Investor Presentation Financial Results 6-Month Financial Period - PowerPoint PPT Presentation

Investor Presentation Financial Results 6-Month Financial Period ended 31 December 2011 23 February 2012 www.maybank.com 0

Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects Financial Results: 6-Month Financial Period ended 31 December 2011 1

Key Highlights: Financial performance continued to improve  Strong revenue growth and continued profit growth for 6-month Financial Period (FP) 2011 Revenue grew 21.6% YoY on the back 16.2% growth in fund based income and 32% growth in fee income  Revenue grew 17.3% excluding insurance surplus transfer & new takaful framework implementation.   6-month FP 2011 PATAMI grew 20.0% YoY to RM2.58 billion; 2QFP2011 PATAMI grew 15.2% YoY to RM1.30 bil  Growth seen across all business pillars  All business pillars recorded double digit revenue growth PBT rose by RM597 million (+20.1%) YoY mainly due to growth in:  Community Financial Services (+RM257m, +18.0%)   Global Wholesale Banking (+RM90m, +7.8%)  Insurance & Takaful (+RM295m, +323.1% ) International (+RM159m, +19.4%)   On annualised basis Group loans grew 16.2% (23.7% YoY), driven by strong loans growth of 23.7% in Singapore (29.3% YoY) and 31.2% in BII (25.0% YoY) while domestic loans grew 10.0% (17.4% YoY). Allowances for losses on loans for FP11 improved by 13.9% YoY primarily due to higher recovery and lower  individual allowance. Net Impaired Loan ratio improved to 1.86% in Dec 2011 from 2.25% in Dec 2010. Strong Financial Position   Group shareholders’ funds of RM33.4 billion, total assets of RM451.3 billion  Capital Adequacy Ratio of 16.26% (assuming a 85% DRP reinvestment rate) Exceeded Headline KPIs for FP2011  ROE of 16.2% exceeded target of 16.0%, & Loans and Debt Securities growth of 16.3% against 12% target  Continued high dividend payout of 79.9%   Proposed final dividend of 36 sen per share less 25% tax.  The dividend consists of 4 sen cash portion and 32 sen electable portion for the DRP . 2

Key Corporate Developments: Eventful 6-Month period Change of Financial Year End from 30 June to 31 December.  Branding Initiatives  Prime Minister launched refreshed Maybank Group corporate identity   New corporate identity for Kim Eng (Maybank Kim Eng)  BII rebranding in progress  New Appointments Dato ’ Khairussaleh appointed as President Director/CEO of BII, subject to Bank Indonesia approval.  Michael Foong appointed Chief Strategy & Transformation Officer, Maybank Group  Network Expansion  During the financial period Maybank added new branches in Malaysia (+6, bringing total to 392) and Indonesia (+7 to 346). Network expansion also took place the Philippines (+5 to 50) and Cambodia (+1 to 11) during the year. Medium Term Funding  28 Dec 2011. Issuance of RM1.0 billion of Subordinated Notes under its RM3.0 billion Subordinated Note  Programme in two tranches: RM750m, 10 non-callable 5 basis priced at 3.97% and RM250m, 12 non- callable 7 basis priced at 4.12%. 10 Feb 2012. Issuance of USD400 million Regulation S senior unsecured notes under its USD2.0 billion  Multicurrency Medium Term Note Programme, priced at 3.0% and was 5 times oversubscribed. 3

The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011….  Annualised loan growth for Jan-Dec 2011 of 16.2% 1. Growing loans & deposits with pricing exceeded loan growth 12-month of 12% discipline  NIM saw a marginal decline to 2.53%  Continued roll-out of our branch transformation 2. Reinforcing community banking & program with signature branches in various locations  Annualised loan growth of 9.1% for business banking addressing SME fundamentals & SME loans  International coverage teams in place to secure cross 3. Intensify client coverage collaboration with border deals & service regional clients product partners, with regional  Wholesale banking product heads in Singapore, responsibility. Indonesia, Hong Kong, China and Philippines.  Utilization of new regional franchise to distribute IPO transactions both domestically & regionally  Maybank-KE post merger integration planning 4. Realise investment banking synergies between Maybank IB & Kim Eng including quick wins completed & full implementation to follow in 2012 4

