Investor Presentation...0 Investor Presentation Financial Results 4Q FY2016 and Full Year FY2016...

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Investor Presentation

Financial Results4Q FY2016 and Full Year FY2016 ended 31 December 2016

23 February 2017

Humanising Financial Services

1

Table of Contents

Financial Results: 4Q FY2016 and Full Year FY2016 ended 31 December 2016

Appendix:

5

2

26

1. Financial Performance

2. Community Financial Services

3. Global Banking

4. Maybank Singapore

5. Maybank Indonesia

6. Other segments

31

44

49

54

58

Executive Summary

Results Overview

Strategic Objectives, Prospects & Outlook

7. Affiliates

63

68

2

Continued growth in

core revenue despite

slower operating

environment

Full Year FY2016 OverviewHigher net operating income of RM22.26 billion for full year 2016, with net profit at RM6.74 billion

• Revenue growth of 4.8% YoY supported by growth in net fund and fee based

income

o Net fund based income rose 5.2% YoY, supported by pick-up in corporate

lending across home markets in 4Q and continued growth in CFS franchise

• New PPOP high of RM11.69 billion, with income growth ahead of cost growth

1

• Low cost growth of 2.8% YoY, with positive JAWs position of 2.0%

• Lowest CIR ratio in six years at 47.3% for FY2016

Disciplined

Cost Management

• Maintained prudence at year-end review of accounts

• Slight uptick in Group GIL ratio to 2.28% as at Dec 2016 from 2.22% a quarter ago

Proactive Asset

Quality Management

• Group LCR of 152% as at Dec 2016

• Total capital ratio at 18.9%* and CET1 capital ratio at 13.6%* as at Dec 2016

• Attractive dividend yield of 6.3%, with dividend per share of 52 sen

Stable Liquidity and

Capital Positions

5

*After proposed dividend and assumption of 85% reinvestment rate. Fully loaded Group CET1 capital ratio is 13.23%

Strong CASA

franchise

2

3 • Group CASA strengthened to 35.7% from 33.7% a year ago due to strong CASA

growth in home markets

4

3

FY2016 Key Performance Indicators ReviewFull year achievements in line with revised FY2016 guidance

Notes:

1Normalised to exclude the conversion effects for Singapore, Indonesia, Philippines, Greater China and Labuan (USD)

2In local currency terms

Key Performance IndicatorsFY2016

Guidance

AnnualisedFY2016 Achievement

1H FY2016 2H FY2016

Headline KPI

Return on Equity (reported) 10.5%-11.0% 8.3% 13.0% 10.6%

Other Guidance

Group Loans Growth (reported) 2%-3% (3.6)% 15.3% 5.7%

Group Loans Growth (normalised)¹ (1.4)% 10.2% 4.2%

• Malaysia 4%-5% 1.1% 11.4% 6.3%

• Singapore² 2%-3% (2.9)% 12.0% 4.5%

• Indonesia² 6%-7% 7.9% 9.1% 8.7%

Group Deposits Growth (reported) 3%-4% 5.8% 4.4% 5.2%

Group Deposits Growth (normalised)¹ 7.7% 0.1% 3.8%

4

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview


7. Affiliates

5

2

26

31

44

49

54

58

63

68

5

P&L Summary: FY2016Net operating income grew 4.8% YoY to new high of RM22.26 billion

Note: Page 35 shows the quarterly trend of the P&L summary.

* From consolidated Group numbers, Insurance and Takaful accounts for 6.4% of net fund based income and 9.0% of net fee-based income

¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses

More

details on RM million FY2016 FY2015 YoY

s.7 Net fund based income * 15,301.2 14,545.0 5.2%

s.7/8 Net fee based income * 6,962.0 6,692.8 4.0%

s.6/31 Net operating income 22,263.2 21,237.9 4.8%

s.9 Overhead expenses (10,577.2) (10,285.0) 2.8%

s.6 Pre-provisioning operating profit (PPOP) ¹ 11,686.0 10,952.9 6.7%

Net impairment losses (3,015.0) (2,012.6) 49.8%

Operating profit 8,671.0 8,940.3 (3.0)%

s.31 Profit before taxation and zakat (PBT) 8,844.5 9,151.5 (3.4)%

Profit attributable to equity holders of the Bank (Net Profit) 6,743.0 6,835.9 (1.4)%

EPS - Basic (sen) 67.8 72.0 (5.8)%

6

10,953

5,375 5,833

396 (8)947

11,684

6,302 6,462

346(8)

906

Total Group CommunityFinancial Services (CFS)

Group CorporateBanking & Global

Markets

Group InvestmentBanking

Group AssetManagement

Group Insurance &Takaful

FY2015

FY2016

21,238

12,046

7,668

1,480107

1,527

22,263

13,057

8,299

1,499137

1,593



Markets




FY2015

FY2016

Franchise-Led Growth: FY2016 (1/2)Strong growth across all business pillars; Group CFS at 8.4%, Group GB at 7.3% & Group Insurance & Takaful at 4.3%

Note: Net income & PPOP includes Group elimination of entities in “Head Office & Others” of RM1,589.4 million for FY2015 and RM2,321.6 million for FY2016.

Net Operating Income

RM

million

RM

million

PPOP

+4.8%

+8.4% +8.2% +1.3% +4.3% +28.0%

+6.7%

+17.2% +10.8% (12.6)% (4.3)%(4.7)%

Group Global Banking (GB) +9.3%

FY2015: 6,221 FY2016: 6,800


FY2015: 9,255 FY2016: 9,935

7

6,693

3,019 2,461 1,251

109621

6,962

3,058 3,102

1,206 145 584



Markets




FY2015

FY2016

14,545

9,027

5,206

229 (2) 906

15,301

9,999

5,197

293 (7)1,009



Markets




FY2015

FY2016

Group Global Banking (GB)

Franchise-Led Growth: FY2016 (2/2)Revenue growth supported by higher net fund based income of 5.2% and net fee based income of 4.0%

Note: Net fund based income includes Group elimination of entities in “Head Office & Others” of RM820.6 million for FY2015 and RM1,188.6 million for FY2016.

Net fee based income includes Group elimination of entities in “Head Office & Others” of RM768.8 million for FY2015 and RM1,133.0 million for FY2016.

Net Fund Based Income

+5.2%

Net Fee Based Income

+10.8% (0.2)% +28.0% +11.3% (>100)%

RM

million

RM

million

+16.5% +4.0%

+1.3% +26.1% (3.6)% (6.0)% +32.1%

FY2015: 3,821 FY2016: 4,453


FY2015: 5,433 FY2016: 5,483

8

6,693

5,773

508

4,197

(3,784)

6,962

6,170

456

4,444

(4,108)

Total Other operating income Fee Income fromIslamic Operations

Net Earned InsurancePremiums

Net Insurance Benefits& Claims Incurred, Net

Fee & CommissionExpenses and Life &

Takaful Fund Tax

FY2015

FY2016

+4.0% YoY +6.9% YoY +5.9% YoY (10.1)% YoY 8.5% YoY

RM

million

RM million FY2016 FY2015 YoY

Commission, service charges and fees 3,649 3,821 (4.5)%

Investment & Trading Income 1,363 842 61.9%

Unrealised gain/ (losses) on securities & derivatives 170 82 >100%

Foreign Exchange Profit 620 481 29.0%

Other Income 367 547 (32.9)%

Net Fee Based Income: FY2016Growth of 4.0% YoY due to higher investment & trading income and net earned insurance premiums

Note: Page 37 shows the quarterly trend of net fee based income.

9

Overheads: FY2016Low cost growth of 2.8% YoY arising from strategic cost management programme initiatives and natural attrition

(RM’ mil) FY2016 FY2015 YoY

Personnel Costs 5,647.4 5,765.1 (2.0)%

Establishment Costs 1,887.7 1,721.1 9.7%

Marketing Expenses 522.1 607.3 (14.0)%

Administration & General Expenses 2,519.9 2,191.5 15.0%

Total 10,577.2 10,285.0 2.8%

Group overheads composition

% FY2016 FY2015 YoY

Total Cost to Income ¹ 47.3 48.2 (0.9)%

Group JAW Position 2.0%

Note: Page 38 shows the quarterly trend of overheads.

