BUILDING TOGETHER

BUILDING

ASEANTOGETHER

MAYBANK (CAMBODIA) PLC.

14.03%Return on Equity

10.76 million 21 branchesNet Profit Network Expansion

Building ASEAN Together

Maybank has been a regional bank since 1960, with the incorporation of our operations in Malaysia and opening of branches in Singapore and Brunei in that same year. Our roots in ASEAN are deep, being a Group with presence in all 10 ASEAN countries. We have been able to gain a place in ASEAN communities because we believe in embracing diversity & inclusiveness and in providing financial services with a humanising touch. We have financed our customers’ first home, helped start their small businesses, and partnered with them to expand their companies across the region. There are many more experiences that we have shared, and that we hope to be part of in the years to come.

We are passionate about being at the heart of the communities we serve to prepare them for the future and bridge them to opportunities and a better way of life.

In this report, we present our journey of humanising financial services and the aspirations we have for ASEAN and beyond.

This annual report is available on the web at www.maybank2u.com.kh

STRATEGY &SUSTAINABILITY

Maybank Group Overview 4 Highlights of 2014 5

The ASEAN Opportunities 24 Core Values & The Maybank Brand 27 Code of Ethics & Conduct 28 Sustainability at Maybank 29

Board of Directors 30 Board of Directors’ Profile 32 Executive Committee 36 Human Resource 42

MESSAGE FROM THE TOP

Chairman's Statement 8 CEO’s Statement 10

Corporate Profile & Global Network 12 Local Branch Network 14 Group Strategic Business Units 16 Group Corporate Structure 19 Organisation Structure 20

ORGANISATIONOVERVIEW

LEADERSHIP &PROFILE

Enriching People’s LivesEmpowering Regional Ambitions

CONTENTSTo contact us, please refer to page 119 for Corporate Information and page 120 for Group Directory andBranch Directory.

The finanacial statements areavailable from page 90 to page 118 of the Annual Report 2014

How to getthe mostout of our annual report

Tells you where you can find more information in the Annual Report

Tells you whereyou can find more information online at www.maybank2u.com.khor www.maybank.com

Read the Annual Report 2014Online by scanning this QR Code with your smartphone

BUSINESS SECTORREVIEW

Retail Financial Services / Payment Business 50 Corporate & Transaction Banking / Business Banking 52 Business Operations Support / Credit Admin & Loan Management 54 Corporate Affairs & Services 56

Statement on Corporate Governance 60 Statement on Risk Management & Internal Control 67 Audit Committee Report 69 Risk Management 72 Compliance 77 Corporate Responsibility 78

Corporate Information 119 Group Directory 120 Branch Directory 123

Report of the Board of Directors 91 Audited Financial Statements 92 Independent Auditors’ Report 93 Balance Sheet 94 Income Statement 95 Statement of Changes in Equity 96

Statement of Cash Flows 97 Notes to the Financial Statements 98

Maybank in the News 84 Event Highlights 2014 88

PERFORMANCEREVIEW

CORPORATE GOVERNANCE &ACCOUNTABILITY

THE FINANCIALS

MILESTONES & ACHIEVEMENTS

OTHERINFORMATION

Pioneering Innovations

Financial Review 48

Working with Communities

Annual Report 2014

Maybank Group Overview

4

With total assets of RM640 billion and market capitalisation of RM85.5 billion, it ranks fourth by assets among banks in ASEAN and is among the top 120 banks in the world, including the third largest Islamic bank globally. Net operating income for FY2014 amounted to RM18.5 billion.

Core Values

We live our T.I.G.E.R. values of Teamwork, Integrity, Growth, Efficiency and Relationships and adhere to a strict Code of Ethics.

Vision, Mission and Focus

Market positioning

Source : Bloomberg

Strategic objectives

Our strategic objectives for the 5-year period to 2015:

OUR VISIONis to become a

regional leader in financial services

through the realisation

of our true potential

across key Home

Markets and beyond

remains on delivering

sustainable stakeholder value

by leveraging on our high performance culture and revised Group Structure

OURFOCUS

Undisputed No.1 Retail Financial Services Provider in Malaysia by 2015

Leading ASEAN Wholesale Bank, eventually expanding to Middle East, China & India

Undisputed Insurance & Takaful Leader in Malaysia & Emerging Regional Player

Truly regional organisation, with ~40% of pre-tax profit derived from international operations by 2015

Global leader in Islamic Finance

to humanisefinancial services

drives us and underpins

our desire to strengthen

our relationships with the

communities we serve

OUR MISSION

Our future is ASEAN

We are positive about the future of ASEAN with the advent of the ASEAN Economic Community to officially begin in 2015. Our presence in all 10 ASEAN countries places us in a favourable position to support and benefit from the ASEAN growth opportunities as we deliver innovative solutions to our clients.

Doing business in ASEAN is our strength as we have the heritage, talent and connections to capture market opportunities.

We are a leading ASEAN bank

Maybank is Malaysia’s largest financial services group with a growing presence in the ASEAN region.

Maybank is the leading banking group in Malaysia and ranks fourth in ASEAN

in terms of assets, loans and deposits and targets to

remain as a top 5 player in the regional market.

No.1 in Malaysia 4th in ASEAN

CIMB Maybank UOB OCBC DBSHL Bank RHB Cap Public CIMB Maybank

640

414

346

219

177

440

282

277

157

132

409

265

245

142

107

333

303

232

183

118

239

185

176

126

81

211

158

150

117

76

Loans Deposits Assets Loans Deposits Assets(RM billion) (USD billion)

The ASEAN Opportunities, pg. 24

Corporate Profile & Global Network, pg. 12

Core Values, pg. 27; Code of Ethics, pg. 28

Annual Report

million

million

million

Total Assets

contributed by higher Gross Loan and Advances.

Deposits Growth

Return on Equity

due to lending margins under pressure and higher overheads (initial investments made to build-up franchise & presence across country)

million

Loans & Advances

Branches

branches.

Maybank (Cambodia) Plc. donated essential items to the Cambodian Disabled People’s Organisation (CDPO).

Maybank (Cambodia) Plc. held a prize giving ceremony for its Yippie Children Saving Coloring Contest.

Prize giving ceremony for the Maybank TT Promotional Campaign.

Maybank (Cambodia) Plc. participated in the

th Branch in Ta Khmao, Kandal Province.

Special documentary �lming of “Maybank Child Sponsorship: A Way Out of the Dump” by Media Prima

Maybank (Cambodia) Plc. participated in the

Awarding of the Maybank GO Ahead Challenge

Final in Malaysia.

Maybank (Cambodia) Plc. launched the Maybank Vocational Sponsorship Program with the People Improvement Organisation (PIO).

Maybank (Cambodia) Plc. launched the Maybank Service Credo, GUEST Challenge, KYC-KYP Program.

Maybank (Cambodia) Plc. launched Maybank Rewards Day at AEON Mall.

Maybank (Cambodia) Plc. launched

th Branch in Cambodia.

Ou Ressei, Takeo Province and Krong Suong.

We desire to reach out to those around us…

We desire to reach out to those around us…

‘Thousand of Hopes in the Sky’By Mohd Azim ZainudinMaybank Photography Awards 2012Street Photography

...knowing that together, we can build bridges that would enable our customers

to grow with ASEAN.

MESSAGE FROM THE TOP

ORGANISATION OVERVIEW

Chairman’s Statement 8CEO’s Statement 10

Corporate Profile & Global Network 12Local Branch Network 14Group Strategic Business Units 16Group Corporate Structure 19Organisation Structure 20

Chairman’s Statement

I am pleased to present our third annual report and audited accounts for the financial year ended 31 December 2014. Our Company has performed commendably, delivering a Return on Equity of 14.03%. Net Profit for the year hit a new record of USD10.76 million.

Total asset grew to USD596.86 million as at 31 December 2014, representing a 29.31% year-on-year (y-o-y) growth. Our gross loans registered a significant growth to USD352.62 million, representing 29.60% y-o-y growth, while our total customers’ deposits grew moderately y-o-y at the rate of 21.70% ending at USD361.06 million. Our solvency ratio remains adequately capitalized at 18.99%.

The building blocks to ensure that Maybank is indeed one of the top foreign banks in Cambodia have been steadily placed since the beginning of our network expansion journey for the last few years. We expanded our footprint with the opening of another five new branches to bring the total number of branches to 21 as well as adding new ATMs to a total of 37 as at end of 2014.

The year also saw us strengthen our positioning in the affluent segment with the launch of our Maybank Premier Wealth Banking service that provide a differentiated banking experience focusing on a partnership in which the customers’ needs are our highest priority. As part of the Group regionalization drive, our Premier Wealth clients can enjoy a wide range of products as well as regional service recognition across Cambodia, Malaysia, Singapore, Indonesia and Philippines.

With a local staff strength of more than 300, our human capital played an important role in delivering our results in 2014. A noteworthy achievement is our ability to attract top young and dynamic talents through our Maybank Group GO Ahead Challenge program. Selected young Cambodians will undergo a two year on-the-job rotation scheme as part of the Group Maybank Apprentice Program, which includes International Assignment to gain experience in Maybank Group’s international banking operations. From a nation building perspective, this program demonstrates Maybank’s commitment to develop home grown talents to contribute their expertise to develop the countries which Maybank has presence in.

We continue to make good strides in our Corporate Responsibility efforts with our award winning Maybank Child Sponsorship: A Way Out of the Dump initiative through another year of collaboration with the People Improvement Organisation. The employee volunteerism aspect was elevated with a new approach that challenged Maybankers’ volunteerism spirit and passion to a higher level of engagement in sustainable and meaningful initiatives for the community, as well as to enable Maybankers to embrace change.

CHEAHTEIKSENGChairman

DearShareholders,

FY2014

Net ProfitUSD10.76

million

“With a localstaff strength of

more than 300, our human capital played an important role in

delivering ourresults in 2014.”

LEADERSHIP &PROFILE



MESSAGE FROMTHE TOP

Annual Report 2014

MESSAGE FROMTHE TOP

8

Chairman’s Statement

The year also saw the expansion of the existing program to another level with the launch of the Maybank Vocational Sponsorship program to equip a selected group of students in dress-making to a level where they can gain employment as a dressmaker or start their own business. Such initiative is another testament to Maybank’s CR philosophy to invest in programs that empower communities to help them to flourish.

In addition, the “Maybank One Wish, Enriching Many Lives” initiative, which is premised on a CR concept aimed to grant the wish of eligible community

members in Cambodia who are faced with basic life difficulties or challenges was also launched. The initiative aims to reach out directly to the community members who need support to develop, improve or solve a problem within his/her community or has faced hardship and need support/help to rebuild their lives.

As we begin our journey in 2015, we’ve had a change in the leadership team with Mr. Lee Tien Poh leaving Maybank (Cambodia) Plc. on 1st March 2015 to take on a senior role within Maybank Group. Mr. Lee has played an important role during his tenor as CEO of Maybank Cambodia and has made significant contributions in laying a solid foundation for our Bank, our sincere thanks to him.

Succeeding the role as the new CEO of Maybank (Cambodia) Plc. is Ms. Cynthia Liaw. Ms Liaw is an experienced consumer banker who has demonstrated her drive and leadership and has achieved many milestones in Singapore. The Board welcomes her and we are confident that she will continue our Bank’s growth momentum and bring our Bank to greater height in Cambodia.

I also welcome Mr. Soon Su Long, who joined as a director of Maybank (Cambodia) Plc. on 31st March 2015. Mr. Soon’s appointment will enable our Bank to offer a coherent strategy in coordinating our business activities within the Indochina countries and ASEAN. His presence will enable our Bank to be best in class in delivering the right solutions and right products to our clients who need cross border banking services.

We look forward to the creation of the ASEAN Economic Community by the end of 2015 which represents a market of over 600 million people. As we are a part of the Maybank Group, with a diversified work force over 30 nationalities, Maybank Cambodia can leverage on the Group’s multi-cultural assets to excel in a liberalized ASEAN market. In particular, we help our customers here in Cambodia to grow their businesses in the ASEAN market leveraging on our network across the ASEAN Economic Community. Our people are also well versed in using technology for the delivery of new products and services to serve our growing customer base.

Once again, on behalf of the Board, I wish to thank all our stakeholders for their support, cooperation and assistance rendered to Maybank Cambodia. Special thanks to the National Bank of Cambodia and other regulatory authorities for the guidance and support. I envisage we will see more opportunities in 2015 and we can look forward to continued support and guidance from all stakeholders going forward.

CHEAH TEIK SENGChairman

“”

We help our customers here in Cambodia to grow their businesses in the ASEAN market leveraging on our network across the ASEAN Economic Community.

THEFINANCIALS

OTHERINFORMATION

CORPORATE GOVERNANCE & ACCOUNTABILITY

BUSINESS SECTOR REVIEW

PERFORMANCE REVIEW

MILESTONES &ACHIEVEMENTS

9

DearShareholders,This is my first letter to you as the Chief Executive Officer (CEO) of Maybank (Cambodia) Plc. I would first like to thank the Board and the Group Management team for giving me the opportunity to undertake this challenge and responsibility. At the same time, I am also very excited at the opportunity to demonstrate the growth possibilities that Maybank Cambodia can achieve. In this letter, I would like to share with you my thoughts on how we have performed in 2014, and our expectations for 2015.

REVIEW OF 2014 PERFORMANCE

In 2014, we were faced with the challenges of our lending margins under pressure, and a higher overheads from the initial investments in building up our franchise. Both challenges required us to focus on improving our productivity and cost management efforts.

Against this backdrop, our company was able to achieve a net profit of USD10.76 million, the highest since we first started our operations here two decades ago. We were able to deliver a commendable Return of Equity of 14.03%.

Our net interest income grew by 9.29% when compared to FY2013 mainly driven by higher loan growth showing a 29.60% y-o-y growth. With lending margins under pressure, our Net Interest Margin to Total Asset ratio had deteriorated to 3.41%, from last year of 4.03%.

Despite a challenging 2014, our company continued to deliver on key strengths built in the past years and the talent of more than 300 local Maybankers. Pursuing on our business expansion strategy and in building up our franchise in Cambodia, we have successfully opened another 5 new branches this year making our footprint to 21 branches, and 37 ATMs across the country. Our robust growth in our business franchise has translated to our business growth, which saw Gross Loans and Advances grew significantly by 29.60% to USD352.62 million from USD272.08 million in 2013. We were also able to capitalize on our bigger branch footprint and brand visibility to help strengthen our funding capability. As a result, our Customers’ Deposits grew higher by 21.70% to USD361.06 million in 2014 from USD296.68 million in 2013.

The expansion in our deposit volume can also be attributed to the launch of our Premier Wealth Banking service to cater for the growing affluent customer segment in this country, which is an indication of the value creation potential of this new business. This included the rollout of the first Maybank Premier Wealth Lounge at one of the newly opened branches at the vibrant BKK1 area, which introduces a differentiated and new level of banking experience for our customers. This is a testament to our philosophy of putting customer experience at the forefront of everything we do. Internally, we have also embarked

CEO’s Statement

CYNTHIALIAWChief ExecutiveOfficer

LOOKING

AHEAD2015

Continue to take Maybank Cambodia into the next

phase of growth

Roll out a variety of new banking products

Leverage on technology to deliver innovative banking solutions to our customers

10

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Annual Report 2014

MESSAGE FROMTHE TOP

CEO’s Statement

on various service improvement initiatives to equip our employees in delivering consistent customer experience in fundamental areas, including the launch of a service commitment to passionately create consistent customer delight.

Our ongoing productivity improvements and cost management efforts have also yielded some results with one of the key banking productivity indicators, Cost to Income Ratio remained marginally higher at 47.13% as against last year’s 46.64%. We expect this trend to improve over the coming years as we continue to adopt prudent cost management.

On asset quality, we take cognizance of the need to grow responsibly and the need to balance growth with preservation of asset quality. This effort is reflected in a lower non-performing loan ratio of 2.36% in 2014 when compared to last year’s 3.18%. This is a clear indication of the success of our on-going efforts in reinforcing the credit asset quality framework, ensuring loan origination quality as well as pursuing proactive prevention and recovery activities.

OUR OUTLOOK FOR 2015& HEADLINE KPIs

As with FY2014, we will continue to drive productivity improvements and cost management to ensure that we manage our overheads growth in a comfortable range vis-à-vis our net operating income.

Since coming on board as the new CEO on 1 March 2015, I am excited to embrace the challenges ahead amidst the positive economic growth prospects in Cambodia. My focus will be to continue to take Maybank Cambodia into the next phase of growth. For the past 3 years, we have focused much on capability building and putting in the necessary infrastructure and framework. Under the next growth phase, I am certainly delighted with our plans to roll out a variety of new banking products which will certainly bring new and enhanced banking experience to our customers here. Moving forward, our strategy is to leverage on technology to deliver innovative banking solutions to our customers, and to provide a better customer experience. It is indeed about building on Maybank’s strength of humanising financial services, having the right service solutions and providing convenience to customers through technology.

Some of the products and services lined up are our enhanced internet banking suite including the introduction of a mobile app, card and merchant acquiring business, treasury, cash management, enhanced remittances and third party financial products. On services, we will also be bringing in Saturday banking services and investment services. Our priorities will always be helping our customers and employees to grow - helping our customers to expand their business and to accumulate wealth, and helping our employees to acquire relevant knowledge and skills, so that they can be ready for the challenges in the banking and finance industry in the region, and not just for Cambodia.

I am also especially excited with the young and local talent of more than 300 employees whom I will be working with, including the few Cambodia top talents whom have joined us through the award winning innovative business case competition, Maybank GO Ahead Challenge. Central to all the business initiatives that we will be embarking on is the continuing development of the local talent to enable them to take on leadership roles both within Maybank Cambodia as well as regionally within our Maybank Group. There will be increased emphasis on improving our internal environment to promote continuous learning and transformation around high performance and productivity.

With these considerations in place, our guidance for FY2015 on key performance indicators are:

APPRECIATION

I wish to thank all Maybankers for their commitment and contribution to the performance of the Bank last year. I would also like to extend my deepest appreciation to our customers and shareholders for their continued trust, loyalty and support rendered in what has been a somewhat challenging year.

Finally, I would like to record our appreciation to Mr. Lee Tien Poh, the former CEO who has taken on a senior Group role since March 2015. We are especially thankful for his leadership in building up Maybank Cambodia’s capability and infrastructure since local incorporation in 2012. He has successfully built up market share and positioned the Bank for the next growth phase.

On behalf of the management team, I would also like to express our appreciation for the valuable guidance provided by the members of the Maybank Cambodia Board, as well as the National Bank of Cambodia and other regulatory bodies, and we look forward to continued support for the coming years as we bring Maybank Cambodia to great new heights.

Thank you.

CYNTHIA LIAWChief Executive Officer

Return on Equity 15% -16%

Loans Growth 35% - 40%

Deposits Growth 35% - 40%

“”

It is indeed about building on Maybank’s strength of humanising financial services, having the right service solutions and providing convenience to customers through technology.

11

THEFINANCIALS

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12

HONG KONG

PHILIPPINES

PAKISTAN

THAILAND

CHINA

CAMBODIA

MALAYSIA

MYANMAR

SINGAPORE

INDONESIAPAPUA NEW GUINEA

VIETNAM

LAOS

LABUANBRUNEI

INDIA

Corporate Profile & Global NetworkMaybank is among the region’s leading banking groups with its roots embedded deep in the heart of the ASEAN community. Established in Malaysia in 1960, Maybank began venturing into regional markets from its early years, expanding progressively to become South East Asia’s fourth largest bank by assets today.

Cambodia Maybank (Cambodia) Plc: 21 branches

Hong Kong1 branch;2 branches via Maybank Kim Eng

India1 branch via MaybankKim Eng;1 branch in Mumbai via BII

Bahrain1 branch

China3 branches

Indonesia428 branches via 78.95% owned Bank Internasional Indonesia (BII);6 branches via Maybank Kim Eng; 1 branch via Maybank Syariah Indonesia

Malaysia402 branches;7 branches via Maybank Investment Bank

Brunei2 branches

HOME MARKETS INTERNATIONAL MARKETS

Singapore22 branches; 5 branches via Maybank Kim Eng

to the high standards it employs in every area of its operations. The Group’s Islamic banking arm, namely Maybank Islamic Berhad is recognised as among the global leaders in its field - it ranks as the top Islamic bank in Asia Pacific and third in the world in terms of assets.

Maybank’s mission of humanising financial services is clearly demonstrated through its commitment to ensure easy access to financing for all, provide fair terms and pricing, advising customers based on their needs and being at the heart of the community. The Group remains steadfast in its efforts to ensure the sustainability of its operations as well as that of the communities it serves. This is not only through efforts to finance economic development and the provision of modern financial services but also through innovative community programmes that impact the lives of the marginalised members of society. The Maybank Foundation, its regional arm to undertake Corporate Responsibility initiatives, is supported by keen involvement of employee volunteers and remains a major vehicle for the Group to positively impact many of Asia’s most needy communities in an effort to build a better tomorrow for all.

Maybank is also the largest financial services group in Malaysia and now operates from its three key “home markets” of Malaysia, Singapore and Indonesia, across all 10 ASEAN nations as well as key Asian countries and global financial centres. With its network of 2,400 offices and history of over 54 years, Maybank has developed unique insights into the needs of every customer segment whether retail, SMEs or large multinationals and has consistently demonstrated the ability to offer innovative solutions for all.

Over the years, Maybank has built on its expertise in a wide area of financial services and today its range of services includes commercial banking, investment banking, stockbroking, insurance and takaful, Islamic banking, offshore banking, asset management, venture capital financing and internet banking.

The Maybank Group has long been acknowledged for its leadership and financial strength, and for the past two years, has been recognised as among the World’s Top 20 Strongest Banks by Bloomberg Markets magazine. In addition, it has achieved numerous international awards for excellence and innovation, which stand testament

Group Strategic Business Units, pg. 16

Visit www.maybank.com/worldwidefor more information.

LEADERSHIP &PROFILE



MESSAGE FROMTHE TOP

Annual Report 2014


13

NEW YORK

LONDON

BAHRAINSAUDI ARABIA

UZBEKISTAN

LabuanMaybank International (L) Ltd: 1 branch

London1 branch; 1 branch via Maybank Kim Eng

Laos1 branch

Myanmar1 representative office

Pakistan1,242 branches via 20% owned MCB Bank; 4 branches via 32.5% owned Pak-Kuwait Takaful Company

PhilippinesMaybank Philippines Inc.:79 branches; 3 branches via Maybank Kim Eng

Thailand51 branches via Maybank Kim Eng

New York1 branch; 1 branch via Maybank Kim Eng

Papua New GuineaMaybank (PNG) Ltd:2 branches

Saudi Arabia1 office via Anfaal Capital

Uzbekistan1 office via 35% owned Uzbek Leasing International

Vietnam2 branches, 8 branches via Maybank Kim Eng; 145 branches via 20% owned An Binh Bank

2,400 OFFICES Over 2,400 offices in 20 countries

RM640 bilTOTAL ASSETSThe largest bank in Malaysia

22 milCUSTOMERSOver 47,000 employees serving over 22 million customers

Home Markets Malaysia, Singapore and Indonesia

Our three home markets of Malaysia, Singapore and Indonesia accounted for 88.6% of total Group Profit Before Tax (PBT) in FY2014. Malaysia is the largest contributor, with 59.7% of Group gross loans originating from this market and contributing 71.2% to Group PBT. The next biggest contributor to the Group’s performance is Singapore with 14.4% PBT contribution led by a strong commercial and consumer banking franchise.

OVERSEAS MARKETS

HOME MARKETS

Group PBT 2014

OVERSEAS MARKETS

HOME MARKETS

88.6%

11.4%RM9.1 bil

Corporate Profile & Global Network

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Annual Report


SIEM REAP

OUDARMEANCHEY

BANTEAYMEANCHEY

SISOPHON

BATTAMBANGPAILIN

PURSAT

KAMPONGCHHNANG

KAMPONGSPEU

KOH KONG

KAMPOT

KEPSIHANOUKVILLE

BATTAMBANG

SIEM REAP

KAMPOT

KAMPONGSPEU

KAMPONGCHHNANG

PURSAT

KOH KONG

KEP

SAMRONG

Local Branch Network

PROVINCES

Serey Sophorn Branch

Siem Reap Branch

Battambang Branch

Kampong Cham Branch

Krong Suong Branch Takeo Provincial Branch

Sihanoukville Branch

Maybank is among Cambodia’s top ten banks by assets. It was established in

and has since grown from a single branch set up to become a locally incorporated

ranging from corporate, commercial and consumer banking as well as internet banking. It operates in the main city of Phnom Penh and in most of the major provinces in Cambodia

branches.

Visit for more information.

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MONDOLKIRI

RATANAKIRISTUNG TRENG

KAMPONG THOMKRATIE

KAMPONG CHAM

PREAH VIHEAR

KAMPONGCHHNANG

KAMPONG

TAKEO

PHNOMPENH

PREYVENG

SVAYRIENG

TBENGMEANCHEY

KAMPONG THOM

TAKEO

KAMPONGSPEU

KAMPONGCHHNANG

STUNG TRENG

BANLUNG

SEN MONOROM

SVAYRIENG

PREYVENG

KRATIE

KAMPONG CHAM

Local Branch Network

Phnom Penh Main Branch

Toeuk Thla Branch

Ou Ruessei Branch

Toul Kork Branch

Olympic Branch Chbar AmpovBranch

Stung MeancheyBranch

Mao Tse ToungBranch

Boeng Keng Kang Ti Muoy Branch

Chroy ChangvarBranch

Obek KaormBranch

Ta Khmao Branch

Kampuchea KromBranch

Phnom Penh Special EconomicZone Branch

PHNOM PENH

16

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Annual Report 2014


INVESTMENT BANKING

Maybank Investment Banking BerhadMaybank Investment Bank Berhad is a wholly-owned subsidiary of Maybank. Maybank IB is the Malaysian investment banking operation of Maybank Kim Eng. It offers a complete range of investment banking products and solutions including corporate finance and advisory, strategic advisory, equity markets, stock broking, debt markets, derivatives and research.

Maybank Kim Eng Holdings LimitedMaybank Kim Eng Holdings Limited is a wholly-owned subsidiary of Maybank. Maybank Kim Eng comprises businesses stretching around the globe with offices in Singapore, Hong Kong, Thailand, Indonesia, the Philippines, India, Vietnam, Great Britain and the United States of America. It provides services in corporate finance, debt markets, equity capital markets, derivatives, retail and institutional securities broking and research.

Group Strategic Business Units

ISLAMIC BANKING

Maybank Islamic BerhadMaybank Islamic Berhad is Maybank Group’s wholly-owned, full-fledged licensed Islamic bank. It is the leading provider of Islamic financial products and services in ASEAN. Maybank Islamic leverages on the Group’s infrastructure and network to offer end-to-end Shariah compliant financial solutions. Its portfolio of diversified products and services are available through a network of over 400 Maybank branches in Malaysia, as well as in Indonesia, Singapore, Hong Kong, London and Bahrain. It continues to be the domestic leader in overall market share for financing and deposits in 2014.

Maybank Syariah IndonesiaPT Bank Maybank Syariah Indonesia (Maybank Syariah) was established from the conversion of PT Bank Maybank Indocorp into an Islamic (syariah) commercial banking entity in 2010. Maybank Syariah aims to be a leading and preferred Shariah financial service provider in Indonesia and the region. Its business strategy focuses on corporate banking as well as advisory services.

The corporate and investment banking services mainly deal with bilateral, syndication and club deal financing for local and multinational corporations, particularly Indonesian and Malaysian entities, while the treasury services focuses on money market operations and foreign exchange trading covering the front office dealing functions as well as backroom settlement and support services.

Malayan Banking Berhad is the holding company and listed entity for the Maybank Group with branches in Malaysia, Singapore and other international financial centres such as London, New York, Hong Kong and Bahrain.

Maybank’s key overseas subsidiaries are PT Bank Internasional Indonesia Tbk, Maybank Philippines Incorporated, Maybank (Cambodia) Plc, Maybank (PNG) Ltd in Papua New Guinea and Maybank International (L) Ltd in the offshore centre of Labuan.

The major operating subsidiaries are Maybank Islamic Berhad, Maybank Investment Bank Berhad, Maybank Kim Eng Holdings Limited and Etiqa Insurance Berhad. Maybank has associate companies in Pakistan (through 20%-owned MCB Bank) and in Vietnam (through 20%-owned An Binh Bank).

Syariah

Group Corporate Structure, pg. 19

17

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Annual Report 2014



INSURANCE

EtiqaEtiqa is the brand for Maybank Group’s Insurance and Takaful businesses, which offer all types and classes of Life and General conventional insurance policies as well as Family and General Takaful plans via our multi distribution channels. The conventional insurance are underwritten by Etiqa Insurance Berhad whilst the takaful coverage are provided by Etiqa Takaful Berhad. Takaful is an arrangement based on mutual assistance under which takaful participants agree to contribute to a common fund providing for mutual financial benefits payable to the takaful participants or their beneficiaries on the occurrence of pre-agreed events.

Etiqa features a strong agency force comprising over 15,000 agents, 31 branches throughout Malaysia, a wide Bancassurance distribution network with more than 400 Maybank branches and also third party banks; as well as co-operatives and brokers. Etiqa is one of the pioneers for direct sales through the internet with Motortakaful.com/Maybank2u online services.

ASSET MANAGEMENT

Maybank Group Asset Management BerhadMaybank Asset Management Group (“Maybank AM Group”) is one of the pioneers in the local asset management industry with over 30 years of experience. It comprises a holding company, Maybank Asset Management Group Berhad and six subsidiaries in four key ASEAN markets namely Malaysia, Singapore, Indonesia and Thailand. The subsidiaries are Maybank Asset Management Sdn Bhd, Maybank Asset Management Singapore Pte. Ltd., PT Maybank GMT Asset Management, Maybank Asset Management Thailand Co, Ltd, Maybank Islamic Asset Management Sdn. Bhd. and Maybank Private Equity Sdn. Bhd.

These entities provide a diverse range of Asian focused investment solutions for all types of investors such as corporations, institutions, pension funds, insurance, takaful companies and individual clients. The fund portfolio management services cater to products ranging from equity, fixed income to money market instruments through direct mandates, unit trust and wholesale funds. Maybank AM Group’s asset under management stood at RM15.2 billion as at 31 December 2014, with assets comprising of 57% conventional and 43% Shariah-compliant.

INTERNATIONAL OPERATIONS

Maybank SingaporeMaybank Singapore is a Qualifying Full Bank (QFB) with an approximate net asset size of SGD57 billion and staff strength of over 1,800. We have established significant presence in the retail and wholesale banking markets over the 5 decades of our history here. Today, we lead the market in providing customers with alternative financial solutions in the form of the widest suite of Islamic Banking products and services.

Our network of 27 service locations in Singapore is one of the largest among foreign banks. As part of the atm5 - Singapore’s only shared ATM network among 7 participating QFBs, we offer customers a combined reach of more than 200 ATMs, island-wide.

PT Bank Internasional Indonesia TbkPT Bank Internasional Indonesia Tbk (BII) is a subsidiary of Maybank. It is the ninth largest commercial bank by assets and is listed on the Indonesia Stock Exchange (Ticker: BNII). The Bank provides a full range of financial services for business, retail and global banking customers. As of 31 December 2014, BII’s network comprises 428 branches, including Syariah branches, two overseas branches in Mumbai and Mauritius and 1,530 ATMs including Cash Deposit Machines (CDMs). BII has total customer deposits of Rp102.5 trillion and Rp143.4 trillion in assets.

Maybank International (L) Ltd and Maybank International Labuan BranchMaybank International Labuan Branch was setup in 2013, as an offshore branch. This is designated as the Group's Centre of Excellence for foreign currency credit and provides international banking services including foreign currency deposits and loans, trade financing, treasury services and Islamic banking solutions. This is in addition to Maybank International (L) Ltd which was incorporated in 1990 as a wholly-owned subsidiary of Maybank Group.

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Maybank Greater ChinaMaybank Greater China comprises our presence in Hong Kong, Shanghai, Beijing and more recently Kunming. It provides wholesale banking and investment banking services to commercial and corporate clients in Hong Kong and China, and specialises in cross-border solutions to facilitate flows between Greater China and ASEAN.

Maybank Philippines IncorporatedMaybank Philippines Incorporated (MPI) is a full-service commercial bank providing both retail and wholesale banking services, offering a wide array of financial solutions geared towards the consumer market and selected segments of top-tier corporations in the Philippines. MPI is also involved in treasury operations, with an emphasis on money market operations and foreign exchange trading. MPI operates an extensive network of 79 branches nationwide.

Maybank Indochina ClusterMaybank Indochina comprises our subsidiary in Cambodia, full fledge branches in Vietnam and Laos, and a representative office in Myanmar. We offer wholesale banking services to our commercial and corporate segments across our Indochina presence, and provide retail banking services in Cambodia and Laos.

Maybank (Cambodia) PlcIn April 2012, Maybank was locally incorporated to become Maybank (Cambodia) Plc., reflecting our long-term commitment to Cambodia and in line with our standing as a regional bank. It provides a full range of banking services for the consumer, SME and commercial and corporate segments through 21 branches across the nation.

ASSOCIATES

MCB Bank LtdMCB Bank is a 20%-owned associate company of Maybank. As a leading bank in Pakistan with more than 60 years of experience, MCB has played a pivotal role in representing the country on global platforms with a presence in Sri Lanka, Dubai, Bahrain, Azerbaijan and Hong Kong. It serves through a network of 1,242 branches including 27 Islamic banking branches within Pakistan and 9 branches outside the country. MCB has a large deposit base of Rs676 billion and total assets of Rs941 billion.

An Binh BankAn Binh Bank is a 20%-owned associate company of Maybank. Founded in May 1993, An Binh Bank has transformed over the years from a rural bank to an urban bank offering a full range of commercial banking products and services. With 20 years under its belt, An Binh Bank has gained a firm foothold in Vietnam’s banking industry with a network of over 146 branches and sub-branch offices located across 29 provinces nationwide.

Visit www.maybank.com/worldwidefor more information.

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Group Corporate Structureas at 31 January 2015

ASSET MANAGEMENT100% Maybank Asset Management Group Berhad (Investment Holdings)

100% Maybank Asset Management Sdn Bhd (Fund Management)

99% PT Maybank GMT Asset Management (Fund Management)

100% Maybank Islamic Asset Management Sdn Bhd (Fund Management)

100% Maybank Private Equity Sdn Bhd (Private Equity Investments)

100% MAM DP Ltd (Fund Management)

100% Maybank Asset Management (Thailand) Company Limited (Fund Management)

100% Maybank Asset Management Singapore Pte Ltd (Fund Management)

100% Maybank Trustee Berhad (Trustee Services)

100% Maybank Shared Services Sdn Bhd (IT Shared Services)

Other Subsidiaries

OTHERS

INSURANCE & TAKAFUL100% Etiqa International Holdings Sdn Bhd (Investment Holding)

69.05% Maybank Ageas Holdings Berhad (Investment Holding)

100% Etiqa Insurance Berhad (Life & General Insurance)

100% Etiqa Takaful Berhad (Family & General Takaful)

100% Etiqa Life International (L) Limited (Offshore Investment-linked Insurance)

100% Etiqa Offshore Insurance (L) Limited (Management Services)

100% Etiqa Overseas Investment Pte Ltd (Investment Holding)

32.5% Pak-Kuwait Takaful Company Limited (Takaful Business)

100% Etiqa Insurance Pte Ltd (Management Services)

COMMERCIAL BANKING100% Maybank Islamic Berhad (Islamic Banking)

98.31% PT Bank Internasional Indonesia Tbk (Banking)

100% PT BII Finance Center (Multi financing)

62% PT Wahana Ottomitra Multiartha Tbk (Multi financing)

100% PT Bank Maybank Syariah Indonesia (Islamic Banking)

99.97% Maybank Philippines Incorporated (Banking)

100% Maybank (Cambodia) Plc (Banking)

100% Maybank International (L) Limited (Offshore Banking)

100% Maybank (PNG) Limited (Banking)

20% MCB Bank Limited (Banking)

20% An Binh Commercial Joint Stock Bank (Banking)

35% Uzbek Leasing International A.O. (Leasing)

INVESTMENT BANKING

MALAYAN BANKING BERHAD

100% Maybank IB Holdings Sdn Bhd (Investment Holding)

100% Maybank Kim Eng Holdings Limited (Investment Holding)

100% Maybank Kim Eng Securities Pte Ltd (Dealing in Securities)

83.50% Maybank Kim Eng Securities (Thailand) Plc (Dealing in Securities)

100% Maybank ATR Kim Eng Capital Partners, Inc. (Investment Holding)

80% PT Maybank Kim Eng Securities (Dealing in Securities)

100% Maybank Kim Eng Securities (London) Limited (Dealing in Securities)

100% Maybank Kim Eng Securities USA Inc. (Dealing in Securities))

100% Kim Eng Securities (Hong Kong) Limited (Dealing in Securities)

75% Kim Eng Securities India Private Limited (Dealing in Securities)

Other Subsidiaries

100% Maybank Investment Bank Berhad (Investment Banking)

100% BinaFikir Sdn Bhd (Consultancy and Advisory)

Other Subsidiaries

Notes:1. Where investment holding companies are omitted, shareholdings are shown as effective interest.2. Companies that are not shown include those dormant, under member’s voluntary liquidation, have

ceased operations or provide nominee services.

