investor presentation · 2 fy2019 overview on macro-environment and maybank’sperformance...

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Investor Presentation

Financial Results4Q FY2019 and FY2019 ended 31 December 2019

27 February 2020

1

Table of Contents

Executive Summary 2

Results Overview 5

Prospects & Outlook 16

Appendix:

1. Financial Performance 22

2. Community Financial Services 35

3. Global Banking 38

4. Maybank Singapore 41

5. Maybank Indonesia 44

6. Other Segments 47

7. Maybank’s Sustainability Strategy 51

Financial Results: 4Q FY2019 and FY2019 ended 31 December 2019

2

FY2019 Overview on Macro-environment and Maybank’s Performance

Macroeconomic

EnvironmentMaybank’s Performance for FY2019 ended 31 December 2019

Our Successes

Our Setbacks

• PPOP grew 6.1% to new high of RM13.18 bil despite slow growth environment:

As revenue grew 4.6% on selective balance sheet expansion and investment and

treasury income gains.

From on-going cost discipline that yielded low single-digit cost growth of 2.8%

and positive JAWs of 1.8%.

• Highest-ever PBT and net profit of RM11.01 bil and RM8.20 bil respectively, supported

by strong performance achieved by:

Group CFS: PBT growth of 16.5% to RM6.49 bil.

Group Insurance & Takaful: PBT growth of 18.6% to RM944.35 mil.

Group Islamic Banking: PBT growth of 21.7% to RM3.69 bil.

• Stable and healthy YoY liquidity risk indicators, with Group CASA unchanged at 36%.

• Exceptional shareholder returns with all cash dividend of 64 sen per share for FY2019,

resulting in dividend yield of 7.4% and effective payout of 88% from net profit.

• Maintained strong capital positions (post-all cash dividend payout) with Group CET 1

Capital Ratio at 14.58% and Total Capital Ratio at 18.23%.

• ROE of 10.9%, in line with original guidance provided circa 11%.

• Asset quality weakness in some business segments in international markets arising

from on-going trade war fallout and specific sectorial weaknesses.

• Lower net interest margin by 6 bps YoY given low interest rate environment and

arising from increased asset and liability competition in Indonesia.

Global growth and key

ASEAN economies

recorded slower YoY GDP

growth

Slower trade activities

arising from ongoing US-

China trade war, as well as

escalation of tensions

between US-Iran

Monetary policy easing

measures by central banks

globally and continued

low-rate environment

Supply disruption in the

commodities sector for

Malaysia and pockets of

weakness in specific

sectors in Maybank’s home

markets

3

• Group Wealth Management recorded AUM growth of 9% YoY to RM230.6 billion• We launched a digital loan application channel via Maybank2u and Maybank2u Biz,

offering unsecured loans of up to RM250,000 to our existing SME customers with approval-in-principal within 24 hours

Maybank2020: FY2019 Achievements in Key Strategic Objectives

The Leading

ASEAN

Wholesale Bank

Linking Asia

• No. 1 in Bloomberg’s League Tables for Global Sukuk, Malaysian Ringgit Islamic Sukuk and Malaysia Bonds

• Executed breakthrough green deals in the region including the Belt & Road Bankers Roundtable USD2 billion inaugural green bond

The Leading

ASEAN Insurer

• Remained Malaysia’s top Bancassurance player for the second year• Became Malaysia’s leading Motor Insurance/Takaful provider in 2019 and maintained

over 60% online insurance/takaful market share for three consecutive years• In Malaysia, launched first-of-its-kind protection plan that covers mental illness

The Global

Leader In Islamic

Finance

• Established our first Islamic branch in Dubai (DIFC) to facilitate fund flows for financialactivities between Gulf Cooperation Council and ASEAN

• Collaborated with industry players to deepen the understanding of Islamic Finance byproducing a research paper that explored the alignment of Shariah and ESG principles

The Digital Bank

of Choice

• Launched the first lifestyle e-wallet with banking facilities in Malaysia, called MAE, with over 1.1 million registered users in 2019

• First bank in Southeast Asia to launch a payment solution for merchants to accept card payments through a mobile app called Tap2Phone, instead of a POS terminal

The Top ASEAN

Community Bank

1

2

3

4

5

4

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:









5

P&L Summary: FY2019In spite of a slow growth environment, Maybank’s PPOP grew 6.1% to achieve a new record high of RM13.18 billion

Note:

* From consolidated Full Year FY2019 Group numbers, Insurance and Takaful accounts for 7.1% of net fund based income and 9.5% 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 FY2019 FY2018 YoY

4Q

FY2019

3Q

FY2019QoQ

4Q

FY2018YoY

s.24 Net fund based income * 17,514.8 17,135.9 2.2% 4,518.9 4,522.2 (0.1)% 4,474.6 1.0%

s.8/

9/24 Net fee based income * 7,226.1 6,525.8 10.7% 1,974.0 1,976.0 (0.1)% 1,858.0 6.2%

s.22/

23 Net operating income 24,740.9 23,661.7 4.6% 6,492.9 6,498.2 (0.1)% 6,332.6 2.5%

s.10 Overhead expenses (11,561.9) (11,245.7) 2.8% (2,969.1) (2,963.6) 0.2% (3,100.1) (4.2)%

s.23 Pre-provisioning operating profit (PPOP) 1 13,178.9 12,416.0 6.1% 3,523.8 3,534.6 (0.3)% 3,232.5 9.0%

Net impairment losses (2,323.4) (1,612.9) 44.1% (298.9) (934.9) (68.0)% (162.3) 84.1%

Operating profit 10,855.5 10,803.1 0.5% 3,224.9 2,599.7 24.0% 3,070.1 5.0%

s.22 Profit before taxation and zakat (PBT) 11,013.9 10,901.3 1.0% 3,263.6 2,648.3 23.2% 3,095.6 5.4%

Net Profit 2 8,198.1 8,113.3 1.0% 2,449.1 1,998.8 22.5% 2,326.4 5.3%

EPS - Basic (sen) 73.5 74.2 (1.0)% 21.8 17.8 22.6% 21.1 3.5%

6

22.6 22.1

19.7 18.5

Dec 18 Dec 19

Community Financial Services Global Banking

216.0 231.6

83.3 82.7

Dec 18 Dec 19

14.7 14.0

31.5 34.3

Dec 18 Dec 19

CASA FD Others

133.1 136.0

125.8 133.8

84.8 81.7

Dec 18 Dec 19

(3.7)%(3.7)%

199.9 200.9

271.5 282.7

84.8 81.7

Dec 18 Dec 19

(0.7)%

(11.7)%

+2.3%

Note:

• Industry loans growth for Malaysia is 3.9% and Singapore is 4.2%

• CASA ratio for Group and Malaysia includes investment accounts

• Refer to pages 28-30 for detailed information on loans and deposits growth by country and products.

