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HLB Q1FY20 ended 30 September 2019 2

1

HLB Q1FY20 ended 30 September 2019

525 522 44.6% 43.0% Q1FY19* Q1FY20 RM'mil 652 693 Q1FY19* Q1FY20 RM'mil 1,177 1,215 Q1FY19* Q1FY20 RM'mil 129.8 138.7 Q1FY19 Q1FY20 RM'bil 0.81% 0.81% 128% 110% 199% 196% Q1FY19 Q1FY20

Key financial highlights

An encouraging start to the new financial year

3

Total Income Opex & CIR Operating Profit

• Core top-line growth supported by expansion

in loan book coupled with abated funding cost pressure

• Opex remains well-managed; CIR improved to

43.0%

• Solid underlying business performance amidst
• ngoing external headwinds

GIL & Coverage Ratio Gross Loans Deposits

• Asset

quality amongst the best; GIL maintained below 1%

• Loans growth momentum led by business and

mortgages segments

1%

LIC (including reg reserves) 158.8 163.5 Q1FY19 Q1FY20 RM'bil

3% 7%

• Healthy

deposit growth driven by CASA expansion

Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19

3% 6%

HLB Q1FY20 ended 30 September 2019

Management guidance

Most KPIs on track

4

Non-Interest Income Ratio Gross Loan Growth Gross Impaired Loan Ratio Cost-to-Income Ratio Net Interest Margin Return on Equity Achieved Q1FY20 Target FY2020 5%-6% >28% 43%-43.5% <1% 10.5%-11% ~2% 6.8% y-o-y

P

10.7%

P

2.03%

P

27.4%

~

43.0%

P

0.81%

P

HLB Q1FY20 ended 30 September 2019

Profit & Loss

Robust growth on net interest income, prudent cost control and consistent contribution from associates

5

RM’mil (underlying) Q1FY19* Q1FY20 YoY % QoQ % Total income 1,177 1,215 3.3% 4.0% Operating expenses (525) (522)

• 0.6%
• 1.5%

Operating profit before allowances 652 693 6.3% 8.6% Loan allowances & other impairments (20) 9 >100% >100% Share of profits from associates 147 145

• 1.3%

2.3% Profit before tax 779 847 8.7% 15.5% Profit after tax 635 689 8.5% 8.2%

• Resilient top-line performance upheld

by net interest income and sustained underlying non-interest contribution.

• CIR remained strong while delivering

positive JAWS.

• Profit

contribution from BOCD remains solid.

635 689 29 9 3 28 2 14

Core PAT Q1FY19* Net Interest Income Non Interest Income Opex LIP + Impairment Loss Associates Tax Core PAT Q1FY20 Favorable impact to earnings Adverse impact to earnings

Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19

HLB Q1FY20 ended 30 September 2019

Net Interest Income & NIM

Margin increased from loan book growth and lower cost of funds post OPR cut

6 7.7% q-o-q

1,189 1,214 1,220 1,199 1,138 2,041 2,078 2,077 2,017 2,019

852 864 857 819 882

1.98% 1.98% 2.00% 1.89% 2.03% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 RM'mil Interest Expense Interest Income Net Interest Income NIM

14bps q-o-q 5.1% q-o-q 0.1% q-o-q

Repricing of high cost fixed deposits post OPR

HLB Q1FY20 ended 30 September 2019

138 150 166 127 137 125 35 28 12 24 34 30 72

• 27.6%

29.9% 27.4% Q1FY19 Q4FY19 Q1FY20

Fee Income Trading & Investment Forex Islamic and others Divestment of joint venture Non Interest Income ratio

*

Non-Interest Income

Remained stable for Q1FY20; supported by pick up in wealth management

7

Fee income:

• f which

Credit Card Fees

4.3%

Q1FY20 RM53 mil Q1FY19 RM55 mil

Wealth Management Income

17.2%

Q1FY20 RM32 mil Q1FY19 RM27mil

397 349 334

Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19

HLB Q1FY20 ended 30 September 2019

Operating Expense

Costs remained well-contained whilst underlying CIR improved to 43%

8

Composition of Operating Expenses

Personnel cost 55% Establishment 25% Marketing 8% Admin & general 12%

Q1FY20

293 290 288 128 128 127 42 48 43 62 65 64

44.6% 45.4% 43.0% Q1FY19 Q4FY19 Q1FY20

Personnel cost Establishment Marketing Admin & general CIR

525

*

530 522

Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19

HLB Q1FY20 ended 30 September 2019 129,835 138,694 6,120 2,275 464 Total Loans Q1FY19 Retail Business & Corporate International Operations Total Loans Q1FY20

Loans

Growth traction continued amid relatively softer business environment

9

6.8% y-o-y

Q1FY19 RM4.5 bil

Residential Properties Transport Vehicle Unsecured (CC+PL) 10.2%

Q1FY20 RM69.0 bil Q1FY19 RM62.6 bil Q1FY20 RM17.3 bil Q1FY19 RM17.3 bil Q1FY20 RM7.1 bil Q1FY19 RM7.1 bil

