FY 2015 RESULTSPRESENTATION TO

ANALYSTS/FUND MANAGERS

7 MARCH 2016

FINAL SLIDES

Key Highlights

Financial Performance

Strategic Focus

Updates on Affin Hwang Capital

2

Key Highlights

Financial Performance

Strategic Focus

Updates on Affin Hwang Capital

3

Key Highlights

Income Statement ( RM’mil ) 2015 2014 Change ( % )

Profit Before Tax and Zakat 519.3 806.9 (35.6)

Net Profit 382.2 598.5 (36.1)

Earnings per share ( sen ) 19.01 34.52 (44.9)

Balance Sheet ( RM’ bil ) Dec 2015 Dec 2014 Change ( % )

Total Assets 67.4 66.7 1.1

Gross Loans, advances & financing 43.9 41.1 6.8

Deposits from customers 50.5 50.6 (0.2)

Key Financial Indicators Dec 2015 (%) Dec 2014 (%) Change (%)

ROA – after tax 0.6 0.9 (0.3)

ROE – after tax 4.6 8.3 (3.7)

Cost-to-income ratio 60.2 54.8 5.4

Gross impaired loans ratio 1.9 1.8 0.1

Impaired Loan Loss Reserve 64.0 75.6 (11.6)

Loan to deposits ratio 86.8 81.1 5.7 4

Dividend 2015 2014 Change (%)

Total dividend per share ( sen ) 7.99 15.0 (46.7)

Total dividend payout ( RM’mil ) 155.2 291.4 (46.7)

Dividend payout ratio *67.2% 58.4% 67.1

Key Highlights

5

Note * : Based on total dividends paid and proposed for the financial year ended 31 December 2015

CET 1 / Tier 1 / CCR Dec 2015 Dec 2014 Industry ave. (Dec 2015)

AFFIN Bank Berhad 11.93% 12.32% 13.08%

AFFIN Islamic Bank Berhad 13.20% 12.46% 11.54%

AFFIN Hwang Investment Bank Berhad

32.07% 30.72% 32.69%

Total Capital Ratio Dec 2015 Dec 2014 Industry ave. (Dec 2015)

AFFIN Bank Berhad 14.33% 13.56% 15.26%

AFFIN Islamic Bank Berhad 14.41% 13.67% 12.20%

AFFIN Hwang Investment Bank Berhad

32.07% 30.72% 33.06%

Key Highlights – Capital Adequacy

6

Key Highlights

Financial Performance

Strategic Focus

Updates on Affin Hwang Capital

7

PBT/PAT over the past 5 years

8

CAGRPBT -3.7%PAT -4.4%

709

834864

807

519508

629 650599

382

0

100

200

300

400

500

600

700

800

900

1000

2011 2012 2013 2014 2015

RM

Mil

lio

n

PBT PAT

SEGMENTAL PROFITS BY SUBSIDIARIES

9

COMMENTARY

AFFIN Bank GroupHigher impairment allowance and decrease in other operating income due to volatility in the market condition.

AFFIN Hwang Investment Bank Group

2015 PBT is the first full-year result post-merger between AFFIN Hwang Investment Bank and HwangDBS Investment Bank

* PBT is before adjustments totaling RM24.5 million (FY 2014: RM18.5 million) at AFFIN Group level mainly comprised of fair valueadjustment on held-to-maturity securities and amortisation of identifiable intangible assets upon the completion of purchase priceallocation in relation to the acquisition of HwangDBS Investment Bank Berhad in 2014.

AFFIN BankGroup

AFFIN Hwang IBGroup *

AFFINMoneybrokers

461.2

84.2 2.3

720.1

107.4

2.5

RM

Mil

lio

n

PROFIT BEFORE TAX AND ZAKAT

2015

2014

RESULTS OF JOINT VENTURE COMPANYAXA AFFIN LIFE INSURANCE BERHAD

10

(35.8)

8.9

2015 2014

RM Million

PBT

COMMENTARY

AXA AFFIN Life Insurance Berhad

Business indicators continued to be encouraging in 2015.

