000

56th Annual General MeetingPresentation to Shareholders

by Datuk Abdul Farid Alias, Group President & CEO

7 April 2016

Humanising Financial Services

111 1

To strengthen the Group’s revenue growth

To continue focus on productivity Group-wide

To deploy a capital efficient strategy

To continue with international market performance

To solidify our position in ASEAN for AEC opportunities

e.g. Qualified ASEAN bank

Group Strategic Priorities for FY2015

222

0.22

0.23

0.24

0.25

0.26

0.27

0.28

0.29

Jan 1

5

Feb 1

5

Mar

15

Apr

15

May 1

5

Jun 1

5

Jul 15

Aug 1

5

Sep 1

5

Oct

15

Nov 1

5

Dec 1

5

2

Significant Change in Market Environment in 2015

35

40

45

50

55

60

65

70

75

Jan 1

5

Feb 1

5

Mar

15

Apr

15

May 1

5

Jun 1

5

Jul 15

Aug 1

5

Sep 1

5

Oct

15

Nov 1

5

Dec 1

5

5

7

9

11

13

15

17

19

Jan 1

5

Feb 1

5

Mar

15

Apr

15

May 1

5

Jun 1

5

Jul 15

Aug 1

5

Sep 1

5

Oct

15

Nov 1

5

Dec 1

5

Declining oil prices, weakening ringgit, higher market volatility and

rising credit default swap spreads

Brent Crude Oil (USD) MYR/USD

FBM KLCI Volatility Index (%) Malaysia CDS Spread (bps)

100

120

140

160

180

200

220240

260

Jan 1

5

Feb 1

5

Mar

15

Apr

15

May 1

5

Jun 1

5

Jul 15

Aug 1

5

Sep 1

5

Oct

15

Nov 1

5

Dec 1

5

333

We mobilised our balance sheet management initiatives in 2H 2015 through:

More selective asset growth

Growing our liquidity position

Proactive management of asset quality

Continued focus on productivity

Maintaining strong capital position

Changing Risk Posture

We also revised our guidance for FY2015 to reflect the strategy above:

444 4

As a result of our proactive balance sheet management, we were able to

meet most of our revised KPI targets for FY2015:

Our Performance in 2015

Key Performance IndicatorsFY2015

Guidance

FY2015

Achievement

Return on Equity 12.0% - 13.0% 12.2%

Group Loans Growth 8.0% - 9.0% 12.0%

• Malaysia 6.0% - 7.0% 5.3%

• Singapore 5.0% - 6.0% 6.0%

• Indonesia 10.0% - 13.0% 5.0%

Group Deposits Growth 10.0% - 11.0% 12.8%

555 5

Summary Financial Performance for FY2015

Net fund based income rose as Group loans grew 12.0% and net

interest margin remained stable at 2.31% …

… while net fee based income increased due to higher net earned

premiums, forex gains and Islamic operations fee income …

… that was kept under control through Strategic Cost Management

Programme (SCMP), resulting in a positive JAW position …

… but performance was affected by higher loan loss provisions

and impairment in securities leading to a…

… net profit of RM6.8 billion, which was 1.8% higher than the

previous year.

EPS declined due to expanded capital base from the DRP.

Net Fund Based Income

RM14.5b, +15.3%

Net Fee Based Income

RM6.7b, +13.2%

Net Income

RM21.2b, +14.6%

Overhead Expenses

RM10.3b, +12.9%

Impairment Losses

RM2.0b, +327.5%

Net Profit

RM6.8b, +1.8%

Earnings per Share

72.0 sen, -2.9%

… resulting in net income growth outpacing growth in

overheads …

PPOP

RM11.0b, +16.3%… and enabling Pre-Provision Operating Profit to grow by 16.3%...

666

Higher net fund based income of 15.3% due to:

Growing While Maintaining NIM

2.53 2.48

2.43

2.31 2.31

CY2011 FY2012 FY2013 FY2014 FY2015

Group NIM (%)

● Stable net interest margin (NIM)

of 2.31% through repricing of

loans

● Group loans growth of 12.0%

led by retail franchise growth

in home markets:

CFS Malaysia +8.2% YoY

CFS Singapore +36.6%* YoY

CFS Indonesia +9.9% YoY

* Loan growth post transfer of SGD2.2 billion from GB to CFS for

Business Banking segment. Normalised loan growth of 20.4%.

777

439.6

495.8

Dec 14 Dec 15

Group deposit growth of 12.8% ahead of loan growth of 12.0% led to

improved Group Loan to Deposit ratio (LDR) of 91.5%

Group Liquidity Coverage Ratio of 148% as at end-2015

Conservative Management of Liquidity

RM

billion

91.8% 92.2% 94.2% 95.3% 91.5%

35.3% 35.4% 34.9% 35.3% 33.7%

Dec 14 Mar 15 Jun 15 Sep 15 Dec 15

LDR CASA

Group Gross Deposits Group LDR

+12.8%

888

Cost Income Ratio (CIR) of 48.2% with positive JAW position as

income growth of 14.6% outpaced overheads growth of 12.9%

Managing discretionary spend as part of SCMP initiatives

Continuously maintained CIR below 50% over the last five years

Productivity Drive via SCMP

49.9

48.6

47.8

48.9

48.2

CY2011 FY2012 FY2013 FY2014 FY2015

Group CIR (%)

