Investor Presentation...0 Humanising Financial Services Investor Presentation Financial Results 2Q FY2018 and 1H FY2018 ended 30 June 2018 30 August 2018 1 Table of Contents Executive

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Humanising Financial Services

Investor Presentation

Financial Results2Q FY2018 and 1H FY2018 ended 30 June 2018

30 August 2018

1

Table of Contents

Executive Summary 2

Results Overview 4

Prospects & Outlook 18

Appendix:

1. Financial Performance 21

2. Community Financial Services 32

3. Global Banking 35

4. Maybank Singapore 39

5. Maybank Indonesia 42

6. Other segments 45

7. Affiliates 50

Financial Results: 2Q FY2018 and 1H FY2018 ended 30 June 2018

2

Net Profit improved

by 13.9% YoY

Maybank Group 1H FY2018 OverviewNet profit growth of 13.9% YoY to RM3.83 billion supported by rise in PPOP and lower net impairment losses

• Growth in net operating income of 3.2% YoY from higher net fee based income of 7.4% YoY

on stronger net earned insurance premiums

• Net fund based income increased 1.6% YoY as Group loans expanded 4.6% YoY

• Lower overhead expenses by 1.2% YoY, leading to a rise in PPOP of 7.3% YoY

• CIR of 46.9% within Group guidance of ~48%, with positive JAWS position of 4.4% YoY

• Lower net impairment losses of 22.9% YoY

1

• Robust liquidity risk indicators with Group LCR at 144.9%, Group LDR at 92.8%, Group LTF

at 86.3% and Group LTFE at 76.0%

• Total capital and fully loaded CET1 capital ratios at 17.78%* & 13.16%* respectively as at

30 Jun 2018

• Interim dividend of 25 sen per share, with a higher cash component of 15 sen (1H FY2017:

23 sen interim dividend; 5 sen cash component)

Robust Liquidity

and Capital Positions

4

Steady PPOP

growth QoQ

2• PPOP growth of 3.0% QoQ was supported by improved net fee based income growth of 6.2%

and lower overhead expenses by 2.7%

• Net profit was 4.7% higher QoQ despite higher net impairment losses

Note: *After proposed dividend and assumption of 85% reinvestment rate.

Asset Quality

Indicators

3 • Group GIL ratio at 2.64% as at Jun 2018

• Net credit charge off at 44 bps for 1H FY2018

• Loan loss coverage ratio including regulatory reserve of 93.6% as at end Jun 2018

3

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


4

P&L Summary: 1H FY2018PPOP up by 7.3% YoY to RM6.19 billion, with net profit rising by 13.9% YoY on lower net impairment losses

Note:

* From consolidated Group numbers, Insurance and Takaful accounts for 6.4% of net fund based income and 3.7% of net fee-based income

¹ Pre-provisioning operating profit (PPOP) is equivalent to operating profit before impairment losses

² Net Profit is equivalent to profit attributable to equity holders of the Bank

More

details

onRM million

1H

FY2018

1H

FY2017YoY

2Q

FY2018

1Q

FY2018QoQ

2Q

FY2017YoY

s.23 Net fund based income * 8,393.1 8,261.4 1.6% 4,155.2 4,237.9 (2.0)% 4,143.5 0.3%

s.7/

23/25 Net fee based income * 3,278.6 3,052.9 7.4% 1,688.7 1,589.9 6.2% 1,640.8 2.9%

s.21/

22 Net operating income 11,671.7 11,314.3 3.2% 5,843.9 5,827.8 0.3% 5,784.3 1.0%

s.8 Overhead expenses (5,483.1) (5,547.8) (1.2)% (2,704.3) (2,778.8) (2.7)% (2,768.5) (2.3)%

s.22 Pre-provisioning operating profit (PPOP) 1 6,188.5 5,766.4 7.3% 3,139.6 3,048.9 3.0% 3,015.8 4.1%

Net impairment losses (1,063.3) (1,378.5) (22.9)% (562.5) (500.8) 12.3% (835.7) (32.7)%

Operating profit 5,125.2 4,387.9 16.8% 2,577.1 2,548.1 1.1% 2,180.1 18.2%

s.21 Profit before taxation and zakat (PBT) 5,166.2 4,493.6 15.0% 2,609.6 2,556.7 2.1% 2,244.5 16.3%

Net Profit 2 3,830.0 3,361.2 13.9% 1,959.0 1,871.0 4.7% 1,658.4 18.1%

EPS - Basic (sen) 35.2 32.8 7.4% 17.9 17.3 3.9% 16.1 11.7%

5

21.1 22.6

17.2 19.3

Jun 17 Jun 18

Community Financial Services Global Banking

197.1 209.0

78.0 81.6

Jun 17 Jun 18

+4.6%

+12.4%

123.2 125.4

Jun 17 Jun 18

93.5 98.3

29.3 32.6

Jun 17 Jun 18

+11.5%

44.7 47.6

Jun 17 Jun 18

480.1 502.4

Jun 17 Jun 18

Net Fund Based Income: 1H FY2018 YoY Trends (1/2)Loans growth across home markets predominantly supported by CASA growth

273.8

38.5

123.1

RM

billion

SG

D b

illion

IDR

tri

llio

n

Gross Loans (YoY)

6.1% 8.9% 6.6% 4.6% (Reported)

RM

billion

Group Malaysia Singapore Indonesia

41.9

290.5 131.2

13.4 14.0

Jun 17 Jun 18

188.2 189.3

Jun 17 Jun 18

1.7%

+6.0%

0.6% (Reported) 4.7% 6.3%

+7.2%

+5.1%

31.7% 29.8%40.4% 37.3%36.8% 35.1% 37.2% 41.8%CASA

Ratio:

Note:

• Industry loans growth for Malaysia is 5.0%, Singapore is 9.9% and Indonesia is 10.7%

• CASA ratio for Group and Malaysia includes investment accounts

• Refer to pages 26-28 for detailed information on loans and deposits growth by country and products.

7.5% (Normalised)

2.8% (Normalised)

CASA (YoY)

RM

billion

RM

billion

SG

D b

illion

IDR

tri

llio

n

6

2.39

2.35

2.30

2.39

2.27

2Q FY2017 3Q FY2017 4Q FY2017 1Q FY2018 2Q FY2018

2.31 2.31

2.27

2.36

2.33

FY2014 FY2015 FY2016 FY2017 1H FY2018

Net Interest Margin (%)

QoQ Trend 5 Year Trend

Net Fund Based Income: 1H FY2018 (2/2)NIM compression mainly from increased Group liquidity in 2Q FY2018

7

3,053 2,933

219

2,510

(2,609)

3,279

2,310

295

3,001

(2,327)

Total Other Operating Income Fee Income fromIslamic Operations

Net Earned InsurancePremiums

Net Insurance Benefits& Claims Incurred, Net

Fee & CommissionExpenses, Change in

Expense Liabilities andLife & Takaful Fund Tax

1H FY2017

1H FY2018

RM

million

RM million 1H FY2017 1H FY2018 YoY

Commission, service charges and fees 1,712 1,693 (1.1)%

Investment & Trading Income 533 85 (84.1)%

Unrealised gain/ (losses) on securities 249 (133) (>100)%

Realised and Unrealised gain/ (losses) on derivatives 169 58 (65.6)%

Foreign Exchange Profit 124 399 >100%

Other Income 146 208 42.3%

Net Fee Based Income: 1H FY2018Net fee based income growth driven by higher net earned insurance premiums

(21.2)% 34.6% 19.6% 7.4% (10.8)%

8

Overheads: 1H FY2018Overheads reduced by 1.2% YoY on lower establishment costs and A&G expenses, Group CIR at 46.9% for 1H FY2018

Note:

¹ Total cost excludes amortisation of intangible assets for Maybank Indonesia and Maybank Kim Eng

RM million1H

FY2018

1H

FY2017YoY

2Q

FY2018

1Q

FY2018QoQ

2Q

FY2017YoY

Personnel Costs 3,141.3 3,049.0 3.0% 1,550.7 1,590.6 (2.5)% 1,545.0 0.4%

Establishment Costs 873.4 941.9 (7.3)% 416.1 457.2 (9.0)% 459.6 (9.5)%

Marketing Expenses 265.3 245.1 8.2% 122.5 142.8 (14.3)% 109.8 11.5%

Administration & General

Expenses 1,203.2 1,311.8 (8.3)% 615.0 588.1 4.6% 654.1 (6.0)%

Total 5,483.1 5,547.8 (1.2)% 2,704.3 2,778.8 (2.7)% 2,768.5 (2.3)%

%1H

FY2018

1H

FY2017YoY

2Q

FY2018

1Q

FY2018QoQ

2Q

FY2017YoY

Total Cost to Income ¹ 46.9 48.9 (2.0)% 46.2 47.6 (1.4)% 47.7 (1.5)%

Group JAWS Position 4.4% 3.0% 3.3%

9

830.3

386.5

199.8

509.3 582.1

1,372.8

1,091.5

2QFY2017

3QFY2017

4QFY2017

1QFY2018

2QFY2018

1HFY2017

1HFY2018

Allowances for losses on loans

70.1% 71.7% 71.5%87.9%1

80.7%

92.6% 93.5% 95.3%99.6%1

93.6%

Loan loss coverage incl. Regulatory Reserve

Loan loss coverage

Allowances for Losses on Loans

Asset Quality1H FY2018 net credit charge off rate of 44 bps with Group GIL ratio at 2.64%

RM

million

GIL Ratio ComponentsJun

2018

Mar

2018

Dec

2017

Sep

2017

Jun

2017

Non Performing Loans

(NPL)1.81% 1.87% 1.80% 1.97% 1.79%

Restructured &

Rescheduled (R&R)0.22% 0.26% 0.27% 0.32% 0.37%

Performing Loans

Impaired Due to

Judgmental/ Obligatory

Triggers (IPL)

0.61% 0.24% 0.27% 0.21% 0.37%

GIL Ratio 2.64% 2.37% 2.34% 2.50% 2.53%

Group Gross Impaired Loans (GIL) Ratio Composition

2.12% 2.06% 1.91% 2.22% 2.13%

2.29% 2.31% 2.36% 2.34% 3.68%

4.42% 4.47%

3.56%4.21% 4.05%

Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018

Malaysia Singapore Indonesia

GIL Ratio by Home Markets

Note:

¹ Restated loan loss coverage for 1Q FY2018 to include ECL for loans at FVOCI as per Note A11(xii) of the Group’s Financial Statements

10

Asset Quality by Line of BusinessQoQ uptick seen in selected segments and markets

Mortgage Auto Finance Credit Cards

Retail SME Business Banking Corporate Banking

Consumer

Business

Note:

• In Malaysia, industry GIL ratio for mortgage (purchase of residential property) is 1.1%, 1.0% for auto finance, and 1.0% for credit cards.

• In Singapore, industry GIL figure is only available for mortgage, which was 0.4% as at June 2018.

• In Indonesia, Business Banking includes Commercial, SME and Micro loans. Maybank Indonesia’s GIL ratios are mapped in accordance to its local regulatory reporting requirements and

does not include R&R.

0.60% 0.63% 0.61%0.83% 0.85%

0.60% 0.56% 0.56% 0.51% 0.46%

2.22% 2.38% 2.14% 2.30%2.59%


0.53% 0.53% 0.50%0.69% 0.67%

0.27% 0.23% 0.26% 0.24% 0.22%

1.40% 1.44%

0.98%1.08%

1.42%


0.80% 0.78% 0.77% 0.83% 0.88%

1.95% 1.86% 1.75% 1.79%

1.83%

2.67%2.37%

1.73% 1.84%

1.78%


1.97% 1.92% 1.58% 2.34% 2.26%

4.06% 4.07% 4.14% 4.23%

7.66%

11.32% 11.02%

7.84%8.45%

7.05%


2.05% 2.02% 2.01%

2.39%2.51%2.39% 2.18% 2.27%

2.18% 2.19%2.18%

2.44% 2.27% 2.53% 2.86%


12.50% 12.24% 12.05% 12.30%11.40%

2.67% 2.80% 2.68%

2.57% 2.61%1.93% 2.04% 2.23%

2.60% 2.73%


Malaysia Singapore Indonesia

11

Asset Quality in Singapore (1/2)Our exposure to Hyflux Group

Key Facts:

No debt exposure at

Hyflux Ltd (Hyflux) Group

level

Debt exposures are for

project financing of (i)

Tuaspring’s Integrated

Water and Power Plant

(IWPP) and (ii) TuasOne’s

Waste-to-Energy (WTE)

Plant

Both project financing

exposures are fully

secured against the

respective project assets

Total Exposure as at 30 June 2018

Circa SGD658.6 million

Cc. SGD602.4 million to Tuaspring:

About 86% of the total exposure is for a term loan for the

development of Tuaspring’s IWPP, the largest IWPP in SEA. The

integrated water and power plant is currently owned, operated and

maintained by Tuaspring Pte Ltd, with desalinated water being

supplied to the Public Utilities Board (PUB) of Singapore under a

long term concession.

The remaining exposure is a standby letter of credit for securing gas

supplies and a marked-to-market derivative (MTM DV) exposure for

interest rate and commodity hedging.

Maybank is the sole secured lender.

Cc. SGD56.2 million to TuasOne as part of a larger syndicated loan:

About 83% of our exposure to TuasOne is for a term loan to

construct the WTE plant by TuasOne Pte Ltd. The plant is scheduled

for completion by May 2019 and will be operated under a long term

concession granted by the National Environment Agency of

Singapore.

The remaining exposure is an MTM DV exposure for interest rate

hedging (for term loan).

Maybank is one of the secured lenders.

12

Asset Quality in Singapore (2/2)Impairment and Provisioning Rationale for Hyflux Exposure

Maybank

Singapore’s

Power Sector

Exposure as at

30 June 2018:

4.10% of

Singapore’s

loan book

1.01% of

Group’s loan

book

Based on our conservative credit assessment, we have impaired our collective Tuaspring and

TuasOne exposure (previously classified as Stage 2 credit) totalling SGD658.6 million (RM1.95

billion) as at 30 June 2018.

We have exercised prudence with the impairment of TuasOne, despite satisfactory conduct

of the account with no overdue payments.

Collective loan provisioning made for Tuaspring and TuasOne in 2Q FY2018 income statement

was SGD106.3 million (RM315.11 million).

Our provisioning assessment has taken into consideration the below:

Based on court affidavits filed by Tuaspring Pte Ltd director Cheong Aik Hock in June &

July’ 18:

Tuaspring IWPP has a book value of approximately SGD1.3 billion.

Hyflux is in discussions with four parties on the potential sale of Tuaspring IWPP.

“Spark spreads” have turned positive since Feb 2018, enabling Tuaspring to cover short-

run marginal costs since Mar 2018. “Spark spreads” is the difference between price

received for electricity produced and natural gas cost for producing that electricity.

Hyflux further announced on 6th July that Tuaspring Pte Ltd and Maybank reached an

agreement over Tuaspring’s IWPP divestment process. Maybank will be actively involved

and engaged in the divestment process and will appoint the valuer. Meanwhile, Tuaspring

will appoint a monitoring accountant and special accountant to monitor the cash flow and

review the divestment process, with reports shared with Maybank.

