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FINANCIAL RESULTSFirst Half FY2011 ended 31 Dec 2010Analyst Briefing                      21 February 2011
Executive Summary     Financial Performance         Business Review        Country Review                   iTransformatio...
Key Highlights■ Better Financial Performance     ■ PATAMI for 2Q11 grew 9.4% QoQ and 13.3% YoY to RM1.13 billion.         ...
YTD Key Performance Indicators (KPI) for FY2011         Headline KPIs                                Target            1H1...
Executive Summary     Financial Performance         Business Review        Country Review        Co ntr Re ieTransformatio...
2Q11 PATAMI rose 13.3% YoY to RM1.13 billion                                                                             Q...
Half Year PATAMI rose 14.8% YoY to RM2.15 billion                                                                        H...
Normalised PBT for 1H11 grew 18.0% YoY             RM Million                                  1H11              1H10     ...
Gross loans grew 12.5% annualised, driven by International                                                                ...
Deposits grew 9.5% annualised                                     Malaysia                    Singapore                   ...
Non‐Interest Income grew 8.3% YoY                       including  Islamic  operation,             +8.3%      Insurance In...
Asset Quality: Continues to improve                                      Pre‐FRS 139                                      ...
Overheads grew 7.8% YoY                                                             +7.8% YoY                             ...
Maybank Group: Key Ratios                                                   1H11      1H10      2Q11              1Q11    ...
Maintained High Dividend Payout Ratio and expect similar reinvestment rate     ■   Interim dividend payout of 28 sen (21 s...
Capital Adequacy remains robust                                                        Group                              ...
Executive Summary     Financial Performance         Business Review        Country Review        Co ntr Re ieTransformatio...
Strong performance in CFS and GWB’s corporate and international banking                                                5.1...
Community Financial Services: Mortgage Loans and Hire Purchase Growth in mortgage loans surpassed RM900 million in 2Q11   ...
Community Financial Services: Cards continues to gain market share       Cards Market Share                               ...
Business Banking and SME Loans grew 3.2% annualised                                           Deposits grew 22.1% annualis...
Global Wholesale Banking: Loans growth improved to 4.8% annualised            Total GWB loans (RM billion)                ...
Global Markets growth supported mainly by trading activities Growth in Revenue                                          Cr...
Brokerage activities contributed majority of IB income  Fee based Income                                                  ...
Maybank Islamic maintains strong financing growth of 23.5% annualised         Income and PBT                              ...
Insurance: Etiqa maintains No. 2 Overall Position Combined Gross Premium                                                  ...
Executive Summary     Financial Performance         Business Review        Country Review        Co ntr Re ieTransformatio...
Revenue and PBT by geography           Gross Revenue (RM million)                                                  Interna...
Singapore: PBT improved 15.7% on higher fee income and lower provision   Revenue and PBT rose 8.3%% and 15.7% YoY respecti...
Bank Internasional Indonesia    Income Statement    I      St t    t                                                      ...
Bank Internasional IndonesiaRevenue and PBT (Rp billion) for full FY10 (as reported in BII)                           Net ...
Bank Internasional Indonesia Branches and ATM Branches and ATM                                                            ...
Bank Internasional Indonesia: WOM Finance        Revenue and PBT                                                          ...
MCB Bank: Financial Highlights      Revenue and PBT                                     Loans and Deposits                ...
Executive Summary     Financial Performance         Business Review        Country Review        Co ntr Re ieTransformatio...
Progress of Transformation Programme                                      Community Financial Services                    ...
Progress of Kim Eng acquisition                                             ( g )                                         ...
Progress of Transformation Programme                             Insurance (Etiqa)                             ■ Completed...
Executive Summary     Financial Performance         Business Review        Country Review        Country ReviewTransformat...
Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations
Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations
Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations
Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations
Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations
Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations
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Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations

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Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations

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Malayan Banking Berhad Financial Results - First Half FY2011 ended 31 Dec 2010 Analyst Presentations

  1. 1. FINANCIAL RESULTSFirst Half FY2011 ended 31 Dec 2010Analyst Briefing 21 February 2011
  2. 2. Executive Summary Financial Performance  Business Review Country Review iTransformation Programme Update Economics and Key Takeaways 1
  3. 3. Key Highlights■ Better Financial Performance ■ PATAMI for 2Q11 grew 9.4% QoQ and 13.3% YoY to RM1.13 billion. 1H11 PATAMI grew 14.8% YoY to RM2.15 billion. ■ Revenue for 1H11 grew 5.1% contributed by revenue growth from Community Financial  Services (6.1%), Corporate Banking (11.8%), Singapore (8.3%) and BII (16.0%).  ■ Group loans grew 12.5%, contributed by CFS consumer loans growth (12.3%), recovery in  Domestic Corporate Loans (+4.8%), Singapore (17.8%) and BII (27.3%). ■ Allowances for loss on loans declined due to higher bad debt recovery.  Net Impaired Loan  ratio declined to 2.74% from 2.99% the preceding quarter. ■ KPIs on track to achieve targets for FY2011. Normalised ROE of 15.0%  is ahead of full year  target of 14%.■ Transformation making good progress ■ Global Wholesale Banking regionalisation: Kim Eng acquisition a significant step for Group to Global Wholesale Banking regionalisation: Kim Eng acquisition a significant step for Group to  become a leading ASEAN wholesale bank. ■ Community Financial Services: Improved SME growth loans through branches. ■ IT transformation programme: Phased roll‐out beginning with front‐end systems. ■ I l i B ki Islamic Banking:  Expanding in Indonesia with launch of Maybank Syariah I d E di i I d i ith l h f M b k S i h Indonesia. i■ High Dividend Payout ■ Dividend Payout Ratio of 71.4% with the benefit of Dividend Reinvestment Plan (DRP) exceeds  dividend policy rate of between 40‐60%. ■ Interim gross dividend of 28 sen (21 sen net) with 18 sen electable portion eligible for DRP. 2
  4. 4. YTD Key Performance Indicators (KPI) for FY2011 Headline KPIs  Target 1H11 achievements Return on Equity  14% 15.0% (normalised) Loans and Debt Securities Growth  12% 12.4% annualised Other targets h Target 1H11 achievements h Loans Growth • Malaysia 12% 8.5% • Singapore 5% 17.8% • BII 24% 27.3% Net Interest Margin  Net Interest Margin Stable  Stable 2.75% ( 3 bp 2.75% (‐3 bp YoY) Dividend Payout Ratio  40%‐60%  71.4% Note: Loans growth for Singapore and BII are in local currency 3
  5. 5. Executive Summary Financial Performance  Business Review Country Review Co ntr Re ieTransformation Programme Update Economics and Key Takeaways 4
  6. 6. 2Q11 PATAMI rose 13.3% YoY to RM1.13 billion Quarter Q RM million QoQ  YoY  2Q11 1Q11 2Q10 Change Change Net interest income       1,813.2      1,774.5 2.2%       1,683.1 7.7% Income from Islamic Banking  I f I l i B ki         392 9         338 2 392.9 338.2 16.2% 16 2%         355 9 355.9 10.4% 10 4% Net income from insurance business*             41.0              86.8 ‐52.7%             82.5 ‐50.2% Non‐interest income       1,034.9          954.2 8.5%            994.9 4.0% Net income 3,282.1     3,153.7 4.1%      3,116.4 5.3% Overhead expenses Overhead expenses    (1 634 1)    (1 502 1) (1,634.1) (1,502.1) 8.8% 8 8%    (1 488 7) (1,488.7) 9.8% 9 8% Operating Profit before allowances for        1,648.0      