#1F FY2022 RESULTS ANALYST PRESENTATION 30 AUGUST 2022 Hong Leong Bank The information contained in this presentation is strictly confidential for information of the intended recipient(s) only. The information may not be reproduced, redistributed or transmitted, directly or indirectly by any means to any other person or published electronically or via print, in whole or in part, for any purpose without our prior written permission. When no longer needed, it should be immediately deleted from all electronic storage devices and/or any other retrieval system of any nature and any hardcopies made should be destroyed. The intellectual property in the presentation belongs to HLBB unless specifically indicated otherwise.#21 Financial Highlights: FY2022 Hong Leong Bank HLB FY2022 ended 30 June 2022 2#3Key Financial Highlights Stronger business performance led by robust loan/financing expansion • Total Income & Opex Improved topline - achieving positive JAWS and a commendable CIR 38.0% Profit Before Associate Contribution • Stronger underlying performance led by expansion in our loan/financing portfolio and lower loan impairment allowances . 37.5% CIR 3,336 RM'mil RM'mil 22% Total Income 2,735 A2% 5,467 5,597 Opex (2,078) (2,098) (1% FY2021 FY2022 FY2021 FY2022 GIL & Coverage Ratio Gross Loans/Financing in loans/financing underpinned by mortgages, SME and commercial business banking . Asset quality is solid, with sufficient loan impairment coverage • Growth 317% 282% 247% LIC 212% (including security value) 0.46% 0.49% FY2021 FY2022 RM'bil 168.2 155.8 8%) FY2021 FY2022 Hong Leong Bank Profit Before Tax Healthy profitability in line with the economic recovery traction 4,367 RM'mil 26% 3,471 FY2021 Deposits FY2022 • Healthy deposit growth led by CASA expansion HLB FY2022 ended 30 June 2022 RM'bil 197.3 183.3 8% FY2021 FY2022 3#4Community Support Doing our part in helping customers in need during these difficult times "We're Here to Help You" Various HLB initiatives that have helped customers / community Hong Leong Bank HLB Payment Relief Assistance Plans ("PRAP") Approved PRAP totaling RM35.4 billion to close to 188,000 retail, SME and corporate customers during the financial year Flood and pandemic related aids, food and grocery support Provided approximately RM610,000 in funds towards various initiatives, which positively impacted approximately 41,000 people E 377 וויויו Waiver of interbank cash withdrawal fee at ATMs Assisting customers to regularise their loans with interest/profit waiver A Car Surrender Programme 자 Various waivers of late fees, some accrues interest/profit/collections fees waived Credit Card Conversion to term loans at lower interest rates Waiver of late payment fees and a hassle-free PRAP application process for retail borrowers Absorbed Stamp Duty on FX Λ contracts for customers Waiver of late interest/profit & fees for SME clients Waiver of Corporate Internet Banking monthly subscription fees and token fees Savings to customers of RM129 million for FY2021 & FY2022 HLB FY2022 ended 30 June 2022 4#5HLB Payment Relief Assistance Plans ("PRAP") Continued to help affected customers to facilitate recovery RM'bil 23.0% 20.9% 35.8 10.0% 33.5 2.4 .4.5% * 3.2% 1.6 2.6% 6.9 6.0 15.6 1.2 7.4 3.1 0.6 5.4 26.5 25.9 4.3 0.8 0.6 0.4 0.4 11.3 0.2 5.9 4.4 3.7 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jul-22 Retail SME Corporate % of Gross Loans Breakdown of Retail PRAP: In RM'bil Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jul-22 