#1a AmBank Group 9MFY2020 RESULTS INVESTOR PRESENTATION 27 February 2020 AmBank#2GCEO PRESENTATION Dato' Sulaiman Mohd Tahir 3 9MFY20 Financial snapshot 4 Outlook for 2020#3Financial Snapshot | 9MFY20 Financial snapshot 9MFY20 Financials 9MFY20 Positive income momentum driving profit growth 3,238 Income 9% • Continued strong income growth in Q3 9MFY19: 2,968 1,607 Expenses 5% • Investing for growth while maintaining positive JAWS 9MFY19: 1,531 PBP Profitability (RM' mil) 1,631 9MFY19: 1,437 14% • Robust PBP growth, CTI of 49.6% (Recovery) / Impairment 134 9MFY19: (33) >100% • Credit costs normalising 1,093 PATMI 5% • Good profit growth 9MFY19: 1,046 ROE 8.1% 9MFY19: 8.2% 10bps • ROTE at 9.4% 104.5 Assets & Gross Loans 3% Loans growth picked up in Q3, ex. auto loans +5% FY19: 101.8 Liabilities (RM' bil) Deposits 105.7 FY19: 106.9 1% • Actively managing funding and liquidity requirements FHC CET11 Capital & Liquidity 12.2% FY19: 11.9% 27 bps Well capitalised FHC LCR 163% FY19: 193% 3,000 bps Sound liquidity position 1. After deducting proposed dividends AmBank Group 9MFY2020 Results - Investor Presentation 3#4Market Outlook | Outlook for 2020 ° Malaysia Banking Sector RM GDP growth: 4.2% Inflation: 1.2% Export growth: 1.0% -2.0% USD/MYR outlook: 4.00 AmBank Group 9MFY2020 Results - Investor Presentation @!!' BANK 立 Loans growth: $% 4.3% AK Asset quality: Stable OPR: 2.25% Resilient liquidity & capital positions 4#5GCFO PRESENTATION Jamie Ling 6-19 20 20 Financial overview Guidance & Expectations#6Financial Overview | Q3FY20 Financial overview Q3FY20 Results (QoQ) Income up 3% to RM1,105mil (+RM36mil): Steady NII growth, up 6% to RM721mil, NIM further expanded to 2.02% (+11bps) Noll declined 2% mainly from General Insurance, partially offset by higher Investment Banking fee income Expenses higher at 552mil. CTI at 50.0% (Q2FY20: 49.2%) PBP grew 2% to RM552mil Lower net impairment of RM57mil, mainly due to non-repeat of large corporate provisions PATMI increased 20% to RM382mil ROE higher at 8.3% (Q2FY20: 7.0%) Asset Quality GIL at 1.71% (Q2FY20: 1.77%) LLC¹ at 105.2% (Q2FY20: 105.8%) Capital & Funding ➤ Adequate capital position, FHC CET1² 12.2% Highly liquid, FHC LCR of 163% 1. Includes regulatory reserve 2. After deducting proposed dividend AmBank Group 9MFY2020 Results - Investor Presentation 6#7Financial Overview | 9MFY20 Performance summary - P&L Q3FY20 Q2FY20 QoQ Change 9MFY20 9MFY19 YoY Change P&L (RM' mil) Total Income 1,105 1,069 Expenses PBP 3% 3,238 2,968 9% 552 526 5% 1,607 1,531 5% 552 543 2% 1,631 1,437 14% Net (Recovery) / 57 109 48% 134 (33) >100% Impairment PATMI 382 320 20% 1,093 1,046 5% Financial Q3FY20 Q2FY20 QoQ Change 9MFY20 9MFY19 YoY Change Indicators CTI 50.0% 49.2% 80bps 49.6% 51.6% NIM 2.02% 1.91% 11bps 1.93% 1.93% ROE EPS1 1. Basic Earnings Per Share 8.3% 7.0% 130bps 8.1% 8.2% 200bps 10bps 12.71 sen 10.62 sen 2.09 sen 36.35 sen 34.75 sen 1.60 sen AmBank Group 9MFY2020 Results - Investor Presentation 7#8Financial Overview | 9MFY20 Performance summary - balance sheet Q3FY20 Q2FY20 QoQ Change 9MFY20 FY19 YTD Change Balance Sheet (RM' bil) Gross Loans 104.5 102.0 GIL LLC1 3% 104.5 101.8 3% 1.71% 1.77% 6bps 1.71% 1.59% 12bps 105.2% 105.8% 60bps 105.2% 114.0% 880bps Customer Deposits 105.7 102.7 3% 105.7 106.9 1% CASA 24.8 23.4 6% 24.8 24.9 12 Capital Indicators² Q3FY20 Q2FY20 QoQ Change 9MFY20 FY19 YTD Change FHC CET1 FHC Tier 1 12.2% 12.6% 43bps 12.2% 11.9% 27bps 12.2% 12.6% 43bps 12.2% 11.9% 27bps FHC Total Capital 15.6% 16.1% 42bps 15.6% 15.4% 20bps 1. Includes regulatory reserves 2. After deducting proposed dividends AmBank Group 9MFY2020 Results - Investor Presentation 80#9Income | Stepping up revenue growth Business Segments Q3FY20 Q2FY20 QoQ Change 9MFY20 9MFY19 YoY Change (RM' mil) Wholesale Banking 317 334 5% 953 794 20% Investment Banking 85 69 24% 224 180 24% Retail Banking 386 369 5% 1,112 1,109 Business Banking 94 90 4% 271 236 14% Group Funding & Others 87 46 88% 183 176 4% Total Income - Banking 968 908 7% 2,743 2,496 10% General Insurance 133 171 22% 491 461 7% 137 161 15% 495 472 5% Life Insurance 4 (10) >100% 4 11 64% Total Income 1,105 1,069 3% 3,238 2,968 9% RM' mil ▲ 5% YoY ▲ 2% YoY 9MFY18: 2,908 9MFY19: 2,968 ▲ 9% YoY 9MFY20: 3,238 1,105 1,071 