1,651.6 ‐0.2%       1,627.7 1.3% losses on loans Allowance for losses on loans         (117.5)          (264.7) ‐55.6%         (252.8) ‐53.5% Impairment losses on securities, net Impairment losses on securities, net             (6.3)          (13.9) ‐54.8% 54.8%             (9.8) ‐35.9% 35.9% Operating Profit       1,524.2      1,373.0 11.0%       1,365.0 11.7% Share of profits in associates             37.8              31.4 20.6%             35.0 8.1% Profit before taxation and zakat       1,562.0      1,404.3 11.2%       1,400.0 11.6% Taxation & Zakat        (435.4)       (350.7) 24.1%        (376.6) 15.6% Minority Interest              (1.4)           (25.5) ‐94.6%             (29.9) ‐95.4% Profit after Tax and Minority Interest         1,125.2       1,028.1 9.4%            993.5 13.3% (PATAMI) EPS (sen) 15.72 14.53 8.2% 14.04 12.0% *net of insurance claims 5
  7. 7. Half Year PATAMI rose 14.8% YoY to RM2.15 billion Half Year RM million YoY  1H11 1H10 Change Net interest income      3,587.8       3,310.7 , , 8.4% Income from Islamic Banking            731.1           737.5 ‐0.9% Net income from insurance business*           127.8           154.5 ‐17.3% Non‐interest income       1,989.2       1,922.6 3.5% Net income       6,435.8       6,125.2 5.1% Overhead expenses     (3,136.1)      (2,908.3) 7.8% Operating Profit before allowances for        3,299.7       3,216.9 2.6% losses on loans Allowance for losses on loans           (382.2)           (679.5) ‐43.7% Impairment losses on securities, net Impairment losses on securities net           (20 2) (20.2)            (42 1) (42.1) ‐52.0% 52 0% Operating Profit       2,897.2       2,495.4 16.1% Share of profits in associates               69.2               60.8 13.8% Profit before taxation and zakat       2,966.4       2,556.2 16.0% Taxation & Zakat Taxation & Zakat        (786.1)         (626.0) 25.6% Minority Interest            (26.9)            (54.8) ‐50.9% Profit after Tax and Minority Interest        2,153.4       1,875.3 14.8% (PATAMI) EPS (sen) 30.25 26.50 14.1% *net of insurance claims 6
  8. 8. Normalised PBT for 1H11 grew 18.0% YoY           RM Million 1H11 1H10 YoY    Profit before tax (PBT)       2,966.4       2,556.2 16.0%    Unrealised (Gains)/Losses on derivatives          (237.7)          (178.3)    Forex MTM losses: Cross currency swap  Forex MTM losses: Cross currency swap          147.4            64.5    Realised forex (gain): USD519m open position            (37.8)            (48.5)    Amortisation on Core Deposits (BII)               40.7               46.2    Normalised PBT         2,879.0         2,440.1 18.0%    Normalised PATAMI         2,132.3         1,775.2 20.1% 7
  9. 9. Gross loans grew 12.5% annualised, driven by International  QoQ  Ann.  YoY  RM billion Dec 10 Sep 10 Jun 10 Dec 09 Growth Growth Growth y Community Financial Services 106.1 105.7 101.0 98.0 0.4% 10.1% 8.3%    Consumer 81.2 78.4 76.5 71.0 3.6% 12.3% 14.4%             Total Mortgage 36.2 35.2 34.6 32.9 2.7% 9.4% 10.0%             Auto Finance 24.3 23.3 22.8 21.4 4.1% 13.5% 13.7%             Credit Cards 4.4 4.2 4.1 3.9 4.9% 12.0% 13.3%             Unit Trust Unit Trust 14.7 14 7 14.2 14 2 13.7 13 7 11.2 11 2 3.5% 3 5% 15.6% 15 6% 32.0% 32 0%             Other Retail Loan 1.6 1.5 1.4 1.7 11.0% 30.9% ‐6.3% Business Banking + SME 24.9 24.0 24.5 23.7 3.9% 3.2% 5.3% Global Wholesale Banking (Malaysia) 45.9 43.3 44.8 42.6 5.8% 4.8% 7.7% Other Loans 0.2 0.2 0.2 0.2 ‐16.7% ‐22.8% 4.7% Total Domestic 152.2 146.0 146.0 137.1 4.3% 8.5% 11.0% International 76.3 70.3 69.1 67.4 8.6% 20.9% 13.3%     Singapore (SGD billion) 19.1 17.8 17.5 17.0 7.5% 17.8% 12.1%     BII (Rupiah trillion) 53.7 50.8 47.3 39.6 5.7% 27.3% 35.5%     Others Others 12.5 12 5 11.2 11 2 11.8 11 8 11.6 11 6 11.4% 11 4% 12.9% 12 9% 7.7% 7 7% Gross Loans 228.7 216.4 215.2 204.7 5.7% 12.5% 11.7% 8
