Investor Presentation · 2020. 8. 27. · QoQ overhead expenses decreased as staff mobility...

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Investor Presentation

Financial ResultsSecond Quarter and First Half FY2020 ended 30 June 2020

27 August 2020

1

Table of Contents

Executive Summary 2

Results Overview 8

Appendix:

1. Financial Performance 20

2. Community Financial Services 31

3. Global Banking 34

4. Maybank Singapore 37

5. Maybank Indonesia 40

6. Other Segments 43

Financial Results: 2Q FY2020 and 1H FY2020 ended 30 June 2020

2

2Q FY2020 Overview on Macro-Environment and Maybank’s Performance

COVID-19 Pandemic Containment Efforts Impact to Maybank Group’s Second Quarter FY2020 Results

Income:

NIM compresses on more rate cuts & net impact of RM314m for

Day-One modification loss for fixed rate financing assumptions

Offset by Group CASA growth of 10.3% QoQ driven by home

markets

Loan volumes fall QoQ as business activities come to a standstill

for most of 2Q’2020. Only CFS Malaysia grows on mortgage loan

stock drawdowns and strong SME financing disbursements

Core fees declined QoQ on reduced business activities while

investment and trading income was muted

Net fee income from insurance improved QoQ on lower bond

yields QoQ (versus yield pick-up seen towards end-Mar’20)

Provisioning:

New NPL formation remains relatively benign

Increased management overlay for specific business and

corporate borrowers in home markets displaying weakness

Increased forward looking assumption provisioning for retail

portfolio overseas on weaker macroeconomic variables

WHO declares Covid-19 a pandemic on 11 March.

Countries close borders and implement

restricted movement orders thereafter

Cost:

QoQ overhead expenses decreased as staff mobility reduced,

lesser marketing expenses on cancelled physical events and lower

business activity-related fees

1H’FY2020 CIR at 45.6% with positive JAWs of 5%

Business activities dropped in 2Q’2020:

Malaysia: Movement Control Order (MCO)

from 18 March to 9 June, followed by

Recovery MCO

Singapore: Circuit breaker measures from 7

April to 1 June, before resuming activity

gradually using 3-phased approach

Central banks globally announced:

Drastic interest rate cuts to promote

economic stimulus and lower cost of debt

Financing moratoriums, liquidity & capital

easing measures for banks, with some

restricting banks’ dividend distributions in

2020 to preserve capital strength

Governments rolled out:

Sizeable economic stimulus packages to

support the cash flow of affected

businesses and provide financial assistance

to individuals

3

Continued Commitment in Supporting Customers Through the COVID-19 Pandemic

Maybank Group’s Loans Under Moratorium, Relief or R&R Programmes for Three Home Markets

^Against outstanding total gross loans by each country’s segment @ 31 July 2020

Maybank Singapore has provided SGD860 million government

relief loans (i.e., Enterprise Singapore loans) to 1,400 RSME

and Business Banking customers¹ as at 18 August

% of Outstanding Loan Balance^Malaysia

as at 14 Aug

Mortgage 83.9%

Auto Finance 90.1%

Unit Trust 92.5%

Other Retail Loans 54.9%

SME 85.6%

Business Banking 77.5%

Corporate 25.7%

% of Outstanding Loan Balance^Singapore

as at 14 Aug

Mortgage 10.4%

SME 28.2%


Corporate 7.6%

Total 3.5%

% of Outstanding Loan Balance^Indonesia

as at 14 Aug

Mortgage 12.6%

Auto Finance 20.8%*

Credit Cards & Personal Loans 9.4%

RSME 20.3%

SME+ 18.8%


Corporate 21.4%

Total 17.7%

* Bank-only, not including

subsidiaries i.e., WOM

and Maybank Finance.

All non-retail

debtors have been

engaged to assess

their business

conditions and to

proactively

restructure, where

needed.

• Since our 8th May disclosures, loans under automatic moratorium

reduced as customers opted out and continued with repayments

• As of 14 Aug, total BNM Special Relief Facility loans disbursed to

SMEs was RM1.4 billion

Continued Repayment Assistance by Maybank, post moratorium

• With automatic moratorium expiring on 30 Sep 2020, we have

proactively engaged customers – to remind them on the expiry of

moratorium and to offer Repayment Assistance Package options to

ease the financial burden of those who may be affected by the

COVID-19 pandemic.

• Customers can apply for Repayment Assistance up to 30 Sep 2020 –

via various channels such as Maybank2u (excluding Hire Purchase),

phone calls, emails or by visiting our branches.

• Assistance will be tailored to best suit the need of each customer:

a) Repayment Assistance with 3 months deferment in

instalment for those who have lost employment, suffered

pay cut, on unpaid leave or suffered loss in business income

due to the pandemic.

b) Rescheduling of tenures or restructuring of the facilities in

line with customer’s repayment capability.

¹ Based on number of accounts

4

Leveraging Digital Platforms to Support Transactions During COVID-19 Pandemic

New / Enhanced Digital Initiatives

• Online application of Repayment Assistance Package (Malaysia)

• Opening of business accounts via Maybank2u (Malaysia). 57% of all SME deposit

accounts opened in Jun’20 were through STP

• Conducted first fully online Treats Fair so customers can redeem their TreatsPoints

• First in Singapore to launch the dynamic PayNow QR payment terminals for

merchants in Apr’20 (Singapore)

• Video KYC for NTB account opening through M2U in April, enabling fully digital

customer on-boarding (Indonesia)

25.70

42.50

48.70

Jun 2019 Mar 2020 Jun 2020

4.325.89 5.10

9.56 11.07 12.63

113.10

132.40139.00

Jun 2019 Mar 2020 Jun 2020

Maybank2u

Moneta

ry T

ransa

cti

on V

alu

e

(RM

bln

/ID

R t

ln/S

GD

bln

)

Mobile App QRPAY

QR

Pay

Tra

nsa

cti

on V

olu

me

Increasing Digital Transactions Through Multiple E-Platforms/Applications

1.61 mln

1.88 mln

1.59 mln

Jun 2019 Mar 2020 Jun 2020

3.91 5.927.83 24.89k

393.40k

Moneta

ry T

ransa

cti

on V

alu

e

(RM

bln

/ID

R t

ln)QoQ: 5.0%

YoY: 22.9 %

QoQ: 14.1%

YoY: 32.1%

QoQ: -13.4%

YoY: 17.9%

QoQ: 14.6%

YoY: 89.5%

QoQ: 32.3%

YoY: >100%

QoQ: -15.5%

YoY: -1.2%%

QoQ:>100%

Transaction Volume Growth (QoQ):

MY: 35.7% IND: 28.1%

Transaction Volume Growth (QoQ):

MY: 28.5% IND: 17.8% SG: 0.8%

5

Maybank Performance OutlookGroup guidance for remainder of FY2020

• NIM compression guidance widened to 20 bps for FY2020, incorporating latest rate cuts in 2H’2020 and

net mod loss impact of RM314 million.

• To maintain good quality deposits in local currencies, with strong CASA growth in home markets.

• Continued cost management discipline as done over the years, with added emphasis in reducing non-

staff discretionary expenses (i.e.: events, travel, etc). CIR target of below 48% for FY2020.

• Maintaining group net credit charge off (NCC) ratio guidance for FY2020 of between 75 bps to 100 bps.

NCC to remain elevated into FY2021. Ongoing bottom-up borrower assessments to determine AQ impact.

• Group ROE guidance of circa 7.5%, arising from COVID-19 impact to the Group’s income and provisioning.

• Key priority is to conserve capital and liquidity strength in this uncertain environment.

• No interim dividend proposed. Final dividend consideration will be dependent on full year FY2020 profit

and subject to regulatory approvals.

