Luncheon Talk with Community Financial Services (CFS)Investor Day

8 March 2012

0www.maybank.com

Introduction

Recap of Our Journey, Aspirations & Accomplishments

FP2011 Financial Highlights & Market Share

Market Outlook & Key Focus Areas in 2012

S mmarSummary

CFS is the largest contributor to Group PBT with a contribution of 39.2% in FP2011

Maybank is Malaysia’s largest financial services group and a leading provider of consumer, SME and wholesale banking services, as well as insurance and takaful products.

Community Financial ServicesB

usin

ess

Segm

ent

Insurance and Takaful

Global Wholesale Banking

International Banking

% o

f FP

11*

PBT

**

39.2% 9.0%29.1% 22.7%

• Services the Group’s Consumer, SME and commercial/business b ki li

• Offers both general and life insurance and asset management services.

• Services the Group’s corporate clients under one single global

l i hi b ff i

• Operates in 17 countries of which 8 are in ASEAN. Others are in strategic

k h Chibanking clients

• Leading distribution network (physical & virtual) with a largest

• No .1 market position in general insurance and No.2 in Life/Family (new business)

relationship by offering corporate banking, advisory and trade and cash management products

markets such as China, Middle East, the UK and US.

• Although internationaltion

virtual) with a largest customer base.

• Provide shared distribution network for

business)

• Overall loss ratio of 60.0% is in line wihindustry level of 58.4%

products.

• Maybank-IB has a Top 3 position in Malaysia in debt and equity capital

• Although international business is largely wholesale, the Group is active in consumer business in our home

Des

crip

t

distribution network for the Group in Malaysia

industry level of 58.4%debt and equity capital markets, M&A and equity brokerage.

business in our home markets of Singapore and Indonesia, as well as in Philippines and Cambodia.

2* 6-Month Financial Period Ended 31 Dec 2011 **Before elimination of Group support cost of RM738.7 million

Across key segments, we are a segment leader & one of our objectives isto remain an undisputed leader in 2015

Our Vision

By 2015

To be a Regional Financial Services Leader

Our Mission Humanising Financial Services Across Asia

Providing people with convenient access to financingProviding people with convenient access to financing

Having fair terms and pricing

Advising customers based on their needs

Being at the heart of community

Strategic Objectives 1. Undisputed No. 1 Retail Financial Services provider

Being at the heart of community

Strategic Objectives in Malaysia by 2015

2. Leading ASEAN wholesale bank eventually expanding to Middle East China & IndiaEast, China & India

3. Undisputed Insurance & Takaful Leader in Malaysia & Emerging Regional Player

4. Truly regional organisation, with ~40% of pre-tax profit derived from international operations by 2015

5 Global leader in Islamic Finance

3

5. Global leader in Islamic Finance

The CFS business will play a key role in meeting the KPIs set for FY2012

Group KPIs for FY2012 CFS Priorities for FY2012

R E i 15 6%

Headline KPIs

Group KPIs for FY2012

Return on Equity 15.6%

Loans and Debt Securities Growth 15.2%

Continue to achieve growth in all key segments , and sustain leadership in domestic franchise

Group Loans Growth 16.2%

Other KPIs Continue with key transformation initiatives; branch network, service quality, RSME and segmentation

     Malaysia  13.6%

     Singapore 11.4%

q y, gmodel

Embark on selected regional initiatives

     BII 20.9%

Group Deposits Growth 11.6%

initiatives

4

Introduction

Recap of Our Journey, Aspirations & Accomplishments

FP2011 Financial Highlights & Market Share

Market Outlook & Key Focus Areas in 2012

S mmarSummary

CFS’ Aspirations and Journey towards 2015

To be the undisputed No. 1 retail and business financial services provider in Malaysia

2008 – 2010“Back to Basics” for C B ki

2010 - 2011Launch Community

Fi i l S i (CFS)

2012 to 2015Deliver CFS AspirationsConsumer Banking Financial Services (CFS) p

• Institutionalise segmentation business model

• Achieve best-in-class productivity and service level

Going back to fundamentals

productivity and service level

• Industrialise and re-engineer processes with IT investment, to achieve cost effectiveness

ld l l h l

• Launched new CFS organization

• Customer Segment focus• Going back to fundamentals

• Doing the “Right Thing Right”

• Product focused strategies

Tactical sales simulation

• Build optimal multi-channels distribution network

• Step-up innovation efforts

• Drive selected regional

• Ramp-up sales force to improve coverage

• Implemented tactical initiatives

R f h d th b d• Tactical sales simulation

• Customer service enhancement

• Drive selected regional initiatives

• Refreshed the brand

6

New House of Maybank With Integrated Shared Distribution Model

Retail IndividualOne-stop location for both One-stop relationship for Individual and SME needs

Serve all SMEs via the retail model, hence maximize

p pboth Individual and Business needs of customers.

