Investor Presentation...Aug 16, 2012 · 0 Investor Presentation Financial Results First Half...

0

Investor Presentation

Financial ResultsFirst Half FY2012 ended 30 June 2012

16 August 2012

www.maybank.com

1


Executive Summary

Financial Performance

Business Sector Review

Country Review

Economic Update and Prospects

Financial Results: First Half FY2012 ended 30 June 2012

2

Key Highlights: Continued Profit Growth

Continued revenue and profit growth for 1H FY12

Revenue grew 18.0% YoY to RM8.2 billion due to 22.3% growth in fee-based income while fund based

income rose 15.2%

PATAMI grew 21.2% YoY to RM2.78 billion; 2Q FY12 PATAMI grew 24.5% YoY to RM1.44 billion

Strong growth in both domestic and international operations

PBT rose by RM616.3 million (+18.7%) YoY mainly due to growth in Global Wholesale Banking (+42.3%)

and International (+54.5%)

On annualised basis, Group’s gross loans grew 15.0%, driven by 15.8% loan growth in Malaysia

(Corporate: 24.4%; Consumer: 13.1%) and 12.3% loans growth in International markets (BII: 18.8%)

Islamic Banking PBT rose 50.9% on the back of 110% rise in fee based income and 14% annualised

financing growth

Strong Financial Position

Asset Quality continued to improve with Gross and Net Impaired Loans ratio declining to 2.00%

(June 2011: 3.34%) and 1.28% (June 2011: 2.25%) respectively as at June 2012

Liquidity improved with Group Loan to Deposit ratio declining to 86.9% from 90.1% in June 2011

Group shareholders’ funds of RM36.6 billion; total assets of RM492.3 billion

Capital Adequacy Ratio of 15.49 % (assuming a 85% DRP reinvestment rate)

Exceeded ROE target for FY2012

Annualised ROE of 16.1% exceeded the target of 15.6% while Loans and Debt Securities growth

was 13.8% against 15.2% target

Interim dividend payout ratio of 67.9%

Proposed interim dividend of 32 sen per share less 25% tax

Dividend consists of 4 sen cash portion and 28 sen electable portion for the Dividend Reinvestment Plan

3

FY2012

Target 1H FY12 *

Headline KPIs

Return on Equity 15.6% 16.1%

Loans and Debt Securities Growth 15.2% 13.8%

Other targets

Group Loans Growth 16.2% 15.0%

• Malaysia 13.6% 15.8%

• Singapore ** 11.4% 4.9%

• Indonesia** 20.9% 18.8%

Group Deposits Growth 12.3% 16.9%

Key Performance Indicators for 1H FY12

* Annualised

** Loans growth in local currencies

4


Executive Summary



Country Review



5

2Q FY12 PATAMI rose 6.7% QoQ to RM1.44 billion with an EPS of 18.64 sen

2Q FY12 1Q FY12 4Q FY11

Jun 2012 Mar 2012 Jun 2011

Net interest income 2,106.3 2,020.7 4.2% 1,826.7 15.3%

Net Fund based income (Islamic Banking) 441.2 375.6 17.5% 365.4 20.8%

Total net fund based income 2,547.5 2,396.3 6.3% 2,192.1 16.2%

Net income from insurance and takaful * 169.7 87.2 94.5% 345.4 -50.9%

Non-interest income 1,344.3 1,408.0 -4.5% 1,196.7 12.3%

Fee based income (Islamic Banking) 125.6 159.2 -21.1% 77.6 61.8%

Total fee-based income 1,639.6 1,654.5 -0.9% 1,619.7 1.2%

Net income 4,187.1 4,050.8 3.4% 3,811.8 9.8%

Overhead expenses (1,982.3) (1,994.8) -0.6% (1,962.1) 1.0%

Operating Profit before allowances for

losses on loans2,204.8 2,056.0 7.2% 1,849.7 19.2%

Allowance for losses on loans (199.4) (195.9) 1.8% (47.7) 317.9%

Impairment losses on securities, net (27.3) (0.5) 5697.7% (114.0) -76.1%

Operating Profit 1,978.1 1,859.6 6.4% 1,688.0 17.2%

Share of profits in associates 47.7 35.0 36.4% 40.5 17.8%

Profit before taxation and zakat 2,025.8 1,894.6 6.9% 1,728.5 17.2%

Taxation & Zakat (546.2) (528.9) 3.3% (475.3) 14.9%

Minority Interest (42.1) (18.8) 124.1% (98.9) -57.4%

Profit after Tax and Minority Interest

(PATAMI)1,437.5 1,346.9 6.7% 1,154.3 24.5%

EPS (sen) 18.64 17.63 5.7% 15.54 19.9%

* Net of insurance claims

Quarter

QoQ

Change

YoY

Change

RM million

6

1H FY12 PATAMI grew 21.2% YoY to RM 2.78 billion, supported by an 18.0% YoY

increase in net income

1H FY12 2H FY11

Jun 2012 Jun 2011

Net interest income 4,127.0 3,598.2 14.7%

Net Fund based income (Islamic Banking) 816.9 695.4 17.5%

Total net fund based income 4,943.9 4,293.6 15.2%

Net income from insurance and takaful * 256.9 429.5 -40.2%

Non-interest income 2,752.3 2,125.5 29.5%

Fee based income (Islamic Banking) 284.8 135.4 110.3%

Total fee-based income 3,294.0 2,690.4 22.3%

Net income 8,237.9 6,984.0 18.0%

Overhead expenses (3,977.1) (3,516.1) 13.1%

Operating Profit before allowances for

losses on loans4,260.8 3,467.9 22.9%

Allowance for losses on loans (395.3) (119.9) 229.7%

Impairment losses on securities, net (27.7) (109.7) -74.7%

Operating Profit 3,837.7 3,238.3 18.5%

Share of profits in associates 82.7 65.8 25.6%

Profit before taxation and zakat 3,920.4 3,304.1 18.7%

Taxation & Zakat (1,075.1) (864.6) 24.3%

Minority Interest (60.9) (142.6) -57.3%

Profit after Tax and Minority Interest

(PATAMI)2,784.4 2,296.9 21.2%

EPS (sen) 36.28 31.15 16.5%

* Net of insurance claims

RM million YoY

Change

Half Year

Note: Contribution of Kim Eng Holding for 1H FY12 is for 6 months whereas 2H FY11 is for 2 months (Maybank completed the

acquisition of KEH Group in May 2011)