The agreement states that Tuaspring is to execute a binding agreement with a successful

bidder or investor by 15 Oct 2018, obtain approval for the transaction from Maybank, PUB

and/or the Singapore High Court (if necessary) by 11 Dec 2018 and shareholders approval

by 4 Feb 2019.

Maybank’s total credit exposure to Tuaspring is less than 50% of the IWPP book value.

13

51%

33%

1%

15%

Normal

Watchlist

Special Mention Account

GIL

88% comes

from

supporting

upstream

Oil & Gas Exposure: 30 June 2018Maybank Group’s exposure to direct and indirect oil and gas borrowers

Borrowers’ Status:

Segmental Exposure:

Direct & Indirect Oil & Gas:

Borrowers with O&G related exposure

Notes:

Supporting upstream includes services activities incidental to crude oil and

natural gas extraction including surveying. This includes providers of

services/ activities related to O&G industry.

Oil & GasLoan

exposure

Maybank Group 3.86%

Malaysia 2.24%

Singapore 1.35%

Indonesia 0.12%

Others 0.15%

Group exposure of 3.86% includes

funded and non-funded

Excluding non-funded, exposure

is 3.04%

27%

33%

12%

28%

Upstream

Supporting Upstream

Downstream

Supporting Downstream

14

93.8% 94.0% 93.4% 92.5% 92.8%

85.5% 85.8% 85.8% 85.7% 86.3%

75.1% 75.4% 75.4% 75.3% 76.0%


LDR LTF LTFE

145.6% 137.0% 133.1%153.3% 144.9%

LCR

Borrowings, 4%

Capital Instruments, 3%

Customer Funding, 75%

FI Deposits, 8%

Equity, 10%

MYR, 31%

USD, 26%

IDR, 10%

JPY, 9%

SGD, 8%

HKD, 8%

Others, 8%

Liquidity Management: 30 June 2018 Maintained well-diversified funding sources and strong liquidity risk indicators

RM716.7

billionRM47.3

billion

Funding Breakdown

Note:

• Customer Funding comprises Deposits from Customers & Investment Accounts of Customers.

By maturity:

≤ 1 Year 23%

> 1 Year 77%

Borrowings and

Capital Instruments

by Currency

Note: 1) BNM’s minimum LCR requirement for 2018 is 90%

2) LTF is gross loans divided by (deposits + borrowings +

subdebt) while LTFE’s denominator is (deposits +

borrowings + subdebt + equity + capital securities)

3) LDR, LTF & LTFE from Dec 17 onwards excludes loans to banks

and FIs

Liquidity Risk Indicators

15

14.77% 13.63% 13.16%

16.46% 15.20% 14.73%

19.38%18.25% 17.78%

Dec 17 Jun 18 Jun 18

Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

Group

Bank

Strong Capital Position: 30 June 2018Total capital ratio of 17.78% and fully loaded CET1 capital ratio of 13.16% (assuming 85% dividend reinvestment rate)

2018Jan 2019

Onwards

Minimum Common Equity

Tier 1 Capital4.5% 4.5%

Minimum Tier 1 Capital 6.0% 6.0%

Minimum Total Capital 8.0% 8.0%

Capital Conservation

Buffer (Phase in)1.875% 2.500%

Other Capital Buffers

D-SIB Buffer

Countercyclical Capital

buffer

Regulatory Requirements

0% - 2.5%

15.85% 13.32% 12.63%

17.95%15.19% 14.51%

19.31%18.24% 17.56%

Dec 17 Jun 18 Jun 18

Total Capital Ratio Tier 1 Capital Ratio CET 1 Capital Ratio

To be determined

After proposed

dividend,

assuming 85%

reinvestment rate

Before proposed

dividend

16

11

28 3222.5 24

2420 23 25

44

32

36

33

3133 30

3232

FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 1H FY18

Final

Interim

76.5% 74.9%79.9%

74.7%71.9%

78.5% 76.3% 78.1% 78.5%

71.4%

27%13% 11% 12% 20% 25% 19%

27%

67% 60%

Dividend (sen), Payout Ratio (%) and Cash Component (%)

85.9%*

85.7%*

88.2%*85.9%*

88.5%*91.1%*

86.1%*

88.6%*

#

82.6%*

55.060.0

36.0

65.0

53.557.0

84.0%*

DividendPayout Ratio

83.7%*

54.0

87.5%*

89.1%*

52.0

83.5%*

55.0

CashComponent

FY08 FY09 FY10 FY11 FP11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Effective

Cash Dividend

Paid Out

DividendSingle-tier interim dividend of 25 sen consisting of 15 sen cash portion and 10 sen electable portion

60.4% 61.4% 26.2% 17.2% 17.0% 19.0% 22.0% 29.0% 23.2% 28.6% 57.2% 47.2%

85.7%*

Note:

* Actual Reinvestment Rate for Dividend Reinvestment Plan. The Final Dividend for FY17 was paid fully in cash.

# The Net Dividend is 28.5 sen of which 15 sen is single-tier dividend.

• Maybank adopted the single-tier dividend regime with effect from FYE 31 Dec 2012

• Effective payout for interim dividend FY2018 is assuming a reinvestment rate of 85%

17

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


18

Key Indicators Industry Outlook

Indonesia

• GDP (f): 3.5% (2018) vs 3.6% (2017)

• System loan (f): 8.0% (2018) vs 8.0% (2017)

• 3M SIBOR (f): 1.85% (2018) vs 1.50% (2017)

• USD/SGD average (f): 1.35 (2018) vs 1.37 (2017)

• Inflation (f): 0.7% (2018) vs 0.6% (2017)

• GDP (f): 5.2% (2018) vs 5.1% (2017)

• System loan (f): 10.0% (2018) vs 8.2% (2017)

• Reference Rate (f): 5.75% (2018) vs 4.25% (2017)

• USD/IDR average (f): 14,076 (2018) vs 13,397

(2017)

• Inflation average (f): 3.4% (2018) vs 3.8% (2017)

• The momentum of the domestic economic

recovery and government projects should

provide support for credit growth in 2018.

•Sufficient liquidity in the system will enable

lending growth.

• Property cooling measures expected to impact

loan growth in 2H18.

•NIMs to expand from repricing intervals due to

higher rates.Singapore

Market Outlook2018 industry outlook for our home markets

• GDP (f): 4.8% (2018) vs 5.9% (2017)

• System loan (f): 4.5% (2018) vs 4.1% (2017)

• OPR (f): 3.25% (2018) vs 3.00% (2017)

• USD/MYR average (f): 4.00 (2018) vs 4.30 (2017)

• Inflation (f): 0.5%-1.0% (2018) vs 3.7% (2017)

• Loan growth supported by corporate lending

pick-up and stable consumer lending.

• Deposit rate competition in 2H18 likely to

place pressure on NIMs.

• Stable ROEs for banks; manageable MFRS 9

impact.

