Maybank 1QFP11 Analyst Presentation

Financial Results1st Quarter FP2011 ended 30 September 2011

Analyst Briefing 14 November 2011

Executive Summary

Financial Performance

Business ReviewBusiness Review

Country Review

Economic Update and Prospects

1

Key Highlights

PATAMI for 1QFP11 grew 25.1% YoY and 11.4% QoQ to RM1.29 billion supported by strong revenue and pre-tax profit growth from all business segments.

R 6 l t ll b i t d d d bl di itRevenue grew 17.6% as almost all business segments recorded double digit revenue growth.

QoQ revenue declined 2.7% due to RM321.1m year end transfer of actuarial surplus to insurance income in 4QFY11 Normalised QoQ revenue would be an increase of 6 3%insurance income in 4QFY11. Normalised, QoQ revenue would be an increase of 6.3% .

Allowance for losses on loans declined 62.7% YoY to RM98.7m due to better asset quality and higher bad debts recovery mainly from GWB’s Corporate Banking, CFS’s Business Banking and SME and SingaporeBanking and SME, and Singapore.

Group loans grew 17.6% on an annualised basis contributed by overseas loans growth of 41.4% with growth in Singapore of 41.0% and Indonesia of 26.6%. Domestic loans grew 7 2% YoY driven by 17 4% growth in mortgage7.2% YoY driven by 17.4% growth in mortgage.

Capitalisation remains healthy with Risk Weighted Capital Ratio at 14.86% and Core Capital Ratio at 10.83% at Group level and 13.58% at Bank level.

KPI achievement: Return on Equity of 15.8% was higher than FY11’s ROE of 15.2% and on track to achieve FP11’s ROE of 16.0%. Loans and Debt Securities growth of 20.5% was well ahead of the target of 12.0%.

2

Key Performance Indicators for 1Q FP11

Headline KPIs Target 1Q FP11 achievements

Return on Equity 16% 15.8% (annualised)

Financial Assets Growth 12% 20.5% (annualised)

Other targets Target 1Q FP11 achievements

Group Loans Growth 12% 17.6%

• Malaysia 12% 7.2%

• Singapore 8% 41.0%

• BII 24% 26.6%

Group Deposits Growth 14% 14.9%

Risk Weighted Capital Ratio (RWCR) > 12% 14 86%Risk Weighted Capital Ratio (RWCR) > 12% 14.86%

Note: Loans growth for Singapore and BII are in their local currencies

3

Executive Summary



Country Review


4

1Q FP11 PATAMI rose 25.1% YoY to RM1.29 billion

1Q FP11 4Q FY11 1Q FY11

30 Sep 11 30 Jun 11 30 Sep 10

Net interest income 1,873.6 1,826.7 2.6% 1,774.5 5.6%

QoQ Change

YoY Change

Quarter

Net Fund based income (Islamic Banking) 438.5 365.4 20.0% 294.2 49.0%

Total net fund based income 2,312.1 2,192.1 5.5% 2,068.7 11.8%

Net income from insurance business* 96.5 345.4 -72.1% 86.8 11.2%

Non-interest income 1,222.7 1,196.7 2.2% 954.2 28.1%

Fee based income (Islamic Banking) 77.8 77.6 0.3% 44.0 76.8%

Total fee-based income 1,300.5 1,274.3 2.1% 998.2 30.3%

Net income 3,709.1 3,811.8 -2.7% 3,153.7 17.6%

Overhead expenses (1,887.9) (1,962.1) -3.8% (1,502.1) 25.7%p ( ) ( ) ( )Operating Profit before allowances forlosses on loans

1,821.3 1,849.7 -1.5% 1,651.6 10.3%

Allowance for losses on loans (98.7) (47.7) 106.9% (264.7) -62.7%

Impairment losses on securities, net 1.0 (114.0) -100.9% (13.9) -107.3%

O ti P fit 1 723 5 1 688 0 2 1% 1 373 0 25 5%Operating Profit 1,723.5 1,688.0 2.1% 1,373.0 25.5%

Share of profits in associates 36.5 40.5 -9.9% 31.4 16.5%

Profit before taxation and zakat 1,760.0 1,728.5 1.8% 1,404.3 25.3%

Taxation & Zakat (454.2) (475.3) -4.4% (350.7) 29.5%

Mi it I t t (19 5) (98 9) 80 3% (25 5) 23 7%Minority Interest (19.5) (98.9) -80.3% (25.5) -23.7%Profit after Tax and Minority Interest(PATAMI) 1,286.4 1,154.3 11.4% 1,028.1 25.1%

EPS (sen) 17.20 15.54 10.7% 14.53 18.4%

5

*net of insurance claims

Strong Balance Sheet: Total Assets grew 18.1% annualised

RM billion Sep 11 Jun 11AnnualisedGrowth

Sep 10YoY

Growth

Cash and short‐term funds 40.7 38.8 20.0% 27.1 50.2%Deposits with financial institutions 6.1 10.3 ‐164.8% 15.7 ‐61.6%Securities purchased under resale agreements 0.1 ‐ ‐ 0.2 ‐61.9%Securities portfolio 66.0 61.0 32.8% 58.7 12.4%Loans and advances 265 3 254 0 17 9% 206 8 28 3%Loans and advances 265.3 254.0 17.9% 206.8 28.3%Life, general takaful and family takaful fund assets 19.4 19.2 3.6% 18.3 6.1%Other assets 33.0 28.7 60.5% 20.3 62.4%Total Assets 430.6 412.0 18.1% 347.1 24.0%D it f t 293 3 282 0 16 0% 237 0 23 8%Deposits from customers 293.3 282.0 16.0% 237.0 23.8%Deposits and placements of banks and FI 36.1 33.3 33.2% 31.9 13.0%Borrowings 6.3 5.4 65.0% 3.3 91.4%Subordinated debts 13.0 10.8 80.9% 8.0 61.8%Capital Securities 6.1 6.1 1.4% 6.0 2.4%Insurance & Takaful liabilities & policyholders' funds 19.4 19.2 3.6% 18.3 6.1%Other liabilities 22.2 22.6 ‐8.0% 13.5 64.2%Total Liabilities 396.4 379.5 17.8% 318.0 24.6%Shareholders Funds 33.0 31.5 19.3% 28.3 16.5%Total Liabilities and Equity 430.6 412.0 18.1% 347.1 24.0%Loan‐to‐deposit Ratio 90.5% 90.1% 87.3%

6

Gross loans grew 17.6% annualised

Group loans growth driven by strong overseas loans growth of 41.4% with Singapore at 41.0% and BII at 26.6%. Domestically, loans grew 7.2% annualised and 18.7% YoY.