• Growth in Malaysia supported by retail and non-retail disbursements. Expected slowdown in key overseas

markets, but offset by slower repayments given moratoriums.

• We have been engaging borrowers since 1H FY2020 on a continuous basis to ascertain business viability

and monitor borrowers’ evolving cash flow considerations. Arising from these engagements, we have

been offering targeted repayment, rescheduling and refinancing assistance to borrowers tailored to their

specific needs and will continue to do so.

• As part of our risk and asset quality management, we will maintain ongoing engagement with non-retail

and corporate borrowers. Details on post moratorium extension requests by retail borrowers will only be

known after 30 Sep 2020.

Key Guidance

Loan Growth

& Moratorium

Extensions

6

Key Indicators Outlook

Indonesia

• GDP: -6.0% (2020F) vs 0.7% (2019)

• System loan: -2.0 to 1.0% (2020F) vs 4.2% (2019)

• 3M SIBOR: 0.40% (2020F) vs 1.77% (2019)

• USD/SGD average: 1.38 (2020F) vs 1.36 (2019)

• Inflation: -0.5% (2020F) vs 0.6% (2019)

• GDP: -0.5% (2020F) vs 5.0% (2019)

• System loan: 1.5% (2020F) vs 6.1% (2019)

• Reference Rate: 4.00% (2020F) vs 5.00% (2019)

• USD/IDR average: 14,568 (2020F) vs 14,313 (2019)

• Inflation: 2.2% (2020F) vs 3.0% (2019)

Singapore

Market Outlook2020 industry outlook for our home markets

• GDP: -5.4% (2020F) vs 4.3% (2019)

• System loan: 2.0% (2020F) vs 3.9% (2019)

• OPR: 1.75% (2020F) vs 3.00% (2019)

• USD/MYR average: 4.15 (2020F) vs 4.14 (2019)

• Inflation: -0.5% (2020F) vs 0.7% (2019)Malaysia

• Slower growth arising from the COVID-19 pandemic

will come from domestic demand activities,

especially private consumption, through the

realisation of government incentive programmes.

• OJK policy giving leniency for loan restructuring

might help prevent NPL spikes. However, likely to

have a negative impact on NIM.

• Recovery in 2H will be sluggish and choppy,

dampened by the slow reopening of businesses,

border controls, strict social distancing rules and

foreign worker shortages.

• Aggressive policy measures that focus largely on

ensuring cash flow for affected corporates and

households might assist in managing NPL risk better

than past cycles.

• The economy is expected to shrink, reflecting the

impact of the COVID-19 pandemic, domestic

Movement Control Order (MCO) and drop in crude

oil prices.

• Slower loan growth and NIM compression expected

amid OPR cuts, with the MCO likely to dampen

consumer sentiment and demand. Credit costs are

also expected to rise.

7

Table of Contents

Executive Summary 2

Results Overview 8

Appendix:








8

1H FY2020

Net Profit of

RM2.99 billion

Maybank Group 1H FY2020 OverviewStronger net fee based income performance drove Group’s 5.3% YoY revenue growth

• Net operating income grew by 5.3% YoY to RM12.37 billion as net fee based

income increased by 27.8%, mitigated by lower net fund based income of 3.4%

• Pre-provisioning operating profit improved by 9.9% YoY as cost discipline yielded

flat overheads YoY

• Net profit was down 20.2% YoY on proactive provisioning given weaker economic

outlook across markets

1

• Robust liquidity risk indicators with Group LCR at 140.5%, Group LDR at 90.6%,

Group LTF at 83.0% and Group LTFE at 73.1% as at 30 June 2020

• Total capital and fully loaded CET1 capital ratios at 19.04% and 15.43%

respectively as at end-Jun’20

Robust Liquidity

and Capital Positions

3

Balance Sheet

Management

2• Continued loans expansion in Malaysia of 4.4% YoY, but offset by a contraction in

our overseas markets of 8.4%, resulting in Group loans decline of 1.0% YoY

• Group CASA ratio of 40.2% as at end-Jun’20 on focused expansion of cheaper

deposits across home markets. Group deposits increased by 2.2% YoY on CASA

expansion despite decline in FDs and Other Deposits

9

P&L Summary: 1H FY2020PPOP growth of 9.9% YoY driven by strong net fee based income and flat overhead expenses

Note:

* From consolidated 1H FY2019 Group numbers, Insurance and Takaful accounts for 11.3% of net fund based income and 5.9% of net fee based income

¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses

² Net Profit is equivalent to profit attributable to equity holders of the Bank

More

details

onRM million

1H

FY2020

1H

FY2019YoY

2Q

FY2020

1Q

FY2020QoQ

2Q

FY2019YoY

s.22 Net fund based income * 8,184.7 8,473.7 (3.4)% 3,840.3 4,344.5 (11.6)% 4,166.8 (7.8)%

s.12/

13/22 Net fee based income * 4,188.0 3,276.1 27.8% 1,808.3 2,379.7 (24.0)% 1,722.9 5.0%

s.20/

21 Net operating income 12,372.7 11,749.8 5.3% 5,648.5 6,724.2 (16.0)% 5,889.7 (4.1)%

s.14 Overhead expenses (5,648.3) (5,629.3) 0.3% (2,706.3) (2,942.0) (8.0)% (2,821.7) (4.1)%

s.21 Pre-provisioning operating profit (PPOP) 1 6,724.4 6,120.5 9.9% 2,942.2 3,782.2 (22.2)% 3,068.0 (4.1)%

Net impairment losses (2,765.0) (1,089.6) >100% (1,740.7) (1,024.3) 69.9% (452.3) >100%

Operating profit 3,959.4 5,030.9 (21.3)% 1,201.5 2,757.9 (56.4)% 2,615.7 (54.1)%

s.20 Profit before taxation and zakat (PBT) 4,053.5 5,102.0 (20.6)% 1,255.7 2,797.8 (55.1)% 2,651.6 (52.6)%

Net Profit 2 2,991.4 3,750.1 (20.2)% 941.7 2,049.7 (54.1)% 1,940.9 (51.5)%

EPS - Basic (sen) 26.6 33.8 (21.4)% 8.4 18.2 (54.0)% 17.5 (52.0)%

10

(5.2)%

22.9 21.8

19.9 17.0

Jun 19 Jun 20

Community Financial Services Global Banking

+5.6%

+0.7%

(14.5)%

(4.8)%98.4 80.9

40.538.4

Jun 19 Jun 20

(17.8)%

195.8 230.6

291.9 270.0

73.2 72.7

Jun 19 Jun 20

14.1 16.6

31.5 32.2

Jun 19 Jun 20

CASA FD Others

131.5 157.5

146.5 125.2

73.2 72.7

Jun 19 Jun 20

41.4 42.3

84.1 63.7

Jun 19 Jun 20

355.4

(0.6)%(7.5)%

222.2 234.6

80.5 81.0

Jun 19 Jun 20

+17.8%

(0.6)%

119.5525.6 520.2

Jun 19 Jun 20

Net Fund Based Income: 1H FY2020 YoY Trends (1/2)Continued CASA growth Group-wide with reduction in costlier funds; while Malaysia loan growth in line with industry

302.9

42.9139.2

RM

billion

SG

D b

illion

IDR

tri

llio

n

Gross Loans (YoY)

+4.4% (9.1)% (14.2)% (1.0)%

RM

billion

Group Malaysia Singapore Indonesia

38.9

316.1

Note:

• Industry loans growth for Malaysia is 4.1%, Singapore is 2.1% and Indonesia is 1.0%

• CASA ratio for Group and Malaysia includes investment accounts

• Refer to pages 24-26 for detailed information on loans and deposits growth by country and products.

