AmBank Group Results · PDF fileAmBank Group Results Investors Presentation H1FY2011 Results Update 12 November 2010 Cheah Tek Kuang Group Managing Director (Conventional + Islamic)

AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION H1FY2011

AMMB Holdings Berhad

AmBank Group Results

Investors Presentation

H1FY2011 Results Update12 November 2010

Cheah Tek KuangGroup Managing Director

AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION H1FY2011 1(Conventional + Islamic)

AmBank Group History:

• 30+ years of banking franchise

• Top 20 Bursa Saham listing, ranked 176 on globalbanking index

• 3 consecutive years of record performance (FY08-FY10)

• H1FY2011 up 40.7%

FY2011 Performance:

• PATMI growth expectations 25% - 30%

• Staying focused on profitable growth, diversificationand sustainability

Beyond FY2011:

• 2011 national economy expected at a slower pace, GDPcirca 6%

• Well positioned for growth, will continue leveraging onANZ to differentiate

H1FY2011 Highlights


Contents

H1FY2011 Group Financial Performance

Strategy & Outlook

Divisional Performance

Supplementary Information

Executive Summary

Based on half-year limited review 30 September 2010 (H1 FY2011) financial results of banking subsidiaries

→ Economic Update

→ Corporate Information


Maintaining earnings growth momentumP

erf

orm

an

ce

Profit after Tax & MI (PATMI)

ROE

Ris

k, C

apit

al &

Fu

nd

ing

Pro

file

RWCA

Tier 1

Gross Impaired Loans

Gro

wth

Net Lending / Financing

Customer Deposits 1

CASA

LD Ratio 1

EPS(basic, annualised)

92.6%

10.1%

15.7%

N/A

7,611 mil

65,302 mil

60,437 mil

35.5 sen

12.0%

498.4 mil

H1FY10

91.3%

10.0%

16.0%

3.6%

8,777 mil

72,946 mil

66,590 mil

46.7 sen

14.4%

701.2 mil

H1FY11

1.3%

0.1%

0.3%

N/A

15.3%

11.7%

10.2%

31.4%

2.4%

40.7%

Change

ROA 1.13% 1.48% 0.35%

Note 1 : Includes Senior Notes RM3.39 bil & credit-linked notes RM0.17bil issued

FY09 FY10

88.8%

9.7%

15.2%

N/A

6,755 mil

64,132 mil

56,948 mil

31.6 sen

11.7%

860.8 mil

91.7%

10.3%

15.8%

3.8%

8,372 mil

70,294 mil

64,426 mil

34.7 sen

11.5%

1,008.6 mil

1.04% 1.13%


Staying focused on profitable growth, diversification and sustainability

Staying Ahead

Strong H1 results

Higher revenues and lower

allowances

Good loans & CASA growth

FRS139 adopted under BNM transition

arrangements since April 2010

Implemented customer segmentation

and focus across all divisions

Well diversified Divisional contributions

Sound and consistent contributions from Retail, Business, and Corporate & Institutional Banking Divisions

Diversified portfolios yielding higher profits in Life Assurance, General Insurance and Markets

Good Investment Banking pipeline

Improved risk and financial disciplines

Proactive risk management

Balance sheet positioned for rising interest rates

Implemented new FTP* and FRS disciplines

Enhancing ALM disciplines and preparing for Basel III

FY 2011 Priorities

FY2011 : Profitable growth, diversification & rebalancing Faster non-interest income & CASA growth Taking opportunities in growth plans

MTA : Malaysia’s Preferred Banking Group with International Connectivity Customer satisfaction Sound financial performancesWell diversified and sustainable growth

* FTP = funds transfer pricing

AMBANK GROUP – INVESTOR RELATIONS – PRESENTATION H1FY2011 5(Conventional + Islamic) Note 1 : In-house economic research

Opportunity

• Malaysian economic recovery (GDP CY 2010e : 8.0%1,CY 2011e : 6%)

• 2011 looking positive but not immune to possibleglobal shocks

• Supportive monetary policies, continued trade surplus• Positive regional recoveries, Economic Transformation

Programme, New Economic Model & 10th MalaysiaPlan to mitigate global risk

• System lending growth may moderate in CY 2011• With interest rate frontloaded in early 2010, no OPR

hike expected in the next 3 to 6 months• Higher common equity & stable funding requirements

under Basel III, but with longer transition period

• Execute to strategic themes and strengthen marketpositions

• Leverage opportunities available in domestic economygrowth plans

• Better positioned for rising interest rates• Basel III could slow down achievement of ROE targets• Leverage ANZ’s international connectivity

2Industry :Emerging

Opportunities & Challenges

1Malaysia :

Stable Outlook

3AHB :

Leveraging Tailwinds



AmBank Group Results

Investors Presentation

H1FY2011 Results Update12 November 2010

Ashok RamamurthyDeputy Group Managing Director &

Group Chief Financial Officer


Contents

Executive Summary

Strategy & Outlook



Supplementary Information→ Economic Update



Strong and consistent financial performance for H1FY2011

Business Performance

Income :

Good growth from most Divisions, H1FY11 run-rate better than FY2010 full year

Higher investment & trading income in H1FY2010 due to a one-time gain on disposal of an underwritten bond issuance

Non interest income composition

Expenses :

Salary & staffing increases, CPI & ongoing medium term investments; within CTI targets

Impairments / Allowances :

Lower individual & collective impairments (combined)

Includes PER, impairment losses & allowances for commitments & contingencies

Islamic banking contributed 18.6% to Group’s PAT

H1FY10 results Favourable growth in H1FY11 Unfavourable growth in H1FY11

Fee57%Trading

26%

Insurance

16%

Others1%

RM'mil H1FY10 H1FY11

Net interest income 1,178.7 1,365.4 +15.8%

Fee and commission 306.7 349.8 +14.1%

Investment and trading 187.3 162.4 -13.3%

Insurance business 53.8 95.4 +77.3%

Others 7.4 7.6 +2.7%

Total Income 1,733.9 1,980.6 +14.2%

Expenses 693.8 765.7 +10.4%

PBP 1,040.1 1,214.8 +16.8%

Impairments / Allowances 349.0 233.4 -33.1%

PBT 691.1 981.4 +42.0%

PAT 513.0 726.3 +41.6%

PATMI 498.4 701.2 +40.7%

H1FY11 vs H1FY10

GG

G

GG

G

GG

G

G

G

G

G


Well diversified and higher earnings contribution across the Group


Retail Banking - profit growth via focus on viable segments

Business Banking - well-balanced profits with income growth and lower allowances

Investment banking – good pipeline, slower start in Q1FY11 but picked up in Q2

CIB – higher incomes from lending and international businesses

Life Assurance and General Insurance -higher incomes from larger fund base and better efficiencies

Note 1 : Life Assurance surplus is transferred into life policy shareholders’ fund in overall Group accounts

PATMI (by division)


9%

Retail, 44%

Business,17%

CIB, 14%

Investment, 9%

Life, 6%

General, 4%

Markets,17%

Operating-10%

PATMI contribution %


Retail Banking 262.9 309.5 +17.7%

Business Banking 74.5 117.7 +58.0%

Corporate & Institutional

Banking (CIB) 67.8 101.6 +49.9%

Investment Banking 78.7 60.5 -23.1%

Assurance 32.1 66.6 +>100%

Life Assurance 8.2 39.9 +>100%

General Insurance 23.9 26.7 +11.7%

Markets 63.2 118.5 +87.5%

Operating Segments (80.8) (73.2) +9.4%

H1FY11 vs H1FY10

GG

G

GGGGGGG

G

G


3.63% 3.66%

3.44%

2.68%

2.89%

2.47%

2.83%3.04%

2.98% 3.00%

FY07 FY08 FY09 FY10 H1FY11

NIM and Cost of Funds

Cost of funds NIM

511.2

6.6 121.3

638.2 618.2

298.5

123.7

1,058.5

349.8

162.4 95.4

615.2

Fee income Trading & Investment income

Insurance business Total non-interest income

Non-Interest Income, RM'mil

FY09 FY10 H1FY11

Short-term NIM* benefit and improving efficiency


* Higher NIM (FY10 NIM = 2.98% ) :

Benefit from interest in suspense being disclosed

under impairments as per FRS139 requirements

Immediate benefit from BLR increase

Lagged impact of term deposit increase on cost of

funds

Expect NIM to be lower over remaining FY2011

• Lower CTI mainly due to higher income

• Non-interest income / total income decreased

compared to prior corresponding period due to one

time disposal of an underwritten bond issuance, but

higher than FY10 of 29.6%


Note :1 Net Interest Margin includes Net Financing Income from Islamic Banking business : H1FY10 and H1FY11 – 0.72%2 CTI and CTA excluding assurance3 Non-interest income includes net income from insurance business4 NIM FY07-FY10 as per reported in previous investors’ presentations5 COF FY07-FY08 based on data as disclosed in annual reports, FY09-H1FY11 based on internal data computation

% non-interest income / total incomeFY09 : 21.8% FY10 : 29.6% H1FY11 : 31.1%

H1FY10 H1FY11

Net Interest Margin

(NIM & NFR composite) 2.82% 3.00% +0.18%

Cost-Income

(CTI) 40.0% 38.7% -1.3%

Cost-Asset

(CTA) 1.53% 1.56% +0.03%

Profit before Tax (PBT)

/ Employee (RM'mil) 0.14 0.19 37.8%

Non-interest income /

Total Income 32.0% 31.1% -1.0%

H1FY11 vs H1FY10


37.1

49.557.4 61.9 64.2

5.3

6.3

6.88.4

8.8


RM'bil

Customer Deposits

CASA All other deposits

Balancing loans and customer deposits growth


Loans growth targeting

viable segments

Improving funding

profiles

LD ratio within

acceptable levels

Note :1 Customer Deposits : includes RM3.39 bil Senior Notes & RM0.17bil credit-linked notes2 CASA : current accounts & savings accounts 3 CASA proportion : as composition of Deposits from Customers4 LD : net loans / customer deposits5 Customer Deposits’ tagging classification was revised in FY09 with FY08 restated



Balance Sheet - Lending / Financing

Gross Loans / Financing 62,834.8 70,136.3 +11.6%

Net Loans / Financing 60,437.3 66,589.8 +10.2%

Balance Sheet - Deposits

Customer Deposits 65,302.1 72,946.0 +11.7%

CASA Deposits 7,611.3 8,777.1 +15.3%

CASA Proportion 11.7% 12.6% +1.0%

LD Ratio 92.6% 91.3% -1.3%

H1FY11 vs H1FY10

G

1

2

3

4

Customer 42.4b 55.8b 64.1b 70.3b 72.9bdeposits 4

53.5 56.9 59.766.6 70.1


RM'bil

Gross Loans


4.28 5.78

4.60 3.18

2.02 1.50 1.01 -

2.54 2.47 2.56

39.3% 32.2%36.7%

56.6%

67.3%75.1%

99.5% 89.1% 93.7% 95.5%

-60%

-20%

20%

60%

100%

-

5.0

10.0

15.0

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Day 1 Q1FY2011 H1FY2011RM'bil