Mortgage 9.8 22.2 21.5 4.9 3.7 3.1 Auto Loan 1.3 3.7 3.7 0.8 0.6 0.5 Personal Loan 0.2 0.5 0.6 0.2 0.1 0.1 Others <0.1 0.1 0.1 <0.1 <0.1 <0.1 * Computed based on gross loans as at 30 June 2022 position Hong Leong Bank Of which: subsequent reapplications Retail RM1.0 billion RM2.4 billion 2nd PRAP 3rd PRAP & above SME & Corporate <RM0.1 billion RM0.4 billion HLB FY2022 ended 30 June 2022 2nd PRAP 3rd PRAP & above LO 5#6Management Guidance Met all KPIs set for the financial year Target FY2022 Hong Leong Bank 6% to 7% >2.10% ≤40% <0.8% 10 bps >10.5% -30% Gross Net Loan Growth Interest Margin Cost-to- Income Ratio Gross Impaired Loan Ratio Net Credit Cost Return on Equity CASA Mix Achieved FY2022 8.0% 2.14% 37.5% 0.49% 10 bps 10.9% 33.5% HLB FY2022 ended 30 June 2022 6#7Profit & Loss Strong underlying performance on the back of top-line growth and robust associates contribution Profit After Tax RM'mil 2,861 308 178 21 295 491 Hong Leong Bank 3,599 Incremental tax impact } to profitability 467 3,289 PAT FY2021 Net Interest Non Interest Income Income Opex Loan & Other Associates Impairment Contribution Allowances Tax PAT FY2022 Adjusted PAT FY2022 Additional tax expense Improved top-line performance attributable to solid loan growth and effective funding cost management Lower impairment allowances mainly due to improved asset quality metrics Robust growth in associates contribution • Commendable performance with a strong underlying profit after tax RM'mil Total income Operating expenses FY2021 FY2022 Change % (YoY) . 5,467 5,597 2.4% (2,078) (2,098) 1.0% Operating profit before allowances 3,389 3,499 3.2% Allowances for loans and other impairments (654) (163) -75.1% Profit before associates contribution 2,735 3,336 22.0% • Share of profits from associates 736 1,030 40.0% Profit before tax 3,471 4,367 25.8% Profit after tax 2,861 3,289 15.0% Underlying profit after tax* 2,861 3,599 25.8% Note:* Excluding one-off tax provision of RM310 mil as at FY2022 for "Cukai Makmur" as announced in the Budget 2022 HLB FY2022 ended 30 June 2022 7#8Net Interest Income & NIM Maintaining a healthy NIM with effective management of funding cost 2.21% 2.20% 2.19% 2.15% 2.13% 2.10% RM'mil 1,140 1,176 1,162 1,121 1,159 Hong Leong Bank 2 bps 2.16% y-o-y 2.14% 2.14% Stable y-o-y 4,618 7.2% RM'mil y-o-y 4,310 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY2021 FY2022 Net interest income NIM NIM (Ex Mod-Loss) Net interest income NIM NIM (Ex Mod-Loss) There is no impact to HLB lending rate arising from the introduction of standardised base rate starting from 1 Aug 2022 HLB FY2022 ended 30 June 2022 8#9Hong Leong Bank Non-Interest Income Consistent income stream from wealth management and card fees, cushioning the lower trading and investment income RM'mil 21.2% 17.5% 1,157 86 979 63 500 307 Credit Card Related Fees FY2021 RM174 mil FY2022 RM194 mil 11.4% 570 610 Fee income: of which Wealth Management Income FY2021 RM181 mil FY2022 RM200 mil 10.4% FY2021 FY2022 Islamic and others Fee Income I Trading, Investment & Forex Non Interest Income ratio HLB FY2022 ended 30 June 2022 9#10Operating Expense Improved CIR driven by higher top-line and strategic cost management Domestic CIR 35.9% 35.4% 38.0% 37.5% RM'mil 2,078 2,098 227 253 150 171 509 521 Hong Leong Bank Personnel cost 55% Marketing 8% Operating Expenses Admin & general 12% O Establishment 25% FY2022 Optimised CIR - hovering at similar levels q-o-q 40.0% 36.8% 37.4% 38.4% ... 