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

10

Group Gross Loans Growth: 31 December 2016Group gross loans growth of 5.7% YoY, supported by stronger corporate lending growth and sustained growth in CFS

% of Portfolio 31 Dec 2016 31 Dec 2015 YoY

Group Gross Loans 485.7 459.4 5.7%

Malaysia (RM billion) 56% 272.0 255.9 6.3%

Community Financial Services 71% 194.4 183.2¹ 6.1%

Global Banking 29% 78.8 73.3¹ 7.5%

International (RM billion) 43% 206.8 196.5 5.3%

Singapore (SGD billion) 58% 38.9 37.2 4.5%

Community Financial Services 54% 20.7 20.2 2.3%

Global Banking 46% 18.0 16.8 7.2%

Indonesia (Rupiah trillion) 20% 124.7 114.8 8.7%

Community Financial Services 78% 97.0 92.4 4.9%

Global Banking 22% 27.4 22.0 24.6%

Other markets (RM billion) 22% 44.6 47.7 (6.4)%

Investment banking (RM billion) 1% 6.9 7.1 (2.5)%

Note: Page 39 shows the quarterly trend of the Group gross loans.

¹ Re-based loan growth figures are based on adjusted 31 December 2015 position in line with migration of client accounts, implemented on 1 January 2016

11

RM billion % of Portfolio 31 Dec 2016 31 Dec 2015 YoY

Community Financial Services (reported) 71% 194.4 182.7 6.4%

Community Financial Services (rebased) ¹ 71% 194.4 183.2 6.1%

Consumer 57% 155.3 146.9 5.8%

Total Mortgage 28% 75.0 69.2 8.4%

Auto Finance 16% 43.4 40.8 6.3%

Credit Cards 2% 6.7 6.4 5.4%

Unit Trust 10% 27.6 28.1 (1.9)%

Other Retail Loans 1% 2.6 2.4 10.1%

Business Banking + SME (reported) 14% 39.1 35.8 9.1%

Business Banking + SME (rebased) ¹ 14% 39.1 36.3 7.6%

SME (reported) 5% 12.6 10.2 23.1%

SME (rebased) ¹ 5% 12.6 9.9 26.8%

Business Banking (reported) 10% 26.5 25.6 3.5%

Business Banking (rebased) ¹ 10% 26.5 26.4 0.4%

Global Banking (Corporate) (reported) 29% 78.8 73.8 6.8%

Global Banking (Corporate) (rebased) ¹ 29% 78.8 73.3 7.5%

Total Malaysia 272.0 255.9 6.3%

Malaysia Loans Growth: 31 December 2016Growth of 6.3% supported by increase in corporate, consumer and SME lending

Note: Page 40 shows the quarterly trend of Malaysia loans.

¹ Re-based loan growth figures are based on adjusted 31 December 2015 position in line with migration of client accounts, implemented on 1 January 2016

12

306.2327.2 329.5

Dec 14 Dec 15 Dec 16

410.5

459.4485.7


Selective Asset Growth: 31 December 2016Group loans grew 5.7% YoY with controlled credit RWA growth of 0.7% YoY

Group Gross Loans

RM

billion

352.9373.3

379.6


Total Group RWA

RM

billion

+5.7%

+1.7%

RM

billion

+0.7%

Group Credit RWA

+12.0%

+6.8%+5.8%

13

Group Deposits Growth: 31 December 2016Growth of 5.2% YoY driven primarily from robust CASA growth across home markets

% of Portfolio 31 Dec 2016 31 Dec 2015 YoY

Group Gross Deposits 521.4 495.8 5.2%

Malaysia (RM billion) 58% 301.3 292.2 3.1%

Savings Deposits 14% 42.1 40.0 5.1%

Current Accounts 27% 79.8 74.2 7.7%

Fixed Deposits 54% 163.5 163.0 0.3%

Others 5% 15.9 15.0 6.1%

International 42% 221.6 205.1 8.0%

Singapore (SGD billion) 64% 45.6 43.6 4.4%



Fixed Deposits 70% 32.0 33.6 (4.9)%

Others 2% 1.1 0.8 41.7%

Indonesia (Rupiah trillion) 18% 119.3 115.9 2.9%



Fixed Deposits 61% 73.3 74.2 (1.2)%

Note: Page 41 shows the quarterly trend of Group deposits.

14

2.48

2.43

2.31 2.31

2.27

FY2012 FY2013 FY2014 FY2015 FY2016

NIM Trend: Full Year FY2016Full year NIM of 2.27% with moderate compression of 4bps YoY

Net Interest Margin (%)

5-Year Trend

15

92.7% 89.9% 88.5% 90.9% 93.2%

33.7% 33.3% 33.4% 34.5% 35.7%

Dec 15 Mar 16 Jun 16 Sep 16 Dec 16

LDR CASA

LDR and CASA Ratio: 31 December 2016Group CASA ratio improved YoY and QoQ, driven by CASA growth in three home markets

SingaporeIndonesia

Group Malaysia

92.3% 90.2% 89.1%96.0% 91.3%

37.1% 36.9% 35.9% 37.5% 38.0%


99.6% 100.1% 104.8% 102.8% 104.5%

36.0% 37.7% 39.3% 38.1% 38.6%

86.1% 87.6% 90.3% 88.0% 88.9%


LDR (Bank Level)

85.3%80.3% 79.4% 79.1%

85.3%

21.2% 20.4% 22.5% 24.5% 27.5%


Note: LDR is based on gross loans over customer deposits, a methodology adopted by Maybank effective January 2016

*Includes investment accounts totaling RM31.54 billion for 31 Dec 2016, RM30.37 billion for 30 Sep 2016, RM30.96 billion for 30 June 2016, RM25.07 billion for 31 Mar 2016 and RM17.66

billion for 31 Dec 2015, captured under Maybank Group’s management reporting of total deposits

* * * * *

* * ** *

16

Strong Liquidity: 31 December 2016Group LCR of 152%, above BNM minimum requirement of 70% for 2016

Objective

Short-term resilience – Adequate level

of high-quality liquid assets to meet

liquidity need for next 30 days under

significant stress scenario

Stock of high quality liquid assets

Net cash outflows over 30-day period

Ratio

BNM Minimum

Requirement

Year LCR

1 Jun 2015 60%

1 Jan 2016 70%

1 Jan 2017 80%

1 Jan 2018 90%

1 Jan 2019 &

thereafter100%

148141

148

136

152


Group Liquidity Coverage Ratio (%)

Liquidity Coverage Ratio

BNM min

requirement

of 70%

17

466.7

865.1981.7

370.3

615.7

1,683.6

2,832.7

4QFY2015

1QFY2016

2QFY2016

3QFY2016

4QFY2016

FY2015 FY2016

Allowances for losses on loans

72.0%70.1% 70.5%

74.8%

72.0%*

Loan loss coverage (LLC)

Allowance for losses on loans

Asset QualitySlight uptick in Group GIL ratio to 2.28% QoQ

RM

million

*Loan loss coverage including Regulatory Reserve is 81.6%

72%

17%

11%NPL

R&R

IPL

GIL Ratio ComponentsDec

2016

Sep

2016

Jun

2016

Mar

2016

Dec

2015

Non Performing Loans

(NPL)1.64% 1.35% 1.32% 1.39% 1.15%

Restructured &

Rescheduled (R&R)0.39% 0.52% 0.67% 0.33% 0.23%

Performing Loans

Impaired Due to

Judgmental/

Obligatory Triggers

(IPL)

0.25% 0.35% 0.35% 0.39% 0.48%

GIL Ratio 2.28% 2.22% 2.34% 2.11% 1.86%

Group GIL Ratio Composition

18


Gross Impaired Loans

Net Impaired Loans

0.331.08 1.16

0.76 1.07

0.451.28 1.38

0.98 1.30

Asset Quality by MarketContinued proactive management of asset quality in home markets

4.15 4.21 3.99 4.06

4.36

3.25 3.302.99

2.86

3.44


1.76 1.83

2.232.14

2.06

1.361.45

1.781.63

1.44


Malaysia Singapore Indonesia

* The difference in Maybank Indonesia’s GIL ratio and NIL ratio on Pages 18 & 60 are due to computation differences owing to classification to meet the respective local regulatory

reporting requirements.

19

Asset Quality by Line of Business: MalaysiaStable consumer and retail SME portfolios, with uptick mainly stemming from business and corporate banking portfolios

Mortgage Auto Finance Credit Cards

Retail SME Business Banking Corporate Banking

Consumer

Business

Note:

Industry GIL ratio for mortgage is 1.1%, 0.9% for auto finance, 1.4% for credit cards, 2.5% for SME and 2.2% for Business Banking.