RM billion Sep 11 Jun 11 Sep 10Annualised Growth

YoY Growth

Community Financial Services 115.2 112.5 105.7 9.4% 9.0% Consumer 90.6 87.9 78.4 12.7% 15.6% Total Mortgage 40.3 38.6 35.2 17.4% 14.3% Auto Finance 26.6 26.0 23.3 9.7% 14.2% Credit Cards 5.0 4.9 4.2 9.8% 20.2% Unit Trust 17.5 17.1 14.2 8.4% 22.7% Other Retail Loans 1.3 1.3 1.5 ‐1.0% ‐14.4% Business Banking + SME 24.6 24.7 27.2 ‐2.2% ‐9.9%GWB (Corporate) (Malaysia) 57.9 57.4 40.1 3.2% 44.2%Total Domestic 173.2 170.1 146.0 7.2% 18.7%International 98.7 89.4 70.3 41.4% 40.4% Singapore (SGD'bn) 24.3 22.1 17.8 41.0% 37.0% BII (Rupiah'tril) 62.0 58.1 50.8 26.6% 21.9% Others 16.8 14.7 11.1 56.9% 51.7%Investment Banking 1.9 2.0 0.2 ‐27.3% 1076.6%Gross Loans 273.7 261.5 216.4 17.6% 26.5%

7

Deposits grew 14.9% annualised

i b li d d i i l b Si ( 6 ) d l i ( 6 )Deposits grew by 14.9% annualised driven mainly by Singapore (+36.5%) and Malaysia (+11.6%).

RM bilAnnualisedGrowth

SGD bilAnnualisedGrowth

Rupiah TrilAnnualisedGrowth

RM bilAnnualisedGrowth

Malaysia Singapore BII Group

Growth Growth Growth Growth

Fixed Deposits 82.5 ‐3.2% 18.9 43.2% 41.2 20.0% 157.7 13.7%Savings Deposits 32.0 8.7% 2.8 4.4% 14.8 3.5% 45.0 8.7%Current Accounts 50.7 31.9% 2.6 11.9% 10.8 ‐44.0% 60.6 16.5%Others 27 1 26 1% 0 5 132 0% ‐ ‐ 28 4 29 8%Others 27.1 26.1% 0.5 132.0% ‐ ‐ 28.4 29.8%Total Deposits 192.4 11.6% 24.8 36.5% 66.7 4.6% 293.3 14.9%*Low cost funds (CASA)LD Ratio

42.8% 21.7% 38.3% 36.0%86.1% 97.4% 91.0% 90.5%

* Normalised to exclude exchange rate fluctuation

Loans-to-Deposit Ratio

* Normalised to exclude exchange rate fluctuation


87 4% 86 8%

90.1% 90.5%89.2% 88.8% 87.7%

96.4%

97.4%

91.3%88 1%

91.0%


87.4% 86.8%86.1%86.3%

81.2% 80.9%

88.1%

8

Jun 09 Jun 10 Jun 11 Sep 11Jun 09 Jun 10 Jun 11 Sep 11 Jun 09 Jun 10 Jun 11 Sep 11 Jun 09 Jun 10 Jun 11 Sep 11

Asset Quality improved YoY with loan loss declining by 62.7% to RM98.7 million andNet Impaired Loan ratio declining to 2.19%

Net Impaired Loan RatioAllowance for losses on loans

2.99%264.7

2.83%2.74%‐62.7% YoY

2.39%

2.25%2.18%

117.598.7

+107.0% QoQ

2.18%72.2

47.7

Day 1 Sep 10 Dec 10 Mar 11 Jun 11 Sep 111Q11 2Q11 3Q11 4Q11 1Q FP11

1 Jul 10

9

Non-Interest Income including Net Income from Insurance Business and Fee Income from Islamic operations grew 28.7% YoY to RM1.40 billion

+28 1%

1,223 1Q FY11 1Q FP11

+46 1%

+28.1%

954 860

+46.1%

588

235299

+ 73.5%+69.2% ‐262.7% +11.2%+5814.2% +186.4%

RM m

illion

139 186

(5) 46 86.8 45.3

235

(303)

132 96.5 78.6

Total non‐interest Commission, Investment & Unrealised Foreign Exchange Other Income Net income from Fee income from income service charges

and feesTrading Income gain/(losses) on

securities & derivatives

profit Insurance Business

Islamic Operations

10

Overheads grew 25.7% YoY but declined by 3.8% QoQ

Admin, general expenses & fees & brokerage

Marketing Expenses

IT Expenses+25.7% YoY

QoQ YoYPersonnel costs ‐0.9% 23.1%

Overhead Expenses1Q FP11

Personnel costs +25.7% YoY

‐3.8% QoQ1 962 1

IT Expenses ‐18.2% 18.6%Marketing Expenses ‐26.3% 11.3%Admin, general expenses& fees & brokerage

‐0.2% 34.6%

634.8 633.7

1,887.91,962.1

1,502.1Overhead expenses rose 25 7% due to higher

& fees & brokerageTotal ‐3.8% 25.7%

161.2 131.9 87 3

131.8 97.2

470.9

million

Overhead expenses rose 25.7% due to higher personnel cost of 23.1% attributed to consolidation of Kim Eng and higher ESOS charge.

1,034.3 1,025.1

111.2 87.3

RM

As a result, the Group Cost to Income Ratio (CIR) rose to 50.4% from 47.6% in the corresponding period.