999

1.52%

1.86%

Dec 14 Dec 15

Group Gross Impaired Loans (GIL) ratio rose to 1.86% attributed to

specific accounts in Malaysia and international markets

Asset Quality

Group

1.85%1.76%

Dec 14 Dec 15

0.23%0.45%

Dec 14 Dec 15

Malaysia Singapore

3.24%

4.15%

Dec 14 Dec 15

Indonesia

GIL Ratio

101010

Asset Quality for Malaysia

0.6%0.5%

1.2%

Dec 14 Dec 15 Industry

0.5% 0.5%

1.0%

Dec 14 Dec 15 Industry

0.7%0.8%

1.3%

Dec 14 Dec 15 Industry

Consumer

2.4%

2.0%

2.4%

Dec 14 Dec 15 Industry

Business

10.3% 10.0%

2.0%

Dec 14 Dec 15 Industry

1.4% 1.5%

2.0%

Dec 14 Dec 15 Industry

Mortgage Auto Finance Credit Cards

SME Business Banking Corporate Banking

111111

410.5

459.8

Dec 14 Dec 15

352.9 373.3

Dec 14 Dec 15

Total capital ratio of

17.49% and CET1 capital

ratio of 12.53% (after

proposed dividend and

assuming 85% dividend

reinvestment rate)

Strong Capital While Growing Responsibly

11.38% 12.53%

13.17% 14.22%

15.87%17.49%

Dec 14 Dec 15

Total Capital Ratio

Tier 1 Capital Ratio

CET 1 Capital Ratio

Managed Risk Weighted Assets growth

of 5.8% vs loan growth of 12.0%

Group Gross Loans

RM

billion

Total Group RWA

+5.8%

RM

billion

+12.0%

121212

The Banker Magazine

• Bank of the Year

PWM The Banker Global Private Banking Awards 2015

• Country Awards: “Best Domestic Private Bank in

Malaysia”

Euromoney Private Banking Awards 2015

• Best Private Banking Services Overall in Malaysia

(6th time)

CFS Malaysia

Customer Experience in Financial Services (CXFS) Asia

Awards 2015

• Winner: Best Use of Social Media

Maybank Indonesia

Markplus WOW Service Excellence Award 2015

• The Best Champion for Jabodetabek WOW Service –

Excellence for Conventional Banking (Buku III)

Maybank Singapore

Customer Satisfaction Index of Singapore (CSISG)

• No.1 in the annual Customer Satisfaction Index of

Singapore (score: 71.9)

Annual Islamic Finance News (IFN) Awards

• Best Takaful Provider

KLIFF Islamic Finance Awards 2015

• The Most Outstanding Takaful Company

Private Baking Takaful

Customer ExperienceGroup Awards

Maybank’s Awards & Recognition

131313

Remain focused on selective asset growth in line with capital

position

Manage liquidity effectively through high-quality liquid assets

Improve productivity and manage discretionary spend

Downside risks include further global macroeconomic headwinds

Credit cost expected to remain elevated

Priorities for 2016

2016 KPIs

141414

5-Year Transformation Journey concluded in FY2015

Undisputed No. 1 Retail Financial Service provider in Malaysia by 20151

Market share leader in Unit Trust, Total Deposits, Retail CASA and Internet Banking (subscriber base)

Leading ASEAN wholesale bank, eventually expanding further into

the Middle East, China and India

Top 4 in regional league tables for Investment Banking & Advisory, Debt Capital Market and M&A deals

Undisputed Insurance & Takaful leader in Malaysia and

emerging regional player

Malaysia’s market leader for General Insurance & Takaful, with presence in Singapore and the Philippines

International FY2015 PBT under 30% due to lack of attractive M&A opportunities. However, our

complete ASEAN footprint positions us to capture trade, capital, investment and wealth flows in Asia

Truly regional organisation, with ˜40% of pre-tax profit derived

from international operations by 2015

Global leader in Islamic Finance

Leading Islamic bank in ASEAN and one of the top 5 Islamic banks globally

2

3

4

5

151515 15

The AEC is expected to drive further

intra- & inter-regional trade activities,

including capital raising and transactions

Significant upside for Insurance

penetration in ASEAN

Islamic Banking is a differentiation

opportunity in an industry entrenched

with conventional banking solutions

1

2

3

4

Young population with 60% millennials –

the Digital Native generation

5

ASEAN population, with 660 million

people, swelling middle class, growing

SMEs

Maybank2020 Strategy: The Next 5 Years in ASEAN

161616 16

Strategic Objectives of Maybank2020

The Top ASEAN Community Bank

The Leading ASEAN Wholesale Bank Linking Asia

The Leading ASEAN Insurer

The Global Leader In Islamic Finance

Digital Bank Of Choice

By leveraging on our regional presence, banking expertise and ASEAN growth opportunities

By leveraging on our ASEAN leadership capabilities to deliver client solutions across Asia

By enhancing synergies between Maybank’s regional banking footprint and

Etiqa’s expertise in takaful & bancassurance

By continuing to deliver innovative client-centric universal financial solutions,

building on our global leadership position

By putting our customers’ preferences first and transforming to deliver next-generation

customer experience on mobile and digital platforms

1

2

3

4

5

171717

Looking Ahead

We remain resolved in managing challenges

Road ahead won’t be easy, but we always look

to do the “right things right”

Commitment to making the next five-year

transformation journey an impactful one

191919 19

Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the

information that may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or on behalf of the

Company as to the accuracy or completeness of the information or opinions contained in this presentation.

The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of

it form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

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

connection therewith.

Humanising Financial Services

Dato’ Mohamed Rafique Merican

Group Chief Financial Officer

Contact: (6)03-2074 7878

Email: rafique@maybank.com

MALAYAN BANKING BERHAD

14th Floor, Menara Maybank

100, Jalan Tun Perak

50050 Kuala Lumpur, Malaysia

Tel : (6)03-2070 8833

www.maybank.com

Jeeva Arulampalam

Acting Head, Group Investor Relations

Contact: (6)03-2074 8346

Email: jeeva.a@maybank.com

Investor Relations Contact