AmBank Group Investors Presentation FY2013 Results 16 May 2013 - - PowerPoint PPT Presentation

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 1

AMMB Holdings Berhad

Ashok Ramamurthy Group Managing Director Vision As Malaysia’s preferred diversified, internationally connected financial solutions group, we take pride in growing your future with us

Investors Presentation FY2013 Results 16 May 2013

AmBank Group

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 2

EXECUTIVE SUMMARY Page 3 1 FY2013 GROUP FINANCIAL PERFORMANCE Page 11 2 OUTLOOK & STRATEGIC PRIORITIES Page 22 3 DIVISIONAL STRATEGY & PERFORMANCE Page 26 4 SUPPLEMENTARY INFORMATION – AMBANK GROUP Page 38 SUPPLEMENTARY INFORMATION – ECONOMY & INDUSTRY Page 52 6 5

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 3

FY2013 Key Highlights

Optimal diversification agenda

 Strong CASA growth, with CASA composition now @ 20%  LDR at preferred levels (circa 90% 2%), with diversified funding base  Rebalancing loans portfolio via growing non-retail and in profitable retail segments  Banking entities capital optimally positioned for Basel 3

Acquisition synergies on track

 Kurnia & MBF Cards: Stronger market position & progressively realising synergies  AmLife & AmTakaful: Exploring strategic partnerships

Consistent growth & returns

 6th consecutive year of record performance, consistently met financial aspirations  FY2013 PATMI up 10.2% with positive momentum across most divisions  Improving returns (ROE: 14%)  Proposed dividend payout: 41%

Clear strategic priorities

 Accelerate growth & business mix changes  Strengthen customer centricity & connectivity  Increase productivity & efficiency

2 4 1 3

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 4

Performance Growth Risk, Capital & Funding Profile

1 2 3

Reposition, Build New Growth Options Improved returns FY07 FY08 FY09 FY10 FY11 FY12^ FY13 ∆%^

FY13 vs FY12

CAGR^

FY07 - FY13

Pre ANZ Scale & Presence Aggressively Invest, Optimise & Leverage Connectivity PATMI (mil) (282.5) 668.5 860.8 1,008.6 1,342.8 1,484.4

1,635.1 10.2% 19.7%1

ROE

• 5.8 %

11.5 % 11.7 % 11.5 % 13.6% 13.8%

14.0% 0.2% 3.3%

ROA

• 0.17 %

1.02% 1.04% 1.13% 1.39% 1.39%

1.40% 0.01% 0.26%

EPS (sen, basic)

• 13.3

28.2 31.6 34.7 44.7 49.6

54.5 9.8% 13.0%

Net Lending (bil) 50.3 54.4 57.9 64.8 71.1 75.7

82.6 9.1% 8.6%

Customer Deposits2 (bil) 45.9 57.9 65.2 70.7 81.5 84.6

93.1 10.0% 12.5%

CASA (bil) 5.3 6.3 7.0 8.5 10.4 13.2

16.8 27.8% 21.2%

Net NPL / Gross Impaired Loans (FY10

• nwards)

6.2% 3.7% 2.6% 1.5% / 3.81% 3.33% 2.45%

1.98% 0.47%

RWCAR4 10.1% 14.1 % 15.2 % 15.8 % 14.4% 15.7%

14.8%

CET 14 5.8% 7.6% 7.7% 8.1% 8.0% 9.2%

9.3%

LD Ratio3 109.8% 94.1% 88.7% 91.7% 87.3% 89.5%

88.7% 0.8%

CTI 38.8% 40.2% 43.3% 42.0% 39.9% 41.6%

46.9% 5.3%

Consistent growth in shareholders‟ returns Basel III

Continuing to deliver an optimal mix of growth, returns, and risk profile

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 5

Commercial Banking1 Investment Banking2 Life Assurance & Family Takaful

283.0 308.0 449.2 243.4 FY10 FY11 FY12 FY13 48.7 60.2 93.6 167.9 FY10 FY11 FY12 FY13

General Insurance

Commercial banking activities and recent acquisitions driving profit growth

PAT (RM‟mil) PAT (RM‟mil) PAT (RM‟mil)

32.1 61.8 7.7

• 63.9

FY10 FY11 FY12 FY13

867.3 930.7 982.3 1294.0

FY10 FY11 FY12 FY13

982.5 1,298.7

PAT (RM‟mil)

930.7 867.3

^ ^ ^

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 6

64.8 71.1 75.7 82.6 70.7 81.5 84.6 93.1 91.7% 87.3% 89.5% 88.7% FY10 FY11 FY12 FY13

Net lending Customer deposits LDR

8.1%* 8.0%* 9.2% 9.3% 10.3% 10.2% 11.3% 11.0% 15.8% 14.4% 15.7% 14.8% FY10 FY11 FY12 FY13 8.5 10.4 13.2 16.8 59.9 64.0 63.6 67.9 0.4 0.4 0.5 0.1 1.8 6.7 7.3 8.2 FY10 FY11 FY12 FY13

CASA FD Negotiable Instruments Term funding

Steady progress made on diversification agenda and capital efficiency

RM’bil

LDR: Operating within preferred levels Rebalancing loans portfolio Capital: Optimally positioned for Basel III Diversified funding base

Basel II Basel III

70.7 81.5 84.6 93.1 RM’bil

^ ^

---------------------- Before proposed dividend --------------------------- CET 1 Ratio Tier 1 CAR RWCAR/Total Capital Ratio * include preference shares

Conventional 73% Islamic 27% Fixed rate 45% Variable rate 55%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 7

Strategic Priorities Progress

 New retail structure in place to drive reshaping program around customer solutions  Retail : non-retail loans mix portfolio improved to 58%:42% (FY12 – 59%:41%)  Good growth in Transaction banking (up 36.5%), increased collaboration with ANZ  Expanding international connectivity initiatives (ANZ, Travelex, Western Union)  Investing in IT and risk infrastructure to support medium term growth  Launched AmSignature, Visa Infinite & World Mastercard and 5 Priority Banking branches targeting affluent segments  Optimized footprint and increased self-service machines at strategic locations  Revamping of channels to refresh customer experience  Launched our new brand values “P2ACE” – Principled, Proactive, Appreciative, Connected & Evolving  CTI increased to 46.9% due to new acquisitions  Integrations and other efficiency initiatives underway will deliver efficiency gains in future years  Unveiled Group‟s new Vision, Mission, values and employees value proposition - „i Am Connected‟  Acquired Kurnia & MBF Cards - integrations on track to deliver synergies  Exploring potential strategic partnerships for AmLife and AmTakaful

FY2013: delivering on strategic priorities

Accelerate Growth & Business Mix Changes 1 Strengthen Customer Centricity & Connectivity 2 Increase Productivity & Efficiency 3 Acquire & Integrate 4

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 8

 RM1.627 bil cash purchase price (valuation: P/B 1.95x based on Kurnia 30 Jun 2012 net assets)  Funded by internal cash resources & ~ RM500 mil senior debt for AMMB‟s portion

AmGeneral Insurance: Kurnia integration on track to deliver synergies

Synergistic benefits: Business priorities & progress and next steps Investment summary:

Acquisition

• f Kurnia

Integrated claims &

• perations

Completion

• f

integration 26 Sept 12 1 Mar 13 Q4 13 Q3 13 Vesting Day 1 Today

* Includes depreciation

Synergies RM mil Synergistic benefit cost Cost Cumulative Acquisition cost FY13 (11.0)* 25.5 25.5 (20.5) FY14 (7.3)* 24.9 50.4

• FY15

(5.4)* 4.1 54.5

• Integrated

sales & underwriting Q2 14

 Vesting day – 1 Mar 2013, AmG transferred its general insurance business to its wholly-owned subsidiary, Kurnia Insurans (M) Bhd. Concurrently, Kurnia was renamed “AmGeneral Insurance Bhd”  Dual branding strategy – “AmAssurance” & “Kurnia”, first in the general industry for the Malaysian general insurance market  4 dual branded pilot branches launched, remainder of branch consolidation will be completed by end of 2013  # 1 position in motor & general insurance

• Branch network that has an extensive geographical coverage with combined dealers/agency force of over 7,600