+17.8%

RM

billion

RM

billion

SG

D b

illion

IDR

tri

llio

n

Group Deposits (YoY)

30.8% 34.0%37.5% 44.3%34.9% 40.2% 33.0% 39.9%CASA

Ratio:

(14.5)%

+19.8% +2.1%(24.4)%

560.9 573.3351.2

45.6 48.8125.6

105.9

+1.2% +7.0% (15.6)% +2.2%

+2.1%

11

2.27

2.36

2.33

2.27

2.09

FY2016 FY2017 FY2018 FY2019 1H FY2020

2.17 Without

mod loss

With mod

loss

Net Interest Margin (%)

5 Year Trend

Net Fund Based Income: 1H FY2020 (2/2)NIM compresses 18 bps on drastic rate cuts in 1H’2020 and net impact from Day-One modification loss

2.19

2.32 2.29 2.23

1.95

2Q '19 3Q '19 4Q '19 1Q '20 2Q '20

QoQ Trend

Rate cuts in 1H’2020:

100 bps OPR cut

3-mth SIBOR reduces 120+ bps

75 bps cut in Indonesia’s Reference Rate

12

3,276 2,561

277 438

4,188 3,538

297 353

Total Other Operating Incomefrom Banking Operations

Fee Income fromIslamic Operations

Net Fee Incomefrom Insurance

1H FY2019

1H FY2020

RM

million

Net Fee Based Income: 1H FY2020 (YoY)Growth driven by realised securities disposal gains and MTM derivatives revaluation gains

+38.2% YoY +7.1% YoY (19.4)% YoY +27.8% YoY

Notes using Maybank’s 2Q FY2020 Financial Statements:

¹ Group’s ‘Other operating income’ [Note A25] less ‘Other operating income’ from Insurance [Note A40(a)]

² Summation of ‘Other Operating Income’ from Insurance and ‘Net earned insurance premiums’ under Note A40(a) with ‘Net insurance benefits and claims incurred, net fee and

commission expenses, change in expense liabilities and taxation of life and takaful fund’ under Note A26

1 2

RM million1H

FY2019

1H

FY2020YoY

Commission, service charges and fees 1,579 1,513 (4.1)%

Investment & trading income 645 1,248 93.7%

Unrealised gain/ (losses) on financial

assets and investments1,041 28 (97.3)%

Derivatives and financial liabilities (218) 651 (>100)%

Foreign exchange profit 432 146 (66.3)%

Other income 179 174 (3.1)%

Total Group’s Other Operating Income 3,658 3,761 2.8%

Of which: Other Operating Income from Insurance 1,097 222 (79.7)%

13

1,723 1,385

134 205

2,380 2,128

187 64

1,808 1,411

109 289

Total Other Operating Incomefrom Banking Operations

Fee Income fromIslamic Operations

Net Fee Incomefrom Insurance

2Q FY2019

1Q FY2020

2Q FY2020

+1.9% YoY +5.0% YoY

(24.0)% QoQ (33.7)% QoQ +>100% QoQ

RM

million

Net Fee Based Income: 2Q FY2020 (QoQ)Weaker QoQ fee based income on lower core fees and investment income as well as MTM losses on derivatives

RM million2Q

FY2020

1Q

FY2020QoQ

2Q

FY2019YoY

Commission, service charges and fees 693 820 (15.5)% 805 (13.9)%

Investment & trading income 479 769 (37.7)% 438 9.4%

Unrealised gain/ (losses) on financial

assets and investments1,380 (1,352) (>100)% 476 >100%

Derivatives and financial liabilities (412) 1,063 (>100)% (62) (>100)%

Foreign exchange profit 197 (52) (>100)% 221 (10.8)%

Other income 90 84 6.2% 101 (11.5)%

Total Group’s Other Operating Income 2,427 1,333 82.1% 1,980 22.6%

Of which: Other Operating Income from Insurance 1,017 (795) (>100)% 595 70.9%

Notes using Maybank’s 2Q FY2020 Financial Statements:

¹ Group’s ‘Other operating income’ [Note A25] less ‘Other operating income’ from Insurance [Note A40(a)]

² Summation of ‘Other Operating Income’ from Insurance and ‘Net earned insurance premiums’ under Note A40(a) with ‘Net insurance benefits and claims incurred, net fee and

commission expenses, change in expense liabilities and taxation of life and takaful fund’ under Note A26

1 2

+41.0% YoY (41.7)% QoQ (18.3)% YoY

14

Overheads: 1H FY2020 (YoY)Cost discipline results in flat overheads YoY with CIR of 45.6% and positive JAWs of 5.0%

Note:

¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng

RM million1H

FY2020

1H

FY2019YoY

2Q

FY2020

1Q

FY2020QoQ

2Q

FY2019YoY

Personnel Costs 3,371.0 3,343.6 0.8% 1,644.0 1,727.0 (4.8)% 1,656.6 (0.8)%

Establishment Costs 916.4 890.0 3.0% 458.4 458.0 0.1% 448.7 2.2%

Marketing Expenses 185.2 291.8 (36.5)% 76.5 108.7 (29.6)% 151.1 (49.4)%

Administration & General

Expenses 1,175.8 1,103.9 6.5% 527.4 648.3 (18.6)% 565.3 (6.7)%

Total 5,648.3 5,629.3 0.3% 2,706.3 2,942.0 (8.0)% 2,821.7 (4.1)%

%1H

FY2020

1H

FY2019YoY

2Q

FY2020

1Q

FY2020QoQ

2Q

FY2019YoY

Total Cost to Income ¹ 45.6% 47.9% (2.3)% 47.9% 43.7% 4.2% 47.9% 0.0%

Group JAWS Position 5.0% (8.0)% 0.0%

15

391.6

958.0

333.9

961.7

1,739.3

995.6

2,700.9

2QFY2019

3QFY2019

4QFY2019

1QFY2020

2QFY2020

1HFY2019

1HFY2020

Allowances for losses on loans

78.0% 76.7% 77.3% 81.5%90.5%

90.2% 89.1% 90.8%89.5%

99.2%

Loan loss coverage incl. Regulatory Reserve

Loan loss coverage

Allowances for losses on loans

Asset QualityIncreased provisioning on management overlay while GIL reduces on higher account write-offs

Note:

Loan loss coverage includes ECL for loans at FVOCI as per Note A11(xii) of the Group’s Financial Statements

RM

million

GIL Ratio ComponentsJun

2020

Mar

2020

Dec

2019

Sep

2019

Jun

2019

Non Performing Loans

(NPL)2.03% 2.20% 2.20% 2.12% 2.01%

Restructured &

Rescheduled (R&R)0.09% 0.06% 0.05% 0.13% 0.16%

Performing Loans

Impaired Due to

Judgmental/ Obligatory

Triggers (IPL)

0.37% 0.45% 0.40% 0.42% 0.45%

GIL Ratio 2.49% 2.71% 2.65% 2.67% 2.62%

Group Gross Impaired Loans (GIL) Ratio Composition

2.11% 2.07% 1.95% 1.96% 1.68%

3.26% 3.39% 3.87% 4.04%3.41%

4.26%5.05%

4.48% 4.93%6.17%

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020

Malaysia Singapore Indonesia

GIL Ratio by Home Markets

1H FY2020 ECL includes:

• ~RM500 million

additional provisioning

on MEV adjustments

• ~RM1.0 billion in

management overlays

16

MBI GIL normalised to

include IFRS 9 impact

0.63% 0.58% 0.55% 0.64%0.50%

1.66% 1.71% 1.77% 1.88%2.44%

1.16% 1.06% 1.05%1.66%

3.12%


Note:

• In Malaysia, industry GIL ratio for mortgage (purchase of residential property) is 1.1%, 0.6% for auto finance and 0.7% for credit cards.