  10. 10. Deposits grew 9.5% annualised Malaysia Singapore BII Group Annualised  J Annualised  J Annualised  J Annualised  RM bil SGD bil Rupiah bil RMb Growth Growth u Growth Growth Savings Deposits           29.5 9.2%               2.7 12.1%           13.8 22.6%           41.2 12.6% Current Accounts Current Accounts           41.5 7.5%            2.4 29.0%           10.2 26.7%          51.3 10.4% Fixed Deposits           73.2 13.2%             16.4 ‐1.5%           33.2 30.8%         136.3 9.7% Others           18.5 ‐1.7%               0.4 12.0% ‐ ‐           19.3 ‐0.9% Total Deposits          162.6 9.2%             21.8 3.2%           57.2 28.0%         248.1 9.5% Low cost funds (CASA) 43.7% 23.1% 41.9% 37.3% LD Ratio LD Ratio 88.9% 88 9% 87.5% 87 5% 90.7% 90 7% 88.4% 88 4% Loans‐to‐Deposit ratio Group 86.8% 87.0% 88.4% 88 4% 84.4% 84.8% Malaysia 88.8% 89.3% 88.9% 85.7% 85.8% Singapore 87.5% 84.1% 83.1% 82.6% 81.2% 91.3% 90.7% 88.4% BII 83.5% 83 5% 84.3% 84 3% 2Q10 3Q10 4Q10 1Q11 2Q11 9
  11. 11. Non‐Interest Income grew 8.3% YoY including  Islamic  operation,  +8.3% Insurance Income and forex income from customers  only 2,156.4 2,335.1 +3.5% As reported 2,335.1  +4.7% 2,156.4  1,230.2  1,174.7  +4.9% +86.5% ‐41.5% +71.6% ‐17.3% +11.6% 289.5  289.4  108.6  276.0  153.7  154.5  179.0  199.8  155.2  89.8  63.3  127.8  Total non  Commission,  Foreign  Investment &  Other  Fee income  Net income  Unrealised  interest  service  Exchange  Trading  income from Islamic  from  gain/(losses)  income charges and  income from  Income Operation insurance  on securities  fees customers business & derivatives 1H10 1H11 10
  12. 12. Asset Quality: Continues to improve Pre‐FRS 139 Post‐FRS 139 113.2% 124.5% 125.6% 131.8% 117.8% 120.5% 87.6% 84.1% 112.9% 84.6% Loan loss coverage Loan loss  4.63% 4.70% 4.20% Gross Impaired Loan  Ratio 3.46% 3.50% Net Impaired Loan  3.27% 3.07% Ratio 2.89% 2.79% 2.47% 2.83% 2.99% 2.74% 1.64% 1.60% 1.43% 1.36% 1.22% 1.20% 1.00% 9.96 10.12 9.6 6.72 6.96 6.67 6.31 6.19 6.02 5.63RM billion 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Day 1  1Q11 2Q11 1 Jul 10 Gross NPL / Impaired Loans 11
  13. 13. Overheads grew 7.8% YoY +7.8% YoY +7 8% YoY 2Q11 1H11    Overhead Expenses YoY QoQ YoY    Personnel Costs * 10.8% 0.7% 16.6% +9.8% YoY 1,020.9     IT Expenses ‐9.1% 10.0% ‐9.6% 980.0     Marketing Expenses 6.8% 41.6% ‐11.0% +8.8% QoQ    Admin, general expenses 14.1% 16.8% 4.2% 210.9    & fees & brokerage 237.0  233.4     Total 9.8% 8.8% 7.8% 258.1  illion 550.0  470.9  470 9 RM mi 481.9  87.3  123.6  115.8  122.3  111.2  1,670.9  134.5  1,433.2  Admin, general expenses & fees & brokerage 832.7  832 7 838.2  838 2 Marketing Expenses Marketing Expenses 756.5  IT Expenses Personnel Costs 2Q10 1Q11 2Q11 1H10 1H11 12
  14. 14. Maybank Group: Key Ratios 1H11 1H10 2Q11 1Q11 4Q10 3Q10 2Q10 1Q10 Net Interest Margin 2.75% 2.78% 2.70% 2.69% 2.88% 2.76% 2.77% 2.82% Return on Equity (normalised) 15.0% 13.7% 13.9% 14.8% 14.5% 13.8% 14.3% 13.4% Fee to Income Ratio  34.6% 32.4% 33.5% 31.7% 35.2% 37.5% 38.4% 35.6% Cost to Income# 48.7% 47.5% 49.8% 47.6% 48.1% 48.7% 49.2% 48.5% Loan‐to‐Deposit Ratio 88.4% 84.5% 88.4% 87.3% 86.8% 84.8% 84.5% 87.3% Post FRS  Pre FRS  Pre FRS 139 139 139 Asset Quality Gross NPL or Impaired Loan Ratio 4.20% 3.27% 4.20% 4.70% 2.79% 2.89% 3.07% 3.27% 3.50% Net NPL or Impaired Loan Ratio 2.74% 1.43% 2.74% 2.99% 1.20% 1.22% 1.36% 1.43% 1.60% Loan Loss Coverage 84.6% 117.8% 84.6% 84.1% 125.6% 124.5% 120.5% 117.8% 113.2% Charge off rate (bps) Ch ff (b ) 36 64 22       49          43        57        38        48        77 Capital Adequacy (Group) Core Capital Ratio 11.85% 10.76% 11.85%** 11.37%* 10.70% 11.06% 10.67% 10.76% 10.43% Risk Weighted Capital Ratio 14.21% 14.61% 14.21%** 14.04%* 13.64% 14.67% 14.50% 14.61% 14.28% *After Basel II and at 89% electable portion dividend reinvested ** After Basel II and Full reinvestment of DRP #Total cost excluding amortisation of intangibles 13