832.7

11

1Q FY11 4Q FY11 1Q FP11

Capital Adequacy remained strong

Group

14.25% 14.86%14.72% 15.36%

11.21% 11.84% 10.23% 10.83%

30 Jun 11* 30 Jun 11** 30 Sep 11* 30 Sep 11**

Core capital ratio Risk‐weighted capital ratio * Full electable portion paid in cash

Bank

portion paid in cash

** Full electable portion reinvested

12.49% 13.32% 12.79% 13.58%

30 Jun 11* 30 Jun 11** 30 Sep 11* 30 Sep 11**

12

Core capital ratio & Risk‐weighted capital ratio

Maybank Group: Key Ratios

1Q FP11 4Q11 3Q11 2Q11 1Q11

Net Interest Margin 2.46% 2.50% 2.57% 2.70% 2.69%Return on Equity 15.8% 15.1% 15.5% 15.7% 14.6%Fee to Income Ratio 37.9% 42.3% 33.8% 33.5% 31.7%Cost to Income# 50.4% 51.5% 49.0% 49.8% 47.6%Loan‐to‐Deposit Ratio 90 5% 90 1% 89 4% 88 4% 87 3%Loan‐to‐Deposit Ratio 90.5% 90.1% 89.4% 88.4% 87.3%

Asset QualityGross NPL or Impaired Loan Ratio 3.23% 3.20% 3.66% 4.20% 4.70%Net NPL or Impaired Loan Ratio 2.18% 2.25% 2.39% 2.74% 2.99%Loan Loss Coverage 81.9% 86.0% 86.9% 84.6% 84.1%Charge off rate (bps) 15 8 13 22 49

Capital Adequacy (Group)Core Capital Ratio 10.83%^ 11.84%^ 11.60%* 11.85% 11.38%*Risk Weighted Capital Ratio 14.86%^ 15.36%^ 14.12%* 14.21% 14.05%*

# Total cost excludes amortisation of intangibles for BII and Kim Eng

^ Assuming full reinvestment of DRP

* After electable portion dividend reinvested

13

Executive Summary



Country Review


14

Revenue and PBT growth seen in all segments, led by CFS, GWB, Insurance and International Banking

3,154

3,709 1Q FY11 1Q FP11

+69.4%

+18 8%

+17.6%

million)

Global Wholesale Banking (GWB)

1,349 961

1,603

425472

1,178

+2.8%+77.3% +566.3% +22.6%+12.3%

+18.8%

Revenu

e (RM

240 420 45 187

425 297 193

Total Community Financial Services

Corporate Banking Global Markets Investment Banking

International Banking

Insurance, Takaful & AssetFinancial Services Banking Banking & Asset

Management

+57.0%+25.3%

M m

illion)

Global Wholesale Banking (GWB)

1,404

542

1,760

816 408 454

+50.6%

+139.9% +10.4% +543.7% +56.4% +24.1%

before ta

x (RM

542 164

370 7

290 79

394 408

47

454 98

Total Community Financial Services

Corporate Banking Global Markets Investment Banking

International Banking

Insurance, Takaful & Asset

Profit

15

Financial Services Banking Banking & Asset Management

Note: Head Office & Others: Revenue and PBT : ‐RM47.9m (1QFY11) vs. –RM457.3m (1QFP11)* Includes overseas’ GWB # Includes Kim Eng

Revenue Growth Contribution

N t Fi i I (i l di I l i B ki I )

1,114 1,218

Net Financing Income (including Islamic Banking Income)

+9.3%

+14.4%

Global Wholesale Banking (GWB) +47.6%1QFY11 1QFP11

187 159

658

286 162

752 +53.4% +2.1%

%

+1,702.9% ‐37.9%

187 159 4 21

162 67 13

Community Financial Services

Corporate Banking Global Market Investment Banking International Banking Insurance, Takaful & Asset Management

Non‐Interest Income

426

Non‐Interest Income

+63.3%+40.5%

7 8%

Global Wholesale Banking (GWB) +90.9%

235

53

262

41

303

167

384

138

310 230

426

180

+161.7% +18.5% +463.3% +7.8%

Community Financial Services

Corporate Banking Global Market Investment Banking International Banking Insurance, Takaful & Asset Management*

■ Net interest income rose 13.1% YoY driven by Corporate Banking growth at 53.4% while International grew by 14.4%.

16

■ Non‐interest income grew by 26.7% due strong growth across the board.

*Insurance, Takaful & Asset Management includes net income from insurance business

Revenue and PBT by geography

Revenue Profit Before Tax1QFP11

International: International:23%

Gross loans*

International:36%

(Jun 11 – Sep 11)

22%

8%6%

14%

6% 3%

RM3 71b RM1.76b

36% 23%

RM273.7b

36%

15%4%

64%

77%

RM3.71b64%

18%

68%12%16%4%Malaysia Singapore Indonesia Others

1QFY11(Jun 10 – Sep 10)

19%

8%5%0%0%0%0%

15%

RM3 15b RM1 40b RM216.4b

13%

2%7%

10%

17%4%

68%

International: International:

RM3.15b RM1.40b RM216.4b

International:

78%70%

10%

17

30% 22% 32%

*figures exclude unwinding of interest

Strong growth despite intense competition Asset quality continued to improve

Community Financial Services: Mortgage grew 17.6% with strong growth in approvals

Strong growth despite intense competition Asset quality continued to improve

+17.6% annualised(Industry: 14%) 5.0%

4 5%

35 0

4.3 5.0 5.3

40.338.635.2

4.5%3.9%

3.3%2.9%

30.9 33.6 35.0

Sep 10 Jun 11 Sep 11Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

Housing loans Shophouse loans

Market share stabilised Strong Growth in Mortgage Approval

Gross NPL / Impaired loan ratio ‐Mortgage

+52.4% annualised

13.0%

13.0%13.0%

16.5 17.719.6

22.925.9

annualised

12.9% 12.9%

Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

18

Total Mortgage Market shareApproval (in RM billion)