0.55

0.580.60 0.61

0.57


0.49

0.52 0.530.55

0.51


0.790.85

0.80 0.79

0.72


1.96 1.961.92

2.082.00


1.47 1.752.53 2.47

1.85


GIL Ratio

10.00 9.5911.25 10.60 11.92


20

Asset Quality by Line of Business: SingaporeStable consumer portfolio; GIL ratio uptick for business segments in line with weaker operating environment

Mortgage Auto Finance Credit Cards


Consumer

Business

0.47 0.47

0.420.44 0.45


0.33 0.340.29

0.380.32


2.66 2.45 2.32 2.13 2.26


1.16 1.31 1.43 1.451.70


0.64

1.74 1.692.34 2.42


0.41

2.03 2.24

1.211.89


Note:

Industry GIL figure is only available for mortgage, which was 0.4% as at December 2016

GIL Ratio

21

Asset Quality by Line of Business: IndonesiaOverall improvement in asset quality, with some uptick in mortgage and business banking

Mortgage Auto Finance* Credit Cards


Consumer

Business

0.630.90 0.95

1.271.51


0.99 1.10 1.02 0.950.76


2.46

2.28

2.56

2.412.35


1.65

1.50

1.661.74

1.57


1.23 1.23 1.40 1.521.77


14.94 14.54 13.67 14.2010.51


GIL Ratio

Note:

Business Banking includes Commercial, SME and Micro loans.

Maybank Indonesia’s GIL ratios are mapped in accordance to its local regulatory reporting requirements.

*Excludes WOM

22

49%

1%42%

8%Normal

Special Mention Account

Watchlist

GIL

79% comes

from

supporting

upstream

Commodities Exposure: 31 December 2016Maybank Group’s exposure to direct and indirect oil and gas borrowers as well as other commodities

Notes:

• Group exposure is for three home markets Malaysia,

Singapore and Indonesia, based on Group gross loans as at

end December 2016.

• Agriculture includes rubber, oil palm and cocoa sectors

• Metals and mining includes coal, lignite, peat, metal ores,

tin, iron, steel and non-ferrous metal sectors

Agriculture

Maybank Group 1.79%

Malaysia 1.34%

Singapore 0.05%

Indonesia 0.40%

Metals & Mining

Maybank Group 1.44%

Malaysia 1.11%

Singapore 0.10%

Indonesia 0.24%

Oil & GasMaybank

GroupMalaysia Singapore Indonesia Others

Loan exposure 4.35% 2.76% 1.29% 0.18% 0.12%

Borrowers’ Status:Segmental Exposure:

Direct & Indirect Oil & Gas:

Borrowers with O&G related exposure

Other Sectors

Group exposure of 4.35% includes funded

and non-funded

39%

36%

5%

20%

Upstream

Supporting Upstream

Downstream

Supporting Downstream

Notes:

Supporting upstream includes services activities incidental to crude oil and natural gas extraction

including surveying. This includes providers of services/ activities related to O&G industry

Excluding non-funded, exposure is 3.91%

23

15.78% 15.88% 15.37%

17.97% 18.23% 17.72%

19.43% 18.92%


Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

12.78% 13.99% 13.63%

14.47% 15.66% 15.31%

17.74%19.29% 18.94%


Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

Group

Bank

Strong Capital Position: 31 December 2016Total capital ratio at 18.94% (assuming 85% dividend reinvestment rate) and CET1 at 13.63%

Before proposed dividend

After proposed

dividend,

assuming 85%

reinvestment

rate2016 2017 2018

Jan 2019

Onwards

Minimum Common Equity

Tier 1 Capital4.5% 4.5% 4.5% 4.5%

Minimum Tier 1 Capital 6.0% 6.0% 6.0% 6.0%

Minimum Total Capital 8.0% 8.0% 8.0% 8.0%

Capital Conservation

Buffer (Phase in)0.625% 1.250% 1.875% 2.500%

Other Capital Buffers

D-SIB Buffer

Countercyclical Capital

buffer

Regulatory Requirements

To be determined

0% - 2.5%

Note:

• Based on 85% reinvestment rate under the DRP, the fully loaded CET1 Ratio would be at 13.23% (Group) and 12.10% (Bank) respectively.

** Dec 2015 Bank Level Tier 1 and TCR ratio are the same at 17.97%.

24

61.0%

76.5% 74.9%79.9%

74.7% 71.9%78.5% 76.3% 78.1%

Gross Dividend (sen) and Payout Ratio (%)

Dividend: FY2016Total dividend of 52 sen per share for FY2016, with a strong dividend yield of 6.3%

11

2832

22.524 24

20

8

44

32

36

33

3133 30

32

FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16

Final

Interim

* Actual Reinvestment Rate for Dividend Reinvestment Plan. The reinvestment rate for Final Dividend FY2016 is pending the execution of the 14th DRP.

# 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 FYE 31 Dec 2012

85.9%*

85.7%*

88.2%*85.9%*

88.5%*91.1%*

86.1%*

88.6%*

#

82.6%*

8.0

55.0

60.0

36.0

65.0

53.557.0

84.0%*

DividendPayout Ratio

83.7%*

54.0

87.5%*

N.A.*

52.0

83.5%*

25

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview


7. Affiliates

5

2

26

31

44

49

54

58

63

68

26

• Group Regional Wealth Management recorded strong 26.1% growth in YoY PBT. Total AUM reached over RM250 billion, representing 12.7% growth from 2015

• Regional SME recorded 21.1% growth in PBT• Record >40% growth in M2U transactions YoY & >50% growth in mobile transactions

Maybank2020 : Strategic Objectives Progress (1/2)Key FY2016 Achievements

The Leading

ASEAN Wholesale

Bank Linking Asia

2 • Leading investment banking franchise in ASEAN - top in the Bloomberg’s ASEAN Equity, Equity Linked & Rights, ASEAN Local Currency Bonds and ASEAN M&A League Tables

• Continued leading Malaysian market share in corporate lending, trade finance andcorporate deposits

• MKE was awarded Best Investment Bank in Malaysia by Euromoney (2nd consecutive year)and Best Broker of the Decade in Southeast Asia by Alpha Southeast Asia

The Leading

ASEAN Insurer

3 • Malaysian market leader in combined general insurance & takaful as well as e-Channelbusiness with 86% market share

• Expanded international presence in Singapore and Philippines

The Global

Leader In Islamic

Finance

4 • Successfully captured headline deals in Singapore, Indonesia, UK and the US• Remained leading Sukuk arranger - ranked top 2 for Global Sukuk League Table• Further embraced Islamic Social Finance via the launch of Wakaf Program in collaboration

with the State of Perak, WPAR

Digital Bank of

Choice

5 • Launched various first–to-market digital initiatives:o MaybankPay – a mobile wallet further drive the adoption of cashless paymentso SamsungPay - for contactless paymento Maybank Heart – digital social fundraising platform NGOs

• Partnered Western Union to enable online access for money transfer via Maybank2u

The Top ASEAN

Community Bank

1

27

Maybank2020 : Strategic Objectives Progress (2/2)FY2017 Priorities

The Top ASEAN

Community Bank

The Leading

ASEAN Wholesale

Bank Linking Asia

2

The Leading

ASEAN Insurer

3

The Global

Leader In Islamic

Finance

4

Digital Bank of

Choice

5

1 • Growth will continue to be driven by segmentation model with intensified focus on

cross sell and stepping up new fee income growth engines.

• Continue to strive to lead in areas of innovation on digital offerings to provide our

customers with superior customer experience, while managing overheads through

improved productivity & optimisation.

• Focus on client-centric solutions to provide better access to capital, facilitate

connectivity & efficient management of cash flows via our ASEAN presence

• Assist clients in managing risk as well as achieving stable and sustainable growth

during uncertain times through our complete product suites and services, structuring

expertise and in-depth insights of the ASEAN market

• Strengthen Bancassurance relationship between Etiqa and Maybank

• Drive productivity by leveraging digital tools especially via Motortakaful.com and

Etiqa’s Direct Sales Portal

• Expand regional key markets driven by better distribution of products and services

• Stronger global visibility through landmark deals

• Reaffirm our Humanising Financial Services mission via Islamic Social Finance and

Environmental, Social and Governance initiatives

• Broaden Group’s digital ecosystem to introduce next-generation customer experience

• Further develop digital-enabled capabilities through continuous exploration of

innovative solutions

28

Market Outlook2017 outlook for our home markets

Key Indicators Outlook

Singapore

Malaysia

Indonesia

• GDP (f) 4.4% (2016: 4.2%)

• System loan (f) 4.7% for 2017

• OPR(f) 3.00% (2016: 3.00%)

• USD/MYR average for the year (f) 4.33

(2016: 4.14)

• Inflation (f) 3.0-3.5% (2016: 2.1%)

• GDP (f) 2.5% (2016: 2.0%)

• System loan (f) 2-3%

• System deposit (f) 3-4%

• 3M SIBOR (f) 1.3% (2016: 0.97%)

• USD/SGD average 1.42 (2016: 1.38)

• Inflation (f) 1.2% (2016: -0.5%)

• GDP(f) 5.1% (2016: 5.0%)

• System loan (f): 10.17%

• System deposit (f): 9.5%

• Reference Rate (f) 4.75% (2016: 4.75%)

• USD/IDR average (f) 13457 (2016: 13305)

• Inflation average (f) 4.32% (2016: 3.53%)

• Tax amnesty programme and fiscal spending on

infrastructure projects could support economic

growth and mitigate downside risk to the Rupiah.