  15. 15. Maintained High Dividend Payout Ratio and expect similar reinvestment rate ■ Interim dividend payout of 28 sen (21 sen net) subject to Dividend Reinvestment Plan ■ Net dividend of 21 sen = 3 sen cash portion + 18 sen electable portion ■ Dividend Payout Ratio of 71.4% exceeds policy of 40‐60% Dividend Payout Ratio. Gross Dividend (sen) and Payout Ratio (%) 76.5% 76 5% 71.4% 71 4% 70.0% 60.0% 61.0% 32 20 Final 44 Interim  32 29 28 8 11 FY07 FY08 FY09 FY10 FY11 14
  16. 16. Capital Adequacy remains robust Group 14.21% 14.04% 13.66% 11.37% 11.29% 11.85% 30 Sep 10 p 31 Dec 10 31 Dec 10 89% electable portion reinvested Assume no reinvestment of DRP Assume full reinvestment of DRP Risk‐weighted capital ratio Core capital ratio Bank 13.82% 12.98% 12 98% 13.68% 30 Sep 10 31 Dec 10 31 Dec 10 89% electable portion reinvested 89% electable portion reinvested Assume no reinvestment of DRP Assume no reinvestment of DRP Assume full reinvestment of DRP Assume full reinvestment of DRP Core capital ratio & Risk‐weighted capital ratio 15
  17. 17. Executive Summary Financial Performance  Business Review Country Review Co ntr Re ieTransformation Programme Update Economics and Key Takeaways 16
  18. 18. Strong performance in CFS and GWB’s corporate and international banking 5.1% Global Wholesale Banking (GWB) Global Wholesale Banking (GWB) 6125.2 6435.8 1H10 1H11 (RM million) 6.1% 2,984.9  11.8% 2.3% 4.3% 13.8% ‐7.5% 2,813.4  2 813 4Revenue ( 2,139.4  1,879.9  594.3  812.0  794.0  531.6  319.0  295.0  138.5  144.4  Total Community  Corporate Banking Global Market Investment  International  Insurance, Takaful  Financial Services Banking Banking & Asset  Management Profit before tax (RM million) 16.0% Global Wholesale Banking (GWB) Global Wholesale Banking (GWB) 2,966.4  2,556.2  54.0% 13.9% ‐6.7% ‐39.3% 16.0% ‐48.0% 1,431.8  1 431 8 929.6  658.9  818.1  439.1  706.5  705.5  385.7  101.4  175.4  61.6  91.2  Total Community Financial  Corporate Banking Global Market Investment Banking International Banking Insurance, Takaful &  Note: Head Office & Others: Revenue: –RM351.1m (1H10) vs –RM534.3m (1H11), PBT:  ‐RM447.9m (1H10)  vs –RM534.3m (1H11) Services Asset Management 17
  19. 19. Community Financial Services: Mortgage Loans and Hire Purchase Growth in mortgage loans surpassed RM900 million in 2Q11 g g p Q Mortgage Loans: Improving Asset Quality Mortgage Loans: Improving Asset Quality 966.3 7.4% 855.3 888.2 6.9% 783.2 6.3% 665.8 5.4% 5.0% 556.8 4.6% RM million 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Gross NPL Growth in HP loans surpassed RM900 million in 2Q11 Hire Purchase : Asset Quality remains low 970.7 0.9% 782.1 0.8% 0.8% 0.7% 0.7% 569.0 559.6 601.0 581.2 0.6%RM million 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Gross NPL 18
  20. 20. Community Financial Services: Cards continues to gain market share Cards Market Share Cards performance against industry  Dec 10 Dec 09 YoY Maybank Industry* Cardbase 16.3% 15.5% Cardbase ‐16.8% ‐21.2% Billings  Billings 22.0% 21.6% Billings  Billings 17.5% 13.6% Receivables 14.0% 14.1% Receivables 13.3% 15.1% Merchant Sales 29.8% 29.1% Merchant Sales 11.6% 12.9% • Card base excludes Debit cards Card base excludes Debit cards • Industry figures for cards includes commercial banks and non FI players Industry figures for cards includes  commercial banks and non‐FI players • Merchant and Billings consist of transactions done through  Credit, Charge and Debit cards Cards Receivables +13.3% YoY 13.3% YoY +12.1% annualised 5 4.38 4.13 4.18 3.70 3.87 3.90 4 llion 3 RM bil 2 1 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 19
  21. 21. Business Banking and SME Loans grew 3.2% annualised Deposits grew 22.1% annualised +22.1% ann. +3.2% ann. +3 2% ann +3.1% QoQ +9.8% QoQ 64.72 24.93 24.53 24.17 58.93 58.27RM million RM million Jun 10 Sep 10 Dec 10 Jun 10 Sep 10 Dec 10 Market share recovering NPL declining 11.4% 15.8% 15.6% 7.5% 6.5% Maybank Maybank 5.8% 5.3% Industry 4.7% 15.0% Dec 09 Jun 10 Dec 10 Dec 09 Jun 10 Dec 10 20