7

Strong Balance Sheet: Total Assets grew 17.4% annualised, LDR improved to 86.9%

RM billion30 Jun

2012

31 Dec 2011

(restated)*

Annualised

Growth

1 Jul 2011

(restated)*

YoY

Growth

Cash and short-term funds 60.3 49.1 45.9% 38.8 55.5%

Deposits with financial institutions 8.6 6.5 66.9% 10.3 -16.3%

Securities purchased under resale agreements 1.8 1.4 54.5% - -

Securities portfolio 70.9 68.3 7.8% 61.2 15.9%

Loans, advances and financing 295.7 274.4 15.5% 254.0 16.4%

Statutory Deposits with Central Banks 11.7 10.6 21.7% 7.7 52.3%

Life, general takaful and family takaful fund assets 20.1 19.9 2.0% 19.2 4.7%

Other assets 23.2 22.7 3.9% 22.3 3.7%

Total Assets 492.3 452.8 17.4% 413.5 19.1%

Deposits from customers 340.3 313.7 16.9% 282.0 20.7%

Deposits and placements of banks and FI 43.0 36.8 34.1% 33.3 29.2%

Borrowings 10.6 7.2 95.2% 5.4 94.7%

Subordinated debts 13.9 14.2 -4.1% 10.8 28.5%

Capital Securities 6.1 6.1 1.1% 6.1 0.5%

Insurance & Takaful liabilities & policyholders' funds 20.1 19.9 2.0% 19.2 4.7%

Other liabilities 20.1 19.1 10.1% 23.0 -12.6%

Total Liabilities 454.1 417.0 17.8% 379.8 19.6%

Shareholders Funds 36.6 34.3 13.2% 32.3 13.3%

Non-controlling interest 1.6 1.6 7.8% 1.3 20.7%

Total Liabilities & Equity 492.3 452.8 17.4% 413.5 19.1%

Loan-to-Deposit Ratio 86.9% 87.5% 90.1%

* Adoption of MFRS1 with effect from 1 July 2011 resulting in changes on securities portfolio, other assets, other liabilities and

shareholders funds

8

Gross loans grew 15.0% annualised (16.2% YoY), led by a 15.8% growth in domestic

markets and 12.3% growth in international markets

RM billion30 Jun

2012

31 Mar

2012

QoQ

Growth

31 Dec

2011

1H FY12

Annualised

Growth

30 Jun

2011

YoY

Growth

Community Financial Services 127.9 123.2 3.8% 120.7 12.0% 112.5 13.7%

Consumer 101.0 97.7 3.5% 94.9 13.1% 87.9 15.0%

Total Mortgage 45.2 43.4 4.2% 42.1 14.9% 38.6 17.2%

Auto Finance 29.6 28.6 3.8% 27.7 14.3% 26.0 14.0%

Credit Cards 5.2 5.2 -0.1% 5.3 -5.2% 4.9 6.0%

Unit Trust 19.7 19.2 2.6% 18.5 13.4% 17.1 15.4%

Other Retail Loans 1.3 1.3 -0.9% 1.3 -3.6% 1.3 -0.5%

Business Banking + SME 26.9 25.5 5.2% 25.8 8.2% 24.7 8.9%

SME 4.6 4.4 4.4% 4.5 4.4% 4.9 -7.5%

Business Banking 22.3 21.2 5.4% 21.4 9.0% 19.8 13.0%

GWB (Corporate) 64.9 59.7 8.7% 57.8 24.4% 57.4 13.0%

Other Loans (0.0) (0.0) -39.9% 0.1 -250.5% 0.2 -117.8%

Total Domestic 192.8 182.8 5.4% 178.6 15.8% 170.1 13.3%

International 108.5 102.1 6.3% 102.2 12.3% 89.4 21.4%

Singapore (SGD billion) 25.3 24.5 3.4% 24.7 4.9% 22.1 14.6%

BII (Rupiah trillion) 73.5 69.8 5.3% 67.2 18.8% 58.1 26.5%

Others 20.4 19.1 6.7% 18.4 22.3% 14.7 38.7%

Investment Banking 2.7 2.1 25.6% 1.9 78.1% 2.0 33.8%

Gross Loans * 304.0 287.1 5.9% 282.8 15.0% 261.5 16.2%

* Including Islamic loans sold to Cagamas and excludes unwinding of interest

9

Malaysia Singapore BII Group

RM bilAnnualised

Growth

YoY

Growth

SGD

bil

Annualised

Growth

YoY

GrowthRp tril

Annualised

Growth

YoY

GrowthRM bil

Annualised

Growth

YoY

Growth

Savings Deposits 35.0 12.9% 11.7% 3.1 13.7% 13.4% 16.0 -18.9% 9.0% 48.9 8.2% 11.0%

Current Accounts 50.6 12.8% 7.6% 2.9 7.9% 17.1% 13.5 17.5% 11.4% 63.6 17.8% 9.3%

Fixed Deposits 111.3 15.9% 33.9% 21.4 12.2% 25.6% 47.3 33.8% 20.5% 193.6 13.6% 26.9%

Others 32.3 57.1% 26.6% 0.6 14.6% 52.1% - - - 33.7 55.2% 27.6%

Total Deposits 230.0 19.6% 22.5% 28.1 12.0% 23.6% 76.7 17.8% 16.3% 340.3 16.9% 20.7%

Malaysia Singapore BII Group

Low cost funds (CASA) ratio 37.2% 21.6% 38.4% 33.1%

Loan-to-Deposit Ratio 81.6% 89.4% 94.3% 86.9%

80.9%

91.3%

90.7%

88.1%

93.9%

95.4%

94.3%

Jun 09

Jun 10

Dec 10

Jun 11

Dec 11

Mar 12

Jun 12

Deposits grew 16.9% annualised (20.7% YoY), driven mainly by growth in Malaysia of

19.6% (22.5% YoY)

Loans-to-Deposit Ratio

87.4%

86.8%

88.4%

90.1%

87.5%87.2%

86.9%

Jun 09

Jun 10

Dec 10

Jun 11

Dec 11

Mar 12

Jun 12

89.2%

88.8%88.9% 87.7%

82.6%

83.9%

81.6%

Jun 09

Jun 10

Dec 10

Jun 11

Dec 11

Mar 12

Jun 12

86.3%

81.2%

87.5%

96.4% 92.5%

86.6%

89.4%

Jun 09

Jun 10

Dec 10

Jun 11

Dec 11

Mar 12

Jun 12

10

72.247.7

98.7

230.3

195.9 199.4

119.9

395.3

3Q FY11 Mar 11

4Q FY11 Jun 11

1Q FP11 Sep 11

2Q FP11 Dec 11

1Q FY12 Mar 12

2Q FY12 Jun 12

2H FY11 Jun 11

1H FY12 Jun 12

Asset Quality continues to improve with net charge off rate for 1H FY12 at 28bps

Impaired Loans RatioAllowance for losses on loans

+1.8 %

QoQ

+317.9%

YoY

+229.7%

YoY

2.83%2.99%

2.74%

2.39%2.25% 2.18%

1.86%

1.57%

1.28%

4.60%4.67%

4.20%

3.67%

3.34%

3.23%

2.84%

2.44%

2.00%

1 Jul 10Day 1

Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12

Net Impaired Loans Ratio

Gross Impaired Loans ratio

11

2,126

1,440

86 (68)

486

182

430

135

2,752

1,790

278 59

430

195 257

284

Total non-interest income

Commission, service charges

and fees

Investment & Trading Income

Unrealised gain/(losses) on

securities & derivatives

Foreign Exchange profit

Other Income Net incomefrom Insurance

Business

Fee income from Islamic

Operations

2H FY11 ended Jun 2011 1H FY12 ended Jun 2012

Group Fee-based Income increased 22.3% YoY to RM3.29 billion*. Excluding Kim Eng it

increased 17.3% YoY.