103.3 91.3

34.7 35.5

Dec 18 Dec 19

314.1

+0.5%

(6.0)%+7.2%

44.3 40.5

72.7 70.4

Dec 18 Dec 19

(1.9)%

351.5

+4.1%

127.0

517.3 523.5

Dec 18 Dec 19

Net Fund Based Income: FY2019 (1/2)Selective Group balance sheet expansion in line with risk and liquidity management

299.3

42.4

138.3

RM

billion

SG

D b

illion

IDR

tri

llio

n

Gross Loans (YoY)

+4.9% (3.9)% (8.2)% +1.2%

RM

billion

Group Malaysia Singapore Indonesia

40.7

(4.1)%

RM

billion

RM

billion

SG

D b

illion

IDR

tri

llio

n

Group Deposits (YoY)

31.7% 29.1%38.7% 38.7%35.9% 35.5% 37.9% 36.5%CASA

Ratio:

+6.3%

+2.2%+8.7%

(3.1)%

556.3 565.3343.8

46.2 48.3 117.0 110.9

+2.2% +4.6% (5.3)% +1.6%

(8.8)%

7

2.31

2.27

2.36

2.33

2.27

FY2015 FY2016 FY2017 FY2018 FY2019

Net Interest Margin (%)

5 Year Trend

Net Fund Based Income: FY2019 (2/2)In low rate environment, managed moderate NIM compression of 6 bps YoY, beating compression guidance of 7-9 bps

2.38

2.30

2.19

2.32 2.29

4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

QoQ Trend

8

6,526 5,286

549 691

7,226

5,730

560 936

Total Other Operating Incomefrom Banking Operations

Fee Income fromIslamic Operations

Net Fee Incomefrom Insurance

FY2018 FY2019

RM million FY2018 FY2019 YoY

Commission, service charges and fees 3,358 3,370 0.4%

Investment & trading income (318) 1,685 (>100)%

Unrealised gain/ (losses) on financial

assets and investments(228) 1,372 (>100)%

Derivatives and financial liabilities 930 (313) (>100)%

Foreign exchange profit 842 733 (13.0)%

Other income 366 430 17.2%

Total Group’s Other Operating Income 4,951 7,277 47.0%

Of which: Other Operating Income from Insurance (335) 1,547 (>100)%

RM

million

Net Fee Based Income: YoYGrowth of 10.7% YoY driven by net disposal gains in securities and MTM gains on lower bond yields

+8.4% YoY +2.0% YoY +35.5% YoY +10.7% YoY

Notes using Maybank’s 4Q & Full Year FY2019 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

9

1,553

1,177

143 233

1,723

1,385

134 205

1,976

1,652

132 192

1,974

1,517

150 306

Total Other Operating Incomefrom Banking Operations

Fee Income fromIslamic Operations

Net Fee Incomefrom Insurance

1Q FY2019

2Q FY2019

3Q FY2019

4Q FY2019

RM

million

Net Fee Based Income: QoQStable QoQ net fee based income supported by higher commission, service charges and fees but lower MTM and

realised gains on securities

RM million1Q

FY2019

2Q

FY2019

3Q

FY2019

4Q

FY2019QoQ

Commission, service charges and fees 773 805 882 910 3.2%

Investment & trading income 206 438 834 207 (75.2)%

Unrealised gain/ (losses) on financial

assets and investments565 476 318 13 (96.0)%

Derivatives and financial liabilities (156) (62) (107) 13 (>100)%

Foreign exchange profit 211 221 132 168 27.7%

Other income 78 101 90 160 77.9%

Total Group’s Other Operating Income 1,678 1,980 2,149 1,471 (31.5)%

Of which: Other Operating Income from Insurance 501 595 497 (46) (>100)%

Notes using Maybank’s 4Q & Full Year FY2019 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

(1.0)%

+13.6%

(6.6)%

(6.3)%

+59.8%

+17.7%

+19.3%

(8.2)%

(12.3)%

+14.7%

(0.1)%

+10.9%

10

Overheads: FY2019Cost discipline leads to low overheads growth of 2.8% YoY; CIR of 46.7% with positive JAWs YoY

Note:

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

RM million FY2019 FY2018 YoY4Q

FY2019

3Q

FY2019QoQ

4Q

FY2018YoY

Personnel Costs 6,625.0 6,449.5 2.7% 1,601.5 1,680.0 (4.7)% 1,751.0 (8.5)%

Establishment Costs 1,905.7 1,845.2 3.3% 534.9 480.8 11.3% 523.5 2.2%

Marketing Expenses 596.7 542.8 9.9% 147.4 157.5 (6.4)% 143.2 3.0%

Administration & General

Expenses 2,434.5 2,408.2 1.1% 685.3 645.3 6.2% 682.4 0.4%

Total 11,561.9 11,245.7 2.8% 2,969.1 2,963.6 0.2% 3,100.1 (4.2)%

% FY2019 FY2018 YoY4Q

FY2019

3Q

FY2019QoQ

4Q

FY2018YoY

Total Cost to Income ¹ 46.7 47.5 (0.8) 45.7 45.6 0.1 48.9 (3.2)

Group JAWS Position 1.8 (0.3) 6.7

11

81.3

604.0391.6

958.0

333.9

1,591.3

2,287.5

4QFY2018

1QFY2019

2QFY2019

3QFY2019

4QFY2019

FY2018 FY2019

Allowances for losses on loans

83.6% 82.6% 78.0% 76.7% 77.3%

93.6% 94.1% 90.2% 89.1% 90.8%

Loan loss coverage incl. Regulatory Reserve

Loan loss coverage

Allowances for losses on loans

Asset Quality: FY2019Full year FY2019 net credit charge off rate of 44 bps, within Group guidance of 40-45 bps

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 ComponentsDec

2019

Sep

2019

Jun

2019

Mar

2019

Dec

2018

Non Performing Loans

(NPL)2.20% 2.12% 2.01% 1.72% 1.74%

Restructured &

Rescheduled (R&R)0.05% 0.13% 0.16% 0.15% 0.12%

Performing Loans

Impaired Due to

Judgmental/ Obligatory

Triggers (IPL)

0.40% 0.42% 0.45% 0.61% 0.55%

GIL Ratio 2.65% 2.67% 2.62% 2.48% 2.41%

Group Gross Impaired Loans (GIL) Ratio Composition

1.88% 1.86% 2.11% 2.07% 1.95%

3.43% 3.49% 3.26% 3.39% 3.87%

3.72% 4.00% 4.26%5.05%

4.48%

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019

Malaysia Singapore Indonesia

GIL Ratio by Home Markets

12

0.62% 0.63% 0.63% 0.58% 0.55%

1.86% 1.97%1.66% 1.71% 1.77%

1.41% 1.30% 1.16% 1.06% 1.05%


Note:

• In Malaysia, industry GIL ratio for mortgage (purchase of residential property) is 1.2%, 0.8% for auto finance and 0.9% for credit cards.

• In Singapore, industry GIL figure is only available for mortgage, which was 0.4%.

• In Indonesia, Business Banking includes Commercial, SME and Micro loans. Maybank Indonesia’s GIL ratios are mapped in accordance to its local regulatory reporting requirements and

does not include R&R.

9.88%10.51% 9.95% 9.76% 9.40%

2.64%

2.38% 1.84% 1.75% 1.76%2.22%

2.98%4.22% 4.39%

5.81%


Malaysia Singapore Indonesia

Asset Quality by Line of Business in Home MarketsSteady quarterly consumer trends across home markets; some uptick in overseas business lines

Mortgage Auto Finance Credit Cards

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

Consumer

Business

0.92% 0.93% 0.90% 0.91% 0.87%

0.44% 0.53% 0.54% 0.59% 0.62%

2.63% 2.73% 2.88% 2.90% 2.97%


0.65% 0.61% 0.66% 0.67%0.65%

0.34%0.29%

0.13%0.11% 0.09%

1.34% 1.33% 1.27%

1.05%0.88%


2.01% 1.79%2.86% 2.79% 2.49%

7.10%7.26%

6.86%7.61%

8.70%

6.59%5.55% 5.15%

6.21%

4.37%


2.09%2.21%

2.26% 2.27%

2.26%

1.95%2.10%

2.19% 2.23%

2.37%2.51%

2.66%3.20%

3.48%3.76%


13

92.7% 92.4% 93.4% 92.5% 92.4%

86.2% 85.4% 86.3%85.0% 84.8%

76.1% 75.2% 75.9% 75.0% 74.6%


LDR LTF LTFE

132.4% 134.2% 145.4% 141.5% 141.0%

LCR

13.76% 15.31% 13.35%

14.87% 16.12%14.16%

18.27%19.39%

17.43%

Dec 18 Dec 19 Dec 19

15.03% 15.73% 14.58%

15.98% 16.49% 15.33%

19.02% 19.39%18.23%

Dec 18 Dec 19 Dec 19

Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

Group

Bank

Strong Liquidity & Capital Positions: 31 December 2019Total capital ratio of 18.23% and CET 1 capital ratio of 14.58%, after proposed all cash final dividend

