humanising financial services across asia · the above industry figure includes commercial banks...

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Invest Malaysia 2014 Mandarin Oriental, Kuala Lumpur

9-10 June 2014

www.maybank.com

Humanising Financial Services Across Asia

1

Invest Malaysia 2014

Shareholder Return and Performance

Maybank: Becoming a Regional Financial Services Leader

Maybank: A Leading Malaysian Bank

FY2014 Strategic Priorities

Appendix: 1Q FY2014 Financial Results

2

Maybank maintains its leadership position domestically We are the most valuable company listed on Bursa Malaysia

■ 402 branches, 2,910 ATMs with more than

12 million customers

■ No.1 Internet banking with 34% market share

■ No. 1 bank in Malaysia: Conventional and Islamic

■ One of the Top 5 banks in ASEAN

■ No. 95 in The Banker’s Top 1000 World Banks

■ Most Valuable Company on Bursa Malaysia

■ Presence in 10 ASEAN countries

■ 5 International Financial Centres

■ Over 2,400 branches and offices in 20

countries, serving more than 22 million

customers

■ Diversified across all financial products

and services

■ No. 1 in overall market share for Loans,

Deposits, Cards, Unit Trust Loans

Leadership Position

Strong Financial Position

Emerging Regional Leader

Largest banking network in Malaysia

Strong shareholders and credit ratings

Leading domestic market position

■ 48% owned by PNB and its funds,

and 13% by EPF

■ Foreign shareholding 22%

■ Strong credit ratings on par with sovereign

1 As at 31 Mar 2014

2 As at 30 May 2014

■ Total Assets 1 : MYR 578 billion

■ Total Equity 1 : MYR 50.0 billion

■ PATAMI 1 : MYR 1.60 billion

■ Market Cap. 2 : MYR 87.7 billion

3

Largest Financial Services Group in Malaysia Maybank is the leading provider of consumer, SME and corporate banking services, as well as insurance and takaful

products

Community

Financial Services

Busi

ness

Segm

ent

• Services the Group’s

Consumer, SME and

commercial/business

banking clients

• Leading distribution

network (physical and

virtual) providing

shared distribution

network for the Group

in Malaysia.

• Supported by Maybank

Islamic, the largest

Islamic banking

operator in Malaysia.

• Offers both general and

life insurance and asset

management services.

• No .1 market position

in general insurance

and No.4 in Life/Family

(new business)

• In support of Etiqa’s

goal to humanise all

customer interaction,

we have registered a

contract resolution

rate of 93%.

• Services the Group’s

corporate clients under

one single global

relationship by offering

corporate banking,

advisory and trade and

cash management

products.

• Maybank-IB has a Top 2

position in Malaysia in

debt and equity capital

markets and M&A.

• Operates in 20

countries of which 10

are in ASEAN. Other

strategic markets

include China, the UK

and US.

• Although international

business is largely

wholesale, the Group is

active in consumer

business in our home

markets of Singapore

and Indonesia, as well

as in Philippines and

Cambodia.

Desc

ripti

on

% o

f

FY13

PBT *

32.1%

8.0%

34.6%

25.3%

Insurance and

Takaful Global Banking

International

Banking

*Before elimination of Group head office cost of RM1,163.9 million

4

Maybank’s Success is Anchored on Five Strategic Objectives We continue to make progress in our key business pillars

Strategic Objective 1: Undisputed No. 1 Retail Financial Services provider in

Malaysia by 2015

Strategic Objective 2: Leading ASEAN wholesale bank eventually expanding to

Middle East, China & India

Strategic Objective 3: Undisputed Insurance & Takaful Leader in Malaysia and

Emerging Regional Player

Strategic Objective 4: Truly regional organisation with approximately 40% of

pre-tax profit derived from international operations by 2015

Strategic Objective 5: Global leader in Islamic Finance

5

Market Leadership in Malaysia (1/4) Maybank maintains a strong position in the retail segment

* Refers to Housing & Shophouse Loans

# The above market share for Cards refers to Receivables. In terms of Cardbase, Billings and Merchant Sales, Maybank is ranked No. 1.

^ MBB ranking as at Dec’13

The above industry figure includes commercial banks and Non-Financial Institutions

Source: Bank Negara Malaysia Monthly Bulletin

Q4’11 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13 Q1’14

Q1’14

vs

Q1’13

MBB

Rank^

Deposits

Total Deposits 17.4% 17.1% 16.8% 17.7% 17.7% 18.5% 18.2% 1

Total Core Retail Deposits 18.1% 18.3% 18.3% 18.3% 18.7% 19.0% 19.0% 2

Retail CASA 23.3% 23.6% 23.3% 23.1% 23.9% 24.8% 24.7% 1

Retail Savings 28.1% 28.2% 28.19% 28.0% 27.5% 29.8% 29.9% 1

Retail Fixed Deposits (FD) 15.1% 15.2% 15.3% 15.4% 15.6% 15.7% 15.7% 2

Loans

Total Consumer/Household 16.4% 17.0% 17.1% 17.1% 17.1% 17.2% 17.2% 2

Auto (Purchase of transport vehicles) 19.2% 20.2% 20.3% 20.5% 21.0% 21.5% 21.9% 2