1,065 1,069 1,014 1,007 982 967 959 142 947 955 222 421 31² 383 428 395 389 372 359 369 356 342 286 326 721 613 611 617 643 642 648 661 669 680 629 Q1FY18 Q2FY18 ■Net Interest Income Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Non-interest Income 1. Investment share revaluation AmBank Group 9MFY2020 Results - Investor Presentation 2. Gain on disposal of foreclosed properties 6#10PBP & PATMI | Strong PBP growth, improving operating leverage Business Segments (RM' mil) Q3FY20 Q2FY20 QoQ Change 9MFY20 9MFY19 YoY Change Wholesale Banking 241 260 7% 733 586 25% Investment Banking 37 24 55% 86 50 70% Retail Banking 171 149 14% 472 489 3% Business Banking 57 52 9% 160 144 11% Group Funding & Others (4) (18) 79% (59) (47) 25% PBP - Banking 501 468 7% 1,392 1,223 14% General Insurance 47 85 45% 235 203 16% 51 75 32% 239 214 12% Life Insurance PBP 4 (10) >100% 4 11 64% 552 543 2% 1,631 1,437 14% 10.7% 8.1% 8.1% RM' mil 429 8.3% 8.2% 8.1% 6.3% 5.3% 404 383 328 332 342 Q1FY18 AmBank Group PBP Q2FY18 PATMI 219 Q3FY18 ROE 9MFY2020 Results - Investor Presentation 253 Q4FY18 501 502 434 348 348 Q1FY19 1. Retail debt sale gain 460 8.8% 8.3% 7.0% 536 543 552 391 382 350 355 2171 320 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 10#11Group P&L | Net profit higher from stronger income growth and improved cost efficiency YoY Growth 6% 15% 9% 5% 14% >100% 2% 9% 5% 14% 5% 152 1,046 21% 119 76 76 31 167 Effective 1,093 12 12 26% NIM: 1.93% Noll%: 36.1% CTI: 49.6% GIL: 1.71% Tax Rate: 20.6% 74% 79% RM' mil Net Interest Non-Interest Income Income Total Income Expenses PBP (Recovery) / Impairment PBT Tax & Zakat PAT MI PATMI 9MFY20 2,070 1,168 3,238 1,607 1,631 134 1,497 311 1,186 93 1,093 9MFY19 1,952 1,016 2,968 1,531 1,437 (33) 1,470 342 1,127 82 1,046 Positive growth in 9MFY20 Contraction in 9MFY20 Conventional PATMI Islamic PATZ AmBank Group 9MFY2020 Results - Investor Presentation 11#12NIM | NIM expanded QoQ, stable YoY Net Interest Margin (NIM) Movement Assets 191 2.0 1.1 0.7 0.3 6.7 0.9 11.4 Funding Deposits 3.3 1.3 ! YTD NIM 9MFY19: 1.93% 9MFY18: 1.93% NIM movement: QoQ: ▲ 11bps YoY : ≈ 202 Q2FY20 Wholesale Banking Investment Banking Retail Banking Business Banking Others Asset volume Interbank / & mix Group Deposits rates Deposits Q3FY20 mix Funding Positive growth in Q3FY20 Contraction in Q3FY20 AmBank Group 9MFY2020 Results - Investor Presentation 12#13Noll | Sustaining strong trading gains and higher IB fee and General Insurance income YoY Growth 100% 5% >100% 35% 3% 11% 12% 9% 64% 28% 15% Noll 32 Q1FY20: 395 Q2FY20: 389 !Q3FY20: 383 51 7 7 7 2 14 1,016 22 6 120 1,168 RM' mil Foreclosed Properties Corporate Banking Group Treasury Investment Banking & Wealth Mgmt Other Retail Business Banking General Insurance Life Insurance & Markets Fund Mgmt Group Funding & Others Noll 9MFY20 120 187 195 67 120 65 392 4 19 1,168 9MFY19 22 126 67 144 69 134 58 360 11 26 1,016 Positive growth in 9MFY20 Contraction in 9MFY20 9MFY19 Noll 9MFY20 Noll AmBank Group 9MFY2020 Results - Investor Presentation 13#14Expenses | Cost well managed while continuing to invest Business Segments Q3FY20 Q2FY20 QoQ Change 9MFY20 9MFY19 YoY Change (RM' mil) Wholesale Banking 76 74 3% 220 208 6% Investment Banking 48 45 7% 138 130 7% Retail Banking 215 220 2% 640 620 3% Business Banking 37 38 3% 110 93 19% Group Funding & Others 90 63 41% 242 222 8% Expenses - Banking 466 440 6% 1,350 1,273 6% Insurance 86 86 ≈ 257 258 1% (General, life, takaful) Expenses 552 526 5% 1,607 1,531 5% Expense Growth Driver RM' mil 1,531 72 9 88 5 1,607 9MFY19 Staff Cost Compliance & MFRS 16 Impact Governance Others 9MFY20 Positive P&L impact in 9MFY20 Negative P&L impact in 9MFY20 AmBank Group 9MFY2020 Results - Investor Presentation Expense and CTI Trend 68.0% 56.3% 58.2% 60.1% 62.8% 728 54.1% 50.6% 50.2% 49.7% 49.2% 50.0% RM' mil 553 1462 563 $20¹ 191 577 81 600 552 513 506 513 529 526 Q1FY18 Q2FY18 Q3 FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 1. Retail Operational Loss 2. Mutual Separation Scheme 14#15Asset Quality | Credit costs remained low whilst normalising Net Impairment (RM' mil) (33.4) 58.6 113.8 Gross Impaired Loans, GIL and LLC Ratios Q1FY20: (32.5)¦ Q2FY20: 109.1 176.4 Q3FY20: 56.9 Retail Business Wholesale GIL