#1PUBLIC BANK Investor Presentation September 2023 Financial Results www.publicbankgroup.com#29M 2023 Financial Highlights Sustaining a double-digit ROE of 13.1% and healthy balance sheet Profit before tax (RM'bil) ■ Higher profitability in 9M Q3 2023, underpinned by growth in non-interest income and lower loan loss allowances ↑ 2.6% ↑3.4% ■ 6.3 6.5 2.1 2.2 Above-industry loans and deposits growth 9M Q3 2022 9M Q3 2023 Q2 2023 Q3 2023 Net profit (RM'bil) ↑ 14.3% ↑5.1% 1.7 5.0 1.6 4.4 ■ Normalised net interest margin of 2.22% ■ Credit cost remained low at 2 basis points ■ Prudent level of loan loss coverage at 186.9% ◉ Healthy capital and liquidity position ↑5.9%* 376.9 393.6 Of which: NIM Cost-to-income Net ROE 9M Q3 2022 9M Q3 2023 Q2 2023 Q3 2023 ratio Gross impaired loans ratio 33.7% Gross loans (RM'bil) Domestic operations ↑5.7%* 13.1% 0.58% 2.22% Dec-22: 31.5% Dec-22: 2.39% 352.1 367.2 Dec-22: 12.8% Dec-22: 0.42% Loan loss Dec-22 Sep-23 Dec-22 Sep-23 Credit cost coverage ratio ratio Liquidity coverage ratio Total capital ratio Customer deposits (RM'bil) ↑4.7%* Domestic operations 186.9% 17.4% 394.7 408.6 Of which: 0.02% 131.4% ↑4.6%* 367.1 379.7 Dec-22: 272.0% Dec-22: 17.6%" Dec-22: 0.10% Dec-22: 127.7% Dec-22 Sep-23 Dec-22 Sep-23 * Annualised growth π After deducting interim dividends declared subsequent to end of period/year 2#3Income Statement 9M Q3 9M Q3 (RM'mil) y-o-y Q2 2023 Q3 2023 q-o-q 2022 2023 Net interest income 6,709.4 6,755.4 0.7% 2,210.6 2,285.4 3.4% Profitability Net income from Islamic banking 1,265.6 1,203.3 -4.9% 395.4 410.7 3.9% business Non-interest income 1,813.0 1,873.8 3.4% 605.3 621.9 2.7% Higher 9M Q3 Net income 9,788.0 9,832.5 0.5% 3,211.3 3,318.0 3.3% 2023 profitability from non- Other operating expenses (3,195.1) (3,313.2) 3.7% (1,098.3) (1,120.7) 2.0% Operating profit 6,592.9 6,519.3 -1.1% 2,113.0 2,197.3 4.0% Loan loss allowance interest income (275.5) (59.7) -78.3% (24.2) (34.0) 40.4% growth and Other allowances (7.1) 5.6 >-100% 3.3 0.6 83.0% lower loan loss Share of profit/ (loss) after tax of allowance equity accounted associated (0.2) 6.0 >100% 3.4 2.8 -16.8% companies Profit before tax 6,310.1 6,471.2 2.6% 2,095.5 2,166.7 3.4% Net profit attrib. to shareholders 4,405.8 5,033.9 14.3% 1,618.6 1,701.3 5.1% Earnings per share (sen) 22.70 25.93 14.2% 8.34 8.76 5.0% 3#4Net Interest Income & Margin Easing net interest margin compression 2.58 2.42 2.28 2.26 2.15 2.18 2.24 2.29 2.26 2.18 2.21 Net Interest and Finance Income (RM'mil) Net Interest Margin (%) 2,816 2,675 2,401 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 9M Q3 2023 Year Average NIM 2.22% 2.39% 2.22% 4#5Unit trust income (RM'mil) 9M Q3 9M Q3 (RM'mil) Composition y-o-y 2022 2023 270.1 y-o-y: 7.8% q-o-q: 3.6% 279.8 Non- Interest Income Net fee and commission 259.7 1,442.2 1,462.4 1.4% Q3'22 Q2'23 Q3'23 - Of which: Unit trust income 43% 812.9 810.5 -0.3% Stockbroking income(RM'mil) Fee & commission income 30% 548.0 552.3 0.8% y-o-y: 39.6% Commendable stockbroking and foreign exchange - Stockbroking income 5% 81.3 99.6 22.5% q-o-q: 5.4% 27.0 28.4 20.4 