Total Mortgage* 13.2% 13.4% 13.3% 13.3% 13.2% 13.1% 13.0% 2

Credit Cards # 15.3% 15.2% 15.3% 15.4% 15.3% 15.1% 15.1% 2

Unit Trust 63.9% 60.2% 58.5% 57.6% 56.8% 55.8% 54.5% 1

Q4’11 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13

Q4’13

Vs

Q3’13

MBB

Rank^

Internet Banking – 3 months Active Users 35.68% 34.1% 34.1% 34.0% 34.31% 33.94% 1

Mobile Banking – 1 month Active Users 87.0% 80.5% 75.7% 76.7% 75.43 75.35% 1

Branch Network 19.0% 19.0% N/A 20.0% 23.0% 20.0% 1

Maybank remains the market leader in 1Q 2014

6

Market Leadership in Malaysia (2/4) Global Banking continues to participate in notable deals

NOTABLE DEALS COMPLETED FROM JAN – DEC 2013

Sukuk

Sole Principal Adviser,

Lead Arranger, Lead

Manager, Facility Agent,

Shariah Adviser, Trustee

& Security Agent

RM 5.8 billion

January 2013

Malaysia

Malakoff Power Bhd

Multi-Currency Sukuk

Issuance Programme Joint Principal Adviser,

Joint Lead Arranger, Joint

Lead Manager, Dealer,

Bursa Listing Agent & Joint

Shariah Adviser

USD 1.5 billion

January 2013

Malaysia

Sime Darby Global Berhad

IPO

Joint Global Coordinator,

Joint Bookrunner, Joint

Managing Underwriter and

Joint Underwriter

RM 1.14 billion

July 2013

Malaysia

AirAsia X Berhad

IPO

Joint Global Coordinator,

Joint Bookrunner & Joint

Lead Manager

PHP 18 billion

November 2013

Philippines

Travellers International

Hotel Group Inc

Syndicated Loan

Mandated Lead Arranger

& Bookrunner

USD250 million

October 2013

Vietnam

Vingroup

Syndicated Tl/RC/BG

Facilities

Joint Mandated Lead

Arranger & Lender

GBP790.2 million

October 2013

Malaysia

Battersea Project Holding

Co Ltd & Battersea

Project Phase 1 Holding

Co Ltd

Share Placement

Co-Lead Manager

IDR 14.6 trillion

March 2013

Indonesia

PT Matahari

Departmental Store

Tbk

Syndicated Term

Loan and Revolving

Credit Facility


USD 1.5 billion

September 2013

Hong Kong

Huawei Tech Investment

Co Ltd

Syndicated Revolving

Credit Loan


and Bookrunner

USD 1.5 billion

April 2013

Philippines

San Miguel Corporation

Multicurrency

Islamic Trust

Certificate Issuance

Programme

Programme Sole Lead

Arranger, Bookrunner,

Global Coordinator

USD 500 million

August 2013

Singapore

Swiber Holdings Ltd

Top deals secured across the region for FY2013

Up to RM5 billion

Mar 2014

SUKUK MURABAHAH

Joint Lead Arranger

Joint Lead Manager

Joint Shariah Adviser

RM2 billion

Mar 2014

SYNDICATED BRIDGE

FACILITY


USD750 million

Mar 2014

MULTI-CURRENCY

FACILITIES CLUB DEAL Joint Coordinating Bank


Facility & Security Agent

RM16.5 billion

Mar 2014

SUKUK Joint Principal Adviser

Joint Lead Arranger

Joint Lead Manager

Joint Bookrunner

Up to RM2 billion

Mar 2014

SYNDICATED

REVOLVING LOAN Mandated Lead Arranger

Bookrunner

USD2.49 billion

Mar 2014

Malaysia Malaysia

Singapore Malaysia

Malaysia

Singapore

SUKUK MURABAHAH Joint Lead Arranger

Joint Lead Manager

Facility Agent

Shariah Adviser

SapuraKencana TMC Sdn Bhd

Perbadanan Tabung

Pendidikan Tinggi Nasional

Wii Pte Ltd

Bumitama Agri Ltd

Syarikat Prasarana

Negara Berhad

Armada Karen Pte Ltd

Notable deals secured in the 1Q FY2014

http://www.google.com/url?q=http://mobile.theasset.com/inside.php?tid=25460&sa=U&ei=Ph_NUqq0GYemrQeVlIGABg&ved=0CCwQ9QEwAQ&usg=AFQjCNE1ugPLL4SKFZI0n2xuUF8gq4uFOg

7

Market Leadership in Malaysia (3/4) Top two player in M&A, equity and debt capital markets

Maybank Investment Bank (Malaysia): Industry Position & Market Share

FY2013

Industry

Rank by

Value

Market Share

(%)

Total Value

(RM bil)

Deals/ Issues

(Number)

Merger & Acquisitions1 2 20.7% 12.83 16

Equity Capital Markets1 2 20.1% 3.48 9

Debt Capital Markets1

(includes loan syndication) 2 15.2% 19.34 61

Debt Markets – Malaysia

Ringgit Islamic Bonds² 2 19.1% 9.33 130

Equity Brokerage League

Table³ 4 7.8% 81.96 N/A

1 Source: Dealogic

²Source: Bloomberg ³Source: Bursa Malaysia

Exchange rate used as at 31 Dec 2013 (BNM)

8

Life / Family (New Business) Market Share

General Insurance and Takaful Market Share

No. 4 in Life/Family

(New Business)

No. 1 in General

Insurance and

Takaful

* Market Share is for period Jan’13 – Dec’13 (Source: LIAM / ISM Statistics)

13.2%

14.0%

14.6%

17.5%

0.0% 5.0% 10.0% 15.0% 20.0%

Etiqa Ins. & Tak.