Malaysia

19

Maintain stable liquidity risk indicators ahead of NSFR adoption in 2019

Maybank Performance OutlookGroup guidance for remaining FY2018

Focus on improving NIM trend after taking a cautious strategy on liquidity in 1H1

3

Managed cost growth with CIR ~48%4

Maintain pricing discipline of loans under new MFRS 9 environment2

Maintain Group ROE KPI of ~11%5

20

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


21

Overseas:

29.9%

61.3%18.9%

12.1%

7.7%

68.7%

9.7%

10.0%

11.6%

57.6%18.8%

15.4%

8.2%

57.7%25.8%

8.3%

8.2%

International & Malaysia Portfolio Mix 1H FY2018

Overseas:

42.3%

1H FY2017

Net Operating Income Profit Before Tax

1H FY2018

Overseas:

42.4%

Overseas:

31.3%

Gross loans*

(Jan 17 – Jun 17)

Overseas:

41.5%

Overseas:

38.7%

(Jan 18 – Jun 18)

RM4.49

billion

RM480.1

billion

RM11.31

billion

RM5.17

billionRM502.4

billionRM11.67

billion

Note:

* Including Islamic loans sold to Cagamas and excludes unwinding of interest

58.5%25.6%

7.3%8.6%

70.1%

11.5%

7.1%

11.3%

Malaysia Singapore Indonesia Others

22

11,314

6,607

3,762

625 143 812

11,672

6,679

3,831

712 45 669

Total Group CommunityFinancial Services

Group CorporateBanking & Global

Markets

Group InvestmentBanking

Group AssetManagement

Group Insurance &Takaful

1H FY2017

1H FY2018

5,766

3,017 2,774

86 64 460

6,189

3,186 2,846

197 (12)

237



Markets




1H FY2017

1H FY2018

Segmental Performance of Businesses: 1H FY2018 (1/2)

Net Operating Income

+3.2%

RM

million

PPOP

+1.1% +13.8% +1.9% (17.6)%

+7.3%

(68.3)%

Group Global Banking (GB) +3.7%


1H FY2017: 4,529 1H FY2018: 4,588

1H FY2017: 2,923 1H FY2018: 3,030

Note:

Net income & PPOP for group includes expenditures of “Head Office & Others” of RM634.1 million for 1H FY2017 and RM265.0 million for 1H FY2018.

RM

million

+2.6% +5.6% +>100% (>100)% (48.5)%

23

3,053

1,545 1,253

477 146 256

3,279

1,581 1,292

540

40 110



Markets




1H FY2017

1H FY2018

8,261

5,062

2,508

148 (4)556

8,393

5,098

2,540

171 5 559



Markets




1H FY2017

1H FY2018

Net Fund Based Income


Net Fee Based Income

+15.5% +>100% +0.7% +1.3% +0.5%

1H FY2017: 2,653 1H FY2018: 2,716

Group Global Banking (GB) (0.2)%

1H FY2017: 1,876 1H FY2018: 1,872

Segmental Performance of Businesses: 1H FY2018 (2/2)

Note:

Net fund based income includes “Head Office & Others” expenditures of RM10.0 million for 1H FY2017 and income of RM20.1 million for 1H FY2018.

Net fee based income includes expenditures of “Head Office & Others” of RM624.1 million for 1H FY2017 and RM285.1 million for 1H FY2018.

+3.1% +2.4%

RM

million

RM

million

+7.4%

+1.6%

+13.3% (72.5)% (57.0)%

24

Unaudited Income Statement for Insurance and Takaful Business

RM million1H

FY2018

1H

FY2017YoY

2Q

FY2018

1Q

FY2018QoQ

2Q

FY2017YoY

Net interest income 559.0 550.2 1.6% 280.8 278.2 0.9% 299.1 (6.1)%

Net earned premiums 3,001.4 2,509.7 19.6% 1,490.0 1,511.4 (1.4)% 1,255.8 18.7%

Other operating income (449.6) 432.1 (204.0)% (387.5) (62.1) 524.0% 172.3 (324.9)%

Total operating income 3,110.9 3,491.9 (10.9)% 1,383.4 1,727.5 (19.9)% 1,727.2 (19.9)%

Net insurance benefits & claims incurred, net fee

& commission expenses, change in expense

liabilities and life & takaful fund tax

(2,449.7) (2,689.3) (8.9)% (1,032.7) (1,417.0) (27.1)% (1,265.3) (18.4)%

Net operating income 661.2 802.6 (17.6)% 350.7 310.5 12.9% 461.9 (24.1)%

Overhead expenses (432.4) (353.1) 22.5% (225.9) (206.6) 9.3% (186.8) 20.9%

PPOP 228.8 449.5 (49.1)% 124.8 104.0 20.0% 275.1 (54.6)%

Net impairment losses 8.0 (11.6) (169.1)% 3.4 4.6 (26.6)% (9.8) (134.6)%

Operating profit 236.8 437.9 (45.9)% 128.2 108.6 18.1% 265.3 (51.7)%

RM million1H

FY2018

1H

FY2017YoY

2Q

FY2018

1Q

FY2018QoQ

2Q

FY2017YoY

Net insurance benefits & claims incurred, net fee

& commission expenses, change in expense

liabilities and life & takaful fund tax

(2,449.7) (2,689.3) (8.9)% (1,032.7) (1,417.0) (27.1)% (1,265.3) (18.4)%

Less: intercompany elimination 122.3 80.7 51.5% 58.4 63.8 (8.4)% 35.1 66.4%

Total net insurance benefits & claims incurred,

net fee & commission expenses, change in

expense liabilities and life & takaful fund tax

(2,327.4) (2,608.6) (10.8)% (974.3) (1,353.1) (28.0)% (1,230.2) (20.8)%

Reconciliation of net insurance benefits & claims incurred, net fee & commission expenses, change in expense liabilities

and life & takaful fund tax

25

1,590

1,302

130

1,511

(1,353)

1,689

1,008

165

1,490

(974)

Total Other Operating Income Fee Income fromIslamic Operations

Net Earned InsurancePremiums

Net Insurance Benefits& Claims Incurred, Net

Fee & CommissionExpenses, Change in

Expense Liabilities andLife & Takaful Fund Tax

1Q FY2018

2Q FY2018

Net Fee Based Income: QoQ

6.2% (22.6)% (1.4)% (28.0)% 26.8%

RM

million

RM million 1Q FY2018 2Q FY2018 QoQ

Commission, service charges and fees 836 857 2.4%

Investment & Trading Income 109 (24) (>100)%

Unrealised gain/ (losses) on securities 141 (273) (>100)%

Realised and Unrealised gain/ (losses) on derivatives (59) 117 >100%

Foreign Exchange Profit 131 268 >100%

Other Income 144 64 (55.4)%

26

Group Gross Loans Growth: 30 June 2018

Note:

¹ Rebased loan growth figures are based on adjusted 31 December 2017 position in line with migration of client accounts, effective 1 January 2018

% of

Portfolio

30 Jun

2018

31 Mar

2018QoQ

31 Dec

2017

YTD

Ann.

30 Jun

2017YoY

Group Gross Loans 502.4 493.4 1.8% 493.8 3.5% 480.1 4.6%

Malaysia (RM billion) 57% 290.5 288.9 0.6% 285.5 3.5% 273.8 6.1%

Community Financial Services (reported) 72% 209.0 205.7 1.6% 203.7 5.3% 197.1 6.0%

Community Financial Services (rebased)¹ 72% 209.0 205.7 1.6% 203.2 5.7% 197.1 6.0%

Global Banking (reported) 28% 81.6 83.2 (1.9)% 81.9 (0.8)% 78.0 4.6%

Global Banking (rebased)¹ 28% 81.6 83.2 (1.9)% 82.4 (1.8)% 78.0 4.6%

International (RM billion) 41% 204.3 197.2 3.6% 200.9 3.4% 199.0 2.7%

Singapore (SGD billion) 61% 41.9 41.2 1.7% 40.6 6.7% 38.5 8.9%

Community Financial Services 54% 22.6 22.8 (0.8)% 22.1 4.7% 21.1 7.2%

Global Banking 46% 19.3 18.5 4.7% 18.5 9.2% 17.2 12.4%

Indonesia (IDR trillion) 18% 131.2 126.2 4.0% 129.2 3.1% 123.1 6.6%

Community Financial Services 75% 98.3 96.0 2.4% 96.4 3.9% 93.5 5.1%

Global Banking 25% 32.6 30.0 8.8% 32.5 0.6% 29.3 11.5%

Other markets (RM billion) 21% 43.1 40.3 6.9% 39.5 18.4% 39.3 9.6%

Investment banking (RM billion) 2% 7.6 7.3 3.3% 7.4 5.2% 7.3 3.3%

27

Malaysia Loans Growth: 30 June 2018

RM billion% of

Portfolio

30 Jun

2018

31 Mar

2018QoQ

31 Dec

2017

YTD

Ann.

