#1Maybank Humanising Financial Services Investor Presentation Financial Results 2Q FY2019 and 1H FY2019 ended 30 June 2019 29 Aug 2019 www.maybank.com#2Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#3Maybank Group 1H FY2019 Overview Improved net operating income of RM11.75 billion supported by loans growth and higher net fee based income 2 1 1H FY2019 Net Profit of RM3.75 billion; 2Q FY2019 Net Profit Rises 7.3% QoQ 1H FY2019 net operating income growth of 1.0% YoY mitigated by slightly higher overheads and net impairment losses, resulting in net profit of RM3.75 billion 2Q FY2019 net profit grew to RM1.94 billion, as stronger investment and trading income supported net fee based income growth of 10.9% QoQ while overheads remained flat and net impairment losses reduced QoQ 2 Targeted Balance Sheet Growth Group loans growth of 4.6% YoY driven by expansion of 4.2% in Malaysia, 2.3% in Singapore, 6.1% in Indonesia and 3.2% from other markets such as the Philippines, Greater China and IndoChina Group deposits expanded 3.9% YoY on CASA growth in Malaysia and Singapore and FD growth in Indonesia as part of its liquidity management ahead of the country's general elections 3 Strong Liquidity and Capital Positions Robust liquidity risk indicators with Group LCR at 145.4%, Group LDR at 93.4%, Group LTF at 86.3% and Group LTFE at 75.9% as at 30 June 2019 Total capital and fully loaded CET1 capital ratios at 17.98% and 14.23% respectively as at end-Jun '19, after proposed full cash interim dividend Full cash interim dividend of 25 sen per share for FY2019 (FY2018: 25 sen per share interim dividend of which 15 sen cash component) Maybank#4Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#5P&L Summary: 1H FY2019 Net operating income supported by YoY growth in net fund and net fee based income More details RM million on 1H 1H FY2019 FY2018 YOY 2Q 1Q FY2019 FY2019 QoQ 2Q FY2018 YOY S.21 Net fund based income * S.7/ Net fee based income * 8/21 s.19/ 20 Net operating income S.9 Overhead expenses 8,473.7 8,393.1 1.0% 3,276.1 3,241.9 1.1% 1,723.0 1,553.2 10.9% 1,663.2 3.6% 11,749.8 11,634.9 1.0% 5,889.8 5,860.1 0.5% 5,818.4 1.2% (5,629.3) (5,446.4) 3.4% (2,821.7) (2,807.6) 0.5% (2,678.8) 5.3% 4,166.8 4,306.9 (3.3) % 4,155.2 0.3% Net impairment losses Operating profit s.19 Profit before taxation and zakat (PBT) s.20 Pre-provisioning operating profit (PPOP) 1 6,120.5 6,188.5 (1.1) % 3,068.0 3,052.5 0.5% 3,139.6 (2.3)% (1,089.6) (1,063.3) (452.3) (637.3) (29.0) % (562.5) (19.6)% 5,030.9 5,125.2 (1.8) % 2,615.7 2,415.1 8.3% 2,577.1 1.5% 5,102.0 5,166.2 (1.2) % 2,651.6 2,450.4 2.5% 8.2% 2,609.6 1.6% Net Profit 2 - EPS Basic (sen) 33.8 3,750.1 3,830.0 (2.1) % 1,940.9 1,809.3 35.2 (3.9)% 7.3% 1,959.0 (0.9)% 17.5 16.4 6.7% 17.9 (2.7)% Note: * From consolidated 1H FY2019 Group numbers, Insurance and Takaful accounts for 7.3% of net fund based income and 10.1% of net fee based income 1 Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses 2 Net Profit is equivalent to profit attributable to equity holders of the Bank 4 Maybank#6LO 5 Net Fund Based Income: 1H FY2019 (1/2) Targeted balance sheet growth across home markets in line with Group's risk posture Group Gross Loans (YoY) +4.6% Malaysia Singapore Indonesia Community Financial Services ■Global Banking +4.2% +2.3% +6.1% RM billion 502.4 525.6 Jun 18 Group Deposits (YoY) +3.9% Jun 19 RM billion 539.8 65.4 +12.0% 560.9 73.2 +2.4% 285.2 291.9 +3.4% 189.3 195.8 Jun 18 CASA Ratio : 35.1% Jun 19 34.9% Note: RM billion RM billion 290.5 302.9 81.6 (1.3)% +6.5% 80.5 209.0 222.5 Jun 18 Jun 19 +4.6% 335.8 351.2 65.4 +12.0% 73.2 +1.0% 145.1 146.5 +4.9% 125.4 131.5 Jun 18 Jun 19 37.3% 37.5% Industry loans growth for Malaysia is 4.2%, Singapore is 3.9% and Indonesia is 9.9% •⚫ CASA ratio for Group and Malaysia includes investment accounts ⚫. Refer to pages 24-26 for detailed information on loans and deposits growth by country and products. SGD billion SGD billion 41.9 42.9 19.3 +3.0% 19.9 +1.6% 22.5 22.9 Jun 18 Jun 19 CASA FD ■ Others (3.0)% 47.0 45.6 33.0 (4.4)% 31.5 14.0 +0.5% 14.1 Jun 18 Jun 19 29.8% 30.8% IDR trillion IDR trillion 139.2 131.2 32.6 +24.2% 40.5 +0.1% 98.3 98.4 Jun 18 Jun 19 +10.3% 113.9 125.6 66.3 +26.9% 84.1 47.6 Jun 18 41.8% (12.9)% 41.4 Jun 19 33.0% Maybank#7Net Fund Based Income: 1H FY2019 (2/2) NIM compressed 9 bps YTD ann. on lower Malaysia loan yield from OPR cut and higher deposit cost in overseas markets 6 5 Year Trend 2.31 2.27 Net Interest Margin (%) QoQ Trend 2.38 2.30 2.30 2.27 2.19 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 2.36 2.33 2.24 FY2015 FY2016 FY2017 FY2018 1H FY2019 Maybank#8Net Fee Based Income: 1H FY2019 YoY growth driven by higher insurance net fee income but mitigated by unrealised losses on financial liabilities RM million 1H FY2018 1H FY2019 YOY Commission, service charges and fees Investment & trading income 1,693 1,579 (6.7)% 85 645 > 100% Unrealised gain/ (losses) on financial assets and investments (520) 1,041 (>100)% Derivatives and financial liabilities 445 (218) (>100)% Foreign exchange profit 399 432 8.5% Other income 208 180 (13.6)% Total Group's Other Operating Income 2,310 3,658 58.4% Of which: Other Operating Income