The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011….  Additional 19 branches & 136 ATMS to BII’s network 5. Continue asset & network expansion between Jan-Dec 2011 in BII, fix WOM & grow Syariah  Acquisition of minority interest in MSI & pursue banking in Indonesia acquisition of MSI by BII in 2012  Total AUM grew 8.7% on annualised basis  Retained no.1 position in life/family Takaful & general 6. Grow insurance assets under Takaful & largest agency force management & build agency force  Roll out of development programmes to ensure a professional and competent agency force  Roll-out of service improvement programs such as problem resolution initiatives, ATM/CDM uptime performance, cut-down average waiting time, improve 7. Enhance service quality, customer product knowledge among frontline staff experience & satisfaction  Results from external customer engagement surveys indicate continued improvement in service levels  Roll-out of IT transformation programme on track for 8. Implement the Group IT FY2012 (e.g. delivery of Branch Front End and Cash Transformation Management System) 5

The 12-month priorities we set when we announced our FY2010/2011 results Our progress as at December 2011….  Establishment of international client coverage team, including wholesale banking product heads operating in Singapore, Indonesia, Hong Kong & Philippines 9. Complete infrastructure & framework  Planning of regional product initiatives (credit cards, across multiple products & countries wealth management, auto finance, stock broking and money market express.  Core equity ratio as at December 2011 at 9.13% (Group), assuming 85% DRP reinvestment rate 10. Gear-up for Basel III requirement  Mechanisms to manage capital base including placements, divestments and ESOS schemes.  Completed Brand refresh for Maybank Group  Continue to embed the Maybank brand across 11. Brand refresh for the Group business including Maybank KE and BII . 6

Key Performance Indicators for 6-Month FP11 Headline KPIs Target 6-Month FP11 achievements Return on Equity 16% 16.2%* Loans and Debt Securities Growth 12% 16.3%* Other targets Target 6-Month FP11 achievements Group Loans Growth 12% 16.2%* • Malaysia 12% 10.0%* • Singapore 8% 23.7%* • BII 24% 31.2%* Group Deposits Growth 14% 22.5%* Risk Weighted Capital Ratio (RWCR) > 12% 16.4% Note: Loans growth for Singapore and BII are in their local currencies * Annualised growth 7

Investor Presentation Executive Summary Financial Performance Business Review Country Review Economic Update and Prospects Financial Results: 6-Month Financial Period ended 31 December 2011 8

2Q FP11 PATAMI rose 15.2% YoY to RM1.30 billion Quarter RM million 2Q FP11 1Q FP11 QoQ 2Q FY11 YoY Change Change 31 Dec 11 30 Sep 11 31 Dec 10 Net interest income 2,152.7 1,873.6 14.9% 1,813.2 18.7% Net Fund based income (Islamic Banking) 427.0 438.5 -2.6% 329.6 29.5% Total net fund based income 2,579.7 2,312.1 11.6% 2,142.9 20.4% Net income from insurance business* 322.3 96.5 234.0% 41.0 685.5% Non-interest income 1,151.5 1,222.7 -5.8% 1,034.9 11.3% Fee based income (Islamic Banking) 64.7 77.8 -16.8% 63.2 2.3% Total fee-based income 1,538.5 1,397.0 10.1% 1,139.2 35.1% Net income 4,118.2 3,709.1 11.0% 3,282.1 25.5% Overhead expenses (2,054.0) (1,887.9) 8.8% (1,634.1) 25.7% Operating Profit before allowances for losses 2,064.2 1,821.3 13.3% 1,648.0 25.3% on loans Allowance for losses on loans (230.3) (98.7) 133.3% (117.5) 96.0% Impairment losses on securities, net (68.3) 1.0 -6804.8% (6.3) 983.6% Operating Profit 1,765.6 1,723.5 2.4% 1,524.2 15.8% Share of profits in associates 37.7 36.5 3.3% 37.8 -0.2% Profit before taxation and zakat 1,803.4 1,760.0 2.5% 1,562.0 15.5% Taxation & Zakat (432.9) (454.2) -4.7% (435.4) -0.6% Minority Interest (73.8) (19.5) 279.0% (1.4) 5224.0% Profit after Tax and Minority Interest 1,296.7 1,286.4 0.8% 1,125.2 15.2% (PATAMI) EPS (sen) 17.22 17.20 0.1% 15.72 9.5% *net of insurance claims 9