Net gains and losses on 2% 68.6 36.8 -46.3% financial instruments income growth Other operating income 302.2 374.6 23.9% Q3'22 Q2'23 Q3'23 Of which: - Foreign exchange income 15% 216.9 281.0 29.5% Net gains and losses on financial instruments (RM’mil) - Others 5% 85.3 93.6 9.8% y-o-y: -69.3% q-o-q: >100% Total non-interest income 100% 1,813.0 1,873.8 3.4% 17.6 Non-interest income/Total income 18.5% 19.1% -13.4 5.4 Q3'22 Q2'23 Q3'23 5#6(RM'mil) Segmental Profit Profit before tax by Operating Segments Composition 9M Q3 9M Q3 y-o-y Q2 2023 Q3 2023 q-o-q 2022 2023 Retail operations 46% 3,149.7 2,993.8 -4.9% 947.8 1,004.1 5.9% Hire purchase 9% 544.5 593.8 9.1% 241.4 185.7 -23.1% Underpinned Corporate lending 7% 289.9 441.6 52.3% 147.1 149.3 1.5% by strong Fund Management 9% 580.4 592.8 2.1% 195.0 205.2 5.3% performance in hire purchase Treasury Operations 1% 260.3 101.1 -61.2% 19.7 54.2 >100% and corporate Investment Banking <1% 43.2 28.9 -33.2% 5.4 10.0 85.9% lending 19% Others 962.8 1,232.2 28.0% 383.7 406.3 5.9% Overseas Operations 8% 479.3 487.0 1.6% 155.4 151.9 -2.3% Profit before tax 100% 6,310.1 6,471.2 2.6% 2,095.5 2,166.7 3.4% 9#7Retail Operations Profit impacted by margin compression and higher other operating expenses Retail Operations (RM'mil) Net interest income Non-interest income 9M Q3 2022 9M Q3 2023 y-o-y 4,447.2 4,232.3 -4.8% 560.9 578.3 3.1% Net income 5,008.1 4,810.6 -3.9% Other operating expenses (1,709.9) (1,793.2) 4.9% Allowance for impairment on loans and other assets (148.5) (23.6) -84.1% Profit before tax 3,149.7 2,993.8 -4.9% Loans & Deposit-taking (RM'bil) Gross Impaired Loans (RM'mil) 0.32% 0.24% 0.25% 288.2 294.1 308.5 829.0 239.2 251.0 259.3 583.5 623.4 2021 2022 Gross Loan ■Deposit Sep-23 2021 2022 Sep-23 Gross Impaired Loans Gross Impaired Loans Ratio 7#8Hire Purchase Corporate Lending 9M Q3 9M Q3 9M Q3 9M Q3 (RM'mil) y-o-y (RM'mil) y-o-y 2022 2023 2022 2023 Net interest income 646.1 692.4 7.2% Net interest income 441.7 449.6 1.8% Hire Non-interest income 1.5 1.6 9.1% Non-interest income 16.1 19.6 21.7% Purchase and Net income 647.6 694.0 7.2% Net income 457.8 469.2 2.5% Corporate Lending Other operating expenses (Allowance)/Writeback of allowance for impairment on loans and other assets Profit before tax (190.7) (206.1) 8.1% Other operating expenses (14.3) (15.8) 10.1% 87.6 105.9 20.9% 544.5 593.8 9.1% (Allowance)/Writeback of allowance for impairment on loans and other assets Profit before tax (153.6) (11.8) -92.3% 289.9 441.6 52.3% Gross Loans (RM'bil) Gross Loans (RM'bil) Hire purchase profit growth continued on upward trajectory; 63.0 58.3 53.4 2021 2022 Sep-23 44.3 41.4 42.2 2021 2022 Sep-23 Higher corporate Gross Impaired Loans (RM'mil) Gross Impaired Loans (RM'mil) lending 0.99% 1.00% GIL ratio profitability 0.26% GIL ratio 0.25% 0.25% 0.25% amidst lower loan 104.8 418.1 444.5 impairment 138.2 143.7 159.8 2021 2022 Sep-23 2021 2022 Sep-23 8#9Wealth Management Unit trust and bancassurance businesses gained traction Of which: Unit Trust Business Public Mutual Berhad Profit Before Tax (RM'mil) Net Asset Value of Funds