from Insurance (450) 1,097 (>100)% +1.1% YoY (7.2)% YoY (6.1)% YoY +>100% YoY 3,242 3,276 2,759 2,561 1H FY2018 RM million Total 295 277 438 188 Other Operating Income from Banking Operations 1 Fee Income from Islamic Operations Net Fee Income from Insurance 2 Notes using Maybank's 2Q FY2019 Financial Statements: 1 Group's 'Other operating income' [Note A25] less 'Other operating income' from Insurance [Note A40(a)] 1H FY2019 2 Summation of ‘Other Operating Income' from Insurance and 'Net earned insurance premiums' under Note A40(a) with 'Net insurance benefits and claims incurred, net fee and commission expenses, change in expense liabilities and taxation of life and takaful fund' under Note A26 7 Maybank#9Net Fee Based Income: 2Q FY2019 Stronger investment and trading income QoQ improved net fee based income 2Q 1Q 2Q RM million QoQ YOY FY2019 FY2019 FY2018 Commission, service charges and fees 805 773 4.2% 857 (6.0)% Investment & trading income 438 206 > 100% (24) (>100)% Unrealised gain/ (losses) on financial 476 565 (15.8)% (385) (>100)% i assets and investments Derivatives and financial liabilities (62) (156) (60.5)% 229 (>100)% Foreign exchange profit 221 211 4.5% 268 (17.4)% Other income Total Group's Other Operating Income 101 78 29.1% 64 57.9% 1,980 1,678 18.0% 1,008 96.4% Of which: Other Operating Income from Insurance 595 501 18.7% (387) (>100)%; +10.9% QoQ +3.6% YoY 1,663 1,553 +17.7% QoQ (0.8)% YoY (6.6)% QoQ (18.9)% YoY (12.3)% QoQ +98.9% YoY 1,723 1,395 1,385 RM million 1,177 Total Other Operating Income from Banking Operations 1 Notes using Maybank's 2Q FY2019 Financial Statements: Fee Income from Islamic Operations 1 Group's 'Other operating income' [Note A25] less ‘Other operating income' from Insurance [Note A40(a)] 2 Summation of ‘Other Operating Income' from Insurance and 'Net earned insurance premiums' under Note A40(a) with 'Net insurance benefits and claims incurred, net fee and commission expenses, change in expense liabilities and taxation of life and takaful fund' under Note A26 8 ④Maybank 2Q FY2018 1Q FY2019 2Q FY2019 165 143 134 233 103 205 Net Fee Income from Insurance 2#10Overheads: 1H FY2019 Stable overheads trend QoQ; low growth YoY mainly led by personnel and marketing costs 1H 1H RM million YOY FY2019 FY2018 2Q FY2019 1Q FY2019 QoQ 2Q FY2018 YOY Personnel Costs 3,343.6 3,141.3 6.4% 1,656.6 1,686.9 (1.8)% 1,550.7 6.8% Establishment Costs 890.1 873.4 1.9% 448.7 441.4 1.7% 416.1 7.8% Marketing Expenses 291.8 265.3 10.0% 151.1 140.7 7.3% 122.5 23.4% Administration & General 1,103.9 1,166.4 (5.4)% 565.3 538.6 5.0% 589.6 (4.1)% Expenses Total 5,629.3 5,446.4 3.4% 2,821.7 2,807.6 0.5% 2,678.8 5.3% 1H % FY2019 1H FY2018 YOY 2Q FY2019 1Q 2Q QoQ YOY FY2019 FY2018 Total Cost to Income 1 47.9% 46.7% 1.2% 47.9% 47.9% 0.0% 46.0% 1.9% I Group JAWS Position (2.4)% 0.0% (4.1)% Note: 1 Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng 9 Maybank#11RM million Asset Quality Annualised net credit charge off rate of 38 bps with Group GIL ratio of 2.62% Allowances for losses on loans Group Gross Impaired Loans (GIL) Ratio Composition Loan loss coverage incl. Regulatory Reserve Loan loss coverage GIL Ratio Components Jun 2019 Mar 2019 Dec 2018 Sep 2018 Jun 2018 Allowances for losses on loans Non Performing Loans (NPL) 2.01% 1.72% 1.74% 1.90% 1.81% 93.6% 92.6% 93.6% 94.1% 90.2% Restructured & Rescheduled (R&R) 0.16% 0.15% 0.12% 0.16% 0.22% 80.7% 79.6% 83.6% 82.6% Performing Loans 78.0% Impaired Due to 0.45% 0.61% 0.55% 0.59% 0.61% Judgmental/ Obligatory Triggers (IPL) GIL Ratio 2.62% 2.48% 2.41% 2.65% 2.64% 582.1 418.5 81.3 604.0 391.6 GIL Ratio by Home Markets 1,091.5 995.6 4.05% 4.13% 3.72% 4.00% 4.26% 3.68% 3.70% 3.43% 3.49% 3.26% 2.13% 2.11% 1.88% 1.86% 2.11% 2Q 3Q 4Q 1Q 2Q FY2018 FY2018 FY2018 FY2019 FY2019 Note: 1H FY2018 FY2019 1H Loan loss coverage includes ECL for loans at FVOCI as per Note A11(xii) of the Group's Financial Statements 10 Jun 2018 Sep 2018 Dec 2018 Mar 2019 Jun 2019 Malaysia Singapore Indonesia Maybank#12Asset Quality by Line of Business Mostly stable AQ trends with some uptick in RSME and BB in Indonesia and CB in Malaysia Consumer Mortgage Auto Finance Credit Cards 2.59% 2.61% 2.63% 2.73% 2.88% 1.42% 1.36% 1.34% 1.33% 1.27% 1.83% 1.84% 1.86% 1.97% 1.66% 1.78% 1.53% 0.85% 0.90% 0.92% 0.93% 1.41% 0.90% 1.30% 0.67% 0.71% 0.65% 0.61% 0.66% 1.16% 0.88% 0.53% 0.54% 0.34% 0.85% 0.46% 0.44% 0.44% T T Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 0.22% Jun 18 Sep 18 Dec 18 Mar 19 0.34% 0.29% 0.13% 0.62% 0.63% 0.63% Jun 19 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Business Retail SME (RSME) Business Banking (BB) Corporate Banking (CB) Note: 11.40% 10.83% 10.51% 3.20% 9.88% 9.95% 2.86% 7.75% 2.64% 2.66% 7.66% 4.22% 7.10% 7.26% 6.86% 2.51% 2.73% 2.70% 2.64% 2.98% 7.05% 6.90% 2.51% 2.56% 2.21% 2.26% 6.59% 2.09% 5.55% 2.61% 2.58% 2.22% 2.38% 5.15% 1.84% 2.19% 2.15% 2.19% 2.10% 2.26% 2.33% 2.86% 1.95% 2.01% 1.79% Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 -Malaysia -Singapore Indonesia • In Malaysia, industry GIL ratio for mortgage (purchase of residential property) is 1.1%, 0.8% for auto finance, and 0.9% for credit cards. • In Singapore, industry GIL