(as at 31 Mar 2013)

• Achieved GWP of >RM1.7 bil, with approx. 12% market share and over 3.6 million policyholders.
• New management team appointed and agency and Bancassurance channels in place.
• Underwriting model to be harmonized by Q4 2013
• Centralisation of policy processing and HR benefits alignment – target to complete by Q2 2014; roll-out of

Motor (phase 1) – Q4 2014  Full integration by Q2 2014

* Includes depreciation, excludes funding cost

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 9

 RM641.4 mil cash purchase price (valuation: P/B 2.9x based on NAV @ 30 Nov 2012)  Funded by internal cash resources & ~ RM500 mil senior debt

RM mil Synergistic benefit cost Synergies Acquisition cost Revenue Cost Total Cumulative FY13 (10.5) 0.1 2.4 2.5 2.5 (3.5) FY14 (32.8)* 5.7 13.4 19.1 21.6

• FY15

(1.5)* 17.1 25.7 42.8 64.4

• Acquisition
• f MBF

Vesting Day 1 System & operational functions fully integrated 10 Jul 12 3 Dec 12 1Q14 2Q – 3Q13 Legal Day 1 Today

Synergistic benefits: Business priorities & progress and next steps

 As at 31 Mar 2013, cards in circulation increased to >500,000, market position by receivables strengthened to #6  Enlarged merchant forces: on a combined basis, over 3,000 new merchants acquired since Dec 2012, combined merchants greater than 50,000 to-date  Integration updates:

• 100th day integration completed
• Select Synergies Initiatives kick started
• Office relocation to Menara MBf– completed on 7 Apr 2013
• Integrating IT system into one system – target to complete by 1Qtr 2014
• Commenced merchant pool review and integration, target to complete by 1Qtr CY2014 (System Day 1)
• Branding to be progressively re-aligned to AmBank Group

 Pending vesting – target 2Qtr – 3Qtr 2013, business as usual for both AmBank Cards & MBF Cards

MBF Cards: Completed detailed plans and commenced integration activities

Investment summary:

* Includes depreciation, excludes funding cost

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 10

AMMB Holdings Berhad

Mandy Simpson Chief Financial Officer Vision As Malaysia’s preferred diversified, internationally connected financial solutions group, we take pride in growing your future with us

Investors Presentation FY2013 Results 16 May 2013

AmBank Group

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 11

EXECUTIVE SUMMARY Page 3 1 FY2013 GROUP FINANCIAL PERFORMANCE Page 11 2 OUTLOOK & STRATEGIC PRIORITIES Page 22 3 DIVISIONAL STRATEGY & PERFORMANCE Page 26 4 SUPPLEMENTARY INFORMATION – AMBANK GROUP Page 38 SUPPLEMENTARY INFORMATION – ECONOMY & INDUSTRY Page 52 6 5

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 12

 3.8%  69.9%  14.5%  19.8% 1,635.1 mil 10.2%  1.7%  7.5%  7.2%  10.5% 1,484.4 mil PATMI* FY12^ Net Interest Income Non- Interest Income Total income Expenses PBP Provisions/ Allowances PBT Tax & Zakat PAT MI Reported PATMI* FY13 One-off # Underlying PATMI* FY13 FY13 (RM’mil) 2,981.8 1,392.5 4,374.3 2,051.4 2,322.9 143.3 2,179.6 486.4 1,693.2 58.1 1,635.1 FY12^ (RM’mil) 2,854.0 1,447.0 4,301.0 1,791.1 2,509.9 476.3 2,033.6 500.7 1,532.9 48.5 1,484.4  4.5%

Net interest income and lower allowances underpinned FY2013 results

Growth 1,661.1 mil 11.9% # one-off acquisitions related expenses 26.0 mil Reflects (1) acquisition &

• perating costs to deliver

synergies, and (2)

• ngoing medium term

investments  2.9%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 13

62.4% 41.0% 79.5% 55.2%  10.2% >100.0% 11.4%

• 1. Life Assurance surplus is transferred into life policy shareholders‟ fund in overall Group accounts
• 2. Includes expenses for recently set-up AmFamily Takaful business

83% 16.0% 37.4% >100.0% 36.5% PATMI* FY12^ Retail Business Corporate & Institutional Investment Markets General Insurance Life Assurance1 Operating Segments MI Transaction* Islamic* PATMI* FY13 % of Composition 36% 20% 23% 4% 11% 10%

• 3%

2%

• 4%

FY13 (RM’mil)

591.1 332.3 375.3 68.5 174.9 167.9

• 54.8

37.92

• 58.1

168.0 270.3

FY12^ (RM’mil)

509.5 241.9 231.1 153.0 296.2 93.6 18.7

• 11.22
• 48.5

123.1 242.6

1,484.4 mil 84% 16% 1,635.1 mil 17%

Growth

19.8%

PATMI by division

Profit growth driven by lending activities and general insurance

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 14

36.7% 23.2%  1.7% 5.3% 11.4% Income FY12^ Retail Business Corporate & Institutional Investment Markets General Insurance Life Assurance Operating Segments Income FY13 % of Composition 43% 14% 12% 8% 7% 9% 1% 6%

FY13 (RM’mil)

1,883.3 619.3 526.0 346.3 295.1 396.4 50.1 257.72

FY12^ (RM’mil)

1,787.8 555.7 384.9 450.7 463.3 209.5 149.0 299.92 4,301.0 mil 4,374.3 mil Growth

Income by division

36.3% 89.2% 66.4% 14.1% 28.7 66.8 16.2 74% 41.0 100.2

• 6.4
• 161.8

7.4 179.5 5.6

• 104.5

47.4 10.0

• 114.5
• 65.0

22.8

34% 66% 32% 68%

Income growth driven by commercial banking divisions and general insurance

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 15

FY12^ Fees on lending & securities AUM IB business* Banca Other fee income Total Fee income Sales Trading Other trading & invtmt Trading & Investment General Life & Takaful Insurance Business Others FY13 % of

19% 11% 12% 3% 9% 54% 8% 13% 8% 29% 20%

• 5%

15% 2% FY13 (RM’mil) 265.2 155.8 172.1 42.1 119.2 754.5 115.3 172.5 108.8 396.6 285.3

• 76.0

209.4 32.1 FY12^ (RM’mil) 228.5 125.6 183.7 31.5 132.2 701.5 136.2 371.5 106.6 614.3 144.7

• 27.7

117.0 14.2

As % of total income 34% 32%

>100.0%  16.0%  79.0% Growth  24.1%  6.3%  9.8%  53.6%  97.2%

1,392.5 mil

 2.1%

Non-interest income movement

 33.5%  15.4%  35.4% >100.0%  3.8%  7.5%

Non-interest income impacted by lower capital market and trading incomes

Retail: +41mil BB & CIB: +27mil IB & Markets: -32mil

1,447.0 mil

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 16

NIM in line with guidance

FY10 FY11 FY12^ FY13 Cost of Fund NIM OPR SRR

Q1FY12^ Q2FY12^ Q3FY12^ Q4FY12^ Q1FY13 Q2FY13 Q3FY13 Q4FY13 COF NIMF SRRF OPRF COF NIMF SRRF OPRF N C N

NIM and COF (YoY) NIM and COF (QoQ)

Acquisition funding cost (RM1.0 bil): 1bps; Term funding raised (RM0.9 bil): 0.3bps

3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 2.00% 3.00% 3.50% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 2.25% 2.75% 3.00% 3.00% 1.00% 1.00% 4.00% 4.00%

Impact of tax exempted bonds

• n NIM : 2bps

2.68% 2.92% 3.13% 3.10% 2.98% 2.94% 2.75% 2.68% 3.08% 3.12% 3.13% 3.19% 3.09% 3.06% 3.12% 3.12% 2.72% 2.73% 2.82% 2.75% 2.72% 2.69% 2.60% 2.70%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 17

21% 20% FY12 FY13 89% 89% FY12 FY13

41.8% 40.2% 40.5% 43.3%

FY10 FY11 FY12 FY13

CTI reflects acquisitions and strategic investments for growth

FY12^ Personnel Establishment Marketing & Comm Admin & others Synergistic benefit cost Acquisitions cost FY13 % of Composition 59% 23% 8% 8% 1% 1% FY13 (RM’mil) 1,218 463 165 160 21 24 FY12^ (RM’mil) 1,095 383 145 169