Ratio 100.5% Loan Loss Coverage 2 114.0% 116.8% 105.2% 81.2% 79.7% 16.9 133.5 1.94% 1.86% 1.70% 1.71% 1.62% RM' mil 1.59% 1,701 1,689 1,638 1,621 1,623 1,791 296 40 209 217 152 925 1,000 600 749 676 723 9MFY19 165.0 ECL Stage 1 & 21 ECL Stage 3 Individual Allowance Recoveries Others 9MFY20 894 776 649 681 728 747 FY16 FY17 FY18 FY19 9MFY19 9MFY20 Positive P&L impact in 9MFY20 Negative P&L impact in 9MFY20 1. Includes macro provisions 2. Includes regulatory reserve Impairment Balance (Balance Sheet) Non-performing / impaired assets RM' mil 251 208 187 181 200 215 Performing assets 898 711 Credit Cost (%) and New Impaired Loans Formation (RM' mil) AmBank Group FY16 FY17 FY18 FY19 9MFY20 9MFY19 441 622 Total Provisions FY18: FY19: 1,301 19MFY20: 1,143) 943 Credit cost (%) -0.18% -0.19% 0.00% -0.30% 0.16%4 -0.04%4 485 Stage 2 Credit cost (excl. recoveries) (%) New Impaired Loans Formation (RM' mil) 0.46% 0.56% 0.47% 0.53% 0.53%4 0.58%4 1,418 1,330 1,162 1,123 1,257 1,142 94 276 226 Stage 1 4. Annualised ECL Stage 3 / CP-Defaulted ECL Stage 1 & 2/ CP Non defaulted³ Model Risk Adjustment 9MFY20 Individual Allowance FY18 ■FY19 3. Includes macro provisions AmBank Group 9MFY2020 Results - Investor Presentation 15#16Asset Quality | Watchful on credit quality Impaired Loans by Sector Sector Dec'19 Composition YTD Growth QoQ Growth RM' mil Real Estate 316 18% 37% 4% Residential Properties 473 26% 26% 5% Loans to Oil & Gas (O&G) Sector by Internal Risk Grades Marginal Impaired Substandard 2% 1% Satisfactory 9MFY20 RM' bil Moderate FY19 1.6 Transport Vehicles 163 9% 16% 15% 18% Manufacturing 246 14% 50% 18% FY18 Trading and hospitality 128 7% >100% 31% Mining and quarrying 51 3% 35% 6% Construction 122 7% >100% Approx. 2% of Total Gross Loans Strong Very Strong 79% 28% Others 291 16% 31% A 4% Total 1,791 100% 11% 1% Loans to Real Estate Sector by Internal Risk Grades Marginal Impaired Substandard 4% 4% 9MFY20 FY19 Strong Approx. 7% of Total Gross Loans Very Strong 45% FY18 Satisfactory Moderate 47% AmBank Group 9MFY2020 Results - Investor Presentation RM' bil 7.5 8.3 Loans to Construction Sector by Internal Risk Grades Marginal Impaired Substandard 4% 4% 9MFY20 FY19 RM' bil 1.8 8.3 Satisfactory~ Moderate 35% FY18 3.7 Approx. 4% of Total Gross Loans Strong Very Strong 57% 2.0 4.3 4.4 16#17Loans | Loans growth boosted by higher disbursements in Q3 Gross Loans Movement (RM' bil) Breakdown by rate sensitivity: Fixed rate 24% Variable rate -76% Breakdown by concept: Islamic -29% Breakdown by customers type: Retail -56% ROA¹: ROTA¹: 1.02% 1.03% Conventional - 71% Non-retail 44% Ex. Auto: YTD Growth 6% 3% 3% 5% 11% 7% 25% 22% 9% ▲ 3% ▲ 5% Composition 15% 17% 2% 34% 13% 3% 3% 3% 10% 100% 101.8 0.9 0.5 0.0 1.7 0.9 0.5 0.7 0.2 1.7 Gross loans trend YTD Growth Industry 9MFY20 104.5 3% 3%2 FY19 101.8 ▲ 6% 5%³ FY18 96.3 ▲ 6% 4%3 104.5 FY19 MidCorp Large Corp & Others Investment Banking Mortgage Auto Finance Cards Retail SME Others Business Banking 9MFY20 Wholesale 1% Positive growth in 9MFY20 Contraction in 9MFY20 AmBank Group 9MFY2020 Results - Investor Presentation Retail 2% 1. Annualised 2. Based on BNM data from Mar'19 to Dec'19 3. Based on BNM data and in accordance with AMMB's financial period 17#18Deposits | Driving CASA growth Deposits (RM' bil) CASA (RM' bil) and CASA Composition (%) YTD Growth Industry ≈2 24.8 6%1 24.9 22% 3%2 20.4 3% 6%2 Retail CASA Non-Retail CASA CASA Composition (%) Customer deposits trend YTD Growth Industry 9MFY20 FY19 FY18 105.7 1% 2%¹ CASA trend 9MFY20 106.9 12% 5%² FY19 95.8 2% 5%² FY18 Retail FD Retail CASA Non-Retail FD AmBank Group Deposits Market Share (%) Non-Retail CASA 23.4% 23.3% 21.8% 22.5% 22.8% 5.5% 5.5% 5.7% 5.5% 21.1% 20.7% 5.3% 5.4%¹ 5.3% 24.9 24.8 106.8 106.9 105.7 23.1 23.4 100.8 102.8 98.6 102.7 22.0 22.1 10.4 13.4 12.5 20.8 9.5 10.6 11.5 11.6 12.5 13.4 11.5 11.6 44.7 10.6 10.4 36.6 35.9 42.0 9.5 41.0 44.1 47.0 11.4 11.3 11.7 11.4 11.6 11.8 12.2 11.3 11.4 11.7 11.4 11.6 11.8 12.2 41.3 42.9 40.0 40.1 38.6 35.3 34.0 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Retail Deposit Mix 53.3% 53.8% 48.4% 48.2% 48.9% 45.8% 43.7% Retail CASA 54.2% Mix 51.6% 52.8% 46.0% 50.1% 50.3% 49.3% Based on BNM data from Mar'19 to Dec'19 Based on BNM data and in accordance with AMMB's financial period 9MFY2020 Results - Investor Presentation 1. 