Investor Presentation€¦ · Investor Presentation Financial Results 2Q FY2015 and 1H FY2015 ended...

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Investor Presentation

Financial Results 2Q FY2015 and 1H FY2015 ended 30 June 2015

27 August 2015

Humanising Financial Services

1

Table of Contents

Financial Results: 2Q FY2015 and 1H FY2015 ended 30 June 2015

Appendix: Business Sector Review

7

2

23

1. Community Financial Services

2. Global Banking

3. Maybank Singapore

4. Bank Internasional Indonesia

5. Other segments

6. Affiliates

27

32

37

41

46

51

Executive Summary

Financial Performance

Prospects & Outlook

7. Quarterly Financial Summary 54

2

Cost growth higher due to personnel and business-related activities but still

within 50% threshold

Stronger revenue growth in first half, net operating income up 10.8% YoY

Stable group level asset quality with GIL at 1.56%

LDR at 94.2%, but traction in Malaysia and Indonesia improved in 2Q

Strong capital positions with CET1 ratio at 11.48%*

and total capital ratio at 15.54%*

Group Overview 1H FY2015 performance supported by stronger revenue growth and asset position

4

7

6

5

*After proposed dividend and assumption of 80% reinvestment rate. Fully loaded Group CET1 ratio is 10.93%

1

Group NIM at 2.28%, a smaller contraction of 3bps from end Dec 2014 3

Loan growth in 1H FY2015 at YTD annualised growth of 11.1%, and 6.9%

with normalisation of exchange rate 2

3

Results Overview (1/2) Group net profit growth of 3.4% YoY to RM3.28 billion and higher net operating income of 10.8%

Net profit growth

of 3.4% YoY,

ROE at 12.1%

Net operating

income growth of

10.8%

NIM within

expectation

Net operating income growth of 10.8% from continued growth in all business pillars:

Community Financial Services (CFS) +11.6%

Global Banking (Malaysia) +7.2%

International Banking +9.5

Insurance & Takaful +2.3%

Net fund based income grew 11.2% from:

Net interest income growth of 10.1%, driven by Group loans growth of 15.4%

Islamic Banking fund based income growth of 14.7%

YoY net fee based income growth of 9.9% arising from:

Higher foreign exchange gains and commission, service charges and fees

Islamic Banking fee based income growth of 42.2%

Net profit growth of 3.4% YoY, offset by:

An increase in overheads, mainly arising from higher personnel costs and admin & general

expenses

Higher net impairment losses due to an increase in loan loss allowances and net allowances for

impairment losses on financial investments as well as lower recoveries on legacy loans

Group NIM decreased 3bps from end Dec 2014 position and 8bps YoY as:

Yields on loans in Malaysia and Singapore improved, and remained stable in Indonesia

But offset by higher deposit costs in Malaysia and Singapore

4

Group loans growth of 11.1% (ann.) driven by stronger momentum in 2Q:

Led by International loans growth of 20.1%

Malaysia annualised loans growth of 4.2%, supported by growth in the consumer (+8.3%) and

SME (+35.6%) portfolio

Offset by contraction in Global Banking loans due to selective lending

With normalisation of exchange rate, loans growth would be 6.9% (ann.)

Results Overview (2/2) Loans growth continues in the CFS portfolio and expansion in the region

Group deposit

growth of 6.3%

YTD (ann.)

Group GIL at 1.56%

Group loans

growth of 11.1%

YTD (ann.)

Group deposit gathering (6.3% ann.) supported by:

International markets deposit growth of 8.3%

Deposit growth of 5.1% in Malaysia

With normalisation of exchange rate, deposits growth would be 2.5% (ann.)

Group GIL at 1.56% as:

Singapore and Indonesia saw an uptick in their GIL

GIL in Malaysia stable at 1.62%

Capital ratios

remain healthy

Group total capital at 15.54% and CET1 at 11.48% as at 30 June 2015 (assuming an 80% DRP

reinvestment rate)

Interim dividend of 24 sen consisting of 4 sen cash portion and 20 sen electable portion for the

Dividend Reinvestment Plan

5

FY2015 Headline Key Performance Indicators Stable performance in 1H FY2015, but operating conditions are changing for 2H FY2015

Notes:

1Numbers are annualised based on June 2015 position for Malaysia, Singapore and Indonesia

2In local currency terms

3Singapore’s industry loan average comprises domestic business unit (DBU) and Asian currency unit (ACU) loans

Key Performance Indicators FY2015

Guidance

Annualised YoY

Maybank Achievement Industry

Average1 Industry

Average Maybank

1Q FY2015 2Q FY2015 1H FY2015

Headline KPI

Return on Equity 13.0%-14.0% 12.8% 11.7% 12.1% - -

Other Guidance

Group Loans Growth 9.0%-10.0% 8.4% 13.6% 11.1% - - 15.4%

• Malaysia 8.0%-9.0% 3.8% 4.6% 4.2% 7.2% 9.1% 9.9%

• Singapore2,3 8.0%-9.0% (1.1)% 17.5% 8.2% 2.0% 3.4% 9.9%

• Indonesia2 13.0%- 15.0% 5. 0% 2.6% 3.8% 8.5% 10.3% 2.8%

Group Deposits Growth 9.0%-10.0% 6.8% 5.7% 6.3% - - 11.5%

6

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates



7. Quarterly Financial Summary

7

2

23

27

32

37

41

46

51

54

7

P&L Summary: 1H FY2015 Net profit growth of 3.4% YoY to RM3.3 billion

¹Fee-based income is the combined value of other operating income and fee-based income from Islamic Banking operations

²Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses

* From consolidated Group numbers, Insurance and Takaful accounts for 6.4% of net fund based income and 9.4% of net fee-based income

More

details

on RM million

1H

FY2015

1H

FY2014 YoY

2Q

FY2015

1Q

FY2015 QoQ

2Q

FY2014 YoY

s.11 Net fund based income * 6,958.7 6,258.9 11.2% 3,543.3 3,415.4 3.7% 3,134.6 13.0%

s.11 Net fee based income * 2,917.2 2,655.6 9.9% 1,345.1 1,572.1 (14.4)% 1,344.8 0.0%

Fee based income and net earned

insurance premiums 5,019.5 4,707.7 6.6% 2,349.6 2,669.9 (12.0)% 2,476.4 (5.1)%

s.12 Fee based income¹ 2,982.1 2,756.0 8.2% 1,299.3 1,682.8 (22.8)% 1,447.0 (10.2)%

s.8 Net earned insurance premiums 2,037.4 1,951.7 4.4% 1,050.3 987.1 6.4% 1,029.4 2.0%

s.8

Net insurance benefits & claims incurred,

net fee & commission expenses and life

& takaful fund tax

(2,102.3) (2,052.1) 2.4% (1,004.5) (1,097.8) (8.5)% (1,131.6) (11.2)%

s.10 Net operating income 9,875.9 8,914.5 10.8% 4,888.4 4,987.5 (2.0)% 4,479.4 9.1%

s.17 Overhead expenses (4,907.9) (4,254.8) 15.3% (2,418.6) (2,489.3) (2.8)% (2,086.4) 15.9%

s.10 Pre-provisioning operating profit (PPOP) ² 4,968.0 4,659.7 6.6% 2,469.8 2,498.2 (1.1)% 2,393.0 3.2%

Net impairment losses (693.6) (278.8) 148.7% (395.0) (298.6) 32.3% (183.4) 115.3%

Operating profit 4,274.4 4,380.9 (2.4)% 2,074.8 2,199.6 (5.7)% 2,209.5 (6.1)%

s.9 Profit before taxation and zakat (PBT) 4,392.5 4,454.6 (1.4)% 2,150.5 2,242.0 (4.1)% 2,246.8 (4.3)%

Profit attributable to equity holders of

the Bank (Net Profit) 3,284.9 3,177.1 3.4% 1,584.5 1,700.4 (6.8)% 1,575.5 0.6%

EPS - Basic (sen) 35.0 35.6 (1.5)% 16.8 18.3 (8.3)% 17.5 (4.1)%

8

Unaudited Income Statement for Insurance and Takaful Business Increased operating income on higher net earned premiums of 4.4%; PPOP was also higher at 6.1%