Prudential Ins. & Tak.

GE Ins. & Tak.

AIA Ins. & Tak.

9.5%

11.0%

12.4%

0.0% 5.0% 10.0% 15.0%

AmGeneral Insurance

Allianz Insurance

Etiqa Ins. & Tak.

Maybank Islamic Contributed 40.3% to Maybank

Domestic Financing as at end March 2014

Year Contribution

Dec

2012 31.0%

Dec

2013 38.9%

Mar

2014 40.3%

Maybank Islamic, 40.3%

Maybank Conventional

Domestic, 59.7%

26.2% 26.8%28.1%

28.9%30.6% 30.7%

23.2% 22.5% 22.1% 22.5%23.8% 24.1%

15.0%

20.0%

25.0%

30.0%

35.0%

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14

Financing Deposit

Maybank Islamic Market Share (Malaysia)

Market Leadership in Malaysia (4/4) Insurance and takaful as well as Islamic portfolios chart steady growth

9

Investment to Uphold Malaysia’s Domestic Demand Growth Selective growth in Maybank’s business banking and corporate loans on the back of ETP related investments

Source: PETRONAS

16.6

13.1

21.7

26.6

13.9

11.6

18.1

2011 2012 2013 2014E

Targets Realised

RM

billion

Malaysia: Realised and Targeted Annual Investments

under the Economic Transformation Programme (ETP)

Pemandu set to target RM26.6 billion

ETP investments in 2014 Potential areas for growth:

Infrastructure Projects (i.e.: Klang

Valley Mass Rapid Transit)

Oil & Gas (i.e.: Pengerang

Integrated Complex)

Government Land Development

Heavy Manufacturing Industries

1

2

3

4

10







11

Malaysia is a key driver for growth in ASEAN As the largest listed financial institution in Malaysia with a strong network in ASEAN, Maybank is well positioned

Malaysia is the 3rd best emerging market in the world, behind

China and South Korea

Malaysia ranked 6th globally as the world’s most conducive

location for business

Banking has been earmarked as a key sector that will spur

growth in ASEAN and drive us towards developed market status

Maybank Kim Eng is one of ASEAN’s top five investment banks

Maybank is the third largest bank by market capitalisation in

South East Asia

1

2

3

4

5

12

Benchmarking Against Regional Banks Maybank is a Top 4 ASEAN banking group in terms of assets but third in terms of market capitalisation

Total Assets (USD bil): 31 Mar 2014 Loans and Deposits (USD bil): 31 Mar 2014

PATAMI (USD mil): 4 Quarters to 31 Mar 2014 Market Capitalisation (USD bil): 30 May 2014

13

BANK

MARKET CAP

@

30 May 14

(USD Bil)

TOTAL

ASSETS

@

31 Mar 14

(USD Bil)

MA

LA

YSIA

SIN

GA

PO

RE

IND

ON

ESIA

TH

AIL

AN

D

PH

ILIP

PIN

ES

BR

UN

EI

VIE

TN

AM

CA

MBO

DIA

LA

OS

MY

AN

MA

R

1 DBS 32.95 333

2 UOB 28.38 235

3 Maybank 27.27 177

4 OCBC 26.70 273

5 Public 23.52 96

6 BCA 22.75 44

7 Mandiri 20.34 64

8 CIMB 19.02 117

9 SCB 16.43 78

10 Bangkok 10.75 80

11 BDO 7.22 37

12 Metrobank 5.23 31

Universal

Banking

Retail &

Commercial

Banking

Investment

Banking

Affiliate/Representative

Office

ASEAN Footprint Maybank is present in all ten ASEAN countries, making it a truly ASEAN franchise

14

PBT Contribution by Market

3.1% 5.2%

3.2%

8.0% 5.6%

20.2% 19.1% 20.6%

22.2% 24.7%

23.3% 24.2% 23.8%

30.2% 30.3%

FY2010 FY2011 CY2011 FY2012 FY2013

TotalInternational(ASEAN &Others)

ASEAN ex-Malaysia

Others

Maybank’s International PBT has continued to grow yearly International PBT accounted for 30.3% of Group PBT for FY2013

15

Maybank has made strides in its regional initiatives Our regional platforms and products are aimed at enhancing our customer experience

Global Banking

Maybank Islamic

International

Implemented regional electronic platforms for Cash Management and Trade

Finance.

Rolled out straight through processing of the Global Treasury Risk

Management System.

Maybank Kim Eng solidified itself as a premier investment bank and

stockbroker in ASEAN

Continued growth in cross-border deals (i.e.: Islamic mortgage in pound

sterling).

Innovative product offering in Singapore (i.e.: home financing and

commercial and industry property financing for Malaysian properties and

auto financing)

Arranged the first wakala sukuk structure and the largest Singapore dollar

sukuk issuance.

Excluding Singapore and Indonesia, the other international markets

accounted for 8.8% of Group PBT for FY2013.

This contribution grew to 15.1% of Group PBT for 1Q FY2014 due to growth

from our offshore operations, Indochina and Greater China.