• BI not expected to cut interest rates.

• US exports percentage is the lowest within Asia,

thus Indonesia is more resilient under uncertain

trade environment

• Muted loan growth due to weak demand & banks

being cautious in uncertain environment

• Potentially further asset quality deterioration,

should O&G and SME weakness persist.

• NIMs expected to remain stable.

• Capital and liquidity buffers to remain healthy.

• Slowdown in loan growth to 4.7% (2016: 5.3%)

• Competition for deposits to remain keen

• Credit cost uptick on ongoing NPL issues

• Cost and capital management will remain key

priorities

29

Maybank’s Group Guidance FY2017

Drive income growth

Improve productivity

Proactively managing asset quality

• Maintain positive JAWs across business segments

• Expand fee income stream

• Drive Group wide cross selling initiatives

• Sharpen margin & segment focus

• Manage NIM compression

• Proactively monitor asset quality

ROE

Group Loans Growth

Group Deposits Growth

10%-11%

6%-7%

6%-7%

30

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview


7. Affiliates

5

2

26

31

44

49

54

58

63

68

31

56.7%25.5%

8.6%

9.1%

77.2%

9.9%

8.9%4.0%

Malaysia Singapore Indonesia Others

64.2%

16.7%

13.0%

6.0%

73.0%

15.8%

3.7%7.5%

International & Malaysia Portfolio Mix Full Year FY2016

61.9%16.0%

14.6%

7.5%

FY2015

Net Operating Income Profit Before Tax

FY2016

Overseas:

35.8%

Overseas:

27.0%

Gross loans

Overseas:

43.3%

Overseas:

38.1%

Overseas:

22.8%

(Jan 16 – Dec 16)

56.3%25.5%

7.9%

10.3%

RM9.15b RM459.4b

RM485.7bRM22.26b

RM21.24b

(Jan 15 – Dec 15)

Overseas:

43.7%

RM8.84b

32

Income Statement for Insurance and Takaful Business: YoY


Net interest income 995.0 895.3 11.1%

Net earned premiums 4,444.1 4,196.7 5.9%

Other operating income 408.1 327.9 24.5%

Total operating income 5,847.1 5,419.8 7.9%

Net insurance benefits & claims incurred, net fee &

commission expenses and life & takaful fund tax(4,285.4) (3,903.5) 9.8%

Net operating income 1,561.7 1,516.3 3.0%

Overhead expenses (700.0) (547.7) 27.8%

PPOP 861.7 968.7 (11.0)%

Net impairment losses (25.8) (329.7) (92.2)%

Operating profit 835.9 639.0 30.8%



commission expenses and life & takaful fund tax(4,285.4) (3,903.5) 9.8%

Less: intercompany elimination 177.5 119.1 49.0%

Total net insurance benefits & claims incurred,

net fee & commission expenses and life & takaful

fund tax

(4,107.9) (3,784.4) 8.5%

Reconciliation of net insurance benefits & claims incurred, net fee & commission

expenses and life & takaful fund tax

Note: Page 36 shows the quarterly trend of the Income Statement for Insurance and Takaful business

33

1.04 1.06 1.15 1.14 1.381.64 1.72 1.52 1.51

1.52 1.50 1.56 1.541.86

2.112.34

2.22 2.28

Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Dec 2016

Gross Impaired Loans Ratio (%) Net Impaired Loans Ratio (%)

Group Impaired Loans Ratio

0.61% 0.67% 0.70% 0.73% 0.81% 0.98%0.79% 0.78%

1.14%

1.00% 1.01% 1.04% 1.05%1.15%

1.39%1.32% 1.35%

1.64%

Dec 2014 Mar 2015 Jun 2015 Sept 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Dec 2016

Gross NPL ratio Net NPL ratio

Group Non-Performing Loans (NPL) Ratio

* Bursa Malaysia financial statements for 31 Dec 2016 reflects NIL ratio less MIB Investment Accounts.

Group Asset Quality: 31 December 2016

34

Key Operating Ratios: YoY

(%) FY2016 FY2015 YoY FY2014 FY2013

Return on Equity 10.6 12.2 (1.6)% 13.8 15.1

Net Interest Margin 2.27 2.31 (4) bps 2.31 2.43

Fee to Income Ratio 31.3 31.5 (0.2)% 31.9 35.7

Loans-to-Deposit Ratio 93.2 ¹ 92.7 ¹ 0.5% 91.8 89.9

Cost to Income Ratio 2 47.3 48.2 (0.9)% 48.9 47.8

Asset Quality

Gross Impaired Loans Ratio 2.28 1.86 42 bps 1.52 1.48

Net Impaired Loans Ratio 1.51 1.38 13 bps 1.04 0.95

Loans Loss Coverage 72.0 72.0 0.0% 95.6 107.5

Net Charge off rate (bps) (62) (41) 21 bps (11) (23)

Capital Adequacy (Group) 3

CET1 Capital Ratio 13.63 12.53 110 bps 11.38 11.02

Total Capital Ratio 18.94 17.49 145 bps 15.87 15.43

Note: Page 42 shows the quarterly trend of key operating ratios.

1 Includes investment accounts totaling RM31.54 billion for 31 Dec 2016 & RM17.66 billion for 31 Dec 2015, captured under Maybank Group’s management reporting of total deposits

2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Kim Eng.3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period

35

P&L Summary: QoQ

¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses

RM million1Q

FY2016

2Q

FY2016

3Q

FY2016

4Q

FY2016QoQ

4Q

FY2015YoY

Net fund based income 3,823.1 3,780.3 3,728.6 3,969.3 6.5% 3,773.5 5.2%

Net fee based income 1,568.7 1,565.6 1,729.0 2,098.6 21.4% 1,841.2 14.0%

Net operating income 5,391.8 5,345.9 5,457.6 6,067.9 11.2% 5,614.8 8.1%

Overhead expenses (2,620.2) (2,623.7) (2,699.9) (2,633.4) (2.5)% (2,775.7) (5.1)%

Pre-provisioning operating profit (PPOP) ¹ 2,771.6 2,722.2 2,757.7 3,434.5 24.5% 2,839.1 21.0%

Net impairment losses (878.4) (1,181.2) (330.8) (624.5) 88.8% (521.9) 19.7%

Operating profit 1,893.2 1,541.0 2,426.9 2,810.0 15.8% 2,317.1 21.3%

Profit before taxation and zakat (PBT) 1,931.3 1,584.0 2,456.1 2,873.0 17.0% 2,376.1 20.9%

Profit attributable to equity holders of

the Bank (Net Profit)1,426.8 1,159.9 1,795.7 2,360.6 31.5% 1,652.1 42.9%

EPS - Basic (sen) 14.6 11.8 18.0 23.2 28.9% 17.1 35.8%

36

Income Statement for Insurance and Takaful Business: QoQ

RM million1Q

FY2016

2Q

FY2016

3Q

FY2016

4Q

FY2016QoQ

4Q

FY2015YoY

Net interest income 233.0 251.7 248.5 261.8 5.4% 228.8 14.4%

Net earned premiums 1,168.6 1,064.6 1,018.4 1,192.5 17.1% 1,150.7 3.6%

Other operating income 247.6 143.1 298.1 (280.7) (>100)% 185.8 (>100)%

Total operating income 1,649.2 1,459.3 1,565.0 1,173.6 (25.0)% 1,565.4 (25.0)%


commission expenses and life & takaful fund tax(1,365.8) (1,108.5) (1,173.6) (637.4) (45.7)% (1,115.5) (42.9)%