Shared Distribution

,reach while lowering cost to serve.

Create better customer loyalty thus increasing stickiness.

Business/ SME

Distribution

Humanizing Financial S i Corporate

BankingSME Services

Helping local businesses to achieve their growth potential, thus supporting the economic development of the country.

End to end business banking value propositions: from start-up to End to end business banking value propositions: from start up to growth phase to corporatization.

7

Key Accomplishments since formation of the “New House”

Launched “single captainship model” at the regions with clear accountabilities,Launched single captainship model at the regions with clear accountabilities,

One Stop Centre – referring SME & BB businesses at the branches. Extended SME/BB reach resulting in increase in SME/BB deposits by ~70% in the last 18 months,

Rolled-out of our flagship branches with new hip and cool one-stop-shop concept and refreshed look,

Operationalised retail segmentation approach for HNW and Affluent – Net TFA grew 24.2% in the last 18 months,

Embedded Retail Credit into the “New House” structure – better alignment and quality of origination, and

Rolled-out of Nationwide Early Care Centre for pre-NPL and stepped-up recovery efforts –NPL reduced from 4.8% to 3.5% in 18 months (2.8% to 1.2% for consumer portfolio). Strengthened BB/SME asset quality and risk management framework.g q y g

8

CFS’ Past Performance and Growth

150.0 

Loans Deposits150.0  RM138.1B

41.2 50.8 

100.0 

Billion

24.7 25.8 

100.0 

M Billion

RM112.5BRM120.7B RM124.9B

75.5  70.9  75.2  83.7  87.3 

‐

50.0 RM 

62.2  67  76.4  87.9  94.9 

‐

50.0 RM

Jun‐08 Jun‐09 Jun‐10 Jun‐11 Dec‐11

SME & BB  Consumer 

Jun‐08 Jun‐09 Jun‐10 Jun‐11 Dec‐11

SME & BB  Consumer 

Revenue Pre-tax Profit

6 000

8,000 RM6,773m

RM6,225mFY07/08 to FY09/10 based Old FTP 

RM3,378m

RM2,760mFY07/08 to FY09/10 based on Old FTP 3 000

4,000 

3 852 4 042 4 370 4 234 4,711 

1,991 2,062 

2 000

4,000 

6,000 

RM M

illion

methodology & pre FRS139,

methodology & pre FRS139

1 918 1 993 1 836

972 1,542 

1 000

2,000 

3,000 

RM M

illion

3,852  4,042  4,370  4,234  ,

‐

2,000 

FY07/08 FY08/09 FY09/10 FY10/11 FY2011(Ann)

1,918  1,783  1,993  1,788  1,836 

‐

1,000 

FY07/08 FY08/09 FY09/10 FY10/11 FY2011(Ann)

SME & BB CSME & BB Consumer  SME & BB Consumer 

9

Recent Awards Won

√ 3 awards from Asian Banker √ High-Net Worth & Affluent Banking – 3 awardsBanking 3 awards

√ Cards – 8 awards from various parties, including Bank of the Year Award from Visa

√ Internet Banking - NEF-AwaniICT Awards; BPA Trailblazer including Bank of the Year Award from Visa ICT Awards; BPA Trailblazer Awards; Financial Insights Innovation Awards

√√ √ MGCC - CCAM Awards 2011 Bronze - Best People Contact Centre A d

√ Business Banking/SME - CGC Top SMI Supporter Award 2010 -Commercial Bank Category

Award

10

Introduction

Recap of Our Journey, Aspirations & Accomplishments

FP2011 Financial Highlights & Market Share

Market Outlook & Key Focus Areas in 2012

S mmarSummary

Key Financial Highlights FP2011

Revenue up 13.4% from corresponding period, driven by t l d d it th

P&L HighlightsJul-Dec '10

(6 Mth Period)

Jul-Dec '11

(6 Mth Period)YoY

Growthstrong loan and deposit growth as well as card business

Operating expenses kept in check i b tt t t d

RM 'm RM 'm %

Net interest income 2,343.0 2,621.5 11.9%

Non-interest income 641.9 764.8 19.1%via better cost management and increase in productivity