figure is only available for mortgage, which was 0.4%. • In Indonesia, Business Banking includes Commercial, SME and Micro loans. Maybank Indonesia's GIL ratios are mapped in accordance to its local regulatory reporting requirements and does not include R&R. 11 Maybank#13Liquidity Management: 30 June 2019 Well-diversified funding sources with stable Group liquidity risk indicators Funding Breakdown Borrowings and Capital Instruments by Currency Note: Liquidity Risk Indicators LDR LTF LTFELCR 144.9% 130.5% 132.4% 134.2% 145.4% FI Deposits, 6% Equity, 11% HKD, 9% IDR, CNY, 6% JPY, 9% SGD, 4% 94.4% 11% CNH, 4% 92.8% 92.7% 93.4% 92.4% Borrowings, 5% RM736.8 RM49.7 Others, billion Capital Instruments, billion 87.5% 4% 2% RM, 86.3% 86.2% 86.3% 85.4% 23% Customer Funding, USD, 30% 76% 77.3% 76.0% 76.1% 75.2% 75.9% By maturity: ≤ 1 Year 28% > 1 Year 72% • Customer Funding comprises Deposits from Customers & Investment Accounts of Customers. 12 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Note: 1) BNM's minimum LCR requirement is 100% 2) LTF is gross loans divided by (deposits + borrowings subdebt) while LTFE's denominator is (deposits + borrowings + subdebt + equity + capital securities) 3) LDR, LTF & LTFE excludes loans to banks and Fls + Maybank#14Strong Capital Position: 30 June 2019 Total capital ratio of 17.98% and CET1 capital ratio of 14.23%, after proposed full cash interim dividend payout Before proposed dividend After proposed full cash dividend 19.02% 18.71% 17.98% Regulatory Requirements Group Jan 2019 Onwards 15.98% 15.87% 15.14% 15.03% Dec 18 14.95% Jun 19 14.23% Jun 19 Minimum Common Equity Tier 1 Capital + Capital Conservation Buffer Minimum Tier 1 Capital + Capital Conservation Buffer 7.0% 8.5% Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio Minimum Total Capital + Capital Conservation Buffer Pending Finalisation of Other Capital Buffers: D-SIB Buffer 18.27% 18.69% 17.47% Bank 14.87% 15.50% 14.28% 13.76% 14.42% 13.20% Dec 18 Jun 19 Jun 19 13 ■Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio Countercyclical Capital Buffer 10.5% Between 0.5% - 1.0% Between 0% - 2.5% Maybank#15Dividend: 1H FY2019 Single-tier interim cash dividend of 25 sen per share Dividend (sen), Payout Ratio (%) and Cash Component (%) Effective Cash Dividend Payout Ratio 79.9% 78.5% 76.5% 74.9% 74.7% 76.3% 78.1% 78.5% 77.3% 74.9% 71.9% 100% 67% 53% Cash Component 27% 13% 11% 12% 20% 25% 19% 27% of Total Dividend 65.0 60.0 55.0 57.0 57.0 53.5 54.0 55.0 52.0 33# Final 32 85.7%* 36.0 33 Interim 86.1%* 31 30 32* + 44 82.6%* 85.9%* 83.7%* 32 89.1%* 32 81.7%* 88.6%* 11 28 91.1%* 36 88.5%* 32 88.2%* 22.5 24 85.9%* 84.0%* 24 87.5%* 20 23 83.5%* 85.7%* 25 84.0%* 25 FY08 FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Γ Dividend Paid Out from Net Profit | I 60.4%¦ ¦ II I 61.4% 26.2% 17.2% ¦ ¦ 17.0%¦ ¦ 19.0% ¦ ¦ 22.0% 29.0% 23.2% II T | T I I 28.6% 57.2% ¦ ¦ 47.1% ¦ ¦ 74.9% ¦ I L L L Note: * Actual Reinvestment Rate for Dividend Reinvestment Plan. + The Final Dividend for FY2017 was paid fully in cash. # The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend. Maybank adopted the single-tier dividend regime with effect from FY2012. 14 Maybank#16Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#17Market Outlook FY2019 Industry outlook for our home markets Key Indicators • Malaysia . GDP: 4.4% (2019F) vs 4.7% (2018) . • • System loan: 4.7% (2019F) vs 5.6% (2018) OPR: 2.75% (2019F) vs 3.25% (2018) USD/MYR average: 4.14 (2019F) vs 4.11 (2018) Inflation: 1.0% (2019F) vs 1.0% (2018) Industry Outlook • Growth supported by recovery in the mining and agriculture sectors as well as stimulus to domestic demand from rate cut and the revival of major infrastructure projects and Government development spending Potential deposit competition could place pressure on net interest margins (NIMS) • • . GDP: 0.6% (2019F) vs 3.1% (2018) . System loan: 4.3% (2019F) vs 5.3% (2018) 3M SIBOR: 1.70% (2019F) vs 1.89% (2018) USD/SGD average: 1.37 (2019F) vs 1.36 (2018) Singapore Inflation: 0.7% (2019F) vs 0.4% (2018) • • Economic growth could be affected by reduced pace of expansion in China and EU, and effects from the US-China trade war • Potentially slower loans growth arising from cautious business sentiment Indonesia 16 • GDP: 5.0% (2019F) vs 5.2% (2018) . • System loan: 10.5% (2019F) vs 11.8% (2018) Reference Rate: 5.50% (2019F) vs 6.00% (2018) USD/IDR average: 14,210 (2019F) vs 14,267 (2018) Inflation average: 3.3% (2019F) vs 3.2% (2018) • Economic growth to be supported by consumption boosted by a minimum wage increase, stable inflation rate and fiscal stimulus programmes • Loan growth to be supported by consumption and working capital needs while liquidity conditions could ease with foreign inflows Maybank#18Maybank Performance Outlook Group guidance for FY2019 3 1 Income Growth Expand revenue streams through cross business collaborations Measured balance sheet expansion in line with economic growth of home markets and Group's conservative risk posture Group ROE guidance of 10.0% to 10.5%, on slower economic growth and a lower interest rate environment 2 Better Productivity 4 Driving positive JAWs across business segments ➤ Managed