After proposed

full cash dividend

Before proposed

dividend

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%)

14

11

28 3222.5 24

2420 23 25

25

44

32

36

33

3133 30

3232 32

39

FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Final

Interim

76.5% 74.9% 79.9% 74.7% 71.9%78.5% 76.3% 78.1% 78.5% 77.3%

87.8%

27% 13% 11% 12% 20% 25% 19% 27%67% 53%

100%

Dividend (sen), Payout Ratio (%) and Cash Component (%)

85.9%*

85.7%*

88.2%*85.9%*

88.5%*91.1%*

86.1%*

88.6%*

#

82.6%*

55.060.0

36.0

65.0

53.557.0

84.0%*

Dividend Payout Ratio

83.7%*

54.0

87.5%*

89.1%*

52.0

83.5%*

55.0

Cash Component of Total Dividend

FY08 FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Effective Cash

Dividend Paid Out

from Net Profit

Dividend: FY2019Full year all cash dividend of 64 sen per share, with an effective cash payout of 88% from net profit

60.4% 61.4% 26.2% 17.2% 17.0% 19.0% 22.0% 29.0% 23.2% 28.6% 57.2% 47.1% 87.8%

85.7%*

Note:

* Actual Reinvestment Rate for Dividend Reinvestment Plan.

+ The Final Dividend for FY2017, Interim and Final Dividend for FY2019 are fully in cash.

# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend. Maybank adopted the single-tier dividend regime with effect from FY2012.

84.0%*

57.0

+

81.7%*

64.0

+

+

15

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:









16

Key Indicators Outlook

Indonesia

• GDP: 1.1% (2020F) vs 0.7% (2019)

• System loan: 5.0% (2020F) vs 4.2% (2019)

• 3M SIBOR: 1.65% (2020F) vs 1.77% (2019)

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

• Inflation: 0.7% (2020F) vs 0.6% (2019)

• GDP: 5.0% (2020F) vs 5.0% (2019)

• System loan: 8.5% (2020F) vs 6.1% (2019F)

• Reference Rate: 4.50% (2020F) vs 5.00% (2019)

• USD/IDR average: 13,620 (2020F) vs 14,313 (2019)

• Inflation average: 2.9% (2020F) vs 3.0% (2019)

Singapore

Market Outlook2020 industry outlook for our home markets

• GDP: 4.0% (2020F) vs 4.3% (2019)

• System loan: 4.3% (2020F) vs 3.9% (2019)

• OPR: 2.50%-2.75% (2020F) vs 3.00% (2019)

• USD/MYR average: 4.11 (2020F) vs 4.14 (2019)

• Inflation: 1.0%-1.5% (2020F) vs 0.7% (2019)Malaysia

• Economic growth to be supported by private

consumption and improvement in investment

activities.

• Prospect of economic reforms to spur FDI and

private investment, through more business-friendly

labour laws and lower corporate taxes.

• Continued asset and liability competition among

banks in low interest rate environment.

• 1Q growth likely affected by the COVID-19 outbreak

and border control measures impacting hospitality,

travel and retail sectors and delaying the recovery

of manufacturing and exports.

• Budget 2020 provides fiscal relief for businesses

directly affected by COVID-19 and targeted

assistance for the lower and middle-income

households.

• Monetary policy easing, and potentially higher

Government development expenditure and

procurement spending as well as progress in major

infrastructure projects to support growth, as per

Budget 2020 announcement.

• Additional relief measures for industries and sectors

hardest hit by COVID-19 outbreak.

17

Maybank Performance OutlookGroup guidance for FY2020

Operating Environment Group’s Key Priorities and Guidance

• Leverage on our diversified franchise to drive revenue growth

while maintaining discipline in the pricing of assets and liabilities

• Enhance customer experience through digital innovations and

delivering personalised financial solutions

Prolonged COVID-19

outbreak would weigh on

economic growth,

impacting hospitality,

transportation and F&B

sectors, among others

Lower interest rate

environment to persist

globally

Accommodative

monetary and fiscal

policies in the ASEAN

region to provide boost

for economic growth

Potential re-escalation

of trade dispute

Continued geopolitical

developments such as

the US Presidential

Election and tensions in

the Middle East to

impact markets

• Remain selective in balance sheet expansion in tandem with the

Group’s risk appetite

• Maintain capital and liquidity strength amid economic

uncertainties and in anticipation of NSFR adoption effective 1st

July 2020

• Maintain ongoing Group-wide cost discipline in a low growth

environment with CIR of 46% - 47%, and positive JAWs position

• Continue up-skilling of workforce to improve productivity and

efficiencies

• Disciplined asset quality management in slowing economic growth

environment and continued recovery efforts

• Assisting clients impacted by COVID-19 outbreak through

proactive engagement

• Group ROE guidance of 10.0% - 11.0%, on slower economic growth

and a lower interest rate environment

• Sustain rewards to shareholders with strong effective cash

dividend payout and dividend yield

Income

Growth

Continued

Productivity

Drive

Sustainable

Shareholder

Returns

Balance Sheet

Management

Asset Quality

Management

18

Maybank’s Approach to Sustainability (1/2)The Ongoing Journey on Sustainability

• 2010: Published our first Sustainability Report

• 2014: Maybank Group’s 20/20 Sustainability Plan approved by BOD - highlights three major pillars that contribute

to the Group’s long-term value: Community and Citizenship, Our People, and Access to Products and Services

• 2015: Responsible Lending Guideline established to manage ESG risks

• 2016: Material Matters and 20/20 Sustainability Plan were linked to the United Nations’ Sustainable Development

Goals (SDGs)

• 2018: Responsible Lending Guideline expanded into an ESG Risk Management Framework and then endorsed as an

ESG Policy, following the Board’s approval

• 2018: Incorporated a baseline for Task Force on Climate-related Financial Disclosures (TCFD)

• Group Sustainability Council established to set the Group Sustainability Agenda, reporting to the GPCEO and is

represented by Country CEOs, Business Sector Heads and Support Sector Heads.

• Group-wide ESG working group established to integrate sustainability into existing business practices.

• Rated “A” in MSCI’s ESG Ratings assessment for 6 consecutive years; only bank rated “A” among 5 largest peers.

• Third consecutive year listed on the Bloomberg Gender Equality Index, the only Malaysian company out of 230

global firms.

• Seventh consecutive year to be included in FTSE4Good indices that measure the performance of companies that

demonstrate strong ESG practices.

• Strategise and align sustainability initiatives, policies and metrics across the Group for all entities and countries,

with stronger monitoring and management of key material sustainability risks and opportunities towards

enhancing the Group’s sustainability journey.

• More Risk Acceptance Criteria to be introduced for sectors such as power, chemical and shipping. Already

established for palm oil, forestry & logging, oil & gas and mining & quarrying.

• Strengthen integration of ESG concerns into investment activities and expand ESG investment portfolio through

innovative solutions.

Past(pre-2019)

Present(2019)

Future(Beyond 2019)

Refer to pages 51-53 for more details on Maybank’s Sustainability Strategy

19

Maybank’s Approach to Sustainability (2/2)

Established Group Sustainability Council in 2H FY2019

Group President & CEO

Group Sustainability Council

EXCO Members

Islamic Banking Group CEO (Chairman) |

Community Financial Services Group CEO |

Global Banking Group CEO | Insurance & Takaful Group CEO |

Singapore CEO | Indonesia President Director | International CEO |

Group Chief Financial Officer | Group Chief Risk Officer

1. Set the Group Sustainability Agenda

2. Define boundaries and approve proposals related to Sustainability

3. Monitor and advise on Sustainability-linked action plans and issues

4. Guide alignment of Country and Entity Sustainability Councils with Group Sustainability Agenda

5. Update Group Board of Directors and Group EXCO on progress of the Group Sustainability Council

when required

reports to

represented by

• The Council comprises all Group Business and Country CEOs/Heads as well as key support Sector Heads for a

holistic sustainability approach

& Permanent Invitees

20

Maybank’s Key FY2019 Digital Achievements

The first lifestyle e-

wallet with banking

facilities in Malaysia,

with over 1.1 million

registered users in 2019.