Community Financial Services: Hire Purchase improved in loans growth and market share

Hire purchase grew 9 4% in Sep 11 Asset quality remained stable withHire purchase grew 9.4% in Sep 11

+9.4% annualised

Asset quality remained stable with stable market share

25 5 26 118.7% 18.8% 18.8% 18.5%

19.0%

2.0%

2.5%

22.8 25.5 26.1

0.7% 0.7% 0.7%0 5% 0.6%

17.7%18.3%

17.5%

18.0%

0.5%

1.0%

1.5%

Sep 10 Jun 11 Sep 11

Hire Purchase

0.5%17.0%0.0%

Sep 10 Dec 10 Mar 11 Jun 11 Aug 11

Gross NPL / Impaired loan ratio

Transport Vehicle Market share

Non‐national cars form 65% of total Hire Purchase loans New cars form 86% of total Hire Purchase loans

86%New cars65%Non‐national cars

14%Used cars35%National cars

19

0% 20% 40% 60% 80% 100%0% 10% 20% 30% 40% 50% 60% 70%

Community Financial Services: Cards continued to grow above market growth

Cards Market Share Cards performance outperforming industryCards Market Share Cards performance outperforming industry

Sep 11 Sep 10

Cardbase 17.7% 16.4%YoY Maybank Industry*

Cardbase 0.4% ‐6.8%Billings 23.8% 22.6%

Receivables 15.0% 14.1%

Merchant Sales 30 4% 29 3%

Cardbase 0.4% 6.8%Billings 22.5% 16.5%Receivables 17.1% 9.6%Merchant Sales 19.7% 15.4%

• Card base excludes Debit cards• Merchant and Billings consist of transactions done through

Credit, Charge and Debit cards

• Industry figures for cards includes commercial banks and non‐FI players

Merchant Sales 30.4% 29.3% Merchant Sales 19.7% 15.4%

Cards receivables Card base (‘000)+9.2% annualised ‐0.0%

1,467 1,474 1,473

4.18

4.784.89

S 10 J 11 S 11S 10 J 11 S 11

20

Sep 10 Jun 11 Sep 11Sep 10 Jun 11 Sep 11

Business Banking and SME: Deposits grew at 59.2% annualised

Loans declined marginally at 1 6% annualised Strong deposits growth at 59 2% annualised

+59.2% annualised

‐1.6% annualised

Loans declined marginally at 1.6% annualised Strong deposits growth at 59.2% annualised

64 770.2

24.2

25.1 25.124.7 24.6

M billion

M billion

58.964.7

41.247.3

Sep 10 Dec 10 Mar 11 Jun 11* Sep 11*

RMRM

Sep 10 Dec 10 Mar 11 Jun 11* Sep 11*

Business Banking and SME NPL remained stableSME loans market share recovering(based on Bank Negara definition*) Post FRS139Pre‐FRS139

*Figures are based on new market segmentation effective post‐June'11 onwards. *Figures are based on new market segmentation effective post‐June'11 onwards.

15.8%

14.2%

15.0%

14 9%

15.5%16.5%

17.0%17.4%

11.5% 11.4% 10.3%

17.1% 16.2% 14.9%12.9% 13.0%

14.2% 14.9%

D 09 M 10 J 10 S 10 D 10 M 11 J 11 A 11 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

21

Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Aug 11 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

*SME includes loans under GWB (Corporate)

Global Wholesale Banking: Loans growth driven by term loans

l l li d hTotal GWB loans: annualised growth Strong position in terms of Trade Finance Market Share

25.1%

12.5

11.6Trade Finance

Sep 11

‐27.5%

22.5% 22.6%23.3%

24.5%25.6%

18.1

18.5Short TermRevolvingCredit

& O d ft

Jun 11

+7.8% Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

billion

27.7

& Overdraft

Corporate banking: Asset Quality remained stable

Post FRS139

RM b

26.8Term loans +14.3%

Post FRS139Pre‐FRS139

4.2% 3.9% 3.4% 3.4% 3.5%

0.0 20.0 40.0

Total GWB loans grew 3.2% to RM57.8 billion as at 30 Sep 2011.

1.3% 1.2% 1.5%

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q FP11

22

Note: GWB loans for June 11 are based on revised figures. Gross NPL / Impaired Loan Ratio

Global Markets: Revenue growth supported by non interest income

Growth in Revenue Credit Rating for Private Debt Securities in Malaysia+12.3%

Growth in Revenue Credit Rating for Private Debt Securities in Malaysia

420.4472.1

158.8 162.2

261.6 310.0 +18.5%

+2.1%RM m

illion

AAA, 35.7%A and below, 35.4%

AAA

‐AA to AA

A and below

1QFY11 1QFP11

Net interest income Non interest income

2.1%

‐AA to AA, 28.9%

10 4%

Group Securities Portfolio grew 32.2% annualised to RM65.9 billion

PBT grew 10.4% attributed to 12.3% growth in revenue and absence of impairment losses on securities

6.2

28.6

5.4

PDS / Corporate B d

Others

Sep 11+39.7%

‐52.4%+10.4%

on

370

408

28.8

26.0

32.0Government Securities

Bonds Sep 11

Jun 11

+43.5%

+39.7%

RM m

illio

23

0.0 10.0 20.0 30.0 40.01QFY11 1QFP11

Fee based income continued strong growth at 85.7%

Fee based Income rose 85 7% YoY 1Q FP11 Fee based Income SegmentationFee based Income rose 85.7% YoY 1Q FP11 Fee‐based Income Segmentation

228 0

86.2

FY11

1Q12Underwriting/Placement

8%

Agency/Guarantee

17%

98.2

173.3

228.0

FY09

FY10

FY11Miscellaneous

1%

Arrangers'

