2007 2008 2009 2010 2011 2012 2013

Average lending rate (commercial banks) Average OPR Average BLR

Well-contained risks despite increase in household indebtedness

To be updated for the his

Household debt by compositions

Interest rates expected to remain in the short term

Improving asset quality

Source: BNM

RM‟bil% of composition

594.2

674.2

765.0

44%

18%

17%

6%

8%4%4%

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

2010 2011 2012 2013

HH debt Residential property Hire purchase Personal financing Securities Non-residential Credit card Others

Loan loss coverageGross impaired loans

OthersCredit card

Non-residential

Securities

Personal financing

Hire purchase

Residential property

* Retail comprise purchase of transport vehicle, purchase of residential property, personal use and credit card

57FY2014 Results – Investors Presentation

34.2% 34.6% 31.9% 30.1%

74.5% 76.2%81.3%

86.8%

25.0%19.7%

16.3% 14.6%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2010 2011 2012 2013

Gross national savings Household debt/GDP

Retail impaired loans ratio*

Higher household debt, but retail impaired loans ratio trending down



80.7%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010 2011 2012 2013 2014

Total deposits LD ratio

4.2

20.5

0

5

10

15

20

25

30

35

40

45

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010 2011 2012 2013 2014

New issues of equity New issues of debt

14.4%

12.8%

12.0%

0%

5%

10%

15%

20%

Mar

June

Sept

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

2010 2011 2012 2013 2014

RWCAR Tier 1 CET 1

Source: BNM

Capital remains sound in the banking sector, loans growth moderating

RM‟mil

Capital levels above BNM’s Basel 3 guidelines

Capital activities supported by debt issuance

Sustained deposits growth provides liquidity

Beginning January 2013, capital components are reported based on Basel III Capital Adequacy Framework

RM‟bil

Basel II Basel III

10.0%

11.2%

10.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Mar June Sept Dec Mar June Sept Dec Mar June Sept Dec Mar June Sept Dec Mar

2010 2011 2012 2013 2014

Retail yoy growth Non Retail yoy growth Total loans yoy growth

Moderating loans growth



ETP: Propelling Malaysia towards becoming a high-income, developed nationby 2020

Target RM1.7 trillion 3.3 million RM1.4 trillion

To-date RM250.1 billion 513,000 RM214.0 billion

% of Target 14.7% 15.5% 15.0%

National Key Economic Area Target Investment (RM’bil) To-date (RM’bil) % of Target

Wholesale & Retail 255 13 5%

Oil, Gas & Energy 218 95 44%

Financial services 211 - -%

Tourism 204 17 8%

Greater KL 172 58 34%

Palm Oil 124 2 2%

Electronics & Electrical 78 10 12%

Communications content & Infrastructure

51 2 3%

Business Services 41 5 13%

Healthcare 23 6 26%

Agriculture 22 1 7%

Education 20 5 24%

182 Projects Initiated

GROSS NATIONAL INCOME

JOB CREATIONINVESTMENT &

TRANSFORMATIONAL ACTIONS

Note: Data was correct as on ETP announcement date, the ETP is an evolving programme, in the past 2 years, some EPPs have been dropped, some new ones were added

ETP : Economic Transformation Programme Source Pemandu , www.pemandu.gov.my



2,073

2,935

3,417

5,450

11,387

55,568

Vietnam

Phillippines

Indonesia

Thailand

Malaysia

Singapore

0.0

5.7

-0.6

-2.3

-2.6

-3.5

Vietnam

Singapore

Thailand

Philippines

Indonesia

Malaysia

Malaysia remains an attractive investment destination

GDP per capita, 2014 (USD)

2.4 3.4

1.5 9.1

5.3 4.7

-2.3 3.3

2.4 3.4

8.5 7.8 0.7%

2.0%

3.0%

4.4%

6.1%

6.9%

Thailand

Singapore

Malaysia

Vietnam

Indonesia

Philippines

2.3%

2.3%

3.3%

4.0%

6.3%

5.5%

Singapore

Thailand

Malaysia

Philippines

Vietnam

Indonesia

Unemployment (%) Inflation (%)

5.5

30.1

68.6

90.6

99.4

251.5

Singapore

Malaysia

Thailand

Vietnam

Philippines

Indonesia

23.0

29.6

28.1

31.2

30.4

44.8

Philippines

Vietnam

Thailand

Malaysia

Indonesia

Singapore

Population (mil) Savings rate (% of GDP)

-3.0

0.2

3.2

4.1

4.3

18.5

Indonesia

Thailand

Philippines

Malaysia

Vietnam

Singapore

Current Account Balance(% of GDP)

Government structuralBalance (% of GDP)

Real GDP growth 2013 2015F

Source: World Economic Outlook Database April 2014



Glossary / Disclaimer of warranty and limitation of liability

Reported PerformanceReported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market

One OffsOne 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 PerformanceUnderlying performance refers to the financial performance adjusted for one off impacts as above

Business Divisions

Business divisions • 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 SegmentsOperating segments

• have more volatile and lumpy income streams, with the former a direct function of risk appetite • include

• income and expenses associated with shareholder funds, loan rehabilitation and legacy businesses, plus• costs associated with corporate, shared services and governance functions currently not charged back to the business units

The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad or AMMB Holdings or “AMMB” 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 signif icant 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 regard 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 persons.

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" and “AmBank Group” 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.

Disclaimer of Warranty and Limitation of Liability



Glossary / 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 “AMMB” 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 signif icant 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 regard 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 persons.

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" and “AmBank Group” 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.

Disclaimer of Warranty and Limitation of Liability


The material in this presentation is general background information about AmBank Group‟sactivities current at the date of the presentation. It is information given in summary form anddoes not purport to be complete. It is not intended to be relied upon as advice to investors orpotential investors and does not take into account the investment objectives, financialsituation or needs of any particular investor. These should be considered, with or withoutprofessional advice when deciding if an investment is appropriate.

For further information, visit www.ambankgroup.com;

or contact

Ganesh Kumar Nadarajah

Group General Manager, Strategic Planning & Investor Relations

Karen Chuah

Senior Manager, Strategic Planning & Investor Relations

Tel: +603 2036 1435 or +6019 2093 955

Fax: +603 2031 7384

e-mail: [email protected];

[email protected];

[email protected]

http://www.ambankgroup.com/

mailto:[email protected]









Documents

20 May 2014 FY2014 Results Investors Presentation · 20 May 2014 FY2014 Results – Investors Presentation AshokRamamurthy, GroupManagingDirector Your Bank. Malaysia’s Bank. AmBank