MAE

First bank in SEA to

launch this payment

solution for merchants to

accept card payments

through a mobile app

instead of a POS terminal.

Tap2Phone

Etiqa’s all-in-one app

that enables customers

to access their policy

details, the panel of

service providers, submit

claims and more.

Smile App

First local bank in

Malaysia to introduce

SWIFT gpi that enables

clients to enjoy speedier,

more convenient and

secure cross border

remittances.

SWIFT gpi

Enables third party

software developers to

build new applications

around Etiqa’ products

and services, enabling

easier integration of

Etiqa’s solutions on their

platforms.

Etiqa API Portal

Customer Experience & Operational Efficiencies Futureproofing Maybankers

Rolled out M2U Live Chat for premier banking customers seeking

assistance, which is available 24/7.

Development of CARisMa (Capital Adequacy and Risk Management) -

an integrated system developed in-house for business units to better

manage their assets, liabilities and risks.

The only bank to allow registered merchants to receive payments

from GrabPay as well as enabling the direct linking of customers’

CASA accounts.

Re-engineering of operational processes to increase daily online

banking availability rate to almost 24/7 online real-time access for

our banking services and transactions.

Expansion of data centre to accommodate greater transactional

volumes as our processes becomes more digitalised.

Launched Crowdtivation, enabling staff to experiment with

innovative solutions, create and be a part of internal gigs – preparing

them for a work culture that is envisioned to be boundary-less.

Equipped digital social learning tools for staff based at branch and

Premier Wealth centres.

Introduced gamified online learning platforms for employees to learn

coding for analytics without requiring pre-requisite knowledge of

programming.

New AI learning tool for employees to apply analytics algorithms to

their jobs.

Introduced Social Media Upskilling Programme to upskill employees

in utilising social media to engage with customers and provide

financial expertise digitally.

Products & Services

21

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:









22

Overseas:

13.6%

Overseas:

39.5%

86.4%

0.7%

6.0% 6.9%

Malaysia Singapore Indonesia Others

61.8%18.7%

12.1%

7.4%

60.5%24.4%

7.1%8.0%

70.1%

12.2%

6.9%

10.8%

62.6%17.9%

12.1%

7.4%

58.3%25.6%

7.7%8.4%

International & Malaysia Portfolio Mix FY2019

Overseas:

41.7%

FY2018

Net Operating Income Profit Before Tax

FY2019

Overseas:

37.4%

Overseas:

29.9%

Gross loans*

(Jan 18 – Dec 18)

Overseas:

38.2%

(Jan 19 – Dec 19)

RM10.90

billion

RM517.3

billion

RM23.66

billion

RM11.01

billionRM523.5

billionRM24.74

billion

Note:

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

23

12,416

6,330 5,963

207 (45)786

13,179

6,275 6,537

83 52 979

Total Group CommunityFinancial Services

Group CorporateBanking & Global

Markets

Group InvestmentBanking

Group AssetManagement

Group Insurance& Takaful

FY2018

FY2019

23,662

13,542

8,016

1,224 96 1,610

24,741

13,818

8,428

1,144 174

1,923



Markets




FY2018

FY2019

Segmental Performance of Businesses: FY2019 (1/2)

Net Operating Income

+4.6%

RM

million

PPOP

+2.0% (6.5)% +5.1%

+6.1%

+81.4%

Group Global Banking +8.9%


FY2018: 9,336 FY2019: 9,746

FY2018: 6,126 FY2019: 6,671

Note:

Net income & PPOP for Group includes “Head Office & Others” expenditure of RM826.2 million for FY2018 and RM746.5 million for FY2019.

RM

million

+9.6% (0.9)% (60.1)% (>100)% +24.6%

+19.5%

24

6,526

3,222 2,734

912 84

447

7,226

3,410 3,167

884 163

636



Markets




FY2018

FY2019

17,136

10,320

5,282

312 12 1,163

17,515

10,408

5,261

260 11 1,287



Markets




FY2018

FY2019

Net Fund Based Income

Group Global Banking (1.3)%

Net Fee Based Income

(16.7)% (9.5)% +0.9% (0.4)% +10.6%

FY2018: 5,606 FY2019: 5,532


FY2018: 3,730 FY2019: 4,214

Segmental Performance of Businesses: FY2019 (2/2)

Note:

Net fund based income includes “Head Office & Others” income of RM46.2 million for FY2018 and RM288.1 million for FY2019.

Net fee based income includes “Head Office & Others” expenditure of RM872.4 million for FY2018 and RM1.0 billion for FY2019.

+15.8% +5.8%

RM

million

RM

million

+10.7%

+2.2%

(3.1)% +94.7% +42.4%

25

P&L Summary: QoQ

Note:

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

RM million4Q

FY2019

3Q

FY2019

2Q

FY2019

1Q

FY2019

Net fund based income 4,518.9 4,522.2 4,166.8 4,306.9

Net fee based income 1,974.0 1,976.0 1,722.9 1,553.1

Net operating income 6,492.9 6,498.2 5,889.7 5,860.0

Overhead expenses (2,969.1) (2,963.6) (2,821.7) (2,807.6)

Personnel Costs 1,601.5 1,680.0 1,656.6 1,686.9

Establishment Costs 534.9 480.8 448.7 441.3

Marketing Expenses 147.4 157.5 151.1 140.7

Administration & General Expenses 685.3 645.3 565.3 538.6

Pre-provisioning operating profit (PPOP)1 3,523.8 3,534.6 3,068.0 3,052.5

Net impairment losses (298.9) (934.9) (452.3) (637.3)

Operating profit 3,224.9 2,599.7 2,615.7 2,415.1

Profit before taxation and zakat (PBT) 3,263.6 2,648.3 2,651.6 2,450.4

Net Profit 2 2,449.1 1,998.8 1,940.9 1,809.3

EPS - Basic (sen) 21.8 17.8 17.5 16.4

26

Income Statement for Insurance and Takaful Business


FY2019

3Q

FY2019

2Q

FY2019

1Q

FY2019QoQ

Net interest income 1,286.2 1,163.0 10.6% 324.4 327.4 322.0 312.3 (0.9)%

Net earned premiums 6,760.6 5,933.6 13.9% 1,761.2 1,749.1 1,623.8 1,626.5 0.7%

Other operating income 1,546.8 (335.3) (>100)% (46.4) 496.7 595.2 501.4 (>100)%

Total operating income 9,593.6 6,761.3 41.9% 2,039.2 2,573.2 2,541.0 2,440.2 (20.8)%

Net insurance benefits & claims incurred, net fee

& commission expenses, change in expense

liabilities and life & takaful fund tax

(7,683.6) (5,165.7) 48.7% (1,479.2) (2,151.8) (2,086.9) (1,965.7) (31.3)%

Net operating income 1,910.0 1,595.7 19.7% 560.0 421.4 454.1 474.5 32.9%

Overhead expenses (930.1) (807.4) 15.2% (222.2) (248.2) (239.9) (219.7) (10.5)%

PPOP 979.9 788.3 24.3% 337.8 173.2 214.2 254.8 95.1%

Net impairment losses (35.0) 9.8 (>100)% (9.5) (8.7) (7.4) (9.5) 9.3%

Operating profit 944.9 798.1 18.4% 328.3 164.5 206.8 245.3 99.6%


FY2019

3Q

FY2019

2Q

FY2019

1Q

FY2019QoQ

Net insurance benefits & claims incurred, net fee

& commission expenses, change in expense

liabilities and life & takaful fund tax

(7,683.6) (5,165.7) 48.7% (1,479.2) (2,151.8) (2,086.9) (1,965.7) (31.3)%

Less: intercompany elimination 312.3 258.1 21.0% 70.8 97.8 72.5 71.2 (27.6)%

Total net insurance benefits & claims incurred,

net fee & commission expenses, change in

expense liabilities and life & takaful fund tax

(7,371.3) (4,907.5) 50.2% (1,408.4) (2,054.0) (2,014.4) (1,894.5) (31.4)%

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

and life & takaful fund tax

27

28% 31% 41%

Upstream Midstream Downstream

82% 14% 2%2%

Normal Watchlist Special Mention Account GIL

70% 12% 1% 17%

Normal Watchlist Special Mention Account GIL

High Rise Residential,

30.7%

Landed Residential,

18.1%Malls, 8.4%

Offices, 4.9%

Hotels, 5.8%

Others, 32.1%

Exposure to Oil & Gas and Real Estate Sectors: 31 December 2019

Group Exposure to Direct & Indirect Oil & Gas Borrowers Real Estate Exposure to Non-Retail Malaysian 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:

• 82% is from midstream

Maybank Group Malaysia Singapore Indonesia Others

2.79% 1.77% 0.73% 0.08% 0.21%

Note:

Funded-only loans exposure is 2.25% for GroupRM33.53 bil

(or 10.68% of Malaysia

Gross Loans)

Borrowers’ Status:

Note:

Funded-only loans exposure is 9.82%

‘Others’ include Land, Industrial Buildings & Factories, Other Residential

and Other Commercial

Of GIL breakdown:

• 40% is from combined exposure

to malls and hotels

• 6% is from high rise residential

Of Watchlist breakdown:

• 25% is from high rise residential

• 34% is from combined exposure

to malls, hotels and offices

28

Group Gross Loans Growth: 31 December 2019

Note:

¹ Rebased loan growth figures are based on adjusted 31 December 2018 position in line with migration of client accounts, effective 1 January 2019

% of

Portfolio

31 Dec

2019

30 Sep

2019QoQ

30 Jun

2019

31 Mar

2019

31 Dec

2018YoY

Group Gross Loans 523.5 525.0 (0.3)% 525.6 516.9 517.3 1.2%

Malaysia (RM billion) 60% 314.1 308.0 2.0% 302.9 299.4 299.3 4.9%

Community Financial Services (reported) 74% 231.6 226.4 2.3% 222.5 218.3 216.0 7.2%

Community Financial Services (rebased)¹ 74% 231.6 226.4 2.3% 222.5 218.3 215.9 7.3%

Global Banking (reported) 26% 82.7 81.7 1.3% 80.5 81.2 83.3 (0.7)%

Global Banking (rebased)¹ 26% 82.7 81.7 1.3% 80.5 81.2 83.4 (0.8)%

International (RM billion) 39% 203.0 210.4 (3.5)% 216.3 211.2 211.8 (4.2)%

Singapore (SGD billion) 61% 40.7 41.8 (2.7)% 42.9 42.6 42.4 (3.9)%

Community Financial Services 54% 22.1 22.7 (2.5)% 22.9 22.8 22.6 (1.9)%

Global Banking 46% 18.5 19.0 (2.8)% 19.9 19.7 19.7 (6.0)%

Indonesia (IDR trillion) 18% 127.0 133.8 (5.1)% 139.2 140.5 138.3 (8.2)%

Community Financial Services 72% 91.3 95.4 (4.3)% 98.4 101.1 103.3 (11.7)%

Global Banking 28% 35.5 38.2 (6.9)% 40.5 39.1 34.7 2.3%

Other markets (RM billion) 21% 41.7 44.1 (5.4)% 44.5 42.3 43.7 (4.6)%

Investment banking (RM billion) 1% 6.5 6.7 (3.4)% 6.4 6.3 6.3 2.6%

29

Note:

¹ Rebased loan growth figures are based on adjusted 31 December 2018 position in line with migration of client accounts, effective 1 January 2019

Malaysia Loans Growth: 31 December 2019

RM billion% of

Portfolio

31 Dec

2019

30 Sep

2019QoQ

30 Jun

2019

31 Mar

2019

31 Dec

2018YoY

Community Financial Services (reported) 74% 231.6 226.4 2.3% 222.5 218.3 216.0 7.2%

Community Financial Services (rebased)¹ 74% 231.6 226.4 2.3% 222.5 218.3 215.9 7.3%

Consumer 60% 187.0 183.1 2.2% 179.7 176.8 174.4 7.2%

Total Mortgage 31% 97.6 94.0 3.8% 91.5 89.5 87.5 11.6%

Auto Finance 16% 49.9 49.4 1.0% 48.9 48.3 47.9 4.2%

Credit Cards 3% 7.8 7.5 3.3% 7.4 7.3 7.6 2.8%

Unit Trust 9% 29.5 29.8 (1.1)% 29.6 29.3 29.0 1.8%

Other Retail Loans 1% 2.3 2.3 (0.4)% 2.4 2.4 2.5 (9.3)%

Business Banking + SME (reported) 14% 44.5 43.3 2.7% 42.8 41.5 41.5 7.2%

Business Banking + SME (rebased)¹ 14% 44.5 43.3 2.7% 42.8 41.5 41.5 7.4%

SME (reported) 6% 19.1 18.4 3.9% 17.8 17.2 17.1 11.6%

SME (rebased)¹ 6% 19.1 18.4 3.9% 17.8 17.2 16.8 13.8%

Business Banking (reported) 8% 25.4 25.0 1.9% 25.0 24.3 24.4 4.1%

Business Banking (rebased)¹ 8% 25.4 25.0 1.9% 25.0 24.3 24.7 3.0%

Global Banking (Corporate) (reported) 26% 82.7 81.7 1.3% 80.5 81.2 83.3 (0.7)%

Global Banking (Corporate) (rebased)¹ 26% 82.7 81.7 1.3% 80.5 81.2 83.4 (0.8)%

Total Malaysia 314.1 308.0 2.0% 302.9 299.4 299.3 4.9%

30

Group Deposits Growth: 31 December 2019

% of

Portfolio

31 Dec

2019

30 Sep

2019QoQ

30 Jun

2019

31 Mar

2019

31 Dec

2018YoY

Group Gross Deposits 565.3 566.2 (0.2)% 560.9 557.6 556.3 1.6%

Malaysia (RM billion) 62% 351.5 356.1 (1.3)% 351.2 343.9 343.8 2.2%

Savings Deposits 13% 45.0 44.5 1.2% 44.5 43.9 42.8 5.2%

Current Accounts 26% 91.0 88.9 2.4% 87.0 84.9 90.3 0.7%

Fixed Deposits 38% 133.8 146.3 (8.6)% 146.5 131.4 125.8 6.3%

Others 23% 81.7 76.5 6.8% 73.2 83.7 84.8 (3.7)%

International 38% 214.7 211.0 1.8% 211.3 215.2 214.1 0.2%

Singapore (SGD billion) 68% 48.3 47.6 1.5% 45.6 46.7 46.2 4.6%


Current Accounts 13% 6.1 6.2 (0.7)% 7.0 7.3 7.6 (19.8)%

Fixed Deposits 71% 34.3 34.1 0.6% 31.5 32.4 31.5 8.7%

Indonesia (IDR trillion) 15% 110.9 115.7 (4.2)% 125.6 128.7 117.0 (5.3)%


Current Accounts 18% 19.5 21.8 (10.5)% 21.9 22.1 24.4 (20.3)%

Fixed Deposits 63% 70.4 73.8 (4.6)% 84.1 88.1 72.7 (3.1)%

31

92.7% 92.4% 93.4% 92.5% 92.4%

35.9%34.5% 34.9% 34.6% 35.5%

33.6%32.4% 32.6% 32.5% 33.2%


LDR CASA CASA (without IA)

87.6% 87.6% 86.9% 87.1% 90.0%

38.7% 37.5% 37.5% 37.5% 38.7%

34.9% 34.0% 33.8% 34.0% 34.9%


LDR and CASA Ratio

Singapore Indonesia

Group Malaysia

113.8%105.4% 107.0%

112.2% 111.3%

37.9%31.6% 33.0% 36.2% 36.5%

96.5%90.1% 92.3% 96.3% 94.1%


LDR (Bank Level)

91.8% 91.2% 94.0%87.9% 84.3%

31.7% 30.6% 30.8% 28.4% 29.1%


Note:

• Group and Indonesia LDR excludes loans to banks and FIs

• Group and Malaysia LDR include investment accounts totaling RM20.74 billion for 31 Dec 2019, RM20.14 billion for 30 Sep 2019, RM21.65 billion for 30 Jun 2019, RM22.80 billion for 31

Mar 2019 and RM23.57 billion for 31 Dec 2018.