37.4% 1,192 1,154 RM'mil 560 532 507 513 518 FY2021 Personnel cost Marketing CIR FY2022 Establishment Admin & general Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 I Operating expenses ...CIR HLB FY2022 ended 30 June 2022 10#11Loans/Financing Continued growth momentum led by expansion in key segments RM'mil 5,302 (+5.1%) 4,532 (+10.8%) 2,520 (+27.3%) 155,822 Hong Leong Bank 51 57 8.0% 168,234 y-o-y Total Loans FY2021 Retail Business & Corporate International Operations Modification Loss Total Loans FY2022 Domestic Residential FY2021 FY2022 FY2021 6.8% Business Properties RM77.2 bil RM82.4 bil FY2022 RM48.8 bil RM55.2 bil 13.3% Singapore FY2021 RM6.2 bil FY2022 RM7.6 bil 23.2% Enterprises Transport Vehicle FY2021 FY2022 FY2021 5.3% SME RM16.8 bil RM17.7 bil FY2022 RM26.0 bil RM30.1 bil 15.7% Vietnam FY2021 RM1.2 bil FY2022 RM1.7 bil 39.3% Community Unsecured (CC+PL) FY2021 RM4.9 bil FY2022 RM5.1 bil FY2021 5.1% SME Banking FY2022 RM9.8 bil RM11.5 bil 17.0% Cambodia FY2021 RM1.9 bil FY2022 RM2.5 bil 32.0% HLB FY2022 ended 30 June 2022 11#12Asset Quality Upholding solid asset quality with sufficient loan/financing impairment coverage Gross Impaired Loans/Financing (GIL) 1.62% ... 1.64% 1.59% ..... 1.54% 1.43% Hong Leong Bank Loan/Financing Impairment Coverage (LIC) 317% 282% 212% 0.87% 188% 247% 0.78% 0.61%. 159% 212% 0.46% 0.49% RM'mil 142% 118% 89% 1,126 1,071 890 98% 820 717 91% 85% 113% 109% FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 GIL GIL ratio • Industry GIL Ratio LIC LIC (including security value) Industry LIC HLB FY2022 ended 30 June 2022 12#13Asset Quality Indicators remained healthy across all loan/financing portfolios Malaysia Group 0.64% 0.48% 0.51% 881 806 707 FY20 FY21 FY22 Residential Properties Transport Vehicles Overseas 0.11% 0.12% 0.12% 14 11 8 FY20 FY21 FY22 SME Hong Leong Bank 0.47% 0.35% 0.38% 0.42% 0.43% 1.33%.. 1.25% 1.10% 341 315 0.20% 376 267 300 287 71 72 FY20 FY21 FY22 FY20 FY21 GIL RM'mil 35 FY22 FY20 FY21 FY22 GIL ratio % HLB FY2022 ended 30 June 2022 13#14Deposit Growth momentum driven by strong CASA expansion Jun-22 Market Share: 8% 7.6% y-o-y CASA Jun-22 Market Share: 7% Fixed Deposits Hong Leong Bank Jun-22 Market Share: 8% FY2021 FY2022 11.5% RM59.2 bil RM66.1 bil FY2021 FY2022 RM91.9 bil RM93.9 bil 2.1% 197,292 RM'mil 183,290 CASA Ratio 33.5% 173,493 163,070 157,414 FY18 FY19 FY20 FY21 FY22 Individuals Business Enterprises Jun-22 Market Share: 11% Jun-22 Market Share: 8% FY2021 FY2022 RM93.8 bil RM99.4 bil 6.0% FY2021 FY2022 RM85.1 bil RM92.4 bil 8.7% Individual Deposit Mix 50.4% Note: Deposit figures are based on group, but market share data is based on domestic only; Business enterprise deposits include FI HLB FY2022 ended 30 June 2022 14#15Liquidity & Capital Robust liquidity and capital positions - supporting business growth continuously Loan-to-Deposit Ratio (LDR) Capital Adequacy^ Hong Leong Bank 16.7% 89.2% 88.6% 87.6% ....... 87.0% 86.3% 16.2% 15.7% 15.7% 15.4% 14.5% 14.1% 13.5% 13.6% 13.3% 13.6% 13.4% 82.0% 84.4% 83.5% 83.9% 83.5% 13.0% 13.1% 12.7% FY2018 FY2019 FY2020 FY2021 FY2022 ...Industry LDR ...HLB LDR Note: Industry data derived from banking system's commercial banks plus Islamic banks only 145% 127% 85% 73% Liquidity Coverage Ratio (LCR) Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 ■CET1 ■Tier 1 Total Capital Ratio Net Stable Funding Ratio (NSFR) Loan to Funds Ratio (LTF) Loan to Funds & Equity Ratio (LTFE) Note: Capital base & ratio after proposed dividends HLB FY2022 ended 30 June 