RM million 1H

FY2015

1H

FY2014 YoY

2Q

FY2015

1Q

FY2015 QoQ

2Q

FY2014 YoY

Interest income 470.9 487.4 (3.4)% 234.4 236.5 (0.9)% 254.3 (7.8)%

Interest expense (17.0) (11.4) 48.4% (8.5) (8.4) 1.1% (6.3) 34.5%

Net interest income 453.9 476.0 (4.6)% 225.9 228.1 (1.0)% 247.9 (8.9)%

Net earned premiums 2,037.4 1,951.7 4.4% 1,050.3 987.1 6.4% 1,029.4 2.0%

Other operating income 319.1 321.3 (0.7)% 130.1 189.0 (31.1)% 243.1 (46.5)%

Total operating income 2,810.4 2,748.9 2.2% 1,406.3 1,404.1 0.2% 1,520.5 (7.5)%

Net insurance benefits & claims

incurred, net fee & commission

expenses and life & takaful fund tax

(2,153.7) (2,101.4) 2.5% (1,028.9) (1,124.8) (8.5)% (1,157.5) (11.1)%

Net operating income 656.7 647.5 1.4% 377.4 279.3 35.1% 363.0 4.0%

Overhead expenses (294.5) (306.2) (3.8)% (123.0) (171.5) (28.3)% (162.2) (24.1)%

PPOP 362.2 341.2 6.1% 254.4 107.8 135.9% 200.8 26.6%

Net impairment losses (174.7) (13.7) >100% (116.6) (58.0) 101.1% (13.3) >100%

Operating profit 187.5 327.6 (42.8)% 137.7 49.8 176.5% 187.5 (26.6)%

RM million 1H

FY2015

1H

FY2014 YoY

2Q

FY2015

1Q

FY2015 QoQ

2Q

FY2014 YoY

Net insurance benefits & claims



(2,153.7) (2,101.4) 2.5% (1,028.9) (1,124.8) (8.5)% (1,157.5) (11.1)%

Less: intercompany elimination 51.5 49.4 4.3% 24.4 27.0 (9.6)% 25.8 (5.3)%

Total net insurance benefits & claims



(2,102.3) (2,052.1) 2.4% (1,004.5) (1,097.8) (8.5)% (1,131.6) (11.2)%

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

9

70.4%

13.7%

2.0%

13.9%

Malaysia Singapore Indonesia Others

RM4.39b

69.8%

12.1%

3.4%

14.7%

International & Malaysia Portfolio Mix 1H FY2015 International contribution to Group gross loans at 42.2% and revenue contribution to Group at 35.7%

64.3%

16.0%

12.3%

7.4%

Overseas:

39.2%

1H FY2014

Net Operating Income Profit Before Tax 1H FY2015

Overseas:

35.5% Overseas:

30.2%

Gross loans*

(Jan 14 – Jun 14)

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

57.8% 24.6%

7.4%

10.2% Overseas:

42.2%

Overseas:

35.7%

Overseas:

29.6%

(Jan 15 – Jun 15)

60.8% 23.5%

7.9% 7.8%

64.5% 15.7%

12.5%

7.3%

RM4.45b RM8.91b RM375.3b

RM433.3b RM9.88b

10

8,915

3,646

1,136 788 591 43

2,797

697

9,876

4,069

1,129 909 636 66

3,063

713

Total CommunityFinancial Services

(CFS)

CorporateBanking

Global Markets InvestmentBanking

AssetManagement

InternationalBanking

Insurance &Takaful

1H FY2014

1H FY2015

Business Segment Performance 1H FY2015 (1/2) All business sectors (CFS, GB, International Banking and Insurance & Takaful) recorded improved revenue momentum

Note: Net income & PPOP for group includes expenditures of Head Office & Others of RM783.1 million for 1H 2014 and RM710.4 million for 1H FY2015.

Net Operating Income

RM

million

4,660

1,920

909 702 113 2

1,398

400

4,968

2,022

840 785

120 7

1,486

418


(CFS)

CorporateBanking


AssetManagement


Insurance &Takaful

1H FY2014

1H FY2015

+11.6% -0.6% +15.5%

+10.8%

+7.6% +55.4% +9.5% +2.3%

+5.3% -7.6% +11.9%

Global Banking (GB)

+6.6%

+6.7% +239.3% +6.3% +4.6%

+1.5%

PPOP

RM

million

Global Banking (GB) +7.2%

11

2,656

845

359 428 512

40

772

221

2,917

1,047

298 556 537

66

617 254


(CFS)

CorporateBanking


AssetManagement


Insurance &Takaful

1H FY2014

1H FY2015

6,259

2,800

777 360 80 2

2,026

476

6,959

3,022

831 354 100 (0)

2,446

459


(CFS)

CorporateBanking


AssetManagement


Insurance &Takaful

1H FY2014

1H FY2015

RM

million

+7.9% +7.0% -1.8%

+11.2%

+25.3% <-100.0% +20.7% -3.7%

+23.9% -17.2% +30.0%


+4.9% +64.4% -20.0% +15.1%

+8.8%

RM

million


Note: Net fund based income includes expenditures of Head Office & Others of RM261.9 million for 1H FY2014 and RM252.0 million for 1H FY2015.

Net fee based income includes expenditures of Head Office & Others of RM521.2 million for 1H FY2014 and RM458.4 million for 1H FY2015.

Net Fund Based Income

Net Fee Based Income

Business Segment Performance 1H FY2015 (2/2) Higher net fund based growth of 11.2% driven by International Banking and CFS

12

2,656 2,597

159

1,952

(2,052)

2,917 2,756

226

2,037

(2,102)

Total Other operatingincome

Fee Income fromIslamic Operations

Net Earned InsurancePremiums

Net Insurance Benefits& Claims Incurred, Net

Fee & CommissionExpenses and Life &

Takaful Fund Tax

1H FY2014

1H FY2015

RM

million

RM million 1H

FY2015 1H

FY2014 YoY

Commission, service charges and fees 1,883 1,687 11.6%

Investment & Trading Income 471 491 (4.0)%

Unrealised gain/ (losses) on securities & derivatives (267) 198 (234.6)%

Foreign Exchange Profit 507 111 355.1%

Other Income 162 110 47.9%

Net Fee Based Income: 1H FY2015 (YoY) Net fee based income growth of 9.9% driven by higher commission, service charges and fees and foreign exchange gain

+42.2% +4.4% +2.4%

+9.9% +6.1%

13

Group Loans Growth: 30 Jun 2015 Group loans growth of 11.1% (ann.) led by International loans growth of 20.1% (ann.)

% of

Portfolio

30 Jun

2015

31 Dec

2014

YTD

Annualised

30 Jun

2014 YoY

Group Gross Loans¹ 433.3 410.5 11.1% 375.3 15.4%

Malaysia (RM billion) ² 58% 248.8 243.6 4.2% 226.4 9.9%

Community Financial Services 70% 175.3 168.8 7.7% 159.4 10.0%

Global Banking 30% 73.4 74.8 (3.7)% 67.0 9.6%

International (RM billion) 41% 178.7 162.4 20.1% 144.7 23.5%

Singapore (SGD billion) 24% 36.6 35.1 8.2% 33.2 9.9%

Community Financial Services (reported) 52% 19.1 14.8 58.0% 13.3 43.4%

Community Financial Services (normalised) 46% 16.83 14.8 27.0% 13.3 26.3%

Global Banking (reported) 47% 17.2 20.1 (28.4)% 19.9 (13.6)%

Global Banking (normalised) 54% 19.43 20.1 (7.0)% 19.9 (2.5)%

Others 1% 0.3 0.3 (5.0)% 0.0 >100.0%

Indonesia (Rupiah trillion) 7% 111.4 109.3 3.8% 108.4 2.8%


Global Banking 20% 22.2 24.9 (22.1)% 30.1 (26.4)%

Others 0% 0.3 0.3 5.1% 0.4 (27.8)%

Other markets (RM billion) 10% 44.6 38.8 30.0% 29.8 49.5%

Investment banking (RM billion) 1% 5.8 4.4 62.7% 4.2 37.8% ¹ Including Islamic loans sold to Cagamas and excludes unwinding of interest

² Takes into account others portion - Jun 15: RM15 million; Dec 14: RM7 million; Jun 14: RM87 million

³ Normalised loan growth as at 30 Jun 2015, prior to a transfer of SGD 2.2 billion from GB to CFS for Business Banking segment due to realignment to the Group Customer Segmentation

14

Malaysia Loans Growth: 30 Jun 2015 Consumer loan growth of 8.3% (ann.), driven by growth in mortgage and auto finance

¹ Re-based loan growth figures are based on adjusted 31 Dec 2014 position in line with migration of client accounts, implemented on 1 Jan 2015. Re-based YTD annualised growth

was 44.3% for SME and 3.5% for Business Banking.

