59th

Annual General MeetingPresentation to Shareholders

by Datuk Abdul Farid Alias, Group President & CEO11th April 2019

Humanising Financial Services

111

Maybank continues to grow from strength to strength

…through the collective efforts of all past and present Maybankers

Net Profit

(RM billion)

Profit Before Tax

(RM billion)PPOP

(RM billion)

Net Operating Income

(RM billion)

FY2013

18.54

FY2018

23.63

FY2013

9.61

FY2018

12.42

FY2013

8.87

FY2018

10.90

FY2013

6.55

FY2018

8.11

CAGR:

4.97%

CAGR:

5.26%

CAGR:

4.21%CAGR:

4.37%

Record financial performance in FY2018, with new highs for all

four performance highlights mentioned above.

27.5% 29.2% 23.8%22.9%

222

Arising from our financial strength, we continue

to reward our shareholders

…with a higher dividend

payout

FY2018 MaybankSG

Peer 1

SG

Peer 2

SG

Peer 3

% of Staff Compensation

& Benefits to Revenue24% 22% 27% 24%

% of Dividend Payout to

Revenue27% 23% 19% 22%

FY2018 MaybankMY

Peer 1

MY

Peer 2

MY

Peer 3

% of Staff Compensation

& Benefits to Revenue24% 25% 22% 27%

% of Dividend Payout to

Revenue27% 14% 25% 12%

We offer the BEST shareholder payout among

the top Malaysia and Singapore Banks.

Shareholders are also the top recipient of value

created by Maybank.

4.716.27

CAGR:

5.89%

33.2%

Dividend Payout

(RM billion)

FY2013 FY2018

333

Operating landscape of 2018 caused some revenue headwinds

Macroeconomic

events of 2018Impact to Maybank Group’s Revenue Drivers

• General Election

(GE) in Malaysia Marginal NIM compression of 3bps YoY as a result of liquidity buffer increase

ahead of GE in 1H FY2018

Slower corporate lending growth arising from infrastructure project reviews

by new government

Uplift in some consumer segments due to consumption tax holiday between

June and August

• Rising rate

environment

Weak investment and trading income on continued capital outflow in

emerging markets on rising US rates, with some ASEAN currencies coming

under pressure

Ability to selectively re-price in some segments on rate hikes in home

markets

• Trade war

between US and

China

Cautiousness in investor sentiment and corporate activities

More open economies are susceptible to adverse growth impact from trade

barriers

However, revenue headwinds were mitigated with continued

discipline in cost and asset quality management

444

Net fund based income grew as group gross loans

expanded 4.8%, contributed by the home markets…

…while lower net fee based income was due to a decline

in investment and trading income given weak equity

markets…

…and continued with disciplined cost management, yielding

lower overhead expenses.

…while net impairments losses reduced mainly on slower

new impaired loans formation, enabling…

…a record net profit of RM8.1 billion and ROE of 11.4%.

The strong performance also contributed to an EPS of

74.2 sen.

Net Fund Based Income

RM17.1b, +3.1%

Net Fee Based Income

RM6.5b, -1.8%

Net Operating Income

RM23.6b, +1.7%

Overhead Expenses

RM11.2b, -1.0%

Net Impairment Losses

RM1.6b, -20.5%

Net Profit

RM8.1b, +7.9%

Earnings per Share (EPS)

74.2 sen, +3.0%

However, we still achieved a new net operating income

record…

PPOP

RM12.4b, +4.2%As a result, Pre-Provisioning Operating Profit hit a new

high of RM12.4 billion…

Our combined efforts supported our FY2018 performance

555

Continued cost discipline

48.9% 48.2% 47.1% 48.6% 47.4%

Cost-to-income Ratio

…in an operating environment where revenue pressures were felt,

resulted in cost-to-income ratio improving to 47.4% and a positive

JAWs of 2.7%. Personnel expenses growth was contained at 5.2%.

Personnel Expenses

FY2016

5,639

FY2017

6,128

FY2018

6,450

RM

million

FY2014

5,019

FY2015

5,765

5.2%

666

Sustained robust liquidity risk indicators

Liquidity Risk Indicators

Dec 2017 Mar 2018 Jun 2018 Sep 2018 Dec 2018

133.1%

153.3%144.9%

130.5% 132.4%

93.4% 92.5% 92.8% 94.4%92.7%

85.8% 85.7% 86.3% 87.5% 86.2%

75.4% 75.3% 76.0% 77.3% 76.1%

LCR LDR LTF LTFE

…through our prudent risk management practices. We prioritised liquidity

strength so that we may serve our clients under any circumstance.