2022 15#16Shareholder Value Sustainable returns on solid underlying performance Return on Equity, Return on Assets & EPS Declared dividend 11.8% 10.4% 10.9% 9.5% 10.1% 37% 38% 1.17% 1.26% 1.43% 1.25% 1.34% === 44 34 38 Q4FY21 Q3FY22 EPS 48 161 140 Q4FY22 FY2021 ROE ROA 50 50 Hong Leong Bank 36% 35% 30% 36 FY2022 FY 18 FY19 FY20 Net DPS (sen) 50 FY21 55 FY22 Dividend Payout (on actual reported PAT) HLB FY2022 ended 30 June 2022 16#17Performance of Associated Company: Bank of Chengdu Co., Ltd. Financial Highlights for H1 ended 30 June 2022 (unaudited) Operating Income Profit After Tax 9,995 RMB'mil 8,541 ▲17% Hong Leong Bank Robust ROE 18.6% 4,457 RMB'mil 3,389 32% Solid Cost-to-income Ratio 22% H1FY21 H1FY22 H1FY21 H1FY22 Gross Loan GIL ratio Prudent Coverage 474% Ratio 455,748 RMB'mil 343,624 33% 1.10% 0.83% 27bps Healthy Total Capital Ratio 12.1% H1FY21 H1FY22 H1FY21 H1FY22 HLB FY2022 ended 30 June 2022 17#18Agenda 2 Closing Remarks Hong Leong Bank HLB FY2022 ended 30 June 2022 18#19Hong Leong Bank FY2022 Key Digital Initiatives Domestic Overseas Enabled Digital Onboarding ➤ Apply@HLB (eKYC) for Retail Customers: CASA ➤ HLB BizBuddy app for Merchants to start accepting payments in minutes ➤ Tablet Onboarding for Sole Prop and Sdn Bhd businesses Rolled out the AppAuthorise function for mobile banking Extended our Product Tracker for Credit Card, Personal Loans, & Mortgages First in Malaysia to launch Auto Loan e-Acceptance Launched our all-new, next-generation digital banking platform for business customers, HLB ConnectFirst Rolled out new Loan Origination System for business clients Collaborate with Grab Holdings to provide flexible short-term loans to drivers through HLBS Enhanced mobile banking in Cambodia with applications for fixed deposit, placements, viewing bank statements Results Six-fold increase in accounts opened through Apply@HLB 85% of all new customers were onboarded digitally, either via Apply@HLB or via iPad Onboarding time for new-to-bank business customers from seven days to as little as 30 minutes 91% of all banking transactions are conducted digitally Asiamoney Best Digital Bank 2021 Digital CX Award Best Customer Insights Initiatives HLB FY2022 ended 30 June 2022 19#20Hong Leong Bank FY2022 Key Sustainability Highlights Socially Responsible Business Environmental Management Workforce Readiness Financed ➤ RM2.4 bil renewable energy projects approved ➤ RM10.8 bil green & affordable mortgages (12.0% of total) ➤ RM484 mil green auto* (3.3% of total) Concluded ➤ RM300 mil socially sustainable securitisation to Cagamas ➤ Issuance of RM900 mil green capital securities Launched HLB Solar Plus Loan/Financing-i for home owners Committed to GHG emissions reduction of 15-25% by 2026, net zero scope 1 & 2 by 2030 and carbon neutral by 2050 Kickstarted ➤ 50,000 mangrove trees rehabilitation project ➤ HLB Earth Hero for junior savers Embedded Sustainability/VBI related KRAs for bankwide employees and senior management remunerations are linked to these KRAS Note: * Green auto refers to hybrid and electric vehicles Targets by FY2025 RM4 bil RE financing approved RM12 bil by FY2023 RM0.5 bil By FY2023 Green & affordable Green auto loans mortgages What's Next ✰ CCPT reporting commenced Compliance with BNM Climate Risk Management and Scenario Analysis TCFD ➤ Basic recommendation within 24 months Stretch recommendation Data collection Required Enhance mortgage and BCB ESG assessment methodology on physical and transition risks Data