² Including Islamic loans sold to Cagamas and excludes unwinding of interest and takes into accounts others portion – Jun 15: RM15 million; Dec 14: RM7 million; Jun 14: RM87 million

RM billion % of

Portfolio

30 Jun

2015

31 Dec

2014

YTD

Annualised 30 Jun

2014 YoY


Consumer 57% 141.4 135.7 8.3% 128.4 10.1%

Total Mortgage 26% 65.1 60.9 13.6% 56.8 14.6%

Auto Finance 16% 40.4 38.6 9.0% 37.0 9.0%

Credit Cards 2% 6.0 5.8 4.5% 5.5 8.4%

Unit Trust 11% 27.7 28.3 (3.7)% 27.3 1.6%

Other Retail Loans 1% 2.3 2.1 15.5% 1.8 25.9%

Business Banking + SME 14% 33.9 33.1 5.3% 31.0 9.6%

Business Banking + SME (Re-based¹) 14% 33.9 31.9 12.8% 31.0 9.6%

SME 4% 8.9 7.5 35.6% 6.4 39.3%

Business Banking 10% 25.1 25.5 (3.6%) 24.6 2.0%

Global Banking (Corporate) 30% 73.4 74.8 (3.7%) 67.0 9.6%

Total Malaysia² 248.8 243.6 4.2% 226.4 9.9%

15

% of Portfolio 30 Jun 2015 31 Dec 2014 YTD

Annualised 30 Jun 2014 YoY

Group Gross Deposits 453.5 439.6 6.3% 406.5 11.5%

Malaysia (RM billion) 63% 285.4 278.3 5.1% 265.1 7.6%

Savings Deposits 14% 40.3 38.5 9.3% 38.7 4.0%

Current Accounts 26% 72.5 72.8 (0.7)% 67.1 8.0%

Fixed Deposits 54% 155.2 140.8 20.4% 137.4 12.9%

Others 6% 17.4 26.2 (67.5)% 21.8 (20.4)%

International 37% 169.6 162.9 8.3% 143.3 18.3%

Singapore (SGD billion) 24% 39.0 39.6 (2.9)% 35.0 11.6%

Savings Deposits 12% 4.5 4.5 (2.0)% 4.3 5.4%

Current Accounts 13% 5.1 5.3 (7.7)% 4.8 7.0%

Fixed Deposits 74% 28.9 29.0 (0.7)% 25.2 14.4%

Others 1% 0.5 0.8 (57.9)% 0.7 (22.6)%

Indonesia (Rupiah trillion) 7% 106.9 102.8¹ 8.0% 106.2 0.6%

Savings Deposits 23% 24.0 23.5 4.9% 24.3 (1.0)%

Current Accounts 17% 18.4 16.3 24.7% 16.4 11.9%

Fixed Deposits 60% 64.5 62.4 6.6% 65.5 (1.6)%

Group Deposit Growth: 30 Jun 2015 Group deposit growth of 6.3% (ann.) driven by international markets growth of 8.3% (ann.)

¹ Includes Others of Rupiah 0.6 trillion

16

90.6% 90.6% 91.8% 92.2% 94.2%

35.7% 34.5% 35.3% 35.4% 34.9%

Jun 14 Sep 14 Dec 14 Mar 15 Jun 15

LDR CASA

LDR and CASA Ratio: 30 Jun 2015 Group LDR at 94.2% arising from higher LDR in opportunistic markets

Singapore BII Group

Group Malaysia

86.8% 83.9% 89.5% 91.5% 90.8%

39.9% 38.1% 39.9% 41.2% 39.6%


101.1% 102.7% 105.3% 104.5% 102.8%

38.3% 38.4% 38.7% 39.2% 39.7%

90.8% 91.1% 92.7% 91.9% 89.7%


LDR (Bank Level)

94.7% 95.8% 88.4% 89.1% 93.4%

25.8% 25.2% 24.9% 24.5% 24.6%


17

Overheads: 1H FY2015 Operating expenses higher but cost to income ratio still within 50% threshold

(RM’ mil) 1H

FY2015

1H

FY2014

YoY

2Q FY2015 1Q FY2015 QoQ

Personnel Costs 2,792.7 2,380.1 17.3% 1,373.3 1,419.3 (3.2)%

IT Expenses 216.7 260.3 (16.7)% 117.4 99.4 18.1%

Establishment Costs 521.1 501.2 4.0% 242.1 279.0 (13.2)%

Marketing Expenses 354.7 327.9 8.2% 183.4 171.3 7.0%

Administration &

General Expenses 1,022.7 785.3 30.2% 502.4 520.3 (3.4)%

Total 4,907.9 4,254.8 15.3% 2,418.6 2,489.3 (2.8)%

Group overheads composition

Note: Excluding one-off expenses such as higher gift point expenses and operational costs as well as provisioning for Maybank staff union’s collective

agreement, overheads growth was 11.1% YoY for 1H FY2015 with CIR of 47.8%.

% 1H FY2015 1H FY2014 YoY 2Q FY2015 1Q FY2015 QoQ

Total Cost to Income 49.5 47.4 2.1% 49.2% 49.7 (0.5)%

Group JAW Position (4.5) 0.8

18

154.4

70.5

(34.6)

248.0

300.9

364.5

548.9

2QFY2014

3QFY2014

4QFY2014

1QFY2015

2QFY2015

1HFY2014

1HFY2015

Allowances for losses on loans

107.7% 95.4% 95.6% 93.5% 83.4%*

Loan loss coverage

1.09 1.06 0.95 0.99 0.97

1.13 1.04 1.06

1.15

1.86 1.83

1.48 1.52 1.50

1.65

1.52 1.50 1.56

Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15

Gross Impaired Loans Ratio (%)

Net Impaired Loans Ratio (%)

Asset Quality: 30 Jun 2015 Group GIL at 1.56% and provisioning costs higher YoY due to higher loan loss recoveries in prior year

Group Impaired Loans Ratio Allowance for losses on loans

*Loan loss coverage including Regulatory Reserve is 95.1%

RM

million

19

Asset Quality by Market Improved credit quality in Malaysia, with uptick in Singapore and Indonesia

0.26 0.24 0.23

0.30

0.41

0.20 0.18 0.18 0.24

0.33


Gross Impaired Loans Ratio (%)

Net Impaired Loans Ratio (%)

3.53 3.32 3.24 3.49

4.50*

2.95 2.82 2.63 2.78

3.55*


1.71 2.04 1.85 1.75 1.62

1.05 1.37 1.25 1.23 1.18


Malaysia Singapore BII Group

*BII reported gross NPL (3.48%) and net NPL (2.35%) whereas the chart above represents BII Group’s gross impaired loans ratio and net impaired loans ratio

20

11.69% 11.48% 11.45% 11.38%

13.37% 13.16% 13.13% 13.17%

15.75% 15.54% 15.51% 15.87%

Jun 15 Jun 15 Jun 15 Dec 14

Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

After proposed

dividend and

reinvestment **

Group

Bank

Capital Adequacy: 30 Jun 2015 Total Capital Ratio and CET1 remain healthy at 15.54% and 11.48% (assuming 80% dividend reinvestment rate)

Before

proposed

dividend

After proposed

dividend,

assuming 80%

reinvestment rate

After proposed

dividend, based on

BNM’s Implementation

Guideline *

14.84% 14.56% 14.51% 15.76%

15.73% 15.44% 15.40% 15.76%

Jun 15 Jun 15 Jun 15 Dec 14

Tier 1 and Total Capital Ratio CET 1 Capital Ratio

Note:

• Based on 80% reinvestment rate under the DRP, the fully loaded CET1 Ratio would be at 10.93% (Group) and 9.89% (Bank) respectively.