• In Singapore, industry GIL figure is only available for mortgage, which was 0.5%.

• Maybank Indonesia’s GIL ratios are mapped in accordance to its local regulatory reporting requirements. It has fully adopted IFRS 9 effective 1Q FY2020 reporting.

9.95% 9.76% 9.40% 9.63%7.60%

1.84% 1.75% 1.76% 1.58% 1.89%

4.22% 4.30% 6.39%7.92%

10.30%


Malaysia Singapore Indonesia

Asset Quality by Line of Business in Home MarketsQoQ uptick in Indonesia’s CFS line of businesses as loan outstanding balances contract

Mortgage Auto Finance Credit Cards

Retail SME (RSME) Business Banking (BB) Corporate Banking (CB)

Consumer

Business

0.90% 0.91% 0.87% 0.92% 0.85%

0.54% 0.59% 0.62% 0.56% 0.65%

2.88% 2.90% 2.97%

5.39%

7.98%

4.82% 4.65%4.70%


0.66% 0.67% 0.65% 0.71%

0.53%

0.13% 0.11% 0.09% 0.13%0.27%

1.27%

1.05%0.88%

0.98%

2.38%


2.86% 2.79% 2.49% 2.37% 2.20%

6.86%7.61%

8.70% 9.18%

7.43%

5.15%6.21%

4.37% 4.58%3.95%


2.26% 2.27%

2.26%2.35%

2.02%2.19% 2.23%

2.37% 2.42%2.23%

3.89%4.21%

4.51%

6.49%8.38%


17

32% 29% 39%

Upstream Midstream Downstream

66% 17% 2% 15%

Normal Watchlist Special Mention Account GIL

Exposure to Oil & Gas and Real Estate Sectors: 30 June 2020Stable QoQ exposure size

Group Exposure to Direct & Indirect Oil & Gas Borrowers

Borrowers’ Status:

Segmental Exposure:

Note:

Midstream refers to the transportation (i.e. pipeline, rail, barge, oil tanker or truck),

storage and wholesale marketing services of crude or refined petroleum products.

Of GIL breakdown:

• 75% is from midstream

Maybank Group Malaysia Singapore Indonesia Others

2.82% 1.86% 0.68% 0.08% 0.20%

Note:

Funded-only loans exposure is 2.23% for Group

4.40%3.54% 3.68%

2.87% 2.82%

FY2016 FY2017 FY2018 FY2019 1H FY2020

5-Year trend (Group exposure):

High Rise Residential,

28.8%

Landed Residential,

16.7%Malls, 9.1%

Offices, 4.3%

Hotels, 5.5%

Others, 35.6%

Real Estate Exposure to

Non-Retail Malaysian Borrowers

RM35.99 bil(or 11.39% of Malaysia

Gross Loans)

Note:

Funded-only loans exposure is 10.21%

‘Others’ include Land, Industrial Buildings & Factories,

Other Residential, Other Commercial and REITs

75% 22% 1% 2%

Normal Watchlist Special Mention Account GIL

Borrowers’ Status:

Of GIL breakdown:

• 40% is from combined exposure

to malls and hotels

• 6% is from high rise residential

Of Watchlist breakdown:

• 18% is from high rise residential

• 26% is from combined exposure

to malls, hotels and offices

18

93.4% 92.5% 92.4%

95.2%

90.6%

86.3%85.0% 84.8%

86.5%

83.0%

75.9% 75.0% 74.6%76.2%

73.1%


LDR LTF LTFE

145.4% 141.5% 141.0% 138.2% 140.5%

LCR

15.31% 15.44%

16.12% 16.24%

19.39% 18.81%

Dec 19 Jun 20

15.73% 15.43%

16.49% 16.18%

19.39% 19.04%

Dec 19 Jun 20

Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

Group

Bank

Strong Liquidity & Capital Positions: 30 June 2020Stable LCR at 140.5%, while Group CET1 capital ratio remains strong at 15.43%

Note: 1) BNM’s minimum LCR requirement is 100%

2) LTF is gross loans divided by (deposits + borrowings +

subdebt) while LTFE’s denominator is (deposits +

borrowings + subdebt + equity + capital securities)

3) LDR, LTF & LTFE excludes loans to banks and FIs

Liquidity Risk Indicators

Regulatory Requirement:

• Min. CET 1 Capital Ratio + Capital Conservation Buffer (CCB) is 7.0%,

min. Tier 1 Capital Ratio + CCB is 8.5% and min. Total Capital Ratio +

CCB is 10.5%.

• 1.0% D-SIB Buffer effective 31 January 2021

• Pending finalisation of Countercyclical Capital Buffer (0%-2.5%)

Capital Positions

19

Table of Contents

Executive Summary 2

Results Overview 8

Appendix:








20

80.8%

10.6%

8.6%

Malaysia Singapore Indonesia Others

Overseas:

19.2%

61.2%23.7%

6.9%8.2%Overseas:

38.8%

64.8%

16.9%

11.7%

6.6%

85.6%

3.0%6.8%

4.6%

62.3%18.5%

12.2%

7.0%

58.1%25.7%

7.7%

8.5%

International & Malaysia Portfolio Mix 1H FY2020

Overseas:

41.9%

1H FY2019

Net Operating Income Profit Before Tax¹

1H FY2020

Overseas:

37.7%

Overseas:

14.4%

Gross Loans*

(Jan 19 – Jun 19)

Overseas:

35.2%

(Jan 20 – Jun 20)

RM5.10

billion

RM525.6

billion

RM11.75

billion

RM4.05

billionRM520.2

billionRM12.37

billion

Note:

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

¹ Profit Before Tax country percentages for 1H FY2020 excludes Singapore which registered a loss before tax

21

6,121

2,992 3,004

14 3 473

6,724

2,628

3,604

125 (3)396

Total Group CommunityFinancial Services

Group CorporateBanking & Global

Markets

Group InvestmentBanking

Group AssetManagement

Group Insurance& Takaful

1H FY2019

1H FY2020

11,750

6,645

3,919

527 87 936

12,373

6,326

4,542

618 52

860



Markets




1H FY2019

1H FY2020

Segmental Performance of Businesses: 1H FY2020 (1/2)

Net Operating Income

+5.3%

RM

million

PPOP

(4.8)% +15.9%

Group Global Banking +23.4%


1H FY2019: 4,533 1H FY2020: 5,212

1H FY2019: 3,021 1H FY2020: 3,727

Note:

Net income & PPOP for Group includes “Head Office & Others” expenditure of RM364.8 million for 1H FY2019 and RM25.6 million for 1H FY2020.

RM

million

+20.0% (12.2)%

+17.5% (40.7)% (8.1)%

+9.9%

+>100% (>100%) (16.4)%

22

3,276

1,602 1,360

399 85

302

4,188

1,447 1,894

503

51 229



Markets




1H FY2019

1H FY2020

8,474

5,043

2,559

127 2 635

8,185

4,879

2,648

116 1 632



Markets




1H FY2019

1H FY2020

Net Fund Based Income


Net Fee Based Income

(8.9)% (45.1)% (3.2)% +3.5% (0.5)%

1H FY2019: 2,689 1H FY2020: 2,765


1H FY2019: 1,845 1H FY2020: 2,447

Segmental Performance of Businesses: 1H FY2020 (2/2)

Note:

Net fund based income includes “Head Office & Others” income of RM107.7 million for 1H FY2019 and expenditure of RM90.6 million for 1H FY2020.

Net fee based income includes “Head Office & Others” expenditure of RM472.4 million for 1H FY2019 and income of RM65.0 million for 1H FY2020.