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Organisation Structureas at 8 May 2015

Chief Executive Officer

CYNTHIA LIAW

SOU MONIVEARK CHOY WAI KWONG

BUSINESS

Head, Retail Financial Services

Head, Corporate & Transaction Banking

SEAN THORNINN SOK LENG

THANABALAN V CKARAN

Head, Payment Business

Head, Business Banking

Head, GlobalMarket - Indochina

Responsible for driving the strategy, growth and performance of the RFS business which covers the consumer and retail SME segments. The core responsibilities of her team include overseeing product management, formulating business strategies, driving financial and business performance through sales and marketing, monitoring customer service, executing the RFS business as well as leveraging on cross-border synergies of the Community Financial Services businesses with the Maybank Group, particularly in the areas of wealth management, high net-worth and affluent banking, and Retail SMEs.

Responsible for driving and overseeing the fee-based businesses of the Bank which covers Cards business, Remittance and Payment business as well as Virtual Banking business. His team is accountable for the fee-based income of the Bank, and manages product development and management, oversees business development, formulates business strategies, and monitors the financial and business performance of all payments related businesses of the Bank. Also focuses on leveraging the cross-border synergies of the Community Financial Services businesses with the Maybank Group.

Responsible for the overall strategy, growth and performance of the Corporate & Transaction Banking businesses comprising corporate banking, client coverage, trade finance and cash management. His team provides financing solutions to corporate and institutional clients as well as managing their accounts to deliver innovative, customized end-to-end financial solutions. Also accountable for the successful execution of strategic initiatives and business transformation including improving the Bank’s product-suite and capabilities as well as driving corporate and transaction banking business across the region.

Responsible for managing and growing the local client base of the Small and Medium Enterprises (SME) and Business Banking segments. His team provides financing solutions and dedicated point of contact in managing the accounts of local businesses. Also accountable in expanding the Bank’s business banking portfolio through new customer acquisition programs, organic growth and segment collaboration especially with the Corporate and High Net-Worth segments.

Responsible for the creation and setting up of the Global Markets unit for both Maybank Cambodia and Maybank Vietnam. He oversees the running of the Global Markets units in both countries as well as develops and enhances Maybank’s Global Markets presence and reputation in the region. Also accountable for the Asset and Liabilities Management and FX Sales of the Bank.

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Organisation Structure

LIONG KHAI SIM

FUNCTION

Head, Finance & Strategy

MOHAMMAD FAUZIABD WAHAB

Chief Risk Officer

HUOT SUNNY KHOO ENG HOE

CHOU TEONG BOONQAZREEN CHAN ABDULLAH

Head, Human Resource

Head, Business Operations Support

Head, Credit Administration & Loan Management

Head, Corporate Affairs & Services

Responsible for formulating and implementing the people strategy of the Bank. Her team is also responsible for executing HR policies as well as ensuring human capital management and strategy are effectively implemented across the Bank. The key focus and objectives include establishing and strengthening Maybank’s brand as an employer of choice among the top talent, driving a high performance culture, improving staff productivity as well as the bank’s transformation through people strategy and structure aspects and building a sustainable talent and succession pipeline.

Responsible for overseeing the Bank’s overall internal operations infrastructure to ensure service integration and effectiveness. His team consists of Branch Operations, Cards Operations, Centralised Operations, IT and Property & Security. The core responsibilities of his team includes developing and enhancing processes to support all banking transactions, and ensuring the smooth daily operations of these functions. Specifically for the IT role, his team is responsible for driving the Bank’s technology initiatives to support the Bank’s long-term strategic objectives.

Responsible for the finance and strategy functions of the Bank, which include overseeing financial and performance reporting, tax management, capital management and accounting operations. His team is also responsible in developing the Bank’s long term strategies, and oversee the development and propagation of the Bank’s strategic objectives. They also drive productivity and cost management improvements, while monitoring the overall Bank’s business strategy to ensure the overall profitability and growth of the Bank.

Responsible for the Bank’s credit and risk management. His team provides oversight of the Bank’s risk management and credits through establishing the Bank’s risk strategies, frameworks and policies, and independently assessing and monitoring all the risks faced. Credit and Risk Management is committed to being a business partner and ensure value creation to support the Bank’s aspirations.

Responsible for the corporate services and legal affairs of the Bank, including assisting the Board in discharging their duties and obligations. Her team is also responsible in elevating the Maybank brand as well as positioning the Bank with external stakeholders, including executing strategy to ensure all the Bank’s touch points and products are equated with best in class service for enhanced customer loyalty as well as developing marketing communications to support the businesses’ sales activities. Additionally, her team also focuses on deepening relationships with the communities the Bank serves, to flourish and grow in sustainable, meaningful ways together.

Responsible for the documentation of loans and advances prior to the release of funds to borrowers as well as ensuring close management of loan repayments as well as recovery of bad and doubtful loans. His team focuses on increasing efficiency, which includes process simplification, reduced duplication, better turnaround time and lower error rates for the internal team as well as the solicitors.

We seek to enable communities to realise better opportunities…

...knowing in our hearts, that growing communities will lead to the

growth of nations.

‘The faces of the annual Chingay Parade held to celebrate the Chinese New Year. International performing art talents and groups are being invited every year to light up the celebrations.’by Wong Chek PohMaybank Photography Awards 2013Portraits Photography

STRATEGY & SUSTAINABILITY

The ASEAN Opportunities 24Core Values & The Maybank Brand 27Code of Ethics & Conduct 28Sustainability at Maybank 29

LEADERSHIP & PROFILE

Board of Directors 30Board of Directors’ Profile 32Executive Committee 36Human Resource 42

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280 - 615

520 - 930

220 - 625

The ASEAN OpportunitiesRealising the potential for long term growth

Malaysia

Thailand

Singapore

Indonesia

Brunei

Cambodia

Vietnam

Laos

Myanmar

Philippines

McKinsey’s Three Paths to ProsperityMcKinsey Global Institute (MGI) suggests three potential drivers of returns for ASEAN companies, governments and investors: namely, globalisation, urbanisation and the deployment of disruptive technologies. Each is already a force, but could further significantly add to growth.

Capex Inflection PointASEAN’s capital expenditure (capex) as a share of GDP has only been gradually increasing, meaning that capex is driving growth. There is potential for capex to accelerate as free trade kick starts new capital investment and ASEAN’s accelerating capex cycle is in clear divergence of China’s decelerating capex cycle.

As an ASEAN regional financial services group, Maybank is positioned to benefit from the long term growth of the ASEAN Economic Community (AEC) from 2015.

Our presence in all 10 ASEAN countries places us in a favourable position to support and benefit from the ASEAN growth story as we deliver innovative solutions to our clients. Doing business in ASEAN is our strength as we have the heritage, talent and connections to capture market opportunities. We list down some of the reasons we are excited about the growth opportunities in ASEAN.

MGI’s Three Paths to Prosperity for South East Asia

ASEAN’s Capex Cycle Compared to China’s

Capturing a greatershare of global flows

Economic impact, 2030USD billion, 2013 prices

% of GDP,2013

Riding the urbanisation wave

Deploying disruptive technologies

5-12

10-18

4-12

Source : MGI’s November 2014 report: “South East Asia at the crossroads: Three Paths to Prosperity.”

Source : CEIC, Maybank Kim Eng Research.

50

45

40

35

30

25

20

15

10

(%)

85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15F

ASEAN 6 Capex share of GDP (%)

China Capex Share of GDP (%)

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The ASEAN Opportunities Realising the potential for long term growth

M&As are on the riseMerger and Acquisitions (M&A) have risen in recent years in the lead up to the launch of the AEC. M&As are dominated particularly by non-cyclical sectors such as financial and consumer sectors. With financials arguably facing more regulatory scrutiny, the consumer segment is expected to continue to be a focus.

Intra-Regional FDI share risingThe chart shows the investment share percentage of foreign direct investment (FDI) that stays within the ASEAN region. In recent years, there has been a steady rise and one-fifth of all FDI share is now inter-ASEAN.

Increasing infrastructure needsUSD7 trillion will be needed by ASEAN economies infrastructure needs between 2014 and 2030, according to McKinsey Global Institute’s (MGI) estimates. Given strong urbanisation and demographic trends, such spending will need to occur to prevent growth from being curtailed by infrastructure bottlenecks.

Underleveraged balance sheetsThe ability to fund capex relies on both favourable demographics and under-leveraged balance sheets. ASEAN is under-leveraged, particularly Indonesia, the Philippines and Vietnam. Both of ASEAN’s capex and credit cycles have capacity to accelerate.

% Total Private Sector Debt to GDP

Total Government Debt to GDP Total Debt to GDP

Developed MarketsJapan 168 243 411US 160 105 264Eurozone 164 93 257

China 168 49 217Indonesia 55 22 77India 68 67 135Cambodia 54 n/a n/aMalaysia 170 53 223Philippines 44 53 97Singapore 129 105 234Thailand 181 32 213Vietnam 110 49 159

Debt to GDP by Sector, 2013

Consumer and Financials Dominate Regional M&A

Trend of Investment Share of Intra-ASEAN FDI

Required Infrastructure and Real Estate Investment, USD trillion

100

90

80

70

60

50

40

30

20

10

02008 2009 2010 2011 2012 2013 2014

Indonesia

Philippines

Thailand

Malaysia

Singapore

Vietnam

Others2

Totalinvestment

(%)

(%)

Others

Industrial

Financial

Energy and Utilities

Diversified

Consumer

Communications & Technology

Basic Materials

25

20

15

10

5

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

5.6

12.5

22.0

10.9

8.1

10.4

13.412.4

20.1

9.6

15.113.9

15.6

18.1

21.7

Residentialreal estate

Commercialreal estateTelecom

Water

Power

Transport

3.1

2.7

0.9

0.8

0.7

0.7

0.70.5

0.5

0.6

0.6

1.0

1.2

Source : “Deleveraging? What Deleveraging?,” by Luigi Buttiglione, Philip R. Lane, Lucrezia Reichlin and Vincent Reinhart, International Center for Monetary and Banking Studies, September 2014, CEIC, World Bank, Maybank Kim Eng Research

Source : Bloomberg, Maybank Kim Eng Research

Source : ASEAN Secretarial, CEIC, Maybank Kim Eng Research

Source : McKinsey Global Institute analysis. Taken from “South East Asia at the crossroads: Three paths to prosperity” November 2014. Reproduced with permission by Maybank Kim Eng Research

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The ASEAN Opportunities Realising the potential for long term growth

Prime savers ratio risingASEAN’s Prime Savers Ratio (those aged between 40-60 to the total population) is forecast to continue to rise. For 2010-30E, the rising trend of the Prime Savers and mid-young ratios in ASEAN economies has the potential to benefit from economic growth and financial market performance.

Potential for higher financial inclusionLow levels of financial inclusion still exist in many parts of ASEAN. However, with savings profile change, advancement in technology and adoption of mobile banking, financial inclusion should improve. The potential appears greatest in Vietnam, Cambodia, Indonesia, Laos and even the Philippines.

Note:Information courtesy of Maybank Kim Eng, extracted from the booklet Big Ideas: The Charts of ASEAN. Information on the Three Paths of Prosperity and data on ASEAN economies infrastructure is courtesy of McKinsey Global Institute (MGI). Insurance information is courtesy of Swiss Re. Islamic banking information is courtesy of KFH Research Limited and Malaysian International Islamic Financial Centre.

Formal Bank Accounts

120

100

80

60

40

20

010000 20000 30000 40000 50000 60000 70000 80000

Mongolia

Sri Lanka

Bangladesh

India

Laos Philippines

Vietnam Indonesia

PakistanCambodia

China

Thailand

Malaysia

Korea

Japan UK

USHong Kong

Singapore

Australia

Adults with account at a formal financial institutional in 2011 (%)

GDP per capital, PPP, 20110

Source : World Bank Financial Inclusion Data, Maybank Kim Eng Research

Demographics Trend in ASEAN

28

26

24

22

20

18

16

14

12

10

280

230

180

130

80

30

(%) (%)

1950 1960 1970 1980 1990 2000 2010 2020F 2030F 2040F 2050FPrime savers ratio Dependency ratio (RHS) Mid-young ratio (RHS)

Source : UN Population Database, Maybank Kim Eng Research

Potential for significant upside for insuranceThe insurance industry remains under-developed in many ASEAN countries compared to the developed North Asia. As technology and markets deepen, the development of different products that mobilise savings suggests potential for significant upside to even the more developed of the ASEAN markets.

Insurance Penetration as a % of GDP

16

14

12

10

8

6

4

2

0HongKong

SouthKorea

Japan

Singapore

Thailand

Malaysia

India

China

Indonesia

Philippines

Vietnam

Life Non-Life

Source : Swiss Re Sigma No 3/2014. Selected data published with permission granted to Maybank Kim Eng Research

Islamic banking set to expandASEAN’s Islamic finance industry is expected to double by 2018, growing from USD388 billion currently to reach USD770 billion by 2018. ASEAN currently makes up 19.4% of global market share of USD2 trillion global Islamic finance industry and is expected to reach 26% global share by 2018.

ASEAN’s Sizeable Islamic Finance Industry

Source : KFH Research Limited and Malaysian International Islamic Financial Centre

Banking1H 2014

FundsEnd-2014

Takaful1H 2014

SukukEnd-2014

Total(in USD billions)

ASEAN 172.1 22.1 3.1 190.3 387.6

Asia 203.8 23.2 3.9 204.3 435.2

GCC 564.2 29.4 9.0 93.2 695.8

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Core Values & The Maybank Brand

THE MAYBANK BRAND

Maybank is passionate about constant improvement and innovation. This is why we strive at being a pioneer in innovating products and services to meet our customers’ needs, providing a better way of life and preparing them for the future.

CORE VALUES

TEAMWORK

We work together as a team based on mutual respect and dignity

GROWTH

We are passionate about constant improvement and innovation

EXCELLENCE & EFFICIENCY

We are committed to delivering outstanding performance and superior service

INTEGRITY

We are honest, professional and ethical in all our dealings

RELATIONSHIPBUILDING

We continuously build long-term and mutually beneficial partnerships

Our T.I.G.E.R. values define what we believe in and what we stand for. These are our essential guiding principles for our hearts and minds, for those situations where the rule book provides no answers.

Although our business is complex, we adopt a flexible approach when resolving issues but within the scope of stipulated guidelines. We remain steadfast in honouring our commitments as we know that fulfilling our promises will build trust and create mutual respect among our stakeholders.

Our products and services are a reflection of our belief in doing the right thing. We advice our customers on what we perceive to be in their best interests. This is why we go above and beyond for our customers. We believe our customers receive the best service because of the dedication and commitment of our people.

We look to build long-term and mutually beneficial relationships as we endeavour to turn every interaction into a sustainable relationship. This could mean helping a customer start-up his first food stall, to helping his corporation expand beyond the home country. We stand by our customers, through good and tough times, helping to ensure that they have the opportunity to grow at any point.

We are honoured to have won our customers’ hearts and gained their trust. We remain committed in delivering best-in-class services.

By putting people first, each and every day, we are Humanising Financial Services.

Maybank Brand Value (USD billion)

2.2World Branding Awards:

Brand of the YearPutra Brand Awards:

GoldBrandFinance®:

Top 100 Banking Brand 2015Source: 2015 BrandFinance® Banking

500 League Table Results.

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Code of Ethics & Conduct

Maybank, as a custodian of public funds, has a responsibility to safeguard its integrity and credibility. It is with this understanding that the organization sets out clearly the code of ethics and conduct for its staff. The code stipulates the sound principles that will guide all Maybank staff in discharging their duties. It sets out the standards of good banking practice.

THE PURPOSE OF THE CODE IS TO: 1. Uphold the good name of Maybank and to

maintain public confidence in Maybank.2. Maintain public confidence in the security and

integrity of the banking system.3. Maintain an impartial and unbiased

relationship between Maybank and its customers.

4. Uphold the high standards of personal integrity and professionalism of Maybank staff.

THE CODE STIPULATES THAT STAFF SHOULD NOT: 1. Engage directly or indirectly in any business

activity that competes or is in conflict with the Bank’s interest.

2. Misuse or abuse their position in the Bank for their personal benefit or for the benefit of other persons.

3. Misuse information. Staff should not copy, remove or make use of any information obtained in the course of business for the direct or indirect benefit of themselves or of any other persons.

IN ADDITION TO THESE, STAFF SHOULD:1. Ensure the integrity and accuracy of records and/or transactions.2. Ensure fair and equitable treatment in all business dealings on behalf of the Bank.3. Maintain the highest standard of service in their relationship with customers.4. Maintain confidentiality of all relations and dealings between the Bank and its customers. However,

confidential information concerning a customer may be given or made available to third parties only with prior written consent of the customer or when disclosure is authorised under any Professional Secrecy Law to be made to the supervisory authorities investigating into an offence specified in such law and other permitted disclosures as stated in the Law on Banking and Financial Institution 1999.

5. Manage their financial matters well and not subject themselves to pecuniary embarrassment.6. Observe and comply with laws and regulations relating to the operations of the Bank.

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Sustainability at Maybank

Our sustainability progress is in line with our mission to humanise financial services. We aim to align our sustainability progress with our corporate strategy in order to achieve holistic growth for all of our stakeholders. We want to create enduring meaning and value across the workplace, marketplace, environment and community in ways that are globally significant and yet locally relevant. The achievement of these goals and the realisation of our value proposition contribute to our business competitiveness and are significant to maintaining our social licence to operate.

As the region’s leading financial institution and to prepare our business for the future, we have to embed sustainability into our operations and conduct our business in a way that creates value for our stakeholders over the short and long term. We also have the responsibility to manage our impacts positively.

OVERVIEW

Through the Group and Maybank Foundation, we invest in sustainable programmes to unlock social values and to realise long-term tangible results in the following areas:

Build an engaged regional workforce by putting in place employee engagement platforms.

Build high performing employees by upgrading their skills.

Nurture talents by providing the appropriate support for growth and the opportunity to excel in the organisation.

Build a happier and healthier workforce by promoting work–life balance, as well as physical and emotional well-being.

Maintain an inclusive workforce that embraces racial and gender diversity.

Investing for Impact Employee engagement

Learning and development

Talent and leadership

Health, safety and well-being

Diverse and inclusive workplace

Leverage on life-improving digitisation to expand our reach in order to bring our banking services closer to our customers.

Lead the way in responsible growth and lending practices to meet our sustainability commitments.

Focus on building relationships with customers and improving the financial capabilities of the community by providing access to effective and affordable solutions.

Digitisation

Product stewardship

Focus on customers

Community and Citizenship People Access to Products and Services

Commitment to the environment

Manage our ecological footprint by considering the direct and indirect impacts on the environment as we grow regionally.

environmental & biodiversity

disaster relief

education

arts and culture healthy living

community empowerment

Visit www.maybank.com/sustainabilityfor more information.

Further information on Maybank Cambodia’s sustainability efforts in 2014 can be found on page 78 of the Annual Report.

HAMIRULLAHBOORHAN

POLLIESIM

SPENCERLEE

CHEAHTEIK SENG

Board of Directors

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DATUK R.KARUNAKARAN

SOONSU LONG

LONGBEANGCorporateSecretary

QAZREENCHAN ABDULLAHCorporateSecretary

Board of Directors

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32

Fellow of theInstitute of Chartered

Accountants in England and Wales; Bachelor of Science, University of

Manchester, UK

Post GraduateCourse on Industrial

Project Planning, University of Bradford, United

Kingdom; Bachelor of Economics (Accounting)

Hons, Universityof Malaya

Board of Directors’ Profile

Cheah Teik Seng was appointed as a Director and Chairman of Maybank(Cambodia) Plc., which was locally incorporated on 2 April 2012 (received National Bank of Cambodia’s approval on 23 March 2012).

As a federal government Public Services Department scholarship holder, he served in the civil service in the early ‘80s. After leaving government service, he took on various roles in the banking and financial services industry both locally as well as in London, Hong Kong and Singapore. He held positions in Public Bank, Chase Manhattan Bank, Merrill Lynch, Goldman Sachs, UBS and in BNP Paribas, where he was its Managing Director for a tenure of nine years. He was appointed as CEO-designate of ECM Libra Avenue Group in 2006. He is currently a Director and partner of Aktis Capital Singapore Pte Ltd.

His current directorships in companies within the Maybank Group include as a Director of Maybank (Malayan Banking Berhad), Chairman of Maybank Kim Eng Holdings Ltd. as well as Director of Maybank Investment Bank Berhad and Maybank Kim Eng Securities (Thailand) Public Company Limited.

Cheah Teik Seng sits on the boards of other listed companies such as Drillsearch Energy Limited in Australia and MJC Investments Corp. in Philippines. He also sits as director of various private equity companies in Hong Kong and China.

He attended all five Board meetings held in the financial year ended 31 December 2014. Cheah Teik Seng has no family relationship with any director and/or major shareholder of Maybank (Cambodia) Plc. He has no conflict of interest with Maybank (Cambodia) Plc. and has never been charged for any offence.

Datuk Karunakaran was appointed as a Director of Maybank (Cambodia) Plc. on 12 October 2012. He serves as Chairman of the Audit Committee and as a member of the Risk Management Committee.

He joined the Malaysian Investment Development Authority (formerly known as Malaysian Industrial Development Authority) (“MIDA”) in August 1972 and served in various positions including Deputy Director, Director, Deputy Director-General and Director-General. He also served as the Director of MIDA Singapore, Cologne (Germany) and London (England). Having served MIDA for about 36 years, Datuk R. Karunakaran retired as the Director-General of MIDA in June 2008, a position he held for about 4 years. During Datuk R. Karunakaran’s service with MIDA, he was responsible for the promotion and coordination of the development of the manufacturing and services sector in Malaysia including promoting domestic and foreign investments in Malaysia. He was a member of the Cabinet Committee on Investment for High Impact Projects. He was also a member of ‘PEMUDAH’, a special task force set up by the Prime Minister to facilitate business, improve public service delivery systems in terms of process, procedures, legislation and human resources.

His current directorships in companies within the Maybank Group include as a Director of Maybank (Malayan Banking Berhad), Chairman of Maybank Private Equity Sdn Bhd as well as Director of Etiqa Insurance Berhad, Maybank Asset Management Group Berhad, Maybank Asset Management Sdn Bhd and Maybank Agro Fund Sdn Bhd. He also sits on the boards of several public listed companies such as Integrated Logistics Berhad, IOI Corporation Berhad and Bursa Malaysia Berhad.

He attended all the five Board meetings held in the financial year ended 31 December 2014. Datuk R. Karunakaran has no family relationship with any director and/or major shareholder of Maybank (Cambodia) Plc. He has no conflict of interest with Maybank (Cambodia) Plc. and has never been charged for any offence.

CHEAHTEIK SENG IndependentNon-Executive Director

DATUK R. KARUNAKARAN IndependentNon-Executive Director

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Fellow of theInstitute of Chartered

Accountants in England and Wales; Member ofthe Malaysian Institute

of Accountants

SPENCERLEE IndependentNon-Executive Director


Spencer Lee was appointed as a Director of Maybank (Cambodia) Plc., which was locally incorporated on 2 April 2012 (received National Bank of Cambodia’s approval on 23 March 2012). He serves as Chairman of the Risk Management Committee and as a member of the Audit Committee.

Spencer Lee joined the Maybank Group in 1975 and served the Group in various capacities and positions including as Senior Executive Vice President and Head of International Business, Senior Executive Vice President and Head of Consumer Banking and Country Head for Maybank Singapore before retiring as Advisor, Maybank in November 2008. He was previously a Director of Maybank from December 2008 to October 2009, and served as a member of the Credit Review, Audit and Risk Management Committee of the Board.

His current directorship in companies within the Maybank Group include as Commissioner of PT Bank Internasional Indonesia Tbk. He also sits in the Maybank Foundation Board of Trustees.

He attended all five Board meetings held in the financial year ended 31 December 2014. Spencer Lee has no family relationship with any director and/or major shareholder of Maybank (Cambodia) Plc. He has no conflict of interest with Maybank (Cambodia) Plc. and has never been charged for any offence.

Master in Business Administration, Brunel

University of West London, United Kingdom; Diploma in

Management Studies, Singapore Institute of Management;

Diploma in Marketing & Selling Bank Services, International

Management Centre

POLLIESIM Non-IndependentNon-Executive Director

Pollie Sim was appointed as a Director of Maybank (Cambodia) Plc. on 28 February 2014. She also serves as a member of the Audit Committee and Risk Management Committee.

She has more than 30 years of experience in the banking and financial industry and has held many senior positions within Maybank Group. Effective 1 October 2013, she has been appointed as the CEO of Maybank International. She is responsible for strategising, leading and transforming the Group’s international operations covering 14 countries excluding Singapore and Indonesia. Prior to her latest appointment, Pollie took the helm of Maybank Singapore as the CEO in July 2006. She has been instrumental in leading and developing Maybank’s retail banking business in Singapore. Prior to Maybank Singapore, Pollie was the CEO of Mayban Finance (S) Ltd.

Pollie serves as a non-executive director for several companies. Her current appointments include that of Singapore Unit Trusts Ltd, Maybank Philippines Incorporated and Maybank (Cambodia) Plc. She is also the Chairman of the Singapore Unit Trust Investment Committee and represents Maybank as a member of the Board of Asian Bankers Association (ABA).

In 2012, Pollie was accorded the IBF Distinguished Fellow by IBF (The Institute of Banking & Finance, Singapore) and also received the Pacific Rim Bankers Program Distinguished Leadership Award. In 2014, Pollie completed the Stanford Executive Program.

She attended all five Board meetings held in the financial year ended 31 December 2014. Pollie Sim has no family relationship with any director and/or major shareholder of Maybank (Cambodia) Plc. She has no conflict of interest with Maybank (Cambodia) Plc. and has never been charged for any offence.

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Bachelor ofScience (Economics)

in Accounting andFinance, University of

London; Associate Chartered Accountant, Institute of Chartered Accountants

in England andWales.

SOONSU LONG Non-IndependentNon-Executive Director

Soon Su Long was appointed as a Director of Maybank (Cambodia) Plc. on 31 March 2015. He also serves as a member of the Audit Committee and Risk Management Committee.

He is currently the CEO Indochina/Country Head of Maybank Vietnam, responsible for growing the business within the Indochina cluster comprising of Cambodia, Laos, Myanmar and Vietnam, as well as further cement Maybank’s footprint in the region. Soon Su Long has extensive regional exposure to Asia Pacific’s banking environment with over 20 years of experience in investment banking, commercial banking as well as Islamic banking. Prior to joining Maybank, he has held various senior management positions in Banks in Malaysia and Singapore.

Soon Su Long has no family relationship with any director and/or major shareholder of Maybank (Cambodia) Plc. He has no conflict of interest with Maybank (Cambodia) Plc. and has never been charged for any offence.

HAMIRULLAH BOORHAN Non-IndependentNon-Executive Director

Master of Business Administration, International Islamic University, Malaysia;

Diploma in Accountancy, Mara Institute of Technology, Malaysia;

Certified International Retail Banker, London Executive

Management – International Academy of Retail Bank

Hamirullah Boorhan was appointed as Director of Maybank (Cambodia) Plc., which was locally incorporated on 2 April 2012 (received National Bank of Cambodia’s approval on 23 March 2012). He also serves as a member of the Audit Committee and Risk Management Committee.

He is currently the Senior Executive Vice President and Head of Community Financial Services of Maybank, with responsibilities covering Consumer Finance, SME and Business Banking, Virtual Banking, HNW and Affluent Banking, Channel and Branch Network of Maybank Malaysia. Having joined Maybank upon graduation in 1985, he has 29 years of experience covering all aspects of banking, branch management, regional banking, consumer banking and auto financing business which involved expanding and growing the hire purchase market, locally and regionally. He is a Certified International Retail Banker by the London Executive Management – International Academy of Retail Banking since 27 September 2012.

He attended all five Board meetings held in the financial year ended 31 December 2014. Hamirullah Boorhan has no family relationship with any director and/or major shareholder of Maybank (Cambodia) Plc. He has no conflict of interest with Maybank (Cambodia) Plc. and has never been charged for any offence.

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QAZREEN CHAN ABDULLAH Corporate Secretary

Qazreen is the Corporate Secretary of Maybank (Cambodia) Plc., and is also its Head of Corporate Affairs & Services. She graduated with a Bachelor of Education in Guidance & Counselling from the University Putra Malaysia as well as Master of Business Administration from the University of Bath, UK.

She joined the Maybank Group in 1995 and underwent banking operations training during the initial period. She went on to take on various roles in Human Resource beginning with Industrial Relations. She was then tasked to set up the first Employee Communications role for the Group and expanded her scope to also lead Employee Relations and Employee Engagement roles. She took on the lead Change Communications role in various major Group initiatives including the merger & acquisition as well as integration exercise involving the Bank, Investment Bank and Insurance business. Prior to joining Maybank, she was part of the pioneer team of Carrefour, setting up the first hypermarket in Malaysia. She was the Project Lead for the local incorporation of the Maybank Phnom Penh Branch operations to Maybank (Cambodia) Plc.

Beang is the joint Corporate Secretary of Maybank (Cambodia) Plc. He is also the Head of Corporate & Legal Services, Corporate Affairs & Services. He graduated with a Bachelor of Public Law from the Norton University, Cambodia as well as Master of International Commercial Law and Corporate Counsel (L.L.M) from the Royal University of Law and Economics, Cambodia in collaboration with the Université Lumière Lyon 2, France.

He is a qualified lawyer admitted by the Bar Association of the Kingdom of Cambodia since 2005. Previously, he was with a telecommunication services provider based in Cambodia as the Head of Legal and also with local and international law firms based in Phnom Penh as a professional practice lawyer. He joined Maybank (Cambodia) Plc. since April 2014.

LONGBEANG Corporate Secretary

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Executive Committee

Liong Khai Sim was appointed as the Head of Finance & Strategy of Maybank (Cambodia) Plc. since 2 April 2012.

Responsibility

As the Head of Finance & Strategy, Khai Sim is responsible for the Bank’s strategy, financial, capital and funding management. He oversees Funding & Liquidity Management, Strategy & Business Planning and Finance & Accounts. With the new Global Markets (GM) set-up, the Bank’s funding and liquidity management roles were assumed by GM effective 1 May 2015.

Experience

Khai Sim has more than 25 years of experience covering all key areas of commercial banking, mainly in corporate & commercial lending, branch management and key finance functions – financial and management reporting, accounting, money market and internal audit. Prior to his appointment in Maybank (Cambodia) Plc., he served in Maybank Group holding various positions at Finance & Treasury Operations, Strategy & Corporate Finance and Branch Management, Community Financial Services. He has also previously served at Pacific Bank Berhad, holding various positions in Corporate & Investment Banking, Finance & Accounts and Branch Management, and at Visia Finance Berhad, holding various positions in Internal Audit and Accounts, Statistics & Money Market.

Qualification

Master of Business Administration, University of Hull, United Kingdom. Bachelor of Commerce, University of New South Wales, Australia. Member of the Certified Practising Accountants Australia. Chartered Accountant of the Malaysian Institute of Accountants. Certified Credit Professional, Institute of Bankers, Malaysia.

Committee Membership/Appointments

Nil

LIONGKHAI SIMHead, Finance & Strategy

Cynthia Liaw was appointed as Chief Executive Officer of Maybank (Cambodia) Plc. effective 1 March 2015.

Responsibility

Cynthia is responsible for driving the overall management and growth of Maybank (Cambodia) Plc. She spearheads the Bank’s business and growth strategy across all lines of businesses, ensuring a good balance between driving operational excellence, strong governance and business growth. She is responsible for leveraging on the strengths of Maybank Group to capture increased market share and at the same time strengthening Maybank’s operations in Cambodia.

Experience

Cynthia has more than 20 years of wide-ranging experience in both the Banking and Finance industry, and the Cards and Payments industry, with proven track record in building and growing business profitability. She has held senior management positions in NETS and MasterCard Asia Pacific Pte. Ltd. Prior to her appointment in Maybank (Cambodia) Plc, she has held positions as the Head of Virtual Banking and Payments, as well as Head of Cards Business for Maybank Singapore.

Qualification

Master of Applied Finance, Macquarie University, Australia; Bachelor of Social Sciences with Honours in Economics and Bachelor of Arts, National University of Singapore.


Cynthia is an EXCO member of the Association of Banks in Cambodia.

CYNTHIA LIAWChief Executive Officer

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Executive Committee

Sou Moniveark was appointed as the Head of Retail Financial Services of Maybank (Cambodia) Plc. effective 8 May 2015. Prior to this, she was the Head of Sales Strategy & Management, Channel Management.

Responsibility

Moniveark is responsible for the overall Retail and branch network performance of Maybank Cambodia, focusing on growing the Bank’s lending asset in Retail SME and Consumer segments as well as growing deposits. She is also responsible for Premier Wealth business, Product and Marketing and overall customer services of the branch including call center.

Experience

Moniveark has 10 years of banking experience in Human Resources, Retail Operations and Sales Management. She was the Head of Sales Strategy & Management at Maybank Cambodia for 2 years in which she has been instrumental in leading the sales and management strategy as well actively involved in rolling out key business initiatives such as branch expansion, new product launches and marketing campaigns, among others. Prior to this, she was the Head of Retail Operation at ANZ Royal bank for 2 years mainly responsible for all the Operations aspect of Retail Banking. She was also the Head of HR of ANZ Royal bank for more than 4 years. Before joining ANZ Royal, Moniveark has worked at British American Tobacco (Cambodia) for about 4 years in the Human Resources department.

Qualification

Bachelor in Management, National Institute of Management, Cambodia; Bachelor in English Education, Institute of Foreign Languages, Cambodia.


Board Member of the Cambodia Federation of Employer and Business Association (CAMFEBA).SOU MONIVEARKHead, Retail Financial Services

Sean Thorninn was appointed as the Head of Payment Business of Maybank (Cambodia) Plc. effective 8 May 2015. Prior to this, he was the Head of Product Development, Consumer Financial Services.

Responsibility

Thorninn is responsible for driving and overseeing the fee-based businesses of the Bank. This covers Cards business, Payment and ATM business, and Virtual banking business.

Experience

Thorninn has almost 10 years of banking and microfinance experience covering Corporate Banking Relationship, and Business Development in Retail Banking. Prior to joining Maybank (Cambodia) Plc., he spent about 3 years in Corporate Banking Relationship in one foreign bank and about 5 years in managing and growing the Financial Services Business in one of the leading micro-finance institution in Cambodia. He joined the Bank as the Head of Product Development, Consumer Financial Services in 2013 to support the growing retail banking business.

Qualification

Master of Business Management, University of Cambodia.


Nil.

SEANTHORNINNHead, Payment Business

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Executive Committee

Choy Wai Kwong was appointed as the Head of Corporate & Transaction Banking of Maybank (Cambodia) Plc. effective 8 May 2015. Prior to this, he was the Head of Global Banking.

Responsibility

As the Head of Corporate & Transaction Banking, Wai Kwong takes on the functions of Corporate Banking, Client Coverage and Transaction Banking at Maybank Cambodia. His areas of responsibility comprise client coverage, corporate banking, investment banking and transaction banking (covering trade finance and cash management).

Experience

Wai Kwong has more than 10 years of experience with the Maybank Group, starting with branch operations to commercial/corporate banking. He took on the role as the Head of Business Development of Maybank Phnom Penh Branch from 2006 to 2008, and was later appointed as the Head of Structured Trade & Commodity Finance at Head Office in Maybank Malaysia. In 2010, Wai Kwong assumed the position of Deputy General Manager - Business Development at Maybank Phnom Penh Branch and was subsequently appointed to the position of Head, Wholesale Banking (Corporate Banking, Client Coverage & Transaction Banking) in 2011 and Head, Global Banking in 2014.

Qualification

Bachelor of Business Administration (Hons), National University of Malaysia. Certified Credit Professional, Institute of Bankers, Malaysia.


Nil

CHOY WAIKWONGHead, Corporate& Transaction Banking

SOK LENGHead, Business Banking

Sok Leng was appointed as the Head of Business Banking of Maybank (Cambodia) Plc. effective 8 May 2015. Prior to this, he was the Head of Client Relations, Global Banking.

Responsibility

As the Head of Business Banking, Sok Leng is responsible for managing and growing the local client base of the Small and Medium Enterprises (SME) and Business Banking segments.

Experience

Sok Leng joined Maybank (Cambodia) Plc in April 2013 as a Business Relationship Manager. In June 2014, he took on the role as the Head of Client Relations, Global Banking, and subsequently in 2015 as Head of Business Banking. Sok Leng has been in the credit profession for more than 8 years. He has undertaken various sales and relationship roles including from being a Personal Banking Specialist to a Relationship Manager of Corporate Banking in his previous employments.