2. AmBank Group 18#19Capital | Adequate capital levels RWA/Total Assets RM' bil 71.2% Total Assets 72.2% RWA/Total Assets Peers 72.2% 2 65.0%² 66.9% Capital Adequacy Ratios³ CET 1 Tier 1 Total CAR Aggregated basis4. FHC 16.1% 16.3% 15.4% 15.6% 59.6% 59.5% 59.3% 58.4% 58.4% 12.3% 12.5% 13.6% 5 158.8 157.9 11.3% 11.6% 11.1% 11.9%5 12.2% 133.8 134.8 137.9 FY16 FY17 FY18 FY19 1. Based on an average of our seven peer domestic banks as at 30 September 2019 2. FHC RWA/Total Assets Financial Holding Company CET1 12.58% 0.08% 9MFY20 FY16 FY17 3. After deducting proposed dividends 5. FHC CET 1 and Tier 1 ratios are the same 0.02% 12.15% 0.35% 0.02% 0.02% FY18 FY19 4. Aggregated banking entities 9MFY20 0.36% 12.51% Q2FY20 Transfer of Reg reserve to RE Credit RWA Market RWA Operational & other RWA Others Q3FY20 Q3FY20 Proforma Profit Q3 FY20 Proforma FHC CET 1 Positive growth in Q3FY20 Contraction in Q3FY20 6. Q3FY20 profit has not been audited, therefore has not been recognised for regulatory purpose AmBank Group 9MFY2020 Results - Investor Presentation 19#20Guidance | Guidance & Expectations Reported ROE 9MFY20 Actual 8.1% Revised FY20 Guidance ~8.0% -8.5% $1,500 CTI 49.6% ≤ 50.0% 31 Dividend Payout N/A 45% - 50% Financial calendar FHC CET 1 AmBank Group 9MFY2020 Results - Investor Presentation 12.2% 11.5% ± 1% 20 20#21Thank You#22Group Performance#239MFY2020 Results | Yearly performance PATMI (RM' mil) & ROE (%) PATMI Total Income (RM' mil) and Non-interest Income (%) Total Income PATMI: ROE: ROE (%) CAGR FY16-FY19: YoY Growth 4.9% CAGR FY16-FY19: Total Income Non-interest Income % A 4.5% YoY Growth ▼ 0.1% CAGR FY16-FY19: YoY Growth 39% 38% 36% 34% 34% 8.8% 8.5% 8.8% 8.2% 8.1% 7.0% 2.0% ▲ 9.1% 36% 1,505 1,302 1,325 3,696 3,766 3,979 3,922 1,132 1,046 1,093 2,968 3,238 FY16 FY17 FY18 FY19 9MFY19 9MFY20 Cost to Income Ratio and Expenses Growth (%) CTI CTI: Expenses Growth CAGR FY16-FY19: YoY Growth Expenses: 1.5% CAGR FY16-FY19: 2.0% 0.7% 58.8% 60.8% 57.4% 54.3% 51.6% 49.6% FY16 FY17 FY18 FY19 9MFY19 9MFY20 ROA (%) and EPS (Basic) 1 ROA: EPS ROA CAGR FY16-FY19: YoY Growth 1.09% 1.08% 1.05% 0.91% EPS: 22 CAGR FY16-FY19: YoY Growth A 4.9% 4.6% 1.02% 1.02% 50.0 12.0% 0.8% -0.6% 43.3 44.1 5.0% 37.6 34.8 36.4 -9.5% -12.0% FY16 FY17 FY18 FY19 9MFY19 9MFY20 FY16 FY17 FY18 FY19 9MFY19 9MFY20 Source: BNM, financial statements AmBank Group 9MFY2020 Results - Investor Presentation 1. Annualised 23#24NIM & Gross Loans | Net interest margin and gross loans NIM Trend Gross Yield COF 5.08% 5.07% NIM 5.03% Net Spread 1 4.92% 4.93% 4.83% 4.96% 4.84% 4.94% 5.02% 4.87% 3.39% 3.47% 3.46% 3.45% 3.37% 3.45% 3.22% 3.27% 3.26% 3.11% 3.23% 2.02% 2.02% 1.91% 1.88% 1.87% 1.91% 1.98% 2.00% 1.89% 1.93% 1.78% 1.69% 1.73% 1.69% 1.60% 1.57% 1.47% 1.56% 1.61% 1.68% 1.58% 1.64% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 FY17 FY18 FY19 9MFY20 1. Net spread equals to Gross Yield less COF Quarterly Gross Loans (RM 'bil) 104.5 101.8 102.0 100.8 100.4 99.9 98.4 QoQ Growth: YTD Growth: 3% 3% 101.8 96.3 91.0 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 FY17 FY18 FY19 AmBank Group 9MFY2020 Results - Investor Presentation 24#25Noll & PATMI Non-interest income and PATMI mix Non-interest Income by Lines of Business (YoY) 28% Other 1% Corporate Banking 10% 19% PATMI by Lines of Business (YoY) 23% ▲ 79% ▲ 6% 1 Group Funding Insurance & Others 9% Wholesale Banking 26% Group Treasury & Market 16% >100% Business Banking 7% 59% 43% Investment Banking 7% 7% Insurance 34% Insurance & Others 35% Non-interest 4% income RM1,168 mil Investment Banking 17% Retail Banking 16% Business Banking 6% ▲ 35% Investment Banking 10% 63% 8% ▲ 12% Other Retail 5% Fund Management 7% 9% Cards 5% Wealth Management 6% Business Banking 6% 13% ▲ 12% 3% AmBank Group 9MFY2020 Results - Investor Presentation ▲ 10% 1. After deducting share of minority interests -2% Reported RM1,093mil Wholesale Banking 56% Retail Banking 23% 2% 13% 25#26Asset Quality | Impairments Net Impairment / (Writebacks) and GIL Ratio Total impairments by category (RM' mil) ECL Stage 1 & 2 / CP - Non defaulted¹ ECL Stage 3/CP - Defaulted Individual Provisions Recoveries Other Provisions² Total net impairments / (writeback) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 QoQ Change 9MFY19 9MFY20 YoY Change (71) 50 (14) (128) (38) (29) 24% (30) (195) >100% 136 144 138 131 163 182 132 28% 418 477 14% 46 34 (17) (17) 9 123 44 64% 63 177 >100% (117) (134) (215) (371) (93) (120) (77) 36% (466) (290) 38% 13 (24) (7) 1 15 (37) (13) 64% (18) (35) 93% 7 11 (51) (270) (32) 109 57 48% (33) 134 >100% Total impairments by divisions (RM' mil) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 QoQ Change 9MFY19 9MFY20 YoY Change Wholesale Banking (39) (12) (142) (32) (106) 48 1 98% (193) (58) 70% Investment Banking 1 (1) (1) (0) 1 >100% (7) 26% Retail Banking 42 19 51 (251) 59 37 49 34% 112 145 30% Business Banking 2 1 12 16 14 27 21 21% 15 62 >100% Group Funding & Others 5 3 32 (3) (1) (1) (4) >100% 40 (6) >100% General Insurance 2 (1) (2) 0 2 (2) (2) 15% (2) (2) 22% Total net impairment / (writeback) 7 11 (51) (270) (32) 109 57 48% (33) 134 >100% GIL Ratio (%) Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 QoQ Change YoY Change Wholesale Banking 2.54% 2.27% 2.18% 2.01% 1.90% 2.06% 1.77% 29bps 41bps Investment Banking 0.12% 0.12% 0.13% 0.10% 0.11% 0.11% 0.11% 2bps Retail Banking Business Banking Group Industry 1.26% 1.32% 1.32% 1.28% 1.44% 1.51% 1.54% 3bps 22bps 2.41% 2.53% 1.68% 2.18% 2.39% 2.52% 2.73% 21bps 105bps 1.77% 1.72% 1.62% 1.59% 1.66% 1.77% 1.71% 6bps 9bps 1.59% 1.53% 1.45% 1.48% 1.57% 1.61% 1.51% 10bps 6bps 1. Includes macro provision 2. Includes foreclosed property, trade & sundry debtors and provision for contingencies AmBank Group 9MFY2020 Results - Investor Presentation 26#27Loans | Loans by sector vs. industry AmBank Group (RM' bil) Loans Composition 3% 2% 13% 1% 4% 7% 3% 5% 7% 2% 53% YTD Growth 8% ▲ 17% ▲ 19% ▲ 33% 3% ▲ 8% ▲ 7% 9% ▲ 26% ≈2 Loans Composition YTD Growth Dec-19 55.9 100% 77% ▲ 3% 104.5 4.3 3.0 2.0 14.0 0.6 43 7.3 4.9 2.9 2.0 0.1 7.5 Agriculture Mining & Quarrying Manufacturing Electricity, Gas & Water Construction Wholesale, Retail, Hotels & Restaurant Finance, Transport, Storage & Com Insurance, Real Estate Education & Health Household Others Total Loans & Biz Act 36.0 10.3 15.8 121.6 91.2 131.2 39.6 40.3 117.4 115.7 22.0 Dec-19 2% 1% 7% 1% 5% 7% 2% 7% 7% 1,030.4 1,771.6 26 2% 58% 1% 100% ▲3% ▲ 25% 6% ▲ 27% 1% ▲ 4% 1% ▲ 2% ▲ 1% 2% 4% 10% ▲ 3% Industry (RM' bil) Source: BNM, financial statements AmBank Group 9MFY2020 Results - Investor Presentation 27#28Funding | Funding profile Funding Composition vs. Peers FY16 FY17 FY18 FY19 9MFY20 Peers¹ Equity & debt capital 16% 16% 16% 15% 15% 16% Customer deposits 73% 74% 74% 74% 73% 74% Term funding & loans sold 10% 9% 7% 6% 5% 5% with recourse Deposits from banks & Fls 1% 1% 3% 5% 7% 5% 1. Based on an average of seven peer domestic banks as at 30 September 2019 LDR / LTAF² LDR LTAF² Funding Maturity Profiles Term Funding and Debt Capital 14% 9MFY20: RM6.1 bil 86% ■ < 1 yr ■> 1 yr Deposits from Customers, Banks & Fls FY16 FY17 FY18 FY19 9MFY20 2% 1% 97.3% 96.9% 100.5% 95.3% 98.9% 83.0% 85.4% 2. Loan-to-Available-Funds ratio (LTAF) refers to gross loans (excluding financing funded by Islamic Investment Accounts and loans sold to Cagamas) divided by deposits plus borrowings and sub debt AmBank Group 9MFY2020 Results - Investor Presentation 8% 9MFY20: RM116.7 bil 89% ■ < 6 mth ■ 6-12 mth ■ 1-3 yr ■ 3-5 yr 28#29Divisional Performance#30Wholesale Banking | Wholesale Banking 6% Total Income (YoY Movement) and Total Assets by Line of Business >100% Total Income RM953 mil Transaction Banking 23% Transaction Banking 9% Wholesale Banking Coverage 37% Wholesale Banking Coverage Group Treasury & Markets 36% Total Assets RM77.0b Group Treasury & Markets 54% AmBank Group 9MFY2020 Results - Investor Presentation QoQ PAT (RM' mil) QoQ Growth: 14% YoY Growth: 2% 9MFY19: 599 9MFY20: 611 259 182 173 244 184 188 165 uhilu Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Corporate Banking Loan Disbursement and Repayment 41% 5% Disbursement Repayment Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 30#31Wholesale Banking | Wholesale Banking Income Statement YoY Growth 11% 43% 20% 6% ▲ 25% 70% 1% 2% RM' mil Net Interest Income Non-Interest Income Total Income Expenses PBP Impairment PBT Tax PAT 9MFY20 645 308 953 220 733 (58) 790 179 611 