• Gross Premiums grew 10%.

• Double digit growth in both first year and renewal year premiums.

• All distribution channels grew, contributed to overall 15% new business growth andoutperformed the industry.

• New Business Value grew 21% with higher proportion of margin protection and healthproducts.

PBT impacted by measures taken to strengthen policyholders’ fund to support the futurebenefits of policyholders and lower gains on disposal of investment securities.

RESULTS OF ASSOCIATEAXA AFFIN GENERAL INSURANCE BERHAD

11

COMMENTARY

AXA AFFIN GENERAL INSURANCE BERHAD

Achieved GWP of RM1.33 billion in 2015, a growth of 17.7%.

Currently ranked 5th and is the fastest growing insurer in the market.

Main drivers in 2015:-

- Group Health (growth of 29%)

- Motor (growth of 21%)

- Motorcycle (growth of 33%)

PBT is lower in 2015 due to lower underwriting results and forex losses,

offset by higher investment income.

111.2 120.4

2015 2014

RM Million

PBT

Income composition

156.4 159.6

72.7 54.0

94.558.7

12

2,535

460

61 94

2,461

445

90 96

-

500

1,000

1,500

2,000

2,500

3,000

Interest Income Fees and brokerageIncome

Income from financialinstruments

Other income

RM

Mil

lio

n

2015 2014

+3.0%

+3.5%

- 31.7%-1.6%

Margin Compression

13

2.48%

2.25%2.17%

2.10%2.02%

1.93%

0.80%

1.60%

2.40%

3.20%

2010 2011 2012 2013 2014 2015

Net Interest Margin

Cost-to-income ratio2015

RM’ mil2014

RM’ milChange

(%)

Personnel 595.7 540.8 10.2

Admin & General 101.5 116.9 (13.2)

Promotion & Mktg 133.0 110.9 19.9

Establishment 255.5 229.0 11.6

Total * 1,085.7 997.6 8.83

14

2015

46.9% 47.7% 46.0% 47.0%

54.8%

60.2%

2010 2011 2012 2013 2014 2015

Personnel55%

Admin & General

9%

Promotion & Mktg12%

Establishment24%

* The increase in overhead expenses was mainly attributable to the full year’s

operation of Affin Hwang Investment Bank Berhad in 2015 vs. 9 months in

2014

Steady loans, advances & financing growth

CAGR 12.3%

15

31.134.7

37.541.1

43.9

2011 2012 2013 2014 2015

14.4%

11.7%

7.9%

9.6%

6.9%

13.6%

10.4%

10.6%

8.7%

7.9%

2011 2012 2013 2014 2015

AFFIN Industry

Loans, advances & financing by business segments Composition as at Dec 31, 2015

Steady loans, advances & financing growth

16

15.2 16.5 17.9 19.0 20.1

15.9 18.2

19.6 22.1

23.8

2011 2012 2013 2014 2015

RM billion

Consumer Corporate

Corporate54.2%

Consumer45.8%

Loans, advances & financing – consumer segments

Composition as at Dec 31, 2015

Hire purchase loans (RM billion)

Mortgage loans (RM billion)

CAGR 10.8%

CAGR 11.8%

17

8.99.6

10.5 11.012.0

2011 2012 2013 2014 2015

4.5 5.2 5.5 5.8

6.2

2011 2012 2013 2014 2015

Hire Purchase59.7%

Mortgage 30.8%

Others9.5%

Loans, advances & financing – Corporate Loans

(RM billion)

CAGR 14.5%

18

15.9

18.2 19.6

22.1 23.8

2011 2012 2013 2014 2015

Corporate

Net Impaired Loan ratio (%)

Improving asset quality

19

1.32

1.13

0.92 0.84

0.95

FY2011 FY2012 FY2013 FY2014 FY2015

As at 31 December 2015, the Group’s net impaired loan ratio is favourable ascompared to the industry of 1.32%