• Expense growth drivers

 11.3%  20.8%  13.8%  5.0%  >100.0%  >100.0%  14.5% Growth 1,791.1 mil 2,051.4 mil

Banking Group CTI AmGeneral Combined Operating Ratio AmLife Management Expense Ratio

AmG AmG+Kurnia

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 18

381.9

173.3

35.9 114.6 0.1 57.9 114.6% 129.3%

• 3.3%

2.7% 15.3%

3.81% 3.33% 2.45% 1.98% 0.50% 0.21% 114.6% 129.3%

• Retail Bkg: 87.7%
• Business Bkg: 146.1%

Asset quality continues to improve

FY12 Allowance for impairment Individual allowance Collective allowance Recovery from loans sold to Danaharta Impaired loans – recovered & written-off FY13 Allowance for impairment FY2011 FY2012^ FY2013 Day 1 [1 April 10] 29bps



• Retail Bkg: 2.55%
• Business Bkg: 1.13%

FY2012^ FY2013 Industry*

Loan Loss Coverage

 183bps

Asset quality indicators

tio Gross Impaired Loans Loan Loss Charge (MFRS139) MFRS 139 MFRS 139

Allowance for impairment on loans & financing (P&L)

* Mar 12 Vs Mar 13

FY12 loan loss coverage Collective allowance Individual allowance Impaired loans & financing FY13 loan loss coverage

Movement in loan loss coverage

RM‟mil

95.6% 99.2%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 19

Loans growth: non-retail outpacing industry, retail targeting viable segments

Retail Biz & Corporate  5.9%  13.2% 77.9bil  6.6%  27.1%  11.1%  17.0%  2.2% 5.0% 84.8bil

42% 58%

 8.9%

41% 59%

Gross Loan FY12 Auto Financing Mortgage Cards Co-Op Asset Financing Business Corporate & Institutional Others Gross Loan FY13 % of Composition 30.9% 19.0% 2.7% 2.0% 3.3% 20.7% 20.2% 1.3% FY13 (RM’bil) 26.2 16.1 2.3 1.7 2.8 17.5 17.1 1.1 FY12 (RM’bil) 24.7 15.1 1.8 1.9 2.9 15.8 14.6 1.2

 10.1%

Non-retail Retail

 6.0%

Gross Loan / Financing movement

AmBank Cards : RM1.1bil LOC: RM0.7bil MBF Cards: RM 0.5bil

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 20

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 FY06 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19+

RM'bil

Debt Capital Term Funding Loans sold to Cagamas

Issuance Maturity 15.0% 13.9% 14.5% 14.3% 77.4% 74.5% 74.0% 74.5% 1.5% 6.9% 6.9% 6.9% 1.2% 0.6% 0.8% 1.5% 4.9% 4.2% 3.7% 2.8%

FY10 FY11 FY12 FY13

Equity & Debt Capital Deposits from Customers Term Funding & loans sold with recourse > 1 yr Term Funding & loans sold with recourse < 1 yr Deposits from Banks & FIs

Term funding, 10.7% Individuals, 36.5% Biz enterprises, 42.3%

Government , 10.6%

7.0 8.5 10.4 13.2 16.8 11% 12% 14% 17% 20% FY09 FY10 FY11 FY12 FY13

CASA CASA composition

• 1. Term funding includes Senior Notes, credit-linked notes, loans sold with recourse and other sources such as pension and retirement funds, non-profit organisations and similar

Continue to diversify funding

95.7%

RM’mil

Improving CASA composition Improving funding composition Diversifying funding Lengthening debt capital & term funding profile

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 21

6.0 6.6 7.0 6.0 8.0 10.5 12.0 13.5 15.0 18.3% 19.0% 28.1% 40.4% 40.1% 40.6%

• 30.0%
• 20.0%
• 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 5 10 15 20 25 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

AMMB Holdings Berhad

• Dividend trend

Dividend rate - interim (sen / share) Dividend rate - final (sen / share) Dividend payout

 Under a Basel III accord:

• The banking entities of the Group remain well capitalised and operated within internal target capital levels for FY2013:
• CET1: 8.33% ± 1.0%
• T1: 10.33% ± 1.0%
• Total Capital: 14.33% ± 1.0%

 The Group is well positioned for its targeted dividend payout ratio, in line with the Medium Term Aspirations of 40-50% payout  Double leverage ratio1: 1.17x  Balance Sheet Leverage ratio2: 7.9%  Total leverage ratio3: 6.1%

Adopted Basel III at banking entity level, well positioned for targeted dividend payout ratio

9.3% 9.0% 8.9% 11.2% 10.7% 10.6% 15.9% 14.6% 14.3% 31.12.12 1.1.2013 FY13

CET 1 Ratio Tier 1 CAR RWCAR/Total Capital Ratio

Basel II Basel III

Reduction reflects regulatory adjustments

Capital: Aggregated banking entities Higher dividend payout

---------------------- After proposed dividend ----------------------------

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 22

EXECUTIVE SUMMARY Page 3 1 FY2013 GROUP FINANCIAL PERFORMANCE Page 11 2 OUTLOOK & STRATEGIC PRIORITIES Page 22 3 DIVISIONAL STRATEGY & PERFORMANCE Page 26 4 SUPPLEMENTARY INFORMATION – AMBANK GROUP Page 38 SUPPLEMENTARY INFORMATION – ECONOMY & INDUSTRY Page 52 6 5

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 23

FY2014 outlook

2013e GDP growth of 5.3%

 Ongoing ETP initiatives expected to continue support lending & capital market activities  New Responsible Lending Guidelines and regulatory reforms moderating consumer loans growth  Moderating economy and price-based competitions for loans and deposits are ongoing challenges to maintain margins  Tougher economic environment may put some pressure on improving asset quality trends  OPR expected to remain at 3% for 2013 given the relatively low inflationary risk and current economic outlook  NIMs remain under pressure but lending rates are expected to stabilize

Opportunities & challenges

4.8%

• 1.5%

7.2% 5.1% 5.6% 5.3%

CY2008 CY2009 CY2010 CY2011 CY2012 CY2013e

% GDP (%)

GDP (%)

Malaysia Banking

Source: ETP Annual Report 2012

2011 2012 Progress to-date Initiatives 110 39 149 Investment (RM’bil) 179.2 32.1 211.3 GNI (RM’bil) 129.5 6.6 136.1 Jobs 313,741 94,702 408,443

ETP execution gaining momentum

 GDP growth resilient

• Ongoing ETP initiatives
• Accommodative macro policies
• Healthy labour market
• Low inflation, albeit trending up

 Risks from household indebtedness appears contained

• Improving impaired loans ratio for household loans
• Prudent lending standards
• Greater regulatory intervention and oversight

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 24

1. Integrate acquisitions and deliver synergies 2. Simplify business model and streamline processes 3. Accelerate organic growth with focus on cross-sell, flow business, small business, and emerging affluent customers 4. Build scale in specialist businesses with partners 5. Optimise capital and holding company structures

Strategic Agenda for AmBank Group

• ver the next

3 years

Strategic Priorities

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 25

FY2012 (restated)^ FY2013 FY2014 FY2015 – FY2016 1,484.4 1,635.1 10 – 12% 12 – 14% 13.8% 14.0% 14.0 – 14.5% 14.5 – 15.5% 41.6% 46.9% ≤46%; ≤44% (Banking Group) ≤45%; ≤43% (Banking Group) 2.45% 1.98% ≤2.0% ≤2.0% 20.1 sen / share 41% 22.0 sen / share 41% 40-50% Payout 40-50% Payout

PATMI* (RM’mil) ROE (%) CTI (%) Gross impaired loans (%) Dividend: Single-tier (sen) Payout (%)

Key performance indicators

Actual

 NIM expected to contract ≤10 bps  Loan loss charge expected to be < 30 bps  Loans expected to grow circa 10%  LD ratio expected to maintain at ~90%, ±2%  CASA composition > 20%  Non-interest income composition at circa 35%  Target CET 1 of 8.5% (±1%), Tier 1 of 10.5% (±1%), RWCAR of 14.5% (±1%) Other FY2014 underlying estimates