777

FY2017

11,550

Moderating asset quality trends

Allowances for losses on loans

FY2016

2,833

FY2017

1,959

FY2018

1,591

Gross impaired loans (GIL) & GIL Ratio (%)

2.28% 2.34% 2.41%

RM

million

RM

million

GIL Ratio

Gross Impaired Loans-30.8%

-18.8%

…with a decrease in loan loss allowances, due to lower new impaired loan

formation as well as higher recoveries and write-offs.

-23.5%-13.3%

FY2016

11,055

FY2018

12,486

9,2927,105

6,163Newly

Impaired

Loans

888

Improved ROE and EPS performance

ROE (%) & EPS (Sen)

13.8% 12.2% 10.6% 10.9% 11.4%

FY2014

74.2

FY2015

72.0

FY2016

67.8

FY2017

72.0

FY2018

74.2

Earnings per Share

Return on Equity

…through our strong financial performance, despite a higher equity base

to comply with regulatory requirements and to maintain capital strength.

999

Highlights of 2018

The MSL incorporation

solidifies our commitment

to Singapore

Maybank is a Top 500 Global Brand

Among one of eight ASEAN brands

to make the list

We cemented our foothold in Singapore by locally

incorporating Maybank Singapore Limited (MSL),

which now houses our Singapore Community Financial

Services business effective 5 November 2018.

We are the first Malaysian bank to break into the

Global 500 Brands list by Brand Finance, with a brand

value of USD4.2 billion.

Key Awards in 2018

• We were awarded ‘Bank

of the Year in Malaysia’

in 2018 by The Banker

• We won two awards in

TalentCorp’s LIFE AT

WORK Awards 2018 for

‘Best Malaysian

Organisation’ and ‘CEO

Champion for Malaysian

Organisation’

• We ranked among the ‘Top 50

ASEAN PLCs’ as part of the ‘2nd

ASEAN Corporate Governance

Awards’ organised by MSWG

Maybank Risk Academy

Launched to future-proof our

Risk professionals

Set up to build internal risk expertise in order to

equip the organisation with FutureReady, agile and

risk-aware professionals

101010

*Credit, Asset & Risk Management Engine

Maybank’s digital focus areas

“The Best

Online

Customer

Experience”

“Advanced

Asset &

Liability

Management”

“Future-Ready, Speed &

Anytime/Anywhere Availability”

EXPERIENCE

“i.e.: M2U”

TRUST

“CARisMa*”

SECURITY

“CORE”

DATA

111111

DIGITAL TRANSFORMATION

Maximise Digital Engagements

Partner Industry Disruptors

Engage and Foster Fintechs

Deploy Digital Initiatives Across ASEAN

Retune Business Models

Lead Digital Innovations

Redefine Physical Presence

Upskill Workforce On Digital Needs

Automate High Volume TasksEXT

ER

NA

LIN

TER

NA

L

PRINCIPLES

Digital Bank

Of Choice

PLACE CUSTOMER

PREFERENCES FIRST

Principle led digital transformation

121212

Launched QRPayReimagined

Maybank2uGrab Partnership

Implemented

E-CLEVALaunched MAE

A cashless payment

solution using QR

codes, the first by a

bank in Malaysia

A complete change of

user interface based on

feedback from

customers, offering a

personalised and

simplified online

banking experience

Formed a strategic

partnership with Grab

to drive the

acceptance and usage

of cashless payment

A real-time video

assisted claims care

system for motor and

fire insurance, allowing

claims to be processed

via video calls within

15 minutes

A lifestyle-themed

e-wallet, available to

anyone above 12 years

of age without the

need to have a pre-

existing Maybank

account

Digital Achievements in 2018-2019

Digital Highlights 2018-2019

We launched the refreshed

Maybank2u desktop

website, aimed at

delivering an intuitive,

personalised and seamless

customer experience, with

faster turnaround time.