+24.3%

-40.2%+223.8% +186.7%+110.3%

+7.5%

RM

million

+29.5%

-11.5%

Note: Contribution of Kim Eng Holding for 1H FY12 is for 6 months whereas 2H FY11 is for 2 months (Maybank completed the acquisition of KEH Group in May 2011)

* Includes net income from insurance business & fee income from Islamic operations

12

863 1,034 1,025 1,072 1,121 1,173

1,897 2,294

115 161 132 141 130 132

277

262

135 132 97 143 108 124

267

232

441 635 634 698 635 554

1,075

1,189

3Q FY11 Mar 11

4Q FY11 Jun 11

1Q FP11 Sep 11

2Q FP11 Dec 11

1Q FY12 Mar 12

2Q FY12 Jun 12

2H FY11 Jun 11

1H FY12 Jun 12

Admin, general expenses, fees, brokerage & establishment costs

Marketing Expenses

IT Expenses

Personnel costs

Improved operating efficiency resulted in lower cost to income ratio of 47.8%R

M m

illio

n

1,554

-0.6% QoQ

+1.0% YoY

2,054 1,995 1,982

+13.1% YoY

1,962

3,516

3,977

1,888

# Contribution of Kim Eng Holdings for 1H FY12 is for 6 months whereas 2H FY11 is for 2 months

(Maybank completed the acquisition of KEH Group in May 2011)

# #

QoQ YoYQoQ (exc.

Kim Eng)

YoY (exc. Kim

Eng)YoY

YoY (exc.

Kim Eng)

Personnel costs 4.7% 13.4% 4.0% 9.5% 20.9% 15.0%

IT Expenses 0.9% -18.4% 1.6% -21.2% -5.4% -10.2%

Marketing Expenses 14.2% -6.2% 13.4% -6.5% -13.2% -14.5%

Admin, general expenses, fees,

brokerage & establishment costs -12.7% -12.7% -15.0% -9.9% 10.6% 7.6%

Total -0.6% 1.0% -1.5% 0.0% 13.1% 8.5%

1H FY12

Overhead Expenses

2Q FY12

13

13.86%

14.54% 14.66%

14.07%

14.74%14.86%

30 Jun 12 30 Jun 12 30 Jun 12

13.12%# 13.19%

14.69%13.82%

13.62% 13.38%

15.57%

14.46%

30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12

RWCR strengthened to 15.49% from 15.35% in 1Q FY12

Note:

* Core Equity Ratio computation is based on transitional arrangements announced by BCBS# Core Equity Ratio is capped at Core Capital Ratio & Risk Weighted Capital Ratio

8.77% 8.22% 9.21% 8.73%

11.68%10.68%

11.57% 10.97%

15.20%14.71%

16.29%15.35%

30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12

Adjusted for dividend payment and reinvestment made under

the Dividend Reinvestment Plan (DRP)

Core Equity Ratio* Core Capital Ratio & Risk Weighted Capital Ratio

8.63% 9.13% 9.22%

10.92% 11.42% 11.51%

14.99% 15.49% 15.57%

30 Jun 12 30 Jun 12 30 Jun 12

Full electable

portion paid

in cash

Full electable

portion

reinvested

Assuming 85%

reinvestment rate

Core Equity Ratio* Core Capital Ratio Risk Weighted Capital Ratio

14

26

11

28 32

18

8

44

32

36

FY08** FY09 FY10 FY11 FP11 FY12

Final

Interim

60.0% 61.0%

76.5% 74.9% 75.0%

67.9%

The Group will declare a gross interim dividend of 32 sen per share less 25% tax

* Reinvestment rate for the Dividend Reinvestment Plan

** adjusted for 1:4 Bonus Issue in February 2008 and 9:20 Rights Issue at RM2.74 in March 2009

Consistently rewarding shareholders with dividend in excess of policy of 40-60% Dividend Payout Ratio.

The Board declared gross interim dividend of 32 sen per share less 25% tax which will consist of 4 sen cash

portion and 28 sen electable portion for the Dividend Reinvestment Plan.

Gross Dividend (sen) and Payout Ratio (%)

Dividend Payout Ratio

88.6%*

86.1%*

91.1%*88.5%* NA

15

1H FY12 2Q FY12 1Q FY12 FP11 FY11

Net Interest Margin 2.37% 2.42% 2.38% 2.53% 2.56%

Return on Equity** 16.1% 16.4% 16.0% 16.2% 15.2%

Fee to Income Ratio 40.0% 39.2% 40.8% 37.6% 36.6%

Cost to Income # 47.8% 46.9% 48.7% 49.8% 49.6%

Loan-to-Deposit Ratio 86.9% 86.9% 87.2% 87.5% 90.1%

Asset Quality

Gross Impaired Loans Ratio 2.00% 2.00% 2.44% 2.84% 3.34%

Net Impaired Loans Ratio 1.28% 1.28% 1.57% 1.86% 2.25%

Loan Loss Coverage 104.2% 104.2% 94.5% 86.9% 82.3%

Charge off rate (bps) 28 28 28 25 23

Capital Adequacy (Group)

Core Capital Ratio 11.42%* 11.42%* 10.97%^ 11.57%^ 11.68%^

Risk Weighted Capital Ratio 15.49%* 15.49%* 15.35%^ 16.29%^ 15.2%^

Maybank Group: Key Ratios

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

* Assuming 85% reinvestment rate.