32

USD, 40%

RM, 22%

IDR, 9%JPY, 9%

HKD, 8%

CNY, 3%SGD, 3%

Others, 6%

517.3525.0 523.5

Dec 18 Sep 19 Dec 19

Borrowings, 5%

Capital Instruments, 2%

Customer Funding, 76%

FI Deposits, 6%

Equity, 11%

315.3 318.4 310.3

17.523.4

27.3

41.842.7 42.9

Operational RWA Market RWA

Credit RWA Gross Loans

RWA Optimisation and Funding Management

Group Gross Loans & Group RWA

RM

billion

RM743.9

billion

RM53.5

billion

Funding Breakdown

Note:

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

By maturity:

≤ 1 Year 33%

> 1 Year 67%

Borrowings and

Capital Instruments

by Currency

Growth (%) YoY QoQ

Group Gross Loans 1.2% (0.3)%

Total Group RWA 1.5% (1.1)%

- Group Credit RWA (1.6)% (2.6)%

374.6384.5 380.4

33

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 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period. Interim and Final Dividend for FY2019 are fully in cash.4 Quarterly positions of Return on Equity, Net Interest Margin and Net Charge Off Rate are on an annualised basis

% FY2019 FY2018 YoY4Q

FY2019

3Q

FY2019QoQ

2Q

FY2019

1Q

FY2019

4Q

FY2018YoY

Return on Equity 4 10.9 11.4 (0.5)% 13.0 10.5 2.5% 10.2 9.7 13.0 0.0%

Net Interest Margin 4 (bps) 2.27 2.33 (6) bps 2.29 2.32 (3) bps 2.19 2.30 2.38 (9) bps

Fee to Income Ratio 29.2 27.6 1.6% 30.4 30.4 0.0% 29.3 26.5 29.3 1.1%

Loans-to-Deposit Ratio 1 92.4 92.7 (0.3)% 92.4 92.5 (0.1)% 93.4 92.4 92.7 (0.3)%

Cost to Income Ratio 2 46.7 47.5 (0.8)% 45.7 45.6 0.1% 47.9 47.9 48.9 (3.2)%

Asset Quality

Gross Impaired Loans Ratio 2.65 2.41 24 bps 2.65 2.67 (2) bps 2.62 2.48 2.41 24 bps

Loans Loss Coverage 77.3 83.6 (6.3)% 77.3 76.7 0.6% 78.0 82.6 83.6 (6.3)%

Net Charge Off Rate 4 (bps) (44) (32) (12) bps (26) (74) 48 bps (30) (47) (7) (19) bps

Capital Adequacy 3

CET1 Capital Ratio 14.58 14.51 7 bps 14.58 14.44 14 bps 14.23 14.55 14.51 7 bps

Total Capital Ratio 18.23 18.51 (28) bps 18.23 18.07 16 bps 17.98 19.00 18.51 (28) bps

34

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:








Financial Results: 4Q FY2019 and Full Year 2019 ended 31 December 2019

35

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 Dec’19 for Total Core Retail Deposits, Retail

CASA, Retail Savings, Demand Deposits and Retail Fixed Deposits are 17.0%, 25.5%,

27.8%, 21.5% and 13.7% respectively (against MBB retail IA)

^^ Excluding non-financial transactions as per BNM guidelines

Loans

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

Auto (Hire Purchase + Block Discounting + Floor Stocking) 28.4% 28.7% 28.9% 29.3% 29.6%

Total mortgage * 13.5% 13.6% 13.6% 13.7% 14.0%

Credit cards ** 19.2% 19.1% 19.0% 18.7% 18.6%

Unit trust 49.6% 49.5% 49.2% 48.7% 48.5%

Deposits

Total deposits *** 18.4% 18.2% 17.8% 18.0% 17.8%

Total core retail deposits ^ 17.2% 16.9% 16.8% 16.7% 16.5%

Retail CASA ^ 25.0% 25.1% 24.9% 24.7% 24.3%

Retail savings ^ 28.5% 28.4% 28.3% 27.9% 27.8%

Demand deposits ^ 18.9% 19.0% 18.9% 18.8% 18.2%

Retail fixed deposits ^ 13.5% 13.0% 12.9% 12.9% 12.8%

Channels

Internet banking - Subscriber base 39.7% 39.6% 40.6% 40.1% 39.6%

Mobile banking - Subscriber base 30.7% 31.3% 31.8% 31.5% 31.3%

Internet banking - Transaction Volume ^^ 52.8% 50.7% 50.7% 50.9% 51.0%

Mobile banking - Transaction Volume 66.7% 62.9% 62.6% 62.9% 63.0%

Branch network ^^^ 19.2% 19.2% 19.3% 19.3% 19.4%

Dec-18 Dec-19Sep-19Mar-19 Jun-19Market share

36

Dec 18 Sep 19 Dec 19 Dec 18 Dec 19 Dec 18 Dec 19

137.1 137.9 138.9

63.5 62.1 65.4


Consumer BB + RSME

Community Financial Services: Overview of Malaysia Portfolio

Note:

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

• TFA for Individual customers amounted to RM327.7 billion as at Dec’19, RM321.9

billion as at Sep’19 and RM313.7 billion as at Dec’18.

Wealth Management segment’s TFA grew 5.0% YoY to

RM215.5 billion

Total CFS loans on an upward trend of 7.2% YoY and 2.3%

QoQ.R

M b

illion

+2.2% QoQ

Total CFS deposits increased by 1.8% YoY driven by CASA

growth of 4.0%

+1.8% YoY

+14.6% YoY

Maybank2u 1-month active users grew 14.6% YoY driven

by growth in mobile users

174.4 183.1 187.0

41.5 43.3 44.5


Consumer BB + RSME

+2.3% QoQ

+7.2% YoY

+5.0% YoY

+2.5% QoQ

+40.1% YoY

Maybank2u 1-month active users

of which Mobile 1-month

active users5.24

RM

billion

RM

billion

In m

illion

6.01

2.683.76

216.0 226.4

205.3

200.6 200.0231.6204.3

210.3 215.5

37

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:









38

11.3

26.9

45.1

11.3

25.3

45.1

11.0

25.1

46.6


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 Dec’19 is 22.7%

Term Loan

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

Group Securities Portfolio¹ grew 8.4% YoYTotal Corporate Banking loans in Malaysia decreased 0.7%

YoY to RM82.7 billion

Short Term

Revolving

Credit

Trade

Finance

and Others(2.2)% YoY

+3.3% YoY

(6.7)% YoY

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

initial recognition (part of FVTPL)

51.5 51.9 51.7 52.1 51.1

40.6 45.8 50.161.9

52.5

56.658.1 58.5

59.360.0

22.724.0 26.2

21.220.76.6

6.68.4

7.98.5


Govt. Securities - Domestic Govt. Securities - Foreign

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

Others

+8.4% YoY

RM

billion

178.0186.5 194.9

202.4 192.8

39

Malaysia34%

Singapore36%

Thailand14%

Indonesia4%

Philippines2%

Hong Kong5%

Others5%

Global Banking: Overview of Group Investment Banking Portfolio

FY2019 Fee-based Income for Malaysia

Brokerage Fees42%

Arranger Fees30% Underwriting &

Placement Fees7%

Advisory Fees9%

Agency/ Guarantee Fees

4%

Other Fee Income8%

FY2019 Total Income Breakdown by Country

RM1,144.4

million

Note:

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

FY2019 Brokerage Market Share by Country

Country Rank Market ShareTrading Value

(USD billion)

Malaysia 4 8.1% 27.8

Singapore 15 3.4% 18.1

Thailand 3 6.1% 61.8

Indonesia 9 3.3% 14.0

Philippines 5 5.0% 4.7

Hong Kong Tier 3 0.1% 10.7

Vietnam >10 2.5% 3.5

40

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:









41

Maybank Singapore: P&L Summary

SGD million FY2019 FY2018 YoY

Net fund based income 761.13 752.81 1.1%

Net fee based income 376.49 355.78 5.8%

Net income 1,137.62 1,108.59 2.6%

Overhead expenses (454.93) (439.13) 3.6%

Operating profit 682.69 669.46 2.0%

(Loss)/ Profit before taxation 8.34 415.55 (98.0)%

Net fund based income registered 1.1% growth YoY, attributed to the higher average volume of interest earning assets

albeit at lower margin with the trending up of funding cost.