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

** Adjusted based on acceptance rate of 82.55% under the 10th DRP.

21

61.0%

76.5% 74.9%

79.9% 74.7% 71.9%

78.5%

69.7%

11

28 32 22.5

24 24

8

44

32

36

33

31 33

FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15

Final

Interim

Dividend Board recommended single-tier interim dividend of 24 sen consisting of 4 sen cash portion and 20 sen electable portion

* Reinvestment rate for the Dividend Reinvestment Plan

# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend.

Gross Dividend (sen) and Payout Ratio (%)

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

53.5 57.0

84.0%*

Dividend Payout Ratio

N.A.*

22

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates




7

2

23

27

32

37

41

46

51

54

23

Market Outlook Key trends and developments affecting the banking industry in 2H FY2015

Key Indicators Outlook

Singapore

Malaysia

Indonesia

• GDP(f) 4.9% (2014: 6.0%)

• System loan(f) 7-8%

• System deposit(f) 6-7%

• OPR 3.25% (2014: 3.25%)

• USD/MYR(f) 3.95 (end period) (end 2014: 3.50)

• Inflation (f) 2.0%-2.5% (2014: 3.2%)

• GDP(f) 2.3% (2014: 2.9%)

• System loan(f) 4%-5%

• System deposit(f) 4%-5%

• USD/SGD (f) 1.40 (2014: 1.28)

• Inflation (f) 0%-0.5% (2014: 1.0%)

• GDP(f) 4.9% (2014: 5.0%)

• System loan(f) 12.10%

• System deposit(f) 14.04%

• Reference Rate (f) 7.25% (2014: 7.75%)

• USD/IDR average (f) 13750 (2014: 11885)

• Inflation average (f) 4.12% (2014: 8.36%)

• Bank Indonesia expected to cut rates in 4Q FY2015,

likely to lead to increased refinancing activity

• Corporate lending to improve as government

infrastructure projects gain traction

• Lending environment expected to moderate

• Stable to modest improvement in NIMs from uptick in

rates

• Asset quality to remain stable with sporadic

weaknesses

• Household loan growth to continue moderating amid

weak consumer sentiment

• Business sentiment to remain cautious, loan demand to

be supported by ongoing infrastructure projects

• NIM compression to continue amid a challenging funding

cost environment

• Credit costs set to normalise with lower recoveries

• Cost efficiency to continue to be a key focus

24

Guidance for FY2015

ROE

Group Loans Growth

Malaysia Loans Growth

Singapore Loans Growth

Indonesia Loans Growth

Group Deposits Growth

12% - 13%

8% - 9%

6% - 7%

5% - 6%

10% - 13%

10% - 11%

25

Strategic Priorities for 2H FY2015

Continued focus on productivity

More selective asset growth in view of market conditions

Maintain strong capital position 4

5

1

Remain focused on monitoring and proactive management of asset

quality 3

Continued focus on deposit taking but expect higher funding costs 2

26

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates




7

2

23

27

32

37

41

46

51

54

27

Community Financial Services (1/4) Market share in deposits and key consumer loans portfolio strengthened

*Refers to housing and shophouse loans

**Credit Cards market share refers to Receivables for commercial banks

Loans

Total Consumer / Household 17.0% 17.2% 17.4% 17.4% 17.4% 0.0 2

Auto (Purchase of Transport Vehicles) 20.2% 21.5% 23.0% 23.4% 23.6% 0.0 2

Total Mortgage* 13.4% 13.1% 13.1% 13.1% 13.2% 0.0 2

Credit Cards** 15.9% 15.7% 16.1% 16.6% 16.9% 0.0 2

Unit Trust 60.2% 55.8% 52.7% 51.7% 51.4% 0.0 1

Deposits

Total Deposits 17.1% 18.5% 19.0% 18.6% 18.8% 0.0 1

Total Core Retail Deposits 18.3% 19.0% 19.4% 19.3% 19.4% 0.0 2

Retail CASA 23.6% 24.8% 24.8% 25.3% 25.3% 0.0 1

-Retail Savings 28.2% 29.8% 29.9% 30.1% 30.8% 0.0 1

Retail Fixed Deposits (FD) 15.2% 15.7% 16.5% 16.1% 16.2% 0.0 2

Internet Banking -Subscriber Base 48.0% 45.0% 43.0% 43.0% 43.0% 0.0 1

Mobile Banking -Subscriber Base 36.0% 34.0% 32.0% 31.0% 30.0% 0.0 1

Branch Network 20.0% 20.0% 20.0% 20.0% 20.0% 0.0 1

Market

PositionDec-14

Jun-15

vs

Mar-15

Market

PositionMar-15

Mar-15

Jun-15

Dec-12 Dec-13

Dec-14

Jun-15

vs

Mar-15

Market Share Dec-12 Dec-13

Market Share Jun-15

28

31.0 31.4

33.1 33.0 33.9

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

BB+SME Loan Balance RM'b

128.4

131.3

135.7

138.9 141.4

120.0

125.0

130.0

135.0

140.0

145.0

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

Consumer Loan Balance RM'b

SME & BB Loans grew by 12.8%* (ann.) to RM33.9 billion

HNW & Affluent Customer TFA grew 10.9% YoY with

higher product cross sell ratio

Mass Customer TFA grew 1.4% YoY with higher cross

sell ratio

Community Financial Services (2/4) Sustained consumer loans growth with increase in HNW and Affluent segments

Consumer Loans grew 8.3% (ann.) to RM141.4 billion

31.9*

141.6 145.3

150.4 153.5

157.4

6.54 6.59 6.65

6.70

7.09

6.00

6.50

7.00

7.50

110.0

160.0

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015TFA RM'b Product per customer

104.7 105.5 106.4 107.4 106.2

3.08 3.11 3.12

3.15 3.18

3

3.5

80.0

100.0

120.0

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

TFA RM'b Product per customer

Mass Customer TFA grew 1.4% YoY with higher

cross sell ratio

2.2 Re-based

Mass to

HNW &

Affluent

*Re-based loan growth figures are based on adjusted 31 Dec 2014 position in line with migration of client accounts to Global Banking

**Customer classification: HNW (IA > RM250K, TFA > RM1M); Affluent (IA between RM 50K to RM250K, TFA between RM250K to < RM1M)

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

29

61.8

64.6

69.7 70.6 71.0

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

SME + BB Deposit Balance RM'b

112.4

114.1

116.9

119.4

121.5

106.0

108.0

110.0

112.0

114.0

116.0

118.0

120.0

122.0

124.0

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

Consumer Deposit Balance RM'b

174.2

178.7

186.6

190.0 192.4

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

CFS Deposits Balance RM'b

Community Financial Services (3/4) Continued growth in customer deposits by 6.8%, driven by Consumer and SME portfolios

• Consumer deposits YTD growth of RM4.6 billion in 1H 2015 was

largely driven by Retail CASA which grew by 9.6% (ann.). This

resulted in Retail Savings market share improving to 30.8% as

at June 2015.

• Retail SME YTD growth of RM1.9 billion or 7.6% (ann.) was

contributed by strong growth in Fixed Deposits which grew

24.3% (ann.).

Retail SME & Business Banking deposits growth of 5.1%* (ann.)

Consumer Deposits growth of 7.8% (ann.) driven by CASA

growth of 9.6% (ann.) CFS Deposits growth of 6.8%* (ann.) led by consumer and

SME portfolios

186.1*

69.2*

* Re-based deposit growth figures are based on adjusted 31 Dec 2014 position in line with

migration of client accounts to Global Banking.

30

2,143

2,999 2,803

2,585 2,458

7.0%

9.6% 8.5%

7.9% 7.3%

3.0% 2.7% 2.4% 2.3% 2.1%

0.1% -

500

1,000

1,500

2,000

2,500

3,000

3,500

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

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

2,813

3,658 3,457

3,334 3,109

1.8% 2.2%

2.0% 1.9% 1.8%

-1.8% -

1,200

2,400

3,600

4,800

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

GIL RM'm GIL %

Community Financial Services (4/4) Continued improvement in asset quality with GIL at 1.8%

CFS GIL continued its improving trend at 1.8%

Continued improvement in SME & Business Banking GIL

at 7.3%

Consumer GIL held steady, SME & Business Banking improves

• GIL ratio for consumer financing portfolios held steady on a

YoY and QoQ basis.