97.9

198.3

0 0 50 0 100 0 150 0 200 0 250 0

FY07

FY08 Brokerage34%

g18%

Corporate d i

RM million

Industry Position & Market Shares Improved

M b k IB ( ith t Ki E )Industry Rank Industry Rank Total Value

D l /I M k t Sh

0.0 50.0 100.0 150.0 200.0 250.0 advisory14%

ombe

rg

Maybank IB (without Kim Eng)y

FY2011y

1Q FP11 (billion) Deals/Issues Market Share

M&A 3 1 USD 5.0 14 39.2%

Equity & Rights Offerings 2 1 USD 0.73 2 9.6%

Source: B

loo

Debt Markets ‐Malaysia Domestic Bonds 2 1 RM 4.9 13 26.5%

Debt Markets ‐Malaysian Ringgit Islamic Bonds

1 3 RM 1.8 10 21.8%

E it B k 3 7 RM 13 4 5 7%

24

Equity Brokerage 3 7 RM 13.4 n.a. 5.7%

Investment Banking: Recent Notable Deals

Equity Capital Market

July 2011RM392.3 mil

July 2011RM2,662.0 milB i A d

July 2011RM74.4 mil

Sole Adviser

Bumi Armada

Joint Principal Adviser Sole Adviser, Underwriter and

Bookrunner

IPO

Joint Principal AdviserJoint Global Co-ordinator

Joint BookrunnerJoint Managing Underwriter

IPO

Sole Placement Agent

Private Placement

Debt Capital Market

Global Trust Certificates (Wakala Global Sukuk)

USD2,000,000,000

WAKALA GLOBAL SUKUK BERHAD

Dim Sum Bonds

Joint Bookrunner

RMB1,380,000,000

GENTING HONG KONG LIMITED

Medium Term Notes Programme

Joint Principal Adviser/Joint Lead

RM5,000,000,000,000

YTL POWER INTERNATIONAL BHD

Ringgit Malaysia Subordinated Notes Programme

RM3,000,000,000

MALAYAN BANKING BHD

Guaranteed Islamic Medium Term Notes Programme

RM2,000,000,000

SYARIKAT PRASARANA NEGARA BERHAD

Joint Malaysian Adviser, Joint Lead Manager, Joint Bookrunner

June 2011

Joint Bookrunner

June 2011

Arranger/Joint Lead Manager

August 2011

Joint Lead Arranger

July 2011

Joint Lead Arranger / Joint Lead Manager / Joint Bookrunner

August2011

25

Within Group Islamic Banking business, Maybank Islamic sustainedstrong financing growth of 24%

Maybank Islamic financing (24% annualised)l i ki d **

+13% +31% +17%

Maybank Islamic financing (24% annualised)Total Gross Financing = RM50.4 billion as at Sep 2011

Group Islamic Banking Income and PBT**

RM million 1Q FP11 1Q FY11YoY

Growth

16.3

15.8

13.9

Fund based income 438.5 294.2 49%

Fee based income 77.8 44.0 77%

Total income 516 3 338 2 53%

7.9

11.2

.3

10.7 0% +130%+0% +72% ‐19%‐28%

Total income 516.3 338.2 53%

Allowance for losses on financing

(30.0) (4.1) 633%

Profit before tax and zakat 292.3 195.3 50%

7

4.4

4.3

4.2

7 .

3.3 3.6 4.

4

6.6

4.8

.2

3.9

3.3 Maybank Islamic: Improving key ratios

0.3 0.8 1.1

0.3 0.9 1.1

0.2 0.

9 1.1

2

AITAB Mortgage Financing

Term Financing

Cards Cashline‐i (CFS)

Cashline‐i (GWB)

STRC‐i Term Financing

Trade Financing


Financing to Deposit Ratio 96.6% 87.8% 96.6%

Islamic Financing to Financing Financing (CFS)

(CFS) (GWB) Financing (GWB)

Financing


Islamic Financing to Total Domestic Loans

28.2% 27.4% 24.5%

Net Impaired Financing Ratio 1.18% 1.25% 1.93%

26

Consumer: +16% Business: +56%

**Islamic Banking (includes Maybank Islamic and the Group’s other Islamic operations)

Etiqa: No. 1 Position in Life/Family (new business) and General Business

Overall Loss Ratio Lower Than Industry Combined Gross 15%

Industry

Credit

Regular Premium

Single Premium

Overall Gross Premium 58.2% (Etiqa) vs. 59.0% (Industry)Premium

+9%

+15%

14%

59.0%

27.1%‐65%

19.8%

33.4%

29.5%Fire1QFP11

Fire

Total Life

Group

Credit

+9%

+198%

‐14%

6%75.6%

29.9%-5.4%MAT

71.6%75.3%

72.8% 74.7%Motor

20.0%1QFP11

1QFY11

Misc

MAT

Motor +29%

+130% 41.3%‐6%

38.2% 35.8%32.4%

32.4%Misc

-7.0%3.8% 13.7%

‐ 500.0 1,000.0 1,500.0

Total General

Total Assets (RM billion) New Products Launched

+32% Dec10 Mar11 Jun11 Sept11Industry Source: Loss ratio for Malaysia’s Conventional business only with rolling 12 Months (Jul10 ‐Jun11). Company Source: Loss ratio for Malaysia’s Insurance and Takaful General business with rolling 12Months (Oct10 ‐Sept11)

22.8 22.7

Total Assets (RM billion)

‐2% annualised

New Products Launched

■ 1Malaysia Micro Protection Plan An affordable insurance protection plan benefiting the small business owners. L h d 8 S t 2011

+6 YoY

21.5

S 10 J 11 S 11

Launched on 8 Sept 2011.

■ Fortune8A Single Premium close‐end investment‐linked plan offering a combination of insurance and

h d

27

Sep 10 Jun 11 Sep 11 investment. Launched on 1 Nov 2011.