2.24%1.92% 1.73% 3.18%

0.97% 0.60%0.88%

0.56% 0.59%

14.8%

17.4%

12.4%

10.4%

6.3%

4.1%2.8%

3.8% 3.6% 3.6%

10.9%

13.8%

9.6%

6.2%

3.7%2.6%

1.5%

0%

5%

10%

15%

20%

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Day 1 Q1FY2011 H1FY2011

Asset quality : Benefitting from differentiated product growth strategies

Asset Quality Indicators

6.06

7.60

6.145.53

3.60

2.431.87

Net NPL Gross NPL Loan loss coverage Gross impaired loans Allowance coverage

FRS 139

FRS139 adopted under BNM transitional arrangements since April 2010

Historical figures under GP3 basis and not comparable

Continue to enhance :

Collections systems

Credit / risk tools

Risk management / NPL management team

Allowance coverageH1FY11 / Day1 change h6.4%

Gross impaired loansH1FY11 / Day1 change h0.8%

FRS 139

Gross impaired loans %H1FY11 / Day1 change i0.2%

Gross impaired loans Loan loss chargeGross NPL ratio Net NPL ratio Net provisions charge

FY2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY2010 Day 1 Q1FY2011 H1FY2011


New gross impaired loans formation, conversions, recoveries and write-offs; Within expectations

Note :

1 FY2004 and FY2005 financials based on gross before IIS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

GP 3 FRS 139

FY2004 -FY2007 FY2008 FY2009 FY2010 H1FY2011+

0.00%

0.60%

1.20%

1.80%

Q1 Q2 Q3 Q4

% New Gross NPL / Gross Impaired Loans to Gross Loans

0.00%

0.40%

0.80%

1.20%

Q1 Q2 Q3 Q4

% Gross NPL / Impaired Loans Conversion to Gross Loans

0.00%

0.20%

0.40%

0.60%

Q1 Q2 Q3 Q4

% Recoveries to Avg Gross Loans

0.00%

0.50%

1.00%

1.50%

2.00%

Q1 Q2 Q3 Q4

% Write-Offs to Avg Gross Loans


1,866

2,539 2,469 2,559

300

129 244

Gross NPL31 Mar 10 (GP3)

Restructured performing loans unlikely to be repaid

in full

Interest on impaired loans no longer suspended

Impairment recognition at customer level vs account

level for Corporates

Gross Impaired Loans1 Apr 10 (FRS139)

Gross Impaired Loans30 Jun 10

Gross Impaired Loans30 Sep 10

Gross Impaired Loans(RM'mil)

Implementation impact of FRS139

0.8% h in gross impaired loans as at H1FY2011 vs Day 1

0.2% i in gross impaired loans % as at

H1FY2011 vs Day 1

Based on half-year limited review 30 September 2010 (H1 FY2011) financial results of banking subsidiaries

2.8%

3.8%3.6% 3.6%

0.4%0.2%

0.4%

Gross NPL %31 Mar 10 (GP3)

Restructured performing loans unlikely to be repaid

in full

Interest on impaired loans no longer suspended

Impairment recognition at customer level vs account

level for Corporates

Gross Impaired Loans %1 Apr 10 (FRS139)

Gross Impaired Loans %30 Jun 10

Gross Impaired Loans %30 Sep 10

Gross Impaired Loans %

16.2% h in retained earnings as at

H1FY2011 vs Day 1

2,557

3 63

2,389 2,757 2,775

1,804

458 114 6 2,117

14 18 -

31 Mar 10 Collective impairment

Individual impairment

Provision for contingencies

FRS 4 Insurance contracts

Existing GP / SP / IIS

Effective interest rates

Valuation Reclassification Tax 1 Apr 10(Day 1)

30 Jun 10 30 Sep 10

Retained earnings (RM'mil)


2,117

2,262

2,443

Total Total Total

Total SP, GP & IIS vs IP & CP

1,004

1,804

1,961

GP CP CP

GP vs CP

854

259

458 482

SP IIS IP IP

SP & IIS vs IP

Implementation of FRS139 : Balance sheet impairment coverage strengthened

Note : SP = specific provision, GP = general provision, IIS = interest in suspenseCP = collection impairments, IP = individual impairments

Pre-FRS FRS 139 FRS 139- Day 1 - H1FY2011



As % of Gross Loans1.3% 0.4% 0.7% 0.7% 1.5% 2.7% 2.8% 3.2% 3.4% 3.5%

RM’mil


FY08

RM'bil

Retail

Biz / Corp10.1 7.3

1.3

12.8

11.1

1.5

Business Banking (ex GLR)

Corporate & Institutional

Banking

Others

52.6%

13.8%

26.4%

FY08

RM'bil

Retail

Biz / Corp

24.4

13.4

0.9 1.0 2.0 2.4

24.5

13.8

0.9 0.8

1.9

Auto Financing Mortgage Credit Cards Line of Credit Co-Op Asset Financing

RM'bil Sept '10 Sept'09

2.8%

3.5%

11.8%11.6%

5.7%

0.3%

Business Banking

2.6

Retail : target viable segments in highly competitive environment

Biz & SME growth : stable and preferred growth sectors

CIB : project financing with government support, GLC’s & large MNC’s

Increasing composition of variable rate loans

Increasing composition of Business / Corporate loans

Portfolio rebalancing : Focus on viable segments and diversification

Gross Loan / Financing movement (gross before netting loans sold to Cagamas)

by Interest Rate Type

Loan Composition %35.0% 19.6% 1.3% 1.2% 3.8%2.8% 18.3% 15.9% 2.2%

Retail (64%) Business / Corporate (36%)

by Retail & Business / Corporate

Retail banking loans growth : 1.2%

RM'bil Mar-08 Mar-09 Mar-10 Sep-10

Fixed rate :

Conventional 47% 43% 39% 37%

Islamic 15% 17% 17% 16%

Variable rate :

Conventional 38% 40% 43% 45%

Islamic 0.1% 0.3% 1.6% 2.7%

RM'bil Mar-08 Mar-09 Mar-10 Sep-10

Retail 74% 72% 65% 64%

Biz / Corp & others 26% 28% 35% 36%


10,219

14,976 18,291

15,954 19,273

21,129

14%

17%15%

14%

12% 13%

-10.0%

0.0%

10.0%

-

10,000

20,000

30,000

Market ShareAUM

Asset Under Management Market Share

39,941 92,845 50,044 46,491 41,941

7%8% 8% 8% 8%

-5.0%

0.0%

5.0%

10.0%

-

40,000

80,000

120,000

Market ShareTrading Value

Trading Value Market Share

602 696

811 902

1,019 1,093

438 476 546 586 624

335

-2,000

-1,000

0

-

500

1,000

1,500

Gross PremiumFund Assets

General Fund Assets* Gross Premium

1,165 1,430 1,701 2,035

2,388 2,538

341 383 352 449

583

264

-1200

-400

400

-

2,000

4,000

Gross PremiumFund Assets

Life Fund Assets Gross Premium

Institutional & Unit Trust AUM

p 10%

Good momentum in Assurance and key Investment Banking portfolios

FY06 FY07 FY08 FY09 FY10 H1FY11 FY06 FY07 FY08 FY09 FY10 H1FY11

General Insurance

*Prior to December 2008, based on general funds per BNM DGI returns. December 2008 & post December 2008 based on BNM DGI returns with total asset (general funds + shareholders’ funds)

RM’mil

2006 2007 2008 2009 9MCY2010

Brokerage

Life Assurance

p 6%

p 7%

Unit trust : Institutional funds at ratio 56% : 44%


71%- 9% 5% -

17% 5% -4% -49%

36%

-

51%27%

-

26%

87%

19%

37%

45%

20%

26% 53%

10%

2%

9%

81%

6%

15%

80%

6%

15%

90%

HFT AFS HTM HFT AFS HTM HFT AFS HTM

Composition of Financing Assets / InvestmentsMGS MMS PDS DECS, shares, UT & others

Balancing trading vs investment income

Note : HFT = held for trading, AFS = available for sale, HTM = held to maturity, MGS = Malaysian Government Securities, MMS = money market securities, PDS = private debt securities, DECS = debt equity converted securities, UT = unit trusts

Increase in HFT for H1FY2011 from highly liquid MGS and MMS holding

Portfolio duration shortened in anticipation of rising rates

RM’mil

1,400

6,626

1,164

1,713

9,153

919

4,460

7,303

398

* AFS and HTM balances before accumulated impairment losses

FY2009 FY2010 H1FY2011

1.1%

0.6%1.2%0.3%

4.3% 4.2%

7.0%

5.1%5.0%

1.7% 2.3%

1.7%

FY2009 FY2010 H1FY2011

Financing Assets / Investments as % of Total Assets

MGS MMS PDS DECS, shares, UT & Others


21.5 25.3 23.6 22.5

-3.4 -3.5 -2.5 -3.5

0.8 0.80.1

-0.3

Interest / Profit Rate Risk : > 5 years

10.1 9.5 8.5 10.4

-8.5 -8.4 -10.5 -12.8

-7.3 -7.9-9.8

-10.1-0.4 -0.6

-0.4-0.4

Interest / Profit Rate Risk : Non-Interest Sensitive

10.0 10.8 13.4 13.2

-4.9 -5.1 -7.4 -8.4

-4.0 -2.9

-9.3 -8.8

Interest / Profit Rate Risk : 1 - 5 years

Balance sheet repositioned for rising interest rates, more stable funding

Note : 1 Net mismatch comprises on-balance sheet and off-balance sheet interest rate gap sensitivity2 “Others” by source comprises pension and retirement funds, non-profit organisations and similar - includes

Senior Notes RM3.39 bil & credit-linked notes RM0.17bil

FY2008 FY2009 FY2010 H1FY2011 FY2008 FY2009 FY2010 H1FY2011

RM’bil

Netmismatch : 18.9 22.5 21.2 18.7

Netmismatch : -6.1 -7.4 -12.2 -12.9

Netmismatch : 1.1 2.9 -3.3 -4.0

Mismatch profileNet mismatch > 12 months

FY2008 13.9 bil

FY2009 18.0 bil

FY2010 5.7 bil

H1FY2011 1.8 bil

Assets Liabilities Equity Off balance sheet gap / derivatives

Individual and government funds grew 4.7% in H1FY11

Issued RM2.84 bil Senior Notes (RM7 bilprogram) and RM550 mil Senior Sukuk(RM3 bilprogram)1.9 3.0 1.4 2.6 6.2 [8%]