  22. 22. Global Wholesale Banking: Loans growth improved to 4.8% annualised Total GWB loans (RM billion) Recovery in Trade Finance Market Share 27% 7,523  Dec 10 D 10 Trade Finance +6.4% 7,288  Jun 10 26% 25% Trade Finance Market Share Short Term  13,379  24% +8.9%Revolving Credit 23.4% 12,811  22.9% 22.8% 23% 22.5% 23.0% 22.6%22.5% 22.6% 22.8% 22.2% 22% 22.4% Term Loan &  24,964  +2.1% Overdraft 24,705  21% 20% Feb‐10 May‐10 Jan‐10 Mar‐10 Apr‐10 Jun‐10 Jul‐10 Aug‐10 Sep‐10 Oct‐10 Nov‐10 Total GWB loans grew 4.8% annualised to  RM45.9 billion as at 31 Dec 10. 21
  23. 23. Global Markets growth supported mainly by trading activities Growth in Revenue Credit Rating for Private Debt Securities in Malaysia +2.3% +2 3% +28.5% 794.0 812.0 631.8 357.3 357 3 A and below,  A and below AAA, 37.2% AAA 37 2% 475.0 34.4% 454.3 436.7 337.0 177.5 ‐AA to AA,  1H10 2H10 1H11 28.4% Net interest income Non interest income Growth in PBT Group Securities Portfolio grew 28.5% annualised +3.4% +3 4% (Total = RM61.9 billion as at 31 Dec 10) (Total = RM61 9 billion as at 31 Dec 10) 34.6 +49.8% +25.0% 27.7 730.5 +18.5% 706.5 19.5 21.3 584.5 ‐26.1% ‐26 1% 6.9 6.0 Jun 10 Dec 10 Government Securities Government Securities 1H10 2H10 1H11 Private Debt Securities / Corporate Bonds Profit before tax Others 22
  24. 24. Brokerage activities contributed majority of IB income Fee based Income 1H11 Fee based Income Segmentation g1HFY11 145.4  Corporate  advisory fees FY10 196.2  8% FY09 107.7  107 7 Arrangers  FY08 198.3  fees Brokerage Miscellaneous  20% 42% FY07 97.9  fee income 2% Underwriting/ FY06 54.0  Placement  Agency /  fees Guarantee  ‐ 50.0  100.0  150.0  200.0  250.0  27% fees RM million 1% Industry Position & Market Shares : July 10 – Dec 10 Industry Rank Total Value (bil)   Deals/Issues Market Share M&A 3 RM 18.59 18 16.2% rg Source: Bloomber Equity & Rights Offerings 2 RM 1.48  4 6.8% Debt Markets ‐ Malaysia Domestic Bonds 1 RM 8.69  69 28.6% Debt Markets ‐ Malaysian Ringgit Islamic Bonds 1 RM 8.57 61 44.7% Equity Brokerage 3 7.9% of Bursa  n.a. 7.9% Trading Value   23
  25. 25. Maybank Islamic maintains strong financing growth of 23.5% annualised Income and PBT Maybank Islamic financing (23.5% annualised growth) y g( g ) Total Gross Financing = RM38.7 billion as at Dec 10 +20.6% million 101.5RM m 65.5 65 5 13.7  13 7 429.9  12.4  586.5 377.2 220.3  239.6  11.6  11.7  11 7 +9.9% +46.4% +26.5% 6.5% +16.1% 6.8  1H10 1H11 Fund based income Allowance for losses on financing 5.8  6.3  PBT and zakat 5.6  6.0  Fee based income 5.1  +18.4% 5.3  3.6  4.7  Improving key ratios for Maybank Islamic I i k i f M b kI l i 3.9  39 3.3  2.3  +81.5% 2.1  3.1  2.3  0.3  2Q10 4Q10 2Q11 0.2  0.1  Financing to Deposit Ratio 106.0% 96.6% 97.9% AITAB House  Term  Cards Cashline‐i Trade  Term  Financing Financing Financing Financing Islamic Financing to  22.7% 24.0% 26.1% Total Domestic Loans 2Q10 4Q10 2Q11 Consumer: +24% annualised Business: +22% annualised 24
  26. 26. Insurance: Etiqa maintains No. 2 Overall Position Combined Gross Premium Overall Loss Ratio Lower Than Industry  IndustryCombined Gross Premium +9.7% 51.3% (Maybank) vs 60.8% (Industry) ( ) ( ) 60.8% Regular Premium +2.7% 9.5% Fire 17.4% 25.6% 14.3% 16.1% Credit Premium +23.5% 11.1% 75.8% 78.0% Single Premium ‐53.6% 1H10 Motor 70.6% 70 6% 69.7% 70.6% 70 6% +2.5% 1H11 22.8% Total Life/Family 66.7% 31.7% MAT Motor +17.1% ‐25.6% 6.0% 5.0% 4.7% Fire +2.2% 44.2% 42.8% 45.6% 41.9% 46.4% Total General Total General +22.9% +22 9% Misc 46.0% 46 0% Sep09 Dec09 Mar10 Jun10 Sep10 0 500 1000 1500 2000 Source : Rolling 12 months (Oct09‐Sep10)Total Assets grew 8.9% YoY Etiqa maintains top position  i i i ii 8.9% 21.9 • No. 1 in Life/Family (new business)   with  20.1 market share of 20.9% • No. 1 in General with market share of  10.9% • No. 2 market share in Total Premium Dec 09 Dec 10 Total Assets (RM billion) 25