Qualification

Sok Leng holds a Master of Finance and Banking from the Build Bright University, Cambodia.


Nil.

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Executive Committee

THANABALAN V C KARANHead, Global Markets - Indochina

Thanabalan was appointed as the Head of Global Markets – Indochina effective 15 March 2015.

Responsibility

Thanabalan is responsible for the creation and setting up of the Global Markets unit for both Maybank Cambodia and Maybank Vietnam. He oversees the running of the Global Markets units in both countries as well as develop and enhance Maybank’s Global Markets presence and reputation in the region.

Experience

Thanabalan began his career with Maybank more than 20 years ago. He has spent most of it at the Treasury where he accumulated extensive experience in trading foreign exchange, money market and fixed income securities. Prior to joining Maybank Cambodia, Thanabalan was the Head of Global Markets at Maybank London for 4 years.

Qualification

Bachelor of Arts (Hons), University of Malaya.


Nil.

Mohammad Fauzi was appointed as the Chief Risk Officer ofMaybank (Cambodia) Plc. effective 1 July 2014. Prior to this, he was the Regional Credit Officer/Head of Credit Management.

Responsibility

Mohammad Fauzi is responsible for the Credit and Risk Management of the Bank, providing direction on the set up and implementation of risk management strategies, frameworks, policies, procedures, methodologies, and governance as well as providing independent assessment and monitoring of all the risks in alignment with the business objectives of the Bank. Credit and Risk Management is committed to being a business partner and ensure value creation to support the Bank’s aspirations.

Experience

Mohammad Fauzi has worked in multiple sectors including in Malaysian Government as Administrative and Diplomatic Officer, in software business development and in banking. Collectively he has 13 years of experience in banking sector. Previously, he was with Kwong Yik Bank Berhad in Corporate Banking Department and in later years, was also responsible in the set up of investment banking unit as lead arranger and underwriter for syndicated credit facilities and issuance of private debt securities. He started his career with Maybank in January 2007 at Group Risk - Credit Management specialising in credit evaluation of various credit segments from retail mortgage, business banking to large corporate loans and financial institutions at Maybank Group. In August 2012, he was assigned to Maybank (Cambodia) Plc as the Regional Credit Officer with accountability to set up Credit Management Department with the core responsibilities on independent credit quality supervision, credit approving and credit committee.

Qualification

Bachelors of Science in Business Administration majoring in Marketing and Organisational Behavioral Science from University of Missouri, St. Louis, USA. He is a Certified Credit Professional (Business) and a certified credit instructor for Maybank OMEGA Credit Skills Accreditation programme.


Nil

MOHAMMADFAUZI ABDWAHABChief Risk Officer

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Executive Committee

Qazreen Chan was appointed as the Head of Corporate Affairs & Services of Maybank (Cambodia) Plc. since 2 April 2012.

Responsibility

Qazreen’s areas of responsibility comprise of corporate and legal services, corporate communications, marketing communications and branding, as well as service management. She assists the Board in ensuring the highest standards in corporate governance. She is also the brand guardian of the Bank and drives customer service strategy to enhance customer experience, satisfaction and engagement.

Experience

Qazreen joined the Maybank Group in 1995 and underwent banking operations training during the initial period. She went on to take on various roles in Human Resource beginning with Industrial Relations. She was then tasked to set up the first Employee Communications role for the Group and expanded her scope to also lead the Employee Relations and Employee Engagement roles. She took on the lead Change Communications role in various major Group initiatives including the merger & acquisition as well as integration exercise involving the Bank, Investment Bank and Insurance business. Prior to joining Maybank, she was part of the pioneer team of Carrefour, setting up the first hypermarket in Malaysia.

Qualification

Master of Business Administration, University of Bath, UK. Bachelor of Education (Guidance & Counselling), Universiti Putra Malaysia. Certificate in Industrial Relations, Malaysian Institute of Management. Certified Product Marketing Manager, Association of International Product Marketing & Management, USA.


Nil

QAZREENCHAN ABDULLAHHead, Corporate Affairs & Services

Huot Sunny was appointed as the Head of Human Resource of Maybank (Cambodia) Plc. since 2 April 2012.

Responsibility

Sunny formulates people strategy and execution plan to support the Bank’s business aspiration. She is responsible to put in place robust HR framework to drive people agenda and capability, developing and maximizing people performance and productivity as well as create a positive working environment that highly engages the workforce.

Experience

Sunny has more than 10 years of experience undertaking Human Resource roles covering the four aspects of Human Resource management including Recruitment, Training & Development, Compensation & Benefit and Employee Relations with various multi-national companies. She had undertaken the role of Head of Employee Relations which required her to formalize and implement company policies, rules and regulations and pro-actively give legal advice to the highest compliance of the company.

Prior to joining Maybank Cambodia, Sunny was with First Cambodia Co. Ltd., a leading System Integration company in Cambodia where she was involved in developing and implementing Human Resource strategy for more than two years, and her last held position was Human Resource and Admin Manager.

Qualification

Bachelor of Education, Build Bright University of Cambodia.


Sunny is a member of the HR Club under the initiative of the Cambodian Federation of Employer and Business Association (CAMFEBA).HUOT SUNNY

Head, Human Resource

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Executive Committee

Khoo Eng Hoe was appointed as the Head of Business Operations Support of Maybank (Cambodia) Plc. effective 8 May 2015. Prior to this, he was the Head of Channel Management.

Responsibility

Eng Hoe is responsible for the overall business operations support. His areas of responsibility comprise of cards operations, branch operations (operations improvement), centralized operations, property and IT.

Experience

Eng Hoe started his banking journey with the United Malayan Banking Corporation (UMBC - now known as RHB Bank) in 1981. He has 33 years of experience working in various departments covering Trade Finance, Accounts, Operations and Credit. He joined Phileo Allied Bank (PAB) in 1995 as a Senior Operation Executive and was promoted to Assistant Branch Manager in 2000. The merger of PAB with Maybank took place in January 2001 and he subsequently became a Maybank Branch Manager in 2003. He was appointed as Head, Mortgage Mobile Team Perak in January 2010 to set up the Mortgage Team in Perak. Subsequently, he was appointed as Branch Manager for a Signature A Branch in August 2010 till August 2012.

Qualification

Certified Credit Professional (CCP – Consumer), Institute of Bankers, Malaysia.


NilKHOOENG HOEHead, BusinessOperations Support

CHOUTEONG BOONHead, Credit Administration &Loan Management

Chou Teong Boon was appointed as Head of Credit Administration & Loan Management of Maybank (Cambodia) Plc. effective 2 April 2014.

Responsibility

Teong Boon is responsible for and oversees the overall credit administration and loan management of MCP. The functions include loans documentation, disbursement, safe keeping of security documents and management of loan repayment including collection, early care and loan recovery.

Experience

Teong Boon has 33 years of banking experience mainly in Retail Banking and Consumer Finance. He was a Branch Manager in Region Penang/Kedah/Perlis prior to joining International Operations in 2008 when Maybank embarked on a strategic decision to grow its presence in Cambodia. He was the Branch Manager for Siem Reap branch and was also a member of the Branch Expansion Committee to assist with the opening of the earlier branches. As the number of branches grew, he joined Consumer Finance in 2010 to support the growing emphasis on Consumer Loans.

Qualification

Certified Credit Professional (CCP – Consumer), Institute of Bankers, Malaysia.


Nil.

42

drives greater engagement and commitment among the team. We also organized a 2-days team building trip to Sihanoukville aimed to improve interpersonal relationship and social interaction.

ACCELERATING SYNERGY REALISATIONS FROM ALL RESOURCES ACROSS OUR FOOTPRINT

In 2014, Maybank Cambodia management members participated in the Group’s ‘Navigating a Matrix Organisation and Collaborating for Business Success’ Workshop designed in-house and facilitated fully by our Group internal Facilitators that was made compulsory for all top 1,000 leaders across the Group. This Workshop was among the many important platforms to align staff to a Group-collaborative approach and way of doing business. The sessions were conducted involving cross-functions and cross-geographical mix of participants to facilitate cross-border engagement at each workshop.

INNOVATION

We participated in the Group Innovation Showcase 2014, showcasing Maybank Cambodia in the “Innovation Around Us” competition, competing with innovation videos from Maybankers across the region. Maybank Cambodia emerged as the winner of the competition, with our submission of a video showcasing our network expansion of a special provincial branch that brought to live our humanising mission.

Human Resource

HUOT SUNNYHead, Human Resource

SUSTAINING EMPLOYEE ENGAGEMENT

Sustaining high level of engagement levels is key to keeping productivity high and realizing a strong return on our investment in people. Our staff are regularly engaged via differentiated and diverse engagement platforms such as our newly improvised mini CEO townhalls with individual branches and departments, as well as various management and skip-level sessions with personal involvement of our CEO International. These engagement platforms are designed for leaders to map out clear direction, set and clarify expectations as well as foster staff involvement to deliver our Vision and Mission. Through these engagement sessions, staff experience first-hand interaction and coaching from our top leaders.

In 2014, we participated in the very first Maybank International Mind Body Soul initiative, “Power-UP Day”, of which goodies and local delicacies were distributed by the senior management members to each and every staff, to energise and power-up everyone for the final quarter of the year. Such initiative energises the staff and

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Human Resource

“ ”We continue with our relentless efforts and discipline to execute, track and improve on our people strategy and plan to facilitate the Bank in delivering commendable and sustainable financial performance, clear progress towards a well-defined culture, talent management and development practices as well as high talent attraction and retention trends, all while sustaining staff engagement at high levels.

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OPERATIONAL EFFICIENCY

We continue to leverage on technology and IT solution work tools to automate human capital management and development practices. Continuing from the launch of our myHR2u employee portal in 2013, the online Performance Management module was rolled out in 2014. This module automates the performance management process from goal setting to performance review, and increases visibility and transparency, allowing staff to better align their own goals with those of their supervision, team and Maybank as a whole.

TALENT & LEADERSHIP DEVELOPMENT

We continue to increase the readiness of our talent and leadership pool as we accelerate our growth, expand business activities and increase our footprint in the country. We have a robust talent management framework that harnesses the right intellectual capital that resides in our young workforce and enables us to design suitable pipeline programs feeding into leadership roles. We deploy global best practice processes in identifying our talent pool, comparable to or better than top performing organisations worldwide.

We participated in the Group’s multi-level talent reviews, namely the Country Talent Review. These sessions play the critical role in spotting the right talents for the right roles as well as develop these potential talents via our various leadership acceleration programs. This is a clear demonstration of our commitment to raise the level of our Internal Talents to that of global levels while maintaining our commitment to diversity and inclusion.

We also offered junior development program and talent programs to nurture high potential junior talents for long term retention and to assume key positions in the Bank as well as the Region or Group. The most successful program includes the Global Maybank Apprentice Program, a 2-year on-the-job rotation program, including International Assignments to immerse in the Group’s global network operations. A dedicated coach and mentor are assigned to guide the Global Maybank Apprentices throughout their journey.

Prospective talents can also join Maybank via the Maybank Internship Program that provides opportunities to talented undergraduates to gain hands-on working experience and acquire skills to increase their graduate employability. A high percentage of interns enrolled for this program have been absorbed into permanent employment with the Bank.

Our multi-channel recruitment platforms such as the award winning innovative business case competition, Maybank GO Ahead Challenge (MGAC), have been effective platforms in drawing top talents in Cambodia to grow their career with Maybank. Maybank continues to trailblaze in the student competition arena with the offer of a one-of-a-kind challenge experience designed to excite, stretch and grow participants.

The 3rd edition of MGAC in 2014 delivered on its Bigger, Better and Bolder promise. Over 400 applications were received within a short 6-week application window, a 2-fold increase over 2013 and commendable 198% increase over 2012. Cambodia young talents participated alongside talents from participating countries that had increased from 10 in 2013 to 20 in 2014 – a great testimony of our Group globalisation efforts. Applications came from over 20 nationalities from the ASEAN region, US, UK, China and Hong Kong, Algeria, Spain, Mauritius, Maldives and Italy. The Group also received applications from countries like Russia, US, Kazakhstan and Myanmar for the first time.

For MGAC 2014, the Grand Finals were held in two cities, Kuala Lumpur and Jakarta, for Challengers to experience Maybank’s regional footprint. Besides a cash prize, the winning team also had the opportunity to attend the Maybank STAR program in Shanghai, a leadership development program for the Top 50 leaders of Maybank Group to exchange ideas as well as learnings.

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Human Resource

71% of those who joined the Bank from the previous MGACs and graduated from their studies have now joined Maybank Cambodia. MGAC will continue in 2015 as a platform that links bright minds in the region with the common goal of attaining a fruitful career in regional organisations. From a nation building perspective, MGAC demonstrates Maybank’s commitment to develop home grown talents to contribute their expertise to develop the countries which Maybank has presence in.

PERFORMANCE BASED REWARDS STRATEGY

As we transform our business, our total rewards strategy is linked to our business strategy to ensure profitability of the Bank to return value to shareholders as well as attract, retain and motivate our staff to enhance their skills, performance and career growth in the Bank. Our holistic approach to our rewards structure offers both monetary and non-monetary rewards. Basic pay is benchmarked against market to remain competitive as well as a wide range of staff benefits. Benefits include medical and health and work experience benefits such as flexible work arrangements, amongst others. We reward high performance aligned to our culture of meritocracy. Performance based rewards include variable bonus and long term incentive plan (i.e. our Cash-Settled Performance-Based Employee Share Scheme).

We have multiple other platforms to boost motivation and recognise staff for exemplary performance. These include recognition for top performance via our Maybank Awards Program 2014, namely best managers, executives, non-executives, top branch, top sales functions achievers, innovation, customer service, core value champion, corporate responsibility volunteers, spot award and career development opportunities. The performance awards culminated in a celebratory Maybank Tiger Roar Workshop and Awards Night that took place in early 2015.

In 2014, we also introduced a Staff Education Assistance scheme for staff from clerical category upwards undertaking various professional and postgraduate studies on a part-time basis. This scheme provide opportunities for our talents to gain academic qualifications in line with Maybank’s philoshopy of being a learning and knowledge-based organization, enabling our talents to learn and grow with the organization. We aim to develop talents who are committed to acquire knowledge, skills and capabilities to be future leaders and/or specialists, and promote continuous professional development.

Besides staff benefits offered under the Bank’s total rewards package, we also introduced a unique Maybank Staff Welfare Fund (emulating a similar model has been successfully implemented at the Group level for more than 20 years) that renders financial assistance to staff and family members suffering from sickness, accident and losses or damage of property due to natural disasters as well as cases that are not provided for or covered under any staff scheme provided by the Bank. The establishment of this Staff Welfare Fund, which comprises of voluntary donations from our staff, with a matching contribution from the Bank, further reinforces our aspiration as an Employer of Choice. The implementation of such a Fund is a first among all the Banks in Cambodia.

LEARNING & DEVELOPMENT

We continue to deploy best-in-class learning and development programmes to nurture our employees at all levels. Our structured integrated learning framework emphasises experiential learning to help our people develop greater passion for self-learning as well as provide them with a holistic learning programme. Aligned to Maybank’s Employer Value Proposition (EVP) “GO Ahead”, staff are encouraged to take personal ownership of their development by upgrading their skills, taking on expanded responsibilities, cross-rotational roles and international assignments. The learning activities during the year were focused on enhancing knowledge and skills to increase operational efficiency and service excellence, and expand certification of staff to successfully execute their role.

During the year, we rolled out a program to enhance the credit skills and close the competency gaps of the core credit staff across the Bank. The core credit staff were placed under a credit certification programme namely the, Credit Skills Assessment (CSA) by Omega and Maybank Internal Credit Accreditation Programme (MICAP) by Group Credit & Risk Management. Over 70% of our core credit staff from across the Bank who enrolled in these program have received their Credit Certification while the remaining 30% are currently undergoing the program.

WORKPLACE & WELL-BEING

We organize activities that promote physical and emotional well-being and healthy lifestyles. Health and wellness activities are yearly initiatives to promote a healthy lifestyle among our staff. In 2014, a Maybank Sport Program was launched, consisting of a series of competition that took place throughout the year. Three sporting events (futsal, badminton and table tennis) were offered for all staff to participate, either as individuals or teams. This program was successful in promoting team spirit and relationship among our staff. One other program that benefitted our staff was the health talk by a specialist in the medical profession, organized in collaboration with DKSH.

For the first time, we also sent our futsal team to participate in the Maybank Group Sports Carnival which had over 2,000 Maybankers from across the Region competing in various outdoor games. Such event is an important platform to promote team spirit, a sense of belonging and foster unity across the Group.

THEFINANCIALS

OTHERINFORMATION



PERFORMANCE REVIEW


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MESSAGE FROMTHE TOP

Annual Report 2014


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Human Resource

With a work-life business approach, staff are more productive. In 2014, we launched a Flexible Work Arrangement policy which allows a fixed flexible schedule at the workplace. This policy empowers our staff to manage and optimize their working hours without affecting their business and personal commitments. Such support mechanism will help ensure work-life balance is attained successfully for both the Bank as well as our staff.

STAFF VOLUNTEERISM: INSPIRING MEANING & SUSTAINABILITY

The Cahaya Kasih (CK) Volunteerism Programme is Maybank’s flagship volunteer programme where staff volunteer their time and expertise to bring about positive change and difference to the communities they engage with where Maybank has presence. During the year, over 300 volunteers spent over 2,000 volunteer hours on the CK Challenge and other activities. Their passion for volunteerism is evident from their active participation in the Bank’s Cahaya Kasih Volunteerism Programmes, namely the CK Challenge sustainable initiatives and Maybank Global CR Day.

Our Global CR Day saw our Maybankers from across the world, including in Cambodia creating a visible ‘force of good’. The 5th Global CR Day 2014, themed

‘Inspiring Global Communities’, chalked milestones in terms of participation and range of initiatives undertaken across our Maybank Group. A record of 24,971 staff participated worldwide, an increase of 6.2% over 2013. Man-hours clocked also increased to 129,921 (over 92,000 in 2013).

In 2014, we continued to participate in the second cycle of the Group CK Challenge with sustainable initiatives implemented that are aligned with Maybank Foundation’s CR Pillars namely, Community Empowerment, Education, Healthy Living, Environmental Diversity and Arts & Culture. For 2014, Maybank Cambodia has focused on its long-term child sponsorship program with the People Improvement Organisation. We also launched the very first “Maybank One Wish, Enriching Many Lives” program in early 2015. Our commitment in driving CR and employee volunteerism earned us the Maybank Group Best CR Educational Initiative Award for 2014.

DIVERSITY, INCLUSIVITY & GENDER POLICY

As a regional organisation with staff of over 30 nationalities, we value diversity and differences and tap on them for experience and creativity to give us a broader range of competence, skills and experiences to enhance our capabilities to achieve business results. Our Diversity and Inclusion Policy governs all aspects of employment practices and activities, ensuring there is no discrimination or harassment, and is based on the rule of meritocracy. The principles of this policy are embedded in our HR strategy, policies and practices from recruitment to training, rewards and compensation to promotion, resignation, training, wellness and recreational activities and corporate responsibility initiatives amongst others as reported in this section. The policy is also practiced in our business relationship with all stakeholders.

We continue to advance our women agenda year-on-year to enable women to accelerate their development and enhance performance while successfully balancing the demands of career and personal life. Apart from the many programmes we have to create an enabling environment such as the flexible work arrangements.

We seek to empower our workforce with the knowledge and

skills needed…

‘The Class of 2011’by Terence John Ryman TerryMaybank Photography Awards 2012Photographer of the Year

...to ensure our performance is driven by continuous innovation.

PERFORMANCE REVIEW


Financial Review 48

Retail Financial Services / Payment Business 50Corporate & Transaction Banking / Business Banking 52Business Operations Support / Credit Admin & Loan Management 54Corporate Affairs & Services 56

‘The Lone Biker’by Augusto Dela CruzMaybank Photography Awards 2013Street Photography

48

Financial Review

Maybank (Cambodia) Plc has again achieved a record year with a net profit of USD10.76 million and a Return on Equity of 14.03% despite a challenging year. During the year under review, we were faced with the challenges of seeing our lending margins under pressure, and also from higher overheads contributed mainly by the initial investments made to build-up our franchise and presence across the country.

Despite a 29.60% Year-on-Year (YoY) gross loans growth, Net Interest Income grew at a slower pace of 9.29% mainly attributable to the lending margins coming under pressure; with the Bank’s Net Interest Margin (NIM) registering a drop to 3.41% from last year’s 4.03%. We expect that lending margins will continue to remain under pressure on the back of aggressive lending growth amongst the financial institutions.

Taking cognisant of the loans market conditions, we have placed focus on our fee based income contributions. As a result, the Bank’s Net Fee & Commission Income grew significantly by 24.17%; contributed by higher service charges and trade finance income.

During the year, Overhead expenses increased by 12.49% YoY outpacing the growth of Net Operating Income of 11.33% YoY. Higher overhead expenses came mainly from our network expansion plan and capacity/infrastructure building post-incorporation of the Bank. We have initiated, and will continue to drive productivity improvements and cost management to ensure that we manage our overheads growth in a comfortable range vis-à-vis our net operating income. As a result, Cost-to-Income Ratio grew marginally to 47.13% when compared to last year’s 46.64%.

Loans growth led by preservation of asset quality

A better loans recovery effort contributed to improved provision for loans loss which registered a net reversal of provision of USD347,114 and a bad debt recovery of USD534,232. As stringent controls are in place to ensure preservation of asset quality, our asset quality continued to improve with NPL Ratio registering a drop to 2.36% when compared to last year’s 3.18%.

Profit & Loss Summary (in USD) FY2014 FY2013 YoY

Net Interest Income 20,338,532 18,608,861 9.29%

Net fee & Commission Income 3,661,655 2,948,946 24.17%

Net operating income 24,000,187 21,557,807 11.33%

Overhead expenses 11,311,497 10,055,627 12.49%

(Reversal of) Provision for loan loss (347,114) 413,787 (183.89%)

Recovery from loan loss 534,242 669,274 (20.18%)

Profit before tax 13,570,046 11,757,667 15.41%

Net profit 10,756,855 9,779,510 9.99%

Balance Sheet Highlights (in USD) FY2014 FY2013 YoY

Total Asset 596,861,425 461,578,371 29.31%

Gross Loans and Advances 352,622,549 272,084,107 29.60%

Net Loans and Advances 342,259,406 261,429,845 30.92%

Non-Performing Loans 8,316,208 8,654,711 (3.91%)

Customer Deposit 361,059,275 296,683,606 21.70%

Net Loan to Asset Ratio 57.34% 56.64% 0.70%

NPL to total loan ratio 2.36% 3.18% (0.82%)

Share Capital 50,000,000 50,000,000 0.00%

LIONGKHAI SIM Head, Finance & Strategy

REVIEW OF FY2014

LEADERSHIP &PROFILE



MESSAGE FROMTHE TOP

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“ ”Maybank (Cambodia) Plc. has again achieved a record year with a net profit of USD10.76 million and a Return on Equity of 14.0% despite a challenging year. These solid results are testament to our strong franchise and our strategy of keeping focused on delivering on our Group regional strategy and growth of our business whilst managing our efficiency and capital position.

Financial Review

KEY RATIO INDICATORS FY2014 FY2013

Net Interest Margin (%) 3.41% 4.03%

Return on Equity (%) 14.03% 14.84%

Return on Asset (%) 1.80% 2.12%

Fee to Income Ratio (%) 15.26% 13.68%

Cost to Income Ratio (%) 47.13% 46.64%

Loan-to-Deposit Ratio (%) 97.66% 91.71%

Asset Quality

NPL Ratio (%) 2.36% 3.18%

Capital Adequacy

Solvency Ratio 18.99% 21.98%

The Bank’s Total Assets grew by 29.31% to USD596.86 million as at 31 December 2014; mainly contributed by higher Gross Loans and Advances which registered a growth of 29.60% YoY to USD352.62 million.

Deposit growth supported by larger footprint and better brand visibility

Customers’ Deposits grew by 21.70% to USD361.06 million as we continued to capitalise on our larger footprints (branch network, ATM and Internet Banking) and better brand visibility. The growth in customers’ deposits came from both CASA and fixed deposits; growing by USD34.51 million and USD29.86 million respectively. The banking sector also saw increased competition for deposits funding amongst the financial institutions. The higher competition has resulted in our CASA ratio deteriorated slightly to 57.49% (vs 58.33% in FY2013), and registering a higher Loans-to-Deposits ratio to 97.66% from last year’s 91.71%.

Capital adequacy remained satisfactory

The key measure of capital adequacy is the Solvency Ratio which is based on Net Worth to aggregate credit risk exposure of not less than 15% as per regulatory requirement. As at 31 December 2014, our Solvency Ratio remained adequately capitalized at 18.99%. We will seek to maintain an adequate level of capital to support the underlying risk of the business, to optimize growth and to withstand capital demands.

Improved asset quality

Our asset quality continued to improve with NPL ratio standing at 2.36% when compared to 3.18% in 2013.

2015 OUTLOOK

Amidst the continued tougher lending and funding environment, interest margin is expected to be under continuing pressure as banks continue with their aggressive lending assets growth. We will continue to seek ways to diversify and add more contribution from fee based income component, by leveraging on our new products offering, and from our cross border presence across the ASEAN region.

As with FY2014, we intend to continue driving productivity improvements and cost management to ensure that we manage our overheads growth in a comfortable range vis-à-vis our net operating income.

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Retail Financial Services /Payment Business

SOUMONIVEARKHead, Retail Financial Services

2015 OUTLOOK

We are optimistic about our capabilities to capitalize on opportunities arising from the anticipated steady economic growth ranging from 7.2% to7.5%. Despite an increasingly challenging market with a high number of players in the banking system, we remain confident of growing our top line, targeting new opportunities and leveraging new channels, particularly at the digital front. We aim to further strengthen our loans and deposits portfolio and to accelerate our fee income growth engine. With our emphasis to enhance our sales force and digital banking capabilities, our primary focus will be on improving profitability, productivity, product development, system capability, processes, cost and risk management. With our regional strength, we will also be able to leverage on our regional capabilities to offer cross border banking solutions. We are well positioned to harness the synergies across the region to bring our customers greater connectivity and seamless financial solutions. We are confident of unleashing the full potential of our enhanced business model to achieve business uplift and meet the growing demand for fast, efficient and convenient service from our customers.

OVERVIEW

Retail Financial Services and Payment Business are newly set up to serve the Consumer and Retail SME (small retailers) customer segments as well manage the Bank’s distribution channels. Previously, these roles were embedded under the Consumer Financial Services and Channel Management departments. We aim to bring to market differentiated value propositions through our distribution footprint, with increasing emphasis through digital banking. In pursuit of our 2015 aspiration, our efforts have in recent years been focused on laying the groundwork and infrastructure. We are now well positioned to unleash untapped potential within our business segments and seize opportunities presented within a rapidly changing banking landscape in Cambodia.

Our Priorities • Strengthenloansanddepositsportfolio

• Acceleratefeeincomegrowthengine

• Enhancesaleforces

• Executedigitalbankingcapabilities

• Offercrossborderbankingsolutionsbyleveragingon regional capabilities

2015 2014Performance Highlights• Opened5newbranchesand6newoff-siteATMs,bringingtotalfootprint to21branchesand37ATMs

• LaunchedMaybankPremierWealth

• Depositsgrewby21.70%fromUSD297milliontoUSD361million in FY2014

• RolledoutenhancedMaybank2uwithnewfeatures

LEADERSHIP&PROFILE

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Retail Financial Services /Payment Business

SEANTHORNINNHead, Payment Business

KEY ACHIEVEMENTS IN 2014

PHYSICAL CHANNELS

Wecontinuedwithournetworkexpansionjourneywiththeopeningofanother5new branches in 2014, bringing our footprint to 21 branches, located across the country with 13 branches in the Phnom Penh city and 8 branches in key provincial towns.WehavealsoexpandedourATMnetworkwiththeadditionof6newoff-siteATMs,bringingtoatotalof37on-siteandoff-siteATMsasatendof2014.Theexpansionofourfootprintattheselocationswerecarefullyselectedtoservetheneedsofourcustomers.OurOuRuessei,TakeoandSuongBranchesareexpectedtoservetradersandentrepreneursalikebyofferingquickandeasydailyover-the-countertransactions,ATMservicesaswellasbankingproductsandservicesforlonger-termneedslikeloansandfinancing,allwithinaconvenientdistancetotheir businesses. Whilst our BKK1 Branch, located in the prime neighbourhood of BKK1 caters to the affluent segment through personalized and comprehensive financialsolutions.Movingforward,aswepursuethenextlevelincustomerserviceexcellence,wewillcontinuetoimprovethroughoperationalexcellenceandfocuson customer engagement to deliver improved service and convenience through our distribution network.

HIGH NET WORTH AND AFFLUENT BANKING

TheopeningoftheBKK1BranchalsoshowcasedthelaunchofthefirstMaybankPremierWealthLoungewhichoffersanewbrandedsegmentofferingaimedtoprovideadifferentiatedbankingexperiencefocusingonapartnershipinwhichthecustomersarethehighestpriority.Throughthisproposition,weaimtoprovideMaybank Premier Wealth customers personalized and comprehensive financial solutions based on our multitude of regional and local insights to suit customers’ unique needs, as well as preferential treatment in service, perks and rewards. Moving forward, we will tap deeper into the potential of Cambodia’s emerging middle class and high income household and further strengthen our wealth management platform to better serve this segment.

DEPOSITS

Wecontinuedtoregisterhealthygrowthin2014,yearonyear,fromUSD297millionasatend2013toUSD361millionend2014or21.70%growth.Ourportfoliogrowth was partly driven by initiatives to attract funds through deposit campaigns

offeringexcitingtravelswithinandoutsideofCambodia.The“TravelCambodia”campaign promotes local tourism and bridges travel dreams with growing one’s savings,whiletheChildrenAccountpromotionencouragedchildrenandparentsaliketoenjoylifefilledwithimaginationandaspirations,winningtoysanddreamholidayswhilesavingforthefutureofthechildren.FeaturingexclusivedestinationsinCambodia,Malaysia(LegolandMalaysiaResort)andSingapore(ResortsWorldSentosa,includingtheUniversalStudiosSingapore),bothcampaignsenjoyedasuccessful run between May and December 2014, with a surge in participation within one month and significant deposit increase till the end of 2014.

CARDS & MERCHANT ACQUIRING

Webeginourjourneytoexpandourportfoliotoincludecardandmerchantacquiring business in 2014. During the year, efforts commenced to put in place all thenecessaryinfrastructureandprocesses,leveragingontheGroup’sRegionalCardsinitiativeandAcquiringRegionalProgram.Withthegroundworklargelyplacedin2014,wearesettolaunchtheMaybankVisaDebitCardaswellasAMEXMerchantAcquiringasourtwonewlinesofbusinessinearly2015.

DIGITAL CHANNELS

Duringtheyear,ourMaybank2ucontinuedtoexperiencepositivegrowthinboth the number of transactions and transaction value, with both doubling the performanceintheprecedingyear.Aswecontinuetomoveforwardwithafocusoninnovation, an initiative to roll out an enhanced Maybank2u with new features such ascard-lesswithdrawal,interbankandoverseafundtransfer,recurringbillpaymentandtheall-newMaybank2umobileapphadalsocommenced.Movingforward,digitalbankingwillbeourareaofemphasis.Variousinitiativesareinthepipeline,leveraging on our regional platforms, which will enhance our value proposition

RETAIL SME BANKING

We began the transformation of our with Retail SME (small retailers) business portfolio with initiatives that enhanced our loans machinery and risk management capability. Policies and processes were successfully streamlined, including the rollout of simplified loan templates to improve turnaround time. For 2015, we will ride on our growth momentum coupled with the potential of this market segment and move forward with a focus to help our local Retail SMEs (small retailers) grow their business.

THEFINANCIALS

OTHERINFORMATION

CORPORATEGOVERNANCE&ACCOUNTABILITY

BUSINESSSECTORREVIEW

PERFORMANCEREVIEW

MILESTONES&ACHIEVEMENTS


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Corporate & Transaction Banking /Business Banking

CHOY WAI KWONGHead,Corporate&TransactionBanking

Our Priorities • CapturingtheregionaltradeflowswithinIndochina

• LaunchofRegionalCashManagementSystem

• Deepenandstrengthenrelationshipwithexistinghighvalueclientsto expandmarketreach

• Provideend-to-endbusinessandfinancingsolutionbyleveragingon regional presence

2015 2014Performance Highlights• Deepenedmarketreachwithkeyclients

• Offeredpersonalizedapproachinprovidingfinancialbusinesssolutions

• Establishedrelationshipwithnewtradingpartnersregionally

OVERVIEW

Corporate&TransactionBankingandBusinessBankingcoverstheCorporate,CommercialandSMEbusinesssegmentsaswellasTransactionBankingbusinessforMaybankCambodia.ThiscoversbusinessenterpriseswithreportedannualturnoverofUSD3.0millionandaboveinvariouskeyproductivesectorsinCambodia.Thisincludeslocalfamily-runbusinesses,emerginglocalcorporates,regionalandmulti-nationalcorporationswithmarketreachacrosstheglobe.

Corporate&TransactionBankingandBusinessBankingprovidesawiderangeoffinancingandbusinesssolutionstoourclientshereinCambodiaandfromMaybankGrouparoundtheworld.OurcustomercentricbusinessmodelisanchoredonaClientCoverageteambeingthekeypointofcontactforallnewclientsandaClientRelationsteamtogrowandmanageourexistingbusinessportfolio.

Ourcommitmenttobuildinglongterm,trustedandsustainablerelationshipswithourclientsisanintegralpartofourrelationshipapproach.Wecombinethiswithourlocalmarket insights and regional capabilities to support our clients’ business needs across our geographic footprint.

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Corporate&TransactionBanking/Business Banking

SOKLENGHead, Business Banking

2015 OUTLOOK

OurstrategyistodriverevenuegrowthfromallbusinesssegmentsinCambodiafromlocalfamily-runbusinessesthroughmerginglocalcorporate,localcorporatesandmajorregionalplayersandmultinationalcorporations.OurpriorityisforMaybank Cambodia to be the Bank of first priority for our clients and business partners in Cambodia and in the region when it comes to providing financial business solutions specifically tailored for their needs.

OurPrioritiesin2015willincludethefollowing:

• CapturingtheregionaltradeflowswithinIndochinaregion,Malaysia,Singapore and China• LaunchofourRegionalCashManagementSystem• Deepenandstrengthenrelationshipwithexistinghighvalueclients• Partnerwithexistingclientsinexpandingtheirmarketreachoutsideof CambodiatoincreasetheacceptanceofCambodianproductsinmajorexport marketsliketheEuropeanUnion,ASEANandChina.• Establishrelationshipwithmarketleadersandindustrycaptainsoftargeted productive industries/sectors in Cambodia• LeverageonourregionalpresencetosecurenewbusinessfortheBankfor corporate,commercialandalsoconsumersegmentsandforTransactionBanking products especially Cash Management.• Provideoverallend-to-endbusinessandfinancingsolutionsforMaybankclients with regional presence where Maybank is present.• DevelopnewbusinesssolutionsforourCambodianclientswithourbusiness partners from various parts of the world, namely Malaysia, Singapore, Japan and France.

ThebankingenvironmentinCambodiaremainscompetitivewithatotalof36commercialbanksinCambodia.Strengtheningrelationshipswithexistingclientsremainsamajorfactorinthiscompetitiveenvironmentwhilepursuingnewbusinessfromtargetedmajorclients.Housekeepingandvigilantreviewofourbusinessportfolio are also key factors to ensure a healthy business portfolio for Maybank Cambodia.Ourprioritiesfor2015willbeourkeysuccessfactorstodeliverourstrategic initiatives as planned and in line with our long term goal to be the Bank of first choice and business partner to our valued clients in Cambodia and for Maybank Cambodiatobetheproviderofinnovativeandrelevantend-to-endfinancialsolutions to our clients.

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PERFORMANCEREVIEW




In2014,wecontinuetoexpandanddeepenourmarketreachinCambodiawithkeynewclientsandexistingclientstostrengthenourpresenceinCambodiaasamajorregionalbankwith21branchesthroughoutCambodiatoservetheneedsofour clients and to provide a personalized approach in providing financial business solutions.

OurTradeFinanceteamexpandedourreachregionallybysuccessfullyestablishingrelationshipswithmajortradingpartnersinVietnam,Thailand,SingaporeandMalaysiawithafullsuiteoftradefinanceproductsandpackages.Ourstrategyistodeepenourwalletsharewithmajorestablishedplayersintheregionbycapturingtheirend-to-endbusinesscycleandforMaybankCambodiatobetheirfirstprioritywhen it comes to providing financial business solutions specifically tailored for their needs.