23.0 23.6 25.5 26.8

27.8 [38%]

12.520.2

26.329.6

26.9[37%]

4.9

9.0

10.9

11.212.0

[17%]


Adjusted Customer Deposits by Source

Others Individuals Biz enterprises Government


5.8% 7.6% 7.7% 8.1% 7.8%

6.8%8.5% 9.7% 10.3% 10.0%10.1%

14.1%15.2% 15.8% 16.0%

FY2007 FY2008 FY2009 FY2010 H1FY2011RWCA Tier 1 Ratio Common Equity Ratio

(13.3)

28.2 31.6 34.7 46.7

EPS, basicsen/share

-0.17%

1.02% 1.04% 1.13% 1.48%

ROA, %

-5.8%

11.5% 11.7% 11.5% 14.4%

ROE, %

Strong capital position and improving returns

Innovative T1 (AmBank (M) Berhad) :

Approved = RM500 mil

Q1FY10 issuance = RM300 mil

Q2FY10 issuance = RM185 mil

Tier 2 :

Q3FY10 : 7th tranche MTN RM98 mil, total to-date RM1.56 bil

Capital management plan :

1. Optimise capital profile & buffer

2. Increase scenario modeling

3. Streamline corporate structures

4. Develop dynamic dividend policy

5. Proactively manage Basel III requirements

FY07 FY08 FY09 FY10 H1FY11 FY07 FY08 FY09 FY10 H1FY11 FY07 FY08 FY09 FY10 H1FY11

H1FY11 / FY10 change h2.9%FY10 / FY09 change i0.2%

H1FY11 / FY10 change h0.35%FY10 / FY09 change h0.09%

H1FY11 / FY10 change h34.5%FY10 / FY09 change h9.8%

Improved ROE, ROA and EPS in H1FY11

Capital adequacy : AHB

Tier 1 RWCA

AmBank (M) Berhad 9.8% 14.9%

AmInvestment Bank Berhad 31.0% 32.9%

AmIslamic Bank Berhad 9.8% 14.7%

Capital adequacy : by legal entity, H1FY2011 (after proposed dividends)


Contents

Executive Summary



Strategy & Outlook




*Conventional + Islamic

Medium Term Aspirations FY2011-2015

Develop a liability-led business, grow assets in targeted segments and expand wealth management

Grow diversified & profitable assets, increase liabilities, fee base business & international trade finance leveraging on ANZ

Deliver innovative and quality solutions, increase ‘share of wallet’, target high-impact and high-value clients and leverage ANZ for x-border businesses

Deliver comprehensive solutions, lead in capital markets, funds management, stock broking and enhance domestic & overseas distribution via ANZ

Leverage Friends Provident to deliver premium product & customer propositions & improve efficiencies

Leverage Insurance Australia Group to become a scale specialist in motor and niche specialist in commercial and non-motor lines

Deliver substantive, integrated and client-led business with full suite of FX, Rates, Commodities and FI offerings with ANZ collaborations

Divisional Aspirations

To become Malaysia’s Preferred Banking Group with International Connectivity• customer satisfaction

• sound financial performances

• well diversified and sustainable growth

As measured by

Retail *

Business *

Corporate & Institutional *

Investment *

Life Assurance

General Insurance

Markets *


Increasing profit momentum for FY 2011

Retail Banking *

Business Banking *

Corp & Institutional

Banking *

Investment Banking *

Markets *

Life Assurance

General Insurance

Good CASA & deposit growth, profitable asset growth & lower credit costs Invest for medium term outcomes Strong profit growth benefiting from lower impairments for FY 2011

Income growth from larger asset base & growth in non-interest incomes Proactively managing existing accounts for cross-sell & transactional deposits Strong profit growth underpinned by well diversified incomes for FY 2011

Income growth from larger asset base & fees Increased focus on cross-selling & growing deposits Strong profit growth underpinned by incomes for FY 2011

Leverage upturn in capital markets Increasing regional biz via closer collaboration with ANZ Sound profit result for FY 2011

New products, improve new biz IRR & leverage strategic partnership with Friends Provident Strong growth in profits transferred to Shareholders for FY 2011

Higher contribution from new products, increase share of wallet from retail & biz customers Possible synergistic benefits from MAA acquisition Reasonable profit growth for FY 2011

Momentum from FX & Derivatives set to increase Strong profit growth for FY 2011

*Conventional + Islamic


Key Strategic Thrusts for FY2011

Strategic business transformation

Growth initiatives

Governance and Enablement Functions

• Complete structural realignment to improve target segment focus• Develop customer centric retail business model - part of AmHorizon• Implement account plans for business customers and increase SOW• Expand product offerings and build new capabilities in Markets Division

(eg FX Cash)• Conclude MAA acquisition, integrate and harvest synergies

• Commence leveraging ANZ international connectivity – agree business principles and priorities

• Develop new wealth management strategy and commence execution• Enhance international trade and cash management business• Develop new family Takaful business with FP

• Implement new retail and non retail PD/ LGD models, Security Indicators, Collateral Management, and Market risk systems (VIPER)

• Implement Basel III, capital allocations and new ALM system• Consolidate Operations into a new Centre of Excellence• Finalize vendor and commence core banking system replacement


PATMI ~

ROE

CTI

Net NPL ratio /Gross impaired loans

Dividend:Gross

Payout

Medium Term Aspirations and estimates

# Previous guidance : >20%

* Adjusted for possible Basel III impacts on ACE^ Previously 12-15% sustainable profit growth

*

~ PATMI = profit after tax and minority interests

FY07 FY 08 FY 09 FY 10 H1FY 11 FY 2011 EstimateMedium Term

Aspirations (MTA)2012 - 2016

- RM282.5 mil

RM668.5

mil

RM860.8mil

RM1,008.6

mil

RM701.2

mil

25 - 30%

#

14 – 18%

CAGR ^

- 5.8% 11.5% 11.7% 11.5% 14.4% 12.5 - 13% *FY13 onwards :

15 – 18% *

37.1% 39.6% 43.3% 42.0% 38.7% circa 40% 40 - 42%

6.2% 3.7% 2.6% 1.5% / 3.8% 3.6% circa 3.6% circa 2.5%

5.0 sen / share

(loss year)

6.0 sen / share

18.3%

8.0 sen / share

19.0%

10.5 sen / share

28.1%

interim

6.0 sen / share

25.8%

35 – 40% *

payout

≥ 40% *

payout


Summary

1. Good HY2011 performance, portfoliodiversification on track for FY2011

2. Growth momentum expected to moderate inFY2012 due to uncertain global outlook

3. Strong foundations and clear medium termstrategies

4. International connectivity with ANZ and accessto world class “IP” and resources

5. Disciplined execution and governance requiredfor sustainable performance


Executive Summary


Strategy & Outlook





PATPBPExpensesIncome

Retail Banking Division : Improved asset quality main contributor to higher profits

Income performance – focusing on profitable segments and pricing for risk

Irrational pricing in the market

Expenses - growing footprints and upgrade in risk tools, people cost and IT systems

Lower impairments driving higher profits

H1FY2010 loans and deposits adjusted for segment realignment

Better than system CASA growth (7.7%)

Develop a liability-led business, grow assets in targeted segments and expand wealth management

Composition to Group 46.9% 47.1% 46.7% 42.6%

H1FY10 results

Favourable growth in H1FY11

Unfavourable growth in H1FY11


Income 912.2 928.2 +1.8%

Expenses 339.3 360.8 +6.3%

PBP 572.9 567.4 -1.0%


PBT 351.6 412.7 +17.4%

PAT 262.9 309.5 +17.7%



Gross Impaired Loans - 1,386.3 -


CASA Deposits 6,203.4 7,059.5 +13.8%

ROA 1.22% 1.40% +0.18%

CTI 37.2% 38.9% +1.7%

Allowance Coverage - 88.4% -

Product Holding Ratio 1.44 1.45 +1.0%

H1FY11 vs H1FY10

G

3.03 %

G



Business Banking Division : Good income and targeted loans growth

Income growth - lending to stable sectors, trade and transactional

Cost increase - expansion in relationship team

H1FY2010 loans and deposits adjusted for segment realignment

Strong CASA growth, leveraging on better relationship building and new products

Grow diversified & profitable assets, increase liabilities, fee base business & international trade finance leveraging on ANZ

Composition to Group11.8% 6.0% 15.4% 16.2%

H1FY10 results



H1FY11 RM'mil H1FY10 H1FY11 H1FY10

Income 175.3 233.1 +33.0%

Expenses 42.2 46.3 +9.7%

PBP 133.1 186.8 +40.3%


PBT 99.3 156.8 +57.9%

PAT 74.5 117.7 +58.0%



Gross Impaired Loans - 145.8 -


CASA Deposits 1,087.3 1,550.8 +42.6%

ROA 1.56% 1.97% +0.41%

CTI 24.1% 19.9% -4.2%


Term Loan & Revolving Credit 6,641.6 7,664.1 +15.4%

Trade Finance 5,781.7 5,639.9 -2.5%

1.14%

G



Corporate & Institutional Banking Division : Good income growth and lower impairments

Diversified loans portfolio - good support for income growth

Impairments benefitted from bad debts recovered

H1FY2010 loans adjusted for segment realignment

Note : 1 Singapore Stock Exchange2 Jakarta Stock Exchange3 AmFraser International Pte Ltd4 PT AmCapital Indonesia

* Services include : large corporate lending, large corporate deposits, financial institutions group, offshore banking, international business, private equity, REITs and loan syndication

Deliver innovative and quality solutions, increase ‘share of wallet’, target high-impact and high-value clients and leverage ANZ for x-border businesses


H1FY10 results




Income 138.8 185.1 +33.4%

Expenses 38.5 47.4 +23.1%

PBP 100.4 137.7 +37.2%


PBT 88.5 132.7 +49.9%

PAT 67.8 101.6 +49.9%

CTI 27.7% 25.6% -2.1%


Ave Assets Management 990.5 1,009.8 +1.9%

Ave Volume / Contract Traded (RM'mil/month)

S'pore SE 170,040.0 153,582.7 -9.7%

Jakarta SE 66,671.4 66,380.6 -0.4%

AmFIPL 2,082.0 1,677.0 -19.5%

PTAMCI 582.7 516.8 -11.3%

Market Share as at:

AmFIPL 1.3% 1.1% -0.2%

PTAMCI 0.9% 0.8% -0.1%

H1FY11 vs H1FY10

G

G

G

G

G

1

2

3

4

G


Income Expenses PBP PAT

Investment Banking Division : Subdued debt market, but good pipeline

Higher income in H1FY10 partly due to a one-time gain on disposal of a bond holding

Good contributions from asset management and brokerage

Note :1 Including AmInvestment Management, AmInvestment

Services, private banking & AmARA

Deliver comprehensive solutions, lead in capital markets, funds management, stock broking and enhance domestic & overseas distribution via ANZ


H1FY10 results




Income 181.1 173.1 -4.4%

Expenses 75.1 91.4 +21.7%

PBP 106.0 81.7 -22.9%

Impairments / Allowances 0.6 0.9 +50.0%

PBT 105.4 80.8 -23.3%

PAT 78.7 60.5 -23.1%

CTI 41.5% 52.8% +11.2%

Ave Assets Management 19,193.4 23,955.1 +24.8%

Ave Volume / Contract Traded (RM'mil/month)

Bursa M'sia 57,604.8 60,641.7 +5.3%

Future KL index 378.8 352.5 -7.0%

IB Broking 4,508.2 4,906.8 +8.8%

AmFuture 75.2 76.2 +1.3%

Market Share as at:

IB Broking 7.8% 8.1% +0.3%

AmFuture 20.3% 21.7% +1.4%

H1FY11 vs H1FY10

G

G

G

G

1


PATIncome

Life Assurance : Stronger contribution to Shareholders, sound capital adequacy

Higher income - larger fund assets, from enhanced agency network, product bundling and cross selling

Increase in CAR due to reduction in total capital requirement from MGS curve movement (reducing interest rate risk and liability capital charges)

Decline in gross written premium from lower margin single premium businesses

Change in definition of ROE computation where H1FY11 is based on higher total value of new business of each product

Leverage Friends Provident to deliver premium product & customer propositions & improve efficiencies

Composition to Group2.3% 5.5%

* Life assurance shareholder’s fund accounts

H1FY10 results




Net Income 12.7 46.1 +>100.0%

PAT 8.2 39.9 +>100.0%

Life Assurance

fund assets 2,333.1 2,538.1 +8.8%

CAR ratio 179.9% 221.2% +41.3%

Gross written

premium 319.8 263.6 -17.6%

ROE 145.6% 85.4% -41.3%

H1FY11 vs

H1FY10

G

G

G

G

G


Income Expenses PBP PAT

General Insurance : Higher income and improved efficiencies

Higher income - larger gross written premium, from enhanced up- and cross-selling, and established distribution network

Higher tax impact in H1FY2011 due to late audit adjustment in respect of FY2010, for transfer of deferred tax assets to life assurance

Leverage Insurance Australia Group to become a scale specialist in motor and niche specialist in commercial and non-motor lines


H1FY10 results




Income 62.7 82.5 +31.6%

Expenses 37.4 41.2 +10.2%

PBP 25.3 41.4 +63.6%

Impairments / Allowances (0.4) 0.7 +>100.0%

PBT 25.7 40.6 +58.0%

PAT 23.9 26.7 +11.7%

CTI 59.6% 49.9% -9.7%

General Insurance fund

assets956.9 1,092.8 +14.2%

Claim ratio 72.7% 69.4% -3.3%

Management expense

/ earned premium 14.9% 15.0% +0.1%

ROE 17.9% 21.5% +3.6%

H1FY11 vs H1FY10

GG

G

G

G

GGGG

GGG

GGG



Markets : Income diversification and increasing momentum

Higher interest income from AFS, FX and derivatives

Expenses reflect continuous investment in FX, rates, derivatives & commodities establishment

Lower AFS impairment

Deliver substantive, integrated and client-led business with full-suite of FX, Rates, Commodities and FI offerings with ANZ collaborations


H1FY10 results




Income 143.4 194.9 +35.9%

Expenses 21.3 32.3 +51.6%

PBP 122.1 162.6 +33.2%


PBT 88.1 157.6 +78.9%

PAT 63.2 118.5 +87.5%

CTI 14.9% 16.6% +1.7%

PAT : Fx and Derivatives 7.8 24.5 +>100%

Total Group:

Financial assets HFT 2,592.2 4,460.2 +72.1%

Financial investments

AFS 6,738.8 7,224.7 +7.2%

Financial investments

HTM 676.7 194.8 -71.2%

H1FY11 vs H1FY10

GGG

G

G

G

GGG

G

G



Group Operating Segments

Higher income from :

Shareholders fund, Corporate & Shared Services

- consolidation adjustments

Lower income from Loan Rehab units

- recovery rate as scheduled

Composition to Group6.9% 19.0% -0.7% -6.6%

Defining the journey to a Customer Service Delivery Channel

H1FY10 results




Income 107.7 137.6 +27.8%

Expenses 138.7 145.7 +5.0%

PBP (31.0) (8.1) +73.9%


PBT (78.8) (45.1) +42.8%

PAT (66.3) (48.1) +27.5%

PATMI (80.8) (73.2) +9.4%

H1FY11 vs H1FY10

GG

G

G

G

G

G

GGG



Islamic Banking : Lower underwriting profits and higher impairments

Higher income in H1FY10 due to a one-time gain on disposal of an underwritten bond issuance

Underlying branding position remains strong and expected to provide growth support

* Results incorporated under respective business divisions

To become the Islamic Bank of choice and ensure a high degree of value for our customers, employees & stakeholders

Composition to Group

H1FY10 results



19.1% 19.1% 19.1% 18.6%


Income 403.0 379.1 -5.9%

Expenses 127.1 146.5 +15.3%

PBP 275.9 232.6 -15.7%

Impairments / Allowances 36.8 50.9 +38.3%

PBT 239.1 181.7 -24.0%

PAT 176.7 134.8 -23.7%

Net Financing 10,762.7 12,230.3 +13.6%

Gross Impaired Financing - 204.2 -


CASA Deposits 2,005.4 2,148.7 +7.1%

ROA 2.41% 1.59% -0.82%

CTI 31.5% 38.6% 7.1%


H1FY11 vs H1FY10

G

1.49%


Contents

Executive Summary


Strategy & Outlook


Supplementary Information→ Economic Update→ Corporate Information


Relative debt / loans toGDP, 2009

Malaysia Singapore Indonesia Thailand Philippines

National debt / GDP 34.3 110.0 28.3 28.6 62.3

Fed Govt external debt / GDP 2.0 n.a 28.9 0.6 32.1

Household debt / GDP 76.0 n.a 1.3 41.0 2.3

Housing loans / GDP 29.3 34.5 n.a 10.2 n.a

Auto financing loans / GDP 16.3 4.5 n.a 4.3 1.2

Malaysia’s GDP growth supported by domestic new growth drivers and initiatives coupled with robust Asia-Pacific growth

Note: 1 AmResearch forecastSources : Bloomberg, BNM, in-house economic research

Malaysian economy

Malaysia : Key statistics 1 2010e 2011e

GDP 8.0% 6.0%

Inflation 2% 3.0%

OPR 2.75% 3.25%

Fiscal deficit 5.6% 5.4%

Exchange rate (RM vs USD) 3.1 3.0

Unemployment rate 3.3% 3.0%

Malaysia average lending rate vs OPR & BLR

5.00

-1.70

8.00

6.58

-1.25

12.20

5.70

4.55

5.98

4.60

-2.20

7.00

8.40

5.30

4.93

1.00

5.90

-3

-1

1

3

5

7

9

11

13

2005 2006 2007 2008 2009 2010f

%ASEAN economies real GDP growth

Vietnam

Singapore

Malaysia

IndonesiaPhilippines

Thailand


10MP : Key macroeconomic targets9MP

2006 – 201010MP

2011 - 2015

GDP 6.0% pa 6.0% pa

GDP per capita US$9,285 US$12,139

Private expenditure 8.4% pa 8.6% pa

Public expenditure 6.7% pa 4.9% pa

Exports 4.8% pa 10.6% pa

Fiscal deficit -3.2% of GDP -2.8% of GDP

Inflation 3.0% pa NA

Unemployment rate 3.1% 3.1%

10th Malaysia Plan (2011 – 2015) and New Economic Model : Moving Malaysia to the rank of high income economies

10th Malaysia Plan (10MP) snapshots

Government Transformation Programme & New Economic Model

GDP growth target 6% pa (2006/2010 : 4.2%)

Primary policy thrust to re-energize private sector amid leaner public sector

RM230bil for development expenditure

• Private Finance Initiative Fund RM20bil to attract private investments worth at least RM200bil in National Key Economic Areas (NKEAs)

12 NKEAs, comprising 11 sectors and 1 geographical area – Greater KL

New Economic Model : Goals

• Iskandar Malaysia• Northern Corridor

Economic Region• East Coast Economic

Region• Sarawak Corridor

Renewable Energy• Sabah Development

Corridor

Key growth engines 10MP allocation for development expenditure

Cluster corridors

• O&G (11.1%1)• Palm oil & related products• Financial services (12.7%1)• Wholesale & retail (15.1%1)• Tourism• ICT (10.2%1)• Education (2.0%1)• Electrical & electronics• Business services (3.3%1)• Private healthcare• Agriculture services (2%1)• Greater Kuala Lumpur

NKEAs

Note: 1 target % contribution to GDP by 2015Sources: AmResearch, media, EPU

Economic sector, 55%

Social sector, 30%

Security sector, 10%

General admin, 5%


Major Project Highlights EPP / BO

Incremental GNI, RM’bil

Private investment

New jobs

Greater KL –MRT, River of life

Largest infrastructureproject

9 EPPs3 BOs

392 66% 552 K

Palm oil Improve extraction rate from 20.5% to 23%

8 EPPs3 BOs

125 97.7% 42 K

Tourism Premier shopping district, bio-diversity

12 EPPs3 BOs

67 97.7% 497 K

Oil & gas Create oil field services 10 EPPs7 BOs

132 99.7% 52.3 K

ContentsEconomic Transformation Programme– Propelling Malaysia towards becoming a High-Income, Developed Nation

4 strategic thrusts to transform Malaysia towards Vision 2020

1 Malaysia

10th Malaysia Plan

Government Transformation

Programme

Economic Transformation

Programme

Economic Transformation Programme (ETP) roadmap

RM661bil

RM442b

RM359b

RM275b RM1.7tril

USD188mil

USD523mil

USD138m

USD112m

USD86m

2009 GNI Entry Point Projects (EPP)

(BO) Biz opportunities

Other sector growth

2020 GNI target

RM23.77K GNI (USD6.7K)per capita

>RM48K GNI (USD15K) per capita

3.3 mil new jobs63% in mid to high income

brackets (current : 43%)