Group cost growth with CIR -47% ➤ Continued emphasis on employee up-skilling for digital economy Asset Quality Management Disciplined asset quality management in slowing economic growth environment and continued recovery efforts Liquidity and Capital Management Maintain stable liquidity risk indicators ahead of NSFR adoption in 2020 Maintain robust capital positions, while rewarding shareholders with strong effective cash dividend payout as seen with interim dividend 5 Digitalisation 17 Conservative investment spend focused on improving customer experience with rollout of product/services ➤ Enhancing data driven analytics Maybank#19Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#20International & Malaysia Portfolio Mix 1H FY2019 1H FY2019 - Net Operating Income (Jan 19 Jun 19) Profit Before Tax Overseas: 37.7% 7.0% 12.2% 18.5% RM11.75 billion 62.3% 1H FY2018 (Jan 18 Jun 18) 7.7% 12.2% RM11.63 billion 18.9% 61.2% Overseas: 38.8% Note: * Gross loans* Overseas: 14.4% 4.6% 6.8% 3.0% Overseas: 41.9% 8.5% 7.7% RM5.10 billion RM525.6 billion 25.7% 58.1% 85.6% ■Malaysia ■Singapore ■Indonesia Others 8.6% 7.3% RM502.4 billion 25.6% 58.5% 11.3% 7.1% 11.5% RM5.17 billion 70.1% Overseas: 41.5% Overseas: 29.9% Including Islamic loans sold to Cagamas and excludes unwinding of interest 19 Maybank#21Note: Segmental Performance of Businesses: 1H FY2019 (1/2) Net Operating Income +1.0% 11,635 11,750 Group Global Banking +0.4% 1H FY2018: 4,588 1H FY2019: 4,608 +3.4% (26.0)% +>100% (0.4)% RM million 6,679 6,652 3,831 3,963 712 527 45 118 Total Group Community Financial Services Group Corporate PPOP (1.1)% 6,189 6,121 Banking & Global Markets Group Investment Banking Group Asset Management Group Global Banking +2.0% 1H FY2018: 3,030 1H FY2019: 3,091 (5.8)% (92.2)% (>100)% RM million Total +7.0% 3,186 3,002 2,846 3,047 Group Community Financial Services 1H FY2018 1H FY2019 +48.1% 632 936 Group Insurance & Takaful 1H FY2018 1H FY2019 +>100% 474 197 15 Group Corporate Banking & Global Markets Group Investment Banking (12) Group Asset Management 29 237 Group Insurance & Takaful Net income & PPOP for Group includes "Head Office & Others" expenditure of RM265.0 million for 1H FY2018 and RM446.5 million for 1H FY2019. 20 Maybank#22Note: Segmental Performance of Businesses: 1H FY2019 (2/2) RM million Net Fund Based Income +1.0% 8,393 8,474 Group Global Banking (0.8)% 1H FY2018: 2,716 1H FY2019: 2,695 Л +0.8% (25.8)% +61.3% (1.1)% 5,098 5,043 2,540 2,559 171 127 58 Group Community Financial Services Group Corporate Banking & Global Markets Group Investment Banking Group Asset Management Total Net Fee Based Income +1.1% 3,242 3,276 RM million Total Group Global Banking ▲ +2.2% 1H FY2018: 1,872 1H FY2019: 1,913 1H FY2018 1H FY2019 +13.5% 559 635 Group Insurance & Takaful 1H FY2018 1H FY2019 +1.8% +8.6% Л (26.1)% +>100% +>100% 1,581 1,610 1,292 1,403 540 400 302 40 110 73 Group Community Financial Services Group Corporate Banking & Global Markets Group Investment Banking Group Asset Management Group Insurance & Takaful Net fund based income includes "Head Office & Others" income of RM 20.1 million for 1H FY2018 and RM 101.9 million for 1H FY2019. Net fee based income includes "Head Office & Others" expenditure of RM 285.1 million for 1H FY2018 and RM 548.4 million for 1H FY2019. 21 Maybank#23Unaudited Income Statement for Insurance and Takaful Business RM million Net interest income 1H 1H FY2019 FY2018 YOY 2Q 1Q FY2019 FY2019 QoQ 2Q FY2018 YOY Net earned premiums Other operating income Total operating income 634.3 559.0 13.5% 322.0 312.3 3,250.4 3,001.4 8.3% 1,623.8 1,626.5 1,096.5 (449.6) (>100)% 595.2 501.4 4,981.2 3,110.9 60.1% 2,541.0 2,440.2 3.1% 280.8 14.7% (0.2)% 1,490.0 9.0% 18.7% 4.1% (387.5) (>100)% 1,383.4 83.7% Net insurance benefits & claims incurred, net fee & commission expenses, change in expense liabilities and life & takaful fund tax (4,052.6) (2,486.4) 63.0% (2,086.9) (1,965.7) 6.2% (1,058.2) 97.2% Net operating income Overhead expenses PPOP Net impairment losses Operating profit 928.6 624.5 (459.7) (395.7) 468.9 228.8 48.7% 16.2% > 100% (16.9) 452.1 8.0 236.8 (>100)% 90.9% 454.1 (239.9) 214.2 (7.4) 474.5 (4.3)% (219.7) 9.2% 254.8 (15.9)% 124.8 (9.5) (21.9)% 3.4 (>100)% 206.8 245.3 (15.7)% 128.2 61.3% 325.2 39.6% (200.4) 19.7% 71.6% Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses, change in expense liabilities and life & takaful fund tax RM million Net insurance benefits & claims incurred, net fee! & commission expenses, change in expense liabilities and life & takaful fund tax Less: intercompany elimination Total net insurance benefits & claims incurred, net fee & commission expenses, change in expense liabilities and life & takaful fund tax 22 1H 1H FY2019 FY2018 YOY 2Q 1Q FY2019 FY2019 QoQ 2Q FY2018 YOY (4,052.6) (2,486.4) 63.0% (2,086.9) (1,965.7) 6.2% (1,058.2) 97.2% 143.7 122.3 17.5% 72.5 71.2 1.9% 58.4 24.1% (3,908.9) (2,364.2) 65.3% (2,014.4) (1,894.5) 6.3% (999.7) >100% Maybank#24Exposure to Oil & Gas and Real Estate Sectors: 30 June 2019 Group Exposure to Direct & Indirect Oil & Gas Borrowers Real Estate Exposure to Non-Retail Malaysian Borrowers Maybank Group Malaysia Singapore Indonesia 3.08% Note: ◉ Others 1.75% 0.99% 0.09% 0.25% Funded-only exposure is 2.27% for Group Borrowers' Status: Others, 30.7% High Rise Residential, 30.4% RM32.33 bil (or 10.67% of Malaysia Gross Loans) Normal Watchlist ■Special Mention Account GIL 65% Of GIL breakdown: 93% is from midstream Segmental Exposure: Upstream 27% 19% 1% 15% Midstream Downstream 48% Hotels, 5.7% Landed Residential, Offices, 5.7% Malls, 17.4% 10.1% Note: ☐ Funded-only exposure is 10.12% 'Others' include Land, Industrial Buildings & Factories, Other Residential ■ and Other Commercial Borrowers' Status: Normal Watchlist ■Special Mention Account GIL 84% 12% 1%3% 25% Of Watchlist breakdown: Of GIL breakdown: • 31% is from high rise residential • . 