Executive Summary



Country Review


28

Singapore: PBT surged 43% boosted by higher fee income and lower provision

3 31 01.1

Others (Consumer)

Car Loans

Diversified Loan PortfolioRevenue and PBT rose 33% and 43% YoY respectively

Consumer

22.0

17 8

SGD million 1Q FP11 1Q FY11 YoY

Growth 24.2

41% YoYannualised

2 72.9

1 92.6

3.0 4.0

5.0 5.3

3.3

3.3 3.3

0.7

1.0

Housing Loans

Others (Corporate)

GD billion

Consumer

C t

17.840%

Net fund based income 119.0 113.7 4.7%

Non interest income 90.8 44.5 104.2%

Total income 209.9 158.2 32.7%

3.7 4.6 5.5 2.1

2.8 3.1 2.0

2.7 1.9


Non‐bank Financial Institution

General Commerce

Building & Construction

SG Corporate

60% Provision (1.3) (3.6) ‐64.9%

Profit before tax 120.5 84.1 43.3%

0 93%


Maybank Singapore loans growth outpaced industry‘sAsset Quality remains robust

0.93%0.77% 0.75%

0.63% 0.58% 0.65% 0.58%0.46% 0.47%

18.4%23.4%

25.4%

32.7%

16.2%

30.6%

11.4% 14.8%19.4%

0.10% 0.09% 0.07% 0.09% 0.07%0.25%

0.23%0.14%

0.18%

Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

5.0%8.6%

‐1.4%Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Sep 11

29

Gross NPL Net NPL Maybank Singapore Growth Industry Growth

BII: Profit before tax grew 251.2% YoY

Income Statement

Rp Billion Jul 11-Sep 11 Contribution

Jul 10-Sep 10 Contribution

YoY% Change

Interest income 2,047 1,688 21.3%

Interest expense (1,041) (739) 40.9%

Net interest income 1,006 949 6.0%

Non-interest income 562 512 9.8%

Gross Operating income 1,568 1,461 7.3%

Operating expenses (excluding prov.) (1,055) (984) 7.2%

Operating income before provision 513 477 7 5%Operating income before provision 513 477 7.5%

Provisions (218) (393) -44.5%

Profit before taxation and zakat 295 84 251.2%

Note:• Based on income statement consolidated into Group accounts.

• PBT is inclusive of amortisation of CDI of IDR32.5 billion (Jul 11‐Sep 11)

30

BII: Revenue grew 16.0% on the back of 26.6% consolidated loans growth

Net Interest MarginGroup Revenue and PBT (Rp billion) for 9M11 (as reported in BII)

4,063 4,712

Net Interest Margin Group Revenue and PBT (Rp billion) for 9M11 (as reported in BII)

+16.0%

5.78%5.89%

5 67%

696 790

+13.6%

5.67%

5.43% 5.28%

9M10 9M11

Revenue PBT

Sep’10 : before adoption SFAS No.50/55; Sep’11 after Adoption SFAS No.50/55

Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

Sep’10 : before adoption SFAS No.50/55; Sep’11 after Adoption SFAS No.50/55

85.9% 85.4% 85.8%19 0 19.9

21.3 22.2

Loan‐to‐Deposit Ratio (Bank only)Loan composition (Rp trillion)

22%

Ann. growth

83.2% 83.0%

12.0 12.2 13.3 14.1 14.8

4 6

17.6 19.0

18.617.7 18.8 19.1 20.111%

28%

Sep 10 Dec 10 Mar 11 Jun 11 Sep 11

3.6 4.2 4.6 4.5

0.40.40.40.40.5

3.0

Sep-10 Dec-10 Mar-11 Jun-11 Sep-11

C t SMEC C S i h S b idi i

33%

0%

31

Corporate SMEC Consumer Syariah Subsidiaries

Modified LDR (Bank Only) as of Sep’11 : 82.29%

BII : Branches and touch points expansion on track

A Q liBranches and ATM Asset QualityBranches and ATM

893952 1,009 1,017

1,088 3.5%3.1%

255 255 260 274 295 327 337 344 346

748 787 806 844 893

2.0% 1.7%1.4% 1 2% 1 4%

2.6% 2.5% 2.5%

Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11

1.4% 1.2% 1.4%

Sep/10 Dec/10 Mar/11 Jun/11 Sep/11

Net NPL Gross NPL

Capital Adequacy : consolidated(credit, operational & market risk)

Cost to Income RatioSep’10 : before adoption SFAS No.50/55; Sep’11 after Adoption SFAS No.50/55

13.16% 13.06%

63.9%66.4% 12.50%

11.68%

12.33%

Sep-10 Sep-11

68%

32

p p

Cost to Income Ratio (Bank Only) as of : Sep’10 : 60.4%, Sep’11: 61.4%, Sep-10 Dec-10 Mar-11 Jun-11 Sep-11

R d PBT (R billi )

WOM : 7.3% growth in revenue, whilst PBT impacted by provisions

Unit Financing

1,116 1,198

Revenue and PBT (Rp billion) Unit Financing(In 000 unit)+7.3%

486

374424

178‐94.9%

368

118

374

178

9

9M10 9M11

R PBT

50

New Used Total

Revenue PBT

Asset Quality Financing Amount(In IDR bn)

Sep 10 Sep 11

3.41%

1 85%2.17%

2.43%2.69%

%

1.99%

Gross NPL

Net NPL

4,839 5,243

3,072 3,309

1.85%

0.73% 1.09% 0.94%1.09% 403 238

New Used Total

33

3Q10 4Q10 1Q11 2Q11 3Q11New Used Total

Sep 10 Sep 11

MCB Bank: Financial Highlights

YTD PBT i d i di

39 2

Revenue and PBTYTD PBT increased 24.4% against corresponding period mainly contributed by 22% increase in net interest income on the back of higher KIBOR, while non interest income rose 31% mainly due to h i f i i f

+23.4%

31.7

39.2

11.0 12.4 19.5

24.3

8 0

the increase from investment income, fee, commission and brokerage income and income from dealing in foreign currencies.

Loans declined slightly by 5.1% but deposits grew

+13.1%

+12.0%

+24.4%

PKR

Billi

ons

7.1 8.0

9M10 9M11 3Q10 3Q11

strongly, with low-cost CASA constitutes of 81% of total customer deposit portfolio.

NPL ratio increased to 10%, due largely to the increase of NPL by 8% and decline in loans

Revenue PBT

Loans and Deposits

ygrowth.