1 2 3

National Key Economic Activities (NKEA)

131 EPPs

Rural 25

Urban 106

131 EPPs across Malaysia

Rural 8.7mil

Urban 19.3 mil

EPP allocation vis-à-vis population

breakdown

Total investment : USD 444 bilPublic 8%,

USD34b

Private sector92%, USD410b

73% domestic direct investment

8% public funding (USD34b) & 92% private funding (USD410b)

Note :GNI = gross national income NKEA = National Key Economic Activities EPP = Entry Point Projects BO = business opportunitiesSource : www.pemandu.gov.my

Shift to service-based economy to contribute 65% (current 58%)

ETP is different : A programme, not a plan Focus on actions 1st in Malaysia’s history Co-created by private and public sector

But, private-sector led; government as facilitator


Oil, Gas & Energy

Palm Oil

Financial Services

Tourism

BusinessServices

ImprovingElectronics& Electrical

Wholesale

& Retail

Education

Healthcare

Communications Content &

Infrastructure

Agriculture

Greater KL

Economic Transformation Programme : Financial Services as 1 of 12 NKEAs

Vision • Evolve to serve needs of biz & consumers in high-income economy

• Increase depth, regional & global market shares in selected niches

Aspirations • Strengthen core

• Serve needs of high-income population

• Develop new growth sectors

• Go on the offensive

Targets • GNI contribution RM180bil(additional 121b, 3x growth)

• New 275K jobs(56% >RM4K income per month)

Challenges • Lack of scale• Lack of liquidity & diversity in

capital markets• Low levels of financial

literacy• Competition from regional

financial centres

Enablers • RM211bil cumulative funding in next 10 years(4% public sector contribution)

• Attractive biz environment for international & long-term capital

• Talent• Seamless regulatory• Tax competitiveness• Reputation

Financial services sector EPP

1 Revitalise equity market

2 Deepen & broaden bond markets

3 Transform development financial institutions

4 Create integrated payment eco-system

5 Service high-income population

6 Accelerate development of private pensions

7 Spur growth of wealth management

8 Kick-start & sustain asset management industry

9 Create regional champions

10 Create global Islamic finance hub

Note :GNI = gross national income NKEA = National Key Economic Activities EPP = Entry Point ProjectsSource : www.pemandu.gov.my


99.3 158.0

464.5

101.9 175.2

493.9

Savings Current Account Fixed Deposits

Industry Deposits by Type Sept '09 Sept '10

10.9% 6.3%2.7%

119.7 205.0

25.4 35.5

378.2 131.1

230.4

28.7 40.8

423.7

Purchase of Transport Vehicles

Purchase of Residential Properties

Credit Cards Personal Use Business & Corporate Loans

Industry Loans Growth by Purpose Sept '09 Sept '10

12.4% 12.9% 14.8% 12.0%9.6%

Industry Growth : Loans by Sector, Deposits by Type

composition : 15.3% 27.0% 3.4% 4.8% 49.6%

Retail loans composition : 50.4%

CASA growth : 7.7%

composition : 13.2% 22.7% 64.1%

Banking System Loans

RM’bil

Sept 2010 854.6

Sept 2009 763.7

11.9%

Banking SystemCore Deposits

RM’bil

Sept 2010 771.0

Sept 2009 721.8

6.8%

RM’bil

Source : BNM

AmBank Group’s growth : +5% +4% -6% +7% +27%

Retail loans growth : 3%

Retail loans growth : 11.8%

AmBank Group’s growth : +10% +21% +37%CASA growth : 15%

Industry Loans Growth by Purpose

Industry Deposits Growth by Type


24.6

11.4

1.8 2.5 3.5 2.4 2.0 0.0 1.5

9.7

3.5

25.7

11.9

4.3

0.0 1.6

13.9

5.3



Credit Cards Personal Use Purchase of Non-Residential Properties

Purchase of Securities

Fixed Assets Consumer Durables

Construction Working Capital Other purpose

AmBank Group Loans Growth by Economic Purpose Sep-09 Sep-10

1.7 2.3 2.4 1.2

4.6% 4.2% -6.4% -7.4% 24.4% -0.1% -42.4% 419.7% 5.0% 44.0% 49.8%

119.7

205.0

25.4 35.5 72.3

32.9 0.1

18.7

209.2

35.9

131.1

230.4

28.7 40.8

86.5

35.6 20.2

221.8

50.5



Credit Cards Personal Use Purchase of Non-Residential Properties

Purchase of Securities

Fixed Assets Consumer Durables

Construction Working Capital Other purpose

Industry Loans Growth by Economic Purpose Sep-09 Sep-10

8.9

9.1

8.9

9.1 0.1

9.6% 12.4% 12.9% 14.8% 19.8% 8.1% -1.7% -21.0% 8.1% 6.0% 40.8%

Loans by Economic Purpose : AMMB vis-à-vis Industry

composition : 36.6% 16.9% 2.4% 3.3% 6.1% 3.4% 1.6% 0.0% 2.2% 19.8% 7.5%

RM’bil

Note : AmBank Group’s data on loans by economic purpose was synchronised between CCRIS and FISS reporting in an exercise in Nov 2009 Source : BNM, internal reports

composition : 15.3% 27.0% 3.4% 4.8% 10.1% 4.2% 1.0% 0.0% 2.4% 26.0% 5.9%

RM’bil

AmBank Group Loans Growth by Economic Purpose

Industry Loans Growth by Economic Purpose


Competitive Positioning : Sound size and market position in key businesses (as at mid 2010)

Investment Banking

Business Banking

Life Assurance

Islamic Banking

Corporate & Institutional Banking

# 2

# 4[9.9%]

# 5[6.5%]

# 10

# 5[7.4%]

Life

`

# 2 auto financier [21.2%]

# 8 in housing loans (incl foreign banks) [ 5.0%]

# 7 in credit cards (incl foreign banks) [ 6.0%]

# 3 in personal financing [ 6.4%]

# 5 in no. of branches & # 4 in no. of ATM’s *# 2 in ATM’s by location coverage+

Nationwide network - 4 regional business & 12 commercial centres

Lead in cash management, trade and SME financing

# 2 in Debt League [21.5%]

# 3 in Malaysian RM Islamic bonds [15.4%]

# 3 in IPO league [12.2%]

# 3 in brokerage turnover [ 7.9%]

# 4 in funds under management [ 12.5%]

Award-winning equity house, private bank, asset management company & Islamic asset management house

Focus - GLC’s, MNC’s and financial institution groups (FIG’s)

Niche international businesses - Singapore, Indonesia & Brunei

Other businesses - REITs and private equity

# 10 in life assurance new biz premiums [ 4.2%]

Strategic partner - Friends Provident

BNM approval for rights to establish Takaful company

Syariah based banking products and services

# 2 in Islamic credit cards [30.3%]

Islamic funds management and banking business in Brunei

Retail Banking

Note :[ ] denotes market share

General Insurance # 7

# 7 in general ins new biz premiums [ 4.9%]

# 3 in motor ins new biz premiums [ 8.3%]

Strategic partner – IAG


Competitive positioning :Shareholding structure

No. 17 (Malaysia –market capitalisation) & 176 (global – 1,000 banks by market capitalisation) :

RM17.63 billion, Bursa SahamMalaysia (1)

US$5.78 billion, Bloomberg (2)

1 Apr 2010 : 100% equity in AmInvestmentBank Bhd transferred to AHB from AmInvestment Group Bhd

AHB in progress of due diligence to acquire :

general insurance business of a local insurance company

As at 30 September 2010

Foreign shareholding excluding ANZ :

Mar 09 : 28.4% Mar 10 : 27.1% Sep 10 : 31.0%

100% 70%*100%

100%

AmInvestmentBank Berhad

16.8% 12.5% 46.9%

Employees Provident Fund Board

AMMB Holdings Bhd

Amcorp Group Bhd

Other shareholders

AmBank (M) Berhad

AmIslamicBank Bhd

^ Insurance Australia Group Ltd –49%

ANZ Funds Pty Ltd #

23.8%

AMFB Holdings Bhd

100%

51%^

AMAB Holdings Sdn Bhd

100%

AmG Insurance Berhad

AmLife Insurance Berhad

* Friends Provident Fund PLC –30%

Source :1 Starbiz dated 4 October 20102 Bloomberg Global 1,000 banks by Market Capitalization as at 1 October 2010

# ANZ Funds Pty Ltd : a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (“ANZ”)

AmInvestmentGroup Berhad

100%


Competitive positioning :Strategic partnership with global partner, ANZ

Super regional strategic intent

Launched Dec 2007

Asia Pacific growth focus : Retail, Wealth, Commercial,

Institutional

Director

Dr. Robert John

Edgar

BoardDirector

Alex Thursby

Senior

Management

Deputy Group MD & Group CFO

Ashok Ramamurthy

Chief Risk Officer

Andrew Kerr

Head, Retail Sales & Distribution

Brad GravellManagement

Head, Group Risk Models

Glenn Saunders

Head, Market Risk

Jonathan Manifold

Head, Systems Accounting

Ignatius Lim

Chief Operations Officer

Ross Neil Foden

Director

Mark Whelan

Head, FX & Derivatives

Peter Trumper

ANZ has provided key resources and support

ANZ’s Regional Aspiration :

Create a leading Super Regional bank

Global quality, regional focus

( ) – number of branches & representative offices in each country

AmBank Group 1 of 5 key partnerships that is expanding ANZ’s organic agenda

AHB’s market cap increased 56.4% in 2008/2010

Partnerships model, ANZ adds value :

leadership & management

product development

technical expertise

2-way customer flows

ANZ is committed to AmBank Group’s long-term success and aspirations

1 – 2 years Restore Drive Asia profit

2 – 5 years Outperform In-fill M&A in Asia (core geography)

5+ years TRANSFORM

Head, Transaction Banking (Trade &

Cash)

Tan Chin AunNote : as at June 2010


Strategic Business Transformation : Good Progress

12 months (FY 2008)

24 months

(FY 2009)

36 months (FY 2010)

• Set Group’s vision & aspirations

• Agreed Group’s transformation strategy, agenda and targets

• Realigned auto financing business towards profitable growth

• Improved asset quality

• Realigned growth towards profitable and viable segments only

• Realigned Markets Fixed Income business model

• Reset Mortgage business strategy and action plans

• Consolidated Group balance sheet activities within commercial bank

• Split composite insurance license to General and Life

• Created deposits as a profit centre

• Realigned customer ownerships and focus across all business Divisions

• Proactively strengthened capital and liquidity management

• Repositioned balance sheet for rising interest rates

Strategic Business

Transformation

High Priority

Growth Initiatives

Governance &

Enablement

Functions


High Priority Growth Initiatives : Implemented To-Date

• Accelerated growth from GLC, GLIC and MNC

• Acquiring an infill general insurance business (MAA) and build scale

• Developed a new Rates business in collaboration with ANZ

• Expanding distribution footprint with particular focus on 7-11 ATM’s

• Created a separate Corporate and Institutional Banking Division (CIB)