Community Financial Services

Rollout of Regional Wealth Management and Premier Wealth to capture

increasing share of affluent customers

Emphasis on high impact cross-region initiatives (e.g.: cards, virtual

banking)

16







17

0.69

3.82 4.45

2.58

5.75 6.55

1.60

2.67#

FY 2009* FY 2010 FY 2011 6 months FP2011 ^ FY 2012 FY 2013 1Q FY 2014

Net Profit

3.1%

14.5% 15.2% 16.2% 16.0%

15.1% 13.8%

ROE (%)

RM 6 billion

Rights Issue

Launched

House of

Maybank

Acquired

Kim Eng

RM 3.66 billion

Equity Private

Placement

Delivering on Shareholder Return Maybank has seen a steady rise in earnings and through prudent cost management

Summary of Analysts' Recommendations as at 30 May 2014

Target Price RM10.99

Coverage 25 analysts

Recommendations 17 Buy, 6 Hold, 2 Sell

Analysts'

Consensus: Net Profit (RM mil)

FY2014 6,798.6

* FY2009: Lower net profit due to impairment of investment in BII and MCB

# RM2.67 billion: FY2009 PATAMI before impairment of investment in BII and MCB

^ 6 months Financial Period ended 31 Dec 2011 due change in financial year end.

FY2013 PATAMI of RM6.55

billion was 4.5% ahead of

consensus

YTD 1Q FY2014

ROE Performance

18

Long Term Dividend Yield of Regional Banks Maybank provides superior dividend yield amongst most regional banks

0 2 4 6 8 10 12

2007

2008

2009

2010

2011

2012

2013 Bangkok Bank

Kasikorn Bank

Siam Commercial

Bank Rakyat

BCA

Mandiri

OCBC

UOB

DBS

CIMB

Public Bank

Maybank

Annual Dividend Yield 2007-2013

Source: Bloomberg

19

Key Operating Ratios: ROE, NIM, Loan to Deposit ratio and Cost to Income ratio Maintaining good performance amidst challenging environment

17.6

15.2

3.1

14.5 14.5 15.2 16.0

15.1 13.8

FY07 FY08 FY09 FY10 FY11 PF11 FY12 FY13 1QFY14

Return on Equity E (%)

2.80

2.70 2.72

2.80

2.56 2.53

2.48 2.43

2.37

FY07 FY08 FY09 FY10 FY11 PF11 FY12 FY13 1Q…

Net Interest Margin (%)

86.1

88.0

87.6 86.9

90.2

87.8

89.8 89.9

91.0


Loan to Deposit Ratio (%)

42.8

44.4

52.2

46.5

49.2 49.7 48.6

47.8 48.6


Cost to Income ratio (%)

15.0

target

90.0

threshold

50.0

threshold

2.33

target

20

Key Operating Ratios: NIL, Loan Loss Coverage and Capital Ratios Improving asset quality and strong capital adequacy

3.00

1.90

1.60

1.22

2.25

1.86

1.09 0.95 0.99


Net NPL / Net Impaired Loans Ratio (%)

80.3

101.1

112.9

124.5 82.3 86.9

105.6 107.5 107.2


Loan Loss Coverage (%)

9.0 10.1

10.8 10.6

11.5 11.4

13.2

11.3 11.0


Core Capital Ratio / CET1 (%)

13.7 12.7

14.8 14.2

15.1 16.1 17.0

15.7 15.3


Risk Weighted Capital Ratio / Total Capital Ratio (%)

21

Loans and Deposits: Growth and Market Share Double digit loans and deposits growth and sustainable market share

Group Loans and Deposits Growth

Domestic Market Share (%)

7.2

16.9

13.1 10.5

23.9

25.1

12.9 14.0 13.9

20.1

14.3

13.6 11.4 19.4

26.4

10.3 14.0

11.3


Loans Growth

Deposits Growth

30.6 28.0

26.6 27.7 27.9 27.6 27.7 27.7 27.0

21.4 21.5 21.3 20.5 20.7 19.5 20.2

20.4 19.0

19.6 18.1 17.8

17.6 18.1 17.9 18.2

18.4 17.2


Deposits(Savings)

Deposits(Currentaccount)

Loans

22







23

Maybank Group Management Team Embedding business and functional capabilities across the region

Country Head,

Singapore

Datuk Lim Hong

Tat

Country Head,

Indonesia

Taswin Zakaria*

Country Head,

Malaysia

Datuk Abdul

Farid Alias

24

FY2014 Group Strategic Priorities The Group continues to expand on its platform to regionalise its operations

Business

Portfolio

Productivity &

Effectiveness

Regionalisation

Yield

1 2 3 4

Leadership in

profitable

segments

domestically

Enhance our

Singapore business

model

Continue

transformational

priorities of BII

Expansion of

Philippines &

Greater China

cluster

Transition to a

regional matrix

model

Become Top 3 in

productivity

Entrench process

improvement in all

areas

Optimise product

lines

Streamline

businesses

Ramp up our key

businesses across

the region (e.g.

RSME, Insurance,

Investment

Banking,

Transaction

Banking, Global

Markets)

Further embed

customer

segementisation

strategies

Optimise capital in

every sector

Focus on higher

quality assets

Enforce risk-based

pricing across key

products and

segments

Optimise asset

yields

Emphasise total

income growth

(CASA, fee-based

income, cross-sell

advisory products).