^ Adjusted for dividend payment and reinvestment made under the Dividend Reinvestment Plan (DRP)

** Annualised

Post-FRS 139

16


Executive Summary



Country Review



17

3,304

1,558

645 662

74

671 396

3,920

1,375

917 794

254

1,037

263

Total Community Financial Services

Corporate Banking Global Markets Investment Banking

International Banking

Insurance, Takaful &

Asset Management

2H FY11 ended 30 June 2011


6,984

3,240

685 756 338

2,038

630

8,238

3,252

1,029 894 721

2,569

492





Asset Management



+42.3%

-11.8%

+42.2% +54.5%

+18.7%

-33.6%

+48.6%

-21.9%+50.1% +113.6% +26.1%+18.3%

+0.4%

+18.0%

Revenue and PBT growth across most sectorsR

eve

nu

e (

RM

mil

lio

n)

Pro

fit

bef

ore

tax

(R

M m

illio

n)

Global Wholesale Banking (GWB)


Note: Revenue and PBT for Head Office & Others: –RM720m in 1H FY12 vs –RM703m in 2H FY11

+19.9% +243.0%

(Inc. Kim Eng)

(Inc. Kim Eng)

18

2,690

923

246 390 256 662 582

3,294

794 391

585 652 880

444





Asset Management

2H FY11 ended 30 June 20111H FY12 ended 30 June 2012

4,294

2,317

440 366 81

1,376

48

4,944

2,458

638 310 69

1,689

48





Asset Management



Revenue grew due to higher net fund based and fee-based income

Net Fund Based Income rose 15.2%

Fee-based Income grew by 22.3%

RM

mill

ion

RM

mill

ion

Note: In 2H FY11 , the credit card income was taken as gross of interchange fees while the 1HFY12, the position is nett after interchange fees

# Includes expenditures of Head Office & Others of RM452 million for 1H FY12 and RM369 million for 2H FY11

^ Includes net income from insurance business of RM257 million for 1H FY12 and RM430 million for 2H FY11

# Includes expenditures of Head Office & Others of RM268 million for 1H FY12 and RM334 million for 2H FY11

Note: a total of RM29 billion and RM 1.3 billion nett of deposits and loans respectively exited CFS to Corporate which resulted in net interest income for CFS to be lower by

RM76 million in 1H FY12

^

#

#

+14.7%

+0.2%+45.1% -14.8%+22.8%

-15.3%

+6.1%

+15.2%


+82.3%

-14.0%+59.1% +32.9%

+22.3%

-23.7%


+49.7% +154.3%

19

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

65.3%

21.3%

7.9%

5.5%

63.8%

21.3%

8.3%

6.6%

75.5%

14.4%

5.5%4.7%

72.5%

12.6%

7.1%

7.8%

68.0%

12.7%

15.5%

3.7%

64.4%14.4%

15.5%

5.6%

2H FY2011

RM8.24b

Increasing revenue, PBT and loan contribution from international operations

RM3.92b

Revenue Profit Before Tax1H FY2012

International:36%

International:32%

International:25%

International:28%

RM6.98b RM3.30b

Gross loans*

RM304.0b*

RM261.5b*

International:35%

International:36%

(Jan 11 – Jun 11)

(Jan 12 – Jun 12)

* Including Islamic loans sold to Cagamas and excludes unwinding of interest

20

6.4 6.0

5.1 4.6

5.8

Jun 11 Sep 11 Dec 11 Mar 12 Jun 12

33.6 36.4 37.3 38.6

5.0 5.7 6.1 6.6

Jun 11 Dec 11 Mar 12 Jun 12

Housing loans Shophouse loans

Continued growth despite intense competition Asset quality continued to improve

Mortgage market share increased in the latest quarter Mortgage Approvals* increased in 2Q FY12

+14.9% annualised

Community Financial Services: Mortgage grew 14.9% annualised with improving asset

quality

+17.2% YoY *

RM

billion

RM

bill

ion

42.1 45.2

* Industry grew 13.9% YoY as of June 2012

43.438.6

3.1%2.8%

2.2%1.9%

1.6%

Jun' 11 Sep' 11 Dec' 11 Mar' 12 Jun' 12

Gross Impaired loan ratio - Mortgage

13.0%

13.1%

13.2%

13.3%

Jun 11 Sep 11 Dec 11 Jun 12

* Industry refers to residential property and shophouses.

* Based on cumulative 3 months figures

21

25.5 27.2 28.0 29.1


Hire Purchase (RM billion)

Community Financial Services: Auto Finance* business improved in volume

and market share

Auto Finance* grew 14.1% annualised in Jun 12

+14.1% annualised

Asset quality remained stable with increasing market share

Non-national cars formed 65% of Auto finance* loans New cars still form 87% of total Auto Finance* loans

+14.2% YoY

RM

bill

ion

* Auto Finance data refers to hire purchase arrangements only

0.5%0.6%

0.5%0.6%

0.5%

18.8% 19.0%19.4%

19.9%20.2%

0.0%

0.5%

1.0%

1.5%

2.0%

17.0%

17.5%

18.0%

18.5%

19.0%

19.5%

20.0%

20.5%


Gross Impaired loan ratio

Hire Purchase Market Share

34% 35% 36% 35%

66% 65% 64% 65%


National Cars Non-national cars

14% 13% 13% 13%

86% 87% 87% 87%


Used cars New cars

22

Community Financial Services: Cards continued to gain market share

Cards receivables

-4.8% annualised

+6.21% YoY

RM

bill

ion

Card base (‘000)

+0.2% annualised

+0.97% YoY

• Market Share for Billings and Merchant sales is based on 12-

months running performance

• 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

Cards Market Share Cards performance outperforming industry

Jun 12 Jun 11

Cardbase 18.3% 17.6%

Billings 25.2% 23.2%

Receivables 15.1% 14.9%

Merchant Sales 31.6% 29.5%

YoY Maybank Industry*

Cardbase 1.0% -2.9%

Billings 19.5% 10.1%

Receivables 6.2% 5.1%

Merchant Sales 18.6% 10.5%

4.8

4.9

5.2 5.1 5.1

Jun'11 Sep'11 Dec'11 Mar'12 Jun'12

1,474 1,473

1,487

1,471

1,488

Jun'11 Sep'11 Dec'11 Mar'12 Jun'12

23

17.0% 17.4%

19.2%19.9%

23.2%

10%

12%

14%

16%

18%

20%

22%

24%


+8.2% ann.

Business Banking and SME: Expanding loans and deposits base

Deposits growth at 10.0% on annualised basis

Business Banking and SME: Gross Impaired Loans

Ratio continues to improve#

SME loans* market share improving

RM

bill

ion

RM

bill

ion

* Classification of SME based on Bank Negara definition

+10.0% ann.Loans grew 8.2% annualised in Jun 2012

13.0% 13.0%

11.7%

10.6%

9.0%


24.7 24.6 25.8 25.526.9


41.2

47.350.7 51.5 53.2


# Note: The NPL ratio for the Business Banking and SME loans as at June 12

is 5% compared to June 11 which was 8%.