9MFY19 579 9MFY20 PAT 9MFY19 PAT 215 Positive growth in 9MFY20 794 208 586 (193) 779 180 599 Contraction in 9MFY20 Balance Sheet (RM' mil/%) Key Ratios 9MFY20 FY19 YTD Change 9MFY20 FY19 YTD Change Gross Loans/Financing 33,927 33,519 1% GIL Ratio 1.77% 2.01% 24bps Gross Impaired Loans 599 675 11% CTI 23.1% 26.3% >100bps Customer Deposits 52,766 49,002 8% Loan Loss Coverage 38.4% 62.3% >100bps CASA 10,373 11,411 9% ROA¹ 1.07% 1.09% 2bps AmBank Group 9MFY2020 Results - Investor Presentation 1. Annualised 31#32Investment Banking | Investment Banking League Table DCM (Overall MYR Bonds) Islamic Sukuk Market Share¹ As At 31 Dec 2019 (%) Rank² 10.9% Market Share of Value and Volume Traded on Bursa (KLSE)¹ Trading Value -Trading Volume 3.9% 3.8% 3 3.6% 3.6% 3.4% 5.7% 10.7% 4 5.5% 5.0% 4.9% 4.8% Unit Trust 8.2% 5 ▶ Stockbroking 4.8% 7 ▶ M&A Fund Raising 1. Calendar Year data 2. Comparing rank movement with 30 September 2019 10.6% 4 2015 2016 2017 2018 2019 4.7% 3▼ Fund Management - AUM (RM' bil) AmBank Group 9MFY2020 Results - Investor Presentation 44.1 40.5 37.1 36.2 35.7 FY16 FY17 FY18 FY19 9MFY20 32 22#33Investment Banking | Investment Banking Income Statement YoY Growth 19% 35% ▲ 24% 7% ▲ 70% 26% 65% 93% 59% RM' mil Net Interest Income Non-Interest Income Total Income Expenses PBP Impairment PBT Tax PAT 9MFY20 29 195 224 138 86 (7) 93 20 20 74 9MFY19 9MFY20 PAT 9MFY19 PAT 37 144 180 130 Positive growth in 9MFY20 50 (6) 56 10 46 Contraction in 9MFY20 Balance Sheet (RM' mil/%) Key Ratios 9MFY20 FY19 9MFY20 FY19 YTD Change YTD Change 1,633 850 153 Gross Loans/Financing Gross Impaired Loans 2 2 3% CTI Customer Deposits CASA 1,592 3% GIL Ratio 0.11% 0.10% 1bps 61.7% 71.7% >100bps 744 14% Loan Loss Coverage 148.4% 100.2% >100bps 123 25% ROA¹ 4.26% 2.23% >100bps Average AUM 52,761 47,311 12% AmBank Group 9MFY2020 Results - Investor Presentation 1. Annualised 33#34Retail Banking | Retail Banking 5% Total Income (YoY Movement) and Loans by Line of Business Total Income RM1,112 mil 3% Wealth 6% Deposits 37% 22% 35% PAT Trend (RM' mil) QoQ Growth: 8% YoY Growth: 13% 9MFY19: 287 Retail SME 8% 16% Qthers 3% Auto 13% Others 4% Auto 23% Retail SME 6% Total loans RM58.2 bil Cards 5% Mortgage 62% Personal Financing 2% AmBank Group 9MFY2020 Results - Investor Presentation 7% Mortgage 15% Cards 16% 11% 9% 75 114 98 281 9MFY20: 249 92 86 71 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 34#35Retail Banking | Retail Banking Wealth Sales (RM' mil) 9MFY19: 2,243 866 702 675 QoQ Growth: 1% YoY Growth: 9% 9MFY20: 2,453 822 831 800 677 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Credit Cards New cards issued 80 660 40 40 20 20 New cards issued ('000) Cards in circulation ('000) 600 400 200 Cards in circulation Merchant Volume Merchant volume (RM'mil) Merchants in force ('000) QoQ Growth: QoQ Growth: 5% 1% YoY Growth: 6% YoY Growth: 19% 53 51 44 38 37 36 36 2,688 9MFY20: 8,081 2,764 9MFY20 7,620 2,629 2,625 2,553 2,594 2,473 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Mortgage and Auto Finance Quarterly Disbursement ■Mortgage Auto Finance Mortgage QoQ Growth: 10% Auto Finance QoQ Growth: 21% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 AmBank Group 9MFY2020 Results - Investor Presentation 35#36Retail Banking | Retail Banking Income Statement YoY Growth 2% 8% 3% 3% 30% 13% 13% 13% RM' mil Net Interest Income Non-Interest Income Total Income Expenses PBP Impairment PBT Tax PAT 9MFY20 926 186 1,112 640 472 145 327 78 249 9MFY19 9MFY20 PAT 906 203 1,109 620 489 112 377 90 287 9MFY19 PAT Positive growth in 9MFY20 Contraction in 9MFY20 Balance Sheet (RM' mil/%) Key Ratios 46,173 Gross Loans/Financing Gross Impaired Loans 894 728 23% CTI Customer Deposits 9MFY20 FY19 YTD Change 58,235 56,865 2% GIL Ratio 9MFY20 FY19 1.54% 1.28% YTD Change 26bps 57.6% 58.0% 40bps 51,520 10% Loan Loss Coverage 94.1% 112.4% >100bps CASA 12,215 11,448 7% ROA¹ 0.64% 1.01% 37bps Average AUM 1,409 1,379 2% AmBank Group 9MFY2020 Results - Investor Presentation 1. Annualised 36#37Retail Banking | Distribution Channels Perlis Kedah ❤ Kelantan Terengganu Pulau Pinang Perak Pahang Selangor. Kuala Lumpur Putrajaya Branches ATM Regional Offices Perlis 1 3 Kedah 6 24 Sabah Pulau Pinang 14 50 Labuan Perak 18 45 Selangor 36 