PBT grew 18%, contributed by

Gross Operating income 2,984.9 3,386.3 13.4%

Operating expenses 1,586.2 1,674.0 5.5%

Operating profit 1,398.7 1,712.3 22.4%strong operating profit, despite net write back in the corresponding period.

p g p

Provisioning 33.0 (23.4) -170.9%

Pre-tax Profit 1,431.7 1,688.9 18.0%

CFS deposits grew strongly YoY at 18.8%, driven mainly from a jump in deposits from SME and Business Banking

CIR 53.1% 49.4% -3.7%

Deposits Dec-10 Dec-11 YoY

Growth Banking

Strong consumer deposit growth not only via FD but also CASA, reflecting our low cost deposit

RM 'b RM 'b %

CFS 116.2 138.1 18.8%

- Consumer 78.7 87.3 11.0%

Growth

reflecting our low cost deposit strategy.- CASA 37.3 41.8 12.3%

- FD 40.5 45.1 11.3%

- SME & Business Banking 37.5 50.8 35.5%

12

Key Financial Highlights FP2011 (cont’d)

CFS loans grew 13.7% YoY, contributed by all key areas

Loans Dec-10 Dec-11

RM 'b RM 'b %

YoY

Growthby all key areas

Mortgage loan growth of 16.3% outpaced the market, and has turn around in terms of market share

RM b RM b %

CFS 106.1 120.7 13.7%

- Consumer 81.2 94.9 16.8%

Mortgage 36 2 42 1 16 3% around in terms of market share

SME growth turned-around in the last 6 months, with an annualised growth of 4 3%

- Mortgage 36.2 42.1 16.3%

- Auto Finance 24.3 27.7 13.9%

- Retail Lending 16.3 19.8 21.5%

Cards 4 4 5 2 18 7% of 4.3%

Asset Quality shows improvement in all sectors, with SME and BB Gross Impaired Loans improving by 4 4%

- Cards 4.4 5.2 18.7%

- SME & Business Banking 24.9 25.8 3.5%

- Retail SME 5.8 5.0 -13.8%

B i B ki 19 1 20 8 8 9% Impaired Loans improving by 4.4%- Business Banking 19.1 20.8 8.9%

Gross Impaired Loan Ratio Dec-10 Dec-11 Variance

CFS 5 6% 3 5% 2 1%CFS 5.6% 3.5% -2.1%

Consumer 2.4% 1.2% -1.2%

SME & Business Banking 16.2% 11.8% -4.4%

R t il SME 16 3% 10 4% 5 9%- Retail SME 16.3% 10.4% -5.9%

- Business Banking 15.4% 12.0% -3.4%

13

Market Share Improvement

Market Share: Dec’11 RankYoY Growth

s+1.6%+0.1%+1 2% 4

23

12 8%

13.2%

19.4%

Sh h

Housing(+OML)

Auto#AutoLo

ans +1.2%

4 6%

4+1.4% 2+0.6% 2

63 9%17.2%

15.9%

12.8%

Consumer Loan

Credit Cards

Shophouse

-4.6% 1+0.6% 117.9%

63.9%

Total Domestic Loan

Unit Trust

posi

ts

+2.0%-0.3% 2-0 1% 1

1

22 1%

18.1%

17.4%

Total CASA

Total Retail Deposits

Total Domestic …

De -0.1%

+3.2% 117.0%

22.1%

Total Fixed Deposits

Total CASA

Net

wor

k 0.0% 1

1-0.2%55.0%

19.0%

Internet Banking

Branch

14

Introduction

Recap of Our Journey, Aspirations & Accomplishments

FP2011 Financial Highlights & Market Share

Market Outlook & Key Focus Areas for 2012

S mmarSummary

Market Outlook 2012

2012 will be a slightly more challenging year as compared to 2011 with softer Malaysia economic growth as well as regulatory tightening,

However, still positive on the growth potential of the more affluent segments, as well as sectors that stand to benefit from ETP related activitiesas well as sectors that stand to benefit from ETP related activities,

Moderated our growth targets in 2012 versus 2011, in line with the industry g g youtlook, but still aim to outperform the market in key areas of business, and

Risk and cost management will be given higher priority in the yearRisk and cost management will be given higher priority in the year

