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• ther retrieval system of any nature and any hardcopies made should be destroyed. The intellectual property in the presentation belongs to HLBB unless specifically indicated otherwise.

HLB H1FY20 ended 31 December 2019 2

1

HLB H1FY20 ended 31 December 2019

162.6 167.0 H1FY19 H1FY20 RM'bil 131.6 141.3 H1FY19 H1FY20 RM'bil 0.80% 0.84% 122% 103% 201% 182% H1FY19 H1FY20 1,265 1,403 H1FY19* H1FY20 RM'mil 1,036 1,049 45.0% 42.8% H1FY19* H1FY20 RM'mil 2,301 2,453 H1FY19* H1FY20 RM'mil

Key Financial Highlights

Strong underlying performance for H1FY20

3

Total Income Opex & CIR Operating Profit

• Strong top-line growth on the back of above

industry loan growth and prudent funding cost management

• Opex remains tightly managed; CIR improved

to 42.8%

• 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 accelerated led by business and

mortgages segments

1%

LIC (including reg reserves)

3% 7%

• Healthy

deposit growth driven by CASA expansion

Note *: Excluding one-off gain on divestment of joint venture of RM90 mil in H1FY19

7% 11%

HLB H1FY20 ended 31 December 2019

Management Guidance

All but one KPI within guidance

4

Non-Interest Income Ratio Gross Loan Growth Gross Impaired Loan Ratio Cost-to-Income Ratio Net Interest Margin Return on Equity Achieved H1FY20 Target FY2020 5%-6% >28% 43%-43.5% <1% 10.5%-11% ~2% 7.3% y-o-y

P

10.8%

P

2.03%

P

26.9%



42.8%

P

0.84%

P

Revised FY2020 6.0% to 6.5% >27% No Change No Change >10.0% No Change

HLB H1FY20 ended 31 December 2019

847 1,093 1,322 1,304 1,390 H1FY16 H1FY17 H1FY18 H1FY19* H1FY20 RM'mil

Profit & Loss

Strong underlying performance supported by top-line growth and prudent cost control

5

RM’mil (underlying) H1FY19* H1FY20 Change YoY* Total income 2,301 2,453 6.6% Operating expenses (1,036) (1,049) 1.3% Operating profit before allowances 1,265 1,403 10.9% Loan allowances & other impairments 39 (12)

• >100%

Share of profits from associates 280 312 11.3% Profit before tax 1,584 1,704 7.5% Profit after tax 1,304 1,390 6.6%

• Top-line performance supported by strong

loan expansion and sustained underlying non-interest income contribution.

• Expenses

remained well-managed while delivering positive JAWS.

• Share of profits from associates remained

robust.

Note *: Excluding one-off gain on divestment of joint venture of RM90 mil in H1FY19

Core Profit After Tax

HLB H1FY20 ended 31 December 2019

Net Interest Income & NIM

Stable NIM with sustained improvements in net interest income

6 3.4% q-o-q 1bps q-o-q 0.5% q-o-q 1.2% q-o-q 1,214 1,220 1,199 1,138 1,132 2,078 2,077 2,017 2,019 2,044

864 857 819 882 912

1.98% 2.00% 1.89% 2.03% 2.04% Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 RM'mil Interest Expense Interest Income Net Interest Income NIM 2,403 2,270 4,119 4,063

1,716 1,793

1.98% 2.03% H1FY19 H1FY20 RM'mil Net Interest Income Interest Income Interest Expense NIM 4.5% y-o-y 5bps y-o-y 5.5% y-o-y 1.4% y-o-y

Jan’20 OPR cut impact on FY2020 NIM is ~2-3 bps

HLB H1FY20 ended 31 December 2019 295 315 166 250 78 33 46 61 25.4% 26.9% H1FY19* H1FY20

Fee Income Trading & Investment Forex Islamic and others Non Interest Income ratio

7

Fee income:

• f which

Credit Card Fees

9.3%

H1FY20 RM111 mil H1FY19 RM122 mil

Wealth Management Income

19.9%

H1FY20 RM66 mil H1FY19 RM55 mil

585 659

Note *: Excluding one-off gain on divestment of joint venture of RM90 mil in H1FY19

Non-Interest Income

Robust contribution supported by wealth management and gains from treasury operations

Credit Card Retail Spend

5.0%

H1FY20 RM5.5 bil H1FY19 RM5.2 bil

HLB H1FY20 ended 31 December 2019

572 578 257 254 83 87 125 130 45.0% 42.8%

H1FY19* H1FY20

Personnel cost 55% Establishment 24% Marketing 8% Admin & general 13%

Operating Expense

Vigilant cost management with improved CIR of 42.8%

8

Composition of Operating Expenses H1FY20

1,036 1,049

Note *: Excluding one-off gain on divestment of joint venture of RM90 mil in H1FY19