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Business Operations Support / Credit Administration & Loan Management

KHOOENG HOEHead,BusinessOperationsSupport

MARTINKHEWHead, Support Services

OVERVIEW

Thesupportfunctions,includingBusinessOperationsSupportandCreditAdministration&LoanManagementisthefoundationallayerintheBank.BusinessOperationsSupportconsistedoftheunitsformerlyunderSupportServices,namelyCentralizedOperations,InformationTechnologyandProperty&SecurityandtheadditionofCardandBranchOperations.Itisfocusedonprovidingbestin-classservicestoourinternalcustomersandprovidingdifferentiatedplatformsforourexternalcustomers.

CentralizedOperationsistheunitthatensurefinancialtransactionsareprocessedswiftlyinasecure,standardizedandreliableenvironmentviaSWIFTlinkedwithmorethan9,000financialinstitutionsin209countries.ITprovidesandenhancesInformationTechnologyplatformsthatwouldenableourbusinesspartnerstodeployproductsandservicestothecustomers.Property&Securityfocusesoncreatingaconduciveandsafeworkingenvironmentforstaffaswellasourcustomers.CardandBranchOperationsmanagesallthebackofficeoperationsofourcardandmerchantacquiringbusinessaswellasourbranches.

TheCreditAdministration&LoanManagementunitistoensureproperdocumentationofloansandadvancespriortoreleaseoffundstoborrowerswhiletheLoanManagement unit is to ensure close management of loan repayments as well as recovery of bad and doubtful loans.

Our Priorities • Improvestaffknowledgeandskillsaswellasproductivity

• AcceleratetheadoptionofregionalcapabilitiesforCambodiaoperations

• EnhanceInformationTvechnologyplatformandprovidedifferentiated capabilities

• Streamlineoperationsandinstitutionalizeoperationaland serviceexcellence

2015 2014Performance Highlights• RolloutofmyHR2uhumanresourcemanagementsystem

• Enhancementofcorebankingsystem

• Rolloutof5newbranchesand6newoff-siteATMs

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MESSAGEFROMTHETOP

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MARTINKHEWHead, Support Services

2015 OUTLOOK

Therevisedorganisationstructureinearly2015andtheestablishmentofBusinessOperationsSupportasadedicatedsupportdepartmentisastrategytoacceleratetheBank’stransformationjourney.BusinessOperationsSupportwillfocusonalloperationalactivitiesandinstituteoperationalexcellenceacrosstheBank.TheemphasiswillbetostreamlineouroperationsacrosstheBankwithanobjectivetoimproveourcustomers’experienceandtheBank’sprofitability.Wewillneedtoprovide differentiated capabilities through innovative solutions with agility and speed to market.

Thekeyprioritiesfor2015willbetocontinueourpursuitforimprovedknowledgeand skills as well as productivity in all areas of operations. We will concentrate our efforts on developing a highly competent team, improving our business operations support systems and increasing efficiency in our business processes. Strengthening risk management awareness and embedding the risk culture will also be a priority.

Ourstrategicprioritiesmovingforwardwillneedtofocusonacceleratingtheadoption of various regional capabilities for the local Cambodia operations and drivingserviceexcellencetomeetourcustomers’expectations.WewillprovideandenhanceInformationTechnologyplatformsthatwillenableourbusinesspartnerstoquicklydeployinnovativeandvalue-addedproductsandservicestotheCambodiamarket. With this in place, business can achieve their aspirations via technology enablement.

2015willbethefinalmilestoneofourStrategicInformationTechnology(IT)Roadmap2013-2015,afterwhichareviewwillbedonetoestablishanewroadmapmoving forward.

Some of the key initiatives that we plan to drive through 2015 include completing theITenablementforanumberofbusinessinitiativeswhichhadkick-startedsince2014,namelytherolloutoftheVisaDebitcard,AmericanExpress(AMEX)PointofSales(POS)acquiring,Maybank2uInternetBankingenhancementandRegionalCash Management (RCMS).

BusinessOperationsSupport/CreditAdministration&LoanManagement


In 2014, through strong collaboration and partnership with our businesses, we wereabletorolloutkeyITinitiativesandprojectsthatbroughtenhancementstoour business operations and banking products, build new systems and platforms to support our customers’ needs with new banking products and new distribution channels,aswellasbeganthejourneytoprovidedigitalcapabilitiestoourcustomers.

RolloutofmyHR2u:• InMarch2014,theregionalHumanResourcesystem,MyHR2u,was extendedtoMaybank(Cambodia)Plc.,andprovidedconvenienceand accessibility to employees to submit HR requests online anywhere anytime.

EnhancementofCoreBankingsystem:• IncompliancewiththeForeignAccountTaxComplianceAct(FATCA) requirements, enhancement on Core Banking system was successfully implemented in July 2014.• TosupporttheimplementationofthenewPremierWealthoffering introducedtothepublicbeginningAugust2014.

RolloutofNewBranchesandOff-SiteATMs• Supportedanddeployedtherolloutof5newbranchesand6newoff-site ATMsduringthelasttwoquartersof2014.

AsestablishedinourStrategicInformationTechnology(IT)Roadmap2013-2015,wecontinued to invest in people and technology to roll out competitive and innovative financial solutions and product offerings to our stakeholders and customers, assisting the Bank to achieve its aspirations in leveraging on technology to sustain the growth momentum.

ThecapabilityofourCreditAdministrationteamhasalsobeenexpandedbytakingoversomeexistingactivitiesfrombranches.Themajortask,whichwasmovedfrombranchestoCreditAdministration,isthepreparationandissuanceofLettersofOffers,whichallowbranchestofocusoncustomersalesandservice.

Ourmainfocushasbeentosupportourbusinessesinachievingtheirgrowthaspirations with fast advancement of technology, improved turnaround time ofoperationsandserviceexcellenceinacostefficientmanner.Ouraspirationis to consistently provide upward momentum as the Bank’s enabler to achieve asustainablecompetitiveadvantageviaTechnology,OperationsandServiceExcellence.

CHOUTEONG BOONHead,CreditAdministration&LoanManagement

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Corporate Affairs & Services

QAZREEN CHAN ABDULLAHHead,CorporateAffairs&Services

Our Priorities • Expandtherolloutofin-houselegaldocumentation

• Emphasisontheuseofdigitalandsocialmarketingchannels

• StandardizeservicestandardsandalignframeworkwiththeGroup

2015 2014Performance Highlights• Implementationofthefirstphaseofin-houselegaldocumentation

• RolloutofvariousmarketingcommunicationsandPRprograms

• WontheMaybankGroupBestCREducationalInitiative2014

• LaunchedMaybankVocationalSponsorshipProgramandMaybank “OneWish,EnrichingManyLives”Program

• RolloutofServiceQualityprogramstoenhanceproductknowledgeand reinforce service standards

2015 OUTLOOK

WiththesuccessfulrolloutoftheIn-houseLegalDocumentationinitiativein2014,wewillbelookingintofurtherexpansionoftheinitiativetodrivefurtherimprovementsin the Bank’s fee based income. We will also continue to pursue improvements in productivity and processes which will result in enhanced customer service and lower operational cost.

Tosupportourbusinesspartnersinpursuitofourbusinessaspirations,wewillbeguidedbyanintegratedmarketingcommunicationstrategywhichwillcontainmorefocused tactical programs, strong emphasis on the use of digital and social marketing channels, as well as increasing the use of owned platform to optimize cost.

Fromtheservicefront,wewillcontinuetointensifyourpositionasatrulycustomercentricorganisation.Wehelptodriveconsistentbestinclassexperiencetoallcustomers who come in contact with the Maybank brand. We aim to convert them into brand advocates through a range of customer centric campaigns and initiatives for theyearahead.Weareintensifyingourstrategicfocusonthetransformationofourpeople,processesandpolicies.Thiswillensurethatwearealignedwithourcustomerneedsthatweaimtodeliverviaquickwinsandreducedoperatingcosts.Ourfocusfor2015includesstandardisationofourservicestandardsandenhancementframeworkswiththeGrouptofurtherstrengthenourregionalpresence.

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AnnualReport2014

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“ ”2014 has seen us continuing to create value to the Bank and playing our role as a business partner to support the Bank’s aspirations. From the aspects of legal and governance to providing brand and marketing communications support as well as establishing a strong service foundation and facilitating our corporate responsibility agenda, we will continue to be dynamic in improving our capabilities in line with impending trends.


CORPORATE & LEGAL SERVICES

2014 saw the achievement of a new milestone for the Bank with the implementationoftheIn-houseLegalDocumentationsupportingtheretailloandocumentationforallbranchesinthePhnomPenhcity.ThisispartoftheBank’s initiative to pursue the streamlining of processes and structure to ensure thattheultimateoutcomeleadstogreaterproductivityandcostefficiency.TheemphasiswillincludetheimprovementofourcustomerexperienceandtheBank’sprofitability.

CORPORATE COMMUNICATIONS & BRAND MANAGEMENT

OurtasktoHumaniseFinancialServicesdrivesthewaywedeliverourservices,createsanenvironmentwherestaffcanexcel,andreinforcesourcorevalues.Ourvalues are the essential guiding principles for our hearts and minds, define what we believeinandwhatwestandfor.Ourbranddriversincludethefollowing:

1. DoTheRightThing2. DeliveryNotJustPromise3. BeingAtTheHeartOfTheCommunity4. FlexibilityWithinFramework5. BuildingSustainableLongTermRelationship

InlinewiththeGroup’sinitiativetodrivebrandadvocacyacrosstheGroup,inductionprogramswereimplementedtoexplaintheimportanceofthebrandtoourMaybankers,todemonstratehowtheirdailylifeshouldreflecttheelementsof“HumanisingFinancialServices”andhelpidentifyinwhatwaythiscanbeappliedintheareaofthebusinessthattheyarein.Thise-learninginitiativewasalsoincorporated in our new employee induction program.

Throughouttheyear,wehadalsocloselycollaboratedwithourbusinesspartnersto roll out a number of marketing communications and PR programs to support a variety of business initiatives, ranging from the opening of five branches, launch of PremierWealth,TravelCambodiaCASAcampaign,LegolandMalaysiaResortandUniversalStudiosSingaporeChildrenAccountcampaign,MaybankRewardsDayaswell as prize giving for product promotion campaigns that concluded in the early part of the year.

Asaresponsiblecorporatecitizen,wecontinuedtoreachouttothelessfortunatewithin our communities through various acts of philanthropy and empowerment activities.WeenteredourthirdyearofcollaborationwithourNGOpartner,thePeopleImprovementOrganisationwithour“MaybankChildSponsorship:AWayOutoftheDump”initiative,andexpandedfurthertolaunchthe“MaybankVocationalSponsorship”program.Withintheyear,wehavealsolaunchedthe“MaybankOneWish,EnrichingManyLives”program,reachingoutdirectlytocommunity members in Cambodia who are faced with basic life difficulties or challenges.

AfullreportonCorporateResponsibilityiscontainedinpages78–83ofthis AnnualReport.

SERVICE MANAGEMENT

DrivenbytheGroupServiceQualityManagement’sfocustostreamlinecustomerservicestrategiesandinitiativesacrosstheGroup,weembarkedonafewtargetedservice improvement programs aimed to drive consistency and deliver on the brand promise we make to our customers.

Toreinforceourservicecommitmenttoourinternalandexternalcustomers,theMaybank Service Credo, a service commitment to passionately create consistent customerdelightwaslaunchedinthesecondhalfoftheyear.Inconjunctionwiththelaunch,twoServiceQualityprogramswerealsorolledoutasfollows:

• “KnowYourCustomer,KnowYourProduct”ProductKnowledgeCompetition, aimed to elevate our frontliners’ knowledge on Maybank’s products and services.• “GUESTChallenge”,asimplereinforcementofMaybank’sFiveStepsofService involving instant feedback from customers.

Anation-widecascadetookplacesubsequenttothelaunch,whichraisedmuchenthusiasm and commitment from all staff to bring to life the Maybank Service Credo.

RECOGNITION

In 2014, Maybank Cambodia was awarded the Best CR (Educational) Initiative in theMaybankGroupAwardsProgram2014.Thisbearstestimonytothesustainableinitiatives and employee volunteerism programs that we have put in place to bring about positive change and difference to the communities we serve.

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PERFORMANCEREVIEW



We are driven to be as productive and innovative

as we can…

‘Traditional clay pot production‘by Mohamad Danial Bin Mohamad SaadMaybank Photography Awards 2012Photographer of the Year

...yet understand the need to listen to the voice of the community and adopt positive and effective changes in the way we work.

CORPORATE GOVERNANCE & ACCOUNTABILITYStatement on Corporate Governance 60Statement on Risk Management and Internal Control 67Audit Committee Report 69Risk Management 72Compliance 77Corporate Responsibility 78

THE FINANCIALSReport of the Board of Directors 91Audited Financial Statements 92Independent Auditors’ Report 93Balance Sheet 94Income Statement 95Statement of Changes in Equity 96Statement of Cash Flows 97Notes to the Financial Statements 98

OTHER INFORMATIONCorporate Information 119Group Directory 120Branch Directory 123

MILESTONES & ACHIEVEMENTSMaybank in the News 84Event Highlights 2014 88

‘Busy time at the traditional market’by Basuki Roesman MangkusudarmoMaybank Photography Awards 2013Culture and Heritage Photography

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Annual Report 2014 OTHERINFORMATION

Statement on Corporate Governance

INTRODUCTION

The Maybank (Cambodia) Plc. Board believes that good corporate governance should not be a mere statement of compliance, and is committed to achieving the highest standards of business integrity, ethics and professionalism across all of the Bank’s activities. With this commitment and in line with the Group’s regional aspirations in humanising financial services, the Board aims to enhance business prosperity and foster a culture with ethical values, whilst continuously delivering and sustaining the Bank’s value propositions for the benefit of its stakeholders locally and internationally.

The Board’s key and overriding approach in this regard is to ensure that the right executive leadership, strategy and internal controls for risk management are well in place. The Board also continuously reviews its governance model to ensure its relevance, effectiveness and ability to meet the challenges of the future.

This Corporate Governance Statement seeks to provide vital insights into the corporate governance practices of the Group to the investors. The Maybank (Cambodia) Plc.’s corporate governance model adopts the following requirements and guidelines:-

1. National Bank of Cambodia’s (“NBC”) Prakas on Governance in Banks and Financial Institutions

2. Maybank Group’s Corporate Governance Model

Maybank (Cambodia) Plc.’s corporate governance model is ultimately designed to preserve and enhance shareholders’ value through a system of rules, practices and processes that balances the interests of the Bank’s stakeholders. Apart from complying with the stated local requirements and guidelines, the Bank also monitors developments in corporate governance standards of leading and reputable organisations and institutions in the region and around the world to ensure that its own highest standards of corporate governance are upheld.

The chart below illustrates the Corporate Governance Model adopted by Maybank (Cambodia) Plc.

Shareholders

Board

CEO

Executive CommitteeManagement

Framework

Corporate Secretary

ManagementCommittees

Policies

VisionMissionValues

Management Standards

Operating Standards

Level ofAuthorities

Delegation Accountability

AuditCommittee

IndependentAssurance

ExternalAuditors

InternalAuditors

Compliance

RiskManagement

Committee

Risk

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THE BOARD OF DIRECTORS

Board Charter

In recognition that robust and well thought-out corporate governance practices are essential to safeguard the interests of the Bank’s stakeholders, the Maybank (Cambodia) Plc. Board is guided by the Board Manual (Manual) in respect of the Board’s role, powers, duties and functions.

The Manual not only reflects the current best practices and the applicable rules and regulations, it also outlines processes and procedures to ensure the Bank’s board and their committees’ effectiveness and efficiency. It is a dynamic document to be updated from time to time to reflect changes to the Bank’s policies, procedures and processes as well as amended relevant rules and regulations.

The Manual comprises, amongst others, well defined terms of reference as well as authority limits for the Board and its committees, and the various relevant internal policies.

The chapters covered under the Manual are as follows:-

1. Bank’s standard of business conduct;

2. Directors’ duties and obligations;

3. Appointment and resignation of Directors;

4. Governance structure;

5. Board and board committee proceedings;

6. Remuneration and benefits for Directors;

7. Supply of information to the Board;

8. Training and induction programmes;

9. Annual Board assessment;

10. Conflict of interest and related party transactions; and

11. Other key policies of Maybank and the Bank.

Roles and Responsibilities of the Board

The business and affairs of Maybank (Cambodia) Plc. are managed under the direction and oversight of the Maybank (Cambodia) Plc. Board, which also has the responsibility to periodically review and approve the overall strategies, business, organisation and significant policies of the Bank.

The Board also sets the Bank’s core values, adopts proper standards to ensure that Maybank (Cambodia) Plc. operates with integrity, and complies with the relevant rules and regulations.

The Board has a formal schedule of matters reserved for its decision which include, amongst others, the following:-

• ReviewingandapprovingthestrategiesandbusinessplansforMaybank(Cambodia)Plc. to ensure that they are aligned with the Bank’s Vision and Mission;

• IdentifyingandmanagingprincipalrisksaffectingtheBankincludingestablishingand approving the relevant policies for the prevention of money laundering, and anti- competitive practices;

• ReviewingtheadequacyandintegrityoftheBank’sinternalcontrolsystems;

• OverseeingtheconductandtheperformanceoftheBank’sbusinesses;

• ReviewingsuccessionplanningandtalentmanagementplansfortheBank,andapproving the appointment and compensation of senior management staff;

• Approvingnewpoliciespertainingtoboardroomdiversity,staffsalaryandbenefits;

• Approvingchangestothecorporateorganisationstructure;

• ApprovingtheappointmentofDirectorsandDirectors’emolumentsandbenefitsin accordance with relevant statutes;

• Approvingpoliciesrelatingtocorporatebranding,publicrelations,investorrelationsand shareholder communication programmes; and

• ReviewingtheBank’sstrategiesonpromotionofsustainabilityfocusingonenvironmental, social and governance (ESG) aspects

Other than as specifically reserved to the Board in the Board’s Terms of Reference, as documented in the Manual, responsibility for managing Maybank (Cambodia) Plc.’s business activities is delegated to the Chief Executive Officer (CEO) of Maybank (Cambodia) Plc., who is accountable to the Board.

Board Composition and Balance

There are currently 6 Directors on the Maybank (Cambodia) Plc. Board. Three are Independent Non-Executive Directors, three are Non-Independent Non-Executive Directors.

The present composition of the Board is in compliance with NBC’s regulations as at least two of its members are Independent Directors.

The Directors provide a wealth of knowledge, experience and skills in the key areas of accountancy, law, securities, international business operations and development, finance and risk management, amongst others. A brief profile of each member of the Board is presented on pages 32 to 35 of this Annual Report.

Diversity and Inclusiveness

The Board is committed to ensuring diversity and inclusiveness in its composition and deliberations and the Group embraces the proposition that having a diverse Board would have a positive, value-relevant impact on the Group. In this regard, the Board considers diversity from a number of different aspects, including gender, age, cultural and educational background, ethnicity, nationalities, professional experience, skills, knowledge and length of service.

Directors’ Independence and Independent Non-Executive Directors

The current Board composition, which comprises a high proportion of Non-Executive Directors, helps the Board to ensure and provide strong and effective oversight over management. Non-Executive Directors do not participate in the day-to-day management of Maybank (Cambodia) Plc. and do not engage in any business dealing or other relationships with Maybank (Cambodia) Plc. (other than in situations permitted by the applicable regulations) in order to ensure that they remain truly capable of exercising independent judgment and act in the best interests of the Bank and its shareholders. Further, the Board is satisfied and assured that no individual or group of Directors has unfettered powers of decision that could create a potential conflict of interest. Additionally, none of Maybank’s Independent Non-Executive Directors has more than a 5% equity interest in the licensed institution or in its related companies, and none of them is connected to a substantial shareholder of the licensed institution.

The Non-Executive Directors of Maybank continue to proactively engage with senior management and other relevant parties such as the external/internal auditors as well as Maybank (Cambodia) Plc.’s Compliance and Risk units, to ensure that the various concerns and issues relevant to the management and oversight of the business and operations of the Bank are properly addressed. The Board’s commitment to ensure good governance in its deliberation on key issues is evident with the scheduling of “Board Time Without Management”

The Board ensures that all Non-Executive Directors possess the following qualities:-

• Abilitytochallengetheassumptions,beliefsorviewpointsofotherswithintelligent questioning, constructive and rigorous debating, and dispassionate decision-making in the interest of Maybank;

• Willingnesstostandupanddefendtheirownviews,beliefsandopinionsfortheultimate good of Maybank; and

• AgoodunderstandingofMaybank(Cambodia)Plc.’sbusinessactivitiesinorderto appropriately provide responses to the various strategic and technical issues confronted by the Board.

Directors’ Independence Policy

The Bank’s Directors’ Independence Policy summarises Maybank (Cambodia) Plc.’s approach in determining directors’ independence. It provides a guideline for the Board in the assessment of independence of each Independent Director.

Consistent with the Bank’s Directors’ Independence Policy, the Board via the Group Nomination and Remuneration Committee (“NRC”), where applicable, assesses the independence of Independent Directors upon his/her appointment and re-appointment. The tenure of service for Independent Directors has been capped at the maximum of nine years whereby upon completion of such tenure, the Independent Director may continue to serve on the Board subject to re-designation as Non-Independent Director. In exceptional circumstances, the shareholders may decide that an Independent Director can remain beyond the cumulative term of nine years, subject to the Group NRC’s assessment (where applicable), Board’s recommendation as well as strong justification be provided to the shareholders at a general meeting. The Board noted that currently none of its independent members has reached the nine years cumulative term in Maybank.

The Group NRC undertakes the independence assessment via the Board and Peer Annual Assessment as well as Fit and Proper Assessment exercises taking into accounts the directors’ skills, experience, contributions, background, economic and family relationships, tenure of directorship and the Independent Directors’ self-declaration on their compliance with the independence criteria under the Bank’s Policy on Directors’ Independence.

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Identification of candidates

Evaluation of suitability of candidates

Meeting up with candidates

Final deliberation by Group NRC

Recommendation to Board

The Group NRC determines the ability of the Independent Director to continue bringing independent and objective judgment to the board deliberations as well as considers if there is any ground or reason that has come to the attention of the Group NRC that may affect the independence status of the Independent Directors of Maybank (Cambodia) Plc.

The Board considers that the three Independent Non-Executive Directors (NEDs), namely Mr Cheah Teik Seng, Datuk R. Karunakaran and Mr Spencer Lee meet the said independence criteria under the Bank’s Policy on Directors’ Independence.

Board Appointment Process

A formal and transparent procedure is in place vis-à-vis the appointment of new Directors to the Board, the primary responsibility of which has been delegated to the Group NRC. Such responsibilities include screening, conducting initial selection of internal and external candidates, performing requisite evaluation and assessment on the candidates’ ability to discharge their duties effectively and efficiently, prior to making recommendations to the Board for its approval. The Group NRC also ensures candidates possess the appropriate skills, core competencies, experience, integrity and time to effectively discharge his or her role as a director.

This procedure is in line with the Bank’s Fit and Proper Policy which has been in force since August 2013 which would be revised and amended from time to time to incorporate new provisions as required under the NBC Prakas on Fit and Proper Criteria. In accordance with this procedure, the Group NRC recommends to the Board suitable candidates for directorships of Maybank (Cambodia) Plc.

The Fit and Proper Policy, which sets out the attributes and qualifications required of a candidate to determine his/her suitability, include amongst others, requirements in respect of his/her management and leadership experience, which has to be at the most senior level in a reputable local or international financial services group, public corporation or professional firm/body. In relation to the candidate’s skills, expertise and background, the candidate should ideally and to the extent available, possess a diverse range of skills, including in particular, business, legal and financial expertise, professional knowledge and financial industry experience, as well as experience in regional and international markets. The Fit and Proper Policy also assists in identifying the gaps in skills in the composition of the Board.

The following aspects would be considered by the Board in making the selection, with the assistance of the Group NRC:-

1. Probity, personal integrity and reputation – the person must have key qualities such as honesty, integrity, diligence, independence of mind and fairness.

2. Competence and capability – the person must have the necessary skills, ability and commitment to carry out the role.

3. Financial integrity – the person must manage his debts or financial affairs prudently.

The Policy on the Nomination Process for the Appointment of Chairman, Director and CEO of Maybank (Cambodia) Plc. (Policy on Nomination Process) sets out a clear and transparent nomination process of the same, which involves the following five stages:-

The application for the appointment of such candidates is thereafter submitted to NBC for the requisite approval under the Prakas on Fit and Proper Regulatory Requirements for Applying Entities and Licensed Banks and Financial Institutions.

The Bank also conducts annual assessments on the suitability of the Directors to continuously occupy their strategic leadership position subsequent to the appointment process, in accordance with the Bank’s Fit and Proper Policy. The fit and proper assessment involves self-declaration by the Directors as well as independent checks on their business interests to ensure the suitability of the Directors to continue to serve as directors of Maybank.

Succession Plan

The Fit and Proper Policy which was first introduced in 2013 outlines the general limitation on the tenure of directorships for Non-Executive Directors of Maybank who have reached the age of 70 and above, and/or have served the Board for 12 years or more. Such directors may however, continue to serve the Board once the Board has evaluated and assessed their suitability. Subsequently, the Bank’s Policy on Tenure of Directorship (Tenure Policy) was recently established to incorporate both the relevant provisions on tenure of directorships as provided for in the Bank’s Fit and Proper Policy and Directors’ Independence Policy to better articulate the Bank’s policy on limiting the tenure of Non-Executive Directors on the Board of Maybank (Cambodia) Plc.

Appointments on the Board are not considered in isolation but as a component of the Board’s succession plan. In this context, the limitations on age and tenure of directorship as described in the Tenure Policy provides the Board with the opportunity to consider and reassess its succession plan periodically, not only to ensure continuity in meeting its long term goals and objectives but also to affirm that the knowledge, experience and skill sets of its members would be well suited to meet the demands of the ever changing landscape of the financial industry.

With the assistance of the Group NRC (where applicable), the curriculum vitae of prospective candidates would from time to time, be discreetly obtained from various internal and external sources (including institutions which maintain salient details on directors with financial industry background) for further review, to ensure that the Board would always have a steady pool of talent to choose from whenever there is a need to appoint additional members on the Board or otherwise, to replace a member who is retiring or resigning from the Board.

Directors’ Retirement, Re-Election and Re-Appointment

All directors of Maybank (Cambodia) Plc. are subject to re-election by the shareholders at least once every three years in accordance with Articles 27 of Maybank (Cambodia) Plc.’s Memorandum and Articles of Association. The Board’s support for a Director’s re-election is not automatic and is subject to satisfactory assessment of performance.

Mr. Cheah Teik Seng, Mr Spencer Lee and Mr. Hamirullah Boorhan, each of whom are due for re-election pursuant to Article 27 of Maybank (Cambodia) Plc.’s Memorandum and Articles of Association would be seeking re-election at the forthcoming AGM.

As evaluated and approved by the Board, all of these directors have all met the Board’s expectations and continued to perform in an exemplary manner as demonstrated by among others, their contribution to the Board’s deliberations and the Board would accordingly recommend to the shareholders their respective re-elections on the Board.

Board and Individual Director’s Effectiveness

The Group NRC follows a formal and transparent process to assess the effectiveness of individual Directors, the Board as a whole and its committees, as well as the performance of the CEO (based on his Balanced Scorecard) in respect of their respective skills and experience, pursuant to the Board and Peer Annual Assessment exercise. This is undertaken upon the completion of every financial year.

The Board and Peer Annual Assessment exercise is primarily based on answers to a detailed questionnaire prepared internally by Corporate & Legal Services of Maybank incorporating applicable best practices. The assessment questionnaire is distributed to all the respective Board members and covers topics which include, amongst others, the responsibilities of the Board in relation to strategic planning, risk management, performance management, financial reporting, audit and internal process, human capital management, corporate social responsibility, communication, corporate governance, and shareholders’ interest and value. Other areas being assessed include Board composition and size, the contribution of each and every member of the Board at meetings, the Board’s decision-making and output, information and support rendered to the Board.

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The Assessment requires actionable improvement programmes to be identified, upon review of the results of the Board and committee assessment by the Group NRC (where applicable) and the Board. Such programmes may include training needs of individual Directors. The Chairman of the Board and the Chairman of the Group NRC (where applicable) discuss with individual members on areas of performance improvement.

Having considered its composition, calibre and diversity, the Board must be satisfied that it will continue to ensure an efficient and effective conduct of deliberations. The current Board size enables the Board to discharge its function in a professional manner in consideration of the composition, breadth and complexity of the Bank’s business activities, domestically and internationally. Future changes to the Board may be made to enhance complementarity of skills and at the same time enable proper succession planning.

As ever, the Chairman will always try to ensure that the Board’s decisions are reached by consensus (and failing this, reflect the will of the majority), and any concern or dissenting view expressed by any Director on any matter deliberated at meetings of the Board, or any of its Committees, as well as the meetings’ decisions, will accordingly be addressed and duly recorded in the relevant minutes of the meeting.

Role and Responsibilities of the Chairman and the Chief Executive Officer

The roles and responsibilities of the Chairman and the CEO are separated with a clear division of responsibilities, defined, documented and approved by the Board, in line with best practices so as to ensure appropriate supervision of the Management. This distinction allows for a better understanding and distribution of jurisdictional responsibilities and accountabilities. The clear hierarchical structure with its focused approach and attendant authority limits also facilitates efficiency and expedites informed decision-making.

Chairman

Mr Cheah Teik Seng has been the Chairman of Maybank (Cambodia) Plc. since 5 April 2012.

The Chairman leads the Board and is also responsible for the effective performance of the Board. He continuously works together with the rest of the Board in setting the policy framework and strategies to align the business activities driven by the senior management with the Bank’s objectives and aspirations, and monitors its implementation, and also ensures orderly conduct and proceedings of the Board, where healthy debate on issues being deliberated is encouraged to reflect an appropriate level of scepticism and independence.

He takes the lead to ensure the appropriateness and effectiveness of the succession planning programme for the Board and senior management levels. He also promotes a healthy working relationship with the CEO and provides the necessary support and advice as appropriate. He continues to demonstrate the highest standards of corporate governance practices and ensures that these practices are regularly communicated to the stakeholders.

The CEO

Ms Cynthia Liaw Yen Lin has been appointed as the CEO of Maybank (Cambodia) Plc. on 1 March 2015.

Ms Cynthia has been delegated certain responsibilities by the Board in her capacity as CEO and is primarily accountable for overseeing the day-to-day operations to ensure the smooth and effective running of the Bank.

Furthermore, she is responsible for mapping the medium to longer term plans for Board approval, and is accountable for implementing the policies and decisions of the Board, as well as coordinating the development and implementation of business and corporate strategies, specifically by making sure that they are carried through to their desired outcomes, especially in the institution of remedial measures to address identified shortcomings. She is also responsible for developing and translating the strategies into a set of manageable goals and priorities, and setting the overall strategic policy and direction of the business operations, investment and other activities based on effective risk management controls.

The CEO ensures that the financial management practice is performed at the highest level of integrity and transparency for the benefit of the shareholders and that the business and affairs of Maybank (Cambodia) Plc. are carried out in an ethical manner and in full compliance with the relevant laws and regulations.

The CEO is also tasked with ensuring that whilst the ultimate objective is maximising total shareholder return, social and environmental factors are not neglected, and also developing and maintaining strong communication programmes and dialogues with the shareholders, investors, analysts as well as employees, and providing effective leadership to the Bank organisation. She is also responsible for ensuring high management competency as well as the emplacement of an effective management succession plan to sustain continuity of operations. The CEO also functions as the intermediary between the Board and senior management.

Board Meetings

The Board meets on quarterly basis, with additional meetings convened as and when urgent issues and/or important decisions are required to be addressed between the scheduled meetings. During the financial year ended 31 December 2014, the Board met 5 times to deliberate and consider a variety of significant matters that required its guidance and approval.

All Directors have complied with the requirement that Directors must attend at least 75% of Board meetings held in the financial year in accordance with NBC’s Prakas on Governance in Banks and Financial Institutions.

Details of attendance of each Director on the Board and respective Board Committees of Maybank during the financial year ended 31 December 2014 are as follows:-

Notes:-

* All Board and Board Committee members had met the minimum percentage required for meeting attendance.

1 Resigned as a member of the Board of Directors, ACB and RMC with effect from 1 March 2015.

Name of Directors

BoardNumber of Meetings

ACBNumber of Meetings

RMCNumber of Meetings

Held Attended % Held Attended % Held Attended %

Cheah Teik Seng 5 5 100 4 4 100 4 4 100

Spencer Lee Tien Chye 5 5 100 4 4 100 4 4 100

Datuk R. Karunakaran 5 5 100 4 4 100 4 4 100

Hamirullah Boorhan 5 5 100 4 4 100 4 4 100

Pollie Sim Sio Hoong 5 5 100 4 4 100 4 4 100

Lee Tien Poh 1 5 5 100 4 4 100 4 4 100

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Directors’ Remuneration

The Board believes that one area that the Board needs to focus on in order to remain effective in the discharge of its duties and responsibilities is the setting of a fair and comprehensive remuneration package that commensurate with the expertise, skills, responsibilities and the risks of being a director of a financial institution.

The determination of remuneration packages for Non-Executive Directors (NEDs) including the non-executive Chairman is a matter for the Board as a whole following the relevant recommendation made by the Group NRC after independent benchmarking with relevant external peers.

The component parts of remuneration of the Executive Director are structured so as to link short and long-term rewards to corporate and individual performance.

A significant portion of the Executive Director’s compensation package has been made variable in nature depending on the Bank’s performance during the year, which is determined based on the individual Key Performance Indicators and a scorecard aligned with the corporate objectives, and approved by the Board.

In line with good corporate governance, the Board has set out its intention to periodically review the NEDs remuneration for Maybank and its group of companies at least once every three years.

Quality and Supply of Information to the Board

The Board has full and unrestricted access to all information pertaining to Maybank (Cambodia) Plc.’s businesses and affairs as well as to the advice and services of the senior management of the Bank. In addition to formal Board meetings, the Chairman maintains regular contact with the CEO to discuss specific matters, and the latter assisted by the Corporate Secretary ensures that frequent and timely communication between the senior management and the Board is maintained at all times as appropriate.

The Board is regularly kept up to date on and apprised of any regulations and guidelines, as well as any amendments thereto issued by the National Bank of Cambodia and other relevant regulatory authorities.

The Annual Board Outline Agenda serves as a mechanism to highlight to the Board and relevant Board Committees as well as the senior management subject matters other than ‘routine’ for the period to facilitate better planning and for greater time effectiveness for various parties. It also gives a greater sense of discipline on the part of senior management to commit to the said outline. Concurrently, such focus allows the Board to deliberate on and contribute towards achieving a higher level of value-added discussions on such identified issues and other relevant matters.

An agenda together with appropriate papers for each agenda item to be discussed is forwarded to each Director in advance before the scheduled meeting to enable the Directors to review the papers in preparation for the meeting, and to obtain further clarification or explanation, where necessary, in order to be adequately apprised before the meeting.

Additionally, Maybank (Cambodia) Plc.’s minutes of meetings of the Board and various Board Committees incorporate the discussions of the members at the meetings in arriving at decisions and are concise and accurate. The draft minutes of the meeting are circulated to the Board for early feedback and suggestions prior to tabling at the subsequent meetings for formal confirmation.

Senior management members are invited to attend Board meetings to report on matters relating to their areas of responsibility, and also to brief and present details to the Directors on recommendations submitted for the Board’s consideration. Additional information or clarification may be required to be furnished, particularly in respect of complex and technical issues tabled to the Board. In order to ensure that board papers are of the highest quality and prepared in accordance with best practice requirements and within the expectations of the Board, Directors are given an avenue to provide feedback during each Board meeting to rate the quality of the papers and that of the session discussing the papers.

Corporate Secretary

In her function as the Corporate Secretary, the Head of Corporate Affairs & Services and Corporate Secretary is responsible for advising the Board on issues relating to corporate compliance with the relevant laws, rules, procedures and regulations affecting the Board and the Bank, as well as best practices of governance. She is also responsible for advising the Directors of their obligations and duties to disclose their interest in securities, disclosure of any conflict of interest in a transaction involving Maybank (Cambodia) Plc., prohibition on dealing in securities and restrictions on disclosure of price-sensitive information. All Directors have access to the advice and services of the Corporate Secretary.

Independent Professional Advice

Independent professional advice can be obtained by any Individual Directors, at Maybank (Cambodia) Plc.’s expense where necessary, in the furtherance of their duties in accordance with Maybank (Cambodia) Plc.’s Policy and Procedure on Access to Independent Professional

Advice, Senior Management and Corporate Secretary by Directors of Maybank (Cambodia) Plc. Copies of any reports, advice and recommendations provided by the independent professional adviser to the relevant Director would be forwarded by the said Director to the Corporate Secretary, who will, where appropriate, circulate them to other Directors to ensure that they are kept informed of pertinent issues, which may have an impact on the Bank’s interest, growth and performance.