Collection Required HLB FY2022 ended 30 June 2022 20#21Hong Leong Bank Closing Remarks Strong business performance for the financial year, backed by robust loan/financing growth and solid asset quality ■ Robust top-line performance supported by sustained loan/financing growth and effective management of funding cost. As we focus on various strategic cost management initiatives and digitisation efforts, expenses were tightly controlled and optimised across the quarters with a commendable CIR. ■ Solid asset quality with a stable GIL ratio. ■ Healthy liquidity and capital positions; allowing us to continuously help customers in need and support future business growth. ■ Strong profit contribution from BOCD; remained vigilant to the ongoing headwinds in China. ■ We have achieved a commendable set of results for the financial year amid a challenging backdrop of heightened inflationary pressure and geopolitical uncertainty. HLB FY2022 ended 30 June 2022 21#22Management Guidance Guidance for FY2023 - should continue to see positive momentum in the year ahead FY2022 Actual Hong Leong Bank 8.0% y-o-y 2.14% 37.5% 0.49% 10 bps 10.9% 33.5% Gross Loan Growth Net Interest Margin Cost-to- Income Ratio Gross Impaired Net Credit Cost Return on Equity CASA Mix Loan Ratio Target FY2023 ~7% >2.10% ≤40% <0.75% 10-15 bps -11% >30% HLB FY2022 ended 30 June 2022 22#23Agenda 3 Supplementary Information Hong Leong Bank HLB FY2022 ended 30 June 2022 23#24Key Financials - 5 Years Trend Total Income (RM'mil) 14.4% 6.3% y-o-y 1.1% 2.4% growth -2.4% PAT (RM'mil) Hong Leong Bank 23.0% y-o-y 14.7% 15.0% growth 1.0% -6.4% Resilient top-line 5,467 5,597 3,289 4,840 4,726 4,778 2,638 2,665 2,861 2,495 FY18 FY19 FY20 FY21 FY22 NIM (%) Solid NIM driven by funding cost optimisation 2.14% 2.14% 2.10%. 1.96% • 1.88% FY18 FY19 FY20 FY21 FY22 CIR (%) Overall better performance Positive JAWS attained for FY22 44.3% 44.0% 42.6% 38.0% 37.5% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 HLB FY2022 ended 30 June 2022 24#25Group Performance Hong Leong Bank Change Change Change RM'mil FY2021 FY2022 Q4FY22 (YoY) (YoY) (QoQ) Net interest income 4,310 4,618 7.2% 1,159 1.7% -0.3% Non-interest income 1,157 979 -15.4% 339 76.0% 82.8% Total income 5,467 5,597 2.4% 1,498 12.5% 11.2% Operating expenses (2,078) (2,098) 1.0% (560) 5.2% 8.1% Operating profit before allowances 3,389 3,499 3.2% 938 17.3% 13.1% Allowances for loans and other impairments (654) (163) -75.1% (30) -84.7% -42.0% Share of profits from associate 736 1,030 40.0% 309 40.8% 22.3% Profit before tax 3,471 4,367 25.8% 1,217 47.6% 18.1% Profit after tax 2,861 3,289 15.0% 908 31.6% 15.7% Underlying profit after tax* 2,861 3,599 25.8% Note: *Excluding the one-off tax effect from the "Cukai Makmur" in the announced Budget 2022. HLB FY2022 ended 30 June 2022 25 25#26Highlights of Key KPIs Q4FY21 Q3FY22 Q4FY22 FY2021 FY2022 Net Interest Margin 2.20% 2.15% 2.10% 2.14% 2.14% Non-interest Income Ratio 14.5% 13.8% 22.6% 21.2% 17.5% Cost-to-Income Ratio 40.0% 38.4% 37.4% 38.0% 37.5% ROE 9.5% 10.4% 11.8% 10.1% 10.9% ROA 1.17% 1.26% 1.43% 1.25% 1.34% LDR 83.9% 83.5% 83.5% 83.9% 83.5% Credit Charge (Net) - bps 13 3 2 42 10 Loan Impairment Coverage (LIC) 247% 218% 212% 247% 212% LIC (including security value) 317% 288% 282% 317% 282% CET-1 ratio 13.6% 12.7% 13.4% 13.6% 13.4% Tier-1 ratio 14.1% 13.3% 14.5% 14.1% 14.5% Total Capital Ratio 16.2% 15.4% 16.7% 16.2% 16.7% HLB FY2022 ended 30 June 2022 Hong Leong Bank 26#27HLISB - Key financial