212 213 Kuala Lumpur 23 97 3 Putrajaya 1 3 Negeri Sembilan 7 39 Melaka 6 32 1 Johor 21 21 82 1 Pahang 8 28 1 Terengganu 2 14 Kelantan 2 17 1,001-1,500 persons per km² Sabah 9 39 1 > 1,501 persons per km² Labuan 1 3 Sarawak 15 56 1 170 744 14 Sarawak Negeri Sembilan Melaka Johor Population Density < 100 persons per km² 101-500 persons per km² 501-1,000 persons per km² Other Customer Touch Points AmBank Islamic branches 2 Weekend banking branches ATMs @ 7- Eleven Electronic banking centres Internet & mobile banking AmGeneral AmMetlife AmInvestment Bank AmCard Services MBC 2 ATM $ 255 178 AmOnline 29 branches 4 counters 15 branches 6 retail broking 15 40 agencies 7 branches AmBank Group 1. Data shown as at 31 December 2019 2. MBC Merchant Business Centres 9MFY2020 Results - Investor Presentation 37#38Business Banking | Business Banking Gross Loans (RM' mil) Non-trade Trade QoQ PAT (RM' mil) QoQ Growth: 42% YoY Growth: 23% YTD Growth: 9% 10,850 10,425 9,964 10,069 9,055 8,583 2,585 2,527 9MFY19: 99 9MFY20: 76 7,994 2,441 2,462 2,222 2,219 2,060 7,523 7,607 7,898 8,264 5,934 6,364 6,833 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Customer Deposits (RM' mil) CASA ■FD YTD Growth: 8% 36 6,193 6,290 5,827 5,907 33 5,379 5,096 4,524 3,907 4,017 3,776 3,808 3,498 3,292 3,085 1,439 1,804 1,881 2,052 2,099 2,176 2,382 29 29 27 19 27 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 AmBank Group 9MFY2020 Results - Investor Presentation 38#39Business Banking | Business Banking Income Statement YoY Growth 15% 12% 14% 19% 11% >100% 24% 26% 23% RM' mil Net Interest Income Non-Interest Income Total Income Expenses PBP Impairment PBT Tax PAT 9MFY20 206 65 271 110 160 62 98 22 76 9MFY19 179 9MFY20 PAT 9MFY19 PAT 58 236 93 144 15 129 30 99 Positive growth in 9MFY20 Contraction in 9MFY20 Balance Sheet (RM' mil/%) Key Ratios 6,290 2,382 9MFY20 FY19 YTD Change Gross Loans/Financing 10,850 9,964 9% GIL Ratio Gross Impaired Loans 296 217 36% CTI Customer Deposits CASA 9MFY20 FY19 YTD Change 2.73% 2.18% 55bps 40.8% 39.4% >100bps 5,827 8% Loan Loss Coverage 46.0% 41.7% >100bps 2,052 16% ROA¹ 0.99% 1.47% 48bps 1. Annualised AmBank Group 9MFY2020 Results - Investor Presentation 39#40Islamic Banking | Islamic Banking Income Statement YoY Growth ▲ 7% 2% 12% 36% 30% 26% 31% RM' mil Total Income Expenses PBP Impairment PBT Tax & Zakat PATZ 9MFY20 664 227 436 71 365 81 285 9MFY19 623 231 391 110 281 64 217 9MFY20 PATZ 9MFY19 PATZ Positive growth in 9MFY20 Contraction in 9MFY20 Balance Sheet (RM' mil/%) Key Ratios 9MFY20 FY19 YTD Change 9MFY20 FY19 30,282 Gross Financing Gross Impaired Financing 586 573 2% CTI Customer Deposits 30,836 31,140 1% CASA Deposits 29,330 3% GIF Ratio 1.93% 1.95% YTD Change 2bps 34.3% 38.0% >100bps Financing Loss Coverage 102.9% 103.2% 30bps 8,458 8,969 6% ROA¹ 0.93% 0.80% 16bps AmBank Group 9MFY2020 Results - Investor Presentation 1. Annualised 40 40#41General Insurance | General Insurance Loss Ratio and Combined Ratio ■Loss Ratio Combined Ratio 96% 97% YoY PBT and PAT (RM' mil) 92% 92% 92% 89% PBT PAT 64% 63% 57% 58% 55% 59% FY16 FY17 FY18 FY19 9MFY19 9MFY20 2 194 192 Gross Premium Mix and Growth (RM' mil) Motor Non-Motor 1 YoY GWP Growth: 5% 5% YoY Motor Growth: YoY Non-motor Growth: ▲ 6% 1,567 1,580 1,474 1,527 18% 19% 21% 21% 1,116 1,173 180 21% 170 21% 82% 81% 79% 79% 79% 79% 282 246 242 204 YoY PBT Growth: YoY PAT Growth: ▲ 16% 15% 237 198 190 165 FY16 FY17 FY18 FY19 9MFY19 9MFY20 FY16 1. Includes motor PA 2. FY17 FY18 FY19 Includes write-back of prior year tax provisions 9MFY19 9MFY20 AmBank Group 9MFY2020 Results - Investor Presentation 41#42Insurance & Others | Insurance and Group Funding & Others Income Statement - Insurance (General, Life & Takaful) YoY Growth ▲ 5% 1% ▲ 12% 19% 12% 20% ▲ 10% RM'mil Total Income Expenses PBP Impairment PBT Tax PAT 9MFY20 496 257 239 (2) 241 47 194 9MFY19 472 258 214 (2) 216 39 177 Income Statement - Group Funding & Others YoY Growth 4% 8% 25% >100% 39% >100% 79% 14% ▲ 32% RM'mil Total Income Expenses PBP Impairment PBT Tax PAT MI PATMI 9MFY20 183 241 (59) (6) (53) (36) (17) 93 (110) 9MFY19 176 222 (47) 40 (87) (7) (80) 82 (162) 9MFY20 PAT 9MFY19 PAT Positive growth in 9MFY20 Contraction in 9MFY20 AmBank Group 9MFY2020 Results - Investor