Directors’ Training

The Board acknowledges the importance of continuing education for its Directors to ensure they are equipped with the necessary skill and knowledge to perform their functions and meet the challenges of the Board. For the year under review, the Board members have attended training programmes and workshops organised by the Maybank Group for its Directors across all the group of companies.

An induction programme for new Directors is developed and coordinated by Corporate & Legal Services to provide new Directors with the necessary information and overview to assist them in understanding the Bank’s operations and appreciating the challenges and issues the Bank faces in achieving its objectives. The programme covers subject matters, amongst others, concerning the Bank’s business and strategy, work processes and Board Committees, as well as the duties and responsibilities of Directors of licensed institutions.

The Board continues to assess the training needs of its Directors vide the Board Assessment and identify key areas of focus for training programmes.

BOARD PROFESSIONALISM

Directorships in Other Companies

Each member of the Maybank (Cambodia) Plc. Board holds not more than five directorships in public listed companies to enable the Directors to discharge their duties effectively by ensuring that their commitment, resources and time are more focused.

Whilst the Board values the experience and perspective gained by the Non-Executive Directors from their memberships on the boards of other companies, organisations, and associations, the Board Manual provides that the Non-Executive Directors must first consult the Chairman to ensure that their acceptance of such other appointments, such as directorships of other listed companies, would not unduly affect their time commitments and responsibilities to the Maybank (Cambodia) Plc. Board.

The Group NRC assesses the independence of the Independent Non-Executive Directors who hold directorships in licensed subsidiaries in the Maybank Group, pursuant to a declaration made that they are not taking instructions from any person including Maybank.

Conflict of Interest

Members of the Board are required to make a declaration at the Board meeting in the event that they have interests in proposals being considered by the Board, including where such interest arises through close family members, in line with various statutory requirements on the disclosure of Director’s interest. In all situations where the Directors could be deemed as interested, they would excuse themselves from the discussion and leave the meeting room. The minutes of meeting would also reflect as such.

BOARD COMMITTEES

Delegation of certain of its governance responsibilities has been undertaken by the Board in favour of its Board Committees, which operate within clearly defined terms of references, primarily to assist the Board in the execution of its duties and responsibilities. Although the Board has granted such discretionary authority to these Board Committees to deliberate and decide on certain key and operational matters, the ultimate responsibility for final decision on all matters lies with the entire Board. The Chairmen of the Board Committees will table and present a report on the activities of the respective Board Committees at the quarterly Board meetings.

The Board Committees of the Maybank Board are as follows:-

1. Audit Committee

2. Risk Management Committee

Audit Committee

The Board authorises the Audit Committee to investigate any activities within its Terms of Reference and has unrestricted access to both the internal and external auditors and members of the senior management of the Bank.

The activities carried out by the Audit Committee, which met 4 times during the year under review, are summarised in the Audit Committee Report and its Terms of Reference as stated on page 69 of this Annual Report. Members of the Audit Committee are as indicated on page 69 of this Annual Report.

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Risk Management Committee (RMC)

The roles and responsibilities of the Risk Management Committee for risk oversight include the following:

(i) The Committee is responsible for formulating policies and frameworks to identify, measure, monitor, manage and control the following material risks components:-

• CreditRisk(includingConcentrationRiskandCounterpartyCreditRisk)

• MarketRisk(includingPriceRiskandInterestRateRisk/RateofReturnRisk)

• LiquidityRisk

• OperationalRisk(includingITRisk)

• LegalRisk

• ReputationalRisk

• Business/StrategicRisk

• ModelRisk

• SecuritizationRisk

• InterestRateRiskintheBankingBooks

(ii) Its Roles and Responsibilities include:

1. To review and approve risk management strategies, risk frameworks, risk policies, risk tolerance and risk appetite limits.

2. To review and assess adequacy of risk management policies and frameworks in identifying, measuring, monitoring and controlling risks and the extent to which they operate effectively.

3. To ensure infrastructure, resources and systems are in place for risk management i.e. ensuring that the staff responsible for implementing risk management systems perform those duties independently of the financial institutions’ risk taking activities.

4. To review management’s periodic reports on risk exposure, risk portfolio composition and risk management activities.

5. To review the impact of risk on capital adequacy and profitability and asset quality under stress scenarios.

6. To review and assess the internal capital adequacy assessment process (ICAAP), levels of regulatory and internal capital for the Bank, vis-à-vis its risk profile.

7. To review and assess the adequacy of insurance coverage.

8. To review and recommend strategic actions to be taken by the Bank arising from Basel implementation for the Board’s approval.

9. To consider and approve the appointment of professional external advisors/ consultants in areas up to a cap of USD1 million per appointment (regardless of whether budgeted or unbudgeted) and to notify the Board of the same.

10. To review and approve new products and services and ensure compliance with the prevailing guidelines issued by NBC or any other relevant local regulatory body.

11. To oversee the resolution of NBC On-Site Examination Report and BNM Composite Risk Rating findings for Maybank Cambodia.

12. To delegate appropriate operational issues to Management for their further actions.

13. To carry out such other responsibilities as may be delegated to it by the Board from time to time.

The RMC usually meets four times in every financial year with additional meetings convened to attend to urgent matters that require its deliberation. During the financial year ended 31 December 2014, four meetings were held. The Chairman and all Committee members are Non-Executive Directors. Members of the RMC and details of attendance by members are stated on pages 63 of this Annual Report.

EXECUTIVE LEVEL MANAGEMENT COMMITTEES (ELC)

With the support of the Maybank (Cambodia) Plc. Board, the CEO has established various ELCs and delegated some of her authority to assist and support the relevant Board Committees in the operations of Maybank (Cambodia) Plc. The key ELCs, which are mostly chaired by the CEO are as follows:-

• ExecutiveCommittee

• CreditCommittee

• InternalAuditCommittee

• AssetandLiabilityManagementCommittee

• StaffCommittee

• ITSteeringCommittee

GENERAL MEETINGS

The Bank’s Annual General Meetings and Extraordinary General Meetings represent the primary platforms for direct two-way interaction between the shareholders, Board and management of the Bank. In deference to shareholder democracy and the transparency policy adopted by the Bank, shareholder approval is required on all material issues including, but not limited to, the election and appointment of Directors, major mergers, acquisitions and divestments exercises, as well as the appointment of auditors and final dividend payments.

ACCOUNTABILITY AND AUDIT

Financial Reporting and Disclosure

Financial Reporting

The Board has a fiduciary responsibility to present to the shareholders and the public at large, a clear, balanced and meaningful evaluation of the Bank’s financial position, financial performance and prospects. The Board is assisted by the Audit Committee in overseeing the financial reporting process and the quality of the Bank’s financial statements.

Disclosure on Financial Highlights, Indicators & Reports

The Bank’s financial highlights and indicators for the financial year ended 31 December 2014 are set out on pages 48 to 49 of this annual report.

The Bank’s financial statements are included at page 90 of the Annual Report (Financial Statements).

Directors’ Responsibility Statement

The Board also ensures that the Bank’s financial statements prepared for each financial year give a true and fair view in accordance with the Cambodian Financial Reporting Standards and the guidelines issued by the NBC.

The Statement of Directors’ Responsibility in respect of the preparation of audited financial statements for the Bank is set out on page 92 of the Financial Statements of the Annual Report 2014.

Internal Controls

The Board has overall responsibility for establishing and maintaining a sound risk management and internal control system to ensure that shareholders’ investments, customers’ interests and the Bank’s assets are safeguarded. The effectiveness of risk management and internal controls is continuously reviewed to ensure that they are working adequately and effectively.

The Audit Committee of the Board (“ACB”) regularly evaluates the adequacy and effectiveness of the Bank’s internal control systems by reviewing the actions taken on lapses/deficiencies identified in reports prepared by Internal Audit during its scheduled meetings. The ACB also reviews Internal Audit’s recommendations and management responses to these recommendations to ensure the lapses/deficiencies identified are being dealt with adequately and promptly.

The Statement on Risk Management and Internal Control is furnished on page 67 of this Annual Report and this provides an overview of the state of internal controls within the Bank.

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Whistleblowing Policy

The Board is satisfied that an adequate framework on whistleblowing, known as the Integrity Hotline (formerly Fraud Reporting Hotline) is in place, having been implemented in 2013. All employees can raise their concerns regarding any misconduct or wrongdoing including but not limited to unethical incidences such as criminal activities or contravention of laws/regulations committed by another employee or any person who has dealings with the Bank via the following channels without any fear of retribution:-

• Toll-FreeMessageRecordingLineat1-800-38-8833orforOverseasat603-20268112

• [email protected]

• SecuredP.O.BoxMailAddressatP.O.Box11635,50752KualaLumpur,Malaysia

These channels protect employees who contemplate “blowing the whistle” against any negative repercussions arising from genuine reporting, and provide an assurance of confidentiality to them. Confidentiality of all matters raised and the identity of the whistleblower are protected under the Policy. Concerns raised anonymously will also be considered provided they are clear and specific.

Relationship with the Auditors

Internal Auditors

Internal Audit reports functionally to the ACB and has unrestricted access to the ACB. Its function is independent of the activities or operations of other operating units. The Internal Audit regularly evaluates the effectiveness of the risk management process, reviews the operating effectiveness of the internal controls system and compliance control in the Bank. The Bank’s Head of Internal Audit is invited to attend the ACB meetings to facilitate the deliberation of audit reports. The minutes of the Audit Committee meetings are then tabled to the Board for information and serve as useful references, especially if there are pertinent issues that any Directors wish to highlight or seek clarification on.

External Auditors

The ACB and the Board place great emphasis on the objectivity and independence of the Bank’s Auditors, namely Messrs. Ernst & Young, in providing relevant and transparent reports to the shareholders. To ensure full disclosure of matters, the Bank’s Auditors are invited to attend the ACB meeting with a yearly discussion with the ACB without the presence of the senior management.

A full report of the Audit Committee outlining its role in relation to the internal and external auditors is set out in the Audit Committee Report on pages 69 to 71 of this Annual Report.

Maybank (Cambodia) Plc.’s Code of Ethics and Conduct

The Bank has a Code of Ethics and Conduct that sets out sound principles and standards of good practice in the financial services industry, which are observed by the Directors and the employees. Both Directors and employees are required to uphold the highest integrity in discharging their duties and in dealings with stakeholders, customers, fellow employees and regulators. This is in line with the Bank’s Core Values which emphasise behavioural ethics when dealing with third parties and fellow employees.

Code of Banking Practice

Maybank (Cambodia) Plc. reinforces its commitment to a high level of accountability and transparency by signing Cambodia’s first Code of Banking Practice in February 2015.

This Code was culminated as a result of collaboration between the Association of Banks in Cambodia and the National Bank of Cambodia.

The signing of this Code signifies to the public that the Bank supports and upholds the standards of good banking practice that customers can expect when dealing Maybank (Cambodia) Plc.

Corporate Responsibility

The Board is satisfied that a good balance has been achieved between value creation and corporate responsibility. Details of the Bank’s corporate responsibility initiatives are set out on pages 78 to 83 of this Annual Report.

This statement is made in accordance with a resolution of the Board dated 5 March 2015.

CHEAH TEIK SENGChairman of the Board

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Statement on Risk Management & Internal Control

Financial year ended 31 December 2014

INTRODUCTION

This Statement on Internal Control is made pursuant to Prakas on Internal Control of Bank and Financial Institution issued by the National Bank of Cambodia which requires the Board of Directors (“Board”) to include in its Company Annual Report a statement about the state of internal control. The statement should describe the Bank’s Internal Control System and the corresponding policies, procedures and mechanisms. Such statement shall also assess the effectiveness of the Internal Control System in light of business growth and diversification and changes occurred in the Bank.

Accordingly, the Board is pleased to provide the Statement on Risk Management and Internal Control (“Statement”) that has been prepared in accordance with the Prakas on Internal Control of Bank and Financial Institution issued by the National Bank of Cambodia which outlines the processes adopted by the Board in reviewing the adequacy and effectiveness of the risk management and internal control system of the Bank.

Board Responsibility

The Board acknowledges its overall responsibility in establishing a sound risk management framework and internal control system as well as reviewing its adequacy and effectiveness. The Board is of the view that the risk management framework and internal control system are designed to manage the Bank’s risks within the acceptable risk appetite, rather than to eliminate the risk of failure to achieve the business goals and objectives. It can therefore only provide reasonable, rather than absolute assurance against material financial misstatement fraud and loss.

The Board has established a governance structure to ensure effective oversight of risk and control in the Bank. The Board is satisfied that the Bank has implemented an ongoing process to identify, evaluate, monitor, manage and respond to significant risks faced by the Bank in its achievement of the business goals and objectives and in consideration of the changes in the business environment and regulatory requirements. The outcome of this process is closely monitored and reported to the Board for deliberation. This on-going process has been in place for the entire financial year under review and up to the date of approval of this Statement for inclusion in the Annual Report.

Management Responsibility

The Management is overall responsible for implementing the Board’s policies and procedures on risks and controls and its roles include:

• Identifyingandevaluatingtherisksfaced,andtheachievementofbusinessobjectives and strategies;

• Formulatingrelevantpoliciesandprocedurestomanagetheserisks;

• Designing,implementing,andmonitoringtheeffectiveimplementationofrisk management framework and internal control system;

• ImplementingthepoliciesapprovedbytheBoard;

• Implementingtheremedialactionstoaddressthecompliancedeficienciesasdirectedby the Board; and

• ReportinginatimelymannertotheBoardanychangestotherisksandcorrective actions taken.

Risk Management and Internal Control Structure

The key processes that the Board have established in reviewing the adequacy and effectiveness of the risk management framework and internal control system include the following:

Risk Management Framework

• Clear line of Responsibility, Authority and Accountability

The Board has established an organisation structure with clearly defined lines of responsibility, authority limits, and accountability aligned to business and operations requirements which support the maintenance of a strong control environment.

• Oversight by Risk Management Committee (RMC)

The Board has also delegated the responsibility of reviewing the effectiveness of risk management to the RMC. The effectiveness of the risk management system is monitored and evaluated by the Credit & Risk Management (CRM) function, on an ongoing basis. The RMC assists the Board to review and oversee the effectiveness of the risk management of the Bank, wherein the CRM function would facilitate the continuous monitoring and evaluating of the Bank’s risk management system. Any approved policy and framework formulated to identify, measure and monitor various risk components would be reviewed and recommended by the RMC to the Board. Additionally, the RMC reviews and assesses the adequacy of these risks management policies and ensures infrastructure, resources and systems are emplaced for risk management.

• Bank Aligned Risk Governance Structure

The risk governance structure is aligned across all the business units through the streamlining of the risk frameworks, policies and organisation structures to enhance the risk management and risk culture.

• Updates and Communication of Risk Management Principle, Policies, Procedures and Practices

Risk management principles, policies, procedures and practices are reviewed and updated regularly to ensure relevance to the current business environment as well as compliance with current/applicable laws and regulations. These updates are communicated and made available to all employees. The Bank also adopted a whistle blowing policy, providing an avenue for employees to report actual or suspected malpractice, misconduct or violations of the Bank’s policies and regulations in a safe and confidential manner.

• Written Control Policies

A written Management Control Policy (MCP) and Internal Control Policy (ICP) from Management are in place. The MCP outlines the specific responsibilities of the various parties i.e. the Management, the Internal Audit Committee (IAC) and the Audit Committee of the Board (ACB) pertaining to internal control. The ICP is to create awareness among all the employees with regards to the internal control components and the basic control policy.

• Anti-Fraud Policy

There is an Anti-Fraud Policy implemented. The policy provides broad principles, strategy and policy for the Bank to adopt in relation to fraud in order to promote high standard of integrity. The Framework establishes robust and comprehensive programmes and controls for the Bank as well as highlights the roles and responsibilities at every level for preventing and responding to fraud.

• Clearly Defined and Communicated Three Lines of Defence

The Bank has established the three lines of defence concept: risk taking units, risk control units, and internal audit. The risk taking units manage the day-to-day management of risks inherent in their business activities, while the risk control units are responsible for setting the risk management framework and developing tools and methodologies. Complementing this is internal audit, which provides independent assurance of the effectiveness of the risk management approach.

• Operational Risk Management

The implementation of the Risk and Control Self-Assessment (RCSA) process to enable the Management to identify and assess the risks under their areas of supervision and control on a continual basis. The resultant operational risk profile is validated through internal loss data from the Incident Management and Data Collection (IMDC) and it also serves as a trigger point to determine the types of Key Risk Indicator (KRI) to adopt and monitor operational risk exposures. The overall process is facilitated by Group Risk.

Internal Control System

The key elements of the internal control system established by the Board that provides effective governance and oversight of internal control include:

• Board Approved Annual Business Plan and Budget

An annual business plan and budget are submitted to the Board for approval. Performance achievements are reviewed against the targeted results on a monthly basis allowing timely responses and corrective actions to be taken to mitigate risks. The Board reviews regular reports from the management on the key operating statistics, as well as legal and regulatory matters. The Board also approves any changes or amendments to the Bank’s policies.

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• Executive Level Management Committees

Various Executive Level Management Committees (ELCs) are also established by Management to assist and support the various Board Committees to oversee the core areas of business operations. These ELCs include the Executive Committee, Management Credit Committee, Asset & Liability Management Committee, IT Steering Committee and Staff Committee.

• Human Resource Policies and Guidelines

There are recruitment and promotion policies and guidelines established within the Bank to ensure that the right and appropriate persons are selected to fill available positions. Formal training programmes either face-to-face or through e-learning, semi and annual performance appraisals, and other relevant procedures are in place to ensure that staff are adequately trained and competent to enable them to discharge their duties and responsibilities effectively. Proper guidelines are also drawn up for termination of staff.

• Core Values and Code of Ethics and Conduct

The Bank’s core values, T.I.G.E.R. (Teamwork, Integrity, Growth, Excellence and Efficiency, Relationship Building) are the essential guiding principles to drive behavioral ethics. It is further complemented by the Code of Ethics and Conduct that sets out sound principles and standards of good practice observed by all.

• Procurement Framework and Non-Credit Discretionary Power

A clearly defined framework with appropriate empowerment and authority limits has been approved by the Board for acquisitions and disposals of assets, awarding tenders, writing off operational and credit items, donations, as well as approving general and operational expenses.

• Standard Practice Instruction

There are policies and procedures in place to ensure compliance with internal control and the prescribed laws and regulations. These policies and procedures are set out in the Bank’s Standard Practice Instruction and are updated from time to time in tandem with changes to the business environment or regulatory guidelines.

Internal Audit

• Internal Audit Function

The Internal Audit undertakes regular reviews of the Bank’s operations and the systems of internal control to examine and evaluate the adequacy and effectiveness of financial and operating controls. Significant risks and non-compliances impacting the Bank are highlighted and corresponding improvement recommendations are provided to enhance the effectiveness of the risk management, internal control system and governance process. Management follows through and ensures remedial actions taken are prompt, adequate and effective. Status reporting of the audit findings is also tabled to the ACB and IAC regularly for deliberation and tracking.

• Audit Committee of the Board (ACB)

The ACB is a Board Committee established by the Board to assist in the execution of its governance and oversight responsibilities on the Internal Audit functions as delegated by the Board and this includes the assessment of internal controls of the Bank through the Internal Audit function. The ACB meets on a scheduled basis to review the findings identified in the audit and investigation reports prepared by Internal Audit and further evaluates the effectiveness and adequacy of the Bank’s internal control system. The ACB has active oversight on internal audit’s independence, scope of work and resources. It also reviews the Internal Audit function, the scope of the annual audit plan and frequency of the internal audit activities. Minutes of the ACB meeting are then tabled to the Board. The details of the activities undertaken by the ACB are highlighted in the Audit Committee Report.

• Internal Audit Committee

The IAC is a management level committee chaired by the Chief Executive Officer (CEO), comprising senior level representatives from different Lines of Business. The IAC meets monthly to deliberate on the findings highlighted in the audit and investigation reports and decide on the appropriate remedial actions required. Where necessary, representatives from the parties being audited are requested to attend the IAC meeting to enable more detailed deliberation and speedy resolution of the matter at hand. Minutes of the IAC meeting are then tabled to the ACB together with the audit reports. The IAC also follows through on the actions required by the ACB.

• Group Audit

Maybank Group Audit undertakes the role to provide quality assurance to the Bank’s Internal Audit which encompasses the review of audit activities performed by the Bank’s Internal Auditor.

Assurance from Management

The Board has also received assurance from the CEO that the Bank’s risk management framework and internal control system are operating adequately and effectively, in all material respects, based on the risk management model adopted by the Bank. Taking into consideration the assurance from Management, the Board is of the view that the group’s risk management and internal control system are operating adequately and effectively to safeguard shareholders’ investment and the company’s assets.

Statement on Risk Management & Internal ControlFinancial year ended 31 December 2014

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Audit Committee Report

A. COMPOSITION AND TERMS OF REFERENCE

Composition

The Committee shall consist of at least three (3) members, appointed by the Board from amongst its non-executive directors of the Bank:

1. The Chairman must be an independent director and at least an independent person of the committee must be an expertise in finance and accounting, and an independent person with expertise in legal issues and banking.

2. The Committee shall consist of at least three (3) members, with at least two (2) non-executive directors appointed by the Board from amongst its non-executive directors of the Bank.

3. Where the Chairman is unable to attend the meeting, the members shall elect a person among themselves as Chairman.

Meetings

1. Meetings shall be held at least once every quarterly, to coincide with the Board of Directors meeting or at a frequency to be decided by the Committee. At least once a year, the Committee shall meet with the external auditor without the presence of management.

2. The Committee will regulate its own procedure particularly with regard to the calling of meetings, the notice to be given of such meetings, the voting and proceedings of such meetings, the keeping of minutes, and, the custody, production and inspection of such minutes.

3. Upon the request of the external auditor, a meeting is to be convened to consider any matter that the auditor believes should be brought to the attention of the directors and shareholders.

Quorum

The quorum shall be three (3), more than 50% of the total permanent members.

Secretary

The joint secretaries to the ACB are the Head of Corporate Affairs & Services and the Head of Corporate & Legal Services.

Authority

The Committee is authorised by the Board to:

• Investigateanyactivityormatterwithinitstermsofreference.

• Havetheresources,whicharerequiredtoperformitsduties.

• Havefullandunrestrictedaccesstoanyinformationanddocumentsrelevantto its activities.

• Havedirectcommunicationchannelswithexternalauditors,person(s)carryingout the internal audit function or activity and senior management of the Bank.

• Obtainoutsidelegalorotherindependentprofessionaladviceandtosecurethe attendance of outsiders with relevant experience and expertise if it considers necessary.

• Convenemeetingswithinternalandexternalauditors,withouttheattendanceofthe executives, whenever deemed necessary.

• Indischargingtheabovefunctions,theACBisalsoempoweredbytheBoardtohave:

- Necessary resources which are required to perform its duties.

- Full and unrestricted access to any information and documents relevant to its activities.

B. DUTIES & RESPONSIBILITIES

The primary duties and responsibilities of the ACB with regards to the Maybank Cambodia’s internal audit function, external auditors, financial reporting, related party transactions, annual reporting and investigation are as follows:-

1. Internal Audit

• Reviewtheadequacyoftheinternalauditscopeandplan,functionsand resources of the internal audit function, Internal Audit Charter and that it has the necessary authority to carry out its work.

• Reviewtheinternalauditreportsandtoensurethatappropriateandprompt remedial action is taken by Management on lapses in controls or procedures that are identified by internal audit.

• ApprovetheappointmentorterminationoftheHeadofInternalAudit

• Assesstheperformanceoftheinternalauditstaff;determine/approvethe remuneration and annual increment of the internal audit staff.

• Takecognizanceofresignationofinternalauditstaffandthereasonforresigning.

2. External Audit

• Reviewtheappointmentandperformanceofexternalauditors,theauditfeeand any question of resignation or dismissal and to make recommendations to the Board.

• Assessthequalification,expertise,resourcesandeffectivenessoftheexternal auditors.

• Monitortheeffectivenessoftheexternalauditors’performanceandtheir independence and objectivity.

• Reviewtheexternalauditors’auditscopeandplan,includinganychangestothe planned scope of the audit plan.

• Reviewmajorauditreportsandfindingsraisedbytheexternalauditorsand Management’s responses, including the status of previous audit recommendations.

• ReviewtheassistancegivenbytheBank’sofficerstotheexternalauditorsandany difficulties encountered in the course of the audit work, including any restrictions on the scope of activities or access to required information.

• Approvenonauditservicesprovidedbytheexternalauditors.

The Audit Committee Members of Maybank (Cambodia) Plc:

Datuk R. Karunakaran(Chairman)

Mr. Spencer Lee (Member)

Mr. Hamirullah Boorhan (Member)

Ms. Pollie Sim (Member)

Mr. Soon Su Long*(Member)

* Appointed on 31 March 2015

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3. Internal Control Systems

Review, appraise and report to the Board of Directors on:

• Theadequacyoftheestablishedpolicies,proceduresandguidelinesoninternal control systems.

• Theeffectivenessofinternalcontrolsystemsandtheinternaland/orexternal auditor’s evaluation of these systems and in particular the external auditor’s management letter and management’s response.

4. Financial Reporting

Review the quarterly and year-end financial statements focusing on:-

• Anychangesinaccountingpolicyandpractices.

• Significantandunusualevents.

• CompliancewithapplicableFinancialReportingStandardsandotherlegaland regulatory requirements.

5. Related Party Transactions

Review any related party transactions and conflict of interest situations that may arise within the Bank including transactions, procedures or courses of conducts that may raise questions of Management’s integrity.

6. Annual Report

Prepare an audit committee report at the end of each financial year and this report will be set out clearly in the Annual Report.

7. Investigation

Instruct the conduct of investigation into any activity or matter within its terms of reference.

8. Other Matters

Act on other matters as the Committee considers appropriate or as authorised by the Board of Directors.

C. ACTIVITIES DURING THE YEAR

During the year under review, the Audit Committee in the discharge of its duties and functions carried out the following activities:

Attendance of meetings

A total of four (4) meetings were held during the year ended 31 December 2014. The details of attendance of each of the member at the Committee meetings held during the year are as follows:

Composition and name ofcommittee member

No. of meetings attended during the period under review

1 Datuk R. Karunakaran (Chairman)- Appointed on 12/10/2012- Independent Non-Executive Director

4/4

2 Mr. Spencer Lee (member)- Appointed on 23/3/2012- Independent Non-Executive Director

4/4

3 Mr. Hamirullah Boorhan (member)- Appointed on 23/3/2012- Non-Independent Non-Executive Director

4/4

4 Ms. Pollie Sim (member)- Appointed on 28/2/2014- Non-Independent Non-Executive Director

4/4

The Audit Committee consists of two (2) Independent Non-Executive Directors.

The Audit Committee meets on a scheduled basis. The Chief Executive Officer (CEO) and the Head of Internal Audit (HIA) are invited to attend the meetings. The External Auditors are also invited to discuss their management letters, Audit Planning Memorandum and other matters deemed relevant.

In addition to the scheduled meetings, the members of the Audit Committee also had one (1) session with the External Auditors without the presence of the Management as required.

The Audit Committee also meets to discuss and review the annual audited financial statements of the Bank. The CEO and the Head of Finance & Strategy are invited to attend these meetings, together with the External Auditors.

Internal Audit

1. Approved the annual internal audit plan for the financial year 2014 to ensure the scope of coverage is adequate and that resources are sufficient to enable internal audit to discharge and carry out its functions effectively.

2. Take cognizance of the monthly audit performance reports on the status and progress of internal audit assignments against the approved Audit Plan, the hiring, transfer and resignation of internal audit staff.

3. Reviewed and approved the revised Audit Charter which incorporated the updates on scope of work to be consistent with the Group and the replacement of chief Audit Executive and ACB’s Chairman.

4. Approved the adoption of COSO Internal Control - Integrated Framework in the execution of audit engagement.

5. Deliberated the results of the HIA FY 2013’s Balanced Scorecard (BSC) and approved the achievement of the BSC.

6. Deliberated the performance and control gaps highlighted in the internal audit reports, audit recommendations and Management’s responses to the control lapses and recommendations. Where necessary, directed the Chief Executive Officer to escalate these control lapses and recommendations to the EXCO for deliberation.

7. Reviewed and deliberated the Audit Finding Status Report on action implemented by Management, to rectify the outstanding audit issues to ensure control lapses are addressed.

8. Reviewed the audit reports issued by regulatory authorities, Management’s responses to the Regulators’ recommendations and the remedial actions taken and the committed timeline to rectify the weaknesses detected.

9. Assessed the performance of the internal auditors; determined/approved the remuneration and annual increment of the internal auditors.

10. Instructed the conduct of investigation into any activity or matter within its terms of reference.

11. Reviewed the Audit committee Report and Statement on Internal Control.

12. Reviewed the minutes of meeting of the Internal Audit committee for an overview of the deliberation and remedial actions taken by Management on the control lapses raised by internal auditors.

Financial Reporting

13. Reviewed the annual audit financial statements of the Bank to ensure that the financial reporting and disclosure requirements are in compliance with accounting standards, with special focus place on changes in accounting policy as well as significant and unusual events/transactions.

External Audit

14. Assessed the qualification, expertise, resources and effectiveness of the external auditors.

15. Monitored the effectiveness of the external auditors’ performance and their independence and objectivity.

16. Reviewed the external auditors’ audit scope and plan, including any changes to the planned scope of the audit plan.

17. Reviewed major audit reports and findings raised by the external auditors and Management’s responses, including the status of previous audit recommendations.

18. Reviewed the assistance given by the Bank’s officers to the external auditors and any difficulties encountered in the course of the audit work, including any restrictions on the scope of activities or access to required information.

19. Approved non audit services provided by the external auditors.

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D. INTERNAL AUDIT FUNCTION

The Internal Audit function of Maybank (Cambodia) Plc. is organised in-house to assist the Board to oversee that Management has in place a sound risk management, internal control and governance system. The internal audit function is guided by its Audit Charter with the Head of Internal Audit reports functionally to the Group Chief Audit Executive (GCAE) and the ACB of the Bank and administratively to the CEO, and is independent of the activities or operations of other operating units. The total costs incurred for maintaining the Internal Audit function for financial year ended 31 December 2014 is approximately USD230,769 comprising mainly salaries, travelling, accommodation expenses, IT equipment and subsistence allowances for audit assignments.

Audit is set up by the Board of Directors of the Bank to be staffed with adequate and qualified audit personnel to perform the audit functions for the Bank. The Head, Internal Audit and the staff of Audit are authorised to carry out a comprehensive program of auditing within the Bank and initiate audits, examinations and inspections at such time as he may determine and without advance notice, with respect to any of the Bank’s activities as deemed necessary.

The principal responsibility of Internal Audit is to undertake periodic testing of the effectiveness and efficiency of the risk management frameworks and the internal control systems in order to provide reasonable assurance that such frameworks and systems continue to operate efficiently and effectively. The internal audit activities are carried out based on a risk-based audit plan which includes both assurance and consulting activities approved by the ACB. The scope of coverage encompasses all units and operations of the Bank. In order to perform its functions effectively, the auditors are continuously sent for training to equip themselves with requisite product knowledge and skills especially in the areas of risk management, credit and banking operations. Staff appraisals are conducted at the end of each assignment for all members of the audit team who spent five days or more on the audit.

The audit reports which provide the results of the audit conducted in terms of the risk management of the unit, operating effectiveness of internal controls, compliance with internal and regulatory requirements and overall management of the unit are submitted to the respective Audit Committee members for their review and deliberation. Key control issues, significant risks and recommendations are highlighted, along with Management’s responses and action plans for improvement and/or rectification, where applicable. This enables the ACB to execute its oversight function by reviewing and deliberating the audit issues, audit recommendations as well as Management response to these recommendations. Where appropriate and applicable, the ACB directed management to take cognisance of the issues raised and established necessary steps to strengthen the system of internal control based on the internal audit’s recommendations.

All auditing activities are conducted in line with the Bank’s objectives and policies; in accordance with applicable laws and regulations; in compliance with the relevant policies and guidelines issued by the National Bank of Cambodia and as guided by the Code of Ethics and International Standards for the Professional Practice of Internal Auditing (Standards) promulgated by The Institute of Internal Auditors (IIA).

The following are activities undertaken by Internal Audit for FY2014 were carried out by IA:-

1. An annual audit plan using a risk-based approach, taking into consideration the Bank’s business expansion plan as well as input from Senior Management and the ACB was developed and tabled to the ACB for approval and adoption.

2. Provided independent assessment and objective assurance over the adequacy and effectiveness of risk management, internal control and governance processes via periodic testing of units and operations identified in the annual audit plan.

3. Reviewed the level of compliance with established policies and procedures and statutory requirements.

4. Recommended improvements and enhancements to the existing system of internal controls and work procedures/processes.

5. Provided independent and objective reviews of the adequacy and relevance of internal controls enforced to mitigate the risk exposures in the introduction of new products.

6. Issued reports to the IAC and the ACB summarizing the results of audit activities.

7. Besides the risk assurance activities, Group Audit provided support by conducting audit on computer hardware, operating and application systems as well as the information communication technology network (ICT) of Maybank (Cambodia) Plc (MCPlc).

8. Conducted Investigation into activities or matters as instructed by the Audit committee and Senior Management.

9. Witnessed the tender opening process for procurement of services or assets.

10. Preparation of Audit Committee Report and Statement on Internal Control for the Company’s Annual Report for Financial Year Ended 31 December 2014.

11. Conducted ad-hoc assignments and special reviews as instructed by the Audit committee.

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Risk Management

MOHAMMAD FAUZI ABD WAHABChief Risk Officer

• Undertooktherisktransformationonanewtarget-operatingmodelforRetail SME loan segments to strengthen the Bank’s competitiveness and improve Customers’ experience. This is pursuant to the Bank’s clearly defined business segments based on specific market and customers profiles.

• Defined,alignedandimplementedRiskAppetiteFrameworktoclearlydefine our risk-taking boundaries within the acceptable performance measure on risk-returns and capital management.

• InstitutionalisingInternalCapitalAdequacyAssessmentProcess(“ICAAP”) to strengthen and strategise capital management.

• The1stMaybankoverseasunittoimplementMaybankInternalCreditAccreditation Programme (“MICAP”) Framework as a structured on the job credit skill competency assessment for core credit personnel.

• SuccessfullyconductingreviewonBusinessContinuityManagementandparticipated in the Group stress test exercise on loan asset quality.

• Fortifiedriskmanagementfunctionswithcontinuedimprovementsinriskmanagement policies, practices, credit underwriting quality, risk talent development and risk culture.

• Embeddedriskmanagementintothebusinessstrategyandplanningtoensure the risk-taking activities are aligned with risk management and improve process efficiency.

• SupportingtheMaybankGroup’svariousRegionalBusinessInitiativesthrough risk frameworks, systems and processes.

2014Key Achievements

Overview

Amidst the challenging market environment with continued pressure on business deliverables, talent shortage and high customers’ expectation, Credit & Risk Management remained committed on strategic priorities to enhance and integrate risk into the business as an integral part in driving value creation to support the Bank’s aspiration.

Understanding the key risk elements vis-à-vis the challenging market conditions through robust risk assessment, disciplined approach, continued process improvements and high performance culture were the key drivers to sustain value creation to all stakeholders.

Risk Management Strategic Objectives

The strategic objectives:

• Enhancingoverallriskframeworks,systemsandprocessestodelivervalue-addedservices as a strategic business partner

• ImprovingriskdynamicthroughembeddedRiskAppetitewithinallstrategicbusiness units

• AligntheBank’sriskmanagementpracticesasprescribedbytheMaybankGroupwith appropriate customization on the local regulatory requirements, business environment and market practices

• Createandembedtherightriskculture

• Optimisingcapitalandliquiditymanagement

• Trainingandrisktalentdevelopment.

Risk Management Approach

Risk is an inherent component in all aspects of the Bank’s businesses. The management of risk has evolved into an important business driver for strategic decisions in support of the Bank’s business objectives, balancing the appropriate level of risk taken proportionate to the desired level of reward, while maintaining the sound financial position and capital of the Bank.

The Bank’s approach to the management of risk involves the establishment of risk principles and strategies as the core foundation in driving strong risk management culture and practices across the Bank.

Maybank’s approach to risk management is premised on the seven broad risk principles:

i. Establishment of a risk appetite and strategy, which articulates the nature, type, and level of risk the Bank is willing to assume and must be approved by the Board of Directors (“the Board”).

ii. Capital management driven by the Bank’s strategic objectives and accounts for the relevant regulatory, economic and commercial environments in which the Bank operates.