496 2

+15.0%Key Ratios

Return on assets 4 70% 4 80%

9M11 9M10

254.6 241.6

431.3

496.2

R B

illio

nsLoans ‐ 5.1%

Return on assets 4.70% 4.80%

Return on equity 25.78% 24.19%

Cost‐to‐income ratio 31.45% 32.70%

Loans to deposit ratio 53 12% 58 47%

PK

R DepositsLoans to deposit ratio 53.12% 58.47%

NPL Ratio 10.04% 9.68%

Net Interest Margin 7.01% 6.86%

34

As at Dec '10 As at Sept '11

An Binh Bank: Financial Highlights

1,257

Revenue and PBTPBT declined due largely to the higher operating expenses and the increase in loan loss provisioning, on the back of higher NPL. This if offset by the increase in revenue by 27 6%

+27.6%

985

355 441

546

329192

offset by the increase in revenue by 27.6%, contributed by the increase of net interest income.

Loans declined due partly to the compliance to t b th t l b k i l di

‐39.7%

+24.4%

‐88.6%VND Billion

22

9M10 9M11 3Q10 3Q11

Revenue PBT

measures set by the central bank, including a cap to annual loans growth and reduction of exposures to non-productive sectors.

NPL ratio increased from 1.62% to 5.79% on the

Loans and Depositsback of increase in NPL and decrease in loans portfolio.

Key Ratios 9M109M11‐0.6%

Key Ratios

Return on assets 1.09% 2.01%

Return on equity 7.17% 13.24%

Cost‐to‐income ratio 45.05% 37.01%

9M109M11

19,87717,777

25,947 25,787Billion

L

‐10.6%

Cost to income ratio 45.05% 37.01%

Loans to deposit ratio 68.94% 75.21%

NPL Ratio 5.79% 1.62%

Net Interest Margin 5.04% 4.03%

VND B Loans

Deposits

35

e e es a g 5 0 % 03%

As at Dec '10 As at Sept '11

Executive Summary



Country Review


36

Malaysia: Sustained growth for 2011

Inflation expected to rise to 3.1% in 2011 & 2.6% in 2012Growth to be sustained at 4.5% in 2011 & 3.5% ‐ 4.0% in 2012

10

15

20

25

10

12

14 CPI and components (% YoY)

Inflation expected to rise to 3.1% in 2011 & 2.6% in 2012 (2010: 1.7%)

Growth to be sustained at 4.5% in 2011 & 3.5% 4.0% in 2012 (2010: 7.2%)

Quarterly GDP and annual growth rateSeptember CPI: +3.4% YoY

Q2 GDP: +4% YoY

(10)

(5)

0

5

10

4

6

8

10

Food & Non‐Alcoholic Beverages

Transport (RHS)

(25)

(20)

(15)

0

2

ul‐02

ec‐02

ay‐03

ct‐03

ar‐04

ug‐04

an‐05

un‐05

ov‐05

pr‐06

ep‐06

eb‐07

ul‐07

ec‐07

ay‐08

ct‐08

ar‐09

ug‐09

an‐10

un‐10

ov‐10

pr‐11

ep‐11

Utilities, Housing & Other Fuels

4.5

Ju De

Ma Oc

Ma

Au Ja Ju No Ap

Se Fe Ju De

Ma Oc

Ma

Au Ja Ju No Ap

Se

Ringgit/USD: RM3.20 by end 2011

Ringgit Malaysia per USD 25bp hikes in OPR in Mar, May, July 10 and

OPR to remain unchanged at 3% until end of 2012RM3.11 per USD

as at Nov 9

2.5

3.0

3.5

4.0 May 112.903.003.103.203.303.40

0.5

1.0

1.5

2.0

07 07 07 08 08 08 09 09 09 10 10 10 11 11 11

OPR SRR

3.503.603.703.803.90

05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11

37

Jan‐0

May‐0

Sep‐0

Jan‐0

May‐0

Sep‐0

Jan‐0

May‐0

Sep‐0

Jan‐1

May‐1

Sep‐1

Jan‐1

May‐1

Sep‐1

Sep

-0D

ec-0

Mar

-0Ju

n-0

Sep

-0D

ec-0

Mar

-0Ju

n-0

Sep

-0D

ec-0

Mar

-0Ju

n-0

Sep

-0D

ec-0

Mar

-0Ju

n-0

Sep

-0D

ec-0

Mar

-Ju

n-S

ep-

Dec

-M

ar-

Jun-

Sep

-

Malaysia: Banking Sector

Total Loans grew 13.8% YoY for September 2011 Total Deposits grew 12.6% YoY for September 2011Total Loans grew 13.8% YoY for September 2011