+39.3% (9.7)%

RM

million

RM

million

+27.8%

(3.4)%

+25.8% (40.6)% (24.2)%

23

Unaudited Income Statement for Insurance and Takaful Business

RM million1H

FY2020

1H

FY2019YoY

2Q

FY2020

1Q

FY2020QoQ

2Q

FY2019YoY

Net interest income 631.3 634.3 (0.5)% 315.9 315.4 0.2% 322.0 (1.9)%

Net earned premiums 3,685.8 3,250.4 13.4% 1,740.9 1,944.9 (10.5)% 1,623.8 7.2%

Other operating income 222.2 1,096.5 (79.7)% 1,016.9 (794.7) (>100)% 595.2 70.9%

Total operating income 4,539.4 4,981.2 (8.9)% 3,073.7 1,465.7 >100% 2,541.0 21.0%

Net insurance benefits & claims incurred, net fee

& commission expenses, change in expense

liabilities and life & takaful fund tax

(3,687.9) (4,052.6) (9.0)% (2,519.9) (1,168.0) >100% (2,086.9) 20.7%

Net operating income 851.5 928.6 (8.3)% 553.8 297.6 86.1% 454.1 22.0%

Overhead expenses (462.3) (459.7) 0.6% (222.2) (240.1) (7.4)% (239.9) (7.4)%

PPOP 389.2 468.9 (17.0)% 331.6 57.6 >100% 214.2 54.8%

Net impairment losses (12.9) (16.9) (23.7)% (6.1) (6.8) (10.8)% (7.4) (17.9)%

Operating profit 376.3 452.1 (16.8)% 325.6 50.8 >100% 206.8 57.4%

RM million1H

FY2020

1H

FY2019YoY

2Q

FY2020

1Q

FY2020QoQ

2Q

FY2019YoY

Net insurance benefits & claims incurred, net fee

& commission expenses, change in expense

liabilities and life & takaful fund tax

(3,687.9) (4,052.6) (9.0)% (2,519.9) (1,168.0) >100% (2,086.9) 20.7%

Less: intercompany elimination 132.9 143.7 (7.5)% 50.6 82.2 (38.4)% 72.5 (30.2)%

Total net insurance benefits & claims incurred,

net fee & commission expenses, change in

expense liabilities and life & takaful fund tax

(3,555.1) (3,908.9) (9.1)% (2,469.2) (1,085.8) >100% (2,014.4) 22.6%

Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses, change in expense liabilities

and life & takaful fund tax

24

Group Gross Loans Growth: 30 June 2020

Note:

¹ Rebased loan growth figures are based on adjusted 31 December 2019 position in line with migration of client accounts, effective 1 January 2020

% of

Portfolio

30 Jun

2020

31 Mar

2020QoQ

31 Dec

2019

YTD

Ann.

30 Jun

2019YoY

Group Gross Loans 520.2 518.4 0.3% 523.5 (1.3)% 525.6 (1.0)%

Malaysia (RM billion) 61% 316.1 314.3 0.6% 314.1 1.3% 302.9 4.4%

Community Financial Services (reported) 74% 234.6 231.7 1.2% 231.3 2.9% 222.2 5.6%

Community Financial Services (rebased)¹ 74% 234.6 231.7 1.2% 231.0 3.1% 222.2 5.6%

Global Banking (reported) 26% 81.0 82.4 (1.7)% 82.7 (4.0)% 80.5 0.7%

Global Banking (rebased)¹ 26% 81.0 82.4 (1.7)% 82.9 (4.6)% 80.5 0.7%

International (RM billion) 38% 198.1 199.1 (0.5)% 203.0 (4.8)% 216.3 (8.4)%

Singapore (SGD billion) 60% 38.9 40.2 (3.2)% 40.7 (8.7)% 42.9 (9.1)%

Community Financial Services 56% 21.8 21.9 (0.5)% 22.1 (3.3)% 22.9 (4.8)%

Global Banking 44% 17.0 18.2 (7.0)% 18.5 (16.3)% 19.9 (14.5)%

Indonesia (IDR trillion) 18% 119.5 128.1 (6.7)% 127.0 (11.8)% 139.2 (14.2)%

Community Financial Services 68% 80.9 88.6 (8.7)% 91.3 (22.8)% 98.4 (17.8)%

Global Banking 32% 38.4 39.3 (2.3)% 35.5 16.1% 40.5 (5.2)%

Other markets (RM billion) 22% 42.7 43.6 (2.1)% 41.7 4.7% 44.5 (4.0)%

Investment banking (RM billion) 1% 6.0 5.0 19.6% 6.4 (14.0)% 6.4 (5.7)%

25

Note:

¹ Rebased loan growth figures are based on adjusted 31 December 2019 position in line with migration of client accounts, effective 1 January 2020

Malaysia Loans Growth: 30 June 2020

RM billion% of

Portfolio

30 Jun

2020

31 Mar

2020QoQ

31 Dec

2019

YTD

Ann.

30 Jun

2019YoY

Community Financial Services (reported) 74% 234.6 231.7 1.2% 231.3 2.9% 222.2 5.6%

Community Financial Services (rebased)¹ 74% 234.6 231.7 1.2% 231.0 3.1% 222.2 5.6%

Consumer 60% 189.3 187.9 0.8% 186.9 2.6% 179.6 5.4%

Total Mortgage 32% 102.4 100.5 1.9% 97.7 9.7% 91.6 11.8%

Auto Finance 16% 49.4 49.4 (0.1)% 49.6 (1.1)% 48.7 1.4%

Credit Cards 2% 6.7 7.2 (7.3)% 7.8 (27.8)% 7.4 (9.1)%

Unit Trust 9% 28.7 28.5 0.6% 29.5 (5.5)% 29.6 (2.9)%

Other Retail Loans 1% 2.2 2.3 (3.1)% 2.3 (8.8)% 2.4 (7.2)%

Business Banking + SME (reported) 14% 45.3 43.8 3.2% 44.4 3.8% 42.7 6.1%

Business Banking + SME (rebased)¹ 14% 45.3 43.8 3.2% 44.1 5.0% 42.7 6.1%

SME (reported) 6% 20.0 19.0 5.1% 19.1 9.6% 17.8 12.3%

SME (rebased)¹ 6% 20.0 19.0 5.1% 18.8 13.3% 17.8 12.3%

Business Banking (reported) 8% 25.2 24.8 1.8% 25.3 (0.6)% 24.8 1.6%

Business Banking (rebased)¹ 8% 25.2 24.8 1.8% 25.4 (1.1)% 24.8 1.6%

Global Banking (Corporate) (reported) 26% 81.0 82.4 (1.7)% 82.7 (4.0)% 80.5 0.7%

Global Banking (Corporate) (rebased)¹ 26% 81.0 82.4 (1.7)% 82.9 (4.6)% 80.5 0.7%

Total Malaysia 316.1 314.3 0.6% 314.1 1.3% 302.9 4.4%

26

Group Deposits Growth: 30 June 2020

% of

Portfolio

30 Jun

2020

31 Mar

2020QoQ

31 Dec

2019

YTD

Ann.