PRINCIPLES OF RISK MANAGEMENTThe principles are core discipline of the Bank, which serves as the foundation for the

Bank’s risk management practices and processes

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Risk Management

“ ”Credit & Risk Management continued to evolve and strengthen value creation in risk management as a dynamic business partner and providing competitive advantage to support the Bank’s aspiration

iii. Proper governance and oversight through a clear, effective and robust Bank governance structure with well-defined, transparent and consistent lines of responsibility established within the Bank.

iv. Promotion of a strong risk culture, which supports and provides appropriate standards and incentives for professional and responsible behaviour.

v. Implementation of integrated risk frameworks and policies to ensure that risk management practices and processes are effective at all levels.

vi. Execution of sound risk management processes to actively identify, measure, control, monitor and report risks inherent in all products, activities, processes, systems and exposures of the Bank.

vii. Ensure sufficient resources and systems infrastructure are in place to enable effective risk management

The Bank’s risk appetite is a critical component of Maybank’s robust risk management framework and is driven by both top-down Board leadership and bottom-up involvement of management at all levels. The RAS enables the Board and Senior Management to communicate, understand and assessthe types and levels of risk that the Bank is willing to accept in pursuit of its business objectives.

The development of its risk appetite has been integrated into the annual strategy and business planning process for the Bank and is adaptable to changing business and market conditions. The Bank’s risk appetite balances the needs of all stakeholders by acting both as a governor of risk, and as a driver of future and current business activities.

The articulation of the risk appetite through the Risk Appetite Statementincludes a comprehensive view of all material risks to the Bank, deliberated by Senior Management, endorsed by the Risk Management Committee and approved by the Board.

The Bank’s risk governance model provides a transparent and effective governance structure, which promotes active involvement from the Board and Senior Management in the risk management process to ensure a uniform view of risk across the Bank.

The governance model aims to place accountability and ownership whilst facilitating an appropriate level of independence and segregation of duties.The structure is premised on the three lines of defence and defines the lines of authority, roles and responsibilities to efficiently manage risk across the Bank.

GOVERNANCE & RISK OVERSIGHTIntegrated risk management approach towards effective management

of Bank-wide risk.

RISK APPETITE & STRATEGYRisk Appetite Statement is to define the boundaries

and drivers of doing business

Maybank’s Three Lines of Defence:

1st line of Defence: Risk Taking Units

• Consistsofbothbusinessandsupportunitswhoareultimatelyresponsibletomanage

day-to-day risks inherent in the Bank’s business and activities.

• Ensureseffectiveriskoversight,alignmenttotheimplementationofriskframeworks,

policies and procedures and clarity in risk management functions and practices.

2nd line of Defence: Risk Control Units

• Includesriskmanagementandcompliancefunctionstoprovideeffectiveoversightand

guidance over the effective operation of the risk management framework.

• Theseunitshavesimilarresponsibilitiestothe1stlineofdefencefortheprocessesand

activities they own. In addition, these units are responsiblein ensuring implementation and

execution of risk management frameworks, policies and tools.

3rd line of Defence: Internal Audit

• InternalAuditformsthe3rdlineofdefenceandprovidesindependentassessmentsand

validation that risk management frameworks and practices are sufficiently robust in support

of the Bank and consistent with regulatory standards.

Board of Directors & Board level Committees

Management Level

Risk Management Committees

1st

Line of Defence

Day to day

Management of

Risks

Risk

Taking Units

Risk Oversight and Establishment

of Risk Frameworks, Policies &

Procedures

2nd

Line of Defence

Risk

Control Units

Independent

Assurance

3rd

Line of Defence

Internal

Audit

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Risk Management

Board of Directors

The Board of Directors is the Bank’s ultimate governing body with overall risk oversight responsibility, including defining the appropriate governance structure and delegation of authority.

Risk Management Committee

The Risk Management Committee is a dedicated Board Committee responsible for the risk oversight function including but not limited to reviewing, endorsing and approving of the Bank’s risk management strategies, frameworks, policies and procedures.

Board Level Committees

Executive Committee

The Executive Committee is responsible for the management of all material risks from an enterprise-wide perspective.

Credit Committee

The Credit Committee is tasked by the Board of Directors to review, recommend and/or approve loans/proposals as per the thresholds set based on the authority limits.

Asset and Liability Management Committee

The Asset and Liability Management Committee is responsible for the management of market and liquidity risk through formulation of broad strategies for the balance sheet profile and funding structure of the Bank.

Executive Level Management Committee

RISK GOVERNANCE STRUCTUREThe Bank’s risk governance structure is as follows:

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Risk Management

• Methodologies

• Approaches,models,

techniques & analysis

• Datamanagement&

infrastructure

• Qualitative&quantitative

controls

• Preventivemeasures

• Mitigationactions&active

management

• Riskexposuresvslimits/

triggers

• Managementinformation

systems

• Managementinformation

systems

• Board,Management&

Regulatory Reporting

• Disclosures

• New/existingproducts

• ActivitiesIdentification

Measurement

Control

Monitoring

Reporting

Risk identification is the initial step in the risk management process as the Bank identifies, understands and assesses the risks inherent in all products, activities, business initiatives, markets and environment. Involves a structured process of determining events or scenarios that may adversely impact the Bank. The objective is to enable early detection of risks and to ensure adequate risk management controls and procedures in place to ensure appropriate management of these risks in an informed and strategic manner.

The Bank leverage on Maybank Group’s comprehensive quantitative and qualitative risk measurement techniques across different dimensions of risk factors. Stress testing is also used to identify and quantify possible or future changes in the financial and economic condition that could have unfavourable effects.

The Bank emplaces proper control to govern risk exposures and ensure alignment with the established risk appetite. Both quantitative and qualitative controls including risk triggers and limits have also been established to oversee and manage the risk exposures identified. The Bank also implemented risk mitigation techniques aimed to minimize existing or to prevent new or emerging risks from occurring.

As part of the Bank’s oversight on risk management, accurate, clear, informative and timely management information is fundamental for the monitoring and reporting of risk exposures and exceptions to senior management and the relevant committees on a regular basis.

The monitoring and reporting process is essential as it enables the Bank to capture existing exposures and facilitates early identification of emerging risks, prompt decision-making and communication of mitigating strategies.

RISK MANAGEMENT PROCESSAdopting Maybank Group’s risk management practices has enabled the Bank to systematically identify, measure,

control, monitor and report risk exposures within the Bank.

The 5 main stages of Maybank’s risk management processes are as follows:

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Risk Management

The Bank considers the following risk factors as material:

Categories of Risk Broad Definition Maybank’s Risk Management Practices

CreditLosses in principal or income arising from the failure of an obligor or counter party to perform their contractual obligations in accordance with agreed terms.

• TheBankhasastrongcreditculturewhichincorporatesaclearcreditpolicy,robust credit evaluation and approval as well as sound credit portfolio management.• Creditriskintheportfolioiscontinuouslyevaluatedandreviewedbythebusiness sectors together with the risk units. Senior management and the Board have good oversight of the credit risks and play an active role in the overall credit risk management.

ConcentrationConcentration exposures that have the potential to produce losses that are substantial enough to threaten the financial condition of the Bank and its core operations.

• TheBankadoptsaproactive,robustandcontrolledpolicy-drivenapproachin portfolio diversification.• TheBank’sguidingprincipleinitslendingactivityistodiversifyitsloanportfolio mix and avoid any undue concentration of credit risks in its portfolio. Independent assessment on the Bank’s portfolio profile is undertaken to mitigate concentration risk.

OperationalLosses due to failed internal processes, people or systems or from external events.

• TheBankadoptsMaybankGroup’sOperationalRiskManagementFrameworkthat is aimed at managing operational risk throughout the Bank. It is periodically reviewed and aligned against the Bank’s business strategy and directions ensuring the business objectives and operational risk management objectives are aligned and consistent.• Varioustoolsandtechniquesarealsousedtominimizeoperationalrisktoan acceptable level.• Inaddition,theBankalsohasinplacearobustcrisismanagementandbusiness continuity management programme to ensure continuity of essential business services during unforeseen events.

Market

Losses or adverse impacts on earnings or capital from changes in the level of volatility of market rates or prices such as interest rates, foreign exchange rates, commodity prices and equity prices.

• TheBankmeasures,managesandcontrolsitsmarketriskexposureusingindustry best practices.• Whereappropriate,theBankalsooffsetstheeffectofitsmarketriskexposures through the use of various hedging instruments.

Liquidity and Funding

Risk that the Bank will not be able to meet both expected and unexpected current and future cash flow and collateral needs effectively without affecting either daily operations or the financial condition of the Bank.

• TheBankusesarrangeoftoolstomonitorandcontrolliquidityriskexposuresuchas liquidity gaps, early warning signals, liquidity indicators and stress testing.• TheliquiditypositionsoftheBankaremonitoredregularlyagainsttheestablished policies, procedures and limits.

Interest RateRisk arising from the change in market interest rates that adversely impact the Bank’s financial condition in terms of earnings or economic value.

• TheBankmeasures,managesandcontrolsitsinterestrateriskusingindustrybest practices.• ThisriskcomesundertheoversightofAssetandLiabilityManagementCommittee.

ReputationalRisk that the Bank’s reputation is damaged by one or more reputation event, as reflected from negative publicity about the Bank’s business practices, conductor financial condition.

• TheBank’sreputationispreservedthroughmanagingalltherisksthataffectthe Bank’s reputation through good corporate governance, effective risk management processes and a structured management of reputational events when they occur.

IT and Cyber

Risk which impacts information and services related to the Bank’s use of technology. This includes risks that customers or the Bank may suffer from service disruptions, losses arising from system defects, illegal use of computer systems and breach of data via computer systems perpetrated either by internal or external parties, including any damage to the reputation of the Bank.

• TheBankcontinuouslyreviewsandevolvesitstechnologypracticestoensurethat the best-in-class methods and standards are put in to place.• TheBankalsoensuresandcreatesawarenessamongitscustomersofthisrisk.

RegulatoryChange in regulations, which could threaten the Bank’s competitive position and capacity to conduct business effectively.

• TheBankkeepsaclosewatchonallkeyregulatorydevelopmentsacrosstheworld in order to anticipate changes and potential impact on performance with the focus of continuously improving the risk governance structure and framework.

Business andStrategic Risk

Risk of current or prospective impact on the Bank’s earnings, capital, reputation or standing arising from changes in the environment the Bank operates. In and from adverse strategic decisions, improper implementation of decisions or lack of responsiveness to industry, economic or technological changes.

• TheBankhasawell-establishedriskgovernancestructureandteamthatreviewsthe overall strategic risk facing the Bank.• TheBankadoptsappropriatestrategiestobalanceriskandreturntakinginto account changing conditions through the economic cycle and monitoring of economic trends in the market closely and to continuously review the suitability of its risk policies and controls.

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Compliance

The Maybank Cambodia’s Board and its Senior Management continue to demonstrate their commitment towards effective compliance and Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) program.The Bank continues to adhere to the requirements of relevant laws, rules, regulations and regulatory guidelines. The Bank’s commitment is clearly demonstrated through the establishment of strong compliance policies and guidelines, which includes AML/CFT practices, to ensure that the Bank’s non-compliance risks are effectively managed. Such measures help lower the cost of doing business arising from regulatory penalties, AML/CFT investigations and cases, as well as protecting the Bank’s integrity and reputation.

• ForeignAccountTaxComplianceAct(FATCA)

The Bank is committed to comply with the Foreign Account Tax Compliance Act (FATCA); it is a legislation to help counter tax evasion in the United States of America. FATCA creates a new information reporting and withholding regime for payments made to certain foreign financial institutions and other foreign entities. The FATCA requirements came into effect on 1 July 2014. The rationale and spirit of the Act have been embedded into the Bank’s internal processes, procedures and system to reflect the Bank’s commitment to uphold the interest of our customers.

• Anti-MoneyLaundering&CombatingtheFinancingofTerrorism(AML/CFT)

The Bank is committed to establish effective internal controls for AML/CFT and has established a Policy, Procedural Guidelines and Standard Practices on AML/CFT. These policies and guidelines are intended to provide all employees with a standard approach in managing AML/CFT risk. As part of the Bank’s commitment to combat money laundering and financing of terrorism activities, the Bank has embedded a Compliance Officer (CO) to monitor and report any suspicious transactions, ensure sufficient record retention, provide continuous employee training, report to senior management and conduct independent reviews of the internal AML/CFT measures.

• Anti-CorruptionPractices/CodeofEthics

The Bank also upholds integrity as one of its core values and is committed to acting professionally, fairly and with integrity in all its business dealings and relationships. The Bank has established a Code of Ethics & Conduct Policy to ensure a high standard of ethical and professional conduct by all employees. The Bank has also established the Integrity Hotline as a channel to enable the staff to report any incidences of abuse or circumvention of the processes and controls established. All staff is accorded the opportunity to report via the Integrity Hotline with the assurance that it will be dealt with confidentially and that the reporter’s identity is protected.


Sustainability at Maybank means conducting business in a way that enhances performance responsibly - today and over the long-term. We continue to serve the ASEAN communities while strengthening and expanding our operations regionally. Our sustainability journey is a reflection of Maybank’s position as a regional leader in the provision of financial services and one that supports business growth through impact based approaches.

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We are working hard to ensure that our sustainability efforts are aligned with our corporate strategy in order to achieve holistic growth for all our stakeholders. Our sustainability ambition is in line with our mission to humanise financial services which is derived from our business model and how we operate. How we make decisions, how we engage stakeholders and how we report our progress are all main aspects of sustainability governance at Maybank.

We are committed to improving the lives of the societies in which we operate. Around Asia, we try to implement projects that have a positive effect on social capital. In the reporting period, in addition to financial support, close to 25,000 of our employees contributed more than 125,000 volunteer hours and provided their expertise and knowledge, to strengthen various community programs. Maybank Cambodia has been a part of this success.

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In 2014, we continued with our community investments in the areas of education, community empowerment and hardship relief. Our flagship employee volunteerism program, Cahaya Kasih, continued with more than 300 Maybankers contributing their expertise and knowledge to develop and strengthen various communities.

DRIVING EDUCATION AT ALL LEVELSMaybank Child Sponsorship: A Way Out of the Dump

Since its inception in 2012, Maybank Cambodia has sponsored 20 children with the hardest

life situation, but at the same time, with the highest study potential, to pursue education

as a way out of poverty. The sponsorship program entailed a monthly funding allocation to

cover basic food and school support as well as special regular engagement sessions with

Maybankers. In 2014, a new Cambodia CR Challenge was launched to challenge Maybankers’

volunteerism spirit and passion to a higher level of engagement in sustainable and meaningful

initiatives for the community, as well as to empower Maybankers eager to bring about change.

Maybankers volunteer as a team via the Challenge and organized unique initiatives that will

bring about positive impact and results to the children.

COMMUNITY ANDCITIZENSHIPIn order to grow our business, we need to deepen our relationships with the communities we serve, creating enduring connections through our products and services that will assist them in the long term. To achieve that, we invest in programs that empower communities to help them to flourish.

In 2014, Maybank Cambodia was

recognized at the Maybank Group

Awards Nite 2014, receiving the Best CR

Educational Initiative Award. With this

Award, an additional RM20,000 grant

was accorded by the Maybank Group

Foundation, enabling the continuation of

this sponsorship for another term.

Read a Book with Maybank, Enriching Lives through Reading & Learning

Maybank’s flagship employee volunteerism program, Cahaya Kasih encourages Maybankers to come together as agents of change. At the same time, through their involvement, Maybankers establish long-term relationships with stakeholders, promoting trust, fostering greater bond and goodwill. This year, the fifth edition of our Global CR day was themed ‘Inspiring Global Community’. Close to 300 Maybankers reached out to the population living in remote areas where educational services were not readily available and participated in a “Read a Book with Maybank” program at seven villages located in Phnom Penh and Siem Reap.

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COMMUNITY EMPOWERMENTMaybank Vocational Sponsorship Program

This is a continuation from the “Maybank Child Sponsorship: A Way Out of the Dump” program, of which the spirit and philosophy continues, with the expansion and fulfillment of the final

component of this initiative, i.e. equipping the children with vocational skills – children with less aptitude towards formal learning whom must not be ignored, instead options were explored to

equip them with suitable vocational skills that can increase their chances of “survival” in the society, as another way out of the dump. Our program train these students in dress-making to a level

where they can gain employment as a dressmaker or start their own business. The skill training is for 10 months followed by 2 months of small business training to help graduates develop the

skills to successfully fun their own small enterprise.

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For information about Maybank Cambodia’s policies and initiatives in the workplace, please refer to the Human Resource section on pages 42 to 45.

HARDSHIP RELIEFMaybank One Wish, Enriching Many Lives Program

We rolled out the “Maybank One Wish, Enriching Many Lives” program premised on a CR concept aimed to grant the wish of eligible community members in Cambodia who are faced with basic

life difficulties or challenges. As a country, Cambodia is still one of the world’s poorest nations and grinding poverty is a fact of life for many people. Many Cambodians are faced with various life

difficulties and challenges, and for many, they may not have the capacity or capability to seek for assistance. There are issues at times, that people who are faced with genuine hardship are not

heard. Providing access to assistance is the first step to help, of which we look out for initiatives that can provide a community or individual with capability building tools, skills or assistance to

help them overcome their current hardship and benefit them for years to come.

We are constantly working towards providing our people with the tools and support in order for them to perform better. In 2014, we created an inclusive working environment through various employee engagement programs, employee training programs as well as rewarding our people fairly for their work.

PEOPLE

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Focus on Customers

In 2014, we continued on our mission to humanise financial services with the launch of various products and services aimed at our improving the accessibility and efficiency of our services,

reaching out to the financially underserved, and expanding our physical and digital footprint without compromising the security of our customers’ data and information. Moving forward, we are

looking at tapping into the shift in customer behaviour where the social and personal space is intertwined in essence, moving banking closer to the customer.

Access to Finance

As a financial institution, our services provide access to finance that spreads across Asia. We have a well spread out network in Cambodia covering the main Phnom Penh city as well as all the key

provincial towns. We were the first foreign bank which opened a branch in one of the provincial town where only the top two local banks were present. We provided a possible third choice for the

consumers, fulfilling our humanising mission of offering fair terms and pricing for customers, providing people with convenient access to financing as well as serve the community by giving them

a broad range of financial product and service options. Moving forward, we will be embarking on innovative channels to provide easier and faster access to customers.

We are committed to having deep knowledge of our clients, including understanding their social and environmental needs. At the same time, we believe that our business will only thrive when embedded with elements of good governance, social innovation and environmental integrity. Our efforts to-date were made to enhance our services by improving the accessibility and convenience for our customers and to make valuable contributions to the communities where we operate.

ACCESS TO PRODUCTSAND SERVICES

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Maybank in the News

HMTV/CNC: Maybank Cambodia held a prize giving ceremony for the Maybank Children Saving Account Coloring Contest

MYTV/BTV/HMTV/CTN: Launch of Maybank GO Ahead Challenge 2014 in Cambodia.

BTV News/BTV/CNC/CTN/HMTV: Maybank Cambodia launched Maybank Premier Wealth at the official opening ceremony of Maybank’s 18th branch in Cambodia.

HMTV/CNC: About 300 Maybankers in Cambodia participated in the Maybank Global CR Day 2014 with its “Read a Book with Maybank” Program

BTV News/CNC/HMTV: Maybank Cambodia launched the Maybank Rewards Day and “Maybank One Wish, Enriching Many Lives” CR Program at AEON Mall

HMTV/BTV News/CTN: Official opening ceremony of the 17th Branch in Ta Khmao town

BTV/HMTV/MYTV: Special TV documentary of “Maybank Child Sponsorship: A Way Out of the Dump” CR Program by Media Prima Berhad (TV3), Malaysia

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Annual Report 2014

Event Highlights 2014

28 FEBRUARY 2014

The “Bundle of Prosperity” Donation Drive, the first essential items donation drive initiated Maybank group-wide to benefit the community, namely selected disabled homes across countries where Maybank has a presence. Maybank (Cambodia) Plc. donated essential items i.e. rice, flour, sugar, canned food, stationery items and toiletries to the Cambodian Disabled People’s Organisation (CDPO).

17 MARCH 2014

The prize giving ceremony for the Maybank TT Promotional Campaign held from 12 November 2013 to 31 January 2014. Customers who remitted money using Maybank’s TT services during the period were eligible to participate in a lucky draw and stood a chance to win exciting prizes.

2 MARCH 2014

Maybank Cambodia held a prize giving ceremony to announce the grand prize winners of its Yippie Children Account Colouring Contest on 2 March 2014. The Contest was held in line with the Bank’s commitment to inculcate the savings habit among the young. An element of “giving back to the community” through this campaign was incorporated wherein Maybank presented a contribution of USD1,000 to the school of the 1st Prize winner, to support any community service initiative it wants to implement.

1 JUNE 2014

Maybank (Cambodia) Plc. participates in the National Art Competition 2014 held at the CKCC (Cambodia-Korea Cooperation Center) and in collaboration with Global Art Cambodia on 1 June 2014. More than 500 children ranging from 4 to 18 years old, as well as total participants of about 2,000 (consisting of parents and other family members of the contestants) attended the event.

10 JUNE 2014

Media members from Malaysia and a beneficiary from another “Cahaya Kasih” programme were in Camboida for a special documentary filming of “Maybank Child Sponsorship: A Way Out of the Dump”. The filming was part of Media Prima Berhad’s TV3 “Bersamamu: Penuhi Impian” programme which was aired in Malaysia during the month of Ramadhan. Organised incollaboration with the Maybank Foundation, the “Bersamamu” programme aims to highlighthumanitarian stories from around the Southeast Asian region to spread hope and awareness of theplight faced by underprivileged communities.

21 JUNE 2014

Maybank (Cambodia) Plc. participated in the Career Forum 2014 organised by the EuroCham Cambodia. Approximately 15,000 visitors were present at the Forum.

9 JUNE 2014

Maybank Cambodia Plc. opened a new branch in Ta Khmao, Kandal Province, reinforcing the Bank’s commitment to expand its footprint across the nation and provide the Cambodian community with convenient access to banking services. The branch was officially launched by H.E. Kim Vada, Director General of Banking Supervision, National Bank of Cambodia at a special ceremony attended by senior government officials of Ta Khmao province, clients and business partners. Also present at the event were H.E. Phay Bun Chhoeun, Governor of Kandal Province; H.E. Raszlan Abdul Rashid, Ambassador of Malaysia to the Kingdom of Cambodia as well as Mr. Lee Tien Poh, CEO and Director of Maybank (Cambodia) Plc.

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Event Highlights 2014

24 JUNE 2014

The top three candidates from the Maybank GO Ahead. Challenge 2014 National Qualifier Level who have earned places in the International Grand Final in Kuala Lumpur, Malaysia, where they face challengers from 14 countries around the world. The candidates faced a series of challenges, designed to test their business acumen, problem-solving skills, mathematical ability, and capacity to work in high-pressure environments. At stake were cash prizes of USD72,000, as well as the chance to join the prestigious Global Maybank Apprentice Programme, a bespoke international mentorship designed to nurture Maybank’s future leaders.

3 SEPTEMBER 2014

Maybank (Cambodia) Plc. launched the Maybank Vocational Sponsorship program, sponsoring 10 students who will be equipped with vocational skills in dress making with the People Improvement Organization (“PIO”) in a 12-month vocational programme. Ms. Pollie Sim, CEO International, Ms. Noun Phymean, Founder of PIO and Ms. Qazreen Chan, Head of Corporate Affairs & Services were present to officiate the opening ceremony. The sponsorship included support for the hiring of teachers, workshop materials, electricity and equipment. This is an extension to the existing “Maybank Child Sponsorship: A Way Out of the Dump” initiative.

15 SEPTEMBER 2014

Maybank (Cambodia) Plc. launched the Maybank Service Credo, a service commitment to passionately create consistent customer delight. In conjunction with the launch, a G.U.E.S.T. Challenge and Product Knowledge Competition (KYC/KYP program) were also announced.

27 SEPTEMBER 2014

Maybank (Cambodia) Plc. employees participated in the Maybank Group Global CR Day at seven villages located in Phnom Penh and Siem Reap. The event, led by Mr. Lee Tien Poh, CEO of Maybank (Cambodia) Plc. and involving close to 300 staff saw the team reaching out to the population living in remote areas where educational services are not available through its “Read a Book with Maybank. Enriching Lives through Reading & Learning” programme.

11 OCTOBER 2014

Maybank (Cambodia) Plc. launched a Maybank Rewards Day as part of its initiatives to reward loyal customers. The event was held on 11th and 12th October 2014 at the popular AEON Mall in Phnom Penh. The Maybank Rewards Day also witnessed the launch of Maybank Cambodia’s “One Wish, Enriching Many Lives” programme. This is a first-of-its-kind programme aimed at helping loyal customers to help their own communities. Customers only need to make a wish for the betterment of the communities they care for, and Maybank Cambodia will strive to fulfill the wish.

18 DECEMBER 2014

Maybank (Cambodia) Plc. launched its latest service, Maybank Premier Wealth, a new branded segment offering designed to cater to affluent customers through personalized and comprehensive financial solutions. The Maybank Premier Wealth was launched at a special ceremony in conjunction with the Official Opening Ceremony of Maybank’s 18th Branch in Cambodia. This important milestone was inaugurated by H.E. Kim Vada, Director General, Banking Supervision, National Bank of Cambodia and Ms. Pollie Sim, CEO International.

29 DECEMBER 2014

Maybank (Cambodia) Plc. opened three new branches on 29 December 2014, bringing its network in the country to 21 branches. The new branches are located in Ou Ruessei within the Phnom Penh city and in the provincial towns of Takeo and Suong. The opening of new branches is part of Maybank (Cambodia) Plc.’s strategic plan to expand its footprint in the country and bring to the market its unique and innovative range of products and services for the benefit of the Cambodian people.

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FINANCIALSTATEMENTS

91 Report of the Board of Directors

92 Audited Financial Statements

93 Independent Auditors’ Report

94 Balance Sheet

95 Income Statement

96 Statement of Changes in Equity

97 Statement of Cash Flows

98 Notes to the Financial Statements

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Report of the Board of Directors

SHARE CAPITAL

The total share capital of the Bank as at 31 December 2014 is US$50,000,000 (KHR203.75 billion) (2013:US$50,000,000 or KHR199.75 billion).

RESERVES AND PROVISIONS

There were no material movements to or from reserves and provisions during the period other than those disclosed in the financial statements.

BAD AND DOUBTFUL LOANS AND ADVANCES

Before the financial statements of the Bank were drawn up, the Directors took reasonable steps to ascertain that actions had been taken in relation to writing off of bad loans and advances and the provision of allowance for loan losses, and satisfied themselves that all known bad loans and advances had been written off and adequate allowance had been made for bad and doubtful loans and advances.

At the date of this report, the Directors are not aware of any circumstances, which would render the amount written off for bad loans and advances, or the amount of allowance for loan losses in the financial statements of the Bank, inadequate to any material extent.

CURRENT ASSETS

Before the financial statements of the Bank were drawn up, the Directors took reasonable steps to ensure that any current assets, other than debts, which were unlikely to be realized in the ordinary course of business at their value as shown in the accounting records of the Bank had been written down to an amount which they might be expected to realize.

At the date of this report, the Directors are not aware of any circumstances, which would render the values attributed to the current assets in the financial statements of the Bank misleading or inappropriate in any material respect.

VALUATION METHODS

At the date of this report, the Directors are not aware of any circumstances that have arisen which would render adherence to the existing method of valuation of assets and liabilities in the financial statements of the Bank misleading or inappropriate in any material respect.

The Board of Directors of Maybank (Cambodia) Plc. (“the Bank”) presents its report and the Bank’s financial statements as at 31 December 2014 and for the year ended.

THE BANK

Maybank in Cambodia was established since 1993 and operated as Phnom Penh Branch (“the Branch”) of Malayan Banking Berhad (“MBB”), a bank incorporated in Malaysia.

On 2 April 2012, the Branch was incorporated as Maybank (Cambodia) Plc., a public limited company and a subsidiary of MBB. The Bank is duly incorporated under the Cambodian Law on Commercial Enterprises and licensed under the regulations of the National Bank of Cambodia (“NBC”) with a registered capital of US$50 million (KHR200 billion).

The Bank is engaged in the provision of comprehensive banking and related financial services in the Kingdom of Cambodia in accordance with Banking License No. 02 issued by the NBC for an indefinite period.

The Bank’s registered office address is at No. 4B, Street 114 (Kramoun Sar), Sangkat Phsar Thmey, Phnom Penh, Kingdom of Cambodia.

There is no significant change in the principal activities of the Bank during the year.

FINANCIAL RESULTS

The financial results of the Bank for the year then ended were as follows:

For the year ended31 December 2014

US$

For the year ended 31 December 2013

US$

Profit before tax 13,570,046 11,757,667

Income tax expense (2,813,191) (1,978,157)

Net profit for the year 10,756,855 9,779,510

KHR’000 equivalent 43,834,186 39,069,143

CONTINGENT AND OTHER LIABILITIES

At the date of this report, there is:

• NochargeontheassetsoftheBankwhichhasarisensincetheendoftheperiodwhich secures the liabilities of any other person; and

• NocontingentliabilityinrespectoftheBankthathasarisensincetheendoftheperiod other than in the ordinary course of business.

No contingent or other liability of the Bank has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the period which, in the opinion of the Directors, will or may have a material effect on the ability of the Bank to meet its obligations as and when they become due.

EVENTS AFTER THE BALANCE SHEET DATE

No significant events occurred after the balance sheet date requiring disclosure or adjustment other than those already disclosed in the accompanying notes to the financial statements.

THE BOARD OF DIRECTORS

The members of the Board of Directors during the period and at the date of this report are:

Cheah Teik Seng Independent non-executive Chairman

Spencer Lee Tien Chye Independent non-executive director

Datuk R. Karunakaran Independent non-executive director

Hamirullah Boorhan Non-independent non-executive director

Pollie Sim Sio Hoong Non-independent non-executive director, appointed on 28 February 2014

Foong Seong Yew Non-independent non-executive director, appointed on 10 March 2013 and resigned on 28 February 2014

Lee Tien Poh Non-independent executive director, resigned on 1 March 2015

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Audited Financial Statements

AUDITOR

Ernst & Young (Cambodia) Ltd. is the auditor of the Bank.

DIRECTORS’ BENEFITS

During and at the end of the period, no arrangement existed, to which the Bank was a party, whose object was to enable the Directors of the Bank to acquire benefits by means of the acquisition of shares in or debentures of the Bank or any other corporate body.

No Director of the Bank has received or become entitled to receive any benefit by reason of a contract made by the Bank or with a firm which the Director is a member, or with a Bank which the Director has a material financial interest other than those disclosed in the financial statements.

STATEMENT OF BOARD OF DIRECTORS’ RESPONSIBILITY IN RESPECT OF THE FINANCIAL STATEMENTS

The Board of Directors is responsible for ensuring that the financial statements give a true and fair view of the financial position of the Bank as at 31 December 2014, and its financial performance and cash flows for the year then ended. In preparing these financial statements, the Board of Directors oversees preparation of these financial statements by management who is required to:

• Adoptappropriateaccountingpolicieswhicharesupportedbyreasonableandprudentjudgmentsandestimatesandthenapplythemconsistently;

• ComplywithregulationsandguidelinesissuedbytheNBCandCambodianAccountingStandardsor,iftherehasbeenanydepartureintheinterestsoffairpresentation,ensurethishasbeen appropriately disclosed, explained and quantified in the financial statements;

• Maintainadequateaccountingrecordsandaneffectivesystemofinternalcontrols;

• preparethefinancialstatementsonagoingconcernbasisunlessitisinappropriatetoassumethattheBankwillcontinueoperationsintheforeseeablefuture;and

• SetoverallpoliciesfortheBank,ratifyalldecisionsandactionsbythemanagementthathaveamaterialeffectontheoperationsandperformanceoftheBank,andensuretheyhavebeen properly reflected in the financial statements.

Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Bank and to ensure that the accounting records comply with the registered accounting system. It is also responsible for safeguarding the assets of the Bank and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Board of Directors confirms that the Bank has complied with these requirements in preparing the financial statements.

APPROVAL OF THE FINANCIAL STATEMENTS

We hereby approve the accompanying financial statements which give a true and fair view of the financial position of the Bank as at 31 December 2014, and its financial performance and cash flows for the year ended in accordance with Cambodian Accounting Standards and relevant regulations and guidelines issued by the National Bank of Cambodia.

On behalf of the Board of Directors

CHEAH TEIK SENG Chairman

Phnom Penh, Kingdom of Cambodia

5 March 2015

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Independent Auditors’ Reportto the Shareholder of Maybank (Cambodia) Plc.

We have audited the accompanying financial statements of Maybank (Cambodia) Plc. (“the Bank”), which comprise the balance sheet as at 31 December 2014 and the income statement, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility For The Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with Cambodian Accounting Standards and relevant regulations and guidelines issued by the National Bank of Cambodia, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Cambodian International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the Bank as at 31 December 2014, and its financial performance and cash flows for the year then ended in accordance with Cambodian Accounting Standards and relevant regulations and guidelines issued by the National Bank of Cambodia.

Ernst & Young (Cambodia) Ltd.Certified Public AccountantsRegistered Auditors

Phnom Penh, Kingdom of Cambodia

5 March 2015

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Balance Sheetas at 31 December 2014

Notes

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

ASSETS

Cash on hand 3 46,814,129 190,767,576 28,480,051 113,777,804

Balances with the National Bank of Cambodia 3 136,013,622 554,255,510 122,591,679 489,753,758

Balances with other banks 4 62,209,348 253,503,093 41,108,776 164,229,560

Amounts due from Parent Company 5 296,276 1,207,325 323,792 1,293,549

Amounts due from affiliates 6 893,807 3,642,264 618,190 2,469,669

Loans and advances 7 342,259,406 1,394,707,079 261,429,845 1,044,412,231

Property and equipment 8 5,850,205 23,839,585 4,363,442 17,431,951

Software costs 9 371,846 1,515,272 52,763 210,788

Deferred tax asset - net 12 592,667 2,415,118 1,004,013 4,011,032

Other assets 10 1,560,119 6,357,486 1,605,820 6,415,251

TOTAL ASSETS 596,861,425 2,432,210,308 461,578,371 1,844,005,593

LIABILITIES AND SHAREHOLDER’S EQUITY

Liabilities

Deposits from customers 11 361,059,275 1,471,316,546 296,683,606 1,185,251,006

Deposits from other banks 11 78,082,020 318,184,232 31,978,963 127,755,957

Amounts due to Parent Company 5 69,300,705 282,400,373 58,964,025 235,561,280

Provision for income tax 12 3,180,360 12,959,967 4,024,825 16,079,176

Other liabilities 13 8,585,351 34,985,305 4,030,093 16,100,222

Total liabilities 520,207,711 2,119,846,423 395,681,512 1,580,747,641

SHAREHOLDER’S EQUITY

Share capital 15 50,000,000 203,750,000 50,000,000 199,750,000

Retained earnings 26,653,714 108,613,885 15,896,859 63,507,952

Total shareholder’s equity 76,653,714 312,363,885 65,896,859 263,257,952

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY 596,861,425 2,432,210,308 461,578,371 1,844,005,593

The attached notes 1 to 25 form part of these financial statements

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Income Statementfor the year ended 31 December 2014

Notes



US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Interest income 16 26,369,576 107,456,022 23,093,084 92,256,871

Interest expense 17 (6,031,044) (24,576,504) (4,484,223) (17,914,471)

Net interest income 20,338,532 82,879,518 18,608,861 74,342,400

Fee and commission income 18 3,745,168 15,261,560 3,043,093 12,157,157

Fee and commission expense (161,988) (660,101) (141,979) (567,206)

Net fee and commission income 3,583,180 14,601,459 2,901,114 11,589,951

Other income 78,475 319,786 47,832 191,089

Net operating income 24,000,187 97,800,763 21,557,807 86,123,440

General and administration expenses 19 (11,311,497) (46,094,350) (10,055,627) (40,172,230)

Reversal of (provision for) loan losses 7 347,114 1,414,490 (413,787) (1,653,080)

Recovery from written-off loans 534,242 2,177,036 669,274 2,673,750

Profit before tax 13,570,046 55,297,939 11,757,667 46,971,880

Income tax expense 12 (2,813,191) (11,463,753) (1,978,157) (7,902,737)

Net profit for the year 10,756,855 43,834,186 9,779,510 39,069,143


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Statement of Changes in Equityfor the year ended 31 December 2014

Share capital

US$

Retained earnings

US$

Total

US$

Balance as at 1 January 2014 50,000,000 15,896,859 65,896,859

Net income for the year - 10,756,855 10,756,855

Balance as at 31 December 2014 50,000,000 26,653,714 76,653,714

KHR’000 equivalent (Note 2.1.5) 203,750,000 108,613,885 312,363,885

Balance as at 1 January 2013 50,000,000 6,117,349 56,117,349

Net income for the year - 9,779,510 9,779,510

Balance as at 31 December 2013 50,000,000 15,896,859 65,896,859

KHR’000 equivalent (Note 2.1.5) 199,750,000 63,507,952 263,257,952


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Statement of Cash Flowsfor the year ended 31 December 2014

Notes



US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Net cash from (used in) operating activities 20 29,588,181 120,571,839 (2,272,830) (9,079,957)

Cash flows from investing activitiesAcquisition of:

Property and equipment 8 (2,969,203) (12,099,502) (2,562,547) (10,237,375)

Software costs 9 (344,274) (1,402,917) (48,476) (193,662)

Proceeds from disposal of property and equipment - - 6,050 24,169

Net cash used in investing activities (3,313,477) (13,502,419) (2,604,973) (10,406,868)

Cash flows from financing activity

Borrowings from Parent Company 5 5,250,000 21,393,750 10,000,000 39,950,000

Increase in cash and cash equivalents 31,524,704 128,463,170 5,122,197 20,463,175

Cash and cash equivalents at beginning of year 145,621,873 581,759,381 140,499,676 561,296,206

Foreign currency difference - 11,649,752 - -

Cash and cash equivalents at end of year 3 177,146,577 721,872,303 145,621,873 581,759,381


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Notes to the Financial Statementsas at 31 December 2014 and for the year then ended

1. CORPORATE INFORMATION

Establishment and operations

Maybank in Cambodia was established since 1993 and operated as Phnom Penh Branch (“the Branch”) of Malayan Banking Berhad (“Parent Company” or “MBB”), a bank incorporated in Malaysia.