131313

We introduced our FutureReady Digital Upskilling Programme to increase employees’ digital

literacy in line with the Group’s aspiration to be The Digital Bank of Choice.

The Programme’s comprehensive curricular is delivered through the following approaches::

FutureReady Digital Upskilling Programme

Maybank’s Group leadership bench (Board of Directors and EXCO members included) invested

over 500 man-days in intensive classroom learning sessions, learning new skills such as coding

and algorithms programming, and how these skills can be developed in-house.

Strategy, Artificial Intelligence and Machine Learning

Digital Highlights 2018-2019

FutureReady MindsetFutureReady Knowledge & Skills

Digital Immersion Programme

FutureReady Labs:• Leadership Role Modelling

• Enabling Culture

• Practice & Habit

Upskilling on six digital skill areas via:• E-Learning

• Classroom programmes

• Action Learning Projects

141414

• Determine the optimal balance sheet structure for the Group

• Centralise all sources of funds across the Group

• Determine the right pricing for the Group’s liabilities and assets to maximise risk-returns

• Determine the optimal portfolio for each component of the balance sheet

• Allocate capital accordingly based on the optimal portfolio

• Match liabilities to assets to close liquidity gaps

Digital Highlights 2018-2019

Key Features Outcomes

LAYER 1

Data Architecture

and Infrastructure

Universal Data Lake

Group-wide centralised data repository

Group-wide standard data dictionary

Enhanced data timeliness – improve service level agreement

LAYER 2

Risk–Returns

Measurement

and Analytics

Credit Proposal

Simplification

New application for accommodation (AA) format for an effective credit

decision

Re-engineered end-to-end credit process

Comprehensive portfolio allocation strategy

Well defined account strategy and pre allocate customer risk appetite

LAYER 3

Optimisation

Analytics

Balance Sheet

Management

Detailed profit and loss attribution

Improve ROE and sustainable dividend payment

Allow distribution of the bank’s assets effectively

A more comprehensive wealth management solution for customers

Group Chief Risk

Officer’s Letter

Develop a composite outlook (economic, financial, regulatory and

technology landscape)

Forward looking insights from functional risk teams

Enhancement through info/data gap identification

Facilitate development of Central Economic Scenario

CARisMa

151515

We strengthened the Executive Committee with internal talents

…filling the vacancies left by two Maybank veterans

MICHAEL FOONG SEONG YEW

Group Chief Strategy Officer

took on an expanded role as

CEO, International

on 1 June 2018

DATO’ JOHN CHONG ENG CHUAN

Group CEO, Community

Financial Services

Appointed on 1 October 2018

NEW APPOINTMENTSRETIRED

DATUK LIM HONG TAT

Group CEO, Community

Financial Services

Retired on 18 July 2018

POLLIE SIM

CEO, International

Retired on 1 June 2018

161616

Our continued priorities

Liquidity and

Capital Strength

Sustainable

Growth

Agility and

Nimbleness

Sense of Purpose

Looking Out for

the Underserved

Maintain sufficient liquidity to meet

obligations and capital to absorb

potential losses or systemic shocks

Fluid and unpredictable operating

landscape forces us to react

promptly or risk becoming obsolete

Find ways to make financial solutions

accessible to them

Treat all our stakeholders fairly, provide

advice based on their needs and capacity,

and simplify financial solutions.

Look at protecting margins as well as

pricing credits and liabilities correctly

171717

Our priorities in FY2019

Driving positive JAWs across business segments

Managed Group cost growth with CIR ~47%

Continued emphasis on employee up-skilling for digital economy

Expand revenue streams through cross business collaborations

Measured balance sheet expansion in line with economic growth of home markets and Group’s

conservative risk posture

Group ROE guidance of ~11.0%

Income Growth

Disciplined asset quality management and maintain ongoing recovery efforts

Maintain stable liquidity risk indicators ahead of NSFR adoption in 2020

Maintain robust capital positions, while rewarding shareholders with strong effective cash dividend payout

Conservative investment spend focused on improving customer experience with rollout of product/services

Enhancing data driven analytics

Digitalisation

Liquidity and Capital Management

Asset Quality Management

Better Productivity

1

2

3

4

5

181818

Thank you to all shareholders and stakeholders

for your continuous support

Humanising Financial Services

58

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.

Humanising Financial Services