• Developed a new FX business in collaboration with ANZ

• Enhanced cash management offering via Gross Payroll system

• Split General and Life, brought in a new life business partner, Friends Provident Fund plc

• Implemented new profit centre based retail branch distribution model

• Accelerated CASA growth via aligning profitability and incentives

12 months (FY 2008)

24 months (FY 2009)

36 months (FY 2010)

Strategic Business

Transformation

High Priority Growth

Initiatives

Governance &

Enablement

Functions


Governance and Enablement Functions Streamlined :Supports Better Decision Making

• Privatised AmInvestment Bank

• Consolidated some Group support into Centres of Excellence

• Consolidated / simplified governance committee structure across entities

• Delivered line of business budgets and performance reporting

• Created a Group PMO to prioritise and manage key strategic initiatives

• Established Advance Risk Recognition Program (ARRP)

• Strengthened risk disciplines via Group Risk Appetite Frameworks

• Separated ALCO, capital and balance sheet management from Markets

• Delivered Peer Bank relative performance benchmarks

• Implemented short and long term incentives aligned to performance via MTA

• Delivered 8 new generation retail scorecards and new market risk models

• Commenced PD, LGD & EAD models for retail and non-retail, non-retail security indicators

• Implemented a new FTP system aligned to balance sheet strategies

• Implemented Operational Risk Incident Reporting system and Basel II capital calculator

• Developed leadership bench-strength and succession planning

12 months (FY 2008)

24 months (FY 2009)

36 months (FY 2010)

Strategic Business

Transformation

High Priority

Growth Initiatives

Governance and

Enablement Functions


Strategic partnership with global partner, ANZ

Competitive positioning : continues to strengthen

Sound size and market position in key business

segments

1

2

3

4

5

6

Well diversified universal bank & # 4 largest banking group (market capitalization) # 4 retail bank, # 5 business and CIB lending Top 2 investment bank, #5 Islamic banking, #7 general insurance Strong customer-focus, lead in

customer satisfaction

Segmentation focus and positioning strategies & differentiating through products & services

Large retail and corporate client base provides high cross-selling potential

Award-winning products and services

Improving “Top of Mind” brand recall

Expanding distribution footprint (branch network –190), #4 largest ATM network (807), 402 ATMs @ 7/11 and 140 EBC’s

eChannels : internet banking, mobile banking and 24 hours call centre

Pioneer in weekend banking concept

~7,400 sales agents, direct sales teams, marketing & personal bankers, financial services and insurance agents

Strategic partnership with ANZ (since May 07), 1 of 11 AA rated global banks Leveraging ANZ : strengthen strategy formulation, financial management, risk

management, distribution channel management, deposits strategy and product development

Strong key shareholders, common aspirations

AIGB privatisation & internal business restructuring completed

Insurance biz partnership (2009)

Improvement in stock valuation & upgrades in credit ratings

Experienced management team with key ANZappointments

Industry experts, international and domestic best practices

Performance based culture, all levels

Strengtheningcompetitive positioning


Wide market reach and multiple distribution channels

Source : Company websites of peer banks / MEPS informationNote : Peer groups as at September 2010; AmBank as at latest practicable date

Total no

ATM’s at 7 Eleven 402

Electronic Banking Centers (EBC) 140

Assurance offices 74

AmInvestment offices 15

Strategic initiatives , expanding distribution footprints

Increased customer satisfaction via integrated & seamless channels model Expand branch network & SSM footprint Further build & improve sales & service capabilities

Aspirations

Number of Branches#5

Branch Banking

190 branches, 2 in progress

Number of ATMs

2,8472,061

872 807484 341 251 171

Maybank CIMB RHB AmBank PBB HLB EON Alliance

#4

Expand self-service machines (SSM) network at branches, shopping centres, 7-Eleven

Expand revenue streams via add-ons (interbank loan, bill payment, full-suite prepaid top-up)

Maximise outbound sales productivity via contact centre Enhance experience via innovative mobile & internet

banking

E- Channels & Contact Centre (incl. Internet & Mobile Banking)

Wealth Management

Priority banking for affluent segment Multi-campaigns / product launches for different segments Increase sales efficiency through the introduction of WM System Group Wealth Steering Committee Maximise WS sales productivity – sales management

Main-bank for transactional and savings’ needs : Promotions, marketing events Payroll acquisition Focus on targeted customer segments e.g family and

university students Service delivery

Convenience, simplicity, friendliness

Deposit & Customer Solutions

364 323 248 241 190 188 139 89 86

Maybank CIMB Public RHB AmBank HLB EON Alliance Affin


Competitive Positioning : Products and Services

Personal

Business

Investment Banking

Islamic

Assurance

Unit Trust

eBanking

Internet banking

MobileBanking

AmOnline Bill Payment

Award-Winning Contact Centre

Electronic Banking Centre

Self-Service Machines

ATM’s at 7-Eleven

Deposits

AmeSecurities

AmeBiz

Cards Loans Family First Wealth Management

Floating Rate NIDs

AmBank@work

Corporate Finance

Loans and Financing

Cash Management

Trade Services Factoring Treasury AmBank@work

Corporate Finance

Structured Finance

Islamic Markets

Equity Capital Markets Equity

Derivatives

Treasury and Markets

Broking Futures

Funds Management

Trustee Services

Private Equity

Private Banking

Offshore Markets

Retail Business Trade Services

Treasury Unit Trusts

Islamic Private Trust Services

InvestmentStockbroking

Protection

RetirementSavings &

Investment

Healthcare

Education

Bancassurance AmDriverCare

Houseowner and Householders

Fire Insurance

Private Motor Insurance

AmPro Personal Accident Insurance

Fixed Income Funds

Mixed Asset Funds

Equity Funds Closed Ended Funds

Islamic Funds Global Funds

Deposits

Life Assurance General Insurance

AmTrade


Reaping awards and accolades

10th CCAM Annual Contact Center Awards 2009 :

- Silver Award for Best Telemarketing Contact Center, Best Contact Center Manager, Best Contact Center Telemarketer, Best Contact Center Support Professional

- Bronze Award for Mystery shopper results

Euromoney Private Banking Survey, 2010 : Best Local Private Bank in Malaysia

The Edge-Lipper Malaysia Fund Awards 2010 :

- Best Bond Group

- AmDynamic Bond (Best Bond MYR Fund – 3 years)

- AmDynamic Bond (Best Bond MYR Fund – 5 years)

Finance Asia Country Awards Achievement 2010 :

- AmInvestment Bank as Best Equity House in Malaysia

The Asset Triple A Islamic Finance Awards 2010 :

- Most Innovative Islamic Finance Deal & Best Islamic Deal Malaysia – 1Malaysia Development Berhad 5 billion ringgit 30 year Islamic medium term notes

- Best Islamic Structured Product – AmIslamic Bank AmMomentum Select NID-i

- Islamic Asset Management House of the Year

ACI Excellence Awards 2010 :AmBank received “Highly Commended” honour for easy-to-use Inter Bank Loan Repayments Service via ATMs

The Asset Triple A Awards 2010 :⁻ Malaysia’s Asset Management Company of the Year⁻ Islamic Asset Management House of the Year

Share/Guide Association (Malaysia) ICT Awards 2010 :⁻ Enterprise Security Excellence Award (AmBank’s wireless ATM)

Alpha Southeast Asia Best Financial Institution Awards 2010 :

- AmInvestment Bank as Best Equity House in Malaysia

KLIFF Islamic Finance Awards 2010 :

- AmInvestment Bank for Most Outstanding Islamic Investment Banking


Major investment banking deals clinched

Secondary Offerings IPO

Lion Diversified Holdings Berhad

RM138 million

Proposed Acquisition of Megasteel Sdn Bhd

February 2010

Delegateam Sdn Bhd

RM1.65 billion

Voluntary Take-Over Offer on Sarawak Energy Berhad

March 2010

Techfast Holdings Berhad

RM8.33 million

Proposed acquisition of 50%equity interest in Cape Technolgy

S/B, Oriem Technology S/B, Cape Tech Corporation S/B

May 2010

RM15.08 million

Acquisition of Kenseisha (M) Sdn Bhd

May 2010

RM1.03 billion

Starhill Real Estate Investment Trust

Proposed Disposal of Starhill Gallery and Lot 10

Property

June 2010

M & A

Debt Capital Market

“PRIVATE & CONFIDENTIAL”