• SME and Business Banking GIL continued to improve for a

third consecutive quarter.

• Higher Business Banking GIL in FY2014 was due to

impairments of legacy loans, originated prior to the Business

Banking transformation undertaken in FY2010 to improve its

asset quality position. Improved GIL in 1H 2015 reflects the

continuous monitoring of asset quality and recovery efforts.

GIL % Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015Industry GIL

Q2 2015

CFS 1.8 2.2 2.0 1.9 1.8 N/A

Consumer 0.5 0.5 0.5 0.5 0.5 1.1

Mortgage 0.7 0.7 0.6 0.6 0.6 1.2

Auto 0.5 0.5 0.5 0.5 0.5 1.1

Credit Cards 0.8 0.8 0.7 0.8 0.7 1.3

Unit Trust Loan 0.1 0.1 0.1 0.4 0.1 0.1

SME & Business Banking 7.0 9.6 8.5 7.9 7.3 N/A

SME 3.0 2.7 2.4 2.3 2.1 2.6

Business Banking 8.0 11.5 10.3 9.6 9.1 2.0

31

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates




7

2

23

27

32

37

41

46

51

54

32

2.6

28.8

35.5

2.3

37.5

35.0

2.2

37.7

33.5

Jun'15

Dec'14

Jun'14

Trade Finance and Others

Overdraft

Trade Finance market share ¹

Corporate Banking GIL ratio improved to 1.27% on a YoY

and QoQ basis

Total GB loans decreased by 3.7% (ann.) to RM73.4 billion

but grew 9.6% YoY

+1.5%

(ann.)

-14.6%

(ann.)

RM billion

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

Liabilities and Others)

-8.5%

(ann.)

1.59% 1.57% 1.43%

1.31% 1.27%


Term Loan

Global Banking (1/4) Corporate banking asset quality improved to 1.27%

24.8%

25.4%

25.8%

24.6% 24.9%


33

Group Securities Portfolio:

38.8% Foreign Securities as at 1H FY2015

45.3% 32.1%

20.6%

0.3%

0.9% 0.8%

56.6% 20.8%

18.9%

0.4%

0.8% 2.5%

RM21.1

billion

A

<A

RM17.8

billion

50.9 51.5 50.9 48.0 47.6

41.4 44.5 44.5 45.5 46.6

8.7 11.8 9.2 10.3 14.6


Others

PDS/CorpBondsGovt.Securities

Commercial

Papers

1,078.2

1,157.0

1H FY2014 1H FY2015

23.5%

20.2% 24.2%

18.6%

13.4%

645.5 756.5

607.7 627.5

1H FY2014 1H FY2015

Net interest income

Non-interest income

+10.4%

Global Banking (2/4) Revenue growth of 10.4% YoY for Global Markets’ business regionally

Group Securities Portfolio grew 7.8% YoY

+7.8% YoY

101.0 103.8 108.8 104.6

PBT and Revenue grew by 7.3% and 10.4% YoY respectively

+7.3%

1,253.2

PBT Revenue

RM

million

Note: PBT & Revenue includes regional performance

RM 108.8

billion

39.7% of GM PDS (Maybank Conventional Malaysia) rated

“AA” or above as at 1H FY2015

RM

billion

1H FY2015

Government

Securities

-Domestic

Government

Securities

-Foreign

PDS/Corp

Bonds

-Domestic

PDS –

Foreign

Others

(NIDs, BA, etc)

27.3%

23.1% 24.1%

17.0%

8.6%

RM101.0

billion

Government

Securities

-Domestic

Government

Securities

-Foreign

PDS –

Foreign

Others

(NIDs, BA, etc)

1H FY2014

SA

(Govt.

Guaranteed) AAA

AA

SA

(Govt.

Guaranteed) AAA

AA

A Commercial

Papers

Note: Group PDS (Maybank Malaysia) for 1H FY2014 and 1H FY2015 are

RM20.6 billion and RM22.6 billion respectively

107.8

1H FY2015 1H FY2014

<A

1,384.1

PDS/Corp

Bonds

-Domestic

34 34

Global Banking (3/4) Maybank Kim Eng saw total income growth of 7.6% YoY to RM636.4 mil for 1H FY2015

1H FY2015 Equity Brokerage League Table by Country

* Ranking is not disclosed in respective exchanges

Note: Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings

591.2

636.4

RM

’Million

1H FY2014 1H FY2015

+7.6%

Country Rank Market Share Trading Value

(USD m)

Thailand 1 9.2% 29,049

Malaysia 4 8.6% 12,167

Indonesia 11 3.2% 3,928

Philippines 7 4.8% 2,569

Singapore N/A* 4.5% 8,918

Hong Kong Tier2 0.7% 26,071

1H FY2015 Fee-based Income for Malaysia

1H FY2015 Total Income Total Income for Maybank Kim Eng increased by 7.6% YoY

Arrangers' Fees 21%

Brokerage 54%

Other Fee Income

6%

Agency/ Guarantee Fees

3%

Advisory Fees 5%

Placement Fees 6%

Primary Subscribers'

1% Underwriting

Fees 4%

Malaysia, (RM191.1 mil,

30%)

Singapore (RM136.8 mil,

22%)

Thailand (RM195.3 mil,

31%)

Indonesia (RM9.3 mil, 1%)

Philippines (RM29.0 mil,

5%)

Hong Kong (RM45.5 mil,

7%)

Others (RM29.4 mil,

5%)

RM636.4 mil

MKE 2Q2015 Finance.xls

35 35

Global Banking (4/4) Notable Deals for 1H FY2015

Malaysia

Jun 2015

Malaysia

Sukuk Murabahah

Issuance

Joint Lead Manager

Joint Book Runner

Genting Plantations

Berhad

Sukuk Wakalah

Co-Manager

Jun 2015

Hong Kong

The Government of the Hong

Kong Special Administrative

Region of the People’s

Republic of China

Syndicated Term Loan

Mandated Lead Arranger and

Bookrunner

May 2015

Hong Kong

Fosun International

Limited

Jun 2015

Philippines

National Grid Corporation

of the Philippines

Fixed Rate Corporate

Notes

Lead Arranger

Jun 2015

Indonesia

PT Buana Finance

Syndicated Loan

Lender

Jun 2015

UAE

Sukuk Wakalah

Joint Lead Manager

Joint Bookrunner

Dubai Islamic Bank

Jun 2015

Philippines

San Miguel Consolidated

Power Corporation

7-Year Syndicated

Term Loan Facility

Lead Arranger

PETRONAS Global Sukuk

Ltd

Mar 2015

Malaysia

PETRONAS Capital Ltd

Global Medium Term

Note Programme

Joint Bookrunner

Mar 2015

Turkey

KT Kira Sertifikalari Varlik

Kiralama A.Ş.