30 Jun

2019YoY

Group Gross Deposits 573.3 543.8 5.4% 565.3 2.9% 560.9 2.2%

Malaysia (RM billion) 62% 355.4 336.7 5.6% 351.5 2.2% 351.2 1.2%

Savings Deposits 15% 54.5 48.8 11.6% 45.0 42.0% 44.5 22.5%

Current Accounts 29% 103.0 97.8 5.4% 91.0 26.4% 87.0 18.4%

Fixed Deposits 35% 125.2 129.9 (3.6)% 133.8 (12.8)% 146.5 (14.5)%

Others 21% 72.7 60.2 20.8% 81.7 (22.0)% 73.2 (0.6)%

International 38% 219.3 210.0 4.4% 214.7 4.3% 211.3 3.8%

Singapore (SGD billion) 68% 48.8 47.2 3.2% 48.3 1.9% 45.6 7.0%

Savings Deposits 18% 8.9 7.8 14.0% 7.9 23.3% 7.1 25.2%

Current Accounts 16% 7.7 6.6 15.7% 6.1 52.0% 7.0 10.4%

Fixed Deposits 66% 32.2 32.8 (1.9)% 34.3 (12.0)% 31.5 2.1%

Indonesia (IDR trillion) 15% 105.9 117.4 (9.8)% 110.9 (8.9)% 125.6 (15.6)%

Savings Deposits 20% 21.5 21.9 (2.0)% 21.0 5.1% 19.6 9.9%

Current Accounts 20% 20.8 21.7 (4.4)% 19.5 13.3% 21.9 (4.9)%

Fixed Deposits 60% 63.7 73.7 (13.6)% 70.4 (19.2)% 84.1 (24.4)%

27

93.4% 92.5% 92.4%95.2%

90.6%

34.9% 34.6% 35.5%38.4%

40.2%

32.6% 32.5% 33.2%35.1%

37.3%


LDR CASA CASA (without IA)

86.9% 87.1% 90.0% 93.9% 89.4%

37.5% 37.5% 38.7%43.6% 44.3%

33.8% 34.0% 34.9%38.2% 39.7%


LDR and CASA Ratio

Singapore Indonesia

Group Malaysia

107.0%112.2% 111.3% 106.3% 109.9%

33.0% 36.2% 36.5% 37.2% 39.9%

92.3% 96.3% 94.1% 89.7%94.2%


LDR (Bank Level)

94.0%87.9% 84.3% 85.2%

79.9%

30.8% 28.4% 29.1% 30.5% 34.0%


Note:

• Group and Indonesia LDR excludes loans to banks and FIs

• Group and Malaysia LDR include investment accounts totaling RM22.54 billion for 30 Jun 2020, RM24.50 billion for 31 Mar 2020, RM20.74 billion for 31 Dec 2019, RM20.14 billion for 30

Sep 2019, RM20.74 billion for 30 Jun 2019.

28

525.6 523.5 520.2

Jun 19 Dec 19 Jun 20

327.0310.3 317.2

20.4

27.326.0

42.142.9

43.3

Operational RWA Market RWA

Credit RWA Gross Loans

USD, 38%

RM, 24%

JPY, 12%

IDR, 8%

HKD, 6%

SGD, 3%CNY, 2%

Others, 7%

Borrowings, 5%

Capital Instruments, 2%

Customer Funding, 77%

FI Deposits, 5%

Equity, 11%

RWA Optimisation and Funding Management

Group Gross Loans & Group RWA

RM

billion

RM746.2

billion

RM54.7

billion

Funding Breakdown

Note:

• Customer Funding comprises Deposits from Customers & Investment Accounts of Customers.

By maturity:

≤ 1 Year 22%

> 1 Year 78%

Borrowings and

Capital Instruments

by Currency

Growth (%) YoY YTD Ann.

Group Gross Loans (1.0)% (1.3)%

Total Group RWA (0.8)% 3.2%

- Group Credit RWA (3.0)% 4.4%

389.5 380.4 386.5

29

Key Operating Ratios

Note:1 LDR excludes loans to banks and FIs.2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Maybank Kim Eng.3 2Q & 1H FY2019 capital ratios are based on full cash payment of interim dividend for FY2019, while 1Q FY2020 capital ratios are based on full cash payment of the second interim

dividend for FY2019.

%1H

FY2020

1H

FY2019YoY

2Q

FY2020

1Q

FY2020QoQ

2Q

FY2019YoY

Return on Equity 7.5 9.8 (2.3)% 4.7 10.6 (5.9)% 10.2 (5.5)%

Net Interest Margin 2.09 2.24 (15) bps 1.95 2.23 (28) bps 2.19 (24) bps

Fee to Income Ratio 33.8 27.9 5.9% 32.0 35.4 (3.4)% 29.3 2.7%

Loans-to-Deposit Ratio 1 90.6 93.4 (2.8)% 90.6 95.2 (4.6)% 93.4 (2.8)%

Cost to Income Ratio 2 45.6 47.9 (2.3)% 47.9 43.7 4.2% 47.9 0.0%

Asset Quality

Gross Impaired Loans Ratio 2.49 2.62 (13) bps 2.49 2.71 (22) bps 2.62 (13) bps

Loans Loss Coverage 90.5 78.0 12.5% 90.5 81.5 9.0% 78.0 12.5%

Net Charge off rate (bps) (103) (38) (65) bps (133) (73) (60) bps (30) (103) bps

Capital Adequacy ³

CET1 Capital Ratio 15.43 14.23 120 bps 15.43 14.79 64 bps 14.23 120 bps

Total Capital Ratio 19.04 17.98 106 bps 19.04 18.50 54 bps 17.98 106 bps

30

Table of Contents

Executive Summary 2

Results Overview 8

Appendix:








31

Community Financial Services: Overview of Market Share for Malaysia

Note:

* Refers to housing, shophouse and other mortgage loans

** Credit cards market share refer to receivables for commercial banks

*** Total bank deposits inclusive of investment asset (“IA”)

^ Without IA. With IA, the market share as at Jun’20 for Total Core Retail Deposits , Retail

CASA, Retail Savings, Demand Deposits and Retail Fixed Deposits are 17.8%, 27.0%,

28.7%, 23.6% and 13.7% respectively (against MBB retail IA)

^^ Excluding non-financial transactions as per BNM guidelines

Loans

Total consumer (Household) 17.5% 17.6% 17.7% 17.8% 17.9%

Auto (Hire Purchase + Block Discounting + Floor Stocking) 28.9% 29.3% 29.6% 29.7% 30.3%

Total mortgage * 13.6% 13.7% 14.0% 14.2% 14.3%

Credit cards ** 19.0% 18.7% 18.6% 18.6% 18.5%

Unit trust 49.2% 48.7% 48.5% 49.8% 49.7%

Deposits

Total deposits *** 17.8% 18.0% 17.8% 17.5% 17.6%

Total core retail deposits ^ 16.8% 16.7% 16.5% 16.9% 17.4%

Retail CASA ^ 24.9% 24.7% 24.3% 25.3% 25.7%

Retail savings ^ 28.3% 27.9% 27.8% 28.1% 28.7%

Demand deposits ^ 18.9% 18.8% 18.2% 19.9% 19.8%

Retail fixed deposits ^ 12.9% 12.9% 12.8% 12.7% 12.9%

Channels

Internet banking - Subscriber base 40.6% 40.1% 39.6% 39.1% 40.3%

Mobile banking - Subscriber base 31.8% 31.5% 31.3% 32.6% 31.9%

Internet banking - Transaction Volume ^^ 50.7% 50.9% 51.0% 50.5% 50.1%

Mobile banking - Transaction Volume 62.6% 62.9% 63.0% 62.9% 62.7%

Branch network 19.3% 19.3% 19.4% 19.4% 19.4%

Jun-20Sep-19 Mar-20Dec-19Jun-19Market share

32


5.59

6.38

Jun 19 Jun 20

3.204.29

Jun 19 Jun 20

138.9 138.9 151.1

60.2 65.4 62.9


Consumer BB + RSME

Community Financial Services: Overview of Malaysia Portfolio

Note:

• TFA: Total Financial Assets (Deposits, Investments, Financing & Protection).

• TFA for total Individual customers (excl. NPL) amounted to RM343.0 billion as at

Jun’20, RM327.7 billion as at Dec’19 and RM319.2 billion as at Jun’19.