On 2 April 2012, the Branch was incorporated as Maybank (Cambodia) Plc., (“the Bank”) a public limited company and a subsidiary of the MBB. The Bank is duly incorporated under the Cambodian Law on Commercial Enterprises and licensed under the regulations of the National Bank of Cambodia (“NBC”) with a registered capital of US$50 million equivalent to KHR200 billion.

The Bank is engaged in the provision of comprehensive banking and related financial services in the Kingdom of Cambodia in accordance with Banking License No. 02 issued by the NBC for an indefinite period.

Share capital

The total share capital of the Bank as at 31 December 2014 is US$50,000,000 (KHR203.75 billion) (2013: US$50,000,000 or KHR199.75 billion).

Board of Directors

The members of the Board of Directors during the year and at the date of this report are:

Cheah Teik Seng Independent, non-executive Chairman

Spencer Lee Tien Chye Independent, non-executive director

Datuk R. Karunakaran Independent, non-executive director

Hamirullah Boorhan Non-independent, non-executive director

Pollie Sim Sio Hoong Non-independent non-executive director, appointed on 28 February 2014

Foong Seong Yew Non-independent non-executive director, appointed on 10 March 2013 and resigned on 28 February 2014

Lee Tien Poh Non-independent executive director, resigned on 1 March 2015

Location

The Bank’s registered office address is at No. 4B, St. 114, (Kramoun Sar) Sangkat Phsar Thmey, Khan Daun Penh, Phnom Penh, Kingdom of Cambodia. As at 31 December 2014, the Bank has a total of twenty-one (21) branches located in Phnom Penh, Siem Reap, Sihanoukville, Battambang, Tboung Khmum, Kampong Cham, Banteay Meanchey and Takeo.

Employees

As at 31 December 2014, the Bank has a total of 308 employees (2013: 291 employees).

Approval of the financial statements

The financial statements were authorized for issue by the Board of Directors on 5 March 2015.

2. ACCOUNTING POLICIES

2.1 Basis of preparation

2.1.1 Statement of compliance

The financial statements have been prepared in accordance with Cambodian Accounting Standards (“CAS”) and the guidelines of the NBC on the preparation and presentation of financial statements.

The accompanying financial statements, including their utilization, are not designed for those who are not informed about the Kingdom of Cambodia’s accounting principles, procedures and practices and furthermore are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries other than the Kingdom of Cambodia.

The accounting policies set out below have been consistently applied by the Bank.

2.1.2 Basis of measurement

The financial statements have been prepared based on the historical cost convention.

2.1.3 Fiscal year

The Bank’s fiscal year starts on 1 January and ends on 31 December.

2.1.4 Functional and presentation currency

The national currency of Cambodia is the Khmer Riel (“KHR”). However, the Bank transacts and maintains its accounting records primarily in United States dollar (“US$”). Management has determined the US$ to be the Bank’s measurement and presentation currency as it reflects the economic substance of the underlying events and circumstances of the Bank. This is in accordance with Prakas No. B7-07-164 dated 13 December 2007.

Transactions in foreign currencies (“FC”) are translated into US$ at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in currencies other than US$ at the balance sheet date are translated into US$ at the rates of exchange ruling at that date. Exchange differences arising on translation are recognized in the income statement.

2.1.5 Translation of US$ into KHR

The translation of the US$ amounts into KHR is presented in the financial statements to comply with the Cambodian Law on Corporate Accounts, their Audit and the Accounting Profession dated 8 July 2002 and relevant Prakas of NBC, using the closing exchange rate of KHR 4,075: US$1 ruling at the reporting date (2013: KHR 3,995: US$1), as announced by NBC. Such translation should not be construed as a representation that the US$ amounts represent, or have been or could be converted into KHR at that or any other rate.

2.2 Significant accounting judgments and estimates

In applying accounting policies, management has used its judgment and made estimates in determining the amounts recognized in the financial statements, as follows:

2.2.1 Operating lease

The Bank has entered into lease on premises used for its operations. The Bank has determined, based on the evaluation of the terms and conditions of the lease agreements (i.e., the lease does not transfer ownership of the asset to the lessee by the end of the lease term and lease term is not for the major part of the asset’s economic life), the lessor retains all the significant risks and rewards of ownership of these properties.

2.2.2 Functional currency

CAS 21 requires management to use its judgment to determine the entity’s functional currency such that it most faithfully represents the economic effects of the underlying transactions, events and conditions that are relevant to the entity. In making this judgment, the Bank considers the following:

a) The currency that mainly influences prices for financial instruments and services (this will often be the currency in which prices for its financial instruments and services are denominated and settled);

b) The currency in which funds from financing activities are generated; and

c) The currency in which receipts from operating activities are usually retained.

2.2.3 Allowance for loan losses

When preparing the financial statements, the quality of loans and advances is reviewed and assessed to determine their classification and level of allowance for loan losses, as more fully disclosed in Note 2.3.5.

2.2.4 Recognition of deferred tax assets

Deferred tax assets are recognized for all unused tax losses and temporary differences to the extent that it is probable that future taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and level of future taxable income together with future tax planning strategies.

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Notes to the Financial Statements (continued)as at 31 December 2014 and for the year then ended

2. ACCOUNTING POLICIES (continued)

2.2 Significant accounting judgments and estimates (continued)

2.2.5 Impairment of non-financial assets

An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The Bank assesses impairment on assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The factors that the Bank considers important which could trigger an impairment review include the following:

• Significantunderperformancerelativetoexpectedhistoricalor projected future operating results;

• Significantchangesinthemannerofuseoftheacquiredassets or the strategy for overall business; and

• Significantnegativeindustryoreconomictrends.

2.2.6 Estimated useful lives of property and equipment, and software costs

The Bank estimates the useful lives of its property and equipment, and software costs. This estimate is reviewed periodically to ensure that the period of depreciation and amortization are consistent with the expected pattern of economic benefits from the items of property and equipment, investment properties and software costs.

2.3 Summary of significant accounting policies

2.3.1 Change in accounting policies

The accounting policies and methods of calculation applied by the Bank are consistently applied and there were no changes during the year.

2.3.2 Segment information

The Bank operates within one business segment, commercial banking, and within one geographical segment, the Kingdom of Cambodia.

2.3.3 Cash and cash equivalents

For cash flow statement purposes, cash and cash equivalents consist of cash and bank balances, demand deposits and short-term highly liquid investments with original maturities of three months or less when purchased, and that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.

2.3.4 Loans and advances

All loans and advances to customers are stated in the balance sheet at the amount of principal and accrued interest receivable (net of interest- in-suspense), less any amounts written off, and allowance for loan losses. Short-term loans are those with a repayment date within one year from the date the loan was advanced. Long-term loans are those with a final repayment date of more than one year from the date the loan was advanced.

Loans are written off when there is no realistic prospect of recovery. Recoveries of loans and advances previously provided for decrease the amount of the provision for loan losses in the income statement.

Loans and advances classified as substandard, doubtful or loss are considered as non-performing loans.

2.3.5 Allowance for loan losses

Allowance for loan losses is made with regard to specific risks and relates to those loans and advances that have been individually reviewed and specifically identified as special mention, sub-standard, doubtful or loss. In addition, a general allowance is also maintained for loans classified as normal.

The Bank follows the mandatory credit classification required by Prakas No. B7-09-074 dated 25 February 2009, which is to classify their loan portfolio into five classes. The Prakas also requires that minimum

general and specific allowances be provided depending on loan classification.

The allowance is based on a percentage of total outstanding loans and advances (including accrued interest), net of interest-in-suspense as follows:

The Bank provides additional specific allowance beyond what is required by the Prakas to more fully reflect the known financial condition of the borrowers to the Bank. Interest-in-suspense accruing to non-performing loans is not considered for purposes of the Bank’s loan loss analysis.

An uncollectible loan or portion of a loan classified as bad is written off after taking into consideration the realizable value of the collateral, if any, when in the judgment of the management, there is no prospect of recovery.

2.3.6 Other credit-related commitments

In the normal course of business, the Bank enters into other credit- related commitments including loan commitments, letters of credit and guarantees. The accounting policy and provision methodology are similar to originated loans as disclosed above. Allowance is raised against other credit related commitments when losses are considered probable.

2.3.7 Other assets

Other receivables included in other assets are carried at anticipated realizable values. An estimate is made for doubtful debts based on a review of all outstanding amounts as at the balance sheet date.

2.3.8 Property and equipment

(i) Items of property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Where an item of property comprises major components having different useful lives, they are accounted for as separate items of property and equipment.

(ii) Depreciation of property and equipment is charged to the income statement on a straight-line basis over the estimated useful lives of the individual assets at the following rates:

Leasehold improvements 20%

Office equipment 25%

Furniture and fittings 20%

Motor vehicles 25%

(iii) Subsequent expenditure relating to an item of property and equipment that has already been recognized is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing asset, will flow to the Bank. All other subsequent expenditure is recognized as an expense in the year in which it is incurred.

(iv) Gains or losses arising from the retirement or disposal of an item of property and equipment are determined as the difference between the estimated net disposal proceeds and the carrying amount of the assets and are recognized in the income statement on the date of retirement or disposal.

(v) Fully depreciated property and equipment are retained in the financial statements until disposed of or written off.

Classification Number of days past dueAllowance percentage

General allowance

Normal Less than 30 days 1%

Specific allowance

Special mention 30 days or more but less than 90 days 3%

Substandard 90 days or more but less than 180 days 20%

Doubtful 180 days or more but less than 360 days 50%

Loss 360 days or more 100%

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2.3 Summary of significant accounting policies (continued)

2.3.8 Property and equipment (continued)

(vi) The carrying amounts of property and equipment are reviewed for impairment when there is an indication that the assets might be impaired. Impairment is measured by comparing the carrying values of the assets with their recoverable amounts. An impairment loss is charged to the income statement immediately.

(vii) Reversal of impairment losses recognized in prior years is recorded where there is an indication that the impairment losses recognized for the asset no longer exist or have decreased. The reversal is recognized to the extent of the carrying amount of the asset that would have been determined (net of amortization and depreciation) had no impairment loss been recognized. The reversal is recognized in the income statement immediately.

2.3.9 Software costs

Software costs that are paid for by the Bank are stated at cost less accumulated amortization and impairment losses, if any. Software costs are amortized on a straight-line method basis at the rate of 20% per annum.

2.3.10 Deposits from customers and other banks

Deposits from customers and other banks are stated at placement value.

2.3.11 Other liabilities

Other liabilities are stated at cost.

2.3.12 Provisions for liabilities

Provisions for liabilities are recognized when the Bank has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation.

2.3.13 Income tax

(i) Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amounts expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted at the balance sheet date.

(ii) Deferred income tax

Deferred income tax is provided using the balance sheet liability method on temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amount for financial reporting purposes.

Deferred income tax liabilities are recognized for all taxable temporary differences, except where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction affects neither the accounting profit nor taxable profit or loss.

Deferred income tax assets are recognized for all deductible temporary differences to the extent that it is probable that future taxable profits will be available against which these differences can be utilized, except where the deferred income tax arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred income tax assets is reviewed

at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. Unrecognized deferred income tax assets are re-assessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred income tax assets to be recovered.

2.3.14 Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. This is not generally the case with master netting agreements, and the related assets and liabilities are presented gross in the balance sheet.

2.3.15 Recognition of income and expense

(i) Interest income

Interest income is recognized on an accrual basis.

Interest income on overdraft, term loans and other loans is recognized on a daily accrual basis. Where a loan becomes non- performing, the recording of interest is suspended until it is realized on a cash basis. Loans are deemed to be non- performing where repayments are in arrears for ninety days or more.

(ii) Fee and commission income

Income from the various activities of the Bank is accrued using the following bases:

1) Loan arrangement fees and commissions on services and facilities extended to customers are recognized on the occurrence of such transactions;

2) Commitment fees and guarantee fees on services and facilities extended to customers are recognized as income over the period in which the services and facilities are extended;

3) Service charges and processing fees are recognized when the service is provided.

(iii) Interest expense

Interest expense on deposits of customers, settlement accounts of other banks and borrowings are recognized on an accrual basis.

(iv) Fee and commission expense

Fee and commission expense is recognized as incurred.

2.3.16 Operating leases

Payments made under operating leases are recognized in the income statement on a straight-line basis over the term of the lease.

2.3.17 Related parties

Parties are considered to be related if the Bank has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions, or vice-versa, or where the Bank and the party are subject to common control or significant influence. Related parties may be individuals or corporate entities and include close family members of any individual considered to be a related party.

Related parties, as defined in Articles 49 and 50 of the Cambodian Law on Banking and Financial Institutions, include the following:

(i) Any person holding directly or indirectly at least ten percent (10%) of the capital or voting rights;

(ii) Any company of which the Bank directly or indirectly holds at least 10% of the capital or voting rights;

(iii) Any individual who participates in the administration, direction, management or internal control; and

(iv) The external auditors.

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3. BALANCES WITH THE NATIONAL BANK OF CAMBODIA

Reserve requirement

Under NBC Prakas No. B7-012-140 dated 13 September 2012, banks are required to maintain certain cash reserves with the NBC in the form of compulsory deposits, computed at 8.00% and 12.50% of customer deposits in KHR and in foreign currency, respectively. The statutory deposits on customers’ deposits fluctuate depending on the level of the customers’ deposits.

Capital guarantee

Under NBC Prakas No. B7-01-136 dated 15 October 2001, banks are required to maintain a statutory deposit of 10.00% of registered capital with NBC. This deposit is not available for use in the Bank’s day-to-day operations but is refundable when the Bank voluntarily ceases to operate the business in Cambodia.

For purposes of preparing the statement of cash flows, cash and cash equivalents comprise the following:

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Current accounts in US$ 60,800,830 247,763,382 51,384,722 205,281,964

Current accounts in KHR 2,132 ,187 8,688,663 2,706,342 10, 811 , 837

Term deposits in US$ 17,080,000 69,601,000 26,000,000 103,870,000

Statutory deposits:

Reserve requirement 51,000,605 207,827,465 37,500,615 149,814,957

Capital guarantee 5,000,000 20,375,000 5,000,000 19,975,000

136,013,622 554,255,510 122,591,679 489,753,758

(i) These term deposits are unrestricted and have original maturities of three months or less.

2014 2013

US$

KHR’000 equivalent

(Note 2.1.5) US$


(Note 2.1.5)

Cash on hand 46,814,129 190,767,576 28,480,051 113,777,804

Balances with the NBC:

Current accounts 62,933,017 256,452,045 54,091,064 216,093,801

Term deposits (i) 14,000,000 57,050,000 26,000,000 103,870,000

Balances with other banks:

Settlement accounts 537,420 2,189,986 821,407 3,281,520

Term deposits (i) 51,671,928 210,563,107 35,287,369 140,973,038

Amounts due from Parent Company:


Amounts due from affiliates Settlement accounts 893,807 3,642,264 618,190 2,469,669

Total cash and cash equivalents 177,146, 577 721,872,303 145,621,873 581,759,381


2.3 Summary of significant accounting policies (continued)

2.3.18 Fiduciary assets

Assets held in trust or in a fiduciary capacity are not reported in the financial statements since they are not the assets of the Bank.

2.3.19 Rounding of amounts

Except as indicated otherwise, amounts in the financial statements have been rounded off to the nearest dollar and nearest thousands (“KHR’000”) for US$ and KHR amounts, respectively.

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4. BALANCES WITH OTHER BANKS

2014 2013

US$


(Note 2.1.5) US$


(Note 2.1.5)

Settlement accounts with overseas banks 488,764 1,991,713 788,303 3,149,270

Settlement account with a local bank 48,656 198,273 33,104 132,250

Term deposits with a local bank 61,671,928 251,313,107 40,287,369 160,948,040

62,209,348 253,503,093 41,108,776 164,229,560

Local settlement accounts maintained locally do not earn interest while those maintained outside Cambodia earn interest at rates ranging from 0.15%per annum (2013: 0.10% to 0.15% per annum).

Annual interest rate on term deposits with a local bank ranged from 0.60% to 2.50% (2013: 1.00% to 1.30%).

6. AMOUNTS DUE FROM AFFILIATES

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Maybank New York 658,582 2,683,722 607,505 2,426,982

Maybank London 235,225 958,542 10,685 42,687

893,807 3,642,264 618,190 2,469,669

The Bank maintains the above settlement accounts with Maybank overseas branches.

5. AMOUNTS DUE FROM (TO) PARENT COMPANY

(i) Short-term borrowing facilities from Parent Company have average terms of one to three months. Long-term borrowing facilities have average terms of up to three years.

These borrowings bear interest at rates ranging from 0.35% to 1.97% during the year (2013: 1.31% to 1.48%).

On 30 December 2014, the NBC approved the subordinated debt agreement between the Bank and Parent Company. In January 2015, the Parent Company provided subordinated debt to the Bank amounting to US$30.00 million.

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Amount due from Parent Company


Amounts due to Parent Company

Settlement accounts 8,253,065 33,631,240 3 ,171 , 804 12 ,671 , 357

Borrowings (i)

Short-term 31 ,000,000 126,325,000 10,000,000 39,950,000

Long-term 30,000,000 122,250,000 45,750,000 182 ,771 , 250

Interest payable 47,640 1 9 4 ,1 3 3 42 , 221 1 6 8 , 6 7 3

69,300,705 282,400,373 58,964,025 235,561, 280

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7. LOANS AND ADVANCES

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Commercial lending:

Term loans 63,605,103 259,190,795 4 5 , 6 7 1 , 5 73 182,457,934

Overdraft 59,958,575 244, 331,193 53, 860,730 215 ,173 ,616

Trade financing 23,282,990 94, 878,185 10 ,794,666 43,124,691

146,846,668 598,400,173 110,326,969 440,756,241

Consumer lending:

Term loans 104,030,583 423,924,626 71, 591, 866 286,009,505

Residential mortgages 54,899,405 223,715,075 58, 510, 370 233,748,928

Overdraft 42,407,452 172 ,810,367 29, 467,601 1 17,723,067

Staff related loans 4,438,441 18,086,647 2 ,1 8 7, 3 0 1 8,738, 267

205,775, 881 838,536,715 1 6 1 , 75 7,1 3 8 646, 219,767

Gross loans and advances 352,622,549 1,436,936,888 272,084,107 1,086,976,008

Net interest receivable:

Accrued interest receivable 1 ,618 , 570 6,595,673 1, 206,951 4 , 8 2 1 , 7 6 9

Interest in suspense (1,094,027) (4,458,162) (626,413) (2,502,520)

524,543 2,137, 511 580,538 2, 319, 249

Total gross loans and advances and net interest receivable 353,147,092 1,439,074,399 272,664,645 1,089, 295, 257

Allowance for loan losses:

Specific (7,539,617) (30,723,939) (8,689,404) (34,714,169)

General (3,348,069) (13,643,381) (2,545,396) (10,168,857)

(10,887,686) (44,367,320) (11,234,800) (44,883,026)

Loans and advances – net 342, 259,406 1,394,707,079 261, 429, 845 1,044, 412, 231

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Wholesale/retail 154,285,093 628,711,754 153,053,286 611 , 447, 878

Consumers 71,769,526 292,460,818 69,166,495 276,320,148

Manufacturing 35,223,046 143,533,912 16,451,238 65,722,696

Financial services 33,503,609 136,527,207 3,962,806 15, 831,410

Construction 15,606,516 63,596,553 2,941,257 1 1 ,750,322

Import/export 10,667,385 43,469,594 6,138,562 24,523,555

Agriculture 4,856,776 19,791,362 8,641,633 34,523,324

Energy 2,141,656 8,727,248 2,198,401 8,782,612

Others 24,568,942 100,118,440 9,530,429 38,074,063

352,622,549 1,436,936,888 272,084,107 1,086,976,008

Further analysis of loans and advances follow:

(a) Analysis of loan portfolio by industrial sector of the Bank is as follows:

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7. LOANS AND ADVANCES (continued)

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

US$ 352,622,549 1,436,936, 888 272,084,107 1,086,976,008

Residents 352,622,549 1,436,936, 888 272,084,107 1,086,976,008

Related parties 140,093 570, 879 138,064 551 , 566

Non-related parties 352,482,456 1,436,366,009 271,946,043 1,086, 424, 442

352,622,549 1,436,936,888 272,084,107 1,086,976,008

Large exposures 64,657, 231 263, 478 , 216 32,992,203 1 3 1 , 803 , 851

Non-large exposures 287,965, 318 1 ,173 , 458 ,672 239,091,904 955,1 7 2 ,1 5 7

352,622,549 1,436,936,888 272,084,107 1,086,976,008

(b) For analysis of loans and advances by maturity, refer to Note 14 on Maturity profile.

(c) Analyses of loans and advances by currency, residency, relationship, exposure and interest rates are as follows:

Large exposures of off-balance sheet items aggregated to US$14.16million as at 31 December 2014 (2013: US$5.59 million).

2014 2013

Annual interest rates:

Overdraft 5.25% - 11.25% 5.25% - 11.25%

Loans 7.75% - 12.00% 7.75% - 12.00%

Trust receipts 7.50% - 10.00% 7.50% - 10.00%

Staff loans 3.50% 3.50%

(d) Analysis of loans and advances by performance is as follows:

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Normal loans:

Secured 326,375, 221 1,329,979,026 248,623 ,187 993,249,633

Unsecured 7,343,256 29,923,768 5 , 1 1 1 , 577 20,420,750

Special mention loans:

Secured 10 ,587, 864 43,145,546 8,189,630 32,717,572

Unsecured - - 1,505,002 6,012,483

Substandard loans:

Secured 46, 839 190,869 3,047,429 12,174,479

Doubtful loans:

Secured 3, 306, 314 13,473, 230 2,182,706 8,719,910

Loss loans

Secured 4,963,055 20, 224,449 2,451,054 9,791,961

Unsecured - - 973,522 3,889,220

352,622,549 1,436,936,888 272,084,107 1,086,976,008

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7. LOANS AND ADVANCES (continued)

(e) Movements in the allowance for loan losses during the year are as follows:

2014US$

2013US$

Specific allowance

As at 1 January 8,689,404 8,561,676

Charges - 127,728

Reversals (1,149,787) -

As at 31 December 7,539,617 8,689,404

General allowance

As at 1 January 2,545,396 2,259,337

Charges 802,673 286,059

As at 31 December 3,348,069 2,545,396

Total allowance for loan losses 10,887,686 11,234,800

KHR’000 equivalent (Note 2.1.5) 44,367,320 44,883,026

8. PROPERTY AND EQUIPMENT

2014

Construction in-progress

US$

Leasehold improvements

US$

Office equipment

US$

Furnitureand fittings

US$Motor vehicles

US$TotalUS$

Cost

As at 1 January - 5,017,060 3,125,424 284,047 236,500 8,663,031

Additions 1,946,232 366,374 629,927 26,670 - 2,969,203

As at 31 December 1,946,232 5,383,434 3,755,351 310,717 236,500 11,632,234

Less accumulated depreciation

As at 1 January - 2,496,097 1,513,550 92,655 197, 287 4,299,589

Charge for the year - 864,452 539,357 52,063 26,568 1,482,440

As at 31 December - 3,360,549 2,052,907 144,718 223,855 5,782,029

Net book value

As at 31 December 1,946,232 2,022,885 1,702,444 165,999 12,645 5,850,205

KHR’000 equivalent (Note 2.1.5) 7,930,896 8,243,256 6,937,459 676,446 51,528 23,839,585

2013

Leasehold improvements

US$

Office equipment

US$

Furnitureand fittings

US$Motor vehicles

US$TotalUS$

Cost

As at 1 January 3,623,010 2,080,286 154,935 276,300 6,134, 531

Additions 1,394,050 1,039,385 129,112 - 2,562,547

Reclassifications - 6,193 - - 6,193

Disposals - (440) - (39,800) (40,240)

As at 31 December 5,017,060 3,125,424 284,047 236,500 8,663,031

Less accumulated depreciation

As at 1 January 1,758,313 1,113,062 61,010 192,995 3,125,380

Charge for the year 737,784 400,928 31,645 44,092 1,214,449

Disposals - (440) - (39,800) (40,240)

As at 31 December 2,496,097 1,513,550 92,655 197,287 4,299,589

Net book value

As at 31 December 2,520,963 1,611,874 191,392 39,213 4,363,442

KHR’000 equivalent (Note 2.1.5) 10,071,247 6,439,437 764,611 156,656 17,431,951

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9. SOFTWARE COSTS

10. OTHER ASSETS

11. DEPOSITS FROM CUSTOMERS AND OTHER BANKS

2014US$

2013US$

Cost

As at 1 January 200,342 158 ,199

Additions 344,274 48,476

Reclassifications - (6,333)

As at 31 December 544,616 200,342

Less: Accumulated amortization

As at 1 January 147,579 134,367

Charge for the year 2 5 ,1 9 1 13,212

As at 31 December 172,770 147,579

Net book value

As at 31 December 371,846 52,763

KHR’000 equivalent (Note 2.1.5) 1,515,272 210,788

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Deposits to suppliers 1,180,949 4,812,367 1,109,063 4,430,707

Prepayments 272,277 1,109,529 319,459 1,276,239

Interest receivable from balances with the NBC and other banks 92,840 378,323 117,434 469,149

Staff advances - - 19,020 75,985

Others 14,053 57,267 40,844 163,171

1, 560,119 6,357,486 1,605,820 6,415,251

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Current accounts 144,545,914 589,024,600 132,580, 840 529,660,456

Savings accounts 63,026,939 256, 834,776 40, 478,778 1 6 1 ,7 1 2 ,7 1 8

Term deposits 153 ,242,456 624,463,008 123,354,408 492,800,860

Margin deposits 243,966 994,162 269,580 1,076,972

361,059,275 1,471,316,546 296,683,606 1 ,185,251,006

Deposits from customers consist of:

2014 2013

US$


(Note 2.1.5) US$


(Note 2.1.5)

Individuals 189,885,233 773,782,325 128,398,936 512,953,749

Domestic corporations 171,174,042 697,534,221 168,284,670 672,297,257

361,059,275 1,471,316,546 296,683,606 1,185,251,006

Further analyses of deposits from customers are as follows:

(a) For maturity analysis, refer to Note 14 on Maturity profile.

(b) Analysis by type of customers:

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11. DEPOSIT FROM CUSTOMERS AND OTHER BANKS (continued)

Further analyses of deposits from customers are as follows: (continued)

(c) Analysis by type of currency:

2014 2013

US$


(Note 2.1.5) US$


(Note 2.1.5)

USD 359,630,701 1,465,495,107 296,347,618 1,183,908,734

KHR 1,428,574 5, 821,439 335,988 1,342,272

361,059,275 1,471,316,546 296,683,606 1,185,251,006

Deposits from other banks consist of:

Current accounts bear no interest while term deposits bear interest at rates ranging from 0.60% to 2.00% (2013: 1.00% to 1.30%).

2014 2013

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Current accounts 5,476,859 22, 318 ,200 2,985, 851 11,928,475

Term deposits 72,605,161 295,866,032 28,993,112 115,827,482

78,082,020 318,184, 232 31,978,963 127,755,957

12. INCOME TAX

Components of income tax expense are as follows:



US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Corporate income tax expense in accordance with statutory tax regulations:

Current 2,401,845 9,7 8 7,518 2,659,430 10,624,423

Deferred 411,346 1,676,235 (681,273) (2,721,686)

Income tax expense 2, 813,191 11,463,753 1,978,157 7,902,737

2014 2013

Current accounts 0.50% - 1.85% 0.50%

Savings accounts 0.50% - 1.00% 0.50%

Term deposits 1.50% - 4.50% 1.50% - 4.25%

Margin Nil Nil

(d) Annual interest rates:

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12. INCOME TAX (continued)

12.1 Current corporate income tax (“CIT”)

In accordance with Cambodian law, the Bank has an obligation to pay current CIT of either the profit tax at the rate of 20% of taxable income or a minimum tax at 1% of gross revenue, whichever is higher.

The reconciliation of income tax computed at the statutory tax rate to the income tax expense shown in the income statement is as follows:



US$

KHR’000 Equivalent

(Note 2.1.5) US$


(Note 2.1.5)

Profit before tax 13,570,046 55,297,939 1 1 ,757,667 46,971, 880

Income tax using statutory rate 2,714,009 11 ,059, 587 2 , 3 5 1 , 5 3 3 9, 394, 374

Non-deductible expenses 9 9,1 8 2 404,1 6 6 120,780 482,516

Temporary differences (411,346) (1,676,235) 1 8 7 , 1 1 7 747,533

Current CIT 2,401,845 9,787,518 2,659,430 10,624,423

13. OTHER LIABILITIES

Others include accrued audit fees, salaries, withholding tax and sundry liabilities. Sundry liabilities mainly include liabilities to contractor relating to renovation of the Bank’s branches and retention payable amounting to US$1.07 million (2013: US$0.12 million), and IT-related liability to service providers amounting to US$0.54 million (2013: nil).

2014 2013

US$

KHR’000Equivalent

(Note 2.1.5) US$

KHR’000Equivalent

(Note 2.1.5)

Interest payable 2,663,960 10,855,637 1,388,823 5,548,348

Clearing suspense 2,050,463 8,355,637 536,119 2,141,795

Accrued bonuses 762,065 3,105,415 884,434 3,533,314

Accrued expenses 624,798 2,546,052 325,660 1,301,012

Bankers’ checks 266,635 1,086,538 435,537 1,739,970

Others 2,217,430 9,036,026 459,520 1,835,783

8,585,351 34,985,305 4,030,093 16,100,222

12.2 Deferred income tax

Details of deferred tax recognized during the year follow:

2014 2013

Deferred tax asset (liability) Deferred tax asset (liability)

US$

KHR’000equivalent

(Note 2.1.5) US$

KHR’000equivalent

(Note 2.1.5)

Accruals 236,974 965,669 176, 887 706,664

Allowance for loan losses 213,254 869,010 695,993 2,780,492

Property and equipment and software 152,413 621,083 160,400 640,798

Unrealized foreign exchange gain (9,974) (40,644) (29,267) (116,922)

592,667 2, 415,118 1,004,013 4,011,032

The Bank’s tax returns are subject to periodic examination by the tax authorities. Because the application of tax laws and regulations to many types of transactions is susceptible to varying interpretations, amounts reported in the financial statements could be changed at a later date upon final determination by the tax authorities.

The movements of provision for income tax during the year are as follows:

2014US$

2013US$

Balance as at 1 January 4,024,825 2,332,531

Current income tax charge 2,401,845 2,659,430

Income tax paid (3,246,310) (967,136)

Balance as at 31 December 3,180,360 4,024,825

KHR’000 equivalent (Note 2.1.5) 1 2 ,959,967 16,079,176

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14. MATURITY PROFILE

Analysis of assets and liabilities according to whether they are expected to be recovered or settled within twelve (12) months and over twelve (12) months from the balance sheet date follows:

2014

Within 12months

Over 12months Total

Financial assets:

Cash and balances with banks 189,036,494 - 189,036,494

Amounts due from Parent Company 296,276 - 296,276

Amounts due from affiliates 893,807 - 893,807

Loans and advances 137,125 , 577 216,021 , 515 353,147,092

Other assets 92,840 - 92,840

Non-financial assets:

Statutory deposits with the NBC - 56,000,605 56,000,605

Property and equipment - 5,850,205 5,850,205

Software costs - 371,846 371,846

Deferred tax asset - net - 592,667 592,667

Other assets 1,467,279 - 1,467,279

328,912, 273 278,836,838 607,749,1 1 1

Allowance for loan losses (10,887,686)

Total in US$ 328,912, 273 278,836,838 596,861,425

KHR’000 equivalent (Note 2.1.5) 1, 340, 317, 512 1,136, 260,115 2,432,210,308

Financial liabilities

Deposits from customers and other banks 392,661,338 46, 479,957 43 9,141 , 295

Amounts due to Parent Company 39,300,705 30,000,000 6 9,300,705

Other liabilities 4, 317, 458 - 4, 317,458

Non-financial liabilities

Provision for income tax 3,180,360 - 3,180,360

Other liabilities 4,267,893 - 4,267,893

Total in US$ 443,727,754 76,479,957 5 20,207,711

KHR’000 equivalent (Note 2.1.5) 1,808,190,598 3 1 1 ,655, 825 2,119,846,423

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14. MATURITY PROFILE (continued)

2013

Within12 months

Over12 months Total

Financial assets:

Cash and balances with banks 149,679,891 - 149,679,891

Amounts due from Parent Company 323,792 - 323,792

Amounts due from affiliates 618,190 - 618,190

Loans and advances 98,628,154 174,036,491 272,664,645

Other assets 117,434 - 117,434

Non-financial assets:

Statutory deposits with the NBC - 42,500,615 42,500,615

Property and equipment - 4,363,442 4,363,442

Software costs - 52,763 52,763

Deferred tax asset - 1,004,013 1,004,013

Other assets 1,488,386 - 1,488,386

250,855,847 221,957,324 4 7 2 , 8 1 3 ,1 7 1

Allowance for loan losses (11,234,800)

Total in US$ 250, 855, 847 221,957,324 461, 578, 371

KHR’000 equivalent (Note 2.1.5) 1,002,169,109 886,719,508 1,844,005,593


Deposits from customers and other banks 328,606,943 55,626 328,662,569

Amounts due to Parent Company 58,964,025 - 58,964,025

Other liabilities 3,034,454 - 3,034,454

Non-financial liabilities

Provision for income tax 4,024,825 - 4,024,825

Other liabilities 995,639 - 995,639

Total in US$ 395,625, 886 55,626 395,681,512

KHR’000 equivalent (Note 2.1.5) 1,580,525,415 222, 226 1,580,747,641

15. SHARE CAPITAL

2014 2013

US$

KHR’000 equivalent (Note 2.1.5) US$

KHR’000 equivalent (Note 2.1.5)

Issued and fully paid, 50 million ordinary sharesat par value of US$1 per share:

Balance at beginning and end of year 50,000,000 203,750,000 50,000,000 199,750,000

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16. INTEREST INCOME



US$


(Note 2.1.5) US$


(Note 2.1.5)

Interest income from lending activities 25,833,023 105, 269,569 22,416, 250 89,552,919

Interest income from balances with NBC and other banks 536,553 2,186, 453 6 7 6 , 8 3 4 2,703,952

26,369,576 107,456,022 23,093,084 92,256,871

17. INTEREST EXPENSE



US$


(Note 2.1.5) US$


(Note 2.1.5)

Interest expense on:

Term deposits 4,663,334 19,003,086 3,469,984 1 3,862,586

Borrowings 854,979 3,484,039 730,207 2 , 9 1 7,1 7 7

Current accounts 265,450 1,081,709 113 , 384 452,969

Savings accounts 247, 2 8 1 1,007,670 170,648 681,739

6,031,044 24,576,504 4,484,223 17,914,471

18. FEE AND COMMISSION INCOME



US$


(Note 2.1.5) US$


(Note 2.1.5)

Swift charges 1,122,626 4,574,701 1 ,151 , 496 4,600,227

Service charges 741,417 3,021,274 609,850 2, 436, 351

Loan processing fees 432,347 1,761,814 257,886 1,0 3 0 ,255

Commission earned from trade finance 415, 851 1,694,593 203,128 811,496

Loan commitment fees 294,535 1,200,230 261,023 1,042,787

Foreign exchange gain 49,868 203,212 146,333 584,600

Others 688,524 2,805,736 413,377 1 ,651 , 441

3,745,168 15,261,560 3,043,093 1 2 ,1 5 7,1 5 7

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19. GENERAL AND ADMINISTRATION EXPENSES



US$


(Note 2.1.5) US$


(Note 2.1.5)

Salaries and fringe benefits 5,180,656 2 1 ,1 1 1 ,1 73 4,990,937 1 9, 938,793

Depreciation and amortization 1,507,631 6,143,596 1, 227,661 4,904,506

Rental 1,011,610 4,122,311 729,071 2,912,639

Taxes and licenses 802,165 3,268,822 622,711 2,487,730

Transportation 372,374 1,517,424 3 1 5 ,1 4 1 1, 258,988

Advertising 369,120 1,504,164 364,980 1,458,095

Utilities 352,564 1,436,698 263,673 1,053,374

Repairs and maintenance 323,161 1,316,881 252,091 1,007,104

Professional fees 229,877 936,749 132,957 531 ,163

Communication 226,606 923,419 181,572 725,380

Building securities 203,849 830,685 137,302 548,521

Directors’ fees and meeting allowances 170,400 694,380 139,367 556,771

Stationeries and supplies 135, 818 553,458 164,922 658,863

Trainings and seminars 73,571 299,802 42,932 171 , 513

Representation 65,041 265,042 65,661 262,316

Insurance 4,144 16,887 1,649 6,588

Others 282,910 1 ,152 , 859 423,000 1,689, 886

11,311,497 46,094,350 10,055,627 40,172, 230

Others include mainly charitable donation, bond premium expense, penalties and withholding taxes borne by the Bank.