Presentation 42#43Corporate Structure | Shareholding structure ANZ 23.8%1 Retail Banking AmCorp 13.0% PNB 9.0%² EPF 7.9% Others 46.3% ap Wholesale Banking 100% AmBank (M) Berhad 100% MBF Cards (M'sia) Sdn Bhd 33.33% Bonuskad Loyalty Sdn Bhd 100% AmBank Islamic Berhad 100% AmInvestment Bank Berhad 100% AmInvestment Group Berhad Foreign shareholding excluding ANZ AMMB Holdings Berhad Islamic Banking FY16 FY17 FY18 26% 26% 23% 1.ANZ: ANZ Funds Pty Ltd, a wholly owned subsidiary of Australia and New Zealand Banking Group Limited 2.Based on amalgamation of shares held by funds managed by PNB As at 31 December 2019 General Insurance Life Assurance & Takaful 100% AMAB Holdings Sdn Bhd 51% AmGeneral Holdings Berhad 49% CIAG Insurance Australia Group 100% AmGeneral Insurance Berhad ~50% AmMetLife Insurance Berhad³ ~50% MetLife ~50% AmMetLife Takaful Berhad³ ~50% MetLife FY19 26% 9MFY20 26% 3.MetLife owns 50% plus one share in AmMetLife Insurance Berhad, with the remaining shares held by AmBank Group, and AmBank Group owns 50% plus one share in AmMetLife Takaful Berhad, with the remaining shares owned by MetLife AmBank Group 9MFY2020 Results - Investor Presentation 43#44Ratings & Target Price | Credit ratings, target price and recommendations Credit Ratings 9MFY20 Ratings RAM S&P Moody's AMMB AmBank (M) AmBank Islamic AmInvestment LT: AA2, ST: P1 Outlook: Stable LT: AA2, ST: P1 Outlook: Stable LT: AA2, ST: P1 Outlook: Stable LT: AA2, ST: P1 Outlook: Stable Target Price and Recommendations LT: BBB+, ST: A-2 Outlook: Stable LT: A3, ST: P-2 Outlook: Stable BCA: baa2 Adj BCA: baa2 P/EPS : 7.74 Closing Price: RM 3.91 Average TP : RM 4.41 P/BV : 0.65 Market Cap: RM 11.78 bil Buy : 10 (62%) Hold : 6 (38%) Sell : 0 (0%) Ave. TP/ Ave. CP : 1.14x 3.88 4.05 4.20 4.20 4.30 4.30 4.40 4.40 4.40 4.40 4.48 4.50 4.60 4.75 4.80 4.90 UOB HLIB KAF MIDF ADBS ■ Buy / Outperform / Overweight/ Add RHB RH1 ■ Sell / Underperform / Fully valued / Reduce / Underweight AmBank Group 9MFY2020 Results - Investor Presentation JP MBB TA RH2 PIVB CIMB KEN NOMURA AFFIN ■ Hold / Neutral / Market perform / Equalwt / In line Average target price Source Bloomberg, Research House Report as at 31 December 2019 44#45Glossary & Disclaimer | Glossary & Disclaimer of warranty and limitation of liability Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market Growth Definition QoQ growth refers to Q3FY20 vs Q2FY20 YoY growth refers to 9MFY20 vs 9MFY19 YTD growth refers to 9MFY20 vs FY19 Disclaimer on rounding differences Numbers may not add up due to rounding Disclaimer on restatement of comparatives The comparatives for business segments' financials have been restated to reflect current business realignment The information has been prepared by AMMB Holdings Berhad (AmBank Group or the Group) for information purpose and is believed to be correct at the time of presentation. No representation or warranty, express or implied, is given by or on behalf of AMMB Holdings as to the accuracy and completeness of the information or opinion contained in this presentation. This presentation does not purport to contain all information that may be required to evaluate AmBank Group or its financial position and should not be construed as an offer or recommendation to buy or sell securities. Neither does this presentation to form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever. Certain statements in this presentation may contain forward-looking statements. These forward-looking statements are based on current beliefs and expectations of the Group and are subject to significant risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The term "AMMB Holdings" and "AmBank Group" denotes all Group companies within the AMMB Holdings Group and this Disclaimer of Warranty and Limitation of Liability policy applies to the financial institutions under AMMB Holdings. For further information, visit www.ambankgroup.com; or contact Chelsea Cheng Chuan Shing Head, Group Finance - Investor Relations Tel: +603 2036 1425 Fax: +603 2070 8262 Email: [email protected]/[email protected] AmBank Group 9MFY2020 Results - Investor Presentation Teng Li Lin Vice President, Group Finance - Investor Relations Tel: +603 2036 1435 Fax: +603 2070 8262 Email: [email protected] 45