Underlying Estimates

1 2 3 4 5

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 26

EXECUTIVE SUMMARY Page 3 1 FY2013 GROUP FINANCIAL PERFORMANCE Page 11 2 OUTLOOK & STRATEGIC PRIORITIES Page 22 3 DIVISIONAL STRATEGY & PERFORMANCE Page 26 4 SUPPLEMENTARY INFORMATION – AMBANK GROUP Page 38 SUPPLEMENTARY INFORMATION – ECONOMY & INDUSTRY Page 52 6 5

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 27

Vision “As Malaysia‟s preferred diversified, internationally connected financial solutions group, we take pride in growing your future with us”

Our Vision and divisional aspirations

* Conventional & Islamic

TRANSACTION*

Become Top 5 Transaction Banking Service Provider in Malaysia by FY2015 with 8% market share

CIB*

Deliver innovative & quality solutions, increase „share of wallet‟, target high-profile and high-value clients and leverage ANZ for x-border businesses

ISLAMIC

To be the Islamic Bank of choice

INVESTMENT*

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

MARKETS*

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

FAMILY TAKAFUL

To be the trusted Family Takaful Operator of choice within all of our selected markets

LIFE ASSURANCE

Trusted by our stakeholders

GENERAL INSURANCE

Leverage scale to lead the market in the motoring segment, whilst building a leading personal lines portfolio and niche commercial business

DIVISIONAL ASPIRATIONS

RETAIL*

Develop a liability-led business, grow assets in targeted segments & expand Wealth Management

BUSINESS*

Growing the business through decisive execution

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 28

• Faster loans growth compared to previous quarters, continue targeting profitable segments
• Expanded fee based income via banca & other wealth propositions (aided by new products, campaigns & launched of

priority banking channel) as well as stronger loans & deposits growth

• Improved deposit mix and grew CASA faster than industry leveraging on existing and new channels and alliances
• Brand refresh in progress targeting mass affluent segment
• MBF Cards integration in progress (incorporated results from Dec‟12 onwards), targeted to complete by year end

Retail Banking

Develop a liability-led business, grow assets in targeted segments and expand Wealth Management Aspirations Higher profits from improved asset quality and stronger loans growth

 5.3% Growth  2.3%  9.5%  23.9%  15.7%  14.7%  16.0%

FY13 vs RM'mil FY12* FY13 FY12 PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13 FY13 (RM'mil) 1,883.3 831.4 1,051.9 265.9 786.0 194.9 591.1 FY12 (RM'mil) 1,787.8 759.2 1,028.7 349.2 679.4 169.9 509.5

• Higher profit contribution via growing core business areas through improved marketing, services and distribution

network Outlook PAT

Gross Loans / Financing 46,319.7 49,040.7 ▲ +5.9% Gross Impaired Loans 2.55% 1,221.6 1,250.7 ▲ +2.4% Customer Deposits 33,804.8 37,229.8 ▲ +10.1% CASA Deposits 9,150.6 10,284.6 ▲ +12.4% ROA 1.12% 1.24% ▲ +0.12% CTI 42.5% 44.1% ▲ +1.7% Allowance Coverage 84.4% 87.7% ▲ +3.3%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 29

Aspirations

19.6%

FY13 Income mix

• Higher income underpinned by improved fee income and asset growth
• Expanding customer base and value of business in preferred sectors (construction, manufacturing, oil & gas)
• Seized growth opportunities from beneficiaries of Economic Transformation Programme (ETP)
• Regional coverage teams provided diversified geographic loans and deposits growth

Business Banking

Growing the business through decisive execution Higher income and strong loans and deposits growth

 11.4% Growth  12.8%  5.2%  46.1%  37.5%  37.9%  37.4%

PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13 FY13 (RM'mil) 619.3 105.6 513.7 72.6 441.1 108.8 332.3 FY12 (RM'mil) 555.7 100.4 455.3 134.6 320.8 78.9 241.9

Gross Loans / Financing 15,758.8 17,511.2 ▲ +11.1% Gross Impaired Loans 1.13% 275.3 197.6

• ▼ -28.2%

Customer Deposits 7,023.1 8,406.6 ▲ +19.7% CASA Deposits 2,019.5 2,763.7 ▲ +36.9% ROA 1.66% 1.98% ▲ +0.32% CTI 18.1% 17.1%

• ▼
• 1.0%

Allowance Coverage 129.6% 146.1% ▲ +16.4% FY13 PAT (composition to Group)

FY13 vs RM'mil FY12* FY13 FY12

Outlook

• Expecting higher profit growth for FY2014

PAT

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 30

Gross Loans / Financing 14,625.5 17,104.8 ▲ +17.0% Total Deposits 37,353.0 40,714.6 ▲ +9.0% ROA 1.62% 2.26% ▲ +0.64% CTI 20.2% 17.4%

• ▼
• 2.8%

Ave Assets Management 1,561.5 1,710.8 ▲ +9.6% G G G

• Higher income growth underpinned by strong growth in lending, deposits and transaction banking
• Focused on growing share of wallet in key economic sectors and ETP projects
• Secured new structured trade mandates and loans & financing resulting in higher fee income and net interest income
• Increased diversification of deposit mix and penetration of cash management solutions
• Continued cross sell in key products/solutions under wholesale banking platform

Corporate & Institutional Banking

Target high-profile and high-value clients, increase ‘share of wallet’, deliver innovative and quality solutions and leverage ANZ for x-border businesses Aspirations Continued strong income and lending/ deposits growth

 36.7% Growth  41.4%  17.8%  100.0%  63.7%  68.6%  62.4%

PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13 FY13 (RM'mil) 526.0 91.4 434.6

• 47.8

482.4 107.1 375.3 FY12 (RM'mil) 384.9 77.6 307.3 12.7 294.6 63.5 231.1

FY13 vs RM'mil FY12* FY13 FY12

PAT

FY13 Income mix FY13 PAT (composition to Group)

Outlook

• Anticipating good profit growth for FY2014

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 31

• Improved contributions from funds management and private banking providing strong recurring income, partly offset by

lower income from DCM and CF due to smaller deals size

• Decline in stock broking and equity derivatives contribution with lower trading volumes impacted by weaker market

sentiments/global headwinds, and lower yields from increased competition. Notwithstanding this, broking market share has improved from 6.1% to 6.9%.

Investment Banking

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

• verseas distribution via ANZ

Aspirations Subdued performance with stable

• utlook

Growth  2.6%  23.2%  53.5%  6.0%  54.3%  51.5%  55.2%

▼ CTI 54.0% 72.2% ▲ +18.1% Ave Assets Management 31,484.4 36,673.3 ▲ +16.5% Ave Volume / Contract Traded (RM'mil/month) IB Broking 4,373.0 4,515.0 ▲ +3.2% AmFuture - FKLI 56.9 27.2

• ▼ -52.2%

Market Share as at: IB Broking 6.1% 6.9% ▲ +0.8% AmFuture -FKLI 13.2% 7.5%

• ▼
• 5.7%

1

FY13 vs RM'mil FY12* FY13 FY12

FY13 Income mix FY13 PAT (composition to Group)

Outlook

• FY2014 profit contribution to normalise

PAT

PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13 FY13 (RM'mil) 346.3 249.9 96.4 3.0 93.4 24.7 68.5 FY12 (RM'mil) 450.7 243.6 207.1 2.9 204.3 51.3 153.0

• 1. Includes AmInvestment Management, AmInvestement Services, AmIslamic Funds Management & Private Banking

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 32

10.3%

FY13 vs RM'mil FY12* FY13 FY12

• Delayed in sales pipelines due to the announcement of GE13 on the domestic front
• Lower bond income from lack of significant primary issuance
• Risk aversion in trading arising from global and local uncertainties

Markets

Deliver substantive, integrated and client-led business with full-suite of FX, Rates, Commodities and FI offerings with ANZ collaborations Aspirations Performance impacted by continued volatility in market

Growth 5.0%  43.5%  41.1%  36.3%  42.4%  41.0%  41.0%

PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13 FY13 (RM'mil) 295.1 71.3 223.8