Sukuk Wakalah Joint Principal Adviser

Joint Lead Arranger

Joint Lead Manager

Joint Bookrunner

Joint Shariah Advisor

Sukuk Trustee

Mar 2015

Hong Kong

Samson Paper Company

Ltd

Syndicated Term

Financing

Joint Mandated Lead Arranger

Bookrunner

Joint Under Writer

Mar 2015

Malaysia

Mah Sing Group Berhad

Rights Issue

Joint Managing Underwriter

Joint Underwriter

Sapurakencana TMC Sdn Bhd

Jan 2015

Malaysia

Sapurakencana TMC Sdn

Bhd

Syndicated Term

Financing Coordinating Bank

Joint Mandated Lead

Arranger

Investment Agent

Security Agent

Jan 2015

Singapore

Pacific Andes Resources

Dev’t

Initial Public Offering

Sole Financial Adviser

Sole Bookrunner

Joint Underwriter

Feb 2015

Singapore

Hap Seng Consolidated

Berhad

Partial Offer on 51% of

Hafary Holdings Limited


Feb 2015

Malaysia

Weststar Aviation

Services Sdn Bhd

Syndicated Murabahah

Term Financing &

Islamic Working Capital

Facilities Mandated Lead Arranger

Lender

Malaysia

Apr 2015

IJM Corporation Berhad

Privatisation of

IJM Land Berhad

Principal Adviser

May 2015

Malaysia

Malakoff Corporation

Berhad

Initial Public Offering Transaction Manager

Joint Principal Advisor

Joint Global Coordinator

Joint Bookrunner

Joint Managing Underwriter

Joint Underwriter

Apr 2015

Singapore

Pacificlight Power Pte

Ltd / Pacificlight Energy

Pte Ltd

Syndicated Credit

Facilities Financial Advisor

Mandated Lead Arranger

Underwriter

SBLC Issuing Bank

Facility/Security Agent

Mar 2015

Thailand

Platinum Group

Initial Public Offering


Sole Bookrunner

Joint Underwriter

May 2015

Malaysia

Eco World – Ballymore

Holding Company Limited

Syndicated Loan


Joint Bookrunner

May 2015

Jambatan Kedua Sdn Bhd

Malaysia

Islamic Medium Term

Note Joint Lead Arranger

Joint Lead Manager

Joint Bookrunner

Facility Agent

Financial Adviser

Malaysia

Mar 2015

Islamic Trust

Certificates

Joint Bookrunner

PETRONAS Global Sukuk

Ltd

Apr 2015

Cititower Sdn Bhd

JV KLCC (Holdings) Sdn

Bhd & QD Asia Pacific Ltd

Syndicated Islamic Term

Financing


Bookrunner

Joint Underwriter

Malaysia

MYR 1.98 Billion UP TO MYR 1.5 Billion SGD 1.1 Billion THB 5.18 billion UP TO GBP 1.1 Billion UP TO MYR 4.6 Billion USD 1.25 Billion UP TO MYR 3.2 Billion

USD 15 Billion MYR 300 million HKD 728 million MYR 629 Million USD 2.32 Billion SGD 195.5 Million UP TO SGD52.5 Million MYR 1.9 Billion

UP TO MYR1.0 Billion USD 1 Billion USD 800 Million PHP1.0 Billion USD50 Million USD750 Million USD60 Million

http://www.pacificlight.com.sg/

36

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates




7

2

23

27

32

37

41

46

51

54

37

Maybank Singapore (1/3) Net income of SGD 398 million, on higher net fund based income

(SGD mil) 1H FY2015 1H FY2014 YoY

Net Fund Based income 277.02 244.62 13.2%

Net Fee Based income 121.10 150.77 (19.7)%

Net income 398.12 395.39 0.7%

Overhead expenses 176.67 164.94 7.1%

Operating profit 221.45 230.45 (3.9)%

Profit before taxation 199.64 211.03 (5.4)%

PBT was lower by 5.4% YoY or SGD 11.4 million to SGD 199.64 million for 1H FY2015.

Net fund-based income increased by 13.2% YoY on the back of expanded loan base.

Fee-based income declined 19.7% YoY as a decline in both treasury and wealth management

income overshadowed a rise in credit-related fees.

Overhead expenses increased by 7.1% YoY mainly arising from higher personnel cost from

expanded headcount.

38

0.30 0.31 0.28 0.26 0.24 0.31

0.42

0.24 0.23 0.22 0.20 0.20 0.25

0.35

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

GIL Ratio NIL Ratio

7.6 8.5 8.5

4.8 4.2 4.3

4.2 4.4 3.9

4.5 5.6 5.8

6.6 7.5 8.9

2.3 2.1 1.9 2.3 2.6 3.1

Jun 14 Dec 14 Jun 15

Other(Consumer)

Car Loan

Housing Loan

Others(Corporate)

Non-Bankfinancial Inst

GeneralCommerce

Building &Const

Asset Quality increased YoY, on specific accounts Maybank Singapore loans up 9.9% YoY, ahead of industry

growth of 3.4%

Diversified Loan Portfolio

33.2 36.5

Consumer

38%

Corporate

62%

SG

D b

illion

As at 30 June 2015, total loans rose by 8.2% YTD

annualised.

Consumer loans expanded by 29.1% YTD (ann.) to

SGD 14.0 billion, lifted by strong growth in both

housing and other personal loans. Car loans

continued to decline in line with industry trend.

In comparison, business loans contracted by 3.0%

YTD to SGD 22.5 billion. Trade finance loans fell

amid a slowdown in regional trade flows and lower

commodity prices.

13.8% 13.3%

18.8%

21.3%

13.4% 11.6%

9.9%

19.6% 17.3% 16.5%

14.0%

9.3%

6.7% 3.4%

Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15

Maybank Singapore Growth Industry Growth

+9,9% YoY

35.0

+8.2% ann.

Maybank Singapore (2/3) Loans up by 8.2% YTD (ann.) on the back of higher consumer loans

39

4.3 4.8 4.5

9.9 12.1 11.9

4.7 5.1 5.1

16.0 17.6 17.5

Jun-14 Dec-14 Jun-15

Consumer -Time Deposits

Consumer CASA

Business TimeDeposits

Business CASA

Maybank Singapore (3/3) Deposits YoY growth of 11.6% outpaced industry growth of 6.4%

Maybank Singapore deposit up 11.5% YoY in Jun-15,

as compared to the 6.4% rise in system-wide deposit

Consumer deposits account for 58% of our deposits

+11.6% YoY

35.0 39.0

Consumer

58%

Corporate

42%

SG

D b

illion

4.3 4.5 4.5

4.8 5.3 5.1

26.0 29.7 29.4

Jun-14 Dec-15 Jun-15

Time Deposits

Demand Deposits

Savings

CASA Ratio:

24.6%

CASA growth of 6.3% YoY

13.7%

4.1%

3.3%

7.3%

16.5% 17.0%

11.6%

8.7% 6.8% 5.0%

4.4%

7.0%

8.0%

6.4%

Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun-15

Maybank Singapore Growth Industry Growth

As at 30 June 2015, deposits declined by 2.9% YTD (ann.)

to SGD 39.0 billion.

Consumer deposits declined by 0.8% YTD (ann.) to SGD

22.6 billion. Consumer CASA was largely unchanged but

time deposits fell by 1.0% YTD (ann.)

Meanwhile, business deposits fell by 5.9% YTD (ann.) to

SGD 16.4 billion on the back of lower CASA (-12.5% YTD

ann.) and time deposits (-3.3% YTD ann.)

39.6

- 2.9% ann.

40

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates




7

2

23

27

32

37

41

46

51

54

41

(IDR billion) 1H FY2015 1H FY2014 YoY 2Q FY2015 1Q FY 2015 QoQ

Net Fund Based income 3,088 2,785 11% 1,502 1,586 (5)%

Net Fee Based income 1,081 997 8% 461 621 (26)%

Net income 4,170 3,782 10% 1,962 2,207 (11)%

Overhead expenses (2,767) (2,469) 12% (1,314) (1,453) (10)%

Personnel (1,230) (1,088) 13% (600) (630) (5)%

General & Administrative (1,537) (1,381) 11% (714) (823) (13)%

Operating profit 1,403 1,313 7% 648 755 (14)%

Provisions Expenses (952) (703) 35% (525) (426) 23%

Non Operating Income/ Expenses 73 (93) 178% 49 24 101%

Profit Before Tax before Minority

Interest 524 517 1% 172 353 (51)%

Net Profit 388 341 14% 133 256 (48)%

EPS - Basic (IDR) 5.73 5.59 3% 1.96 3.77 (48%)

Bank Internasional Indonesia (1/4) Net profit increased by 14% YoY on higher net fund based income and net fee based income

42

17.7 16.4 16.3 18.4

24.7 24.3 23.5 24.0

64.9 65.2 62.7 64.7

Dec-13 Jun-14 Dec-14 Jun-15

Current Account Saving Account Time Deposit

4.94%4.48%

4.76% 4.73%


30.9 29.4 24.0 21.4

35.3 38.3 40.8 43.3

35.8 38.3 41.5 43.8


Global Banking Business Banking Retail Banking

Net Interest Margin (Consolidated)

Asset Quality (Consolidated)*

Loans composition (Consolidated) IDR Trillion

Deposits (Consolidated) IDR Trillion

108.5 106.3 106.0

2.4% YoY

4.1% ann.