16

Outlook on Key Business Segments

20 0%

Expect to grow in line with the industry which is expected to be appx 10%

Mortgage

10.0%

16.3%

11.2%9.9%

13.9% 13.7%

10.0%

15.0%

20.0%

rowth (%

)

which is expected to be appx 10%

Have strong loan stock in hand to support our 2012 targets

2.1%

5.7%

0.0%

5.0%

Dec‐08 Dec‐09 Dec‐10 Dec‐11

YoY Gr

Will target owner occupied / landed property in prime areas and affordable homes for buyers under government aided schemedDec‐08  Dec‐09 Dec‐10 Dec‐11  schemed

Auto Finance

Market Share (13.9%) (13.4%) (12.9%) (13.2%)

Expect dial down our growth rate slightly but still outperform the industry outlook of hi h i l di it

Auto Finance

15.3%

12.0%13.7% 13.9%15.0%

20.0%

h (%

)

high single digit

Positive on the new non-national and new national makes, capitalizing on our existing

d l / f l i hi

8.0%

5.5%

8.4% 8.7%

5.0%

10.0%

YoY Growth

strong dealers / manufacturer relationships

Market Share             (16.3%) (17.2%)  (18.4%) (19.4%)

0.0%

Dec‐08  Dec‐09 Dec‐10 Dec‐11 

17

Maybank Industry

Outlook on Key Business Segments (cont’d)

21 8%25.0%To keep up the momentum in 2012. Industry growth estimates around 10%

Cards

21.8%

8.0%

13.3%

18.7%

9.6%

14.2%

8.4%10.0%

15.0%

20.0%

Growth (%

)

Industry growth estimates around 10%

The key strategies will be on cross-selling to customers, especially in the high net worth and affluent segments as well as via 5.8%

0.0%

5.0%

10.0%

Dec‐08  Dec‐09 Dec‐10 Dec‐11 

YoY G and affluent segments, as well as via

product leadership and consistent promotional programmes.

Market Share (14.4%) (14.7%) (14.5%) (15.9%)

Retail Deposits

11.8%

8.8%

13.9%

10.0%

15.0%

h (%

)

Lost some ground in 2011 due to more cautious FD acquisition strategy.

A b l d h f 2012 t t t

Retail Deposits

9.8%7.1%

12.3%CASA Growth

7.4%

3.9%

6.9%6.4% 6.2%

5.0%

YoY Growth A more balanced approach for 2012, to target

higher FD growth in addition to CASA

Aim to gain back market share vis-à-vis i d t tl k f 10%

6.5%

0.0%

Dec‐08  Dec‐09 Dec‐10 Dec‐11industry outlook of appx 10%

Market Share                (20.9%) (18.4%) (18.5%) (18.1%)

18

Maybank Industry

Key Focus Areas for 2012 - Branch Network Transformation

#1 touch points in Malaysia market with 390 branches and 4 700 SST (ATM CDM etc)4,700 SST (ATM, CDM, etc)

Key strategy is to refresh our branches for greater customers convenience whilst continuing to expand our footprint in a cost effective manner

Key focus areas for 2012:

Ne look and feel for branchesTo refurbish another 19% (74) of our branches in line with the new brand and service elements

To pilot new light branch format while rationalizing some

New look and feel for branches

To pilot new light branch format while rationalizing some of the less profitable locations.

To roll out a new branch front end systems which will provide greater customer experience

Other key initiatives at branch level include service and productivity related improvementsproductivity related improvements

New light branch concept

19

Key Focus Areas for 2012 - Bankwide Service Quality Programmes

Service quality used to be one of the weaker links of Maybank

ECES Results

40%

46%50%

Maybank

However, concerted efforts has been carried out since 2008 and is starting to payoff

#13/18 #17/17 #15/17 #8/14

29%33% 34%

40%

30%

40%The bankwide service quality programmes for 2012 will focus on:

10%

20%Improving counter average waiting time. 80% of single transaction are now served within 2 min

Improving approval turn around time for mortgage

0%

Jun ‐ 08 Jun ‐ 09 Jun ‐ 10 Jun ‐ 11 Dec‐11

Improving approval turn-around time for mortgage, cards and BB/SME lending

Enhancing product knowledge of frontliners

Re-engineering our problem resolution and service recovery process

Dec 11 survey results show Maybank ahead of the main local competitors -Public, CIMB, RHB, Hong Leong & Ambank

Further strengthening service levels at MGCC (contact centre)

20

Key Focus Areas for 2012 - Operationalising segment focus strategy

Segment led business model for HNW and affluent in place since mid 2010: relationship approach with Total Number of Affluent & HNW Segment Customersp p ppclear segmented offerings.