HLB H1FY20 ended 31 December 2019 19,261 20,782

H1FY19 H1FY20 SME Retagging Impact

131,628 141,273

6,235 (+6.6%) 2,300 (+7.4%) 1,111 (+16.7%) Total Loans H1FY19 Retail Business & Corporate International Operations Total Loans H1FY20

Loans

Growth momentum continues to gain traction amid prevailing cautious business environment

9

7.3% y-o-y

H1FY19 RM4.9 bil

Residential Properties Transport Vehicle Unsecured (CC+PL) 9.8%

H1FY20 RM70.6 bil H1FY19 RM64.3 bil H1FY20 RM17.4 bil H1FY19 RM17.2 bil H1FY20 RM7.1 bil H1FY19 RM7.0 bil

SME Community SME Banking 10.1%

H1FY20 RM5.5 bil

Singapore

H1FY19 RM5.0 bil H1FY20 RM0.8 bil H1FY19 RM0.5 bil

Vietnam Cambodia

H1FY20 RM1.5 bil H1FY19 RM1.1 bil H1FY20 RM6.7 bil

37.7% 7.9% 43.3% 33.2% 0.7% 2.2% RM’mil

RM’mil

HLB H1FY20 ended 31 December 2019

Asset Quality

Solid asset quality position with GIL ratio maintained at trend low level

10

Loan Impairment Coverage (LIC) Gross Impaired Loans

957 1,203 1,126 1,071 1,180 0.79% 0.96% 0.87% 0.78% 0.84% 1.62% 1.63% 1.60% 1.56% 1.50% FY16 FY17 FY18 FY19 H1FY20 RM'mil

Gross impaired loans GIL Ratio Industry GIL ratio

120% 96% 89% 118% 103% 181% 151% 155% 197% 182% 86% 84% 97% 92% 90% FY16 FY17 FY18 FY19 H1FY20

LIC LIC (incld reg reserve) Industry LIC

HLB H1FY20 ended 31 December 2019 353 331 329

1.72% 1.54% 1.58%

FY18 FY19 H1FY20 134 122 111

0.79% 0.70% 0.64%

FY18 FY19 H1FY20 353 376 402

0.58% 0.56% 0.57%

FY18 FY19 H1FY20 13 7 83

0.19% 0.10% 1.07%

FY18 FY19 H1FY20 1,113 1,064 1,097

0.91% 0.82% 0.82%

FY18 FY19 H1FY20

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

2 isolated cases of ~RM77 mil in SG

HLB H1FY20 ended 31 December 2019

62,745 67,039 64,811

FY18 FY19 H1FY20

88,159 85,518 89,713

FY18 FY19 H1FY20

88,222 91,064 97,575

FY18 FY19 H1FY20

41,202 41,725 43,239

FY18 FY19 H1FY20 148,524 155,233 157,414 163,070 166,998

FY16 FY17 FY18 FY19 H1FY20 RM'mil 5.8% y-o-y

Deposit

Robust growth supported by CASA expansion

12

CASA

26% mix

Fixed Deposits Individuals Business Enterprises

5.4% y-o-y

2.7% y-o-y

4.0% y-o-y

RM’mil RM’mil

7.3% y-o-y

RM’mil RM’mil

54% mix

Market Share: 8%

Market Share: 7% Market Share: 8% Market Share: 11% Market Share: 6%

Note: * Deposit figures are based on group, but market share data is based on domestic only; Business enterprise deposits including FI

HLB H1FY20 ended 31 December 2019

12.7% 12.6% 13.1% 12.8% 13.1% 16.3% 16.4% 16.3% 15.7% 15.9% 13.3% 13.6% 14.1% 13.4% 13.7% Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20

CET1 Tier 1 Total capital ratio

88.7% 90.6% 90.6% 90.0% 90.6% 81.2% 80.6% 82.0% 84.4% 84.6% FY16 FY17 FY18 FY19 H1FY20

Industry LDR HLB LDR

Capital Adequacy^ Loan Deposit Ratio (LDR)

Liquidity & Capital

Prudent 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

H1FY20 Liquidity Coverage Ratio (LCR) 123% Loan to Funds Ratio (LTF) 86% Loan to Funds & Equity Ratio (LTFE) 75%

HLB H1FY20 ended 31 December 2019 12.0 12.2 12.4 12.7 12.7 33 31 31 34 34 Q2FY19* Q3FY19 Q4FY19 Q1FY20 Q2FY20 NAV/share EPS 10.7% 10.8% 10.8% 10.8% 1.33% 1.34% 1.26% 1.32% Q1FY20 Q2FY20 H1FY19* H1FY20 ROE ROA

Shareholder Value

Sustainable returns from solid underlying performance

14

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

Note *: Excluding one-off gain on divestment of joint venture of RM18 mil in Q2FY19 and RM90 mil in H1FY19

HLB H1FY20 ended 31 December 2019

Performance of Associated Company:

Bank of Chengdu Co., Ltd.