30 Jun

2017YoY

Community Financial Services (reported) 72% 209.0 205.7 1.6% 203.7 5.3% 197.1 6.0%

Community Financial Services (rebased)¹ 72% 209.0 205.7 1.6% 203.2 5.7% 197.1 6.0%

Consumer 58% 168.2 165.8 1.4% 163.3 5.9% 157.7 6.6%

Total Mortgage 29% 83.9 82.4 1.9% 80.82 7.6% 77.6 8.1%

Auto Finance 16% 46.8 46.2 1.3% 45.7 4.7% 44.6 4.8%

Credit Cards 2% 7.2 7.1 1.1% 7.2 (1.4)% 6.6 9.0%

Unit Trust 10% 27.7 27.6 0.5% 27.0 5.1% 26.2 5.5%

Other Retail Loans 1% 2.6 2.6 (0.4)% 2.52 2.3% 2.6 (1.6)%

Business Banking + SME (reported) 14% 40.9 39.9 2.6% 40.3 2.8% 39.4 3.8%

Business Banking + SME (rebased)¹ 14% 40.9 39.9 2.6% 39.9 4.9% 39.4 3.8%

SME (reported) 5% 15.9 15.4 3.8% 14.9 14.1% 13.8 15.7%

SME (rebased)¹ 5% 15.9 15.4 3.8% 14.8 15.9% 13.8 15.7%

Business Banking (reported) 9% 25.0 24.5 1.8% 25.4 (3.8)% 25.6 (2.7)%

Business Banking (rebased)¹ 9% 25.0 24.5 1.8% 25.1 (1.5)% 25.6 (2.7)%

Global Banking (Corporate) (reported) 28% 81.6 83.2 (1.9)% 81.9 (0.8)% 78.0 4.6%

Global Banking (Corporate) (rebased)¹ 28% 81.6 83.2 (1.9)% 82.4 (1.8)% 78.0 4.6%

Total Malaysia 290.5 288.9 0.6% 285.5 3.5% 273.8 6.1%

Note: ¹ Rebased loan growth figures are based on adjusted 31 December 2017 position in line with migration of client accounts, effective 1 January 20182 Restated figures for 31 December 2017 due to changes in capturing of product type

28

Group Deposits Growth: 30 June 2018

% of

Portfolio

30 Jun

2018

31 Mar

2018QoQ

31 Dec

2017

YTD

Ann.

30 Jun

2017YoY

Group Gross Deposits 539.8 532.1 1.4% 526.6 5.0% 511.7 5.5%

Malaysia (RM billion) 62% 335.8 336.4 (0.2)% 317.8 11.3% 304.9 10.1%

Savings Deposits 13% 42.8 42.5 0.8% 40.7 10.5% 41.1 4.2%

Current Accounts 25% 82.5 82.9 (0.5)% 87.1 (10.6)% 82.1 0.5%

Fixed Deposits 43% 145.1 141.6 2.4% 138.1 10.1% 124.0 17.0%

Others 19% 65.4 69.4 (5.8)% 51.9 52.0% 57.7 13.2%

International 38% 205.8 197.5 4.2% 210.3 (4.3)% 208.8 (1.4)%

Singapore (SGD billion) 68% 47.0 43.8 7.2% 46.2 3.4% 42.1 11.6%

Savings Deposits 13% 6.2 6.1 0.9% 7.0 (22.8)% 5.8 7.4%

Current Accounts 17% 7.8 7.4 5.3% 7.6 4.5% 7.6 2.7%

Fixed Deposits 70% 33.0 30.3 8.9% 31.6 9.0% 28.8 14.7%

Indonesia (IDR trillion) 16% 113.9 121.0 (5.9)% 121.5 (12.6)% 120.1 (5.2)%

Savings Deposits 21% 23.7 24.0 (1.4)% 24.8 (9.4)% 24.5 (3.4)%

Current Accounts 21% 23.9 23.9 0.1% 23.6 2.5% 20.2 18.1%

Fixed Deposits 58% 66.3 73.2 (9.3)% 73.1 (18.5)% 75.4 (12.0)%

Note: Deposits figures are restated following a BNM circular dated 21 June 2017 which excludes structured deposits as well as changes in capturing of

product type

29

93.8% 94.0% 93.4% 92.5% 92.8%

36.8% 36.8% 37.3%35.3% 35.1%

35.1% 35.0% 35.4%33.5% 33.2%


LDR CASA CASA (without IA)

90.9% 90.7% 91.2% 87.0% 87.8%

40.4% 39.5% 40.2% 37.3% 37.3%

37.6% 36.6% 37.1% 34.5% 34.3%


LDR and CASA Ratio

Singapore Indonesia

Group Malaysia

102.4% 104.7% 103.0% 101.1%111.8%

37.2% 37.8% 39.8% 39.6% 41.8%

86.7% 87.6% 88.1% 85.6%94.0%


LDR (Bank Level)

91.4% 88.5% 87.8%94.1%

89.2%

31.7% 31.9% 31.6% 30.9% 29.8%

Jun 17 Sep 17 Dec 17 Mar 18 Jun 18Note:

• LDR excludes structured deposits as per BNM’s circular dated 21 June 2017 “Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013”

• Group and Indonesia LDR for Dec 17 onwards excludes loans to banks and FIs

• Group and Malaysia LDRs include investment accounts totaling RM19.18 billion for 30 June 2018 RM21.84 billion for 31 Mar 2018, RM24.56 billion for 31 Dec 2017, RM26.80 billion for

30 Sep 2017 and RM27.79 billion for 30 June 2017

30

Key Operating Ratios

Note:1 LDR excludes structured deposits as per BNM’s circular dated 21 June 2017 “Classification and Regulatory Treatment for Structured Products under FSA 2013 and IFSA 2013”, and LDR

for Dec 17 onwards excludes loans to banks and FIs.2 Total cost excludes amortisation of intangibles for Maybank Indonesia and Maybank Kim Eng.3 The capital ratios are adjusted based on the assumption of 85% reinvestment rate under the DRP for the period. CET1 ratio for 1Q FY2018 onwards is computed based on fully loaded

basis with effect from 1 Jan 2018. Capital ratios for 1Q FY2018 are after final cash dividend.