24

2.7

28.0

25.4

2.7

27.5

25.9

2.5

27.0

32.5

Overdraft

Trade Finance*

Term Loan

Jun '12

Dec '11

Jun '11

Strong position in terms of Trade Finance Market Share

Corporate Banking Gross Impaired Loans Ratio improved to

1.46% in June 2012

Total GWB loans# increased by 10.5% YoY to

RM62.0 billion

+28.0%

YoY

-3.5%

YoY

-6.2%

YoY

RM billion

# Total GWB loans excludes USD (COF) loans amounting to RM2.9billion

* Trade Finance includes: Trade, OFCL, USD (COF) and Factoring

25.7%

24.7%

26.9%

25.8%26.4%

23%

24%

25%

26%

27%

28%

Jun '11 Sep '11 Dec '11 Mar '12 Apr '12

3.63%3.91% 3.89%

2.72%

1.46%

Jun '11 Sep '11 Dec '11 Mar '12 Jun '12

GWB: Loans Growth driven by 28.0% YoY increase in Term Loans

25

537743

538518

2H FY11Jun 2011

1H FY12Jun 2012

Non-interest incomeNet interest income

Global Markets growth supported by a 38.3% YoY increase in Non-Interest Income

PBT and Revenue grew 10% and 17% YoY respectively Credit Rating for Private Debt Securities in Malaysia

Group Securities Portfolio: 39.4% foreign securities

AAA35%

AA27%

A5%

BBB & below

2%

Comm. Papers

1% Not Rated30%

+10.3%

1,075

1,261

+17.3%

Government Securities -Domestic,

27.9%

PDS -Domestic,

25.3%

Others (NIDs, Bas etc), 7.3%

Group Securities Portfolio grew 8.5% annualised

and 16.2% YoY

31.6 34.8 37.1

26.4 28.4 28.7 3.1

4.8 5.2

Jun 11 Dec 11 Jun 12

Others

PDS

Govt. Securities

RM70.9

billion

+16.2% YoY

+8.5% Annualised

61.068.1

70.9

PBT Revenue

9581057

2H FY11Jun 2011

1H FY12Jun 2012

Government

Securities – Foreign,

24.3%

- 96.3% ASEAN

- 3.7% Non-ASEAN

PDS - Foreign, 15.1%

-36.5% ASEAN

- 63.5% Non-ASEAN

26

1H FY2012 Total Income (RM mil)

Maybank Kim Eng* reported a total income of RM758.4 million

with Malaysia contributing 50% of the total income

1H FY2012 Fee-based Income for Malaysia

*Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings

758.4

1H FY2012 Equity Brokerage League Table by Country

RM

million

Total Income for Malaysia rose 122% YoY and 82%

compared to 6m FP11

Country

Trading

Volume

(RM mil)

Market Share Rank

Thailand 75,221 12.2% 1

Malaysia 29,116 6.9% 3

Indonesia 21,561 5.6% 3

Philippines 10,807 7.9% 4

Singapore# 56,059 7.5% 5

Hong Kong 11,899 0.2% Tier 2# Rank is estimated based on market share

Primary Subscriber's Fees

22%

Arrangers' Fees21%

Advisory Fees17%

Brokerage16%

Placement Fees11%

Underwriting Fees 7%

Other Fee Income5%

Agency/ Guarantee Fees1%

Malaysia,382.8, 50%

Singapore,134.3, 18%

Thailand,127.9, 17%

Philippines,62.3, 8%

Indonesia,19.1, 2%

Hong Kong, 12.8, 2%

Others,19.2, 3%

145.7190.3

359.413.7

15.3

19.9

13.14.2

3.3

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

2H FY11 6m FP11 1H FY12

Other income

Fund based

Fee based

27

1H FY2012 Maybank IB’s (Malaysia) Industry Position &

Market Share

Source: 1 Bloomberg 2 Bursa Malaysia

Maybank Kim Eng has made big strides with several notable

deals, putting it in a leading position in Malaysia

Recent Notable Deals

Industry

Rank by

Value

Total

Value

(RM bil)

Deals

/

Issues

Market

Share

M&A1 1 23.7 16 35.5%

Equity & Rights

Offerings1 1 3.2 5 26.3%

Debt Markets –

Malaysia

Domestic Bonds1

1 10.4 87 29.9%

Debt Markets –

Malaysia Ringgit

Islamic Bonds1

1 7.2 80 31.0%

Equity

Brokerage2 3 29.1 - 6.9%

Public Offering of Shelf

Registration Bond Issuance I 2012

Joint Bookrunner, Joint Mandated

Lead Arranger

Up to IDR 5,000,000,000,000

PT ASTRA SEDAYA FINANCE

February 2012

Initial Public Offering

Participating Underwriter

USD 501,560,000

GT CAPITAL HOLDINGS, INC

April 2012


Issuer Manager, Underwriter,

Placement Agent

SGD 40,400,000

CIVMEC LIMITED

April 2012

MYR2,500,000,000

Perpetual Junior Sukuk

Programme

Sole Principal Adviser, Sole Lead

Arranger, Sole Lead Manager

June 2012

MALAYSIA AIRLINE SYSTEM BERHAD

USD244,800,000


Principal Adviser, Sole

Bookrunner, Joint Underwriter

June 2012

GAS MALAYSIA BERHAD

USD3,143,300,000


Joint Principal Adviser, Joint

Managing Underwriter, Joint

Global Coordinator, Sole

Bookrunner, Joint Underwriter

May 2012

FELDA GLOBAL VENTURES BERHAD

MYR11,654,700,000

Joint Principal Adviser

Merger of SapuraCrest Petroleum

Berhad and Kencana Petroleum

Berhad

May 2012

SAPURAKENCANA PETROLEUM

MYR8,500,000,000

Joint Adviser

Acquisition by 1MDB Energy Sdn

Bhd, of 100% equity interest of

Tanjong Power Holdings Sdn Bhd

in Tanjong Energy Holdings Sdn

Bhd

May 2012

TANJONG POWER HOLDINGS SDN BHD

TANJONG POWER HOLDINGS SDN BHD

MYR1,770,000,000

Adviser

Acquisition of 65% equity interest

in Esso Malaysia Berhad and 100%

equity interest in Exxonmobil

Borneo Sdn Bhd and Exxonmobil

Malaysia Sdn Bhd from ExxonMobil

International Holdings Inc

Mar 2012

PETRON OIL & GAS INTERNATIONAL

SDN BHD

28

15.8

7.3

10.7

2.9 3.6

7.2

16.6

8.1

11.9

3.1 4.7

8.0

16.3

9.7

12.4

3.4 5.8

8.3

AITAB Mortgage Financing

Term Financing

Others (CFS) Term Financing

Others (GWB)


-3%

+41%

+8%

+18%+47%

Group Islamic Banking business grew PBT by 50.9% YoY to RM715.5 million

Maybank Islamic: Total Gross Financing grew14%

annualised to RM55.9 billion

Consumer: +11% Business: +22%

Group Islamic Banking Income and PBT*

** Includes financing sold to Cagamas

RM

bill

ion

**

+7%

RM million 2Q FY12 4Q FY11YoY

Growth

Fund based income 816.9 695.4 17.5%

Fee based income 284.8 135.4 110.3%

Total income 1,101.7 830.8 32.6%

Allowance for losses on

financing16.1 0.9 1616.0%

Profit before tax and

zakat715.5 474.3 50.9%

Maybank Islamic: Improving key ratios


Financing to Deposit Ratio

(Adjusted)84.2% 83.7% 87.8%

Islamic Financing to

Total Domestic Loans28.3% 28.5% 27.4%

Gross Impaired Financing

Ratio1.06% 1.62% 2.01%

Net Impaired Financing

Ratio0.79% 1.03% 1.25%

Market Share

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

Jun 2012 Jun 2011

AITAB 30.4% 33.7%

Mortgage 20.2% 19.3%

Term financing 23.2% 22.8%

**

1H FY12 2H FY11

29

8.2%

9.4%

14.0%

0.0% 5.0% 10.0% 15.0%

HL-MSIG Ins. & Tak.