SME

Community SME Banking

0.7%

Q1FY20 RM5.3 bil

Singapore

Q1FY19 RM5.2 bil Q1FY20 RM0.7 bil Q1FY19 RM0.5 bil

Vietnam Cambodia

Q1FY20 RM1.3 bil Q1FY19 RM1.1 bil Q1FY20 RM6.2 bil

Stable

Q1FY19 RM20.0 bil Q1FY20 RM21.8 bil

37.2% 8.9% 9.9%

Q1FY19 RM36.3 bil Q1FY20 RM39.9 bil

Domestic Business Enterprises 37.4% 22.1%

~

Stable

~

HLB Q1FY20 ended 30 September 2019

Asset Quality

Solid asset quality position with GIL ratio maintained within guidance

10

Loan Impairment Coverage (LIC) Gross Impaired Loans

957 1,203 1,126 1,071 1,124 0.79% 0.96% 0.87% 0.78% 0.81% 1.62% 1.63% 1.60% 1.56% 1.60% FY16 FY17 FY18 FY19 Q1FY20 RM'mil

Gross impaired loans GIL Ratio Industry GIL ratio

120% 96% 89% 118% 110% 181% 151% 155% 197% 196% 86% 84% 97% 92% 89% FY16 FY17 FY18 FY19 Q1FY20

LIC LIC (incld reg reserve) Industry LIC

HLB Q1FY20 ended 30 September 2019

Asset Quality

Indicators remained healthy with no pressure on any particular segment

11

Malaysia Overseas Residential Properties Transport Vehicles SME

GIL RM’mil GIL ratio %

Group

1,113 1,064 1,118

0.91% 0.82% 0.85%

FY18 FY19 Q1FY20 13 7 6

0.19% 0.10% 0.08%

FY18 FY19 Q1FY20 353 376 395

0.58% 0.56% 0.57%

FY18 FY19 Q1FY20 134 122 116

0.79% 0.70% 0.67%

FY18 FY19 Q1FY20 353 331 309

1.72% 1.54% 1.42%

FY18 FY19 Q1FY20

HLB Q1FY20 ended 30 September 2019

62,745 67,039 66,570

FY18 FY19 Q1FY20

88,159 85,518 86,875

FY18 FY19 Q1FY20

88,222 91,064 90,439

FY18 FY19 Q1FY20

41,202 41,725 41,828

FY18 FY19 Q1FY20

1.3% y-o-y

148,524 155,233 157,414 163,070 163,543

FY16 FY17 FY18 FY19 Q1FY20 RM'mil

Deposit

Healthy growth driven by robust CASA expansion

12

CASA

26% mix

Fixed Deposits Individuals Business Enterprises

1.3% y-o-y

3.0% y-o-y

3.0% y-o-y

RM’mil RM’mil

5.5% y-o-y

Note: Business enterprises deposits including FI RM’mil RM’mil

53% mix

HLB Q1FY20 ended 30 September 2019

88.7% 90.6% 90.6% 90.0% 90.2% 81.2% 80.6% 82.0% 84.4% 84.8% FY16 FY17 FY18 FY19 Q1FY20

Industry LDR HLB LDR

Capital Adequacy^ Loan Deposit Ratio (LDR)

Liquidity & Capital

Robust liquidity and capital positions

13

Note: Industry data derived from banking system’s commercial banks plus Islamic banks only Note: ^ Capital base & ratio after proposed dividends

Q1FY20 Liquidity Coverage Ratio (LCR) 126% Loan to Funds Ratio (LTF) 88% Loan to Funds & Equity Ratio (LTFE) 76%

12.4% 12.7% 12.6% 13.1% 12.8% 16.1% 16.3% 16.4% 16.3% 15.7% 13.1% 13.3% 13.6% 14.1% 13.4% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20

CET1 Tier 1 Total capital ratio

HLB Q1FY20 ended 30 September 2019

Shareholder Value

Returns came in within guidance

14

Net Assets & Earnings Per Share Return on Equity & Return on Assets

10.5% 10.1% 10.7% 1.24% 1.23% 1.33% Q1FY19* Q4FY19 Q1FY20 ROE ROA

Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19

11.9 12.0 12.2 12.4 12.7 31 33 31 31 34 Q1FY19* Q2FY19 Q3FY19 Q4FY19 Q1FY20 NAV/share EPS

HLB Q1FY20 ended 30 September 2019

8,418 9,302 9MFY18 9MFY19

RMB'mil

3,399 4,011 9MFY18 9MFY19

RMB'mil

173,660 222,254 9MFY18 9MFY19

RMB'mil

1.56% 1.45% 9MFY18 9MFY19

Performance of Associated Company:

Bank of Chengdu Co., Ltd.