highlights Total Net Income Opex & CIR • Subdued performance on the back of higher impairment allowances Higher opex supportive of business growth • 761 RM'mil 699 8% FY2021 FY2022 Gross Financing • Sustained growth momentum led by retail portfolio and SME segments • 36.4 32.7 RM'bil 11% 28.8% 25.8% Hong Leong Bank Profit after Tax and Zakat Consequently, led to lower bottom line for the financial year 395 RM'mil 25% 297 261 237 RM'mil 10% FY2021 FY2022 Deposits Expansion supported by encouraging growth in CASA 38.9 36.6 RM'bil ▲ 6% FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 Capital Adequacy . Total capital position remained healthy HLB FY2022 ended 30 June 2022 15.1% 15.1% FY2021 FY2022 27#28Hong Leong Bank Disclaimer This presentation has been prepared by Hong Leong Bank ("HLB") for selected recipients for information purposes only and the information contained herein has been obtained from sources believed to be reliable. The information contained herein is believed to be correct as of the date of this presentation and is given in summary form and does not purport to be complete. HLB does not make any guarantee, representation or warranty, whether expressed or implied, as to the adequacy, accuracy or completeness or reliability of any such information, opinion or estimate contained and shall not be responsible or liable for any consequences of any reliance thereon by any recipient. Opinions and estimates constitute the judgment of HLB as of the date of this presentation and are subject to change without notice. HLB does not act as any recipient's financial advisor or agent and the information contained herein is not intended to be relied upon as advice to any recipient and should not be construed as an offer or recommendation to buy or sell securities. This presentation does not purport to contain all the information that a prospective investor may require and the information contained herein does not take into account the specific investment objectives, financial situation or particular needs of every recipient hence it may not be appropriate for all persons. Each recipient is responsible to make his or her own independent assessment of the information provided herein and should not treat the information provided as advice relating to investment or related matters. Each recipient should consult his or her own advisers and must make his or her own independent decision regarding any investment. Certain statements contained in this presentation may be statements of future expectations and involve known and unknown risks and uncertainties. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. HLB does not have any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Each recipient should not place undue reliance on forward-looking statements, which is believed to be correct only as of the date of this presentation. The information contained in this presentation is strictly confidential and its contents, views or opinions may not be reproduced, redistributed, transmitted or passed on, directly or indirectly, to any other person or published electronically or via print, in whole or in part, for any purpose. The intellectual property in the presentation belong to HLB unless specifically indicated otherwise. For further information, please visit www.hlb.com.my or contact: Investor Relations: Chow Sheng Wai Head, Corporate Finance & Investor Relations DID: +603 2081 2972 Email: [email protected] THANKYOU HLB FY2022 ended 30 June 2022 28