• 9.1

232.9 58.0 174.9 FY12 (RM'mil) 463.3 75.0 388.3

• 6.3

394.6 98.4 296.2

Outlook

• Higher FY2014 profit outlook supported by :

a) Intensifying cross sell initiatives by tapping into the Group‟s regional presence in FX and Derivatives business b) Expansion of regional distribution and trading capabilities PAT

FY13 Income mix FY13 PAT (composition to Group)

CTI 16.2% 24.2% ▲ +8.0% PAT : FX and Derivatives 62.7 71.4 ▲ +13.9% Financial assets HFT 10,182.7 5,174.0

• ▼
• 49.2%

Financial investments AFS 2,168.5 2,268.1 ▲ +4.6% Total Group: Financial assets HFT 10,942.4 7,022.0

• ▼
• 35.8%

Financial investments AFS 6,641.2 7,208.6 ▲ +8.5% Financial investments HTM 1,429.8 6,219.8 ▲ +>100.0%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 33

FY12

Claim ratio 64.2% 60.5%

• ▼
• 3.7%

Expenses ratio 14.9% 17.3%

▲

2.4% Combined ratio 89.4% 89.4%

• FY13

vs RM'mil FY12* FY13 FY12

• Higher net profits on higher premium growth, improved underwriting profits and one-off gains. One-off gains

attributable to more favourable claims experience and closure/release of treaty commutation due to more favourable experience

• Lower claims from enhanced claims management processes, improved claims experience and more stringent

underwriting controls

• Integration of Kurnia on track to deliver synergies (incorporated 6 months of Kurnia PBT results of RM 91.6 mil),

synergies to-date of RM25.5 mil

• Positive capital adequacy ratio exceeds benchmark supervisory target

General Insurance

Leverage scale to lead the market in the motoring segment, whilst building a leading personal lines portfolio and niche commercial business Aspirations Improved performance, commence Kurnia integration

 89.2% Growth  68.0%  >100.0%  >100.0%  69.6%  38.6%  79.5%

Outlook

• Expecting higher premiums growth and profit for FY2014

PAT

FY13 PAT (composition to Group) FY13 FY12 FY13 (RM'mil) 396.4 189.3 207.1

• 2.1

209.3 41.3 167.9 FY12 (RM'mil) 209.5 86.3 123.3

• 0.1

123.4 29.8 93.6 PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 34

• Profits from life business reflected the revisions in reporting requirements, from change in classification of Non-Par fund

and reserves from liability to equity

• Exploring new strategic partnership to become a leading insurance player
• Increased productivity of bancassurance leveraging Group‟s platforms
• Accelerated recruitment and training of quality agency force
• Rationalized product portfolio and distribution cost structure to deliver margin expansion

Life Assurance

To be leading Life Insurer in customer service, productivity and products Aspirations Results reflecting revisions to reporting requirements

Growth  11.8%  78.9%  66.4%  >100.0% >100.0% >100.0% >100.0%

Outlook

• FY2014 profit contribution to normalise

PAT

FY13 vs RM'mil FY12* FY13 FY12

• 3.2%

FY13 PAT (composition to Group) PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13 FY13 (RM'mil) 50.1 106.9

• 56.8

4.6

• 61.4
• 6.6
• 54.8

FY12 (RM'mil) 149.0 95.6 53.4 21.8 31.6 12.9 18.7

Total assets 2,992.9 3,139.6 ▲ +4.9% CAR ratio 224.6% 228.9% ▲ +4.3% Net earned premium 389.0 395.6 ▲ +1.7%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 35

• Higher income from focused effort in working with Relationship Managers to offer specific customised solutions and

improved customer experience

• Core business competencies of full suite Cash Management and Trade & Supply Chain Services yielding impressive

growth in CASA and higher customer utilisation in Trade

• Invested in enhanced technology platforms and streamlined documentation for seamless customer experience
• Higher transaction flows (up 46% yoy) from collaboration with ANZ

Transaction Banking

To become top 5 Transaction Banking Service Provider in Malaysia by FY2015 with 8% market share Aspirations Higher profits and CASA growth from growing share of wallet

 22.0% Growth  22.3%  19.8%  33.3%  36.5%  36.5%  36.5%

PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13 FY13 (RM'mil) 293.8 42.0 251.8 27.8 224.0 56.0 168.0 FY12 (RM'mil) 240.9 35.1 205.8 41.7 164.1 41.0 123.1 FY13 vs RM'mil FY12* FY13 FY12

FY13 Income mix FY13 PAT (composition to Group)

Outlook

• Anticipate good profit growth for FY2014

PAT

Gross Loans / Financing 4,691.0 5,099.0 ▲ +8.7% Trade Finance 4,616.1 4,986.2 ▲ +8.0% Cash Management 16,960.9 19,658.7 ▲ +15.9% CASA Deposits 4,481.5 7,199.6 ▲ +60.7% ROA 2.79% 3.40% ▲ +0.6% CTI 14.6% 14.3%

• ▼
• 0.3%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 36

FY13 PAT (composition to Group)

• Higher income backed by stronger asset growth as a result of increased focus to feature Islamic banking products

& services

• Strong financing growth in both retail (driven by auto financing) and non-retail. Greater emphasis was placed to

grow GLC and GLIC business while capitalising on ETP related projects.

• Strong deposits & CASA growth, resulting from a continued focus on sticky funds and improving funding mix

Islamic Banking

To be the Islamic Bank of choice Aspirations Lower provisions despite strong loan growth

 6.6% Growth  0.7%  16.1%  8.5%  5.2%  11.9%  11.4%

Outlook

• Increase penetration of solutions and cross-selling to support AmBank Group as “main bank”

PAT

FY13 vs RM'mil FY12* FY13 FY12 PAT FY12 Income Expenses PBP Allowances PBT Tax PAT FY13 FY13 (RM'mil) 847.8 353.4 494.4 146.2 348.2 77.8 270.3 FY12 (RM'mil) 795.0 304.3 490.7 159.8 330.9 88.4 242.6

Gross Financing 18,968.2 22,492.2 ▲ +18.6% Gross Impaired Financing 1.19% 237.7 268.4 ▲ +12.9% Customer Deposits 18,263.1 23,176.5 ▲ +26.9% CASA Deposits 4,441.6 6,639.9 ▲ +49.5% ROA 1.02% 0.93%

• ▼ -0.09%

CTI 38.3% 41.7% ▲ +3.4% Allowance Coverage 200.5% 188.1%

• ▼ -12.5%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 37

• Includes funding cost to support recent acquisitions
• Includes AmFamily Takaful 1st year results
• MI represents non-controlling interests of the Group

Group Operating Segments

FY13 PAT (composition to Group)

2.2%

 14.1% Growth  >100.0%  14.7%  >100.0%  73.6% >100.0  >100.0%

PAT

 19.8% > 66.2%

PATMI FY12 Income Expenses PBP Allowances PBT Tax PAT FY12 MI PATMI FY13 FY13 (RM'mil) 257.7 405.5

• 147.8
• 143.8
• 4.0
• 41.9

37.9 58.1

• 20.1

FY12 (RM'mil) 299.9 353.5

• 53.5
• 38.5
• 15.0
• 3.9
• 11.2

48.5

• 59.6

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 38

EXECUTIVE SUMMARY Page 3 1 FY2013 GROUP FINANCIAL PERFORMANCE Page 11 2 OUTLOOK & STRATEGIC PRIORITIES Page 22 3 DIVISIONAL STRATEGY & PERFORMANCE Page 26 4 SUPPLEMENTARY INFORMATION – AMBANK GROUP Page 38 SUPPLEMENTARY INFORMATION – ECONOMY & INDUSTRY Page 52 6 5

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 39

Strategic Business Transformation: Good Progress

 Set Group‟s MTA, transformation strategy, agenda and targets  Enhanced focus on asset quality and risk reward trade offs  Realigned business model towards profitable segments in HP, mortgage & fixed income  Consolidated Group balance sheet activities within commercial bank  Split composite insurance license to General and Life