Achieved total financial assets (TFA) growth of 24.2% and customer base of 14 6% in 18 months

34

360,803and customer base of 14.6% in 18 months.

HNW and affluent base now make up 52.8% of total retail TFA of Maybank.

314,78

329,129 

46,730 

3 

Key focus areas for 2012:

Expand another 35 private banking centres and 83 

Jun‐10 Dec‐10 Jun‐11 Dec‐11

T t l TFA f Affl t & HNW S t C t (RM'b)p p g

lounges nationwide to provide better service level

More aggressive recruitment of relationship bankers and customer relationship executives to increase

98.7 

Total TFA of Affluent & HNW Segment Customers (RM'b)

and customer relationship executives to increase client coverage and cross-sell efforts

Enhance segment value propositions with new

79.4 

84.7 

91.7 

products and other value added services etc

Jun‐10 Dec‐10 Jun‐11 Dec‐11

21

Key Focus Areas for 2012 - Strengthening BB and transforming Retail SME

Leads the middle market BB space with >20% market share.

Assets Growing, Gross Impaired Loans Trending Down

18.816.2 14.9

2027,000 

Strengthening BB portfolio further with a more targeted growth strategy, customer centric approach as well as more sophisticated

25,208  25,276 

24,689  24,554 

25,807 13.0 13.011.8

10

15

25,000 

26,000 

approach as well as more sophisticated offerings. Aim to outgrow industry in 2012.

Transforming Retail SME business into a more f i dl d ff i il lik

24,222 

0

5

23,000 

24,000 

customer friendly and cost effective retail like business model. Started in 2011 with the following targeted to be completed in 2012:

Sep‐10 Dec‐10  Mar‐11 Jun‐11 Sep‐11 Dec‐11

Loans Outstanding  (RM mil) Gross Impaired Loan (%)

Scorecard approach to lendingFull leverage on the branch network for business originationCentralised support functions where Centralised support functions, where relevant

Emphasis on asset quality has yielded results and will continue to be a strong focus

22

Other Key Focus Areas for 2012

Process reengineering with centralisation of back office functions to enable better frontline productivity as well as lower cost to serve E g loan origination asset quality frontline productivity as well as lower cost to serve. E.g. loan origination, asset quality control and account servicing

Leverage on Group’s IT Transformation programmes (ITTP) to deliver better service with g p p g ( )lower cost on a sustainable basis. Branch Front-End (BFE) and Regional Credit Cards Systems initiatives currently underway.

Strategic cost management programmes, focusing on controlling discretionary spending as well as longer term cost structure via network rationalization and staff productivity etc

I i i h i d bil b ki i i l d hiInnovation in the internet and mobile banking, to maintain our leadership

Regionalisation: focusing on cards and payments business

End-to-end risk management: enhancing credit scoring models, new operational risk system, portfolio management framework and deeper risk analytics capabilities etc.

23

Introduction

Recap of Our Journey, Aspirations & Accomplishments

FP2011 Financial Highlights & Market Share

S mmar

Market Outlook & Key Focus Areas for 2012

Summary

Summary

CFS h t d d t ib t d t th t M b k G lt i th l t f CFS has stepped-up and contributed to the strong Maybank Group results in the last few years,

The “New House” formed with BB and SME under CFS has begun to show results in terms The New House formed, with BB and SME under CFS has begun to show results in terms of cross-segments and shared distribution synergies,

With the current momentum strong sales engine and loans stock in hand we are With the current momentum, strong sales engine and loans stock in hand, we are optimistic on outperforming the market in 2012, despite moderating our growth,

Embarking on longer term strategic initiatives to build sustainability: optimised multi-g g g y pchannels network, service quality, ITTP, industrialisation programmes, as well as stronger risk management capabilities, and

Commencing few regionalisation initiatives that have clear cross-border synergies.

25

MALAYAN BANKING BERHAD14th Floor, Menara Maybank100, Jalan Tun Perak50050 Kuala Lumpur, MalaysiaTel : (6)03-2070 8833

www.maybank.com

Investor Relations Contact

Dato’ Khairussaleh RamliGroup Chief Financial OfficerContact: (6)03-2074 4288 Email: khairul@maybank.com.my

Narita NazireeHead, Group Strategy ManagementContact: (6)03-2074 8101Email: naritanaziree.a@maybank.com.my

Raja Indra PutraHead, Investor RelationsContact: (6)03-2074 8582Email: rajaindra@maybank.com.my

Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all theinformation 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 theCompany 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 ofit form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

26

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 inconnection therewith.