25







26

Overview Broader trends in the Malaysian market

Stable YoY economic growth but softer QoQ trends

Moderating consumer spend trend continues

But mitigated by some pick up in external demand and trade

QoQ loans growth in Malaysia moderated,

more apparent in non-household segments

Contracting deposit growth,

more apparent in demand deposits & FD deposits

1

Weaker capital market activity in Malaysia and the region

2

3

4

5

6

27

Overview (1/2) Group net profit for 1Q FY2014 rose 6.3% YoY to RM1.60 billion

On a YTD annualised basis:

Malaysia was down by 0.7% due to contraction in loans for Business

Banking and corporate since end-Dec but mitigated by growth in

consumer and retail SME

Singapore grew by 5.1% due to positive growth in commercial and

consumer

Indonesia contracted by 1.3% as non-consumer loans growth declined

but mitigated by robust growth in consumer

Overall international loans growth remains strong at 15.3%

Net Profit growth of 6.3% YoY,

ROE at 13.8%

Net income growth of 2.4%

Higher YoY growth for all loan

segments, but slower YTD growth

Contributed by:

Net income growth at 2.4% YoY, supported by higher growth in fund-

based income of 7.6% but offset by slower fee income growth

Marginal growth in overheads YoY at +0.5%

Offset by:

Uptick in provisioning costs

Driven by:

Higher net fund based income at 7.6% YoY, on the back of 13.9% YoY

Group loans growth as Islamic Banking loans grew 36.8%

Fee-based income contracted 8.3% YoY due to a decline in

investment banking and treasury activities

28

Overview (2/2) Lower YoY GIL but slight uptick QoQ due to specific accounts

Group GIL lower YoY, but QoQ rise

related to specific accounts

Due to:

Uptick in provisioning for Malaysia but GIL of 1.77% lower than

2.21% a year ago

Rise in Indonesia GIL to 2.98% from 1.96% a year ago was

attributable to asset quality deterioration in several accounts

Higher YoY deposit growth for all

key markets but flat YTD Group

growth

On an annualised basis:

Domestic fixed deposit, savings accounts and current account

for individual portfolio recorded growth but offset by

contraction in deposit balances for non-individuals

Strong capital position Assuming an 85% DRP reinvestment rate:

Group total capital at 15.11% and CET1 at 10.76% as at 31

March 2014

29

FY2014 Group Targets Group will focus on picking up momentum in coming quarters

Key Performance

Indicators

FY2014

Targets

Maybank

Achievement

(1Q FY14)*

Maybank

Achievement

(YoY)

Industry

Average

(YoY)

Peer

Average

(YoY)

Headline KPI

Return on Equity* 15.0% 13.8% - - -

Other targets

Group Loans Growth 13.0% 5.3% 13.9% - 14.1%

• Malaysia 12.0% (0.7)% 10.3% 10.1% 8.3%

• Singapore# 13.0% 5.1% 13.1% 13.5% 26.3%

• Indonesia# 17.0%-

20.0% (1.3)% 27.8% 19.1% 17.7%

Group Deposits Growth 13.0% 0.0% 11.3% - 10.7%

* annualised

# in local currency terms

• Peer comparisons are computed for selected banks

30

1Q FY2014 P&L Summary Net Profit increased 6.3% YoY, led by higher net fund based income and managed overheads growth

RM million 1Q FY14 1Q FY13 YoY 4Q FY13 QoQ

Net interest income 2,392.8 2,427.4 (1.4)% 2,383.5 0.4%

Net Fund based income (Islamic Banking) 731.5 475.3 53.9% 705.4 3.7%

Net Fund Based income 3,124.3 2,902.7 7.6% 3,088.9 1.1%

Non-interest income 1,232.1 1,364.2 (9.7)% 1,327.4 (7.2)%

Fee based income (Islamic Banking) 76.9 144.0 (46.6)% 84.4 (8.9)%

Net income from insurance business 1.8 (78.1) 102.3% 184.7 (99.0)%

Net Fee Based income 1,310.8 1,430.1 (8.3)% 1,596.5 (17.9)%

Net income 4,435.1 4,332.8 2.4% 4,685.4 (5.3)%

Overhead expenses (2,168.4) (2,158.0) (0.5)% (2,334.2) 7.1%

Operating profit before impairment losses 2,266.7 2,174.8 4.2% 2,351.2 (3.6)%

Impairment losses (95.4) (83.6) (14.2)% (67.3) (41.9)%

Operating profit 2,171.3 2,091.3 3.8% 2,283.9 (4.9)%

Share of profits in associates 36.5 35.5 2.9% 17.7 106.5%

Profit before taxation and zakat 2,207.8 2,126.7 3.8% 2,301.6 (4.1)%

Profit attributable to equity holders (Net Profit*) 1,601.6 1,506.2 6.3% 1,732.1 (7.5)%

EPS - Basic (sen) 18.1 17.9 1.2% 19.6 (7.6)%

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

31

63.4% 16.4%

14.4%

5.8%

RM4.33b

61.3% 22.8%

8.1% 7.8%

RM366.6b

68.1%

12.8%

4.0%

15.1%

Malaysia Singapore Indonesia Others

RM2.21b

Overseas:

38.7%

1Q FY13

Net Income Profit Before Tax

1Q FY14

Overseas:

35.2%

Overseas:

36.6%

Overseas:

30.9%

Overseas:

31.9%

Gross loans*

Overseas:

36.8%

(Jan 13 – Mar 13)

(Jan 14 – Mar 14)

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

64.8%

15.3%

12.2%

7.7%

RM4.44b

69.1%

15.4%

6.3% 9.2%

RM2.13b

63.2%

22.3%

8.0% 6.5%

RM322.0b

Overseas & Domestic Portfolio Mix 1Q FY2014 Overseas PBT contribution grew to 32%, from 31% in the corresponding period in 2013