Under Management (RM'bil) 104.6 91.8 95.0 23.3 Retail Market Share: 35.1% 21.0 21.2 643.6 | NAV - Other Funds 580.4 592.8 81.3 70.6 74.0 NAV - Equity Funds 9M Q3 2021 9M Q3 2022 9M Q3 2023 2021 2022 Sep-23 Of which: Bancassurance Business Annualised New Premium (RM'mil) 398.8 406.7 313.4 182.6 205.3 102.6 2H 1H 216.2 201.4 210.8 2021 2022 9M Q3 2023 6#109M Q3 9M Q3 (RM'mil) Composition y-o-y Q2 2023 Q3 2023 q-o-q 2022 2023 Personnel costs 72% 2,295.0 2,392.9 4.3% 793.9 811.5 2.2% Other Establishment costs 18% 574.7 614.7 6.9% 204.5 208.6 2.0% Operating Expenses Marketing expenses 3% 88.8 86.4 -2.7% 30.1 28.4 -5.8% Administration and general expenses 7% 236.6 219.2 -7.3% 69.8 72.2 3.5% Total other operating expenses 100% 3,195.1 3,313.2 3.7% 1,098.3 1,120.7 2.0% Efficient CIR through prudent cost management Industry: 48.1% 34.3% 35.2% 31.7% 32.6% 33.7% 2,834 2,918 3,004 3,195 3,313 9M Q3 2022 9M Q3 2023 9M Q3 2019 9M Q3 2020 9M Q3 2021 Total Other Operating Expenses (RM'mil) Cost-to-income ratio 10#11Loan Growth Loans - Outstanding Balance and Market Share Loans - By Segment 17.4% 17.4% 17.6% Others, 376.9 393.6 <1% I Group Loan (RM'bil) 358.0 352.1 367.2 Domestic Loan (RM'bil) 334.6 Domestic Loan Market Share Overseas Operations, 7% Corporate Lending, 11% Sep-23 RM393.6 bil 2021 2022 Sep-23 3.6% 5.3% 5.9%* Domestic Loan Growth 3.4% 5.2% 5.7%* Hire Purchase, 16% Domestic Industry Average 4.6% 5.7% 4.1%* Commendable loan growth supported by residential property financing, hire purchase and SME financing Gross Loan in Domestic Operations Group Loan Growth Residential properties 20.5% Retail Operations, 66% 20.6% 20.5% Commercial properties 34.2% 33.4% 32.9% 29.9% Hire purchase 30.2% 30.5% ↑6.4%* Industry: 7.0%* Industry: 4.8%* Of which, financing to Domestic SMEs Industry: 9.4%* ↑2.5%* 141.2 151.7 159.0 ↑1.5%* ↑10.8%* 78.9 80.2 81.7 67.9 67.2 67.9 53.4 58.3 63.0 2021 2022 Sep-23 2021 Domestic Loan (RM'bil) 2022 Sep-23 2021 2022 Sep-23 2021 2022 Sep-23 Market Share * Annualised growth 11#12Asset Quality Sound asset quality with prudent loan loss coverage Group gross impaired loans Residential properties Domestic Operations Commercial properties Transport vehicles 0.58% 0.42% 0.31% Industry: 1.72% 0.30% 0.56% 0.62% 0.22% 0.25% 0.25% 0.25% 0.21% 0.39% 0.35% 0.20% 0.26% 2,282 1,584 1,102 2021 2022 Sep-23 Of which: 2021 2022 Sep-23 484 455 502 281 323 132 145 160 177 2021 2022 Sep-23 2021 2022 Sep-23 | Gross Impaired Loans (RM'mil) -Group Gross Impaired Loans Ratio (%) -Domestic Impaired Loans Ratio (%) Loan loss coverage (include regulatory reserve) 383.2% Industry: 91.2% 291.8% 360.7% Ageing analysis of total domestic loans % Ageing Profile of Past Due Loan / Financing Loan loss coverage 215.4% 272.0% Pre-pandemic At present 186.9% Credit cost ratio 0.34% 2018 2019 2022 Sep-23 0.10% 0.02% 1 mth to 2.6% 2.2% 1.2% 1.2% <2 mths Loan impairment 396.0 allowances 324.4 2 mths to (RM'mil) 282.3 1.0% 1.0% 0.6% 0.3% <3 mths 198.5 99.7 79.9 95.9 90.0 Impaired 0.4% 0.4% 0.3% 0.4% 1.5 24.2 34.0 Loans 2021 2022 IQ1 Q2 Q3 Q4 2023 Total >1 mth 4.0% 3.6% 2.1% 1.9% 