31% is from combined exposure 40% is from combined exposure to malls and hotels to malls, hotels and offices • 14% is from high rise residential Note: " Midstream refers to the transportation (i.e. pipeline, barge, oil tanker or truck), storage and wholesale marketing services of crude or refined petroleum products. 23 Maybank#25Group Gross Loans Growth: 30 June 2019 % of Portfolio 30 Jun 31 Mar 31 Dec YTD 30 Jun QoQ YOY 2019 2019 2018 Ann. 2018 Group Gross Loans 525.6 516.9 1.7% 517.3 3.2% 502.4 4.6% Malaysia (RM billion) 58% 302.9 299.5 1.1% 299.2 2.4% 290.5 4.2% Community Financial Services (reported) 73% 222.5 218.3 1.9% 216.0 6.1% 209.0 6.5% H H Community Financial Services (rebased)¹ 73% 222.5 218.3 1.9% 215.9 6.1% 209.0 6.5% Global Banking (reported) 27% 80.5 81.2 (0.9)% 1 83.3 (6.7)% 81.6 (1.3)% 1 Global Banking (rebased)1 27% 80.5 81.2 ▼ (0.9)% 83.4 ▼ (6.9)% 81.6 ▼(1.3)% ! International (RM billion) 41% 216.4 211.0 2.5% 211.8 4.3% 204.3 5.9% Singapore (SGD billion) 61% 42.9 42.6 0.6% | 42.4 2.4% 41.9 2.3% Community Financial Services 54% 22.9 22.8 0.2% 22.6 2.7% 22.5 1.6% Global Banking 46% 19.9 19.7 1.0% 19.7 1.9% 19.3 3.0% Indonesia (IDR trillion) 19% 139.2 140.5 (0.9)% ! 138.3 1.3% 131.2 6.1% Community Financial Services 71% 98.4 101.1 ▼ (2.6)% 103.3 ▼ (9.5)% 98.3 0.1% Global Banking 29% 40.5 39.1 3.5% 34.7 33.2% 32.6 24.2% Other markets (RM billion) 20% 44.5 42.2 5.4% 43.8 3.3% 43.1 3.2% Investment banking (RM billion) 1% 6.4 6.3 0.3% 6.3 2.4% 7.6 ▼ (16.1)%; Note: 1 Rebased loan growth figures are based on adjusted 31 December 2018 position in line with migration of client accounts, effective 1 January 2019 24 Maybank#26Malaysia Loans Growth: 30 June 2019 RM billion % of Portfolio 30 Jun 31 Mar 31 Dec YTD 30 Jun QoQ YOY 2019 2019 2018 Ann. 2018 Community Financial Services (reported) 73% 222.5 218.3 1.9% 216.0 6.1% 209.0 6.5% Community Financial Services (rebased)¹ 73% 222.5 218.3 1.9% 215.9 6.1% 209.0 6.5% Consumer 59% 179.7 176.8 1.6% 174.4 6.1% 168.2 6.9% Total Mortgage 30% 91.5 89.5 ▲ 2.3% 87.5 9.2% 83.9 9.0% Auto Finance 16% 48.9 48.3 1.3% 47.9 4.3% 46.8 4.5% Credit Cards 2% 7.4 7.3 0.2% 7.6 i (5.4)% i 7.2 2.4% Unit Trust 10% 29.6 29.3 0.9% 29.0 4.0% 27.7 6.7% Other Retail Loans 1% 2.4 2.4 ▼ (0.5)% 2.5 ▼(13.0)% 2.6 ▼ (6.8)% Business Banking + SME (reported) 14% 42.8 41.5 3.1% 41.5 6.1% 40.9 4.7% Business Banking + SME (rebased)1 14% 42.8 41.5 3.1% 41.5 6.5% 40.9 4.7% SME (reported) 6% 17.8 17.2 3.5% 17.1 8.4% 15.9 11.9% SME (rebased)1 6% 17.8 17.2 3.5% 16.8 12.6% 15.9 11.9% Business Banking (reported) 8% 25.0 24.3 2.9% 24.4 4.5% 25.0 0.1% Business Banking (rebased)1 8% 25.0 24.3 2.9% 24.7 2.3% 25.0 0.1% Global Banking (Corporate) (reported) 27% 80.5 81.2 (0.9)% j 83.3 (6.7)% i 81.6 (1.3)% Global Banking (Corporate) (rebased)1 Total Malaysia 27% 80.5 81.2 (0.9)% ! 83.4 (6.9)% 81.6 (1.3)%! 302.9 299.5 1.1% 299.2 2.4% 290.5 4.2% Note: 1 Rebased loan growth figures are based on adjusted 31 December 2018 position in line with migration of client accounts, effective 1 January 2019 25 Maybank#27Group Deposits Growth: 30 June 2019 % of Portfolio 30 Jun 2019 31 Mar 2019 31 Dec YTD 30 Jun QoQ YOY 2018 Ann. 2018 Group Gross Deposits 560.9 557.6 0.6% 556.3 1.7% 539.8 3.9% Malaysia (RM billion) 62% 351.2 343.9 2.1% 343.8 4.3% 335.8 4.6% Savings Deposits 13% 44.5 43.9 1.3% 42.8 7.9% 42.8 3.9% Current Accounts 25% 87.0 84.9 2.5% I 90.3 (7.4)% ! 82.5 5.4% Fixed Deposits 42% 146.5 131.4 11.4% 125.8 32.8% 145.1 1.0% Others 20% 73.2 83.7 (12.5)%! 84.8 (27.5)%! 65.4 12.0% International 38% 211.3 215.2 (1.8)% 214.1 (2.7)% 205.8 2.7% Singapore (SGD billion) 66% 45.6 46.7 1 ▼ (2.4)% 1 46.2 (2.5)% i 47.0 1 ▼ (3.0)% 1 Savings Deposits 16% 7.1 7.0 1.9% 7.0 1.3% 6.2 14.5% Current Accounts 15% 7.0 7.3 i (5.0)% i 7.6 (16.9)%i 7.8 (10.6)%1 Fixed Deposits 69% 31.5 32.4 (2.8)% 31.5 0.1% 33.0 (4.4)% ! Indonesia (IDR trillion) 17% 125.6 128.7 ▼ (2.5)% i 117.0 14.6% 113.9 Savings Deposits 16% 19.6 18.6 5.3% 19.9 ▼ (3.5)% ! 23.7 10.3% ▼(17.4)%! H Current Accounts 17% 21.9 22.1 ▼(1.0)% i 24.4 (21.2)%i 23.9 (8.5)% i Fixed Deposits 67% 84.1 88.1 (4.5)% 72.7 ▲ 31.6% ! 