  27. 27. Executive Summary Financial Performance  Business Review Country Review Co ntr Re ieTransformation Programme Update Economics and Key Takeaways 26
  28. 28. Revenue and PBT by geography Gross Revenue (RM million)  International: International: 1H10 251.9 ,  1H11 358.7 ,  703.4 ,  30% 33% 4% 731.4 ,  6% 12% 11% 924.6 ,  1,049.3 ,  15% 16% 4,296.4  67% 4,285.3 ,  69% Malaysia Indonesia Singapore Others Profit Before Tax (RM million)  1H10 1H11 99.8 ,  304.3 ,  International: 133.0 ,  5% International: 3% 10% 27% 28% 413.9 ,  14%151.7 ,  6% 1,850.6 ,  2,148.2 ,  72% 73% 420.8 ,  17% 27
  29. 29. Singapore: PBT improved 15.7% on higher fee income and lower provision Revenue and PBT rose 8.3%% and 15.7% YoY respectively  Diversified Loan Portfolio +12.1% Y‐o‐Y +12 1% Y o Y 8.3% 15.7% 19.01 +17.8% annualised 330.4 17.53 305.0 17.03 Others 65.2 104.2 197.5 5.7 llion 170.7 4.2 4.4 Car loans Car loansSGD mil 3.3 SGD billion 3.3 3.3 239.8 226.2 Housing loans 4.2 4.1 4.3 35.0 23.6 2.0 2.2 2.0 General Commerce 1H10 1H11 3.3 33 3.6 36 3.8 38 Net Fund Based Income Provision Building &  PBT 2Q10 4Q10 2Q11 Construction Non‐interest Income Asset Quality  Loans Growth vs Industry 1.01% 0.93% 0.77% 32.0% 30.6% 0.75% 18.4% 0.63% 0.58% 13.6% 11.4% 11.9% 14.1% 0.65% 23.4% 4.97% 16.2% 11.10% 11 10% 8.6% 6.6% 0.25% 0.16% 0.10% 0.09% 0.07% 0.09% -1.38% 0.07% 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Sep-10 Nov-10 J 06 J 07 J 08 J 09 J 10 S 10 N 10 Gross NPL ratio Net NPL ratio Maybank Singapore Growth Industry Growth 28
  30. 30. Bank Internasional Indonesia Income Statement I St t t Jul 10-Dec 10 Jul 09-Dec 09 YoY Rp Billion Contribution Contribution % Change Interest income 3,476 2,993 16.1% Interest expense (1,548) (1,402) 10.4% Net interest income 1,928 1,591 21.2% Non-interest Non interest income 1,031 1 031 960 7.4% 7 4% Gross Operating income 2,959 2,551 16.0% Operating expenses (excluding prov.) (2,034) (1,733) 17.4% Operating income before provision 925 818 13.1% Provisions (668) (421) 58.7% Profit before taxation and zakat 257 397 -35.3% Note: • Based on income statement consolidated into Group accounts. 29
  31. 31. Bank Internasional IndonesiaRevenue and PBT (Rp billion) for full FY10 (as reported in BII)  Net Interest Margin  + 17% 5,773 4,934 5,634 Revenue 6.10% 5.89% PBT 5.55% + 2.093% 860 790 Without PSAK 39 790 50/55 CY08 CY09 CY10 YTDDec09 YTDDec10* * Full implementation of PSAK 50/55 (eqv to IFRS 139) CY: Calendar year: 12 months ended December Gross Loans: Composition (Rp trillion) and growth  Loan‐to‐Deposit Ratio 19.0  (+35%) 17.6  17.6 17.1  (+35%) 91.3% 14.3  18.6  89.8% 14.0  17.7  89.3% 89.0% 15.9  14.2  13.0  (+23%) 86.6% 12.2  85.4% 12.3  11.3  10.0  10 0 9.1  82.4% 82.4% 82.9% 82 9% 2.5  2.9  3.3  2.1  2.2  (+6%) (+33%) 0.4  0.5  0.5  0.5  0.4  (+1%) Dec 09 D 09 Mar 10 M 10 Jun 10 J 10 Sep 10 S 10 Dec 10 D 10 Dec-08 M ar-09 Jun-09 Sep-09 Dec-09 M ar-10 Jun-10 Sep-10 Dec-10 Corporate SMEC Consumer Syariah Subsidiaries 30
  32. 32. Bank Internasional Indonesia Branches and ATM Branches and ATM Asset Quality Q y 4.70% 893 952 Branches 806 844 787 ATM + CDM 3.50% 3.52% 740 745 743 748 3.20% 3.46% 2.79% 2.88% 2.42% 3.09% 2.79% 1.85% 1.87% 295 327 249 252 255 255 255 260 274 2.00% 1.92% 1.87% 1.97% 1.74% 1.58% Dec‐ Mar‐ Jun‐ Sep‐ Dec‐ Mar‐ Jun‐ Sep‐ Dec‐ Jun‐ Jun‐ Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 08 09 09 09 09 10 10 10 10 11 12 Gross NPL Net NPL Cost to Income Ratio Capital Adequacy: bank only (credit & market risk) ( dit & k t i k) 20.20% 66.03% 19.44% 19.73% 19.04% 65.44% 15.57% 14.71% 14.35% 13.68% 14.39% 2009 2010 Dec-08 M ar-09 Jun-09 Sep-09 Dec-09 M ar-10 Jun-10 Sep-10 Dec-10 31