12#13Deposit Growth Deposit Outstanding Balance and Market Share 16.2% 16.3% 16.5% Deposit - By Type 380.4 394.7 408.6 Money Market ■Group Deposit (RM'bil) Deposit and 352.6 367.1 379.7 Others, 14% Domestic Deposit (RM'bil) - Domestic Deposit Market Share Sep-23 RM408.6 bil Fixed Deposit, 57% 2021 2022 Sep-23 Solid funding position Group Deposit Growth 4.0% 3.8% 4.7%* Demand Deposit, 17% Domestic Deposit Growth 4.5% 4.1% 4.6%* Domestic Industry Average 6.3% Savings Deposit, 12% 5.9% 4.5%* Total Deposit in Domestic Operations Fixed Deposit Demand Deposit Savings Deposit 18.9% 18.2% 18.9% 12.5% 12.7% 12.6% 18.7% 19.1% 18.9% 19.0%* Industry: 5.7%* Industry: 1.8%* Industry: -2.2%^ 10.5%* ↓3.3%^ 214.3 192.5 200.7 59.9 63.4 63.6 45.6 43.9 42.5 2021 2022 Sep-23 2021 2022 Sep-23 2021 2022 Sep-23 Domestic Deposit Market Share * Annualised growth ^ Negative growth as at 30 September 2023 13#14Capital Adequacy Industry Liquidity Risk Indicators Industry Total capital: LCR: 17.7% 17.6% 17.1% 17.4% 18.1% 138.0% 151.5% 16.8% 133.5% 131.4% 127.3% 127.7% Capital & 14.6% 14.6% 14.5% Industry Tier 1: Industry LTF: 14.0% 15.0% 13.5% 88.9% 90.2% 90.1% 91.4% 92.5% 82.5% Liquidity Position 14.5% 14.6% 14.5% 14.0% 13.5% Industry Industry CET I: 79.2% 80.0% 80.0% 81.1% 81.9% LTFE: 14.5% 313.7 326.4 71.9% 292.3 298.9 277.9 Resilient balance sheet underpinned by healthy capital and liquidity position 2019 2020 2021 2022 Risk-weighted Assets (RM'bil) Sep-23 Basel III Requirement* Common Equity Tier I Capital 7.5% Tier I Capital 9.0% Total Capital 11.0% 2019 2020 2021 2022 Sep-23 * Gross Loan to Fund Ratio -Gross Loan to Fund and Equity Ratio -Liquidity Coverage Ratio The Basel III capital ratio requirements are inclusive of: (i) 2.5% capital conservation buffer (ii) Domestic Systemically Important Bank (DSIB) buffer of 0.5% imposed on PBB as announced by BNM, which was effective on 31 Jan 2021 Note: PBB did not opt for the BNM transitional arrangement on capital relief 14#15Laos 2021 2022 Sep-23 Malaysian Operations Public Bank Domestic 262 260 260 Business Overseas 7 7 7 Delivery Channel Public Islamic Bank 2 4 4 Public Mutual 28 28 28 Public Investment Bank 1 1 1 Hong Kong & China Operations Public Finance 43 Public Bank (HK) - Hong Kong - China 35 32 225 42 32 Winton (B.V.I) Group 3 3 2353 40 30 Indo-China Operations Cambodia Public Bank Public Bank Vietnam People's Republic of China Hong Kong Vietnam Cambodia Malaysia >19,000 Staff >2,000 PB e PBe Internet Banking Sri Lanka PB enterprise Internet Banking PB engage Mobile Banking 29 32 31 330 31 32 ATM 32 34 443 445 444 Self Service Terminals 15#16Strategic Direction Driving responsible growth for a sustainable future Delivering sustainable returns to shareholders Increase profitability by focusing on areas of strength Focus on synergistic growth Preserve asset quality Maintain cost discipline Uphold strong corporate governance ✰ Enhance management Maintain an appropriate balance between optimising returns to shareholders and upholding prudent capital management capital strength and risk ■ Compliance with regulatory requirements