%1H

FY2018

1H

FY2017YoY

2Q

FY2018

1Q

FY2018QoQ

2Q

FY2017YoY

Return on Equity 10.8 9.7 1.1% 11.1 10.5 0.6% 9.6 1.5%

Net Interest Margin 2.33 2.41 (8) bps 2.27 2.39 (12) bps 2.39 (12) bps

Fee to Income Ratio 28.1 27.0 1.1% 28.9 27.3 1.6% 28.4 0.5%

Loans-to-Deposit Ratio 1 92.8 93.8 (1.0)% 92.8 92.5 0.3% 93.8 (1.0)%

Cost to Income Ratio 2 46.9 48.9 (2.0)% 46.2 47.6 (1.4)% 47.7 (1.5)%

Asset Quality

Gross Impaired Loans Ratio 2.64 2.53 11 bps 2.64 2.37 27 bps 2.53 11 bps

Loans Loss Coverage 80.7 70.1 10.6% 80.7 87.9 (7.2)% 70.1 10.6%

Net Charge off rate (bps) (44) (57) 13 bps (47) (41) (6) bps (68) 21 bps

Capital Adequacy ³

CET1 Capital Ratio 13.16 13.56 (40) bps 13.16 13.37 (21) bps 13.56 (40) bps

Total Capital Ratio 17.78 18.98 (120) bps 17.78 18.12 (34) bps 18.98 (120) bps

31

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


32

Loans

Total consumer (Household) 17.5% 17.5% 17.6% 17.6% 17.6% # 2

Auto (Purchase of transport vehicles) 25.7% 26.1% 26.5% 26.7% 27.1% # 2

Total mortgage * 13.2% 13.2% 13.3% 13.3% 13.3% # 2

Credit cards ** 17.9% 18.4% 18.8% 19.0% 19.0% # 1

Unit trust 51.8% 51.7% 51.1% 50.9% 50.4% # 1

Deposits

Total deposits *** 17.9% 18.1% 18.4% 18.8% 18.6% # 1

Total core retail deposits ^ 17.6% 17.5% 17.7% 17.8% 17.9% # 2

Retail CASA ^ 24.9% 24.9% 24.5% 24.9% 25.0% # 1

Retail savings ^ 28.3% 28.3% 28.2% 28.5% 28.6% # 1

Demand deposits ^ 19.4% 19.1% 18.3% 18.9% 19.0% # 1

Retail fixed deposits ^ 13.9% 13.8% 14.4% 14.2% 14.4% # 2

Channels

Internet banking - Subscriber base 43.6% 42.2% 41.0% 41.8% 41.0% # 1

Mobile banking - Subscriber base 31.7% 31.8% 31.7% 31.3% 31.4% # 1

Internet banking - Transaction Volume ^^ 55.1% 55.1% 54.8% 53.6% 53.7% # 1

Mobile banking - Transaction Volume 1 53.3% 57.5% 61.5% 70.7% 67.7% # 1

Branch network ^^^ 18.6% 18.6% 18.6% 18.6% 18.6% # 1

Market share

Mar-18

vs

Jun-18

Market

positionJun-17 Sep-17 Dec-17 Mar-18 Jun-18

Community Financial Services: Overview of Market Share for Malaysia

Note: 1 Rebased market share due to adjustment made to Industry data by BNM from Jan-17.

* Refers to housing, shophouse and other mortgage loans

** Credit cards market share refer to receivables for commercial

*** Total bank deposits inclusive of investment asset (“IA”)

^ Without IA. With IA, the market share as at Jun’18 for Total Core Retail Deposits, Retail

CASA, Retail Savings, Demand Deposits and Retail Fixed Deposits are 18.6%, 26.0%,

28.6%, 21.7% and 15.6% respectively (against MBB retail IA).

^^ Excluding non-financial transactions as per BNM guidelines

^^^ Industry numbers as at Dec’17.

33

103.8 104.6 106.4

191.8 197.5 201.5

Jun 17 Dec 17 Jun 18

Mass HAB

Jun 17 Jun 18

0.00.51.01.52.02.5

Jun 17 Jun 18

137.4 137.5 139.0

70.6 74.9 66.8


Consumer BB + SME

Community Financial Services: Overview of Malaysia Portfolio

Note:

• Customer classification: HAB (IA>RM50k, TFA>RM250k). HAB comprises of HNW, Affluent

and Emerging Affluent segments.

• TFA: Total Financial Assets (Deposits, Investments, Financing & Protection).

Individual customer TFA grew 4.2% YoY to RM307.9 billion

driven by HNW & Affluent Banking customer TFA

Total CFS loans on an upward trend of 6.0% YoY and 5.3%

YTD annualised.

RM

billion

(6.2)% YTD Ann.

Total CFS deposits decreased by 1.1% YoY, due to reduction

in high cost deposits, mitigated by consumer CASA growth

of 3.5% (1.1)% YoY

+20% YoY

Maybank2u 1-month active users grew 20% YoY driven by

growth in mobile users

157.7 163.3 168.2

39.4 40.3 40.9


Consumer BB + SME

+5.3% YTD Ann.

+6.0% YoY +4.2% YoY

+3.8% YTD Ann.

+43% YoY

Maybank2u 1-month active users

of which Mobile 1-month active

users

4.1

RM

billion

RM

billion

In m

illion

4.9

1.62.2

197.1 203.7 209.0295.6 302.1 307.9

208.0 212.3 205.8

34

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


35

11.2

28.0

38.8

11.7

28.2

42.0

11.1

27.4

43.2


RM billion

Note: ‘Term Loan’ includes foreign currency denominated accounts, while ‘Trade

Finance and Others’ is combined with ‘Overdraft’.

Term Loan

Global Banking: Overview of Malaysia Corporate Banking Portfolio

Trade Finance market shareTotal GB loans increased 4.6% YoY to RM81.6 billion

Corporate Banking GIL ratio at 2.26 % as at Jun 2018

Short Term

Revolving

Credit

Trade

Finance and

Others

Note: Market share of total trade products (On Balance Sheet items, Contingent

Liabilities and Others)

(1.0) % YoY

+11.3 % YoY

24.7% 24.5%24.4%

23.5%

22.8%


1.97% 1.92%

1.58%

2.34% 2.26%


(2.3) % YoY

36

65.3%

16.1%

17.2%

0.3%

0.2%0.9%

RM24.8

billion 56.1%

25.0%

15.3%

2.5%

0.1%1.0%

RM35.1

billion

Commercial

Papers

, AA

, A

, AAA

, <A

Others

26.5%

19.7%31.4%

17.1%

5.3%

RM 172.3

billion

Government

Securities

- Domestic

Government

Securities

- Foreign

PDS/Corp

Bonds

- Domestic

PDS –

Foreign

Others

(NIDs, BA, etc)

25.5%

20.0%29.8%

18.2%

6.4%

RM 148.7

billion

Government

Securities

- Domestic

Government

Securities

- Foreign

PDS/Corp

Bonds

- Domestic

PDS –

Foreign

Others

(NIDs, BA, etc)

Group Securities Portfolio¹: 36.8% Foreign Securities as at June 2018

Group Securities Portfolio¹ grew 15.9 % YoY

40% of PDS (Maybank Conventional Malaysia) rated “AA” or

above as at June 2018

Global Banking: Overview of Group Securities and Global Markets Portfolio

1H FY20181H FY2017

67.7 73.6 67.7 70.079.6

71.477.1

77.6 74.2

83.6

9.6

9.59.1 10.4

9.1


Govt. Securities PDS/Corp Bonds Others

+15.9 % YoY

160.2148.7

1H FY2017 1H FY2018

Note:

¹ Group Securities Portfolio is inclusive of Financial assets designated upon initial

recognition (part of FVTPL)

154.4

Note:

‘Others’ category refers to Government Guaranteed bonds, Partially Government

Guaranteed bonds and non rated bonds

154.6

RM

billion

, <A, A

Commercial

Papers

, AA

, AAA

Others

172.3

37

Malaysia39%

Singapore29%

Thailand17%

Indonesia4%

Philippines4%

Hong Kong3%

Others4%

YTD June 2018 Brokerage Market Share by Country

Global Banking: Overview of Group Investment Banking Portfolio

Country RankMarket

Share

Trading Value

(USD’mil)

Thailand 2 6.0% 26,354.4

Malaysia 3 9.1% 16,077.9

Philippines 7 4.5% 1,565.7

Indonesia 13 2.2% 3,469.5

Hong Kong Tier 2 0.4% 15,033.5

Singapore N/A1 3.9% 9,820.0

Vietnam N/A1 2.0% 1,709.9

1H FY2018 Fee-based Income for Malaysia

Brokerage Fees58.1%

Arranger Fees21.1%

Underwriting & Placement

Fees5.6%

Advisory Fees2.4%

Agency/ Guarantee Fees

3.9%

Other Fee Income8.8%

1H FY2018 Total Income Breakdown by Country

RM711.5

million

Total Income for Maybank Kim Eng

625.1711.5

1H FY2017 1H FY2018

+13.8% YoY

RM

million

Note: 1 Singapore & Vietnam’s YTD ranking data are not available.