Net operating income 283.4 350.8 391.4 536.2 37.0% 449.8 19.2%

Overhead expenses (160.7) (167.7) (162.2) (209.4) 29.1% (121.2) 72.9%

PPOP 122.6 183.1 229.3 326.7 42.5% 328.6 (0.01)%

Net impairment losses (19.4) (14.0) (0.2) 7.8 >100% (21.6) >100%

Operating profit 103.3 169.1 229.0 334.5 46.1% 307.0 8.9%

RM million1Q

FY2016

2Q

FY2016

3Q

FY2016

4Q

FY2016QoQ

4Q

FY2015YoY


commission expenses and life & takaful fund tax(1,365.8) (1,108.5) (1,173.6) (637.4) (45.7)% (1,115.5) (42.9)%

Less: intercompany elimination 42.0 32.9 60.4 42.1 (30.3)% 41.7 1.1%

Total net insurance benefits & claims incurred,

net fee & commission expenses and life & takaful

fund tax

(1,323.8) (1,075.7) (1,113.1) (595.3) (46.5)% (1,073.9) (44.6)%

Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses and life & takaful fund tax

37

1,569 1,666

58

1,169

(1,324)

1,566 1,441

135

1,065

(1,076)

1,729 1,715

108

1,018

(1,113)

2,099

1,346

155

1,192

(595)

Total Other operating income Fee Income fromIslamic Operations

Net Earned InsurancePremiums

Net Insurance Benefits& Claims Incurred, Net

Fee & CommissionExpenses and Life &

Takaful Fund Tax

1Q FY2016

2Q FY2016

3Q FY2016

4Q FY2016

RM

million

RM million1Q

FY2016

2Q

FY2016

3Q

FY2016

4Q

FY2016QoQ

Commission, service charges and fees 901 872 895 982 9.7%

Investment & Trading Income 235 249 254 625 >100.0%

Unrealised gain/ (losses) on securities & derivatives 463 84 299 (676) >(100.0)%

Foreign Exchange Profit (32) 158 185 308 66.1%

Other Income 99 78 82 108 30.9%

Net Fee Based Income: QoQ

+10.4%

+21.4%

(0.2)%

+19.0%

(21.5)%

(13.5)%

(20.0)%

+43.0%

+>100%

(4.3)%

+17.1%

(8.9)%

3.5%

(46.5)%

(18.7)%

38

Group Overheads: QoQ

(RM’ mil)1Q

FY2016

2Q

FY2016

3Q

FY2016

4Q

FY2016QoQ

4Q

FY2015YoY

Personnel Costs 1,414.1 1,418.4 1,460.9 1,354.1 (7.3)% 1,586.7 (14.7)%

Establishment Costs 475.9 465.4 495.5 451.0 (9.0)% 509.8 (11.5)%

Marketing Expenses 140.0 135.2 116.2 130.7 12.5% 111.3 17.5%

Administration & General Expenses 590.2 604.9 627.3 697.6 11.2% 568.0 22.8%

Total 2,620.2 2,623.7 2,699.9 2,633.4 (2.5)% 2,775.7 (5.1)%

%1Q

FY2016

2Q

FY2016

3Q

FY2016

4Q

FY2016QoQ

4Q

FY2015YoY

Total Cost to Income ¹ 48.4 48.9 49.3 43.3 (6.0)% 49.3 (6.0)%

Group JAW Position 13.7 13.2

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

39

Group Gross Loans Growth: QoQ

31 Mar 2016 30 Jun 2016 30 Sep 2016 31 Dec 2016 QoQ

Group Gross Loans 441.7 451.1 461.2 485.7 5.3%

Malaysia (RM billion) 252.6 257.3 261.5 272.0 4.0%

Community Financial Services 184.1 187.2 190.6 194.4 2.0%

Global Banking 69.4 71.4 72.2 78.8 9.1%

International (RM billion) 182.2 186.7 192.6 206.8 7.4%

Singapore (SGD billion) 36.7 36.7 37.4 38.9 4.1%


Global Banking 16.6 16.6 17.1 18.0 5.7%

Indonesia (Rupiah trillion) 114.6 119.3 118.5 124.7 5.2%


Global Banking 22.0 23.5 22.4 27.4 22.3%

Other markets (RM billion) 41.4 40.7 41.5 44.6 7.5%

Investment banking (RM billion) 6.9 7.1 7.1 6.9 (3.0%)

40

RM billion 31 Mar 2016 30 June 2016 30 Sep 2016 31 Dec 2016 QoQ


Consumer 147.4 149.3 151.9 155.3 2.2%

Total Mortgage 70.7 72.2 73.4 75.0 2.2%

Auto Finance 40.6 41.3 42.4 43.4 2.3%

Credit Cards 6.2 6.3 6.4 6.7 5.5%

Unit Trust 27.4 27.0 27.2 27.6 1.5%

Other Retail Loans 2.4 2.5 2.5 2.6 3.2%

Business Banking + SME 36.8 37.9 38.7 39.1 1.1%

SME 10.6 11.4 12.1 12.6 4.4%

Business Banking 26.2 26.6 26.6 26.5 (0.4)%

Global Banking (Corporate) 69.4 71.4 72.2 78.8 9.1%

Total Malaysia 252.6 257.3 261.5 272.0 4.0%

Malaysia Loans Growth: QoQ

41

Group Deposits Growth: QoQ

31 Mar 2016 30 Jun 2016 30 Sep 2016 31 Dec 2016 QoQ

Group Gross Deposits 491.5 510.1 507.9 521.4 2.7%

Malaysia (RM billion) 294.1 306.8 289.3 301.3 4.2%

Savings Deposits 41.4 42.0 41.8 42.1 0.6%

Current Accounts 74.3 75.2 74.3 79.8 7.4%

Fixed Deposits 163.5 173.6 161.9 163.5 1.0%

Others 14.9 16.0 11.2 15.9 41.7%

International 198.9 204.9 220.0 221.6 0.7%

Singapore (SGD billion) 45.8 46.2 47.3 45.6 (3.6)%



Fixed Deposits 35.4 34.7 34.6 32.0 (7.6)%

Others 1.0 1.1 1.1 1.1 0.0%

Indonesia (Rupiah trillion) 115.2 114.4 116.0 119.3 2.9%



Fixed Deposits 71.9 69.5 71.8 73.3 2.1%

42

Key Operating Ratios: QoQ

(%)1Q

FY2016

2Q

FY2016

3Q

FY2016

4Q

FY2016QoQ

4Q

FY2015YoY

Return on Equity 9.3 7.5 11.4 14.8 3.4% 11.8 3.0%

Net Interest Margin 2.34 2.23 2.22 2.32 10 bps 2.29 3 bps

Fee to Income Ratio 29.1 29.3 31.7 34.6 2.9% 32.8 1.8%

Loans-to-Deposit Ratio¹ 89.9 88.5 90.9 93.2 2.3% 92.7 0.5%

Cost to Income Ratio² 48.4 48.9 49.3 43.3 (6.0)% 49.3 (6.0)%

Asset Quality

Gross Impaired Loans Ratio 2.11 2.34 2.22 2.28 6 bps 1.86 42 bps

Net Impaired Loans Ratio 1.64 1.72 1.52 1.51 (1) bps 1.38 13 bps

Loans Loss Coverage 70.1 70.5 74.8 72.0 (2.8)% 72.0 0.0%

Net Charge off rate (bps) (75) (85) (32) (54) 22 bps (45) (9) bps

Capital Adequacy (Group)³

CET1 Capital Ratio 12.74 13.59 13.73 13.63 (10) bps 12.53 110 bps

Total Capital Ratio 17.63 18.99 19.07 18.94 (13) bps 17.49 145 bps

¹ Includes investment accounts totaling RM31.54 billion for 31 Dec 2016, RM30.37 billion for 30 Sep 2016, RM30.96 billion for 30 June 2016, RM25.07 billion for

31 Mar 2016 and RM17.66 billion for 31 Dec 2015, captured under Maybank Group’s management reporting of total deposits

² Total cost excludes amortisation of intangibles for Maybank Indonesia and Kim Eng.

³ The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period.