32

4,333

1,740

553 427 395

1,320

356

4,435

1,785

552 419 251

1,391

333

Total CommunityFinancial Services

Corporate Banking Global Markets Investment Banking InternationalBanking

Insurance, Takaful &Asset Management

1Q FY2013 1Q FY2014

2.6% -0.1% -1.9%

Global Banking (GB)

2.4%

-36.4% 5.4%

-11.1%

-6.3%

Business Segment Performance 1Q FY2014 (1/2) Net income rose 2.4% YoY driven by growth in international banking and CFS

Net

Inco

me

(R

M m

illio

n)

Op

erat

ing

Pro

fit

bef

ore

Im

pai

rmen

t Lo

sse

s (R

M m

illio

n)

2,175

860

454 368 139

623

188

2,267

891

425 360

28

694

166

Total Community FinancialServices



1Q FY2013 1Q FY2014

3.5% -6.4% -2.1%

Global Banking (GB)

4.2%

-80.1% 11.4% -11.8%

-15.4%

Note: Net income & operating profit before impairment losses for group includes expenditures of Head Office & Others of RM457.5 million

for 1Q ended 31 Mar 2013 and RM296.5 million for 1Q ended 31 Mar 2014.

33

Global Banking (GB) 2,903

1,339

400 173 57

947

227

3,124

1,371

385 180

40

994

229

Total CommunityFinancial Services


Insurance, Takaful& Asset

Management

1Q FY2013 1Q FY2014

2.4% -28.8% -3.7% 4.2% 5.0%

7.6%

-3.8%

1.1%

1,430

401 153 254 339 373

129

1,311

414 167 239 211

397 104

Total Community FinancialServices



1Q FY2013 1Q FY2014-8.3%

-37.7% -19.5% -6.1% 9.2% 3.3%

Global Banking (GB) -17.3%

6.5%

Business Segment Performance 1Q FY2014 (2/2) Group registered higher net fund based income of 7.6% due to growth in international banking and CFS

RM

mill

ion

R

M m

illio

n

Fee-based Income declined by 8.3%

Net Fund Based Income rose 7.6%

Note: Net fund based income includes expenditures of Head Office & Others of RM238.4 million for 1Q FY13 and RM74.7 million for 1Q FY14.

Fee-based income includes expenditures of Head Office & Others of RM219.0 million for 1Q FY13 and RM221.8 million for 1Q FY14

34

1,364

860

455

-86 57 79

-78

144

1,232

785

279

-97

228

37 2

77

Total non-interestincome

Commission,service charges

and fees

Investment &Trading Income

Unrealised gain/(losses) onsecurities &derivatives

Foreign ExchangeProfit

Other Income Net Income fromInsurance Business

Fee Income fromIslamic Operations

1Q FY2013 1Q FY2014

-38.8% -12.1%

-9.7%

-8.7% -53.5% 102.3% -46.6% 302.3%

Fee based Income 1Q FY2014 (1/2) Core fee income down 9.7% YoY due to lower investment and trading income

RM

million

35

1,327

969

168

-98

202

87

185

84

1,232

785

279

-97

228

37 2

77

Total non-interestincome

Commission,service charges

and fees

Investment &Trading Income

Unrealised gain/(losses) onsecurities &derivatives

Foreign ExchangeProfit

Other Income Net Income fromInsurance Business

Fee Income fromIslamic Operations

4Q FY2013 1Q FY2014

65.8% -1.6%

Fee based Income 1Q FY2014 (2/2) Core fee income down 7.2% QoQ due to lower commission, service charges and fees

-19.0% 13.2% -57.8% -98.9% -8.9%

-7.2%

RM

million

36

Group Loans Growth: 31 Mar 2014 First quarter loans growth was higher 13.9% YoY but recorded YTD annualised growth of 5.3%