Allianz Insurance

Etiqa Ins. & Tak.

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

Total Assets (RM billion)

Industry Source: Loss ratio for Malaysia’s Conventional business only with rolling 12 Months (Apr11-Mar12).

+5.5% YoY

Life/Family (New Business) Market Share

General Market Share

No. 1 in

Life/Family

(New Business)

No. 1 in

General

Source: LIAM/ISM

Statistics (Apr11-Mar12)

Source: ISM Statistics

(Apr11-Mar12).

+3.6% Anualised

Loss Ratio

23.11

23.94

24.38

June 2011 Dec 2011 June 2012

14.2%

14.7%17.3%

0.0% 5.0% 10.0% 15.0% 20.0%

Prudential Ins. & Tak.

Great Eastern Ins. & Tak.

Etiqa Ins. & Tak.

30


Executive Summary



Country Review



31

4.6 5.3 6.3

2.8 3.24.3

2.7 3.51.9

2.5 2.8 2.8

5.0 5.3 5.2

3.4 3.3 3.2

1.0 1.2 1.4

'Jun 11 Dec-11 Jun-12

Other (Consumer)

Car Loan

Housing Loan

Others (Corporate)

Non-Bank financial InstGeneral Commerce

Building & Const

Maybank Singapore loans grew at 14.4% YoY

Diversified Loan Portfolio

Asset Quality improved

Singapore: 1H PBT rose 7.2% YoY to SGD190m driven by higher fund and fee based

income and lower net provision

Revenue and PBT rose 4% and 7% YoY respectively

SGD million

1H

FY12

Jun 12

2H

FY11

Dec 11

1H

FY11

Jun 11

YoY

Growth

Net fund based income 231.6 240.3 228.3 1.4%

Non interest income 112.4 144.2 103.6 8.5%

Total income 344.0 384.6 331.9 3.6%

Provision (3.5) 8.6 10.2 -134.6%

Profit before tax 190.3 218.1 177.6 7.2%

SG

D b

illi

on

Consumer39%

24.622.0

Corporate 61%

25.1

4.1%

annualised

8.6%

25.4%

28.6%

14.4%

11.4%

14.8%

24.2% 18.4%

Jun-10 Jun-11 Dec-11 Jun-12

Maybank Singapore Growth Industry Growth

0.63%0.58%

0.65%0.58%

0.46%0.47% 0.53%

0.62%0.53%

0.09% 0.07%

0.25%0.23%

0.14%0.25%

0.23%0.33% 0.32%

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Gross NPL ratio Net NPL ratio

6M FP11

Dec 11

2H FY11

Jun 11

1H FY12

Jun 12

32

BII : PATAMI grew strongly by 61% YoY with improving NIM and continuing

efficiencies in operating expenses

Consolidated Income Statement*

1H FY11 1H FY12 Growth

IDR billion Jun 11 Jun 12 YoY

Interest Income 3,685 4,556 24%

Interest Expenses (1,740) (1,979) 14%

Net Interest Income 1,945 2,577 32%

Non Interest Income 1,207 1,111 -8%

Gross Operating Income 3,153 3,688 17%

Operating Expenses (excl. Provision) (2,161) (2,423) 12%

Operating Income before Provision 991 1,265 28%

Provisions (556) (555) 0%

Operating Income After Provision 436 710 63%

Non Operating Income (expense) 81 113 39%

Profit Before Minority Interest & Tax 517 824 59%

Minority Interest (0) 17 >100%

Tax (150) (249) 66%

PATAMI 367 592 61%

* Presentation is as per Bank Indonesia classification

33

24.4 22.8 25.0 26.6 27.1

11.0 14.3 16.4 17.1 19.5 19.1 20.1

21.0 21.6 22.2

0.4 0.4 0.4 0.4

0.4 4.6 4.5

4.4 4.2

4.3

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12

Corporate SME Consumer Syariah Subsidiaries

Loan-to-Deposit Ratio (Bank only)

Net Interest Margin Loans composition (IDR trillion)

Modified LDR (consolidated) as of Jun’12 : 82.40%

Modified LDR (bank only) as of Jun’12 : 80.58%

BII: Strong loans growth of 24% YoY accompanied by improved asset quality

5.43%

5.28%5.22%

5.51%

5.89%


83.0%

85.8%

88.9%

90.4%89.4%


2.88% 2.75%

1.25% 1.11% 0.97%

4.15% 4.03%

2.27% 2.08%2.24%


Net Impaired Loans ratio

Gross Impaired Loans ratio

59.562.0

67.269.8

73.5

Asset Quality

34

BII: Branches and touch points expansion on track

Branches and ATM Capital Adequacy : consolidated (credit, operational

& market risk)

274 295 327 337 344 346 351 368 375

844 893952

1,009 1,0171,088

1,152 1,190 1,218

Jun-10 Dec-10 Jun-11 Dec-11 Jun-12Branches ATM + CDM

13.06%

12.33%12.46%

12.71%12.56%


PATAMI We continue to invest in the expansion of network and IT

infrastructure

Mobile banking is firmly in place and the Internet banking

platforms for individual, supply chain and corporates is

continuously being improved

The new trade finance system recently went live

BII is part of the Maybank IT Transformation Project

(ITTP) which will allow continuous improvement of the

Bank’s critical applications

Through this vigorous network expansion and IT

investment, Bank has shown positive growth in net profit

822725

634

485 469

-41

461

669592

2004 2005 2006 2007 2008 2009 2010 2011 20122012

6 months

35

7.17

6.12

5.72 5.69 5.62

Q211 Q311 Q4 11 Q112 Q2122Q FY121Q FY124Q FY113Q FY112Q FY11

778 787

4 -40

YTD Jun'11 YTD Jun'12

Total Revenue Profit Before Tax

Revenue and PBT (IDR billion)

WOM Finance : Overall consolidated asset quality is improving. However total industry is expected to

feel the impact of new regulations.

Financing Amount (IDR billion)

Unit Financing (000 unit)

+1.2%

-90%

Consolidated stand alone

ConsolidatedConsolidated

238

29

268

217

52

270

New Used Total

YTD Jun 11 YTD Jun 12

3,072

238

3,309 2,814

435

3,249

New Used Total

YTD Jun 11 YTD Jun 12

Asset Quality : First Installment Default Ratio (%)

36

An Binh Bank: PBT rose 15% YoY

Revenue and PBT

Gross Loans and Deposits

PBT increased by VND44.7 bil or 15% to VND352.3 bil for the

1H FY2012 mainly contributed by higher net interest income

(+VND40.4 bil) and non-interest income (+VND15.2 bil). It is

further supported by lower provisioning by VND87.7 bil.