Wealth Management segment’s TFA grew 8.9% YoY to

RM227.1 billion

Total CFS loans on an upward trend of 5.6% YoY and 2.9%

YTD Ann.R

M b

illion

+9.5% YTD Ann.

Total CFS deposits increased by 7.5% YoY driven by CASA

growth of 18.9%

+7.5% YoY

+14.2% YoY

Maybank2u 1-month active users grew 14.2% YoY driven

by mobile users growth

179.6 186.9 189.3

42.7 44.4 45.3


Consumer BB + RSME

+2.9% YTD Ann.

+5.6% YoY

+8.9% YoY

+10.8% YTD Ann.

+34.1% YoY

M2u 1-month active users of which Mobile 1-month

active users

RM

billion

RM

billion

In m

illion

222.2 231.3

208.6

199.1 204.3234.6 214.0

215.5 227.1

33

Table of Contents

Executive Summary 2

Results Overview 8

Appendix:








34

10.8

23.9

45.7

10.8

25.1

46.7

10.2

22.3

48.5

June 20 Dec 19 June 19

RM billion

Note:

- ‘Term Loan’ includes foreign currency denominated accounts, while ‘Trade Finance

and Others’ is combined with ‘Overdraft’

- Trade Finance market share as at June 2020 is 21.8%

Term Loan

Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio

Group Securities Portfolio¹ grew 4.7% YoY Total Corporate Banking loans in Malaysia increased 0.7%

YoY to RM81.0 billion

Short Term

Revolving

Credit

Trade

Finance

and Others(5.9)% YoY

+6.3%YoY

(7.0)% YoY

Note: ¹ Group Securities Portfolio is inclusive of Financial assets designated upon

initial recognition (part of FVTPL)

51.7 52.1 51.1 52.9 63.2

50.161.9

52.5 51.454.0

58.559.3

60.0 55.157.2

26.221.2

20.7 24.2

23.88.47.9

8.5 5.9

5.9


Govt. Securities - Domestic Govt. Securities - Foreign

PDS/Corp Bonds - Domestic PDS/Corp Bonds - Foreign

Others

+4.7% YoY

RM

billion

194.9 202.4192.8 189.5

204.1

35

Global Banking: Overview of Group Investment Banking Portfolio

1H FY2020 Fee-based Income for Malaysia1H FY2020 Total Income Breakdown by Country

Note:

¹ Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings.

1H FY2020 Brokerage Market Share by Country

Country Rank Market ShareTrading Value

(USD billion)

Malaysia 5 8.2% 15.1

Singapore 12 3.5% 9.9

Thailand 3 6.5% 32.2

Indonesia 4 5.4% 7.1

Philippines 8 4.3% 1.7

Hong Kong Tier 3 0.1% 4.9

Vietnam 9 3.1% 1.6

Brokerage Fees79%

Arranger Fees8%

Underwriting & Placement Fees2%

Advisory Fees2%

Agency/ Guarantee Fees

4%

Other Fee Income5%

Malaysia42%

Singapore28%

Thailand16%

Indonesia4%

Philippines1%

Hong Kong4%

Others5%

RM618.5

million

36

Table of Contents

Executive Summary 2

Results Overview 8

Appendix:








37

Maybank Singapore: P&L Summary

SGD million 1H FY2020 1H FY2019 YoY 2Q FY2020 1Q FY2020 QoQ

Net fund based income 313.24 383.61 (18.3)% 142.84 170.40 (16.2)%

Net fee based income 189.88 161.75 17.4% 85.48 104.40 (18.1)%

Net income 503.12 545.36 (7.7)% 228.32 274.80 (16.9)%

Overhead expenses (236.63) (234.54) 0.9% (115.53) (121.10) (4.6)%

Operating profit 266.48 310.82 (14.3)% 112.78 153.70 (26.6)%

Profit/ (Loss) before taxation 85.84 17.19 >100% 8.52 77.32 (89.0)%

Net fund based income was 18.3% lower YoY, affected by contraction in loans.

Net fee based income improved 17.4% YoY, mainly attributed to investment gains and wealth management,

which offset the lower contribution from treasury, trade and cards related income.

Overheads were stable at SGD236.63 million, with less marketing spend on reduced promotional activities

during the circuit breaker period and lower establishment costs from rental rebates received.

1H FY2020 profit before taxation of SGD85.84 million improved from 1H FY2019’s profit before taxation of

SGD17.19 million, due to lower loan loss allowances.

38

6.2 5.3 6.4

15.2 15.9 16.2

7.8 8.8 10.1

16.2 18.3 16.1


Consumer -Time Deposits

Consumer CASA

Business TimeDeposits

Business CASA

48.8

7.1 7.9 8.9

7.0 6.1 7.7

31.5 34.3 32.3


Time Deposits

Demand Deposits

Savings

Diversified Loan Portfolio

2.2% -0.1% -3.9% -5.6% -9.1%

3.9% 4.7% 4.2% 8.3% 2.1%


Maybank Singapore Growth Industry Growth

Maybank Singapore: Overview of Loans and Deposits Portfolio

% YoY change

Consumer

54 %

Corporate

46 %

SG

D b

illion

Consumer deposits made up 54% of total deposits

CASA Ratio:

34.0%SG

D b

illion

CASA ratio lifted to 34% from 29% in Dec 19 and from 31%

last June, on expanded individual savings and demand

deposits.

Consumer deposits rose SGD2.2 billion YoY, contributed mainly by

savings and demand deposits growth.

Business deposits too, expanded SGD1.1 billion YoY mainly due to

fixed deposits increase.

45.6 48.3

Maybank Singapore loans contracted YoY, amidst the

pandemic situation in the six months of 2020.

SGD Billion% of

Portfolio

30 Jun

2020

31 Dec

2019

YTD

Ann.

30 Jun

2019YoY

CFS 56% 21.8 22.1 (3.3)% 22.9 (4.8)%

Consumer 40% 15.6 16.0 (5.5)% 16.6 (6.4)%

Housing Loan 27% 10.3 10.6 (4.4)% 10.9 (5.0)%

Auto Loan 6% 2.3 2.4 (11.1)% 2.5 (8.9)%

Cards 1% 0.3 0.4 (41.0)% 0.4 (21.8)%

Others 7% 2.6 2.6 0.5% 2.8 (7.0)%

Non-Individuals 16% 6.2 6.1 2.4% 6.3 (0.8)%

RSME 4% 1.6 1.5 13.8% 1.5 8.5%

Business Banking 8% 3.3 3.2 5.9% 3.4 (2.7)%

Others 4% 1.4 1.5 (16.2)% 1.5 (5.5)%

Global Banking 44% 17.0 18.5 (16.3)% 19.9 (14.5)%

Total 100% 38.9 40.7 (8.7)% 42.9 (9.1)%

+7.0% YoY

39

Table of Contents

Executive Summary 2

Results Overview 8

Appendix:








40

Maybank Indonesia: P&L Summary

IDR billion 1H

FY2020

1H

FY2019YoY

2Q

FY2020

1Q

FY2020QoQ

Net Fund Based income 3,936 4,024 (2.2)% 1,912 2,024 (5.5)%

Net Fee Based income 1,184 1,167 1.4% 586 598 (2.0)%

Net income 5,119 5,191 (1.4)% 2,498 2,622 (4.7)%

Overhead expenses (3,036) (3,183) (4.6)% (1,432) (1,604) (10.7)%

Personnel (1,318) (1,265) 4.2% (660) (658) 0.3%

General and Administrative (1,718) (1,918) (10.4)% (772) (946) (18.4)%

Operating profit 2,083 2,008 3.7% 1,066 1,017 4.7%

Provisions Expenses (1,011) (975) 3.7% (731) (280) >100%

Non Operating Income/(Expense) (7) 9 (>100)% (4) (3) 59.6%

Profit Before Tax and Non-Controlling Interest 1,065 1,042 2.2% 330 735 (55.1)%

Tax and Non-Controlling Interest (256) (285) (10.3)% (59) (197) (70.1)%

Profit After Tax and Non-Controlling Interest 810 757 7.0% 272 538 (49.5)%

EPS - Basic (IDR) 10.62 9.93 6.9% 3.56 7.06 (49.6)%

41

Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

Key Operating Ratios Loans Portfolio Breakdown

Note: Maybank Indonesia’s loans breakdown is mapped in accordance to its local

regulatory reporting requirements.