31 Mar 14 31 Dec 13 Annualised % of

Portfolio 31 Mar 13 YoY

Group Gross Loans * 366.6 361.8 5.3% - 322.0 13.9%

Malaysia (RM billion)** 223.2 223.6 (0.7)% 61% 202.4 10.3%

Community Financial Services 154.5 151.9 6.9% 69% 138.9 11.3%

Global Banking 68.6 71.7 (17.1)% 31% 63.6 7.9%

International (RM billion) 139.9 134.7 15.3% 38% 116.0 20.5%

Singapore (SGD billion) 31.4 31.0 5.1% 58% 27.7 13.1%

Consumer 10.7 10.6 3.8% 34% 9.7 10.2%

Commercial 20.7 20.4 5.8% 66% 18.0 14.7%

Indonesia (Rupiah trillion) 103.4 103.7 (1.3)% 21% 80.9 27.8%

Consumer 36.7 35.3 16.1% 36% 28.8 27.5%

Non-consumer 66.7 68.4 (10.2)% 64% 52.1 28.0%

Other markets (RM billion) 28.7 26.3 37.0% 21% 21.0 36.5%

Investment banking (RM billion) 3.6 3.5 7.6% 1% 3.5 2.1%

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

**Takes into account others portion - Mar 14: 0.0 vs Mar 13: (0.0)

37

RM billion 31 Mar 14 31 Dec 13 Annualised % of

Portfolio 31 Mar 13 YoY

Community Financial Services 154.5 151.9 6.9% 69% 138.9 11.3%

Consumer 124.9 121.9¹ 9.6% 81% 111.4 12.1%

Total Mortgage 55.0 53.8 9.2% 44% 49.6 10.9%

Auto Finance 35.9 35.0 11.0% 29% 32.0 12.3%

Credit Cards 5.4 5.6 (14.5)% 4% 5.3 2.2%

Unit Trust 26.9 26.3 8.4% 22% 23.3 15.5%

Other Retail Loans 1.7 1.3 114.0% 1% 1.3 28.8%

Business Banking + SME 29.6 29.9² (3.8)% 19% 27.4 8.1%

SME 5.7 6.0 (22.1)% 19% 5.1 11.8%

Business Banking 23.9 23.9 0.8% 81% 22.3 7.2%

Global Banking (Corporate) 68.6 71.7 (17.1)% 31% 63.6 7.9%

Total Domestic* 223.2 223.6 (0.7)% - 202.4 10.3%

Malaysia Loans Growth: 31 Mar 2014 In Malaysia, consumer portfolio grew 9.6% on a YTD annualised basis, while non-consumer segments slowed

*Including Islamic loans sold to Cagamas and excludes unwinding of interest and takes into account others portion - Mar 14: 0.0 vs Mar 13: (0.0)

¹ Loan figure of RM121.9 billion at as at 31 December 2013 displayed in this page does not include one account migrated from Business Banking to Consumer

portfolio.

²Loan figure of RM29.9 billion as at 31 December 2013 displayed in this page for Retail SME and Business Banking does not include the migration of some

accounts. Post migration, Retail SME registered an annualised growth of 35%.

38

31 Mar 14 31 Dec 13 Annualised % of Portfolio 31 Mar 13 YoY

Group Gross Deposits 395.7 395.6 0.0% - 355.4 11.3%

Malaysia (RM billion) 258.2 259.1 (1.5)% 65% 230.4 12.0%

Savings Deposits 39.1 37.6 16.1% 15% 36.9 5.9%

Current Accounts 64.0 65.8 (10.9)% 25% 56.4 13.5%

Fixed Deposits 136.6 138.3 (4.9)% 53% 118.3 15.5%

Others 18.5 17.4 23.4% 7% 18.8 (2.1)%

International 139.4 138.6 2.3% 35% 126.4 10.3%

Singapore (SGD billion) 33.5 34.0 (6.0)% 62% 32.2 4.0%

Savings Deposits 4.3 4.1 15.6% 13% 3.4 25.0%


Fixed Deposits 24.2 24.7 (8.5)% 72% 25.2 (3.8)%

Others 0.6 0.5 148.3% 2% 0.4 42.2%

Indonesia (Rupiah trillion) 104.3 107.5 (12.0)% 22% 89.4 16.6%

Savings Deposits 24.0 24.7 (10.6)% 23% 19.3 24.7%


Fixed Deposits 64.8 65.1 (1.8)% 62% 56.2 15.3%

Group Deposit Growth: 31 Mar 2014 Annualised group deposit growth was flat due largely to a contraction in current account and fixed deposits

39

LDR and CASA Ratio: 31 Mar 2014 Group LDR at 91.0% due to tighter liquidity, but CASA ratio is stable in Malaysia and Singapore offset by some

contraction in Indonesia

Singapore BII Group

Group Malaysia

86.6% 85.9% 86.6% 87.8% 87.9%

40.5% 38.8% 40.7% 39.9% 40.0%

Mar-13 Jun-13 Sep-13 Dec-13 Mar-14

85.8% 82.2% 84.6% 90.9% 93.5%

20.4% 21.2% 23.6% 25.9% 25.8%


89.4% 93.7% 95.5% 95.7% 98.3%

37.1% 38.7% 39.7% 39.4% 37.8%


Note: PT Bank Internasional Indonesia Tbk reported its LDR of 95.26% as at Mar

2014 as its computations excludes loans to rural banks. At Bank (excluding

subsidiaries) level, LDR was 88.91% in Mar 2014.

89.0% 87.5% 88.2% 89.9% 91.0%

34.9% 34.2% 36.1% 36.1% 35.8%


LDR CASA

40

Key Operating Ratios Group’s operating ratios within guidance set for FY2014

(%) 1Q FY14 1Q FY13 Variance

YoY

Variance

QoQ 4Q 2013

Return on Equity 13.8 14.2 (0.4)% (2.1)% 15.9

Net Interest Margin 2.37 2.49 (12 bps) (1 bps) 2.38

Fee to Income Ratio 29.6 33.0 (3.4)% (4.5)% 34.1

Loans-to-Deposit Ratio 91.0 89.0 +2.0% +1.1% 89.9

Cost to Income Ratio# 48.6 49.4 +0.8% 0.9% 49.5

Asset Quality

Gross Impaired Loans Ratio 1.52 1.89 +37 bps (4 bps) 1.48

Net Impaired Loans Ratio 0.99 1.18 +19 bps (4 bps) 0.95

Loans Loss Coverage 107.2 99.0 +8.2% (0.3)% 107.5

Net Charge off rate (bps) 23 11 (12 bps) (15 bps) 8

Capital Adequacy (Group)^

CET1 Capital Ratio 10.76 10.10 +66 bps (26 bps) 11.02

Total Capital Ratio 15.11 14.76 +35 bps (32 bps) 15.43

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

^ The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP

41

Overheads 1Q FY2014 Group CIR improved with lower spending on IT and marketing related expenses