102.0

107.1 102.5 105.9

1.1% YoY

8.9% ann.

107.3

Bank Internasional Indonesia (2/4) Loans growth of 4.1% (ann.) driven by strong growth in retail and business banking

3.61%3.42% 3.34%

3.59%

4.62%

2.77%2.62%

2.44% 2.56%

3.29%

Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

Impaired Loans - Gross Impaired Loans - Net

BII’s reported numbers are based on Bank Indonesia’s accounting classification regulations while

the Maybank Group numbers for BII are based on Group’s management reporting classification

43

0.12%

0.19% 0.15%

0.30% 0.25% 0.14%

0.23%

0.18%

0.37% 0.33%

Jun-14 Sept-14 Dec-14 Mar-15 Jun-15

NPL Net NPL Gross

22,534

630

23,164 25,537

304

25,841

New Used Total

Jun-14 Jun-15

349

420

154 190

Jun-14 Jun-15

Revenue Profit Before Tax

Asset Quality

Revenue and Profit Before Tax IDR billion

Bank Internasional Indonesia (3/4) BII Finance’s PBT increased by 23.8% YoY

Consumer Financing IDR billion 37.3%

23.8%

Unit Financing (unit)

11.6%

51.7%

13.3%

3,001

4,119

Jun-14 Jun-15

44

4,149

4,596

Jun-14 Jun-15

1.47% 1.24% 1.07% 1.09%

1.45%

3.08% 3.03% 2.75% 2.81% 2.91%

Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

NPL Net NPL Gross

Bank Internasional Indonesia (4/4) WOM Finance revenue increased by 16.9% and asset quality remained stable

Consumer Financing IDR billion

716

837

35 (27)

Jun-14 Jun-15

Revenue Profit Before Tax

201

77

278

186

113

300

New Used Total

Jun-14 Jun-15

10.8%

7.5%

47.9%

7.7%

Asset Quality

Revenue and Profit Before Tax IDR billion

Unit Financing (‘000 unit)

16.9%

45

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates




7

2

23

27

32

37

41

46

51

54

46

27.61

24.48 25.93

4.70

10.70

15.13

30.23

28.33 27.98

4.64

12.28

18.40

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

RM b

illio

n

Dec-14 Jun-15

GB: 37%

Islamic Banking (1/2) Higher Group Islamic Banking PBT of 12.3% for 1H FY2015 on the back of strong financing growth

Group Islamic Banking Financial Performance

Note: Group Islamic Banking includes Maybank Islamic and the Group’s

other Islamic operations

RM million 1H

FY2015

1H

FY2014 YoY

Total Income 1,899.8 1,617.7 17.4%

Profit Before Tax 748.6 666.6 12.3%

Maybank Islamic: Improving key ratios

1H

FY2015

1H

FY2014

Net Profit Margin (NPM) YTD 1.96% 1.89%

Return on Risk-Weighted Assets

(RRWA) 2.55% 2.40%

Cost to Income Ratio* 38.14% 37.50%

*Cost for 1H FY2014 is normalised after adjustment

CFS: 21 %

Maybank Islamic: Total Gross Financing grew by

25% (ann.) to RM121.9 billion p19%

p31% p16%

q3%

p30%

p43%

Maybank Islamic contribution to Maybank

Malaysia Financing as at June 2015

47

Islamic Banking (2/2) Maybank Islamic Malaysia maintained its leadership for both financing and deposit

Jun 15 Jun 14

Automobile financing 41.5% 37.5%

Home Financing 26.8% 24.3%

Term financing 30.1% 29.8%

CASA Deposits 31.8% 31.4%

Maybank Islamic Market Share (Malaysia) Market Share by Product

30.7% 31.1% 31.6%32.7% 33.0% 33.4%

24.1%25.1% 24.7% 24.9% 24.4% 24.8%

15.0%

20.0%

25.0%

30.0%

35.0%

Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15

Financing Deposit

Maybank ranks No.1 by Asset Market Share in Malaysia

Source: BNM monthly statistical bulletin Mar-15 and respective Bank’s Financial

Statements

Malaysia Asset Market Share

Mar 15 Rank

Maybank Islamic 30% 1

CIMB Islamic 11% 2

Bank Islam 9% 3

Source: Bloomberg

Sukuk League Table Ranking for 1H 2015

48

Insurance and Takaful Gross premiums for life/family and general rose 3.8% YoY

Total Assets (RM billion)

Gross Premium

Profit Before Tax (RM million)

-43.9% YoY

• PBT includes estimated transfer of RM30.4 million from Family Fund in 1H FY2015.

- 0.7% YoY

- 3.1% YTD

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 Apr’14 – Mar’15 (Source: LIAM / ISM Statistics)

10.2%

14.3%

14.9%

18.6%

0.0% 5.0% 10.0% 15.0% 20.0%

Etiqa Ins. & Tak.

GE Ins. & Tak.

Prudential Ins. & Tak.

AIA Ins. & Tak.

8.3%

11.1%

13.1%

0.0% 5.0% 10.0% 15.0%

AmGeneral Insurance

Allianz Insurance

Etiqa Ins. & Tak.

General Insurance and Takaful Market Share

27.3 27.5 27.1

Jun 14 Dec 14 Jun 15

355.0

199.0

1H FY2014 1H FY2015

49

48,670.6

53,110.5 52,483.0

50,400.7

Dec 14 Jun 15

PESO

Mil

GrossLoans

CustomerDeposits

1,882.3

2,323.3

295.9 383.7

1H FY2014 1H FY2015

PESO

Mil

Revenue

PBT

Maybank Philippines PBT growth of 29.7% YoY driven by higher net interest income and non-interest income

Revenue and PBT

Revenue improved by 23.4% or PESO441.0 mil YoY due to higher

net interest income and non-interest income, on the back of

positive loan growth, increase in commissions and higher gain on

sale of securities.

PBT increased by 29.7% or PESO87.8 mil YoY on the back of

higher income but was partly offset by the increase in overheads

and higher loan loss provisions.

Gross Loans grew by 18.2% (ann.) driven by the increase in

corporate loans and auto loans.

Customer Deposits declined by 7.9% (ann.) caused by the drop in

Current Accounts and Fixed Deposits.

Gross impaired loans ratio was higher by 19 bps to 3.70% from

3.51% previously, impacted by the Credit Card and Auto

segments.

Gross Loans and Deposits

Key Highlights

*Annualised growth

+23.4% YoY

29.7% YoY

+18.2%*

-7.9%*

Key Ratios 1H FY2015 1H FY2014

Return on assets 0.96% 0.81%

Return on equity 6.07% 1.17%

Cost-to-income ratio 73.76% 80.04%

Loans-to-deposit ratio 105.38% 95.03%

Gross Impaired Loans Ratio 3.70% 3.51%

No. of branches 79 79

50

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates




7

2

23

27

32

37

41

46

51

54

51

42,633.1 42,116.6

45,403.7

43,127.8

Dec 14 Jun 15

GrossLoans

CustomerDeposits

784.4

986.0

170.3 161.1

1H FY2014 1H FY2015

Revenue

PBT

An Binh Bank Higher revenue growth of 25.7% YoY on higher fee income

Revenue and PBT


-2.4%*

-10.0%*

-5.4% YoY

+25.7% YoY

Key Highlights

VN

D B

il

VN

D B

il

*Annualised growth

Revenue increased 25.7% or VND201.6 billion primarily

contributed by higher fee income.

However, PBT dropped by 5.4% or VND9.2 billion due to

higher loan loss provision made.

Overheads increased by 10.2% due to higher admin and

general expenses.

Gross Loans was marginally lower by 2.4% (ann.) or

VND516.5 billion due to lower FI lending.

Customer Deposits decreased by 10.0% (ann.) or VND2,275.9

billion mainly due to the drop in corporate fixed deposits by

VND1,816.0 billion.

Gross NPL ratio improved to 2.8% from 5.6% contributed by

lower NPL amount compared to prior year.





Loans to deposit ratio 97.66% 92.05%

Gross NPL Ratio 2.80% 5.58%

52

322.8 333.5

676.0 738.4

Dec 14 Jun 15

Gross Loans

CustomerDeposits

PKR b

illion

27.1

34.4

18.1

24.2

1H FY2014 1H FY2015

Revenue

PBT

+33.7% YoY

PBT increased by 33.7% YoY contributed by higher revenue.