15

Financial Highlights for 9M ended 30 September 2019 (unaudited) Robust ROE Solid Cost-to-income Ratio Prudent Coverage Ratio Strong Total Capital Ratio

16.3% 16.3% <25% <25% 258% 258% 15.9 15.9%

Gross Loan Operating Income Profit After Tax GIL ratio

11% 18% 28% 11bps

HLB Q1FY20 ended 30 September 2019 16

2

HLB Q1FY20 ended 30 September 2019

Summary

A positive start to a new financial year

17

• NIM% rebounded post OPR cut coupled with prudent cost control and healthy asset quality

metrics has resulted in a solid first quarter in a still challenging environment.

• Loans momentum continued its growth traction.
• Credit quality amongst the best in the industry with no major stress in any particular portfolio.
• Profit contribution from BOCD continued to be resilient during the quarter.
• Liquidity and capital positions remain solid, well supportive of future growth.
• We remain focus in our strategic priority of digitising the bank in our key segments of retail,

commercial and SME so as to drive business growth and productivity improvements.

HLB Q1FY20 ended 30 September 2019 18

3

HLB Q1FY20 ended 30 September 2019

Group Performance

19

RM’mil (underlying) Q1FY19* Q1FY20 Change (YoY) Q4FY19 Change (QoQ) Net interest income 852 882 3.4% 819 7.7% Non-interest income 324 334 2.8% 349

• 4.5%

Total income 1,177 1,215 3.3% 1,168 4.0% Operating expenses (525) (522)

• 0.6%

(530)

• 1.5%

Operating profit before allowances 652 693 6.3% 638 8.6% Allowances for loans and other impairments (20) 9 >100% (46) >100% Share of profits from associate 147 145

• 1.3%

142 2.3% Profit before tax 779 847 8.7% 733 15.5% Profit after tax 635 689 8.5% 636 8.2%

Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19

HLB Q1FY20 ended 30 September 2019

26.6 30.7 Q1FY19 Q1FY20 RM'bil 23.4 27.3 Q1FY19 Q1FY20 RM'bil 160 153 Q1FY19 Q1FY20 RM'mil

20

Total Net Income Opex & CIR Profit after Tax and Zakat

• Underpinned

by resilient financing income however mitigated by higher financing impairment allowances

• Expenses

remains well-managed with CIR stable at 30.1%

• Consequently, bottom-line was lower at RM70

million

Gross Financing Deposits Capital Adequacy

• Driven

by solid growth momentum in mortgages and SME

• Healthy growth led by both retail and business

deposits

• Total capital position remains robust

54 60 31.3% 30.1% Q1FY19 Q1FY20 RM'mil 81 70 Q1FY19 Q1FY20 RM'mil 15.3% 15.2% Q1FY19 Q1FY20

HLISB - Key financial highlights

5% 14% 16% 15%

HLB Q1FY20 ended 30 September 2019 21 This presentation has been prepared by Hong Leong Bank (“HLB”) for selected recipients for information purposes only and the information contained herein has been obtained from sources believed to be reliable. The information contained herein is believed to be correct as of the date of this presentation and is given in summary form and does not purport to be complete. HLB does not make any guarantee, representation or warranty, whether expressed or implied, as to the adequacy, accuracy or completeness or reliability of any such information, opinion or estimate contained and shall not be responsible or liable for any consequences of any reliance thereon by any recipient. Opinions and estimates constitute the judgment of HLB as of the date of this presentation and are subject to change without notice. HLB does not act as any recipient’s financial advisor or agent and the information contained herein is not intended to be relied upon as advice to any recipient and should not be construed as an offer or recommendation to buy or sell securities. This presentation does not purport to contain all the information that a prospective investor may require and the information contained herein does not take into account the specific investment objectives, financial situation or particular needs of every recipient hence it may not be appropriate for all persons. Each recipient is responsible to make his or her own independent assessment of the information provided herein and should not treat the information provided as advice relating to investment or related matters. Each recipient should consult his or her own advisers and must make his or her own independent decision regarding any investment. Certain statements contained in this presentation may be statements of future expectations and involve known and unknown risks and uncertainties. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. HLB does not have any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Each recipient should not place undue reliance

• n forward-looking statements, which is believed to be correct only as of the date of this presentation.

The information contained in this presentation is strictly confidential and its contents, views or opinions may not be reproduced, redistributed, transmitted or passed on, directly or indirectly, to any other person or published electronically or via print, in whole or in part, for any purpose. The intellectual property in the presentation belong to HLB unless specifically indicated otherwise.

Disclaimer

YOU THANK

For further information, please visit www.hlb.com.my or contact: Investor Relations: Chow Sheng Wai Head, Corporate Finance & Investor Relations DID: +603 2081 2972 Email: IR@hlbb.hongleong.com.my