66.3 26.9% 26 46 Maybank#2827 Continued RWA Optimisation RM billion Group Gross Loans +4.6% YoY +3.2% YTD Ann. 525.6 517.3 502.4 RM billion Total Group RWA +1.6% YoY +8.0% YTD Ann. → 389.5 383.3 374.6 41.3 +1.6% 42.1 41.8 20.4 21.2 +33.4% 17.5 Operational RWA +7.4% 320.9 315.3 Market RWA 327.0 Credit RWA Jun 18 Dec 18 Jun 19 Jun 18 Dec 18 Jun 19 Maybank#29LDR and CASA Ratio Group -LDR CASA CASA (without IA) Malaysia 92.8% 94.4% 92.7% 92.4% 93.4% 87.8% 89.5% 87.9% 88.0% 87.2% 35.1% 35.1% 35.9% 34.5% 34.9% 37.3% 37.9% 38.7% 37.5% 37.5% 33.2% 33.2% 33.6% 32.4% 32.6% 34.3% 34.9% 34.9% 34.0% 33.8% Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Singapore Indonesia ALDR (Bank Level) 89.2% 93.2% 91.8% 91.2% 94.0% 119.2% 111.8% 113.8% 105.4% 107.0% 100.6% 94.0% 96.5% 90.1% 92.3% 29.8% 30.1% 31.7% 30.6% 30.8% 41.8% 41.3% 37.9% 31.6% 33.0% Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Note: Group and Indonesia LDR excludes loans to banks and Fls • Group and Malaysia LDR include investment accounts totaling RM21.65 billion for 30 Jun 2019, RM22.80 billion for 31 Mar 2019, RM23.57 billion for 31 Dec 2018, RM18.77 billion for 30 Sep 2018 and RM19.18 billion for 30 June 2018. 28 Maybank#30Key Operating Ratios Note: 1H 1H 2Q 1Q 2Q % YOY QoQ YOY FY2019 FY2018 FY2019 FY2019 FY2018 Return on Equity 9.8 10.8 (1.0)% 10.2 9.7 0.5% 11.1 (0.9)% Net Interest Margin 2.24 2.33 (9) bps 2.19 2.30 (11) bps 2.27 (8) bps Fee to Income Ratio 27.9 27.9 0.0% 29.3 26.5 2.8% 28.6 0.7% Loans-to-Deposit Ratio 1 93.4 92.8 0.6% 93.4 92.4 1.0% 92.8 0.6% 2 Cost to Income Ratio 47.9 46.7 1.2% 47.9 47.9 0.0% 46.0 1.9% Asset Quality Gross Impaired Loans Ratio 2.62 2.64 (2) bps 2.62 2.48 14 bps 2.64 (2) bps Loans Loss Coverage 78.0 80.7 (2.7)% 78.0 82.6 (4.6)% 80.7 (2.7)% Net Charge off rate (bps) (38) (44) 6 bps (30) (47) 17 bps (47) 17 bps Capital Adequacy 3 CET1 Capital Ratio 14.23 Total Capital Ratio 17.98 13.16 107 bps 14.23 17.78 20 bps 17.98 14.55 (32) bps 19.00 (102) bps 13.16 107 bps. 17.78 20 bps 1 LDR excludes loans to banks and Fls. 2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Maybank Kim Eng. 3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period. 2Q & 1H FY2019 capital ratios are based on full cash payment of interim dividend for FY2019. 29 Maybank#31Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#32Community Financial Services: Overview of Market Share for Malaysia Market share Loans Jun-19 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 VS Mar-19 Market position Total consumer (Household) 17.6% Auto (Purchase of transport vehicles) Total mortgage * 17.7% 17.7% 17.8% 17.5% 27.1% 27.3% 27.7% 28.0% 28.3% 13.3% 13.4% 13.5% 13.6% 13.6% 2 2 2 Credit cards ** 19.0% 19.1% 19.2% 19.1% 19.0% 1 Unit trust 50.4% 50.1% 49.6% 49.5% 49.2% 1 Deposits Total deposits *** Total core retail deposits Retail CASA ^ Retail savings Λ Demand deposits Λ 18.6% 18.3% 18.4% 18.2% 17.8% 1 Λ 17.9% 17.8% 17.2% 16.9% 16.8% 25.0% 24.9% 25.0% 25.1% 24.9% 28.6% 2 1 28.2% 28.5% 28.4% 28.3% 1 19.0% 14.4% 19.1% 18.9% 14.4% 13.5% 13.0% 12.9% 19.0% 18.9% 1 2 Retail fixed deposits Channels Λ Internet banking - Subscriber base Mobile banking - Subscriber base Internet banking - Transaction Volume ^^ Mobile banking - Transaction Volume Branch network 18.6% 41.0% 40.2% 39.7% 31.4% 30.9% 30.7% 31.3% 31.8% 53.8% 53.3% 52.8% 50.7% 50.7% 65.9% 65.4% 66.7% 62.9% 62.6% 19.0% 19.2% 19.2% 19.3% 39.6% 40.6% 1 1 1 1 1 Note: * Refers to housing, shophouse and other mortgage loans ** Credit cards market share refer to receivables for commercial banks *** Total bank deposits inclusive of investment asset ("IA") 31 Λ ΑΛ Without IA. With IA, the market share as at June'19 for Total Core Retail Deposits, Retail CASA, Retail Savings, Demand Deposits and Retail Fixed Deposits are 17.4%, 26.0%, 28.3%, 22.0% and 14.1% respectively (against MBB retail IA). Excluding non-financial transactions as per BNM guidelines Maybank#33RM billion Community Financial Services: Overview of Malaysia Portfolio Total CFS loans on an upward trend of 6.5% YoY and 6.1% YTD annualised. Total CFS deposits decreased by 3.3% YoY, due to reduction in high cost deposits, mitigated by CASA growth of 2.7% RM billion 209.0 216.0 222.5 40.9 41.5 42.8 168.2 174.4 179.7 Jun 18 Dec 18 ■Consumer BB + RSME Jun 19 +6.5% YoY +6.1% YTD Ann. RM billion 205.8 200.6 199.1 66.8 63.5 60.2 139.0 137.1 138.9 Jun 18 Dec 18 Jun 19 Consumer BB + RSME (3.3)% YoY (1.5)% YTD Ann. Wealth Management segment's TFA grew 3.5% YoY to RM208.6 billion Maybank2u 1-month active users grew 14.3% YoY driven by growth in mobile users Maybank2u 1-month active users +3.5% YoY +3.3% YTD Ann. +14.3% YoY 201.5 205.3 208.6 4.89 5.59 of which Mobile 1-month active users +42.9% YoY Jun 18 Dec 18 Jun 19 Note: ⚫TFA: Total Financial Assets (Deposits, Investments, Financing & Protection). ⚫TFA for Individual customers amounted to RM319.2 billion as at Jun' 19, RM313.7 billion as at Dec' 18 and RM307.9 billion in Jun'18. 