Net interest income grew by 15.9% YoY, in tandem with

the growth in loans and investments.

Non-interest income grew by 68.7% YoY mainly

contributed by higher gain on sale of securities and

higher commissions and brokerage income.

Gross Loans rose by 6.6% (ann.) driven by higher domestic

loans.

Customer Deposits increased by 18.5% (ann.) contributed

by an increase in CASA.

Gross NPL ratio improved by 93 bps due to a decrease in

NPL balance and higher loan balance.

MCB Bank PBT increased by 33.7% YoY, on higher revenues and lower provisions

Revenue and PBT


+18.5%*

+26.9% YoY

Key Highlights

PKR b

illion

*Annualised growth

+6.6%*





Loans to deposit ratio 45.16% 45.08%

Gross NPL Ratio 6.36% 7.29%

53

Table of Contents

Executive Summary


Prospects & Outlook



2. Global Banking


5. Other segments

6. Affiliates




7

2

23

27

32

37

41

46

51

54

54

Key Operating Ratios

¹ Total cost excludes amortisation of intangibles for BII and Kim Eng.

² The capital ratios are adjusted based on the assumption of 80% reinvestment rate under the DRP for 1H FY2015 and 85% reinvestment rate for 1Q FY2015 and 1H FY2014

(%) 1H

FY2015

1H

FY2014

Variance

YoY

2Q

FY2015

1Q

FY2015

Variance

QoQ

2Q

FY2014

Return on Equity 12.1 13.5 (1.4)% 11.7 12.8 (1.1)% 13.4

Net Interest Margin 2.28 2.36 (8) bps 2.28 2.26 2 bps 2.35

Fee to Income Ratio 29.5 29.8 (0.3)% 27.5 31.5 (4.0)% 30.0

Loans-to-Deposit Ratio 94.2 90.6 3.6% 94.2 92.2 2.0% 90.6

Cost to Income Ratio1 49.5 47.4 2.1% 49.2 49.7 (0.5)% 46.3

Asset Quality

Gross Impaired Loans Ratio 1.56 1.50 6 bps 1.56 1.50 6 bps 1.50

Net Impaired Loans Ratio 1.15 0.97 18 bps 1.15 1.06 9 bps 0.97

Loans Loss Coverage 83.4 107.7 (24.3)% 83.4 93.5 (10.1)% 107.7

Net Charge off rate (bps) (27) (20) (7) bps (29) (24) (5) bps (17)

Capital Adequacy (Group)²

CET1 Capital Ratio 11.48 11.44 4 bps 11.48 11.15 33 bps 11.44

Total Capital Ratio 15.54 15.96 (42) bps 15.54 15.35 19 bps 15.96

55

Group Gross Loans by quarter

¹ Including Islamic loans sold to Cagamas and excludes unwinding of interest

²Takes into account others portion - Jun 15: RM15 million; Mar 15: RM7 million; Dec 14: RM7 million

³ Normalised loan growth as at 31 Mar 2015 & 30 Jun 2015, prior to a transfer of SGD 2.2 billion from GB to CFS for Business Banking segment due to realignment to the Group

Customer Segmentation

31 Dec 2014 31 Mar 2015

1Q

Annualised 30 Jun 2015

2Q

Annualised

Group Gross Loans¹ 410.5 419.0 8.4% 433.3 13.6%

Malaysia (RM billion) ² 243.6 245.9 3.8% 248.8 4.6%

Community Financial Services 168.8 171.8 7.2% 175.3 8.1%

Global Banking 74.8 74.1 (3.9)% 73.4 (3.5)%

International (RM billion) 162.4 167.0 11.3% 178.7 28.1%

Singapore (SGD billion) 35.1 35.0 (1.1)% 36.6 17.5%

Community Financial Services (reported) 14.8 17.7 79.7% 19.1 30.3%

Community Financial Services (normalised) 14.8 15.5³ 18.9% 16.8³ 33.5%

Global Banking (reported) 20.1 17.0 (60.6)% 17.2 4.4%

Global Banking (normalised) 20.1 19.2³ (17.9)% 19.4³ 6.3%

Others 0.3 0.3 (1.1)% 0.3 (9.2)%

Indonesia (Rupiah trillion) 109.3 110.7 5.0% 111.4 2.6%


Global Banking 24.9 24.7 (3.6)% 22.2 (41.0)%

Others 0.3 0.4 99.0% 0.3 (70.8)%

Other markets (RM billion) 38.8 41.3 26.2% 44.6 31.8%

Investment banking (RM billion) 4.4 6.1 152.8% 5.8 (19.7)%

56

Malaysia Gross Loans by quarter

¹ Re-based loan growth figures are based on adjusted 31 Dec 2014 position in line with migration of client accounts, implemented on 1 Jan 2015.

² Including Islamic loans sold to Cagamas and excludes unwinding of interest and takes into accounts others portion - Jun 15: RM15 million; Mar 15: RM7 million; Dec 14: RM7 million

RM billion 31 Dec 2014 31 Mar 2015 1Q

Annualised 30 June 2015

2Q

Annualised


Consumer 135.7 138.9 9.2% 141.4 7.3%

Total Mortgage 60.9 62.8 12.1% 65.1 14.7%

Auto Finance 38.6 39.7 10.7% 40.4 7.0%

Credit Cards 5.8 6.0 12.7% 6.0 (3.5)%

Unit Trust 28.3 28.3 0.4% 27.7 (7.8)%

Other Retail Loans 2.1 2.1 3.8% 2.3 26.9%

Business Banking + SME 33.1 33.0 (0.9)% 33.9 11.5%

Business Banking + SME (Re-based¹) 31.9 33.0 13.7% 33.9 11.5%

SME 7.5 7.9 21.7% 8.9 46.8%

Business Banking 25.5 25.1 (7.5)% 25.1 0.3%

Global Banking (Corporate) 74.8 74.1 (3.9)% 73.4 (3.5)%

Total Malaysia² 243.6 245.9 3.8% 248.8 4.6%

57

31 Dec 2014 31 Mar 2015 1Q

Annualised 30 Jun 2015

2Q

Annualised

Group Gross Deposits 439.6 447.1 6.8% 453.5 5.7%

Malaysia (RM billion) 278.3 278.6 0.4% 285.4 9.7%

Savings Deposits 38.5 39.7 12.6% 40.3 5.9%

Current Accounts 72.8 74.9 11.7% 72.5 (12.9)%

Fixed Deposits 140.8 143.6 8.1% 155.2 32.2%

Others 26.2 20.3 (89.7)% 17.4 (58.5)%

International 162.9 170.0 17.5% 169.6 (0.8)%

Singapore (SGD billion) 39.6 39.2 (3.9)% 39.0 (1.9)%

Savings Deposits 4.5 4.3 (20.9)% 4.5 17.8%

Current Accounts 5.3 5.3 0.2% 5.1 (15.7)%

Fixed Deposits 29.0 28.7 (3.3)% 28.9 2.0%

Others 0.8 0.9 45.6% 0.5 (144.9)%

Indonesia (Rupiah trillion) 102.8¹ 104.7 7.6% 106.9 8.3%

Savings Deposits 23.5 23.7 4.2% 24.0 5.6%

Current Accounts 16.3 17.3 23.8% 18.4 24.1%

Fixed Deposits 62.4 63.7 8.1% 64.5 5.1%

Group Gross Deposit by quarter

¹ Includes Others of Rupiah 0.6 trillion

58

Mohamed Rafique Merican

Group Chief Financial Officer

Contact: (6)03-2074 7878

Email: [email protected]

MALAYAN BANKING BERHAD

14th Floor, Menara Maybank

100, Jalan Tun Perak

50050 Kuala Lumpur, Malaysia

Tel : (6)03-2070 8833

www.maybank.com

Narita Naziree

Head, Group Performance Reporting & Investor Relations

Contact: (6)03-2074 8017

Email: [email protected]

Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the

information that may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or on behalf of the

Company as to the accuracy or completeness of the information or opinions contained in this presentation.

The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of

it form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or their contents or otherwise arising in

connection therewith.

Investor Relations Contact

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