20. NET CASH FROM (USED IN) OPERATING ACTIVITIES



US$

KHR’000Equivalent

(Note 2.1.5) US$

KHR’000Equivalent

(Note 2.1.5)

Cash flows from operating activities

Profit before income tax 13,570,046 55,297,939 11,757,667 46,971, 880

Adjustments for:

Depreciation and amortization 1,507,631 6,143,596 1,227,661 4,904,506

Gain on disposals of property and equipment - - (6,050) (24,171)

Write-off of software costs - - 140 558

Income tax paid (3,246,310) (13,228,713) (967,136) (3,863,708)

Cash provided by operating activities before changes in net operating assets 11, 831, 367 48,212,822 12,012,282 47,989,065

(Increase) decrease in operating assets:

Balances with NBC (16,579,990) (67,563,459) (2,000,000) (7,990,000)

Balances with other banks (5,000,000) (20,375,000) (5,000,000) (19,975,000)

Loans and advances (80,829,561) (329,380,461) (33,535,323) (133,973,615)

Other assets 45,701 186,232 (115,033) (459,557)

Increase in operating liabilities:

Deposits from customers and other banks 110,478,726 450,200,808 23,427,659 93,593,498

Net amounts due to Parent Company 5,086,680 20,728,221 1,505,476 6,014,377

Other liabilities 4,555, 258 18,562,676 1,432,109 5,721,275

Net cash from (used in) operating activities 29,588,181 120,571,839 (2,272,830) (9,079,957)

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21. RELATED PARTY TRANSACTIONS AND BALANCES

(a) Significant transactions of the Bank during the period and balances with related parties at the balance sheet date follow:

Related parties Nature of transaction



US$


(Note 2.1.5) US$


(Note 2.1.5)

Malayan Banking Berhad Settlement accounts 296,276 1,207,325 323,792 1,293,549

Borrowings 61,000,000 248,575,000 55,750,000 222,721,250

Deposit from other banks 8, 253,065 33,631,240 3,171, 804 12,671,357

Interest payable 47,640 194,133 42, 221 168,673

Interest expense 854,979 3,484,039 730,207 2,917,177

Consultancy fee Nil Nil 33,578 134,144

Maybank London Settlement accounts 235,225 958,542 10,685 42,687

Maybank New York Settlement accounts 658,582 2,683,722 607,505 2,426,982

(b) Key management personnel compensation

Key management personnel include the directors and executive management.



US$


(Note 2.1.5) US$


(Note 2.1.5)

Remuneration of key management personnel 1,358,880 5,537,437 1,290,692 5,156,315

22. COMMITMENTS AND CONTINGENCIES

22.1 Lending commitments

To meet the financial needs of customers, the Bank enters into various commitments and contingent liabilities. Lending commitments consist of:

2014 2013

US$


(Note 2.1.5) US$


(Note 2.1.5)

Unutilized portion of overdraft 29,640,384 120,784,565 33,617,854 134,303,327

Letters of credit 1 5 ,1 1 4 ,1 9 9 61,590,361 6,681,540 26,692,752

Guarantees 6,262,209 25,518,502 1,718,297 6,864,597

Bills for collection - - 587,852 2,348,469

51,016,792 207,893,428 42,605,543 170,209,145

22.2 Operating lease commitments

The Bank, as lessee, has entered into commercial leases on premises. There are no restrictions placed upon the lessee by entering into these leases.

Future minimum lease payments as at 31 December are as follows:

2014 2013

US$


(Note 2.1.5) US$


(Note 2.1.5)

Within one year 939,198 3,827,232 950,127 3 ,7 9 5 ,75 7

Between one to five years 2,284,820 9,310,642 1,801,052 7,1 9 5 , 2 0 3

3,224,018 13,137, 874 2,751,179 10,990,960

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22. COMMITMENTS AND CONTINGENCIES (continued)

22.3 Taxation contingency

The taxation system in Cambodia is relatively new and is characterized by numerous taxes and frequently changing legislation, which is often unclear, contradictory, and subject to interpretation. Often, differing interpretations exist among numerous taxation authorities and jurisdictions. Taxes are subject to review and investigation by a number of authorities, who are enabled by law to impose severe fines, penalties and interest charges.

These facts may create tax risks in Cambodia substantially more significant than in other countries. Management believes that it has adequately provided for tax liabilities based on its interpretation of tax legislation. However, the relevant authorities may have differing interpretations and the effects could be significant.

23. FINANCIAL RISK MANAGEMENT

The Bank’s activities are exposed to a variety of financial risks: credit risk, market risk (including currency risk and interest rate risk) and liquidity risk. Taking risk is core to the financial business, and operational risks are an inevitable consequence of being in business.

The Bank does not use derivative financial instruments such as foreign exchange contract and interest rate swaps to manage its risk exposure.

The Bank intends to comply with NBC’s regulations for financial risk management purposes. In addition to minimum requirements of NBC, the Bank also adopts relevant financial risk management procedures of the Parent Company.

23.1 Operational risk

The operational risk loss which would result from inadequate or failed internal processes, people and systems is managed through established operational risk management processes, proper monitoring and reporting of the business activities by control and support units which are independent of the business units and oversight provided by the management.

The operational risk management entails the establishment of clear organizational structures, roles and control policies. Various internal control policies and measures have been implemented. These include the establishment of signing authorities, defining system parameter controls, streamlining procedures and documentation. These are reviewed continually to address the operational risks of its banking business.

23.2 Credit risk

The Bank takes on exposure to credit risk, which is the risk that a counterparty will cause a financial loss to the Bank by failing to discharge an obligation. Credit risk is the most important risk for the Bank’s business. Credit exposure arises principally in lending activities that lead to loans and advances. There is also credit risk in off-balance sheet financial instruments, such as loan commitments.

(a) Credit risk measurement, mitigation and concentration control

Governance

Overall supervision and responsibility in managing risk resides with the Bank’s Board-level Risk Management Committee. At management level, supervision of material credit risk is being done by the Executive Committee and the Credit Committee of the Bank. Risk pricing is covered by Asset and Liability Management Committee. These committees ensure that all the relevant risk areas are properly identified, measured, managed, priced, monitored, and disclosed within their respective terms of reference.

The following are the key risk areas encountered by the Bank and how they are managed:

(i) Credit risk management framework

Develop, enhance and communicate an efficient, effective and consistent credit risk management framework, leveraging on people and technology.

(ii) Credit policies

Develop and review credit policies including providing empowerment to approve loans.

(iii) Regulatory requirements

Ensure compliance with NBC and other regulatory requirements on credit risk management.

(iv) Risk limits concentrations

Set, review and monitor risk limits and concentrations according to various categories such as a single customer group and product types.

(v) Portfolio management

Manage and control the Bank’s portfolio, including providing analysis of the overall composition and quality of the various credit portfolios to identify any particular sensitivities and concentrations. At the same time, to safeguard and preserve the asset quality of the Bank by analyzing vulnerable industries where prospects have changed or are showing unfavorable signs.

(vi) Credit review

Perform post-approval review of credit proposals to assess whether loan originators, pre-evaluators and approving authorities have addressed and analyzed credit risks sufficiently and provided mitigating factors.

(b) Maximum exposure to credit risk before collateral held or other credit enhancements

For maximum exposure of financial assets to credit risk, refer to Note 23.2 (c).

The credit exposure arising from off-balance sheet activities i.e. commitments and contingencies is discussed in Note 22.1.

(c) Concentration of risks of financial assets with credit risk exposure

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Bank’s performance to developments affecting a particular industry or geographic location.

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23. FINANCIAL RISK MANAGEMENT (continued)

23.2 Credit risk (continued)

(c) Concentration of risks of financial assets with credit risk exposure (continued)

(i) Industry analysis:

Financialservices

Import & export

Consumers Retail &wholesale

Manufacturing& petroleum Others Total

2014

Balances with the NBC 80,013,017 - - - - - 80,013,017

Balances with other banks 62,209,348 - - - - - 62,209,348

Amounts due from Parent Company and affiliates 1,190,083 - - - - - 1,190,083

Loans and advances - net 33,286,858 10,094,261 69,895,618 151,664,000 33,459,500 43,859,169 342,259,406

Other assets 92,840 - - - - - 92,840

Total in US$ 176,792,146 10,094,261 69,895,618 151,664,000 33,459,500 43,859,169 485,764,694

KHR’000 equivalent (Note 2.1.5) 720,427,995 41,134,114 284,824,643 618,030,800 136,347,463 178,726,114 1,979,491,129

Financialservices

Import & export

Consumers Retail &wholesale

Manufacturing& petroleum Others Total

2013

Balances with the NBC 80,091,064 - - - - - 80,091,064

Balances with other banks 41,108,776 - - - - - 41,108,776

Amounts due from Parent Company and affiliates 941,982 - - - - - 941,982

Loans and advances - net 3,925,760 5,994,110 158,093,594 57,409,565 25,501,722 10,505,094 261,429,845

Other assets 1 1 7,434 - - - - - 117,434

Total in US$ 126,185,016 5,994,110 158,093,594 57,409,565 25,501,722 10,505,094 383,689,101

KHR’000 equivalent (Note 2.1.5) 504,109,139 23,946,469 631,583,908 229,351, 212 101, 879,379 41,967, 851 1,532,837,958

(ii) Geographical analysis:

2014

Cambodia North America Others* Total

Balances with the NBC 80,013,017 - - 80,013,017

Balances with other banks 61,720,584 488,764 - 62,209,348

Amounts due from Parent Company and affiliates - 658,582 531,501 1,190,083

Loans and advances – net 342,259,406 - - 342,259,406

Other assets 92,840 - - 92,840

Total in US$ 484,085,847 1,147,346 531,501 485,764,694

KHR’000 equivalent (Note 2.1.5) 1,972,649,827 4,675,435 2,165,867 1,979,491,129

* Others include Malaysia and United Kingdom.

2013

Cambodia North America Others* Total


Balances with other banks 40,320,473 788,303 - 41,108,776

Amounts due from Parent Company and affiliates - 607,505 334,477 941,982

Loans and advances – net 261,429, 845 - - 261,429,845

Other assets 117, 434 - - 117,434

Total in US$ 381,958, 816 1,395,808 334,477 383,689,101

KHR’000 equivalent (Note 2.1.5) 1,525,925,469 5,576,253 1,336,236 1,532,837,958

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23.2 Credit risk(continued)

(d) Credit quality by class of financial assets

The credit quality of financial assets is managed by the Bank using internal credit ratings. The table below shows the credit quality by class of asset for all financial assets exposed to credit risk, based on the Bank’s internal credit rating system. The amounts presented are gross of any required impairment allowance.

Neitherpast due nor

impaired

Pastdue but not

impairedIndividually

impaired Total

2014

Balances with the NBC 80,013,017 - - 80,013 ,017

Balances with other banks 62,209,348 - - 62,209,348

Amounts due from Parent Company and affiliates 1,190,083 - - 1 , 190,083

Loans and advances – gross 333,718,477 10,587,864 8,316,208 3 5 2 ,622,549

Other assets 92,840 - - 92,840

Total in US$ 477, 223,765 10,587,864 8,316,208 496 ,127, 837

KHR’000 equivalent (Note 2.1.5) 1,944,686,842 43,145,546 33,888,548 2,0 2 1 ,720,936

2013


Balances with other banks 41,108,776 - - 41,108,776

Amounts due from Parent Company and affiliates 941,982 - - 941,982

Loans and advances – gross 253,734,764 9,694,632 8,654,711 272,084,107

Other assets 117,434 - - 117,434

Total in US$ 375,994,020 9,694,632 8,654,711 394,343,363

KHR’000 equivalent (Note 2.1.5) 1,502,096,110 38,730,055 34,575,570 1, 575,401,735

As at 31 December 2014, the past due but not impaired financial assets pertain to loans classified as special mention with aging of less than 90 days.

(e) Collateral repossessed

During the year, the Bank did not obtain assets by taking possession of collateral held as security.

23.3 Market risk

Market risk is the risk of loss arising from adverse movement in the level of market prices or rates, the two key components being foreign currency exchange risk and interest rate risk.

23.3.1 Foreign currency exchange risk

Foreign currency exchange risk refers to the adverse exchange rate movements on foreign currency exchange positions taken from time to time. The Bank maintains a policy of not exposing itself to large foreign exchange positions. Any foreign currency exchange open positions are monitored against the operating requirements, predetermined position limits and cut-loss limits.

As at 31 December 2014, balances in monetary assets and liabilities denominated in currencies other than US$ are not significant. Therefore, no sensitivity analysis for foreign currency exchange risk was presented.

23.3.2 Interest rate risk

Interest rate risk refers to the volatility in net interest income as a result of changes in the levels of interest rate and shifts in the composition of the assets and liabilities. Interest rate risk is managed through close monitoring of returns on investment, market pricing, cost of funds and through interest rate sensitivity gap analysis. The potential reduction in net interest income from an unfavorable interest rate movement is monitored against the risk tolerance limits set.

Fair value sensitivity analysis for fixed rate instruments

The Bank does not account for any fixed rate instruments at fair value through profit or loss, and the Bank does not have derivatives as at year end. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The Bank does not have significant variable-rate instruments. Therefore, no cash flow sensitivity analysis for variable-rate instruments was presented.

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23.4. Liquidity risk

Liquidity risk relates to the ability to maintain sufficient liquid assets to meet its financial commitments and obligations when they fall due at a reasonable cost.

Management believes that the Bank fully complies with all liquidity requirements of NBC as it closely monitors all inflows and outflows and the maturity gaps through periodical reporting. Additionally, movements in loans and customers’ deposits are monitored and liquidity requirements adjusted to ensure sufficient liquid assets to meet its financial commitments and obligations as and when they fall due.

Analysis of the financial assets and liabilities of the Bank into relevant maturity groupings based on the remaining periods to repayment follows:

2014

On demandUS$

Up to1 monthUS$

>1 - 3monthsUS$

>3 - 12 monthsUS$

>1 to 5 yearsUS$

Over 5 yearsUS$

TotalUS$

Financial assets

Cash on hand 46,814,129 - - - - - 46,814,129

Balances with the NBC 62,933,017 17,080,000 - - - - 80,013,017

Balances with other banks 20,209,348 17,000,000 15,000,000 10,000,000 - - 62,209,348

Amounts due from Parent Company 296,276 - - - - - 296,276

Amounts due from affiliates 893,807 - - - - - 893,807

Loans and advances - gross 102,967,189 3,745,978 22,052,603 8,359,807 47,090,813 168,930,702 353,147,092

Other assets 92,840 - - - - - 92,840

Total financial assets 234,206,606 37,825,978 37,052,603 18,359,807 47,090,813 168,930,702 543,466,509


Deposits from customers and other banks 213,363,700 82,827,566 49,152,347 47,317,725 40,031,176 6,448,781 439,141, 295

Amounts due to Parent Company 8,300,705 31,000,000 - - 30,000,000 - 69,300,705

Other liabilities 4,317,458 - - - - - 4,317,458

Total financial liabilities 225,981,863 1 1 3 ,827,566 49,152, 347 4 7,3 1 7, 7 2 5 70, 0 3 1 ,1 7 6 6,448,781 512,759,458

Net liquidity surplus (gap) 8,224,743 (76,001,588) (12,099,744) (28,957,918) (22,940,363) 162,481,921 30,707,051

KHR’000 equivalent (Note 2.1.5) 33,515, 828 (309,706,471) (49,306,457) (118,003,516) (93,481,979) 662,113,828 125,131,233

2013

On demandUS$

Up to 1 monthUS$

>1 - 3 monthsUS$

>3 - 12 monthsUS$

>1 to 5 yearsUS$

Over 5 yearsUS$

TotalUS$

Financial assets

Cash on hand 28,480,051 - - - - - 28,480,051

Balances with the NBC 54,091,064 18,000,000 3,000,000 5,000,000 - - 80,091,064

Balances with other banks 11,108,776 7,000,000 8,000,000 15,000,000 - - 41,108,776

Amounts due from Parent Company 323,792 - - - - - 323,792

Amounts due from affiliates 618,190 - - - - - 618,190

Loans and advances - gross 83,328,330 2,539,861 5, 211, 856 7,548,108 31,747,162 142,289,328 272,664,645

Other assets 117,434 - - - - - 117,434

Total financial assets 178,067,637 27,539,861 16, 211, 856 27,548,108 31,747,162 142,289,328 423,403,952


Deposits from customers and other banks 176,315,049 69,554,096 32,595,210 50,142,588 55,626 - 328,662,569

Amounts due to Parent Company 3,214,025 - 55,750,000 - - - 58,964,025

Other liabilities 3,034,454 - - - - - 3,034,454

Total financial liabilities 182,563,528 69,554,096 88,345,210 50,142,588 55,626 - 390,661,048

Net liquidity surplus (gap) (4,495,891) (42,014,235) (72,133,354) (22,594,480) 31,691,536 142,289,328 32,742,904

KHR’000 equivalent(Note 2.1.5) (17,961,085) (167,846,869) (288,172,749) (90,264,948) 126,607,686 568,445,865 130,807,900

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Annual Report 2014



23.5 Capital management

23.5.1 Regulatory capital

The Bank’s lead regulator, NBC, sets and monitors capital requirements for the Bank as a whole.

The Bank’s policy is to maintain a strong capital base so as to maintain market confidence and to sustain further development of the business.

The impact of the level of capital on shareholders’ return is also recognized. As such, the Bank tries to maintain a balance between the higher returns that might be possible with greater gearing and advantages and security afforded by a sound capital position.

The Bank has complied with all externally imposed capital requirement throughout the year.

23.5.2 Capital allocation

The allocation of capital between specific operations and activities is, to a large extent, driven by optimization of the return achieved on the capital allocated. The amount of capital allocated to each operation or activity is based primarily upon the regulatory capital.

24. FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

The aggregate fair values of financial assets and liabilities carried on the balance sheet are approximately equal to their carrying values as at 31 December 2014.

25. SUBSEQUENT EVENTS

Other than as disclosed elsewhere in these financial statements, at the date of this report, there were no events, which occurred subsequent to 31 December 2014 that had significant impact on the financial position and performance of the Bank as at 31 December 2014.

119

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PERFORMANCE REVIEW


OTHERINFORMATION

Corporate Information

BOARD OF DIRECTORS

CHEAH TEIK SENG

Independent Non-Executive Chairman

DATUK R. KARUNAKARAN

Independent Non-Executive Director

SPENCER LEE

Independent Non-Executive Director

HAMIRULLAH BOORHAN

Non-Independent Non-Executive Director

POLLIE SIM


(Appointed with effect from 28 February 2014)

SOON SU LONG


(Appointed with effect from 31 March 2015)

QAZREEN CHAN ABDULLAH

LONG BEANG

Corporate Secretaries

REGISTERED OFFICE

4B, Street 114 (Kramoun Sar),

Sangkat Phsar Thmey 1,

Khan Daun Penh,

Phnom Penh, Cambodia

Tel : (855) 23 210 123

Fax : (855) 23 210 099

SWIFT : MBBEKHPP

Website : www.maybank2u.com.kh

E-Mail : [email protected]

EXTERNAL AUDITORS

Messrs. Ernst & Young (Cambodia) Ltd.

Certified Public Accountants

Registered Auditors

66, Norodom Boulevard,

3rd Floor, SSN Center,

Sangkat Chey Chumneas,

Khan Daun Penh,

Phnom Penh, Cambodia.

Tel : (855) 23 217 824 / 825

Fax : (855) 23 217 805

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Annual Report 2014

OTHERINFORMATION

120

COMMERCIAL BANKING

Malayan Banking Berhad

14th Floor, Menara Maybank

100, Jalan Tun Perak

50050 Kuala Lumpur

Tel : (6)03- 2070 8833

Fax : (6)03-2031 0071

Corporate website : www.maybank.com

Email : [email protected]

Maybank Banking Berhad

Singapore Branch

Maybank Tower

2 Battery Road

Maybank Tower

Singapore 049907

Tel : 1800-629 2265; (65) 6533 5229 (Overseas)

Website : www.maybank2u.com.sg



Hong Kong Branch

18/F, CITIC Tower

1 Tim Mei Avenue Central

Hong Kong

Tel : 852-35188888

Fax : 852-35188889


Shanghai Branch

15th Floor Marine Tower

No 1 Pudong Avenue

Shanghai 200120

China

Tel : 86-216 8860003

Fax : 86-216 8860132


Bahrain Branch

8th Floor, Al-Jasrah Tower

Diplomatic Area

P.O. Box 10470

Manama

Kingdom of Bahrain

Tel : 973-17-535733

Fax : 973-17-533895


Bandar Seri Begawan Branch

Unit 5-8, Simpang 22, Jalan Dato Ratna

Kiarong Sentral, Kampong Kiarong

Negara Brunei Darussalam

Tel : 673-2-226462

Fax : 673-2-225404

Group Directory


London Branch

74 Coleman Street

London EC2R 5BN

United Kingdom

Tel : 44-20-7638 0561

Fax : 44-20-7638 9329


Ho Chi Minh City Branch

Sun Wah Tower

9th Floor, 115 Nguyen Hue Street

District 1 - Ho Chi Minh City

Vietnam

Tel : 84-8-3-8278188

Fax : 84-8-3-8278166


Laos Branch

Lot 43, 45 & 47 Lane Xang Avenue

Hatsady Village, Chanthabouly District

PO Box 1663 Viantiane, Lao PDR

Tel : 856-21-263100

Fax : 856-21-263113


New York Branch

11th Floor, 400 Park Avenue

New York, NY 10022

United States of America

Tel : 1-212-3031300

Fax : 1-212-3080109

Maybank Islamic Berhad

Level 10, Tower A

Dataran Maybank

No. 1, Jalan Maarof

59000 Kuala Lumpur

Tel : (6)03-2297 2001

Fax : (6)03-2297 2002

Website : www.maybankislamic.com.my


P.T. Bank Internasional Indonesia Tbk

Gedung Sentral Senayan 3, 26th Floor

JI. Asia Afrika No. 8

Senayan Gelora Bung Karno

Jakarta 10270

Indonesia

Tel : (62)-21-2922 8888

Fax : (62)-21-2922 8914

Website : www.bii.co.id


P.T. Bank Maybank Syariah Indonesia

1st-3rd Floor, Sona Topas Tower

Jl. Jend. Sudirman Kav. 26

Jakarta 12920

Indonesia

Tel : (62)-21-250 6446

Fax : (62)-21-250 6445

Corporate website: www.maybanksyariah.co.id

Maybank Philippines Incorporated

Maybank Corporate Center,

7th Avenue Corner 28th Street

Bonifacio High Street Central, Bonifacio Global City,

Taguig City, 1634

Philippines

Tel : (632) 588 3777

Fax : (632) 808 2669

Website : www. maybank2u.com.ph

Maybank (PNG) Ltd

Port Moresby Branch

Corner Waigani Drive/Islander Drive

P.O. Box 882 Waigani, National Capital District

Port Moresby

Papua New Guinea

Tel : (675)-325 0101

Fax : (675)-325 6128


Email: [email protected]

Maybank International (L) Ltd

Level 16 (B), Main Office Tower

Financial Park Labuan

Jalan Merdeka

87000 Wilayah Persekutuan Labuan

Tel : (6)087-414 406

Fax : (6)087-414 806


Maybank (Cambodia) Plc.

No. 4B Street 114 (Kramoun Sar),


Khan Daun Penh, Phnom Penh

Kingdom of Cambodia

Tel : (855)-23-210 123

Fax : (855)-23-210 099

Website : www.maybank2u.com.kh

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121

Group Directory

INVESTMENT BANKING

Maybank Investment Bank Berhad

32nd Floor, Menara Maybank


50050 Kuala Lumpur

Tel : (6)03-2059 1888

Fax : (6)03-2078 4217

Website : www.maybank-ib.com


Mayban IB Holdings Sdn Bhd

32nd Floor, Menara Maybank


50050 Kuala Lumpur

Tel : (6)03-2059 1888

Fax : (6)03-2078 4217

Maybank Kim Eng Holdings Limited

Maybank Kim Eng Securities Pte. Ltd.

50, North Canal Road

#03-01, Singapore 059304

Tel : (65)- 6231 5000

Fax : (65)- 6636 4296

Website : www.maybank-ke.com.sg

Maybank Kim Eng Securities (Thailand) Public Company

Limited

999/9 The Offices at Central World

20th - 21st and 25th Floor Rama 1 Road Pathumwan

Bangkok, 10330 Thailand

Tel : (+66)-2 658 6300

Fax : (+66)-2 658 6301

Website : www.maybank-ke.co.th


Maybank ATR Kim Eng Capital Partners, Inc

9th and 17th Floors, Tower One & Exchange Plaza

Ayala Triangle, Ayala Avenue

Makati City, Philippines

Tel : (632)- 849 8988 / 849 8888

Website : www.maybank-atrke.com

Maybank ATR Kim Eng Securities, Inc

9th and 17th Floors, Tower One & Exchange Plaza

Ayala Triangle, Ayala Avenue

Makati City, Philippines

Tel : (632) 849 8988 / 849 8888

Websites : www.maybank-atrke.com

PT. Maybank Kim Eng Securities

Plaza Bapindo-Citibank Tower 17th Floor

Jl Jenderal Sudirman Kav 54-55

Jakarta 12190 Indonesia

Tel : (62)-21-2557 1188

Fax : (62)-21-2557 1189

Website : www.maybank-ke.co.id

Kim Eng Securities (Hong Kong) Limited

Level 30, Three Pacific Place

1, Queen’s Road East

Hong Kong

Tel : 852-2268 0800

Fax : 852- 2845 3772

Website : www.kimeng.com.hk


Kim Eng Securities India Private Limited

2nd Floor, The International

16, Maharishi Karve Marg

Churchgate, Mumbai 400 020

India

Tel : 91-22 6623 2600

Fax : 91-22 6623 2604


Maybank Kim Eng Securities Limited

(formerly known as Maybank Kim Eng Securities Joint Stock

Company)

4A Floor-15+16, Vincom Center Dong Khoi,

72 Le Thanh Ton Street, Ben Nghe Ward, District 1,

Ho Chi Minh City, Vietnam

Tel : +84 8 44 555 888 / +84 8 38 271 020

Fax : +84 8 3827 1030

Website : maybank-kimeng.com.vn


Maybank Kim Eng Securities (London) Limited

5th Floor, Aldermary House

10-15 Queen Street

London

EC4N 1TX, United Kingdom

Tel : 44-20 7332 0221

Fax : 44-20 7332 0302


Maybank Kim Eng Securities USA, Inc.

777 Third Avenue 21st Floor

New York NY 10017

USA

Tel : 212-688 8886

Fax : 212-688 3500

E-mail : [email protected]

INSURANCE & TAKAFUL

Maybank Ageas Holdings Berhad

Level 19, Tower C

Dataran Maybank

No. 1, Jalan Maarof

59000 Kuala Lumpur

Tel : (6)03-2297 3888

Fax : (6)03-2297 3800

Website : www.etiqa.com.my


Etiqa Insurance Berhad

Etiqa Takaful Berhad

Level 19, Tower C

Dataran Maybank

No. 1, Jalan Maarof

59000 Kuala Lumpur

Tel : (6)03-2297 3888

Fax : (6)03-2297 3800



Etiqa Life International (L) Ltd

Etiqa Offshore Insurance (L) Ltd

Level 11B, Block 4 Office Tower

Financial Park Labuan Complex

Jalan Merdeka

87000 Wilayah Persekutuan Labuan

Tel : (6)087-582 588

(6)087-417 672

Fax : (6)087-583 588

(6)087-452 333



Etiqa Insurance Pte. Ltd.

One Raffles Quay

#22-01 North Tower

Singapore 048583

Tel : (65) - 6336 0477

Fax : (65) - 6339 2109

Website : www.etiqa.com.sg


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122

Group Directory

ASSET MANAGEMENT

Maybank Asset Management Group Berhad

Level 5, Tower A

Dataran Maybank

No 1, Jalan Maarof

59000 Kuala Lumpur

Tel : (6)03-2297 7833

Fax : (6)03-2297 7997

Corporate website : www.maybank-am.com

Maybank Asset Management Sdn Bhd

Level 12, Tower C

Dataran Maybank

No. 1, Jalan Maarof

59000 Kuala Lumpur

Tel : (6)03-2297 7836

Fax : (6)03-2715 0071


Maybank Islamic Asset Management Sdn Bhd

Level 12, Tower C

Dataran Maybank

No. 1, Jalan Maarof

59000 Kuala Lumpur

Tel : (6)03-2297 7873

Fax : (6)03-2297 7998

Maybank Private Equity Sdn Bhd

Level 5, Tower A

Dataran Maybank

No 1, Jalan Maarof

59000 Kuala Lumpur

Tel : (6)03-2297 7887

Fax : (6)03-2297 7878

Maybank Asset Management Singapore Pte Ltd

9 Temasek Boulevard

#39-00 Suntec Tower Two

Singapore 038989

Tel : +65 6432 1488

Fax : +65 6339 1003


Maybank Asset Management (Thailand) Co Ltd

The Offices of Central World

25th Floor, 999/9 Rama 1 Road

Pathumwan

Bangkok 10330

Thailand

Tel : +66(0)-2264 5111

Fax : +66(0)-2264 5132

Corporate website : www.maybank-am.co.th

PT Maybank GMT Asset Management

Setiabudi Atrium, 5th Floor - Suite 505

Jl. HR Rasuna Said Kav. 62

Kuningan, Jakarta

12920 Indonesia

Tel : (62) 21 521 0672

Fax : (62) 21 521 0673


OTHERS

Maybank Trustees Berhad



50050 Kuala Lumpur

Tel : (6)03-2078 8363

Fax : (6)03-2070 9387



Maybank (Nominees) Sendirian Berhad

Maybank Nominees (Tempatan) Sdn Bhd

Maybank Nominees (Asing) Sdn Bhd



50050 Kuala Lumpur

Tel : (6)03-2070 8833 / (6)03-2070 1522

Fax : (6)03-2032 1505

Maybank Securities Nominees (Tempatan) Sdn. Bhd.

Maybank Securities Nominees (Asing) Sdn. Bhd.

Level 8, Tower C

Dataran Maybank

No.1, Jalan Maarof

59000 Kuala Lumpur

Tel : (6)03-2297 8888

Fax : (6)03-2282 5136

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123

Branch Directory

Phnom Penh Main Branch

(Head Office)

No. 4B, Street 114 (Kramoun Sar),


Khan Daun Penh, Phnom Penh

Tel : (855) 23 210 123 / 255

Fax : (855) 23 210 099

Battambang Branch

No. 136Eoz, Street 3, Group 39,

20 Ou Saphea Village,

Sangkat Svay Por, Battambang

Tel : (855) 53 731 207 / 208

Fax : (855) 53 731 201

Boeng Keng Kang Ti Muoy Branch

No. 210 Street 63,

Sangkat Boeng Keng Kang Ti Muoy,

Khan Chamkar Mon,

Phnom Penh

Tel : (855) 23 210 448 / 450

Fax : (855) 23 210 467

Chbar Ampov Branch

No. 27 & 29 Eo+E1, National Road 1,

Kandal Village, Sangkat Chbar Ampov 2,

Khan Mean Chey, Phnom Penh

Tel : (855) 23 720 586 / 587

Fax : (855) 23 720 528

Chroy Changvar Branch

No. F14 & F15, National Road No. 6A,

Sangkat Chroy Changvar,

Khan Russey Keo, Phnom Penh

Tel : (855) 23 432 290 / 291

Fax : (855) 23 432 289

Kampong Cham Branch

No. 58, Street Preah Monivong,

Sangkat Kampong Cham,

Kampong Cham City, Kampong Cham

Tel : (855) 42 210 572 / 573

Fax : (855) 42 210 574

Kampuchea Krom Branch

No. 479 E1E2 & 481 E0E1E2,

Street 128, Kampuchea Krom Blvd,

Sangkat Phsar Depo III,

Khan Tuol Kork, Phnom Penh

Tel : (855) 23 883 654 / 694

Fax : (855) 23 882 714

Mao Tse Toung Branch

No. 158 BCD, Mao Tse Toung Blvd,

Sangkat Tomnoubteouk,

Khan Chamkarmon, Phnom Penh

Tel : (855) 23 216 436 / 437

Fax : (855) 23 216 438

Obek Kaorm Branch

No. 28 & 30, Street 271,

Sangkat Toeuk Thla,

Khan Sen Sok, Phnom Penh

Tel : (855) 23 883 920 / 923

Fax : (855) 23 883 982

Olympic Branch

No. 323 & 325, Sihanouk Blvd,

Sangkat Veal Vong, Khan 7 Makara,

Phnom Penh

Tel : (855) 23 993 154 / 155

Fax : (855) 23 993 153

Ou Ruessei Branch

No. 46 E0+E1, Street 111, Phum 2,

Sangkat Ou Ruessei Ti Muoy,

Khan Prampir Meakkakra,

Phnom Penh

Tel : (855) 23 989 200 / 220

Fax : (855) 23 989 210

Phnom Penh Special Economic Zone Branch

No. A6 & A8, National Road No. 4,

Sangkat Kantork, Khan Po Senchey,

Phnom Penh

Tel : (855) 23 729 857 / 858

Fax : (855) 23 729 856

Serey Sophorn Branch

No. 334, National Road No. 6,

Sangkat Preah Ponlea,

Krong Serey Sophorn,

Banteay Meanchey

Tel : (855) 54 711 386 / 387

Fax : (855) 54 711 385

Siem Reap Branch

No. 13, 14 & 15, Mondul II,

Svay Dangkum Commune, Siem Reap

Tel : (855) 63 761 062 / 063

Fax : (855) 63 761 065

Sihanoukville Branch

No. 212, Street Ekareach, District No.2,

Khan Mittapheap, Sihanoukville,

Tel : (855) 34 935 051 / 052

Fax : (855) 34 935 053

Krong Suong Branch

Phum Cheung Lang, Sangkat Suong,

Krong Suong,

Tboung Khmum Province

Tel : (855) 42 218 388 / 389

Fax : (855) 42 218 387

Stung Meanchey Branch

No. 144, St 217 (Monireth Blvd),

Sangkat Stung Meanchey,

Khan Meanchey, Phnom Penh

Tel : (855) 23 424 482 / 483

Fax : (855) 23 424 635

Takeo Provincial Branch

National Road No.2, Phum Thnal Baek,

Sangkat Roka Krau, Krong Doun Keo,

Takeo Province

Tel : (855) 32 210 664 / 665

Fax : (855) 32 210 663

Ta Khmao Branch

No. 563 & 565, Street 21,

Sangkat Ta Khmao,

Krong Ta Khmao, Kandal

Tel :(855) 23 425 172 / 173

Fax :(855) 23 425 174

Toeuk Thla Branch

No. 13-17Eo, Attwood Business Centre,

Street 110A (Russian Confederation Blvd),

Sangkat Toeuk Thla, Khan Sen Sok,

Phnom Penh

Tel : (855) 23 866 052 / 053

Fax : (855) 23 866 054

Toul Kork Branch

No. 93 A1 & A2, Street 289,

Sangkat Boeung Kak II,

Khan Toul Kork, Phnom Penh

Tel : (855) 23 999 205 / 206

Fax : (855) 23 999 203

We may live on the same planet but often we’re worlds apart because there are gaps between us. Gaps that keep us from life’s best experiences. Gaps between those who have and those

At Maybank, we believe we can cross each of these gaps, because at the bottom of it all, we’re all human. We can work together, learn together and understand each other.

The things that set us apart.

Let’s bridge those gaps by being human.

The things that bring us together.

Which is why together, we can build bridges. The bridges that

can unite people at all times from all backgrounds and from all

places. The bridges that can carry us across the ups, the downs

and the unexpected. Connecting us with the future we’ve always

been planning for and helping us lead the lives we wish to live.

Maybank. Humanising Financial Services.

www.maybank2u.com.kh

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