Page 21

RM336 Million

RM2.0 Billion Medium Term Notes

Programme

June 2010

Lead Manager

Perbadanan Tabung Pendidikan

Tinggi Nasional

1st Tranche : RM1,500 Million

2nd Tranche : RM1,500 Million

Syndicated Bai’Inah Term

Facility

November 2009 / June 2010

Mandated Lead Arranger

Ara Bintang Berhad

1st Issue: RM1,035 Million

RM1.25 Billion MTN Programme

arising from the Securitisation of

Starhill Gallery and the Lot 10

Property

June 2010

Principal Adviser, Lead Arranger

and Lead Manager

Sports Toto Malaysia Sdn Bhd

1st Issue: RM500 Million

Medium Term Notes Programme

of up to RM800.0 Million in

Nominal Value

June 2010

Joint Lead Manager

RM320.0 Million

Islamic Medium Term Notes

Issuance

April 2010

Joint Lead Arranger and Joint Lead

Manager

Cagamas Berhad

RM300 Million

Conventional Commercial

Papers Issuance under the

RM60.0 Billion Programme

May 2010

Lead Manager

Cagamas Berhad

RM500 Million

Islamic Commercial Papers

Issuance under the RM60.0

Billion Programme

June 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

April 2010

Lead Manager

Tresor Assets Berhad

RM100 Million

Tranche G

Issuance of Asset-Backed

Securities under the RM1.5 Billion

ABS Programme

April 2010

Joint Principal Adviser, Joint Lead

Arranger and Joint Lead Manager

Cagamas Berhad

RM1,060 Million


Papers and Islamic Medium

Term Notes Issuance under the


May 2010

Lead Manager

Cagamas Berhad

RM300 Million



Billion Programme

May 2010

Lead Manager

AmBank (M) Berhad

2nd Issuance: RM1,325 Million

RM7.0 BillionSenior Notes

Issuance Programme

April 2010

Lead Manager

Gamuda Berhad

RM320 Million


Issuance

April 2010

Joint Lead Manager

AmBank (M) Berhad

1st Issuance: RM1,420 Million


Issuance Programme

March 2010


and Lead Manager

Cagamas Berhad

RM200 Million




February 2010

Joint Lead Manager

Cagamas Berhad

RM500 Million

Islamic Commercial Papers and



Billion Programme

February 2010

Joint Lead Manager

Lafarge Malayan Cement Berhad

RM350 Million

Islamic Securities Programme

March 2010


and Lead Manager


RM100 Million

Tranche F



ABS Programme

January 2010




RM100 Million

Tranche H



ABS Programme

July 2010



AmBank (M) Berhad

3rd Issuance: RM100 Million

RM7.0 Billion Senior Notes

Issuance Programme

July 2010

Lead Manager

Woori Bank

RM320 Million

Up to RM1.0 Billion Medium Term

Notes Programme

July 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM100 Million




August 2010

Lead Manager

BerjayaCity Sdn Bhd

RM105 Million

Up to RM150 Million Medium Term

Notes Programme Guaranteed by

Danajamin Nasional Berhad

August 2010


and Lead Manager

RM660 Million


Programme

September 2010

Lead Manager

AmIslamic Bank Berhad

1st Issuance: RM550 Million

RM3.0 Billion Senior Sukuk

Issuance Programme

September 2010


and Lead Manager

Sabah Development Bank Berhad

RM290 Million

Medium Term Notes Issuance

under the RM1.5 Billion

Programme

August 2010

Joint Lead Manager

MISC Berhad

RM500 Million

RM2.5 Billion Islamic Medium

Term Notes Programme

September 2010

Joint Lead Manager


RM83.8 Million

Tranche I



ABS Programme

September 2010



1Malaysia Development Berhad

RM2,500 Million

USD300 Million

Syndicated Term Loan Facility

September 2010

Mandated Lead Arranger /

Bookrunner (MYR)


Page 21

RM336 Million


Programme

June 2010

Lead Manager


Tinggi Nasional




Facility



Ara Bintang Berhad





Property

June 2010


and Lead Manager





Nominal Value

June 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM300 Million




May 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

June 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

April 2010

Lead Manager


RM100 Million

Tranche G



ABS Programme

April 2010



Cagamas Berhad

RM1,060 Million





May 2010

Lead Manager

Cagamas Berhad

RM300 Million



Billion Programme

May 2010

Lead Manager

AmBank (M) Berhad



Issuance Programme

April 2010

Lead Manager

Gamuda Berhad

RM320 Million


Issuance

April 2010

Joint Lead Manager

AmBank (M) Berhad



Issuance Programme

March 2010


and Lead Manager

Cagamas Berhad

RM200 Million




February 2010

Joint Lead Manager

Cagamas Berhad

RM500 Million




Billion Programme

February 2010

Joint Lead Manager


RM350 Million


March 2010


and Lead Manager


RM100 Million

Tranche F



ABS Programme

January 2010




RM100 Million

Tranche H



ABS Programme

July 2010



AmBank (M) Berhad



Issuance Programme

July 2010

Lead Manager

Woori Bank

RM320 Million


Notes Programme

July 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM100 Million




August 2010

Lead Manager

BerjayaCity Sdn Bhd

RM105 Million




August 2010


and Lead Manager

RM660 Million


Programme

September 2010

Lead Manager




Issuance Programme

September 2010


and Lead Manager


RM290 Million



Programme

August 2010

Joint Lead Manager

MISC Berhad

RM500 Million



September 2010

Joint Lead Manager


RM83.8 Million

Tranche I



ABS Programme

September 2010




RM2,500 Million

USD300 Million


September 2010


Bookrunner (MYR)


Page 21

RM336 Million


Programme

June 2010

Lead Manager


Tinggi Nasional




Facility



Ara Bintang Berhad





Property

June 2010


and Lead Manager





Nominal Value

June 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM300 Million




May 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

June 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

April 2010

Lead Manager


RM100 Million

Tranche G



ABS Programme

April 2010



Cagamas Berhad

RM1,060 Million





May 2010

Lead Manager

Cagamas Berhad

RM300 Million



Billion Programme

May 2010

Lead Manager

AmBank (M) Berhad



Issuance Programme

April 2010

Lead Manager

Gamuda Berhad

RM320 Million


Issuance

April 2010

Joint Lead Manager

AmBank (M) Berhad



Issuance Programme

March 2010


and Lead Manager

Cagamas Berhad

RM200 Million




February 2010

Joint Lead Manager

Cagamas Berhad

RM500 Million




Billion Programme

February 2010

Joint Lead Manager


RM350 Million


March 2010


and Lead Manager


RM100 Million

Tranche F



ABS Programme

January 2010




RM100 Million

Tranche H



ABS Programme

July 2010



AmBank (M) Berhad



Issuance Programme

July 2010

Lead Manager

Woori Bank

RM320 Million


Notes Programme

July 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM100 Million




August 2010

Lead Manager

BerjayaCity Sdn Bhd

RM105 Million




August 2010


and Lead Manager

RM660 Million


Programme

September 2010

Lead Manager




Issuance Programme

September 2010


and Lead Manager


RM290 Million



Programme

August 2010

Joint Lead Manager

MISC Berhad

RM500 Million



September 2010

Joint Lead Manager


RM83.8 Million

Tranche I



ABS Programme

September 2010




RM2,500 Million

USD300 Million


September 2010


Bookrunner (MYR)


Page 21

RM336 Million


Programme

June 2010

Lead Manager


Tinggi Nasional




Facility



Ara Bintang Berhad





Property

June 2010


and Lead Manager





Nominal Value

June 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM300 Million




May 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

June 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

April 2010

Lead Manager


RM100 Million

Tranche G



ABS Programme

April 2010



Cagamas Berhad

RM1,060 Million





May 2010

Lead Manager

Cagamas Berhad

RM300 Million



Billion Programme

May 2010

Lead Manager

AmBank (M) Berhad



Issuance Programme

April 2010

Lead Manager

Gamuda Berhad

RM320 Million


Issuance

April 2010

Joint Lead Manager

AmBank (M) Berhad



Issuance Programme

March 2010


and Lead Manager

Cagamas Berhad

RM200 Million




February 2010

Joint Lead Manager

Cagamas Berhad

RM500 Million




Billion Programme

February 2010

Joint Lead Manager


RM350 Million


March 2010


and Lead Manager


RM100 Million

Tranche F



ABS Programme

January 2010




RM100 Million

Tranche H



ABS Programme

July 2010



AmBank (M) Berhad



Issuance Programme

July 2010

Lead Manager

Woori Bank

RM320 Million


Notes Programme

July 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM100 Million




August 2010

Lead Manager

BerjayaCity Sdn Bhd

RM105 Million




August 2010


and Lead Manager

RM660 Million


Programme

September 2010

Lead Manager




Issuance Programme

September 2010


and Lead Manager


RM290 Million



Programme

August 2010

Joint Lead Manager

MISC Berhad

RM500 Million



September 2010

Joint Lead Manager


RM83.8 Million

Tranche I



ABS Programme

September 2010




RM2,500 Million

USD300 Million


September 2010


Bookrunner (MYR)


Page 21

RM336 Million


Programme

June 2010

Lead Manager


Tinggi Nasional




Facility



Ara Bintang Berhad





Property

June 2010


and Lead Manager





Nominal Value

June 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM300 Million




May 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

June 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

April 2010

Lead Manager


RM100 Million

Tranche G



ABS Programme

April 2010



Cagamas Berhad

RM1,060 Million





May 2010

Lead Manager

Cagamas Berhad

RM300 Million



Billion Programme

May 2010

Lead Manager

AmBank (M) Berhad



Issuance Programme

April 2010

Lead Manager

Gamuda Berhad

RM320 Million


Issuance

April 2010

Joint Lead Manager

AmBank (M) Berhad



Issuance Programme

March 2010


and Lead Manager

Cagamas Berhad

RM200 Million




February 2010

Joint Lead Manager

Cagamas Berhad

RM500 Million




Billion Programme

February 2010

Joint Lead Manager


RM350 Million


March 2010


and Lead Manager


RM100 Million

Tranche F



ABS Programme

January 2010




RM100 Million

Tranche H



ABS Programme

July 2010



AmBank (M) Berhad



Issuance Programme

July 2010

Lead Manager

Woori Bank

RM320 Million


Notes Programme

July 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM100 Million




August 2010

Lead Manager

BerjayaCity Sdn Bhd

RM105 Million




August 2010


and Lead Manager

RM660 Million


Programme

September 2010

Lead Manager




Issuance Programme

September 2010


and Lead Manager


RM290 Million



Programme

August 2010

Joint Lead Manager

MISC Berhad

RM500 Million



September 2010

Joint Lead Manager


RM83.8 Million

Tranche I



ABS Programme

September 2010




RM2,500 Million

USD300 Million


September 2010


Bookrunner (MYR)


Page 21

RM336 Million


Programme

June 2010

Lead Manager


Tinggi Nasional




Facility



Ara Bintang Berhad





Property

June 2010


and Lead Manager





Nominal Value

June 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM300 Million




May 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

June 2010

Lead Manager

Cagamas Berhad

RM500 Million



Billion Programme

April 2010

Lead Manager


RM100 Million

Tranche G



ABS Programme

April 2010



Cagamas Berhad

RM1,060 Million





May 2010

Lead Manager

Cagamas Berhad

RM300 Million



Billion Programme

May 2010

Lead Manager

AmBank (M) Berhad



Issuance Programme

April 2010

Lead Manager

Gamuda Berhad

RM320 Million


Issuance

April 2010

Joint Lead Manager

AmBank (M) Berhad



Issuance Programme

March 2010


and Lead Manager

Cagamas Berhad

RM200 Million




February 2010

Joint Lead Manager

Cagamas Berhad

RM500 Million




Billion Programme

February 2010

Joint Lead Manager


RM350 Million


March 2010


and Lead Manager


RM100 Million

Tranche F



ABS Programme

January 2010




RM100 Million

Tranche H



ABS Programme

July 2010



AmBank (M) Berhad



Issuance Programme

July 2010

Lead Manager

Woori Bank

RM320 Million


Notes Programme

July 2010

Joint Lead Manager

RM320.0 Million


Issuance

April 2010


Manager

Cagamas Berhad

RM100 Million




August 2010

Lead Manager

BerjayaCity Sdn Bhd

RM105 Million




August 2010


and Lead Manager

RM660 Million


Programme

September 2010

Lead Manager




Issuance Programme

September 2010


and Lead Manager


RM290 Million



Programme

August 2010

Joint Lead Manager

MISC Berhad

RM500 Million



September 2010

Joint Lead Manager


RM83.8 Million

Tranche I



ABS Programme

September 2010




RM2,500 Million

USD300 Million


September 2010


Bookrunner (MYR)