n

Total Deposits grew 12.6% YoY for September 2011

n14%

16%

18%

900

950

1,000

Total Loans Total Loans YoY GrowthHousehold YoY Growth Business YoY Growth

20%

25%

1100

1150

1200

1250 Total Deposits Total Deposits YoY Growth

RM billion

RM billio

8%

10%

12%

14%

700

750

800

850

900

10%

15%

900

950

1000

1050

1100

2%

4%

6%

550

600

650

n‐07

y‐07

p‐07

n‐08

y‐08

p‐08

n‐09

y‐09

p‐09

n‐10

y‐10

p‐10

n‐11

y‐11

p‐11

0%

5%

750

800

850

n‐07

y‐07

p‐07

n‐08

y‐08

p‐08

n‐09

y‐09

p‐09

n‐10

y‐10

p‐10

n‐11

y‐11

p‐11

Capital Adequacy remains strong Gross NPL RM27.2b, Net NPL ratio: 1.96%

Jan

May Sep

Jan

May Sep

Jan

May Sep

Jan

May Sep

Jan

May Sep

Jan

May Sep

Jan

May Sep

Jan

May Sep

Jan

May Sep

Jan

May Sep

2.5%35 Gross NPL ‐ 3 Months (LHS) Net NPL (RHS)15

16

%

RM billion

14.6%

12.5%

2.0%

2.3%

15

20

25

30

10

11

12

13

14R

1.5%

1.8%

0

5

10

10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 11

7

8

9

10

07 07 07 08 08 08 09 09 09 10 10 10 11 11 11

Risk Weighted Capital RatioCore Capital Ratio

38

Jun‐1

Jul‐1

Aug

‐1

Sep‐1

Oct‐1

Nov

‐1

Dec‐1

Jan‐1

Feb‐1

Mar‐1

Apr‐1

May‐1

Jun‐1

Jul‐1

Aug

‐1

Sep‐1

Jan‐

May‐

Sep‐

Jan‐

May‐

Sep‐

Jan‐

May‐

Sep‐

Jan‐

May‐

Sep‐

Jan‐

May‐

Sep‐

Singapore: Economic growth expected to moderate in 2012

R l GDP h f d b fGDP growth forecast: 3% to 5% for 2011 and below 3% to 5% for2012, with future economic growth expected to be between 3-4% over the next decade.

Inflation rate forecast at 5.0% for 2011, 2.5% to 3.5% in 2012. 15

20

7580

Real GDP growth for 2011 expected to be 3-5% for 2011 (2010: 14.5% )

DBU loan growth accelerated to 29.7% y-o-y, as at August 2011,led by stronger lending to General Commerce sector. However,full-year loan growth could moderate to 11% as uncertainties inthe private property market weigh on mortgage demand. (5)

0

5

10

15

5560657075

Net interest margin (NIM) could dip marginally to 1.7% – 2.0%in 2011, from 1.8%–2.1% in 2010. The spread could howevercould see slight increase subsequently in 2012-13, as banks inSingapore charge higher risk/liquidity premiums amid a more

(10)

(5)

5055

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

Real GDP (S$B) % YoY Growth (RHS)uncertain economic climate and tightening in deposit funding.

Loan Growth expected to moderate to 11% in 20113-month SIBOR to range between 0.4%-0.6% in 2011

Real GDP (S$B) % YoY Growth (RHS)

39

Indonesia: Continued growth of 6.4% in 2012

Real GDP Growth: growing faster ■ GDP growth is expected to reach 6.5% in 2011 and 6.4% in

2012, higher than the growth of 6.1% in 2010■ Inflation rate will likely to stay soft at 4.56% due to easing

commodity prices this year. BI has recently cut its BI rate

g g

Sector Contribution (% of GDP Growth)

6 0

8.0

by 50bps to 6% on the concern of global economic slowdown next year. Inflation is expected to be at 5.80%.

■ USD/IDR will likely to hover around 9,000 toward end of 2011 amid uncertain global condition. Hence, some 2.0

4.0

6.0

volatility might appear as well. For 2012, expected USD/IDR is around 8,800.

■ Loan growth is expected to reach 22.0% in 2011 and 22.6% in 2012 with the investment segment driving

th

-2.0

-Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010

Agriculture Mining Manufacturing ElectricityConst Trade TransComm Financegrowth.

■ NPL is expected to reach 3.80% for 2011 and 3.90% for 2012.

Bank’s loan growth: trending upwards Bank Indonesia cut BI rate to 6%

Const Trade TransComm FinanceServices GDP

( %)

23.37%

20.00%

25.00%

30.00%

Loan Deposit

(y-y %) g g p

8 0

10.0

12.0

14.0Inflation y-y BI rate

(y-y %)

19.07%

5.00%

10.00%

15.00%

2.0

4.0

6.0

8.0

40

0.00%

Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-110.0

Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11

Prospects

l k f h l b l h ll l h h l d dEconomic outlook for the global economy remains challenging. Although external demand could weaken in ASEAN, domestic demand should be generally resilient and continue to support credit growth.

L th i M l i i t d t b i l d i b th ll t f ETP j t dLoans growth in Malaysia is expected to be mainly driven by the rollout of ETP projects and domestic consumption. Singapore’s credit demand is expected to moderate with growth remaining broad based but the external sector could be vulnerable to slower global economic growth. In Indonesia, the strong loans growth is expected to be sustained due to robust g , g g pdomestic demand.

The Group will continue to be selective in pursuing loans growth and will focus on pricing and asset quality to ensure sustained profitability.q y p y

�Leveraging on the regional investment banking platform of Kim Eng and the expertise of Maybank IB will further boost the Group's fee income base although brokerage income contribution may see weaknesses as a result of volatile market condition.

The Group’s healthy capitalisation will be maintained through improved funding initiatives and capital conservation through the dividend reinvestment plan while monitoring for the forthcoming Basel III capital requirements to be introduced by Bank Negara.

Barring any unforeseen circumstances, the Group expects its financial performance for the financial period ending 31 December 2011 to be satisfactory and on track to achieve its target Return on Equity of 16.0% (FY 30 June 2011: 15.2%) and growth in financial assets of 12% (FY 30

)

41

June 2011: 22.6%).

Thank You

Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain allDisclaimer. This presentation has been prepared by Malayan Banking Berhad (the Company ) for information purposes only and does not purport to contain allthe information that may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or onbehalf of the Company as to the accuracy or completeness of the information or opinions contained in this presentation.

The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any partof it form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

Th C d t t li bilit h t f l h i i f f thi t ti th i t t th i i i i

Khairussaleh RamliGroup Chief Financial Officer

MALAYAN BANKING BERHAD14th Floor Menara Maybank

Narita NazireeHead, Group Strategy Management

The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or their contents or otherwise arising inconnection therewith.

Raja Indra PutraHead, Investor RelationsGroup Chief Financial Officer

Contact: (6)03‐2074 4288 Email: [email protected]

14th Floor, Menara Maybank100, Jalan Tun Perak50050 Kuala Lumpur, MalaysiaTel : (6)03‐2070 8833

wwwmaybank com

Head, Group Strategy ManagementContact: (6)03‐2074 8101Email: [email protected]

Head, Investor RelationsContact: (6)03‐2074 8582Email: [email protected]

42

www.maybank.com