However, overhead expenses were VND98.6 bil or 25%

higher, mainly attributed to increase in other overheads

(mainly branch expansion) by VND78.6 bil and staff costs by

VND20 bil.

Gross Loans declined by VND1,063.5 bil or 6%, as a result of

lower lending to customers. Slower loans growth is largely

due to the compliance with State Bank of Vietnam on the

capping of annual credit growth based on the bank’s

performance.

Meanwhile, Customer Deposits is higher by VND6,599.6 bil or

25% in tandem with the increase in corporate and retail

deposits.

NPL ratio improved from 4.51% to 3.83% on the back of

lower NPL of VND693 bil (June 2011: VND864 bil) despite a

drop in loans portfolio.

816.2871.8

307.6 352.3

2QFY11 2QFY12

VN

D b

illion

Revenue

PBT

+15%

+7%

1H FY2011 1H FY2012

19,148.4 18,084.9

25,940.5

32,540.1

As at 30 June 11 As at 30 June 12

VN

D b

illion

Loans

Customer Deposits

+25%

-6%

Jun 11 Jun 12

Key Ratios June 2012 June 2011

Return on assets 1.20% 1.27%

Return on equity 11.30% 9.68%

Cost-to-income ratio 55.80% 47.53%

Loans to deposit ratio 55.58% 73.82%

NPL Ratio 3.83% 4.51%

Net Interest Margin 4.96% 5.71%

37

MCB Bank: PBT rose 7.3% YoY

Revenue and PBT

Gross Loans and Deposits

PBT increased by PKR1,195.8 mil or 7.3% against

corresponding period, mainly contributed by

increase in non-interest income (“NOII”) by

PKR1,220.5 mil and lower provisioning by

PKR2,038.8 mil. Higher NOII is mainly due to the

increase from fee, commission and brokerage

income.

However, the increase in PBT is partly offset by

the drop in net interest income by PKR1,307.8

mil and higher overheads by PKR672 mil.

Gross loans declined by 6.4% given the

challenging environment. However, Customer

Deposits grew by 7.4% in tandem with the

increase in savings deposit and current accounts.

NPL ratio slightly increased from 9.02% to

10.00%, due to the decline in loan base and

slight increase in total NPL.

26,454.0 26,366.8

16,283.9 17,479.7

1H FY11 1H FY12

PKR m

illion

Revenue

PBT

-0.3%

+7.3%

281,796.1 263,746.7

486,949.5522,989.2

As at 30 June 11 As at 30 June 12

PKR m

illion

Gross Loans

Customer Deposits

-6.4%

+7.4%

Key Ratios June 2012 June 2011

Return on assets 3.44% 3.53%

Return on equity 27.57% 28.65%

Cost-to-income ratio 32.69% 30.04%

Loans to deposit ratio 49.82% 56.80%

NPL Ratio 10.00% 9.02%

Net Interest Margin 7.32% 8.96%Jun 11 Jun 12

38


Executive Summary



Country Review



39

(25)

(20)

(15)

(10)

(5)

0

5

10

15

20

25

0

2

4

6

8

10

12

14

Jan

-07

Ap

r-07

Jul-

07

Oct-

07

Jan

-08

Ap

r-08

Jul-

08

Oct-

08

Jan

-09

Ap

r-09

Jul-

09

Oct-

09

Jan

-10

Ap

r-10

Jul-

10

Oct-

10

Jan

-11

Ap

r-11

Jul-

11

Oct-

11

Jan

-12

Ap

r-12

Jul-

12

Transport (RHS)

Utilities, Housing & Other Fuels

Food & Non-Alcoholic Beverages

(9)

(6)

(3)

0

3

6

9

12

90

100

110

120

130

140

150

160

170

180

190

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

1Q

12

2Q

12

RMb (LHS) % YoY (RHS) % QoQ (RHS)

2.90

2.95

3.00

3.05

3.10

3.15

3.20

3.25

Jan

-11

Feb

-11

Mar

-11

Ap

r-1

1

May

-11

Jun

-11

Jul-

11

Au

g-1

1

Sep

-11

Oct

-11

No

v-1

1

De

c-1

1

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun

-12

Jul-

12

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Mar-

07

Jun

-07

Sep

-07

Dec-0

7

Mar-

08

Jun

-08

Sep

-08

Dec-0

8

Mar-

09

Jun

-09

Sep

-09

Dec-0

9

Mar-

10

Jun

-10

Sep

-10

Dec-1

0

Mar-

11

Jun

-11

Sep

-11

Dec-1

1

Mar-

12

Jun

-12

SRR OPR

Malaysia: Sustained Economic Growth for 2012

Volatile MYR/USD since mid-2011

CPI and components (% YoY)

Inflation expected to moderate to 2% in 2012 (2011: 3.2%)

25bp hikes in OPR in

Mar, May, July ‘10

and May ‘11

OPR expected to remain unchanged at 3% until end of 2012

July ‘12 CPI:

+1.4% YoY

Around 5% growth in 2012, thanks to resilient 5.1% expansion in 1H

2012 (2011: 5.1%) amid robust domestic demand

Quarterly GDP and annual growth rate

2Q12 GDP:

+5.4% YoY

Ringgit Malaysia per USD

RM3.13 per USD

as at 15th Aug

2012

OPR and SRR

OPR

SRR

40

0%

5%

10%

15%

20%

25%

800

900

1,000

1,100

1,200

1,300

1,400

Jan 0

7

Jul 07

Jan 0

8

Jul 08

Jan 0

9

Jul 09

Jan 1

0

Jul 10

Jan 1

1

Jul 11

Jan 1

2

Jul 12

Total Deposits Total Deposits YoY Growth

Malaysia: Banking Sector to Remain Healthy

Total Loans grew 12.6% YoY in June 12 (Maybank Domestic:13.3%)

RM

bill

ion

Total Deposits grew 12.6% YoY (Maybank Domestic: 22.5%)

RM

bill

ion

Capital Adequacy remains strong at 14.7% in June 12

(Maybank Domestic: 15.4%)

RM

bill

ion

Impaired Loans RM23.8b, Net Impaired Loans ratio: 1.53%

0%

5%

10%

15%

20%

500

600

700

800

900

1,000

1,100

1,200

Jan 0

7

Jul 07

Jan 0

8

Jul 08

Jan 0

9

Jul 09

Jan 1

0

Jul 10

Jan 1

1

Jul 11

Jan 1

2

Jul 12

Total Loans Total Loans YoY GrowthHousehold YoY Growth Business YoY Growth

14.7%

12.9%

7%

9%

11%

13%

15%

17%

Jan 0

7

Jul 07

Jan 0

8

Jul 08

Jan 0

9

Jul 09

Jan 1

0

Jul 10

Jan 1

1

Jul 11

Jan 1

2

Jul 12

Risk Weighted Capital Ratio

Core Capital Ratio

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

20

21

22

23

24

25

26

27

28

29

30

Mar

11

Apr

11

May 1

1

Jun 1

1

Jul 11

Aug 1

1

Sep 1

1

Oct

11

Nov 1

1

Dec 1

1

Jan 1

2

Feb 1

2

Mar

12

Apr

12

May 1

2

Jun 1

2

Impaired Loans Net Impaired Loans Ratio

41

Singapore: External Headwinds to Challenge Growth in H2 2012

Singapore’s official economic growth forecast for 2012 revised to 1.5%-

2.5% from 1%-3% previously following a weaker-than-expected GDP

growth of 1.7% in H1 2012.