32 In million 2.24 3.20 Jun 18 Jun 19 Jun 18 Jun 19 Maybank#34Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#35Global Banking: Overview of Malaysia Corporate Banking and Group Securities Portfolio Total Corporate Banking loans in Malaysia decreased 1.3% YoY to RM80.5 billion Group Securities Portfolio¹ grew 13.1% YoY RM billion Term Loan 45.7 45.1 +6.0% YoY 43.2 +13.1% YoY 194.9 186.5 179.0 178.0 8.4 172.3 6.6 6.9 6.6 26.2 9.1 24.0 25.7 22.7 Short Term 23.9 29.4 Revolving Credit 58.5 26.9 (12.5)% YoY 58.1 55.8 56.6 54.2 27.4 10.8 Trade Finance 11.3 and Others 11.1 (2.3)% YoY RM billion 41.0 40.6 45.8 50.1 33.9 45.7 49.6 51.5 51.9 51.7 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 - Note: Jun 19 Dec 18 Jun 18 'Term Loan' includes foreign currency denominated accounts, while 'Trade Finance and Others' is combined with 'Overdraft' - Trade Finance market share as at Jun'19 is 21.9% 34 Govt. Securities - Domestic PDS/Corp Bonds - Domestic Others ■Govt. Securities - Foreign PDS/Corp Bonds - Foreign Note: 1 Group Securities Portfolio is inclusive of Financial assets designated upon initial recognition (part of FVTPL) Maybank#36Global Banking: Overview of Group Investment Banking Portfolio 1H FY2019 Total Income Breakdown by Country Maybank Kim Eng 1H FY2019 Fee-based Income for Malaysia Note: Hong Kong 5% Others 5% Philippines 2% Indonesia 5% Thailand 14% Singapore 24% Malaysia 45% RM526.6 million Arranger Fees. 27% Brokerage Fees 43% Country Rank Malaysia 4 1H FY2019 Brokerage Market Share by Country Trading Value (USD billion) 10.7 Market Share 7.96% Singapore 14 3.80% 7.2 Thailand 3 6.05% 20.5 Indonesia 14 2.13% 3.5 Philippines 6 5.25% 2.7 Hong Kong Tier 3 0.14% 4.1 Vietnam >10 2.52% 1.2 1 Maybank Kim Eng represents the combined business of Maybank IB and business segments under Maybank Kim Eng Holdings. 35 Underwriting & Placement Fees 11% Advisory Fees 10% Agency/ Guarantee Fees 3% Other Fee Income 6% Maybank#37Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#38Maybank Singapore: P&L Summary 37 SGD million 1H FY2019 1H FY2018 YOY Net fund based income 383.01 371.08 3.2% Net fee based income 161.76 201.39 (19.7%) Net income 544.76 572.47 (4.8%) Overhead expenses (233.99) (211.48) 10.6% Operating profit 310.77 360.99 (13.9%) Profit before taxation 17.15 176.63 (90.3%) Net fund based income registered a 3.2% growth, driven by loans, investment and placement income, though offset by higher interest costs. Fee based income reduced 19.7% YoY. Maybank's fee income fell on lower treasury related fee. Comparatively, fee based income was higher last year due to one-off property disposal gains. Overhead expenses increased 10.6% arising from higher personnel and depreciation costs, partly mitigated by lower information technology and establishment spend. 1H FY2019 profit before tax of SGD17.15 million was lower than the prior year, mainly due to higher impairment allowances. Maybank#3938 Maybank Singapore: Overview of Loans and Deposits Portfolio Diversified Loan Portfolio Consumer deposits' composition rose to 53% of total deposits SGD Billion % of Portfolio 30 Jun 31 Dec YTD 30 Jun YOY 2019 2018 Ann. 2018 (3.0)% YoY CFS 54% 22.9 22.6 2.7% 22.5 1.6% 47.0 46.2 45.6 Consumer 39% 16.6 16.4 3.0% 16.4 1.5% ■Consumer - Time Deposits 16.5 15.9 16.2 Housing Loan 25% 10.9 10.9 0.7% 10.9 (0.1)% Consumer 53 % Consumer CASA Auto Loan 6% 2.5 2.4 10.6% 2.3 8.0% 7.0 7.8 7.8 Cards 1% 0.4 0.4 (6.0)% 0.4 (0.2)% Others 7% 2.8 2.7 7.2% 2.7 2.7% Non-Individuals 15% 6.3 6.2 1.8% 6.2 1.8% SGD billion 16.5 15.5 15.2 Corporate 47 % ■■■Business Time Deposits 7.0 6.9 6.3 Business CASA RSME 3% 1.5 1.4 9.2% 1.3 14.6% Jun 18 Dec 18 Jun 19 Business Banking 8% 3.4 3.4 (1.4)% 3.4 (1.8)% Others 3% 1.5 1.4 1.9% 1.5 1 (0.8)% Global Banking 46% 19.9 19.7 1.9% 19.3 3.0% Total 100% 42.9 42.4 i 2.4% 41.9 2.3% Maybank Singapore loans rose 2.3% YoY Deposits fell 3.0% YoY largely due to lower business time and CASA deposit. Share of consumer deposit improved from 50% to 53% YoY Growth in consumer CASA led to higher overall CASA ratio from 29.8% to 30.8% YoY % YoY change 9.9% 7.8% 5.3% 8.9% 7.1% 4.5% 3.8% 3.4% 3.9% 2.3% Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Maybank Singapore Growth Industry Growth SGD billion ■Time Deposits ■Demand Deposits 33.0 31.5 31.5 ■Savings 7.8 7.6 7.0 CASA Ratio: 30.8% 6.2 7.0 7.1 Jun 18 Dec 18 Jun 19 Maybank#40Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#41Maybank Indonesia: P&L Summary IDR billion 1H FY2019 1H 2Q 1Q YOY QoQ FY2018 FY2019 FY2019 : Net Fund Based income 4,024 3,932 2.4% 1,987 2,037 (2.4)% Net Fee Based income 1,167 1,022 14.1% 652 515 26.6% Net income 5,191 4,954 4.8% 2,639 2,552 3.4% Overhead expenses (3,183) (2,988) 6.5% (1,598) (1,585) 0.8% Personnel (1,265) (1,287) (1.8)% (631) (633) (0.3)% General and Administrative (1,918) (1,701) 12.8% (967) (952) 1.5% Operating profit 2,008 1,966 2.1% 1,041 966 7.8% Provisions Expenses (975) (666) 46.3% (574) (401) 43.4% Non Operating Income/(Expense) 9 (3) > 100% 4 5 (29.8)% Profit Before Tax and Non-Controlling Interest 1,042 1,296 (19.6)% 471 571 (17.6)% Tax and Non-Controlling Interest (285) (364) (21.6)% (129) (156) (17.5)% Profit After Tax and Non-Controlling Interest 757 933 (18.9)% 342 415 (17.6)% - EPS Basic (IDR) 9.93 13.74 (27.7)% 4.93 5.00 (1.4)% 40 40 Maybank#42Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown Key Operating Ratios Loans Portfolio Breakdown Key Operating Ratio Jun-19 Dec-18 Jun-18 YOY IDR Trillion % of 30 Jun 31 Mar Portfolio! 