Maintenance of strong external credit ratings by domestic and international rating agencies STRATEGIC PRIORITIES Enhancing customer experience ❖ Solidify customer loyalty and trust ■ Uphold service quality ■ Ethical banking Enhance data security Digital transformation Embrace digital transformation to meet customers' evolving needs Developing employees ✰ Build capabilities for the future Nurture talents Employee health and safety, and well-being ■ Diversity and inclusion Increased focus on sustainability Financial inclusion and accessibility Expand financial inclusion and support the community's financial needs ✰ Community contribution Contribute to nation building and nurture future generations ■ Strengthen communities through volunteerism and charitable donations ✰ Transition to a sustainable future ■ Support the transition to a climate resilient future Key Value Drivers Key innovative initiatives are benchmarked not only on creating value and growth opportunities but also in line with ESG, focusing on the Bank's areas of strength while leveraging on the latest technology to gain long term competitive advantages. Lending Business Deposit-Taking Business Business Pillars Non-interest Income Corporate Banking Treasury Operations Islamic Banking Business Investment Banking Overseas Operations Sustainability Strategies The Bank is committed to deliver sustainable growth through responsible ESG practices to maximise stakeholders' value. Protecting the Environment ESG Focus Areas Proficient Employees Prosperous Customers and Communities Principled Conduct 16#17Appendix RM'mil 2019 2020 2021 2022 Sep-23 Operating profit 7,283 7,403 8,579 9,203 6,519 Profitability Profit before tax 7,134 6,285 7,367 8,831 6,471 Net profit 5,512 4,872 5,657 6,119 5,034 Earnings per share (sen) X 28.39 25.10 29.14 31.53 25.93 Shareholder Net assets per share (RM) X 2.25 2.43 2.48 2.59 2.74 Value Dividend per share (sen) X 14.6 13.0 15.2 17.0 N/A Dividend payout ratio (%) 51.4 51.8 52.2 53.9 N/A Total assets 432,831 451,257 462,739 493,263 508,203 Gross loan Domestic loan Deposit from customers Domestic deposit 330,468 345,651 307,164 353,340 365,871 325,199 358,027 376,892 393,580 323,728 334,646 352,065 367,170 380,394 394,719 408,627 337,458 352,615 367,144 379,748 Key Balance Core customer deposit 294,646 310,144 325,770 335,570 349,240 Sheet Data Shareholders' equity 43,594 47,248 48,163 50,179 53,211 Common equity Tier I capital" 37,406 40,778 43,428 45,648 47,285 Tier I capital 37,564 40,935 43,587 45,806 47,346 Total capital 46,571 50,119 52,878 55,256 56,947 Risk-weighted assets 277,906 292,284 298,890 313,678 326,387 Π After deducting interim dividends declared subsequent to end of period/year X The comparatives had been adjusted to reflect the bonus issue of 4 bonus shares for every 1 existing ordinary share which was completed on 29 January 2021 17#18Appendix % 2019 2020 2021 2022 Sep-23 Industryb Net interest margin on yielding assets 2.15 1.95 2.22 2.39 2.22 N/A Net return on equity* 13.6 11.2 12.4 12.8 13.1 N/A Profitability Ratios Pre-tax return on average