Strategic Business Transformation

High Priority Growth Initiatives Governance & Enablement Functions

 Created deposit businesses as profit centres across Group  Commenced realigning non-retail customer segmentation and divisional focus  Proactively strengthened capital and liquidity management  Repositioned balance sheet for rising interest rates  Completed realignments in non-retail customer centric business models  Continued expanding product offerings and new capabilities in Markets division  Balance sheet funding strengthened via long term fund raisings  Developed retail focus customer centric business models  Implemented basic account plans for business customers to increase SOW  Initiated Group Rebranding program  Initiated revamping of branches to refresh customer experience  Realigned account management teams for more effective account planning

FY2012 & FY2013 60 & 72 months FY2011 48 months FY2010 36 months FY2008 & FY2009 12 & 24 months

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 40

High Priority Growth Initiatives: Implemented To-Date

 Created new profit centre based retail branch distribution model  Created a separate Corporate and Institutional Banking (CIB) Division  Developed new FX business in collaboration with ANZ  Enhanced cash management offering via Gross Payroll system  Friends Life brought in as new life strategic business partner  Accelerated building of scale in non-retail customer businesses  Increased focus on GLC, GLIC and MNC businesses  Developed new Rates business in collaboration with ANZ  Expanded distribution footprint (particular focus on 7-11 ATM‟s) & alternative channels  Commenced activities to leverage ANZ International connectivity  Developed new wealth management business strategies  Created a new Transaction Banking business focusing on trade and cash management  Inked business principle agreements with ANZ to leverage international connectivity  Commenced a new family Takaful business with Friends Life  Commenced Priority Banking expansion initiatives  Completed Kurnia & MBF Cards acquisitions and commence integration  Repurchased remaining shareholding in AmLife and AmTakaful  Secured approval as Private Retirement Scheme (PRS) provider  Established partnership with Travelex for money changing services

Strategic Business Transformation

High Priority Growth Initiatives

Governance & Enablement Functions

FY2012 & FY2013 60 & 72 months FY2011 48 months FY2010 36 months FY2008 & FY2009 12 & 24 months

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 41

Governance and Enablement Functions Streamlined: Supports Better Decision Making

 Privatised AmInvestment Bank as part of migration to universal banking platform  Consolidated / simplified governance committee structures and strengthen risk disciplines  Created a Group PMO to prioritise and manage key strategic initiatives  Established Advance Risk Recognition Program (ARRP)  Separated ALCO, capital and balance sheet management from Markets  Delivered Peer Bank relative performance benchmarks  Implemented short and long term performance incentives  Delivered 8 new generation retail scorecards & new market risk models  Commenced PD, LGD & EAD models for retail and non-retail, non-retail security indicators  Developed leadership bench-strength and succession planning  Implemented Operational Risk Incident Reporting system and Basel II capital calculator  Implemented FTP system aligned to balance sheet strategies  Consolidated some Group Support into Centres of Excellence  Initiated new retail and non retail PD / LGD models, Security Indicators, Collateral management, and Market risk system (VIPER)  Initiated core banking system replacement programme  Implemented a new ALM system and divisional capital allocations under Basel II  Integrate new Basel III frameworks into planning processes  Finalised vendor selection and commenced core banking system replacement  Developed AmFamily Takaful system to support commencement of Takaful business  Implemented Model Execution Platform (MEP) provisioning methodology for better risk assessment and pricing capabilities  Transitioned to full MFRS 139 compliance on collective provisioning for credit risk  Developing new behavioral scoring models for Retail and SME portfolio

Strategic Business Transformation High Priority Growth Initiatives

Governance & Enablement Functions FY2012 & FY2013

60 & 72 months FY2011 48 months FY2010 36 months FY2008 & FY2009 12 & 24 months

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 42

Funding strategy, improving diversity

RM10 bil senior notes programme

• 1st senior notes issuance by a financial institution in Malaysia
• AmBank has outstanding RM2.72bil senior notes (RM7bil
• ver 30 year programme) as at FY2013
• AmIslamic has outstanding RM550m senior sukuk (RM3bil

musyarakah programme) as at FY2013

• Both rated AA3 (RAM)

Subordinated Sukuk

• RM2bil subordinated sukuk musyarakah programme (issued

RM600mil in Sep‟11,RM200mil in Jan‟12 & RM200mil in Dec‟12) Medium Term Notes

• RM2bil medium term note (outstanding RM1.97bil as at

Dec‟12)

• RM2bil medium term note (issued RM1.0bil in Aug‟12 &

RM0.3bil in Nov‟12)  Improve funding stability, maturity gap & liquidity ratios  Reduce dependence on short-dated deposits to fund long-dated fixed rate loan assets which incur liquidity risk and interest rate risk  Diversifies investor base  No obligation for buy back since we are not exposed to withdrawal risks and the notes are traded in the open market  Enable depositors to invest in long and medium dated papers

Supplemented by:

Customer deposits

• Enhance domestic distribution through branches/channels aligned to demographics
• Adjusted LDR1 of 88.7%
• CASA: RM16.8bil (growth = 27.8%), FD: ~RM67.9bil (strong retention)

Funding diversity underpinned by:

Benefits to funding strength

 Statutory reserve and liquidity requirement savings  Reduced exposure to interest rate risks Loans with Recourse

• Recourse obligations on loans sold to Cagamas (maturing

2017)

• Islamic financing sold to Cagamas (maturing 2016)

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 43 117.3 215.6 332.9 574.7 907.6 129.0 240.6 369.6 642.5 1,012.1 Mar'12 Mar'13  10.0%  11.6%  11.0%  11.8%  11.5% 4.8 8.4 13.2 63.6 76.8 5.1 16.8

Mar'12 Mar'13

 6.6% 39.7%  27.8%  6.8%  10.4% 67.9 84.8 11.8

Savings Current Account CASA Fixed Deposits Core Deposits

Industry Deposits Growth by Type RM’bil

Deposits by Type : AmBank Group vis-à-vis Industry

RM’bil

AmBank Group Deposits Growth by Type

6.0% 13.9% 81.3% AmBank Group Core Deposits Composition Savings Current Account Fixed Deposits

Savings Current Account CASA Fixed Deposits Core Deposits

12.7% 23.8% 63.5% Industry Core Deposits Composition Savings Current Account Fixed Deposits

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 44 28.0 13.6 2.1 2.1 8.4 2.5 1.2 0.001 2.8 20.0 4.1 45.8 39.0 84.8

Purchase of Transport Vehicles Purchase of Res Properties Credit Cards Personal Use Purchase of Non-Res Properties Purchase of Securities Fixed Assets Consumer Durables Construction Working Capital Other purpose Retail Loans Business & Corporate Loans Total loans

Mar-13

5.4%  6.7%  24.8% 0.5%  31.5% 45.0% 8.7%  25.2% 30.3%  8.0% 12.8%  6.2%  12.1%  8.9%

156.9 312.9 32.2 55.8 137.2 60.4 9.0 0.1 30.7 266.9 69.3 557.7 573.6 1,131.3

Mar-13

 10.1%  11.0%  10.6%  8.1%  12.4%  1.2%  9.1%  18.2%  29.3% 1.3% 20.7%  13.1% 3.2%  17.5%

Loans by Economic Purpose: AmBank Group vis-à-vis Industry

composition : 33.0% 16.1% 2.4% 2.5% 9.9% 2.9% 1.4% 0.0% 3.3% 23.6% 4.8% 54.0% 46.0%

RM’bil

RM’bil

AmBank Group Loans Growth by Economic Purpose* Industry Loans Growth by Economic Purpose

composition : 13.9% 27.7% 2.8% 4.9% 12.1% 5.3% 0.8% 0.0% 2.7% 23.6% 6.1% 49.3% 50.7%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 45

Retail customer centricity transformation journey

Previously

 Product silo approach

• Products specific sales

approach

• Pricing based on

individual product profitability

• Customers not

recognised for their total portfolio with the group  Basic segmentation – differentiate customers based on demographics  Life stage focus: Family, Youths, Seniors

Product based strategy

 Developing bank-wide segment strategy  Integrate marketing programs  Channel optimisation  Building segment capabilities  Maximise customer‟s relationship  Elevate & evolve segment focus  Entrench segment focus  Upgrade research & analytics  Increase sophistication in segment marketing

FY2013 – 2014 Segment Expansion FY2015 & beyond Segmentation focus Building “Customer Centricity” model