(RM’ mil) 1Q FY2014 1Q FY2013 YoY

4Q FY2013 QoQ

Personnel costs 1,237.3 1,221.5 1.3% 1,208.6 2.4%

IT Expenses 105.9 142.5 (25.7)% 148.3 (28.6)%

Marketing Expenses 135.3 162.8 (16.9)% 211.8 (36.1)%

Admin &general expenses, fees &

brokerage, establishment costs,

and depreciation & amortisation 689.9 631.2 9.3%

765.5

(9.9)%

Total 2,168.4 2,158.0 0.5% 2,334.2 (7.1)%

Group overheads composition

% 1Q FY2014 1Q FY2013 YoY 4Q FY2013 QoQ

Total Cost to Income 48.6% 49.4% 0.8% 49.5% 0.9%

Group JAW Position 1.9 % -1.8%

42

86.0

427.6

270.5

-54.5

210.1

1Q FY13 2Q FY13 3Q FY13 4Q FY13 1Q FY14

Allowances for losses on loans

Asset Quality: 31 Mar 2014 GIL improved YoY to 1.52%, but recorded a rise since end-Dec position

Group Impaired Loans Ratio Allowance for losses on loans

2.18 1.86

1.57 1.28 1.22 1.09 1.18 1.09 1.06 0.95 0.99

3.23

2.84

2.44

2.00 1.90

1.78 1.89 1.86 1.83

1.48 1.52

Sep2011

Dec2011

Mar2012

Jun2012

Sep2012

Dec2012

Mar2013

Jun2013

Sep2013

Dec2013

Mar2014

Gross Impaired Loans Ratio Net Impaired Loan Ratio

99.0%

103.5% 106.3%

107.5% 107.2%

Loan loss coverage

43

Asset Quality by Market Credit quality in Malaysia and Singapore showed YoY improvement, while Indonesia saw an uptick in impaired loans

Malaysia Singapore BII Group

2.00

2.21 2.19 2.15

1.69 1.77

1.29

1.48 1.35 1.29

1.06 1.12


0.42 0.43 0.45

0.42

0.29 0.29 0.29 0.28 0.30

0.26

0.22 0.21


GIL NIL

2.18 1.96

1.82

2.15

2.81 2.98

1.63 1.43

1.76

1.70

2.46 2.53


44

10.99% 10.76% 10.68% 11.02%

12.54% 12.32% 12.23% 12.83%

15.33% 15.11% 15.03% 15.43%

Mar 14 Mar 14 Mar 14 Dec 13

Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

After proposed

dividend, assuming

85% reinvestment

rate

Group

Bank

Capital Adequacy: 31 March 2014 Total capital ratio at 15.11% (assuming 85% dividend reinvestment rate) and CET1 at 10.76%

Before

proposed

dividend

After proposed

dividend,

assuming 85%

reinvestment rate

After proposed

dividend, based on

BNM’s Implementation

Guideline *

15.64%

15.33% 15.21%

15.61%

Mar 14 Mar 14 Mar 14 Dec 13

CET 1, Tier 1 and Total Capital Ratio

Note:

• CET1, Tier 1 and Total Capital Ratio are computed in accordance with Capital Adequacy Framework (Capital Components) issued by BNM in November 2012.

• Based on 85% reinvestment rate under the DRP, fully loaded, the CET1 Ratio would be at 9.98% (Group) and 8.31% (Bank) respectively.

* Capital ratios computed based on BNM’s implementation Guidelines on Capital Adequacy Framework (Capital Components) issued on 8th May 2013.

45

Market Outlook Key trends and developments that will affect the banking industry in 2014

Malaysia

Indonesia

Singapore

Outlook Key Trends and Developments

• Improved export flow, also

because of lower base effect in

1H 2013, when exports shrank. A

weaker MYR also plays a role.

• GDP(f) 5.4% (2013: 4.7%)

• System loan (f) 9.8%

• System deposit (f) 9.6%

• GDP(f) 3.7% (2013: 4.1%)

• System loan (f) 9%

• System deposit (f) 6%

• Investments are depended on

election results

• Potential capital outflow as

advanced economies improve

• GDP(f) 5.6% (2013: 5.78%)

• System loan (f) 17%

• System deposit (f) 12.5%

• Policy mix of reserve requirements and

market rate hikes will slow loan growth.

• Weakness in corporate lending as investment

lags macro uncertainty and working capital

tracks economic activities.

• Tighter liquidity owing to central bank’s

monetary policy

• Singapore residential property market shows

signs of weakness, slowing housing loan

growth

• 1Q FY2014 GDP growth of 5.1% YoY was led

by growth in manufacturing and construction

• Domestic demand to moderate due to slower

growth in consumer spending

• Firmer external demand as exports of goods

and services rebound

• OPR expected to increase 25-50 bps in 2H14

46

Pockets of loan growth opportunities for 2Q in consumer,

SME and corporate segments

More robust deposit gathering in 2Q

Improved fee income growth on the back of better deal

Pipeline but brokerage & loan related fees to remain muted

Continued cost optimisation in discretionary areas of spend to

manage overhead expenses

Asset quality to remain stable for Malaysia but continued

challenges in Indonesia for 2Q

1

2

3

4

5

Maybank Performance Outlook Loan and deposit growth to improve in second quarter

47

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 Business Planning & Investor Relations

Contact: (6)03-2074 8017

Email: [email protected]

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.

Investor Relations Contact

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