15

Financial Highlights for FY2019 (unaudited)

Total Assets Operating Income Profit After Tax GIL ratio Market position in Chengdu* Industry Benchmarking#

16.6%

ROE

BOCD Industry Industry

GIL ratio

1.43% 1.86%

BOCD No of branches /

• utlets

Loan Deposits

Dec-19 >190 6th 4th

Notes: * Benchmarked to latest available industry data

12.3%

11,590 12,731 FY2018 FY2019

RMB'mil

4,649 5,551 FY2018 FY2019

RMB'mil

19% 492,285 558,075 FY2018 FY2019

RMB'mil

13% 1.54% 1.43% FY2018 FY2019 11bps 10%

P P

HLB H1FY20 ended 31 December 2019 16

2

HLB H1FY20 ended 31 December 2019 17

• Solid top-line growth momentum; impact from OPR cut to NIM is manageable.
• Step up reviews of exposures to sectors that will see business impact from the ongoing Covid-19 virus.

Proactively work with clients to provide appropriate support where need arises.

• Step up review of business model to ensure that it remains fit-for-purpose given the current and near-future
• perating environment.
• Closer review of all expenses to ensure spend remains relevant and appropriate. Under normal operating

environment (H1FY20) delivered positive JAWS for the 2 consecutive quarters with an improved CIR of 42.8%; continued emphasis on strategic cost management delivering results.

• Focus is to maintain assets quality through cycle; key portfolio segments remain healthy with no worrying

signs emerging thus now.

• Too early to conclude impact on BOCD contribution for the rest of the financial year. H1FY20 performance

was solid. We are working with them closely to ensure proactive measure are taken where necessary to manage credit exposures.

Summary

Solid set of numbers for first half FY20

HLB H1FY20 ended 31 December 2019

cv cv

43% 41% 2% 14%

H1FY20

Internet Mobile Branch SST Compared to 4 years cv cv

18

RETAIL SHIFT: TRADITIONAL >>> DIGITAL

7% 29% 15% 37%

Number of Transactions Mix % Transactions via Digital Channels

H1FY20

84%

H1FY15

40%

4-Year Journey

Digital transformation continues apace

Providing support to continued transformation of cost structure

HLB H1FY20 ended 31 December 2019 19

3

HLB H1FY20 ended 31 December 2019

Group Performance

20

RM’mil (underlying) H1FY19* H1FY20 Change (YoY)* Q2FY20 Change (YoY)* Change (QoQ) Net interest income 1,716 1,793 4.5% 912 5.5% 3.4% Non-interest income 585 659 12.8% 326 25.2%

• 2.3%

Total income 2,301 2,453 6.6% 1,238 10.1% 1.8% Operating expenses (1,036) (1,049) 1.3% 527 3.2% 0.9% Operating profit before allowances 1,265 1,403 10.9% 711 15.8% 2.6% Allowances for loans and other impairments 39 (12)

• >100%

(21)

• >100%
• >100%

Share of profits from associate 280 312 11.3% 167 25.3% 15.5% Profit before tax 1,584 1,704 7.5% 857 6.4% 1.2% Profit after tax 1,304 1,390 6.6% 702 4.8% 1.9%

Note *: Excluding one-off gain on divestment of joint venture of RM18 mil in Q2FY19 and RM90 mil in H1FY19

HLB H1FY20 ended 31 December 2019

15.8% 15.6% H1FY19 H1FY20 27.8 31.2 H1FY19 H1FY20 RM'bil 24.0 28.2 H1FY19 H1FY20 RM'bil 170 173 H1FY19 H1FY20 RM'mil 106 118 30.8% 29.1% H1FY19 H1FY20 RM'mil 330 346 H1FY19 H1FY20 RM'mil

21

Total Net Income Opex & CIR Profit after Tax and Zakat

• Driven by strong financing income however
• ffset

by higher financing impairment allowances

• Expenses

tightly managed resulting in improved CIR

• Consequently, bottom-line was higher on the

back of solid business performance

Gross Financing Deposits Capital Adequacy

• Growth

momentum accelerated buoyed by mortgages and SME

• Robust growth in both retail and business

deposits

• Total capital position remains healthy

HLISB - Key financial highlights

5% 2% 18% 12%

HLB H1FY20 ended 31 December 2019 22 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