  33. 33. Bank Internasional Indonesia: WOM Finance Revenue and PBT Unit Financing U it Fi i +10.07% (In Unit) 700  1,492  622  1,356  600  500  486  onRupiah Billio 400  390  Total Revenue 300  263  Profit Before Tax 200  +111.09% 126  136  100  195  195 0  93  New Used Total YTD Dec 09 YTD Dec 10 YTD Dec 09 YTD Dec 10 Asset Quality A Q li Financing Amount Financing Amount (In IDR bn) 2.96% 8,000  7,326  7,000  6,146  2.17% 6,000  1.94% 1.83% 1.85% 5,000  5 000 4,210  4 210 Gross NPL 4,000  3,157  1.31% 1.17% Net NPL 3,000  1.06% 1.09% 2,000  1,053  1,180  0.73% 1,000  0  New Used Total 4Q09 1Q10 2Q10 3Q10 4Q10 YTD Dec 09 YTD Dec 10 32
  34. 34. MCB Bank: Financial Highlights Revenue and PBT Loans and Deposits +15.9% +17.3% 431.3 39.6 367.6 34.2 34 2 +13.5% +13 5% +0.5% 26.5 253.2 254.6PKR Billion PKR Billion 23.3 Loans Revenue Deposits PBT FY09 FY10 FY09 FY10 Key Ratios FY09 FY10 ROA 4.6% 4.6% Cost to Income Ratio Cost to Income Ratio 32.4% 32 4% 33.8% 33 8% Loan‐Deposit Ratio 68.9% 59.0% NPL Ratio 9.2% 9.6% et te est a g Net Interest Margin 8 % 8.4% 7.8% 8% 33
  35. 35. Executive Summary Financial Performance  Business Review Country Review Co ntr Re ieTransformation Programme Update Economics and Key Takeaways 34
  36. 36. Progress of Transformation Programme Community Financial Services y ■ Branch transformation extending One Stop shop concept to all branches and strengthen Sales and Service Capability. ■ Improve Customer Service, TAT & Processing Time Service Time. ■ SME & Business Banking origination at all branches. ■ Segmentation in Go-To-Market for HNW and Affluent ■ Industrialization of Sales and Business Process Global Wholesale Banking ■ Launched integrated Go To Market client centric Go-To-MarketFocus on :  organisation - New Corporate Client Coverage Model Business Target Operating  deployed. Models ■ Integrated transaction banking structure: Improved Trade Finance volume and market share Clear business plans on how to  Cl b i l h t execute the journey ■ Completed key milestones for international Expansion Plans - Acquisition of Kim Eng towards becoming ASEAN leading global wholesale bank and truly regional organisation. ■ Set-up process improvements & IT enabling capabilities 35
  37. 37. Progress of Kim Eng acquisition ( g ) (Target)Current status■ Submitted regulatory approvals to Bank Negara  ■ Engagement with regulators on downstream  Malaysia and Monetary Authority of Singapore acquisition still ongoing. ■ In the process of closing upon meeting  ■ Group pro forma capital ratios remain healthy, and  Conditional Precedents. Conditional Precedents well above the minimum requirements, even if  well above the minimum requirements even if■ Finalising integration plan which will involve  fully funded via internal funds.  fitting Kim Eng into Maybank overall business  ■ The Group intends to boost its capital strength via  structure. the issuance of equity, debt or a combination of  both to fund future business growth opportunities. b th t f d f t b i th t iti Note: * Latest possible closing date in June, being 60 days from despatch of Offer Document 36
  38. 38. Progress of Transformation Programme Insurance (Etiqa) ■ Completed the General IT System consolidation and currently consolidating the Life IT system ■ Keeping track with industry growth whilst maintaining healthy portfolio mix, having better combined ratio mix compared to market. ■ .Growing and strengthening agency force Enterprise Transformation Services Enterprise Transformation Services ■ Development and finalisation of Enterprise IT Architecture ■ Embarked on IT Transformation Program (ITTP) - Deployment of regional platform with priorities set to customer-focused capabilities ■ Enhancement of Service Quality ■ Process improvements initiatives 37
  39. 39. Executive Summary Financial Performance  Business Review Country Review Country ReviewTransformation Programme Update Economics and Key Takeaways 38

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