Monitoring asset quality

Gross Impaired Loan Ratio-AFFIN vs. Industry (%)

20

2.84

2.28

1.98 1.82 1.90

2.70

2.00 1.85

1.66 1.60

2011 2012 2013 2014 2015

%

AFFIN Industry

2011 2012 2013 2014 2015

883 790 741 748

834

RM Million

Gross NPL/Impaired Loans

Composition as at Dec 31, 2015

CASA 19.2 % Others 17.8%

FD 63.0%

Total deposits

CAGR 10.4 %

21

50.6

7.7 9.1 10.2 10.1 9.7

22.3 25.2

27.2 28.6 31.8

6.6

7.0 8.1

9.3 9.0

2011 2012 2013 2014 2015

CASA FD Others

47.442.9

39.4

50.5

Current Account (RM billion)

CASA Deposits (RM billion)

Savings Account (RM billion )

CAGR 9.8%

CAGR 10.2%

CAGR 8.6%

Deposits at AFFIN Bank’s level

22

7.7

9.1

10.2 10.1 9.7

2011 2012 2013 2014 20151.5

1.7

2.0 2.0 2.0

2011 2012 2013 2014 2015

6.2 7.4

8.2 8.1 7.7

2011 2012 2013 2014 2015

Loans to deposits ratio

23

2010 2011 2012 2013 2014 2015

AFFIN 81.7 77.3 79.6 79.1 82.6 86.8

Industry 81.4 80.9 82.1 84.6 86.2 86.5

72.0

74.0

76.0

78.0

80.0

82.0

84.0

86.0

88.0

%

Gross Loan/Deposit from customers ratioAFFIN vs Industry

Key Highlights

Financial Performance

Strategic Focus

Updates on Affin Hwang Capital

24

AFFIN’s Growth Strategy

Achieved through overall business remodelling with emphasise on key business segments

Attained through a needs-based

development of a complete product

suite

Critical customer interactions must be

orchestrated to impart memorable

positive experiences

Strong core products that are simple to understand, hassle-free, offer utility and value as customer progresses through life stages

Precision and accuracy, scalable and reliable

Solution oriented,

segment relevance,

value long term

relationship, satisfy

current needs and

prepare for future

aspirations

Adopt a performance based culture in human capital

through streamlining manpower

Develop talent pool, hire best in class &

promote key

competencies

Robust organic growth

Service excellence

InnovationResource

optimisation

AFFIN’s strategy; to optimise shareholder returns, to develop a rigorous financial services landscape and provide service excellence.

25

Transformation Program Objectives – Affin Bank/Affin Islamic

1. Creating a discernible impact in the marketplace- change in scale and performance along key measures

2. Establishing a cohesive franchise across distribution channels, products and customer segments

3. Aligning assets and resources to deliver on planned goals

4. Fostering a culture and governance which will enable ownership and accountability for results

5. Increasing staff engagement to create a sense of ownership of the destiny and future of Affin Bank Group

6. Elevating leadership to drive changes required to achieve the transformation objectives

26

Transformation Program Holistic Change

Performance

Competency Culture

TechnologyBusiness Process

Organization

To create the necessary impact and outcomes which are sustainable over the long term, the Transformation Program aims for major and deep-seated changes which cover an end-to-end view of the business.

• Comprehensive

• Coherent

• Cohesive

27

Building a Strong Brand Franchise & Scale

Brand positioning

Network expansion

Market positioning

Market segmentation

Product differentiation

Human capital

Technology & innovation

Research & advisory

28

Key Highlights

Financial Performance

Strategic Focus

Updates on Affin Hwang Capital

29

We aim to remain a Top 3 equity brokerage house in Malaysia

Bursa Malaysia

Broker Awards 2014

Best Institutional Equities

(Investment Bank)

2015

Bursa Malaysia

Broker Awards 2014

Best Equities

(Investment Bank)

