Investor Presentaiton

MORGAN STANLEY BANK ASIA LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020 24. FINANCIAL RISK MANAGEMENT (CONTINUED) Credit risk (continued) Credit quality Exposure to credit risk by internal rating grades Internal credit ratings, as below, are derived using methodologies generally consistent with those used by external agencies: Investment grade: AAA - BBB Non-investment grade: BB - CCC Default: D The table below shows gross carrying amount and, in the case of unrecognised financial instruments, nominal amounts by internal rating grade. All exposures subject to ECL are Stage 1, unless otherwise shown. Investment grade At 31 December 2020 AAA AA A BBB Non- Investment Unrated (¹)/ Total Net of ECL US$'000 Default Grade Subject to ECL: Cash and short term deposits 8,101 115,270 1,114,334 Loans and advances 18,838 214,782 162 1,256,705 3,223,441 16 3,438,239 1,256,705 3,438,202 Investment securities 2,614,145 Trade and other receivables 208 2,622,454 115,270 2,579 85,159 1,202,072 88 3,278 233,708 3,226,881 16 2,616,724 88,733 7,400,401 2,616,724 88,733 7,400,364 Not subject to ECL: Trading financial assets: derivatives Secured financing 1,709 582,265 583,974 Unrecognised financial instruments not subject to ECL: Unsettled securities purchased under agreements 1,709 1,709 582,265 582,265 583,974 583,974 40 40

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