43

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview


7. Affiliates

5

2

26

31

44

49

54

58

63

68

44

Community Financial Services: Overview of Market Share for Malaysia

Loans

Total consumer (Household) 17.5% 17.4% 17.4% 17.5% 17.6% # 2

Auto (Purchase of transport vehicles) 23.7% 23.7% 24.1% 24.7% 25.4% # 2

Total mortgage* 13.4% 13.4% 13.4% 13.3% 13.3% # 2

Credit cards** 17.5% 17.5% 17.6% 17.7% 18.0% # 1

Unit trust 51.6% 52.3% 52.3% 52.4% 51.6% # 1

Deposits

Total deposits 18.3% 18.0% 18.6% 17.3% 18.0% # 1

Total core retail deposits 20.2% 20.3% 20.4% 18.3% 17.9% # 2

Retail CASA 25.6% 26.0% 25.7% 24.7% 24.6% # 1

- Retail savings 30.8% 31.0% 30.8% 30.3% 30.3% # 1

Retail fixed deposits 17.4% 17.4% 17.7% 15.0% 14.5% # 2

Internet banking - Subscriber base 43.2% 42.8% 44.1% 43.5% 43.5% # 1

Mobile banking - Subscriber base 29.1% 28.4% 28.2% 30.2% 30.2% # 1

Internet banking - Transaction Volume 52.9% 51.8% 51.9% 51.8% 51.8% # 1

Mobile banking - Transaction Volume 62.2% 61.8% 62.2% 63.0% 63.0% # 1

Branch network 20.0% 20.0% 19.3% 19.3% 18.8% # 1

Dec-16

Sep-16

vs

Dec-16

Market share

Market share

Dec-15 Jun-16

Jun-16

Sep-16

Market

position

Sep-16

vs

Dec-16

Market

position

Dec-15

Mar-16

Mar-16 Sep-16 Dec-16

^ Total bank deposits inclusive of investment asset (“IA”).

^^ With inclusion of IA, our Bank’s market share would be 20.0% for Total core

retail deposits, 25.4% for Retail CASA, 30.3% for Retail Savings and 17.4% for

Retail fixed deposits.

^^^ Market share as at Sep-16.

* Refers to housing, shophouse and other mortgage loans

** Credit cards market share refer to receivables for commercial

^^^

^^

^^^

^^^

^^^

^

^^

^^

^^

^^

45

146.9 151.9155.3

020406080

100120140160180200

Dec 15 Sep 16 Dec 16

35.8 38.7 39.1

0

10

20

30

40

50

60

70


104.0 103.1 103.8

3.20 3.29 3.35

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0


TFA Product per customer

169.6181.6 186.5

7.20

7.31

7.38

7.007.057.107.157.207.257.307.357.407.457.50

020406080

100120140160180200


TFA Product per customer

Community Financial Services: Overview of Malaysia Loans Portfolio

Business Banking + SME loans grew by 9.1% YoY to RM39.1

billion led by SME growth of 23.1%

+9.1% YoY

+5.8% YoY

Consumer loans grew 5.8% YoY to RM155.3 billion led by

mortgage growth of 8.4%

+9.9% YoY 0.2% YoY

• Customer classification: HNW (IA>RM3m, TFA >RM4m); Affluent (IA between RM 250K to RM3m, TFA between RM1m to < RM4m)

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

+2.2% QoQ

+1.1% QoQ

RM

billion

HNW and Affluent customer TFA grew 9.9% YoYMass customer cross sell ratio improved to 3.35

Domestic Industry Average 5.3% YoY

RM

billion

RM

billion

RM

billion

46

128.2 134.7136.8

020406080

100120140160180200


77.975.8 77.2

0.0

20.0

40.0

60.0

80.0

100.0

120.0


206.3 210.5 214.0

100

120

140

160

180

200

220


Community Financial Services: Overview of Malaysia Deposits Portfolio

+6.7% YoY

Consumer deposits grew 6.7% to RM136.8 billion

+1.6% QoQ

CFS deposits grew 3.7% YoY to RM214.0 billion

Business Banking + SME deposits eased 0.9% to RM77.2

billion CFS deposits growth of +3.7% YoY, mainly contributed

by consumer deposits growth of +6.7% as fixed

deposits grew +8.4% YoY.

Business banking + SME deposits showed a slight dip

YoY, arising from client redemption.

+3.7% YoY

+1.7% QoQ

-0.9% YoY

+1.8% QoQ

Domestic Industry Average 4.8% YoYRM

billion

RM

billion

RM

billion

47

669.9

764.3 739.0

0.5% 0.5% 0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

0

100

200

300

400

500

600

700

800

900


GIL RM'm GIL %

2,752.0 3,058.2

3,395.2

7.7% 7.9%8.7%

2.0% 2.1% 2.0%0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0


GIL RM'm GIL % for SME + BB GIL % for SME

3,421.9 3,822.5

4,134.0

1.9% 2.0% 2.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

4,500.0


GIL RM'm GIL %

Community Financial Services: Overview of CFS Malaysia Asset Quality

Consumer GIL remained stable at 0.5%, lower than the

industry average of 1.1%CFS GIL increased marginally to 2.1% due to a slight

uptick in Business Banking (BB) GIL

Business Banking + SME GIL increased to 8.7%

Total GIL ratio for consumer financing portfolio

remained stable at 0.5%.

Combined GIL ratio for Business Banking + SME showed

an increase to 8.7%, due to impairments from business

banking.

48

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview

7. Affiliates

5

2

26

31

44

49

54

58


63

68

49

12.2

20.5

41.1

11.1

23.2

38.0

11.7

27.9

39.2

Dec'16 Sep'16 Dec'15

+36.5% YoY

(4.0)% YoY

RM billion

Note: ‘Term Loan’ now includes foreign currency denominated accounts, while ‘Trade

Finance and Others’, which previously included ‘Short Term Revolving Credit’, is

now combined with ‘Overdraft’.

(4.7)% YoY

1.47%

1.75%

2.53% 2.47%

1.85%


Term Loan25.0%

25.5%25.3%

25.5%

26.2%


Global Banking: Overview of Malaysia Corporate Banking Portfolio

Trade Finance market share ¹Total GB loans increased 6.8% YoY to RM78.8 billion

Corporate Banking GIL ratio at 1.85% as at Dec 2016

Short Term

Revolving

Credit

Trade

Finance and

Others

¹ Market share of total trade products (On Balance Sheet items, Contingent Liabilities

and Others)

50

46.1%

23.8%

21.6%

0.8%

0.9%

6.8%

Commercial

Papers

53.9 62.9 63.9 61.1 57.3

47.650.1 49.8 51.8 51.3

10.311.4 12.5 12.0 9.4


Govt. Securities PDS/Corp Bonds Others

Group Securities Portfolio:

45.2% Foreign Securities as at FY2016

62.0%

16.2%

20.6%

0.4%

0.1%0.7%

RM21.8

billion

A<A

RM17.7

billion

Commercial

Papers

23.7%

24.9%

23.2%

20.3%

7.9%

Group Securities Portfolio grew 5.5% YoY

+5.5%

Global Market’s revenue grew by 25.8% YoY

+21.3%

2,776.7

RM

million

Note: PBT & Revenue includes regional performance

RM 118.0

billion

37% of GM PDS (Maybank Conventional Malaysia) rated

“AA” or above as at FY2016

RM

billion

FY2016

Government

Securities

-Domestic

Government

Securities

-ForeignPDS/Corp

Bonds

-Domestic

PDS –

Foreign

Others

(NIDs, BA, etc)

24.6%

23.6%25.6%

17.0%

9.2%

RM111.9

billion

Government

Securities

-Domestic

Government

Securities

-Foreign

PDS –

Foreign

Others

(NIDs, BA, etc)

FY2015

SA

(Govt.

Guaranteed)

AAA

AA

SA

(Govt.

Guaranteed)

AAA

AA

A

FY2016FY2015<A

3,493.3

PDS/Corp

Bonds

-Domestic

2,227.6

2,701.9

FY2015 FY2016

RM

million

111.8124.4 126.2 124.9 118.0

Revenue Profit before Tax

+25.8%

Global Banking: Overview of Group Global Markets Portfolio

1,371.71,911.8

1,405.0

1,581.5

FY2015 FY2016

Net interest income Non-interest income

51

1,479.5 1,498.7

FY2015 FY2016

Malaysia33%

Singapore28%

Thailand22%

Indonesia3%

Phillipines5%

Hong Kong5%

Others4%

RM 1,498.8 mil

FY2016 Brokerage Market Share by Country

Country RankMarket

Share

Trading Value

(USD’mil)

Malaysia 3 10.2% 22,372

Singapore N/A2 3.9% 14,713

Thailand 1 8.2% 52,318

Indonesia 10 3.3% 9,126

Philippines 8 4.8% 3,707

Hong Kong Tier 2 0.9% 38,551

Vietnam >10 2.2% 1,445

FY2016 Fee-based Income for Malaysia

FY2016 Total Income Total Income for Maybank Kim Eng

RM

’Million

+1%

Arrangers Fees11%

Brokerage45%

Other Fee Income

7%

Agency/ Guarantee

Fees4%

Advisory Fees28%

Placement Fees4%

Underwriting Fees1%

Note:

- Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings1 Total Income includes shadow income of fee income from GB under MIS framework and NII from leverage financing. 2 YTD Ranking is not disclosed in SGX

Global Banking: Overview of Group Investment Banking Portfolio

52

Global Banking: Notable Deals for FY2016

53

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview

7. Affiliates

5

2

26

31

44

49

54

58


63

68

54

Maybank Singapore: P&L Summary

(SGD mil) FY2016 FY2015 YoY

Net Fund Based income 521.00 600.80 (13.3)%

Net Fee Based income 270.95 229.48 18.1%

Net income 791.96 830.28 (4.6)%

Overhead expenses (349.84) (350.89) (0.3)%

Operating profit 442.12 479.39 (7.8)%

Profit before taxation 240.48 400.63 (40.0)%

Net fund-based income declined by 13.3% as higher funding costs led to a compression in net interest margin.