2019 2019 30 Jun QoQ YOY 2018 I Profitability & Efficiency CFS 72% 97.6 100.0 (2.3)% 97.0 0.7% Return On Assets 1.12% 1.74% 1.49% (0.37)% CFS Retail 32% 43.0 43.5 (1.1)% 43.2 (0.4)% Return On Equity (Tier 1) 6.50% 10.21% 9.16% (2.66)% Auto Loan 18% 24.0 Net Interest Margin 4.83% 5.24% 5.11% (0.28)% Mortgage 11% 15.5 15.6 (1.1)% 15.4 24.4 (1.5)% 24.4 (1.7)% 0.5% Cost to Income Ratio 61.32% 58.10% 60.32% 1.00% CC + Personal 2% 3.1 3.1 1.0% 2.9 5.2% i Loan Asset Quality Other loans 1% 0.4 0.4 0.3% 0.4 (0.1)% NPL - Gross 3.06% 2.59% 2.79% 0.27% CFS Non-Retail 40% 54.6 56.5 (3.3)% 53.8 Liquidity & Capital Adequacy LCR^ CET 1 CAR 166.38% 17.12% 124.94% 16.85% 19.07% 19.04% 151.48% 14.90% 16.27% 0.85% 18.77% 0.30% Business Banking RSME Global Banking 22% 30.7 32.1 1.6% (4.7)% 31.3 (2.0)% 18% 24.0 24.3 (1.5)% 22.5 6.6% 28% Total 37.8 35.9 5.4% 30.1 135.4 135.8 (0.3)% 127.1 25.6% 6.6% ^LCR is disclosed on a quarter-end basis 41 Note: Maybank Indonesia's loans breakdown is mapped in accordance to its local regulatory reporting requirements. Maybank#43Table of Contents Executive Summary Results Overview Prospects & Outlook Appendix: 1. Financial Performance 2. Community Financial Services 3. Global Banking 4. Maybank Singapore 5. Maybank Indonesia 6. Other Segments Financial Results: 2Q FY2019 and 1H FY2019 ended 30 June 2019 2 4 16 19 31 34 37 40 43#44Islamic Banking: Performance Overview Group Islamic Banking Financial Performance RM million Maybank Islamic Maybank Islamic: Total Gross Financing grew to RM183.7 billion 1H FY2019 1H FY2018 YOY Total Income Profit Before Tax 2,521.0 1,671.8 2,797.6 (9.9)% 1,184.5 41.1% Financing & Advances 196,253.9 183,123.0 7.2% Deposits & Investment Account: 188,173.8 169,473.6 11.0% Deposits from Customers 166,521.0 150,297.4 10.8% 21,652.8 19,176.2 12.9% Investment Account Group Islamic Banking's performance includes key markets in Malaysia, Indonesia and Singapore Maybank Islamic: Key Financial Ratios ■Jun-18 Jun-19 12% 50.3 7% 45.0 35.0 32.8 10% 40.9 37.2 ▲7% RM billion 29.0 (7%) 26.9 22.9 21.3 13% 6.3 7.1 AITAB Mortgage Term Financing Others (CFS) Term Financing Others (GB) CFS: 10% GB:▲1% Note: Figures are as per latest segmentation breakdown Maybank Islamic Contribution to Maybank Malaysia Loans and Financing as at June 2019 1H FY2019 1H FY2018 Key Financial Ratios Total Capital Ratio (TCR) 21.74% 19.05% Net Profit Margin (YTD) 1.79% 1.86% Cost to Income Ratio (CIR) Direct FDR¹ 36.10% 33.59% 93.1% 95.9% Note: 1 Direct Financing to Deposits Ratio (FDR) comprising gross financing against deposit and Unrestricted Investment Account (exc. RPSIA assets and liabilities) 43 Year Contribution Maybank Islamic, 60.2% Jun 2018 58.5% Sep 2018 58.3% Maybank Conventional, Dec 2018 58.7% Malaysia, 39.8% Mar 2019 59.7% Jun 2019 60.2% Maybank#45Islamic Banking: Market Share Maybank Islamic Market Share 31.1% 30.7% 30.9% 31.0% 31.0% Market Share by Product (Malaysia) Maybank Islamic Key Products Jun 19 Jun 18 Automobile Financing 46.5% 44.1% 28.8% 28.8% 28.4% 28.3% Home 26.3% 26.1% 27.8% Term financing 28.3% 28.0% Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 -Financing Deposits & Investment Accounts Source for industry numbers: Latest BNM Monthly Statistical Bulletin Maybank Islamic ranks No. 1 by Asset Market Share in Malaysia Source for industry numbers: Latest BNM Monthly Statistical Bulletin Sukuk League Table Ranking June 2019 Asset Market Share Global Sukuk League Table Ranking Market Share (%) Amount (USD million) Issues Malaysia Maybank Islamic CIMB Islamic RHB Islamic Rank Mar 19 #2 Maybank 13.03% 3,965 66 31% 1 14% 2 MYR Sukuk League Table Ranking Market Share (%) Amount (USD million) Issues 9% 3 #2 Maybank 25.98% 3,568 57 Source: Latest BNM monthly statistical bulletin & respective Bank's Financial Statements Source: Bloomberg 44 Maybank#46Insurance and Takaful: Performance Overview Net Adjusted Premium/ Contribution Single Premium Regular Premium (6.3)% eTiQa Life / Family (New Business) Market Share (Malaysia) Credit Premium (3.0)% Group Premium 29.3% Total Life/Family Fire 7.1% Motor 30.4% 8.5% 20.1% 22.1% 21.9% 18.6% 1H FY2019 14.9% 14.8% 13.9% 16.5% ■1H FY2018 14.2% 14.2% 13.0% 13.8% 8.1% 8.6% 7.6% 10.5% 11.1% 2016 2017 2018 2019 ΠΑΙΑ Prudential ■GE ■ Etiqa No. 4 in Life/Family (New Business) MAT 59.6% General Insurance and Takaful Market Share (Malaysia) Personal Accident ▲ 3.9% Misc 14.7% 12.8% 12.1% 11.5% 12.2% Total General 22.6% 10.7% 10.6% No. 1 in General Insurance and 10.6% 10.2% Takaful Total Life/Family & 8.2% 8.0% 7.9% 7.6% General 14.2% (Gross Premium) 7.9% 8.0% 7.3% 7.6% 0 500 1,000 1,500 2,000 2,500 2016 2017 2018 2019 RM Million Etiqa Allianz HL-MSIG AmGeneral *Net Adjusted Premium (NAP) = Life/Family Adjusted Premium (100% Regular Premium +10% Single Premium/Credit/Group)+ Net Written Premium (General) Note: Market Share is for period Apr - Mar of every year (Source: LIAM / ISM Statistics) Profit Before Tax Total Assets +76.1% YoY +9.5% YoY 528.2 166.7 38.8 RM million 299.9 35.5 23.2 120.0 110.8 250.7 RM billion 156.7 1H FY2018 Life/Family ■General 1H FY2019 Shareholder's Fund Note: Net Adjusted Premium, Profit Before Tax and Total Assets are presented at EIH Group level 45 Jun 18 Jun 19 Maybank#47Maybank Humanising Financial Services MALAYAN BANKING BERHAD 14th Floor, Menara Maybank 100, Jalan Tun Perak 50050 Kuala Lumpur, Malaysia Tel (6)03-2070 8833 www.maybank.com 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.