In particular, the festering sovereign debt crisis in Europe, coupled with

political uncertainties in the US will continue to weigh on the growth

prospects of the trade-dependent economy in the near term.

Inflation rate in 2012 is expected to come in at 4.2%, underpinned by

continued elevated costs of accommodation and private car ownership.

However, core inflation might come in at the bottom end of the

projected 2.5% - 3.0% range should crude oil prices continue to ease in

H2 2012.

Unemployment rate is expected to rise from 2.0% in 2011 to 2.1% –

2.3% in 2012 as companies hire more cautiously.

DBU Loan growth to moderate to 10% - 15% in 2012 (from +30% in 2011)

due to a slowdown in trade financing. transportation and property

loans.3-month SIBOR to range between 0.35%-0.45% in 2012

Loan Growth expected to moderate to 10%-15% in 2012

(5)

0

5

10

15

20

25

50

55

60

65

70

75

80

2Q 09

3Q 09

4Q 09

1Q 10

2Q 10

3Q 10

4Q 10

1Q 11

2Q 11

3Q 11

4Q 11

1Q 12

2Q 12 (E)

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

% YoY Growth

0.30

0.40

0.50

0.60

0.70

Jun-0

9

Aug-0

9

Oct-

09

Dec-0

9

Feb-1

0

Apr-

10

Jun-1

0

Aug-1

0

Oct-

10

Dec-1

0

Feb-1

1

Apr-

11

Jun-1

1

Aug-1

1

Oct-

11

Dec-1

1

Feb-1

2

Apr-

12

Jun-1

2

3-month SIBOR

-10%

0%

10%

20%

30%

40%

50%

Total Loans Business Loans Consumer Loans

Real GDP growth for 2012 expected to be 1.5% – 2.5%

(2011: 4.9% )

42

Indonesia: Domestic Demand Supporting Growth

■ GDP growth was sustained at above 6% in H1 2012 (6.3% YoY), on

the back of consumer spending (5% YoY), public consumption (6.5%

YoY) and investment (11.2% YoY).

■ IDR remains under pressure due to volatile capital outflows and

slowdown in exports, prompting Bank Indonesia to intervene in the

market to stabilize the currency. We expect IDR/USD exchange

rate to end 2012 at 9,600.

■ Amid stable growth momentum, moderate inflation rate and

pressures on IDR so far this year, Bank Indonesia maintain its key

policy rate at 5.75%.

■ Loans growth is expected to grow 20% - 24% by the end of 2012

with the investment segment driving growth.

■ NPL is expected to reach 2%-3% for 2012.

25.3%

20.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12

Bank's loan growth: Increase 25.3% y-y in June 2012

Loan

6.37%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Q1 2003

Q1 2004

Q1 2005

Q1 2006

Q1 2007

Q1 2008

Q1 2009

Q1 2010

Q1 2011

Q1 2012

Real GDP growth: Improving growth(y-y)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12

Bank Indonesia maintain key policy rate at 5.75%

Inflation y-y

BI policy rate

Core Inflation y-y

(y-y %)

43

Other key priorities for 2H FY2012

1. Basel 3

Maybank is fully ready for the transitional arrangements that come into effect on 1 January 2013

Group Capital Plan is in place to prepare to meet Basel 3 requirements in line with the transitional arrangements

2. Dividends

Maybank DRP programme to continue as a strategic capital management tool after 2013

Equity raising would be optional if other buffers introduced or the Group selects to increased CET1 earlier than stipulated dates

The Group’s aspiration will be to achieve a payout ratio in line with the policy rate or higher

3. Cost optimisation Group will remain vigilant on its cost structure

Investments will be made into resources that will develop business capabilities

44

Prospects

In 2012, global GDP growth is forecast at 3% (2011 est.3.8%) with slower growth for Eurozone, US and China. The

economies of the three home markets of Malaysia, Singapore and Indonesia, where Maybank Group operates in,

are expected to have GDP growth of 5.0%, 3.0% and 6.2% respectively (collectively contributing more than 90%

to the Group's income and profit).

Malaysia: Domestic demand supported by sustained consumer spending with government expenditure and

investment driven by projects under the Government and Economic Transformation Program (GTP / ETP).

Singapore: Maybank Singapore’s loans growth expected to decline to around 11% as the economy

moderates due to slower global economic growth and measures to curb property speculation.

Indonesia: Strong domestic demand, coupled with the relatively under-penetrated banking sector is

expected to support loans growth for BII of around 20%.

Strategy of responsible growth, equal focus on managing asset quality and liquidity through sound risk

management practices, particularly given the current global environment.

Regionalisation initiatives: building a truly regional organisation and governance structure across all functions by

building physical infrastructure, such as IT, and in delivering value in areas such as investment banking, global

wholesale banking, credit cards, global markets and payments.

Focus on raising customer service quality, embedding the right risk culture, and driving greater effectiveness

and efficiency to improve the cost structure.

After introducing Basel III Capital Rules in December 2011 essentially in accordance with globally agreed levels

and implementation timeline, BNM issued a concept paper for industry consultation in May 2012, detailing out a

more prudent approach in its revised definition of regulatory capital computation. Maybank has provided its

feedback to BNM. BNM is expected to issue the final rules by the fourth quarter of 2012. Maybank is well

prepared to comply with the BNM transition requirements for 2013.

Notwithstanding the global challenges, the Group expects a satisfactory financial performance for FY2012 in

view of expected growth in key ASEAN markets that the Group operates in.

45

Mohamed Rafique Merican

Group Chief Financial Officer

Contact: (6)03-2074 7878

Email: [email protected]

MALAYAN BANKING BERHAD

14th Floor, Menara Maybank

100, Jalan Tun Perak

50050 Kuala Lumpur, Malaysia

Tel : (6)03-2070 8833

www.maybank.com

Narita Naziree

Head, Group Strategy Management

Contact: (6)03-2074 8101


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.

Raja Indra Putra

Head, Investor Relations

Contact: (6)03-2074 8582


Investor Relations Contact

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