Fee-based income increased 18.1%, boosted by higher treasury income and gains from investment securities.

Lower overhead expenses of 0.3% arising from tightening of non-essential spend.

While operating profit declined by 7.8%, PBT decreased by 40.0% to SGD 240.48 million. This was due to

additional loan loss allowances being set aside as we took proactive measures to restructure some accounts amid

the weaker economic environment.

55

8.9 8.4

3.9 4.9

3.6 4.2

6.0 6.3

9.6 9.7

1.8 1.83.4 3.5

Dec 15 Dec-16

Other(Consumer)

Car Loan

Housing Loan

Others(Corporate)

Non-Bankfinancial Inst

GeneralCommerce

Building &Const

Gross impaired loan ratio rose to 1.36% as at Dec 2016 Maybank Singapore loans rose 4.5% YoY, ahead of

industry growth of 0.5%

Diversified Loan Portfolio

37.2 38.9

Consumer

39%

Corporate

61%

SG

D b

illion

Total loans expanded by 4.5% YoY to SGD 38.9 billion

as at 31 December 2016

Consumer loans rose 1.2% YoY to SGD 15.0 billion.

Gains were recorded across all segments, in

particular car loans

Business loans expanded by 6.7% YoY to SGD 23.8

billion on the back of stronger lending to general

commerce and non-bank financial institutions.

9.9% 10.5%6.0%

4.9%0.4%

-1.9%

4.5%

3.4% 4.2%0.0%

-5.4%-3.6%

-5.0%

0.5%

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

Maybank Singapore Growth Industry Growth

+4.5%

Maybank Singapore: Overview of Loans Portfolio

0.42 0.44 0.48

1.311.41

1.01

1.36

0.35 0.36 0.35

1.111.19

0.80

1.12


GIL Ratio NIL Ratio

% YoY change

56

4.4 6.1

15.3 14.9

4.8 6.4

19.0 18.0

Dec-15 Dec-16

Consumer -Time Deposits

Consumer CASA

Business TimeDeposits

Business CASA

Maybank Singapore: Overview of Deposits Portfolio

+4.5% YoY

45.5

Consumer

54%

Corporate

46%

SG

D b

illion

4.3 5.7

5.06.8

34.3 33.0

Dec-15 Dec-16

Time Deposits

Demand Deposits

Savings

CASA Ratio:

27.5%

11.5% 10.8%10.0%

16.8% 18.2% 18.7%

4.5%6.4%

9.2%

4.6%1.5%

4.1%

1.0% 4.2%


Maybank Singapore Growth Industry Growth

Deposits expanded by 4.5% YoY to SGD 45.5 billion as at

31 December 2016.

Consumer deposits increased by 2.9% to SGD 24.5

billion, led by a 33.0% rise in CASA

Meanwhile, business deposits advanced by 6.4% to SGD

21.0 billion on the back of a 37.8% jump in CASA.

43.5

SG

D b

illion

% YoY change

Maybank Singapore deposits up 4.5% YoY, slightly ahead of

the 4.2% increase in system-wide deposits

Consumer deposits account for 54% of deposits Robust CASA growth of 35.3% YoY

57

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview

7. Affiliates

5

2

26

31

44

49

54

58


63

68

58

Maybank Indonesia: P & L Summary – as Reported

(IDR bil) FY2016 FY2015 YoY 4Q FY2016 3Q FY2016 QoQ

Net Fund Based income 6,608 5,961 10.8% 1,116 1,907 -41.5%

Net Fee Based income 1,967 2,135 -7.9% 23 468 -95.2%

Net income 8,575 8,097 5.9% 1,138 2,375 -52.1%

Overhead expenses (4,534) (4,458) 1.7% (379) (1,214) -68.7%

Personnel (2,039) (1,954) 4.3% (230) (609) -62.2%

General and Administrative (2,496) (2,504) -0.3% (149) (604) -75.3%

Operating profit 4,041 3,638 11.1% 759 1,162 -34.7%

Provisions Expenses (1,595) (1,979) -19.4% (8) (596) -98.7%

Non Operating Income (Expense) 165 (15) 1200.4% 107 25 324.6%

Profit Before Tax and Non-Controlling Interest 2,611 1,644 58.8% 858 591 45.1%

Income from discontinued operations 33 (102) 132.4% 33 - N/A

Tax and Non-Controlling Interest (695) (403) 72.6% (236) (156) 51.2%

Profit After Tax and Non-Controlling Interest 1,948 1,139 71.0% 655 435 50.5%

EPS - Basic (IDR) 28.76 16.82 71.0% 9.60 6.42 49.5%

Note: These are presented in accordance with the classification in published accounts which is in accordance with OJK regulation No.32/POJK.03/2016

59

Maybank Indonesia: P & L Summary – Proforma

Quarterly proforma numbers show 3-months net income from WOM as income from discontinuing operations in accordance with PSAK 58

*The income reduction in 4Q16 is due to WOM’s participation in the Tax Amnesty program.

(IDR bil) Reported

FY2016

Reported

FY2015YoY

Proforma

4Q FY2016

3 months

Proforma

3Q FY2016

3 months

QoQ

Net Fund Based income 6,608 5,961 10.8% 1,719 1,689 1.7%

Net Fee Based income 1,967 2,135 -7.9% 440 338 30.3%

Net income 8,575 8,097 5.9% 2,159 2,027 6.5%

Overhead expenses (4,534) (4,458) 1.7% (1,051) (993) 5.9%

Personnel (2,039) (1,954) 4.3% (485) (526) -7.8%

General and Administrative (2,496) (2,504) -0.3% (566) (467) 21.3%

Operating profit 4,041 3,638 11.1% 1,108 1,034 7.1%

Provisions Expenses (1,595) (1,979) -19.4% (309) (490) -36.9%

Non Operating Income (Expense) 165 (15) 1200.4% 107 25 324.0%

Profit Before Tax and Non-Controlling Interest 2,611 1,644 58.8% 905 570 58.9%

Income from discontinued operations 33 (102) 132.4% 1* 16 -92.5%

Tax and Non-Controlling Interest (695) (403) 72.6% (252) (150) 67.3%

Profit After Tax and Non-Controlling Interest 1,948 1,139 71.0% 655 435 50.5%

EPS - Basic (IDR) 28.76 16.82 71.0% 9.67 6.42 50.5%

60

Maybank Indonesia: Portfolio Overview

Note 1 : Proforma numbers exclude WOM balance in 2014, 2015, and 2016

24.0 21.5 25.7

77.9 86.7 90.0

Dec-14 Dec-15 Dec-16

Global Banking Community Financial Services (CFS)

Asset Quality (Consolidated) - proforma

Loans composition (Consolidated) – proforma (Note 1)IDR Trillion

108.2101.9 115.7

7.0% YoY

3.85% 3.85% 3.82% 3.93%3.54%

2.66% 2.63% 2.49% 2.38% 2.31%

Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

Impaired Loans - Gross Impaired Loans - Net

16.3 16.2 20.4

23.5 25.6 25.6

62.7 73.7 72.9


Current Account Saving Account Time Deposit

Net Interest Margin (Consolidated)

Deposits (Consolidated) IDR Trillion

115.5

3.0% YoY

102.5118.9

4.40% *

4.76%

4.45%

4.61%


* Proforma (exclude WOM)

61

0.29% 0.36% 0.36% 0.34% 0.32%

0.35%0.45% 0.44%

0.42%0.39%

Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

NPL Net NPL Gross

Maybank Indonesia: Overview of Maybank Finance Operations

Asset Quality

Revenue and Profit Before Tax IDR billion

FinancingIDR billion

Unit Financing (unit)