assets 1.7 1.4 1.6 1.8 1.7 1.3 Cost to income ratio 34.4 34.6 31.6 31.5 33.7 48.1 Non interest income/Total income 21.6 24.9 20.9 18.0 19.1 33.1 Gross loan to fund ratio~ 88.9 90.2 90.1 91.4 92.5 82.5^ Liquidity Gross loan to fund and equity ratio~ 79.2 80.0 80.0 81.1 81.9 71.9^# Liquidity coverage ratio 133.5 138.0 127.3 127.7 131.4 151.5 Gross impaired loans ratio 0.49 0.36 0.31 0.42 0.58 1.72 Asset Quality Loan loss coverage ratio 124.1 227.7 360.7 272.0 186.9 91.2 Credit cost ratio 0.05 0.33 0.34 0.10 0.02 0.14 Common equity Tier I capital ratio™ 13.5 14.0 14.5 14.6 14.5 14.5 Capital Tier I capital ratio™ 13.5 14.0 14.6 14.6 14.5 15.0 Adequacy Total capital ratio" 16.8 17.1 17.7 17.6 17.4 18.1 Domestic market share Commercial property financing 35.0 35.0 34.2 33.4 32.9 N/A Residential property financing 19.9 20.0 20.5 20.6 20.5 N/A Market Share Passenger vehicle financing 29.4 29.8 29.9 30.2 30.5 N/A Domestic loans 17.3 17.7 17.4 17.4 17.6 N/A Domestic deposits 16.5 16.5 16.2 16.3 16.5 N/A + Based on average equity adjusted with proposed dividend, if any ~ Gross loans exclude loans/financing sold to Cagamas. Funds include deposits from customers and debt securities issued and other borrowed funds Λ Loans exclude loans extended to banking institutions # Equity comprises ordinary and preferred shares and retained earnings π After deducting interim dividends declared subsequent to end of period/year b Based on latest available industry statistics 18#19E PUBLIC BANK Investor Relations Contact Ms. Chang Siew Yen Senior Chief Operating Officer +(603) 2176 7461 [email protected] Mr. Chong Soo Loong Director, Corporate Planning, Economics & Sustainability Management +(603) 2177 3152 [email protected] Ms. Yik Sook Ling Chief Financial Officer +(603) 2176 6186 [email protected] Head Office Menara Public Bank 146, Jalan Ampang 50450 Kuala Lumpur Website: www.publicbankgroup.com Disclaimer. The materials and information in the presentations and other documents are a summary only, do not purport to contain all of the material information regarding Public Bank and are qualified in their entirety by reference to our public disclosure. You may not rely on these materials as providing a complete or comprehensive analysis of Public Bank. Certain statements in this presentation constitute forward-looking statements. These forward-looking statements are based on management's current views concerning future events, and necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Public Bank does not assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. This presentation and the information it contains are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice in any jurisdiction whatsoever. Nothing contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever, nor does it constitute a recommendation regarding any of Public Bank's securities or financial instruments. Public Bank's securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act") or under any U.S. state securities laws and, subject to certain exceptions, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.