^ LCR is disclosed on a quarter-end basis

Key Operating Ratio Jun-20 Dec-19 Jun-19 YoY

Profitability & Efficiency

Return On Assets 1.23% 1.45% 1.12% 0.11%

Return On Equity (Tier 1) 6.68% 7.73% 6.50% 0.18%

Net Interest Margin 5.01% 5.07% 4.83% 0.18%

Cost to Income Ratio 59.31% 59.48% 61.32% (2.01)%

Asset Quality

NPL - Gross 4.99% 3.33% 3.06% 1.93%

Liquidity & Capital Adequacy

LCR 156.31% 146.49% 166.38% (10.07)%

CET 1 20.44% 19.54% 17.12% 3.32%

CAR 22.10% 21.38% 19.07% 3.02%

IDR Trillion% of

Portfolio

30 Jun

2020

31 Mar

2020QoQ

30 Jun

2019YoY

CFS 69% 79.9 87.7 (8.9)% 97.6 (18.1)%

CFS Retail 32% 37.5 41.1 (8.7)% 43.0 (12.9)%

Auto Loan 17% 20.0 22.9 (12.7)% 24.0 (16.7)%

Mortgage 12% 14.3 14.6 (2.5)% 15.5 (7.8)%

CC + Personal

Loan2% 2.8 3.1 (9.8)% 3.1 (10.7)%

Other loans 1% 0.4 0.5 (2.0)% 0.4 2.3%

CFS Non-Retail 37% 42.4 46.6 (9.0)% 54.6 (22.3)%

Business Banking 19% 21.8 24.7 (11.7)% 31.1 (29.9)%

SME+ 4% 4.6 4.8 (6.1)% 4.9 (7.9)%

RSME 14% 16.1 17.1 (5.9)% 18.6 (13.5)%

Global Banking 31% 35.8 35.3 1.4% 37.8 (5.4)%

Total 115.7 122.9 (5.9)% 135.4 (14.6)%

42

Table of Contents

Executive Summary 2

Results Overview 8

Appendix:








43

35.0

50.3

40.9

7.1

29.0

21.3

37.9

57.4

43.2

7.6

30.6

19.8

AITAB Mortgage Term Financing Others (CFS) Term Financing Others (GB)

Jun-19

Jun-20

6%

Maybank Islamic, 61.7%

Maybank Conventional,

Malaysia, 38.3%

Year Contribution

Jun 2019 60.2%

Sep 2019 60.9%

Dec 2019 60.7%

Mar 2020 61.3%

Jun 2020 61.7%

Islamic Banking: Performance Overview

Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM196.5

billion

Maybank Islamic Contribution to Maybank Malaysia Loans

and Financing as at June 2020

Note: Figures are as per latest segmentation breakdown

Group Islamic Banking’s performance includes key markets in Malaysia, Indonesia and

Singapore

RM million 1H FY2020 1H FY2019 YoY

Total Income 2,303.0 2,395.8 (3.9)%

Profit Before Tax 758.3 1,602.3 (52.7)%

Financing & Advances 209,459.8 196,706.4 6.5%

Deposits & Investment Account: 199,005.8 190,590.2 4.4%

Deposits from Customers 176,468.1 168,937.4 4.5%

Investment Account 22,537.6 21,652.8 4.1%

RM

billion

Maybank Islamic: Key Financial Ratios

Key Financial Ratios 1H FY2020 1H FY2019

Total Capital Ratio (TCR) 18.44% 19.64%

Net Profit Margin (YTD) 1.60% 1.69%

Cost to Income Ratio (CIR) 39.37% 36.19%

Direct FDR1 89.5% 93.1%

Note:

¹ Direct Financing to Deposits Ratio (FDR) comprising gross financing against deposit

and Unrestricted Investment Account (exc. RPSIA assets and liabilities)

5%

(7)%

CFS:10% GB:0.2%

7%

14%

8%

44

Key Products Jun 20 Jun 19

Automobile Financing 48.6% 46.5%

Home 26.8% 26.3%

Term financing 28.2% 28.3%

Maybank Islamic ranks No.1 by Asset Market Share

in Malaysia

Islamic Banking: Market Share

Market Share by Product (Malaysia) Maybank Islamic Market Share

31.0% 31.2% 31.1% 30.9% 30.7%

28.3%28.7%

27.8% 27.6% 27.9%


Financing Deposits & Investment Accounts

MalaysiaAsset Market Share

Mar 20Rank

Maybank Islamic 29% 1

CIMB Islamic 13% 2

Public Islamic 8% 3

Source: Latest BNM Monthly Statistical Bulletin

Sukuk League Table Ranking June 2020

Source : Latest BNM Monthly Statistical Bulletin

Source: BloombergSource: Respective Bank’s Financial Statements

Global Sukuk League

Table Ranking

Market

Share (%)

Amount

(USD million)Issues

#4 Maybank 6.00% 1,572 55

MYR Sukuk League

Table Ranking

Market

Share (%)

Amount

(USD million)Issues

#4 Maybank 15.80% 1,005 42

45

38.8 44.7

Jun-2019 Jun-2020

8.0% 7.9% 7.6% 6.9%

8.0% 7.3% 7.6% 7.5%

10.6% 10.6% 10.2% 10.7%

12.1% 11.5% 12.2% 14.0%

2017 2018 2019 2020

Etiqa Allianz AM Group HL/MSIG

528.2

450.3

1H FY2019 1H FY2020

Insurance and Takaful: Performance Overview

Total Assets

Net Adjusted Premium/Contribution

Profit Before Tax

Life & Family (New Business) Market Share (Malaysia)

No. 1 in General

Insurance and

Takaful

(Gross Premium)

General Insurance and Takaful Market Share (Malaysia)

(14.7)% YoY +15.1% YoY

Note: Market Share is for 12-month period rolling from April to March of every year

(Source: LIAM / ISM Statistics)

RM

million

RM

billion

No. 4 in

Life/Family

(New Business)

7.6% 10.5% 11.1% 11.2%

14.8% 13.9% 13.8% 12.9%

14.2% 13.0% 16.5% 17.2%

22.1% 21.9% 18.6% 19.5%

2017 2018 2019 2020

AIA GE Prudential Etiqa

*Net Adjusted Premium (NAP) = Life/Family Adjusted Premium (100% Regular Premium

+10% Single Premium/Credit/Group)+ Net Written Premium (General)

Note: Net Adjusted Premium, Profit Before Tax and Total Assets are presented at EIH Group level

0 500 1,000 1,500 2,000 2,500 3,000

Total Net Adjusted…

Total General

Misc

Personal Accident

MAT

Motor

Fire

Total Life & Family

Group Premium

Credit Premium

Regular Premium

Single Premium

RM Million

1H FY2020

1H FY2019

35.6%

(4.7)%

(9.6)%

4.0%

(11.1)%

(2.2)%

3.0%

4.7%

161.0%

(29.6)%

7.4%

20.4%

Total Net Adjusted

Premium

46

MALAYAN BANKING BERHAD

14th Floor, Menara Maybank

100, Jalan Tun Perak

50050 Kuala Lumpur, Malaysia

Tel : (6)03-2070 8833

www.maybank.com

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.

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