50,631

581

51,212 47,529

396

47,925

New Used Total

Dec-15 Dec-16

4,803

5,979

Dec-15 Dec-16

810947

332 334

Dec-15 Dec-16

Revenue Profit Before Tax

62

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview

7. Affiliates

5

2

26

31

44

49

54

58


63

68

63

30.8 32.1

30.3

5.3

13.1

19.6

31.4

37.5

33.2

6.4

14.4

26.8

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

RM

billion

Dec-15 Dec-16

Islamic Banking: Performance Overview

Group Islamic Banking Financial Performance

Maybank Islamic: Key Financial Ratios

Maybank Islamic: Total Gross Financing grew by 14% to

RM149.9 billion

CFS:10%


Total Income 3,874.2 3,430.6 12.9%

Profit Before Tax 1,945.4 1,715.8 13.4%

Financing & Advances 159,479.3 137,783.2 15.7%

Deposits & Investment

Account:145,216.7 130,569.6 11.2%

Deposits from

Customers113,672.1 112,911.7 0.7%

Investment Account 31,544.6 17,657.9 78.6%

Key Financial Ratios FY2016 FY2015

Net Profit Margin (NPM) 1.82% 1.86%

Total Capital Ratio (TCR) 18.553% 16.489%

Cost to Income Ratio (CIR) 36.30% 37.47%

Direct FDR1 95.7% 96.5%

Adjusted FDR with LTIF2 88.1% 87.3%

Maybank Islamic contribution to Maybank Malaysia Loans

and Financing as at December 2016

Year Contribution

Dec 2015 50.8%

Mar 2016 51.8%

Jun 2016 53.1%

Sep 2016 53.2%

Dec 2016 54.5%

Note:

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

and Investment Account (exc. RPSIA assets and liabilities)

2) Adjusted FDR comprising adjusted financing against adjusted deposit (exc. RPSIA

assets and liabilities) including long term interbank funding (LTIF)

GB:26%

17%

10%

22%

37%

2%

10%

Maybank Conventional

Malaysia45.5%

Maybank Islamic54.5%

Group Islamic Banking’s performance has improved YoY, deriving from key markets in

Malaysia, Indonesia and Singapore

64

Maybank Islamic Market Share (Malaysia)

Maybank Islamic ranks No.1 by Asset Market Share

in Malaysia

Source: BNM monthly statistical bulletin and latest respective Bank’s Financial

Statements

MalaysiaAsset Market Share

Sept-16Rank

Maybank Islamic 30% 1

CIMB Islamic 11% 2

Public Islamic 9% 3

Source: Bloomberg

Sukuk League Table Ranking December 2016

Key Products Dec-16 Dec-15

Automobile Financing 44.3% 42.2%

Home 28.3% 27.7%

Term Financing 30.1% 30.2%

Source for industry numbers: BNM Monthly Statistical Bulletin

Islamic Banking: Market Share

Market Share by Product (Malaysia)

Source for industry numbers: BNM Monthly Statistical Bulletin

Market Share

(%)

Amount

(USD million)Issues

#2 Maybank 11.02% 4,602 100

Market Share

(%)

Amount

(USD million)Issues

#1 Maybank 27.08% 4,050 94

Global Sukuk League Table

Ranking

MYR Sukuk League Table

Ranking

33.6% 33.5% 33.2%33.8% 33.9% 34.4%

27.8%

29.2%30.0%

31.3%30.3% 30.3%

25.0%

30.0%

35.0%

Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16

Financing Deposits & Investment Accounts

65

604.3 809.7

4Q FY15 4Q FY16

30.9 31.8

Dec 15 Dec 16

0 1,000 2,000 3,000 4,000 5,000 6,000

Total Life/Family& General

Total General

Misc

Personal Accident

MAT

Motor

Fire

Total Life/Family

Group Premium

Credit Premium

Regular Premium

Single Premium

RM Million

FY2016

FY2015

8.0%

10.4%

12.8%

0.0% 5.0% 10.0% 15.0%

AmGeneral Insurance

Allianz Insurance

Etiqa Ins. & Tak.

7.6%

14.4%

15.0%

21.5%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Etiqa Ins. & Tak.

GE Ins. & Tak.

Prudential Ins. & Tak.

AIA Ins. & Tak.

Insurance and Takaful: Performance Overview

Total Assets (RM billion)

Gross Premium

Profit Before Tax (RM million)

• PBT includes estimated transfer of RM87.5 million from Family Fund in 4Q FY2016.

Life / Family (New Business) Market Share

No. 4 in Life/Family

(New Business)

No. 1 in General

Insurance and

Takaful

* Market Share is for period Oct’15 – Sep’16 (Source: LIAM / ISM Statistics)

General Insurance and Takaful Market Share

65

+ 34% YoY 3.1% YoY

-22.2%

23.7%

-16.7%

8.5%

-3.6%

29.2%

8.9%

3.7%

-0.9%

9.4%

-12.7%

19.9%

FY2015 FY2016

66

57,843.4 61,136.8 63,376.7

72,949.6

Dec 15 Dec 16

Gross Loans

CustomersDeposits

4,958.4 5,314.2

950.5

328.8

FY2015 FY2016

Revenue

PBT

Maybank Philippines: Performance Overview

Revenue increased by 7.2% YoY, led by higher net interest

income (NII).

Increase in NII contributed by higher loan income, mainly

from term loans.

PBT decreased by PESO 622 million or 65.4% YoY due to

higher provisioning in accordance with BSP Circular 855.

Gross loans rose by 5.7% YoY driven by term loans

growth.

Customer deposits rose by 15.1% YoY driven by growth in

fixed deposits and savings accounts.

Gross impaired loans ratio improved by 108bps YoY to

3.35% due to decrease in corporate loan NPL.

+7.2% YoY

(65.4)% YoY

Revenue and PBT

Gross Loans and Deposits

Key Highlights

PESO

Mil

PESO

Mil

+5.7% YoY

+15.1% YoY

Key Ratios FY2016 FY2015

Return on assets 0.34% 1.15%

Return on equity 1.75% 7.55%

Cost-to-income ratio 70.13% 69.58%

Loans to Deposit ratio 83.81% 91.27%

Gross Impaired Loans Ratio 3.35% 4.43%

No. of branches 80 79

67

Table of Contents


Appendix:



3. Global Banking



6. Other segments

Executive Summary

Results Overview

7. Affiliates

5

2

26

31

44

49

54

58

63

68


68

1,808.1

2,177.4

107.7 288.2

FY2015 FY2016

Revenue

PBT

An Binh Bank: Performance Overview

Revenue increased by 20.4% YoY, mainly due to higher

net interest income and fee income.

PBT increased more than 100% or VND180.5 billion YoY,

on the back of higher revenue.

Gross loans expanded by 20.3% YoY due to higher

corporate and retail lending.

Customer deposits rose by 9.1% YoY mainly contributed

by growth in current and savings accounts.

Gross NPL ratio increased by 7bps to 1.86% YoY, arising

from higher NPL.






Gross NPL Ratio 1.86% 1.79%

VN

D B

ilVN

D B

il

+20.4% YoY

+>100% YoY

41,195.1

49,555.2 47,880.9 52,227.5

Dec 15 Dec 16

Gross Loans

CustomersDeposits

+20.3% YoY

+9.1% YoY

Revenue and PBT


Key Highlights

69

MCB Bank: Performance Overview

Revenue and PBT dropped by 7.6% and 14.2% YoY

respectively, mainly due lower net interest income (NII).

The decrease in NII was mainly attributed to lower

interest income from securities.

Gross loans increased by 14.5%, mainly driven by growth

in domestic loans.

Customer deposits grew by 12.6%, mainly contributed by

growth in current and savings accounts.

Gross NPL ratio improved to 5.65% from 6.10%, arising

from a higher loan base.

66.2 61.2

42.8 36.7

FY2015 FY2016

Revenue

PBT

(7.6)% YoY

(14.2)% YoY

335.3 384.0

688.9

776.0

Dec 15 Dec 16

Gross Loans

CustomersDeposits

+12.6% YoY

+14.5% YoY

PKR B

ilPKR B

il






Gross NPL Ratio 5.65% 6.10%

Revenue and PBT


Key Highlights

70

Dato’ Amirul Feisal Wan Zahir

Group Chief Financial Officer

Contact: (6)03-2074 7703

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

Jeeva Arulampalam

Head, Group Investor Relations

Contact: (6)03-2074 8346

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.

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