 “Main bank” for our selected customer segments  Segment focused

• rganization culture

 Higher share of wallet, top-of-mind awareness

Building in progress Outcome

Customer Centric

• rganisation

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 46

ANZ & AmBank Group Partnership

ANZ diversified footprint in Asia

16 Asian markets, 98 branches and 5 Partnerships

Source: Trade Finance Magazine 2013

ANZ role and value add ANZ’s representation on Board and within management

• Mark Whelan – Director
• Gilles Planté - Director
• Alistair Bulloch – Alternate Director

BOARD MANAGEMENT

Senior Management

• Mandy Simpson – Chief Financial Officer
• Nigel Denby – Chief Risk Officer
• Ross Foden – Chief Operations Officer
• Paul Lewis – Managing Director, Retail

Banking Management

• Senior GM, Transaction Banking
• Head, Wealth Management
• Seconding ANZ staff into key roles
• Providing technical expertise
• Support new product development
• Two-way customer referrals
• Joint account planning
• Access to regional network & connectivity

CHINA HONG KONG PHILIPPINES VIETNAM NEW ZEALAND SOUTH KOREA JAPAN TAIWAN INDONESIA AUSTRALIA PACIFIC ISLANDS SINGAPORE LAOS THAILAND CAMBODIA MALAYSIA PAPUA NEW GUINEA

INDIA

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 47

AmGeneral Insurance Berhad – No 1 position in Motor

• Justin Breheny (IAG Asia CEO) - Director
• Duncan Brain - Director

SENIOR MANAGEMENT

• Duncan Brain – Advisor
• Travis Atkinson – CEO AmGeneral Insurance

Berhad

• Stephen Beatty – General Manager, Claims

OPERATIONAL & PROJECT SUPPORT / CONSULTANTS

• Around 7 operational and project support /

consultants

Board Management

 Involved in the management of AmGeneral Insurance, offering skills transfer, partnership and relationship models of IAG  Adding value through claims re-engineering savings, increased revenue via product development, underwriting and pricing

GENERAL INSURANCE Value Proposition

 AmG completed the Kurnia acquisition on 26 September 2012. The combined entity was renamed AmGeneral Insurance Berhad on 1 March 2013.  One of Malaysia’s leading general insurers and the number one motor insurer  Insures around one in five cars in Malaysia (~21% market share) and ~12% market share for general insurance by GWP  GWP over RM1.7 billion  4 million policy holders and a diversified distribution base – 7,000 plus agents, supported by a national network of branches and over 180 AmBank branches across the country  Cost synergies and operational efficiencies to achieve value accretion over the next 2 years  IAG provided substantial leadership and input into the acquisition process and integration planning  Resources from IAG Group have been mobilised to Malaysia to assist with integration

AmGeneral Insurance

Leveraging strategic partnership with global insurance partner

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 48

• 2. AmLife & AmG branches and agency office

Multiple distribution channels aligned to demographics

Kuala Lumpur

Branches 29 ATMs 149

Terengganu

Branches 4 ATMs 20

Johor

Branches 23 ATMs 97

Melaka

Branches 5 ATMs 37

Negeri Sembilan

Branches 8 ATMs 44

Pahang

Branches 8 ATMs 36

Sarawak

Branches 17 ATMs 47

Sabah

Branches 9 ATMs 35

Pulau Pinang

Branches 16 ATMs 52

Perlis

Branches 1 ATMs 4

Kelantan

Branches 2 ATMs 22

Perak

Branches 19 ATMs 49

Kedah

Branches 5 ATMs 29

Putrajaya

Branches 1 ATMs 4

Selangor

Branches 39 ATMs 261

Labuan

Branches 1 ATMs 2 Population Density: < 100 persons per km2 101-500 persons per km2 501-1,000 persons per km2 1,001-1,500 persons per km2 > 1,501 persons per km2

Commercial banking branches:

• 187 branches nationwide
• #61 in no. of branches
• 3 AmIslamic branches
• 888 ATMs
• 404 ATMs (#1 provider of ATMs) at 7-Eleven
• 163 Electronic Banking Centres
• 34 AmGeneral branches (include 4 dual branded

branches)

• 18 AmLife office, 14 Agency office
• 14 AmInvestment offices
• 26 MBF branches
• 4 Regional Business Centres (Penang, Johor,

Kuching, Kota Kinabalu)

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 49

AmInvestment Group Berhad

AmCorp Group Bhd, 16.4%

ANZ Funds Pty Ltd 1, 23.8%

EPF, 12.7%

Other shareholders, 47.1%

Foreign shareholding excluding ANZ FY2010 FY2011 FY2012 FY2013 27% 27% 26% 29%

Solid shareholding structure & franchise value

As at 31 March 2013

AmLife Insurance Berhad

AMMB Holdings Berhad

Capital Markets

100% 100% 100%

Asset Management

100% 100% 100% 51%

Banking Insurance

AmGeneral Holdings Berhad2 AmFamily Takaful Berhad

AmBank (M) Berhad AmIslamic Bank Berhad AmInvestment Bank Berhad AMAB Holdings Sdn Bhd

100%

MBF Cards (M’sia) Sdn Bhd

Bonuskad Loyalty Sdn Bhd

33.33% 100%

AmGeneral Insurance Berhad3

100%

49%

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 50

Banking sector share price movement / target price and recommendations

Banking Sector Share Price Movement

132.9% 85.6% 82.7% 75.0% 44.2% 12.2% 30.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0%

HLFG RHB Cap AMMB PBB CIMB MBB KLCI

(Note: 18 May 2007 vs. 10 May 2013)

Ratings FY2007 FY2013 AmBank (M) RAM A2/P1/Stable AA3/P1/Positive Fitch BBB-/F3/Stable BBB/F3/Stable S&P BBB-/A-3/Stable BBB+/A-2/Stable Moody‟s Baa2/P-3/Stable/D- Baa1/P-2/Stable/D+1 AmInvestment RAM AA3/P1/Stable AA3/P1/Positive Fitch BB+/B/Stable BBB/F3/Stable S&P BB+/B/Stable BBB+/A-2/Stable Am Islamic RAM A2/P1/Stable AA3/P1/Positive AMMB RAM NA A1/P1/Positive

Upgraded ratings Target Price and Recommendations

+2 +1 +2 +2 +3 +2

+1

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 51

Major investment banking deals clinched

Secondary Offerings IPO Debt Capital Market M&A

Unconditional Take- Over Offer in Bonia Corporation Bhd October 2012 RM204.91 million Freeway Team

• Sdn. Bhd.

FREEWAY TEAM SDN. BHD. RM5.980 billion Merger of Businesses of Kencana Petroleum and Sapuracrest Petroleum May 2012 Kencana Petroleum Berhad Conditional Take-Over Offer in Pontian United Plantations Berhad September 2012 RM624.82 million TSH Resources Berhad RM 575 million DRB-Hicom Berhad Disposal of Entire Business of Hicom Power Sdn Bhd December 2012 Unconditional Take-

• ver Offer on

Dunham Bush Holding Berhad November 2012 RM2.10 million Yantai Moon Group (Hong Kong) Limited Starhill Real Estate Investment Trust RM1.31 billion Acquisition of Marriott Hotels comprising Sydney Harbour Marriott, Marriott Melbourne and Marriott Brisbane November 2012 Khazanah Nasional Berhad Joint Lead Manager March 2013 RM740 Million Government-Guaranteed Sukuk under the RM20.0Bil Sukuk Programme RM1,195 Million Government-Guaranteed Sukuk Murabahah under the RM5,311 Million Sukuk Programme Joint Lead Manager Feb 2013 RM615 Million Sukuk Musyarakah under the MYR10.0 Billion Sukuk Programme Aman Sukuk Berhad Joint Lead Manager March 2013 Putrajaya Holdings Berhad RM800 Million RM3.0 Billion Sukuk Programme Joint Lead Manager Feb 2013

DanaInfra Nasional Berhad MYR8.0 billion Islamic Commercial Paper / Islamic Medium Term Note Programme

Joint Lead Manager Dec 12 RM1.5 Billion Weststar Capital Sdn Bhd RM900 Million MYR900.0 Million Sukuk Mudharabah Programme Principal Adviser, Lead Arranger and Lead Manager Nov 12