Ivory Properties

Group Berhad

Market Capitalisation:

RM186 million

Adviser, Managing

Underwriter, Underwriter &

Sole Placement Agent

July 2010

SIG Gases Berhad


RM87 million

Adviser, Sole Underwriter

and Sole Placement Agent

August 2010

Berjaya Retail Berhad


RM748.7 million

Adviser

August 2010

Sinotop Holdings

Berhad

RM60.6 million

Renounceable Rights

Issue

Joint Adviser

August 2010

Multi Sports Holdings

Ltd

RM34.2 million

Renounceable Rights

Issue

Adviser

August 2010

Eduspec Holdings

Berhad

RM2.9 million

Private Placement


August 2010

Three-A Resources

Berhad

RM41.5 million

Private Placement


July 2010

MeasatGlobal Berhad

RM662.3 million

IA for the conditional take-over

offer of Measat Global Berhad

23 September 2010

Shin Yang Shipping

Corporation Berhad


RM1,320 million

Adviser, Managing

Underwriter, Joint

Underwriter, Joint Global Co-

ordinator, Joint Bookrunner

and Joint Lead Manager

June 2010


Ratings upgraded

0

2

4

6

8

2007 2008 2009 2010

A1

AA3

AA2

A2

AA3/P1/Stable

AA3/P1/Stable

AA3/P1/Stable

AA3/P1/Stable

0

2

4

6

8

2007 2008 2009 2010

BBB-

BBB

BBB+

BB+

BB+/B/Stable

BBB-/F3/Stable

BBB/F3/Stable

BB+/B/Positive

0

2

4

6

8

2007 2008 2009 2010

BBB

BBB+

BB+

BBB-BB+/B/Stable

BBB-/A-3/Positive

BB+/B/Stable

BBB-/A-3/Positive

0

2

4

6

8

2007 2008 2009 2010

AA-

AA

AA+

A+

AA-/MARC-1/Stable

AA-/MARC-1/Stable

AA-/MARC-1/Stable

AA-/MARC-1/Positive

0

2

4

6

8

2007 2008 2009 2010

A1

AA3

AA2

A2

A2/P1/Stable

A1/P1/Stable

AA3/P1/Stable

0

2

4

6

8

2007 2008 2009 2010

BBB-

BBB

BBB+

BB+

BBB-/F3/Stable

BBB-/F3/Positive

BBB-/F3/Stable

BBB/F3/Stable

0

2

4

6

8

2007 2008 2009 2010

BBB-

BBB

BBB+

BB+

BBB-/A-3/Stable

BBB-/A-3/Stable

BBB-/A-3/Stable

BBB-/A-3/Positive

0

2

4

6

8

2007 2008 2009 2010

Baa2

Baa1

A3

Baa3

Baa2/P-3/D-Stable

Baa2/P-3/D-Stable

Baa2/P-3/D-Stable

Baa2/P-3/DStable

0

2

4

6

8

2007 2008 2009 2010

BBB-

BBB

BBB+

BB+

BBB-/A3/Stable

BBB-/A3/Stable

BBB-/A3/Positive

BBB-/A3/Positive

A1/P1/Stable

AmBank (M) Berhad AmInvestment Bank Berhad


0

2

4

6

8

2007 2008 2009 2010

A1

AA3

AA2

A2

AA3/P1/Stable

AA3/P1/StableA1/P1/

StableA2/P1/Stable

RAM

Fitch

S&P

Moody’s

CapitalIntelligence

RAM

MARC

S&P

Fitch

RAM

#

# : Based on Dec 09

reflected system outlook

#

#

#

negative outlook issued in July 2009 but moved up to stable in December 2009


20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10

Date

MBB PBB CIMB RHBC AMMB HLFG KLCI Index

Banking sector share price movement / Target price and recommendations

Target Price and Recommendations RM’mil H1FY2011

Share Capital 3,014.2

Reserves 6,821.1

Shareholders’ Equity 9,835.2

Less: Intangible Assets (1,824.9)

NTA 8,010.3

NTA Per Ordinary Share (RM) 2.66

Net Asset Per Ordinary Share (RM)

3.26

Market Price (RM) 5.93

Price to Book, PBV [NTA / Net Asset]

1.82 / 2.23

EPS (sen) – basic, annualised 46.7

Price to earnings, PE 12.71

Dividend (gross sen / share)Interim 6

sen / share

p/q index change at close of 30 September 10 vs 18 May 07

(strategic partnership with ANZ)

30 September 1018 May 07 (strategic partnership with ANZ)

Banking Sector Share Price Movement

Index Movement (May 07 = 100)

Source : Bloomberg

As at 4 November 2010

100% base index

RHBC p + 53.2% (RM7.23)

AMMB p + 51.5% (RM5.93)

CIMB p + 37.3% (RM8.17)

HLFG p + 33.2% (RM9.06)

PBB p + 32.4% (RM12.56)

KLCI Index p + 7.9% (1,463.50)

MBB q – 2.0% (RM8.80)

Index change market price close of 4 November 10 vs. 29 October 10 Buy/Outperform/Overweight/Add

P/EPS : EPS annualized Apr-Mar 10 P/BV : BV as at 30 June 2010

TP: target price CP: weekly average closing priceSell/Underperform/Fully valued/Reduce/Underweight

Hold / Neutral / Market perform


Research Coverage

Research House Analyst

1 Affin Investment Bank Tan Ei Leen

2 Alliance Research Sdn Bhd Soh Meng Hui

3 Bank of America – Merrill Lynch Research Alistair Scarff / Tay Chin Seng

4 BNP Paribas Securities (Singapore) Pte Ltd Ng Wee Siang

5 CIMB Investment Bank Berhad Winson Ng

6 Citi Investment Research Fiona Leong

7 CLSA Securities Malaysia Sdn Bhd Loong Chee Wei

8 Deutsche Bank Malaysia Andrew Hill

9 ECM Libra Investment Research Bernard Ching

10 HLG Research Low Yee Huap

11 HwangDBS Vickers Research Sdn Bhd Lim Sue Lin

12 Inter-Pacific Research Sdn Bhd Sean Liong Cheng Fatt

13 J.P. Morgan Harsh Modi

14 KAF - Seagroatt & Campbell Securities Sdn Bhd Chehan Perera

15 Kenanga Investment Bank Berhad Chan Chee Kin

16 Kim Eng Research Sdn Bhd Yew Chee Yoon

17 Macquarie Capital Securities (Singapore) Pte Ltd Matthew Smith

18 Maybank Investment Bank Berhad Wong Chew Hann

19 MIDF Research Kelvin Ong

20 Nomura Malaysia Sdn Bhd Julian Chua

21 OSK Research Sdn Bhd Keith Wee

22 RHB Research Institute Sdn Bhd David Chong

23 Standard Chartered Bank Natasha Midgley

24 TA Securities Holdings Berhad Wong Li Hsia

25 UBS Securities Malaysia Sdn Bhd Khairul Rifaie

26 UOB Kay Hian Research Pte Ltd Vincent Khoo / Leow Huey Chuen


RM5.93 30.9.10

RM5.98 52-week HIGH

RM4.34 52-week LOW

Price

Price

performance

AMMB KLCI

1 month +4.8% +2.9%

3 months +18.8% +11.4%

12 months +39.2% +21.8%

24 months +100.3% +43.7%

36 months +38.9% +9.5%

5.4 mil 1 month

5.5 mil 3 months

5.0 mil 12 months

Volume

(daily

average)


Glossary / Disclaimer of warranty and limitation of liability

Reported PerformanceReported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market

One OffsOne offs comprise those impacts on financial performance that arise from changes to :

• accounting and provisioning policies (eg 5 and 7 year rules)• differences between economic and accounting hedges• prior period catch ups (eg backdated salary costs)• strategic investments and divestments (eg ANZ partnership), and • tax and regulatory regimes (eg deferred tax asset write off due to reduction in corporate tax rates)

Underlying PerformanceUnderlying performance refers to the financial performance adjusted for one off impacts as above

Business SegmentsBusiness segments

• comprise AmBank Group’s core operating businesses that generate profits from direct customer transactions and interactions• have relatively more stable income streams, incur the bulk of the costs and typically have a lower risk profile• in most instances have market shares and growth metrics that can be measured and benchmarked externally

Operating SegmentsOperating segments

• have more volatile and lumpy income streams, with the former a direct function of risk appetite • include

• income and expenses associated with shareholder funds, loan rehabilitation and legacy businesses, plus• costs associated with corporate, shared services and governance functions currently not charged back to the business units

The information provided is believed to be correct at the time of presentation. AMMB Holdings Berhad or AMMB Holdings or “AHB” or its affiliates do not make any representation or warranty, express or implied, as to the adequacy, accuracy, completeness or fairness of any such information and opinion contained and shall not be liable for any consequences of any reliance thereon. Neither AMMB Holdings nor its affiliates are acting as your financial advisor or agent. The individual is responsible to make your own independent assessment of the information herein and should not treat such content as advice relating to legal, accounting, and taxation or investment matters and should consult your own advisers.

Forward looking statements are based upon the current beliefs and expectations of the AMMB Holdings and are subject to signif icant risks and uncertainties. Actual results may differ from those set forth in the forward looking statements. AMMB Holdings does not undertake to update the forward looking statements to reflect impact of circumstances or events that may arise after the date of this presentation.

The information in the presentation is not and should not be construed as an offer or recommendation to buy or sell securitie s. Neither does this presentation purport to contain all the information that a prospective investor may require. Because it is not possible for AMMB Holdings or its affiliates to have r egard to the investment objectives, financial situation and particular needs of each individual who reads the information contained thus the information presented may not be appropriate for all pe rsons.

The information contained is not allowed to 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 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.

Disclaimer of Warranty and Limitation of Liability


The material in this presentation is general background information about AmBank Group’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.

These should be considered, with or without professional advice when deciding if an investment is appropriate.

For further information, visit :

www.ambankgroup.com

or contact

Ganesh Kumar Nadarajah

Head, Group Investor Relations

Tel : +603 2036 1435 Fax : +603 2031 7384 e-mail : [email protected] or+6012 2974799 [email protected]

Documents

AmBank Group Results · PDF fileAmBank Group Results Investors Presentation H1FY2011 Results Update 12 November 2010 Cheah Tek Kuang Group Managing Director (Conventional + Islamic)