Fee based income improved 5.8% YoY. Excluding the one–off gain impact from property disposal in FY2018, fee income

would have increased 11.3% YoY, mainly from wealth management income on the back of higher unit trust commission and

bancassurance fees.

Overhead expenses increased 3.6% led by higher depreciation expenses arising from the newly implemented FRS 16

accounting treatment and human capital investment.

FY2019 managed a small profit before taxation of SGD 8.3 million after cushioning higher impairment allowance.

42

6.9 5.4 5.3

15.5 15.8 15.9

7.8 8.1 8.8

15.9 18.2 18.3


Consumer -Time Deposits

Consumer CASA

Business TimeDeposits

Business CASA

48.3

7.0 7.4 7.9

7.6 6.2 6.1

31.5 34.1 34.3


Time Deposits

Demand Deposits

Savings

Diversified Loan Portfolio

4.5% 3.4% 2.3%-0.1% -3.9%

5.3% 3.8% 3.9% 4.7% 4.2%


Maybank Singapore Growth Industry Growth

Maybank Singapore: Overview of Loans and Deposits Portfolio

% YoY change

Consumer

56 %

Corporate

44 %

SG

D b

illion

Consumer deposits’ composition rose to 56% of total deposits

CASA Ratio:

29.1%SG

D b

illion

Stronger time deposit growth lowered overall CASA ratio to

29.1% from 31.7% YoY

Consumer deposits rose SGD3.4 billion YoY, contributed mainly by

FD growth.

Business deposits fell SGD1.2 billion YoY due to a decline in

demand deposits, largely due to withdrawals from non bank

financial companies.

46.2

+4.6% YoY

47.6

Maybank Singapore loans contracted YoY. Business loans

growth was tapered compared to industry growth, in view of

the weakening economic conditions.

SGD Billion% of

Portfolio

31 Dec

2019

30 Sep

2019QoQ

31 Dec

2018YoY

CFS 54% 22.1 22.7 (2.5)% 22.6 (1.9)%

Consumer 39% 16.0 16.4 (2.4)% 16.4 (2.3)%

Housing Loan 26% 10.6 10.9 (3.0)% 10.9 (2.6)%

Auto Loan 6% 2.4 2.5 (2.1)% 2.4 1.6%

Cards 1% 0.4 0.4 2.8% 0.4 (4.7)%

Others 6% 2.6 2.6 (1.1)% 2.7 (3.9)%

Non-Individuals 15% 6.1 6.3 (2.7)% 6.2 (1.1)%

RSME 4% 1.5 1.5 0.1% 1.4 6.1%

Business Banking 8% 3.2 3.4 (5.6)% 3.4 (6.1)%

Others 3% 1.5 1.5 1.2% 1.4 3.8%

Global Banking 46% 18.5 19.0 (2.8)% 19.7 (6.0)%

Total 100% 40.7 41.8 (2.7)% 42.4 (3.9)%

43

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:









44

Maybank Indonesia: P&L Summary

IDR billion FY2019 FY2018 YoY4Q

FY2019

3Q

FY2019QoQ

Net Fund Based income 8,168 8,100 0.8% 2,043 2,101 (2.8)%

Net Fee Based income 2,587 2,267 14.1% 725 695 4.3%

Net income 10,755 10,367 3.7% 2,768 2,797 (1.0)%

Overhead expenses (6,397) (6,023) 6.2% (1,541) (1,673) (7.9)%

Personnel (2,571) (2,461) 4.5% (647) (659) (1.8)%

General and Administrative (3,826) (3,562) 7.4% (894) (1,014) (11.9)%

Operating profit 4,358 4,344 0.3% 1,227 1,123 9.2%

Provisions Expenses (1,781) (1,311) 35.9% (188) (619) (69.7)%

Non Operating Income/(Expense) 22 3 >100% 12 2 >100%

Profit Before Tax and Non-Controlling Interest 2,599 3,036 (14.4)% 1,051 507 >100%

Tax and Non-Controlling Interest (757) (841) (10.0)% (317) (154) >100%

Profit After Tax and Non-Controlling Interest 1,843 2,195 (16.0)% 733 353 >100%

EPS - Basic (IDR) 24.18 30.44 (20.6)% 9.62 4.63 >100%

45

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 Dec-19 Sep-19 Dec-18 YoY

Profitability & Efficiency

Return On Assets 1.45% 1.13% 1.74% (0.29)%

Return On Equity (Tier 1) 7.73% 6.26% 10.21% (2.48)%

Net Interest Margin 5.07% 4.97% 5.24% (0.17)%

Cost to Income Ratio 59.48% 60.80% 58.10% 1.38%

Asset Quality

NPL - Gross 3.33% 2.63% 2.59% 0.74%

Liquidity & Capital Adequacy

LCR 146.49% 173.84% 124.94% 21.55%

CET 1 19.54% 18.24% 16.85% 2.69%

CAR 21.38% 20.09% 19.04% 2.34%

IDR Trillion% of

Portfolio

31 Dec

2019

30 Sep

2019QoQ

31 Dec

2018YoY

CFS 74% 90.5 94.4 (4.2)% 102.3 (11.6)%

CFS Retail 35% 42.2 42.5 (0.7)% 44.0 (4.2)%

Auto Loan 19% 23.5 23.7 (0.7)% 24.9 (5.5)%

Mortgage 12% 15.0 15.3 (1.7)% 15.7 (4.3)%

CC + Personal

Loan3% 3.2 3.1 3.6% 3.1 5.9%

Other loans 1% 0.4 0.4 0.6% 0.4 2.8%

CFS Non-Retail 39% 48.3 51.9 (7.0)% 58.3 (17.1)%

Business Banking 20% 24.7 28.1 (12.1)% 34.0 (27.3)%

RSME 19% 23.6 23.8 (0.9)% 24.3 (2.9)%

Global Banking 26% 32.1 35.4 (9.3)% 31.0 3.4%

Total 122.6 129.8 (5.6)% 133.3 (8.1)%

46

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:









47

33.3

47.5

39.1

6.8

28.8

21.3

36.4

54.2

42.2

7.9

30.7

20.6

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

Dec-18

Dec-19

Maybank Islamic, 60.7%

Maybank Conventional,

Malaysia, 39.3%

Year Contribution

Dec 2018 58.7%

Mar 2019 59.7%

Jun 2019 60.2%

Sep 2019 60.9%

Dec 2019 60.7%

Islamic Banking: Performance Overview

Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM192.0

billion

Maybank Islamic Contribution to Maybank Malaysia Loans

and Financing as at December 2019

Note: Figures are as per latest segmentation breakdown

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

Singapore

RM million FY2019 FY2018 YoY

Total Income 4,976.6 5,118.1 (2.8)%

Profit Before Tax 3,692.4 3,033.7 21.7%

Financing & Advances 202,930.6 186,709.4 8.7%

Deposits & Investment Account: 191,673.4 180,595.2 6.1%

Deposits from Customers 170,935.7 157,030.1 8.9%

Investment Account 20,737.7 23,565.1 (12.0)%

RM

billion

Maybank Islamic: Key Financial Ratios

Key Financial Ratios FY2019 FY2018

Total Capital Ratio (TCR) 18.84% 22.55%

Net Profit Margin (YTD) 1.75% 1.91%

Cost to Income Ratio (CIR) 32.49% 32.29%

Direct FDR1 96.1% 93.9%

Note:

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

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

6%

(3%)

CFS:11% GB:2%

17%

8%

14%

9%

48

Key Products Dec 19 Dec 18

Automobile Financing 47.7% 44.9%

Home 26.5% 26.4%

Term financing 28.5% 28.4%

Maybank Islamic ranks No.1 by Asset Market Share

in Malaysia

Islamic Banking: Market Share

Market Share by Product (Malaysia) Maybank Islamic Market Share

30.9% 31.0% 31.0% 31.2% 31.1%

28.4%27.8%

28.3%28.7%

27.8%

Dec 18 Mar 19 Jun 19 Sep-19 Dec-19

Financing Deposits & Investment Accounts

MalaysiaAsset Market Share

Sep 19Rank

Maybank Islamic 29% 1

CIMB Islamic 13% 2

RHB Islamic 9% 3

Source: Latest BNM Monthly Statistical Bulletin

Sukuk League Table Ranking December 2019

Source : Latest BNM Monthly Statistical Bulletin

Source: Bloomberg

Source: Latest BNM monthly statistical bulletin & respective Bank’s Financial

Statements

Global Sukuk League

Table Ranking

Market

Share (%)

Amount

(USD million)Issues

#1 Maybank 15.23% 7,600 168

MYR Sukuk League

Table Ranking

Market

Share (%)

Amount

(USD million)Issues

#1 Maybank 40.26% 7,014 148

49

36.1 40.5

Dec 18 Dec 19

8.0% 7.7% 7.4% 7.5%

8.0% 8.0% 7.7% 7.2%

10.4% 10.5% 10.4% 10.2%

12.8% 11.8% 11.7% 13.7%

2016 2017 2018 2019

Etiqa Allianz HL-MSIG AmGeneral

431.8 446.0

222.3 220.1

171.5279.2

FY2018 FY2019

Life/Family General Shareholder's Fund

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)

+14.5% YoY +12.2% YoY

Note: Market Share is for period Oct – Sep of every year (Source: LIAM / ISM Statistics)

825.6

RM

million

RM

billion

945.3

No. 4 in

Life/Family

(New Business)

7.6% 8.9% 11.5% 10.8%14.4% 13.6% 13.8% 16.9%

15.0% 14.5% 13.4% 13.6%

21.5% 21.5% 20.7% 19.3%

2016 2017 2018 2019

AIA Prudential GE 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 1,000 2,000 3,000 4,000 5,000

Total General

Misc

Personal Accident

MAT

Motor

Fire

Total Life & Family

Group Premium

Credit Premium

Regular Premium

Single Premium

RM Million

12M FY19

12M FY18

14.8%

27.3%

3.8%

14.0%

9.8%

21.1%

13.8%

FY2019

7.9%

36.4%

4.8%

8.6%

24.7%

Total Net Adjusted

Premium

FY2018

50

Table of Contents

Executive Summary 2

Results Overview 5


Appendix:









51

Maybank’s Sustainability Strategy (1/3)

20/20 Sustainability Plan Our sustainability strategy is anchored on our mission of Humanising Financial Services. We report our sustainability

performance against our 20/20 Sustainability Plan, a five-year sustainability strategy approved in 2014 by the Maybank Group Board of Directors. Our performance is published in our annual Sustainability Report.

This plan aims to generate long-lasting impact and value across three pillars: Community and Citizenship, Our People, and Access to Products and Services; and includes 10 commitments.

Three Pillars: Community and Citizenship Our PeopleAccess to Products and

Services

10 Commitments:

Link to United

Nation’s

Sustainable

Development

Goals:

Investing for impact• Education

• Community empowerment

• Arts and culture

• Environmental diversity

• Healthy living

• Disaster relief

Employee engagement

Training and development

Safety, health and well-being

Talent and leadership

Diverse and inclusive workplace

Commitment to the

environment

Focus on customers

Digitalisation

Product stewardship

Note: Our sustainability reporting is guided by the Global Reporting Initiative Sustainability Reporting Standards and the Bursa Malaysia Securities Berhad Main Market Listing

Requirements relating to the Sustainability Statement in Annual Reports.

52


Maybank has been recognised over the years for its progressive advancements in the area of

sustainability. We are a key component of an increasing number of indices which track companies

adopting good environmental, social and governance (ESG) practices. Among some of the key

achievement/recognitions are:

MSCI ESG Ratings Rated “A” for 6 consecutive years.

Maybank is the only bank rated “A” among 5 largest peers

(including JPMorgan Chase & Co, Bank of America Corporation,

HSBC Holdings Plc and Citigroup Inc.) in 2019.

Rating attained from our customer centric initiatives such as

looking after retail customers’ rights and by being a regional

leader in providing digital banking services to customers.

FTSE RussellMaybank is a constituent of these indices in recognition of our

good corporate responsibility practices:

• FTSE4Good Bursa Malaysia Index

• FTSE4Good ASEAN 5 Index

• FTSE4Good Emerging Indexes

• FTSE All-World Green Revenues Index

• FTSE Asia Pacific Green Revenues Index

• FTSE Emerging ESG Index

• FTSE Emerging Green Revenues Index

Bloomberg Gender Equality IndexMaybank is the only Malaysian company which

made it to this list in 2017, 2018 and 2019

2018 Sustainable Business Awards

MalaysiaSpecial Recognition for Stakeholder

Engagement & Materiality category

FinanceAsia’s 2019 Asia’s Best

Managed Companies surveyBest ESG in Malaysia (ranked 1st)

53


Maybank Group’s Environmental, Social and Governance (ESG) Policy

Key Components

A Responsible Lending Guideline was initially established in 2015 to manage ESG risks.

This was expanded into an ESG Risk Management Framework and then endorsed as an ESG Policy in 2018, following the Board’s approval.

The Policy was then operationalised throughout the Group, with ESG risk assessments integrated into our day-to-day decisions in relation

to financing practices.

The ESG Policy was formulated in alignment with global standards and practices, such as the United Nations’ Human Rights Policy,

International Finance Corporation standards and global environmental standards.

Scope & Applicability ESG Risk Categories We Collaborate With

Environment• Climate change• Land usage• Water usage• Energy usage• Emissions and Waste• Natural Resource Conservation /

Sustainability

Social• Human rights• Employees rights & benefits• Workforce diversity• Products and services

responsibility• Community relations• Supply chain management• Corporate social responsibility• Consumer protection• Animal welfare

Governance• Corporate governance• Transparency and reporting• Financial sustainability• Stakeholders management

Business Activities

• Direct lending/financing

• Direct debt, equity and advisory

services

Lines of Business

• Corporate Banking

• Transaction Banking

• Global Markets

• Investment Banking (excluding

stock brokerage & margin

financing)

• Business Banking

• Retail SME

• Insurance & Takaful for non-

individuals

Black List Activities

Activities deemed not in line with our

core values and international best

practices

High ESG Risk Sectors

Includes:• Oil palm• Forestry and logging• Oil and gas• Mining and quarrying

An ESG Risk Acceptance Criteria has

been included as part of the application

of accommodation for these industries

Mandatory RAC Criteria:• National/International certifications

for sustainable practices• Regulatory approvals/licences by the

relevant government agencies for the

specified business operations• No adverse news which may result in

harm to the environment, or legal

claims, disputes, or product boycotts

affecting communities

• World Wide Fund for Nature

• International Finance Corporation

• Association of Banks in Singapore

• Malaysian Palm Oil Board

• Asia Pacific Loan Market

Association

• Lead players in specific relevant

sectors.

54

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

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