* Maybank Kim Eng represents the combined business of Maybank IB and business

segments under Maybank Kim Eng Holdings

38

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


39

Maybank Singapore: P&L Summary

SGD million1H

FY2018

1H

FY2017YoY

Net fund based income 371.09 334.08 11.1%

Net fee based income 201.40 161.56 24.7%

Net income 572.49 495.64 15.5%

Overhead expenses (211.47) (185.55) 14.0%

Operating profit 361.02 310.09 16.4%

Profit before taxation 176.67 150.60 17.3%

Net fund-based income rose 11.1%, driven by loan expansion and improvement in net interest margin.

Fee-based income increased S$39.8 million YoY, led by higher treasury income, wealth management and one-off

property disposal gain.

Overheads rose 14.0% arising from higher investment in areas of personnel and information technology.

Operating profit was 16.4% or S$50.9 million higher YoY.

Impairment allowance amounted to S$184.4 million in the first half of FY 2018 attributed largely by specific

accounts.

1H FY2018 profit before tax grew 17.3% or S$26.1 million YoY to S$176.7 million.

40

6.8 6.8 7.0

14.1 15.7 16.5

6.67.8 7.0

14.815.8 16.5


Consumer -Time Deposits

Consumer CASA

Business TimeDeposits

Business CASA

5.8 7.0 6.2

7.6 7.6 7.8

28.8 31.6 33.0


Time Deposits

Demand Deposits

Savings

8.1 8.5 9.6

4.5 4.5 4.73.7 4.5 4.76.6 6.7 6.5

10.110.6

10.91.9

2.12.33.4

3.53.2


Other(Consumer)

Car Loan

Housing Loan

Others(Corporate)

Non-Bankfinancial Inst

GeneralCommerce

Building &Construction

Maybank Singapore loans rose 8.9% YoY

Diversified Loan Portfolio

Consumer

39%

Corporate

61%

4.9%4.6% 4.3% 5.5%

8.9%6.4%

8.1% 8.0% 8.9% 9.9%


Maybank Singapore Growth Industry Growth

+8.9% YoY

Maybank Singapore: Overview of Loans and Deposits Portfolio

% YoY change

38.5

Consumer

50%

Corporate

50%SG

D b

illion

Consumer and business deposits each account for 50% of

deposits

SG

D b

illion

CASA Ratio:

29.8%SG

D b

illion

CASA ratio dropped to 29.8% in Jun 2018 from 31.7% a

year ago

Consumer deposits rose S$2.1 billion YoY, led by FD growth of S$1.7

billion and CASA deposits increased S$0.4 billion .

Business deposits expanded S$2.6 billion YoY as FD grew S$2.4 billion.

42.1

+11.6% YoY

40.6 46.241.9 47.0

41

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


42

Maybank Indonesia: P&L Summary

IDR billion1H

FY2018

1H

FY2017YoY

2Q

FY2018

1Q

FY2018QoQ

Net Fund Based income 3,932 3,836 2.5% 2,041 1,890 8.0%

Net Fee Based income 1,022 1,457 (29.8)% 495 528 (6.2)%

Net income 4,954 5,292 (6.4)% 2,536 2,418 4.9%

Overhead expenses (2,988) (3,064) (2.5)% (1,480) (1,508) (1.9)%

Personnel (1,287) (1,234) 4.3% (640) (648) (1.2)%

General and Administrative (1,701) (1,830) (7.1)% (840) (861) (2.4)%

Operating profit 1,966 2,228 (11.8)% 1,056 910 16.1%

Provisions Expenses (666) (836) (20.3)% (403) (263) 53.2%

Non Operating (Expense)/Income (3) (11) (72.2)% 3 (7) >100%

Profit Before Tax and Non-Controlling Interest 1,296 1,381 (6.1)% 656 640 2.6%

Tax and Non-Controlling Interest (364) (383) (4.9)% (187) (177) 5.5%

Profit After Tax and Non-Controlling Interest 933 998 (6.6)% 470 463 1.4%

EPS - Basic (IDR) 13.74 14.74 (6.8)% 6.90 6.84 1.0%

43

Maybank Indonesia: Financial Ratios and Loans Portfolio Breakdown

IDR Trillion30 Jun

2018

31 Mar

2018QoQ

30 Jun

2017YoY

CFS 97.0 94.9 2.2% 92.7 4.6%

CFS Retail 43.2 42.8 0.9% 42.5 1.6%

Auto Loan 24.4 23.8 2.5% 22.6 8.0%

Mortgage 15.4 15.6 (1.6)% 16.7 (7.8)%

CC + Personal Loan 2.9 2.9 0.9% 2.8 5.4%

Other Loans 0.4 0.4 1.1% 0.4 (0.2)%

CFS Non-Retail 53.8 52.1 3.3% 50.1 7.3%

RSME 22.5 22.2 1.4% 21.3 5.6%

Business Banking 31.3 29.9 4.7% 28.8 8.5%

Global Banking 30.1 27.6 8.9% 27.3 10.4%

Total 127.1 122.5 3.7% 119.9 6.0%

Key Operating Ratios Jun 18 Dec 17 Jun 17 YoY

Profitability & Efficiency

Return on Assets 1.49% 1.48% 1.64% (0.15)%

Return on Equities (Tier 1) 9.16% 9.91% 11.32% (2.16)%

Net Interest Margin 5.11% 5.17% 5.28% (0.17)%

Cost to Income Ratio 60.32% 55.53% 57.90% 2.42%

Asset Quality

NPL - Gross 2.79% 2.81% 3.56% (0.78)%

Liquidity & Capital Adequacy

LCR 126.89% 140.74% 138.31% (11.42)%

CET1 16.27% 14.64% 13.72% 2.55%

CAR 18.77% 17.53% 16.89% 1.88%

Key Operating Ratios Loans Portfolio Breakdown

Note: Maybank Indonesia’s loans breakdown is mapped in accordance to its local

regulatory reporting requirements.

44

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


45

Maybank Islamic, 58.5%

Maybank Conventional,

Malaysia, 41.5%

Year Contribution

Jun 2017 55.8%

Sep 2017 56.0%

Dec 2017 56.9%

Mar 2018 57.7%

Jun 2018 58.5%

Islamic Banking: Performance Overview

Group Islamic Banking Financial Performance Maybank Islamic: Total Gross Financing grew to RM171.1

billion

Maybank Islamic Contribution to Maybank Malaysia Loans

and Financing as at June 2018

Note: Figures are as per latest segmentation breakdown

Group Islamic Banking’s performance includes key markets in Malaysia, Indonesia and

Singapore

RM million1H

FY2018

1H

FY2017YoY

Total Income 2,797.6 2,170.8 28.9%

Profit Before Tax 1,184.5 1,267.6 (6.6)%

Financing & Advances 183,123.0 165,004.6 11.0%

Deposits & Investment Account: 169,473.6 148,491.8 14.1%

Deposits from Customers 150,297.4 120,705.3 24.5%

Investment Account 19,176.2 27,786.6 (31.0)%

RM

billion

32.0

40.1

34.4

5.7

19.9 22.4

32.8

45.0

37.2

6.3

26.9 22.9

AITAB Mortgage Term Financing Others (CFS) Term Financing GB

Jun 17

Jun 18

35%

CFS:8% GB:18%

12%

8%

2%

3%

10%

Maybank Islamic: Key Financial Ratios

Key Financial Ratios 1H

FY2018

1H

FY2017

Total Capital Ratio (TCR) 19.05% 17.77%

Net Profit Margin (YTD) 1.86% 1.94%

Cost to Income Ratio (CIR) 33.59% 36.32%

Direct FDR1 95.9% 96.4%

Note:

¹ Direct Financing to Deposits Ratio (FDR) comprising gross financing against deposit

and Unrestricted Investment Account (exc. RPSIA assets and liabilities)

46

Key Products Jun 18 Jun 17

Automobile Financing 44.9% 44.7%

Home 27.2% 28.1%

Term financing 31.9% 29.6%

Maybank Islamic ranks No.1 by Asset Market Share

in Malaysia

Islamic Banking: Market Share

Market Share by Product (Malaysia) Maybank Islamic Market Share

33.6% 33.6% 33.8% 33.6%33.2%

29.6% 29.7%30.4%

31.2%30.4%


Financing Deposits & Investment Accounts

MalaysiaAsset Market Share

Mar 18Rank

Maybank Islamic 31% 1

CIMB Islamic 14% 2

RHB Islamic 9% 3

Source for industry numbers: Latest BNM Monthly Statistical Bulletin

Sukuk League Table Ranking June 2018

Source for industry numbers: Latest BNM Monthly Statistical Bulletin

Source: Bloomberg

Source: Latest BNM monthly statistical bulletin & respective Bank’s Financial

Statements

Global Sukuk League

Table Ranking

Market

Share (%)

Amount

(USD million)Issues

#2 Maybank 11.03% 2,403 53

MYR Sukuk League

Table Ranking

Market

Share (%)

Amount

(USD million)Issues

#1 Maybank 27.03% 2,833 86

47

0 1,000 2,000 3,000 4,000

Total Life/Family…

Total General

Misc

Personal Accident

MAT

Motor

Fire

Total Life/Family

Group Premium

Credit Premium

Regular Premium

Single Premium 1H FY2017

1H FY2018

Total Life/Family

& General

210.6 156.3

166.5120.3

118.1

23.2

1H FY2017 1H FY2018

Life/Family General Shareholder's Fund

33.1 34.5 35.5


Insurance and Takaful: Performance Overview

Total Assets

Gross Premium

Profit Before Tax

Life / Family (New Business) Market Share

No. 4 in Life/Family

(New Business)

No. 1 in General

Insurance and

Takaful

General Insurance and Takaful Market Share

(39.4)% YoY +7.3% YoY

Note: Market Share is for period Apr’17 – Mar’18 (Source: LIAM / ISM Statistics)

495.3

RM

million

RM

billion299.9

>100%

7.4%

58.5%

6.8%

27.6%

13.8%

10.0%

10.5%

11.0%

20.3%

(6.8)%

(1.0)%

Note: Gross Premium, Profit Before Tax and Total Assets are presented at EIHSB level

10.5%

13.0%

13.9%

21.9%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Etiqa Ins. & Tak.

GE Ins. & Tak.

Prudential Ins. & Tak.

AIA Ins. & Tak.

7.9%

10.6%

11.5%

0.0% 5.0% 10.0% 15.0%

HL-MSIG Ins. & Tak.

Allianz Insurance

Etiqa Ins. & Tak.

(RM million)

48

71,803.5 76,508.8 76,157.8

81,328.7

Dec 17 Jun 18

Gross Loans

CustomersDeposits

2,837.7 2,898.0

765.5 567.2

1H FY2017 1H FY2018

Revenue

PBT

Maybank Philippines: Performance Overview

Revenue increased by 2.1% YoY, led by higher net interest

income (NII).

Increase in NII contributed by higher interest income from

term loans.

PBT decreased by 25.9% YoY mainly due to higher overheads,

coupled with higher provisioning.

Gross loans rose by 13.1% YTD annualised driven by growth in

term loans.

Customer deposits advanced by 13.6% YTD annualised

supported by growth in fixed deposits.

Gross impaired loans ratio increased by 25 bps to 2.57% due

to increase in NPL.

+2.1% YoY

(25.9)% YoY

Revenue and PBT

Gross Loans and Deposits

Key Highlights

PESO

million

PESO

million

+13.1% YTD*

+13.6% YTD*

Key Ratios 1H FY2018 1H FY2017

Return on assets 0.98% 1.55%

Return on equity 7.55% 13.56%

Cost-to-income ratio 74.20% 71.32%

Loans to Deposit ratio 94.07% 85.05%

Gross Impaired Loans Ratio 2.57% 2.32%

No. of branches 74 74

* Annualised

49

Table of Contents

Executive Summary 2

Results Overview 4


Appendix:







7. Affiliates 50


50

57,174.5 56,956.8

60,120.7 61,785.0

Dec 17 Jun 18

Gross Loans

CustomersDeposits

1,252.0

1,502.7

265.8

586.9

1H FY2017 1H FY2018

Revenue

PBT

An Binh Bank: Performance Overview

Revenue increased by 20.0% YoY, mainly due to higher fee

based income.

PBT increased by VND321.2b YoY, mainly contributed by

higher revenue.

Gross loans reduced by 0.8% YTD annualised mainly due to a

decrease in corporate lending.

Customer deposits increased by 5.5% YTD annualised mainly

due to increase in fixed and saving deposits.

Gross NPL ratio decreased by 84 bps to 1.76% YoY, mainly

contributed by lower NPL.

Key Ratios 1H FY2018 1H FY2017




Loans-to-Deposit ratio 92.19% 92.56%

Gross NPL Ratio 1.76% 2.60%

+20.0% YoY

+>100% YoY

(0.8)% YTD*

+5.5% YTD*


VN

D b

illion

VN

D b

illion

Revenue and PBTKey Highlights

* Annualised

51

30.4 31.9

17.7 15.7

1H FY2017 1H FY2018

Revenue

PBT

MCB Bank: Performance Overview

5.0% YoY

(11.2)% YoY

546.7 608.3

974.0 1,046.4

Dec 17 Jun 18

Gross Loans

CustomersDeposits

+14.9% YTD*

+22.5% YTD*Key Ratios 1H FY2018 1H FY2017




Loans-to-Deposit ratio 58.13% 48.53%

Gross NPL Ratio 8.49% 5.20%


Revenue increased by 5.0% YoY, led by higher net interest

income (NII).

PBT decreased by 11.2% YoY, mainly attributed to higher

overhead expenses.

Gross loans increased by 22.5% YTD annualised, mainly driven

by growth in domestic loans and Islamic financing.

Customer deposits grew by 14.9% YTD annualised, mainly

contributed by higher CASA.

Gross NPL ratio increased from 5.20% to 8.49%, mainly

attributed to increase in NPL.

Revenue and PBTKey Highlights

PK

R b

illion

PK

R b

illion

* Annualised

52

Dato’ Amirul Feisal Wan Zahir

Group Chief Financial Officer

Contact: (6)03-2074 7703

Email: [email protected]

MALAYAN BANKING BERHAD

14th Floor, Menara Maybank

100, Jalan Tun Perak

50050 Kuala Lumpur, Malaysia

Tel : (6)03-2070 8833

www.maybank.com

Jeeva Arulampalam

Head, Group Investor Relations

Contact: (6)03-2074 8017

Email: [email protected]

Disclaimer. This presentation has been prepared by Malayan Banking Berhad (the “Company”) for information purposes only and does not purport to contain all the

information that may be required to evaluate the Company or its financial position. No representation or warranty, express or implied, is given by or on behalf of the

Company as to the accuracy or completeness of the information or opinions contained in this presentation.

The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of

it form the basis of, or be relied in any connection with, any contract, investment decision or commitment whatsoever.

The Company does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or their contents or otherwise arising in

connection therewith.

Investor Relations Contact

Humanising Financial Services

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Investor Presentation...0 Humanising Financial Services Investor Presentation Financial Results 2Q FY2018 and 1H FY2018 ended 30 June 2018 30 August 2018 1 Table of Contents Executive