2015

We retained our #1 position for

total value and volume traded in the

domestic market in 2015

3.04%

4.10%

4.25%

5.38%

6.07%

9.06%

9.23%

9.52%

10.98%

12.10%

UBS

TA

Hong Leong

AM

CS

Kenanga

Maybank

RHB

CIMB

AHC

1.26%

2.65%

4.05%

4.78%

7.07%

7.71%

8.97%

12.22%

13.66%

16.83%

CS

Public

AM

Hong…

TA

Maybank

CIMB

Kenanga

RHB

AHC

(Volume in % Market

Share)

(Volume in % Market

Share)(Value in % Market Share) (Value in % Market Share)

Volume Traded Value Traded

2014 2015 2014 2015

We maintained our position as the top equity brokerage house in our domestic market despite strong competition and a

challenging market environment

Source: Bursa Malaysia as of December 2015

30

We embark on partnerships to expand our regional foothold

Through Our Partnership:

Through Our Partnership:

Daiwa Securities Group (“Daiwa”) is one

of the leading, comprehensive financial

service firms in Japan and across Asia.

Daiwa operates core businesses such as

Retail, Global Markets, Global Investment

Banking, Asset Management, and

Investment.

Thanachart Securities Plc. ("Thanachart"),

a wholly-owned securities subsidiary of

Thanachart Bank in Thailand, operates

securities businesses including securities

brokerage, securities analysis service,

proprietary trading, securities borrowing

and lending and investment advisory

service.

Equity Trading Capabilities

on the Stock Exchange of Thailand (“SET”) for

our institutional investors

Sole Distributor of Thanachart’s Research

of SET-listed companies to our institutional

investors (on a co-branded basis).

Corporate Access

by Thanachart & Affin Hwang Capital

to Malaysian & Thai investors bases

Equity Trading Capabilities

on all exchanges of which Daiwa has a presence

for our institutional investors

Sole Distributor of Daiwa’s Global Research

to our institutional investors (on a co-branded

basis).

Corporate Access

by Daiwa & Affin Hwang Capital

to Malaysian & global investors bases

We have taken steps to broaden our equity trading coverage through alliances with our key strategic partners Daiwa

Securities (Japan, Hong Kong, Singapore) and Thanachart Securities (Thailand)

31

We continue to strive for consistent AUM growth and performance

Affin Hwang AM and AIIMAN have a strong track record of AUM growth

AsianInvestor

Asset Management Awards

Fund House of the Year

(Malaysia)

2015

IFN

Islamic Investor Awards

Best Islamic Asset Management

Company in Asia

2015

Euromoney

Private Banking Survey

Best Asset Manager

In Malaysia

2016

Affin Hwang AM & AIIMAN

are recognised as one of the

top fund houses in Malaysia for

2015 and 2016

CAGR:

43.4%

Our Asset Management business has continued to perform well: AUM growth is resilient despite market conditions, and

continues to win accolades for performance and excellence

32

Building a strategic relationship with Daiwa

Transfer of Market Best Practices

► Daiwa’s presence in over 20 countries across

Asia Pacific, Europe and North America can

potentially enable AHC to benefit from

Daiwa’s global business and operational

expertise

► Daiwa strongly anchors its performance on

robust risk management by establishing rules

to govern all activities within the Daiwa group

► AHC can potentially benefit from Daiwa’s

global perspective in crafting business

strategies in line with the evolving Malaysian

financial market and regional growth plans.

Development of Global Perspectives

Enable Us to

Expand

within ASEAN

Expand Our

Capabilities &

Network

Solidify

Existing

Working

Relationships

Develop Global

Perspective

Transfer Market

Leading

Best Practices

Potential

Value Add to

Shareholder

A submission has been made to BNM on 29 February 2016 on the proposed acquisition of a minority stake in Affin Hwang

Investment Bank Berhad by Daiwa Securities Group Inc. or one of its wholly-owned subsidiaries

33

34

THANK YOU