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 52

EXECUTIVE SUMMARY Page 3 1 FY2013 GROUP FINANCIAL PERFORMANCE Page 11 2 OUTLOOK & STRATEGIC PRIORITIES Page 22 3 DIVISIONAL STRATEGY & PERFORMANCE Page 26 4 SUPPLEMENTARY INFORMATION – AMBANK GROUP Page 38 SUPPLEMENTARY INFORMATION – ECONOMY & INDUSTRY Page 52 6 5

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 53

94.1 20 40 60 80 100 120 140 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012 BCI

• 10

10 20 30 40 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012

RM' bil

6.4%

15.0%

0% 5% 10% 15% 20% 25% 30% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012

GDP Consumption Investment

3.0% 1.6%

0% 5% 10% Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar 2010 2011 2012 2013

Unemployment Rate CPI

Moderating growth CPI & unemployment rates remain low FDIs remain robust

GDP

Domestic consumption and investment continues to drive Malaysian economy

Slight deterioration in near term expectations

Business Conditions Index

4.8%

Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar Feb‟13

Trade Balance FDI

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 54

10.1% 11.0% 10.6%

5% 10% 15% Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar 2010 2011 2012 2013

Retail growth YoY Non-retail growth YoY Total loans growth YoY

Domestic economy expected to be resilient

Interest rates expected to remain in the short term

4.70% 3.00% 6.53%

0% 5% 10% 15% 2006 2007 2008 2009 2010 2011 2012 2013

Average lending rate (commercial banks) Average OPR Average BLR

RM’mil

Stable household debt / GDP with sustainable loan application Stable loans applications, softening loans approvals Loans growth remains resilient

To be updated for the his

• 10.3%
• 13.0%
• 40%
• 20%

0% 20% 40% 60% Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar 2010 2011 2012

Loans application growth YoY Loans approved growth YoY

257.7 307.6 342.1 350.4 263.7 333.7 400.1 415.8 33.4% 34.2% 34.6% 31.9% 75.1% 75.8% 76.6% 80.5%

• 100

100 300 500 700 900 1,100 1,300 1,500

Retail loans application Non-retail loans application Gross national savings Household debt/GDP

2009 2010 2011 2012

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 55

99.2%

1.3%

• 2.0%

2.0% 6.0% 10.0% 14.0% 18.0% 80% 85% 90% 95% 100% 105% Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar 2010 2011 2012 2013

Loan Loss Coverage Gross Impaired Loans

Strong fundamentals in the banking sector

RM’bil

Capital activities supported by debt issuance Sustained deposits growth provides liquidity

RM’mil

Asset quality remains intact Capital levels above BNM’s Basel 3 guidelines

Loan loss coverage Gross impaired loans

Improving gross impaired loans

78.3%

200 400 600 800 1,000 1,200 1,400 1,600 Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar 2010 2011 2012 2013

Total Deposits LD Ratio

5 10 15 20 25 30 35 40 45 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013

New issues of equity New issues of debt

14.5% 13.1%

0% 5% 10% 15% 20% Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar 2010 2011 2012 2013

RWCA CORE CAPITAL

Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 56

ETP: Propelling Malaysia towards becoming a high-income, developed nation by 2020

ETP Overview Four Pillars of Malaysia’s National Transformation ETP execution gaining momentum

• RM48k (USD15k) GNI per

capita

• RM1.7 trillion GNI
• 6% annual GDP growth

GROSS NATIONAL INCOME JOBS

• 31.6m population
• 3.3m additional jobs

TRANSFORMATIONAL ACTIONS INVESTMENT Focus Drivers:

• 12 NKEAs, 131 EPPs
• 60 Biz Opportunities
• Private-sector led

Competitiveness ‘Enablers’

• 6 SRIs & 51 Policy Measures
• RM1.4 trillion investment
• 92% private investment
• 8% public investment
• 73% DDI, 27% FDI

ECONOMIC TRANSFORMATION PROGRAMME

Vision 2020 Preserving and enhancement of unity in diversity

Note: Data was correct as on ETP announcement date, the ETP is an evolving programme, in the past 2 years, some EPPs have been dropped, some new ones were added * Based on ETP update on 16 Nov 2012, the discrepancies with the sums of NKEAs was due to some undisclosed investment values and rounding errors

Round 10 (13 Sep 2012) ROUND 1 (25 Oct 2010) ROUND 2 (30 Nov 2010) ROUND 3 (11 Jan 2011) ROUND 4 (8 Mar 2011) ROUND 5 (19 Apr 2011) ROUND 6 (13 Jun 2011) ROUND 7 (8 Sep 2011)

Initiatives Investment (RM’bil) GNI Impact (RM’bil) Job creation (‘000)

TO- DATE* TARGET (2020) % OF TARGET

ROUND 8 (10 Nov 2011)

9 9 19 23 12 15 10 13 21 7 11 149

• 5.3

8.3 66.8 14.7 11.4 63.4 1.4 8.0 20.5 5.6 6.7 212.0 1, 400 15.0 0.1 84.5 32.5 20.1 16.6 66.3 8.4 6.7 4.6 2.4 1.1 137.6 1,700 14.8 13 70.5 52.4 88.3 74.4 63.5 10 16.9 39.9 18 40 411 3.3 mil 12.5

Round 9 (28 May 2012) Round 11 (16 Nov 2012)

Effective delivery

• f government

services New Economic Model – high income, inclusive & sustainable nation Smooth implementation of government’s development programme 1 Malaysia People First, Performance Now Government Transformation Programme 6 National Key Result Areas (NKRAs) Economic Transformation Programme(ETP) 12 National Key Economic Areas (NKEAs) 10th Malaysia Plan Macroeconomic growth targets & expenditure allocation

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 57

Malaysia remains an attractive investment destination

National Savings Rate (% of GDP) Inflation (%) GDP per capita (USD)

Malaysia Thailand Singapore Indonesia Philippines Vietnam

2012 2013f 2012 2013f 2012 2013f 2012 2013f 2012 2013f 2012f 2013f 5.6 5.1 6.4 5.9 1.3 2.0 6.2 6.3 6.6 6.0 5.0 5.2 10,304 10,946 5,679 6,572 51,162 52,179 3,592 3,817 2,614 2,918 1,528 1,705 3.0 3.0 0.5 0.7 2.0 2.0 6.2 6.1 7.0 7.0 4.5 4.5 31.9 32.4 30.6 30.9 45.6 44.6 32.6 32.3 22.3 22.5 30.7 30.7 1.6 2.2 3.0 3.0 4.6 4.0 4.3 5.6 3.1 3.1 9.1 8.8 6.4 6.0 0.7 1.0 18.6 16.9

• 2.8
• 3.3

2.9 2.4 7.4 7.9

• 4.2
• 4.0
• 1.5
• 2.9

5.5 5.1

• 1.4
• 2.8
• 2.4
• 2.1

N/A N/A 29.5 30.0 64.4 64.7 5.4 5.5 244.5 248.0 95.8 97.5 90.4 91.5

Unemployment (%) Real GDP Growth, % YoY

 ASEAN growth to remain robust but not immune to global economy challenges  Malaysia‟s growth to be driven by private investment (through ETP) as well as domestic consumption (supported by low inflation and unemployment)

Current account balance (% of GDP) Government structural balance (% of GDP) Population (mil)

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 58

Glossary / Disclaimer of warranty and limitation of liability

Reported Performance Reported performance refers to the financial performance as reported in the audited financial statements and disclosed to the market One Offs One 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 Performance Underlying performance refers to the financial performance adjusted for one off impacts as above Business Divisions Business divisions

• 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 Segments Operating 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 “AMMB” 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 significant 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 securities. 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 regard 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 persons. 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

• r 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

AMBANKGROUP - GROUP INVESTOR RELATIONS & PLANNING 59

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 Ganesh Kumar Nadarajah Group General Manager, Group Investor Relations and Planning Karen Chuah Manager, Group Investor Relations and Planning Tel : +603 2036 1435 Fax : +603 2031 7384 e-mail : ganesh-kumar@ambankgroup.com or +6019 2093955 chuah-mei-jiuan@ambankgroup.com or ir@ambankgroup.com